1995
Semiannual Report
JANUS INCOME FUNDS
[LOGO]
Janus Flexible Income Fund
Janus Federal Tax-Exempt Fund
Janus Intermediate Government Securities Fund
Janus Short-Term Bond Fund
Janus Money Market Fund
Janus Government Money Market Fund
Janus Tax-Exempt Money Market Fund
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TABLE OF CONTENTS
Our Message to You ......................................................... 1
Portfolio Manager's Commentary and Schedule of Investments
Janus Flexible Income Fund ................................................ 5
Janus Federal Tax-Exempt Fund ............................................. 8
Janus Intermediate Government Securities Fund ............................. 10
Janus Short-Term Bond Fund ................................................ 11
Janus Money Market Fund ................................................... 13
Janus Government Money Market Fund ........................................ 16
Janus Tax-Exempt Money Market Fund ........................................ 17
Notes to Schedule of Investments .......................................... 18
Statements of Operations - Bond Funds ..................................... 19
Statements of Assets and Liabilities - Bond Funds ......................... 20
Statements of Changes in Net Assets - Bond Funds .......................... 21
Financial Highlights - Bond Funds ........................................ 22
Statements of Operations - Money Market Funds ........................... 24
Statements of Assets and Liabilities - Money Market Funds ................. 24
Statements of Changes in Net Assets - Money Market Funds ................. 25
Financial Highlights - Money Market Funds ................................ 26
Notes to Financial Statements ............................................. 27
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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.
BOND PRICES ROSE
Fixed-Income Markets Were Strong. Fixed-income prices reversed course
during the six months ended April 30. Bonds had put in one of the worst
performances on record in 1994, but in late November the economy began to slow,
inflation remained low, and intermediate and long-term interest rates (5-30
years) peaked. The bond market began to rally, even though the Federal Reserve
Board continued to push short-term rates higher into early February. Total
return on the benchmark 30-year U.S. Treasury Bond was 11.21% for the six
months, and the yield dropped from 7.97% to 7.34%. The chart below provides a
clear summary of the decline in yields in the various market segments.
YIELDS HAVE DECLINED IN ALL SEGMENTS OF THE BOND MARKET
Bond Yields
[line graph]
A graphic comparison of the yields on AA-rated Utilities, Long-term Treasuries
and Municipals over the six months ended April 30, 1995. AA-rated Utilities are
represented by a solid blue line, Long-term Treasuries are represented by a
solid black line and Municipals are represented by a solid gray line. The "y"
axis represents the yield range (5.5% through 9.0%). The "x" axis represents the
reporting period. The right margin reflects the yield for each bond type at the
end of the reporting period as follows: AA-rated Utilities 7.85; Long-term
Treasuries 7.16; and Municipals 6.12.
Source: Merrill Lynch Securities Research
From "The Wall Street Journal," May 8, 1995.
ECONOMIC TRENDS
The Divergence Between Stocks and Bonds Was Resolved. During much of 1994
bonds remained in one of the steepest declines on record. The graph below
illustrates the gradual decline in interest rates in the early 1990s, and then
the sharp spike upward (bond prices fall when yields rise) in 1994 that caused
the poor performance.
INTEREST RATE VOLATILITY
DECEMBER, 1990 - APRIL, 1995
[line graph]
A graphic representation of the yield on a 30-year long bond from December 1990
through April 1995. The 30-year long bond is represented by a solid blue line.
The "y" axis represents the yield range (5.5% through 9.0%). The "x" axis
represents the computation period.
From the Financial Times, Weekend April 29/30, 1995. Source: Datastream.
While bonds fell in 1994, stocks managed to hold their own, supported by
exceptionally strong corporate earnings. This created a troubling divergence
between the two markets. If the economy had not begun to slow, stocks could have
joined bonds in a continued downward slide.
The Economy Slowed From Its Fast Pace in 1994. In 1994 the economy was on
the fast track. The pace it was setting - Gross Domestic Product (GDP) was
topping 4% - deeply concerned the Federal Reserve Board. 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). A mature
economy like our own normally cannot sustain growth of more than 2%-3% for very
long without higher inflation. Inflation erodes the buying power of both
corporations and individuals, who are forced to pay more for products and
services.
Fortunately the economy gave a few early signs of deceleration, and the
markets perceived that higher rates were finally beginning to bite. Consumers,
who had spent heavily in 1994, reduced their purchases of homes, autos, and
other durable goods. They were now spending less because rising interest rates
had increased the cost of borrowing. Mortgage rates, for example, had topped 9%.
Automobile manufacturers also cut production levels in response to lower demand.
Employment growth slowed. After a sizzling 5.1% growth rate in the fourth
quarter of 1994, GDP slowed to a more sustainable 2.8% in the first quarter of
1995.
The Market Had Its Share of Mishaps. Another set of events had a sobering
effect on the fixed-income markets. The default of Orange County, California,
the devaluation of the Mexican peso, and the demise of Baring Securities, where
a trader in Singapore was able to hide massive losses, were all sobering
experiences for bond investors. The net effect was that investors sought safety
in U.S. Treasury and corporate issues, and the increased demand contributed to
the performance of those markets. In an ironic twist, these unfortunate events
may have also helped slow the overheated economy and move long-term bond yields
back below 8%.
Janus Funds April 30, 1995 Semiannual Report
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OUR MESSAGE TO YOU
Inflation Remained Benign. A significant difference between this and
previous recoveries was the absence of inflation at the consumer level. The cost
of raw materials was 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 were now leaner, flexible, and more
productive, often through the increased utilization of new and powerful
technology. International competition 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,"
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 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 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, also declined, which kept their
goods relatively inexpensive in the U.S.
The U.S. bond market understood this, and so it rallied in spite of the
dollar's weakness.
FIXED-INCOME MARKETS
Municipals Did Well. Municipal bonds were in short supply once the rally
got underway, so that segment turned in a good performance. During 1994 when
rates were rising, very few municipals came to market because issuers did not
want to pay higher yields. So when demand picked up in December, there were
fewer bonds available.
Corporate Bonds. Declining interest rates and terrific corporate profits
helped create a very strong corporate market, both in investment grade bonds
(those rated BBB or better by Standard & Poor's), and in the
high-yield/high-risk (junk) market. With rates declining and credit quality
improving, the high yields on many of these bonds were in demand.
International Markets Underperformed the U.S. International bond markets
were difficult to analyze. The weak U.S. dollar and the devaluation of the
Mexican peso made Latin American markets very volatile. Typically, we do not
hold many foreign bonds in our portfolios, and we chose to stay on the sidelines
during most of the period.
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
several 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
fixed-income markets as the year began.
We appreciate your investment with Janus.
/s/ Thomas H. Bailey
Thomas H. Bailey
Chairman
Janus Funds April 30, 1995 Semiannual Report
2
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EXPLANATORY NOTES
Performance Information
Performance Overview Graphs on the following pages 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 graph 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 in 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
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JANUS FLEXIBLE INCOME FUND Portfolio Manager, Ronald V. Speaker
JANUS FLEXIBLE INCOME FUND PERFORMANCE
The Janus Flexible Income Fund underperformed the Lehman
Government/Corporate Index for the six months ended April 30, 1995. The Fund had
a total return of 5.09%, versus 6.96% for the Lehman Index.
Our underperformance was primarily due to our defensive posture after the
very difficult market of 1994. At calendar year end cash was 20% of assets. Our
exposure to Latin American debt (3%) also hurt returns.
In 1995 the Janus Flexible Income Fund narrowed the performance margin
between it and the Lehman Government/Corporate Index.
FUND STRATEGY
We pursued two different strategies during the six-month period. At year
end the economy was growing rapidly and interest rates were rising. The risk of
a further decline in bond prices was still great. So from October to December we
utilized shorter maturities that averaged approximately 8 years and kept 20% of
assets in cash.
In late January, when the economy showed signs of slowing and interest
rates were declining, we reduced cash to zero and became fully invested in the
bond market. The average weighted maturity of the portfolio was extended to more
than 13 years. This strategy is still in place.
The current portfolio is positioned to benefit from any further decline in
interest rates. It is well diversified among government and corporate
securities. Corporate holdings are also diversified by industry. If interest
rates continue to fall or remain at current levels, the Fund's corporate bond
positions should be the beneficiary of investors' search for yield.
PERFORMERS AND NONPERFORMERS
Bonds that performed well during the period included the credits of Borden,
Inc., the food products company, where a major restructuring is helping
profitability, and several major airlines - American, Delta, and United - where
fundamentals are improving, in part due to cost-cutting measures (e.g., travel
agents' commissions). Our Latin American bonds - United Mexican States and
Mexican Corporates - underperformed and were sold at a loss following the peso
devaluation.
MAJOR POSITIONS
Our current major positions reflect our bias for quality, long-term
investment grade paper and our positive outlook on the direction of interest
rates. Larger holdings include U.S. Treasury issues, IBM, Delta Airlines, Ford
Motor Credit, Bankamerica, and RJR Nabisco. Less well-known names are Tenet
Healthcare (formerly National Medical Enterprises), an acute care provider, and
Stone Container, a paper packaging manufacturer, which is cleaning up its
balance sheet and eliminating or restructuring debt. Several of these
securities, such as the airlines, are classified as high-yield/high-risk (junk)
debt but are currently trading based more on changes in interest rates than on
their credit quality.
PORTFOLIO ASSET MIX
Our current asset mix is as follows:
High-Yield/High-Risk Bonds 40%
Investment Grade Corporate Bonds 39%
U.S. Government Bonds 19%
Preferred Stock 2%
At present our emphasis is more on issues sensitive to interest rates.
Interest-sensitive bonds equal 66% of the portfolio. This includes our
investment grade corporates, U.S. Governments, and approximately 8% of our
high-yield/high-risk holdings.
As of April 30, the portfolio's average weighted maturity was 13.7 years,
the average rating was BBB, and duration (a theoretical measure of price
volatility) stood at 6.3 years. The 30-day average yield was 8.40%. We will keep
a careful eye on foreign markets for future opportunities, even though we
learned some painful, if valuable, lessons overseas last year.
After the difficult market of 1994, we are optimistic about 1995,
especially if economic growth continues to slow and inflation remains low.
5-Star Rating. The Fund recently received a 5-Star rating from Morningstar,
the mutual fund rating company. We are very pleased with both the Fund's new
rating and its long-term performance.
Thank you for your continued investment in Janus Flexible Income Fund.
- - --------------------------------------------------------------------------------
Morningstar's proprietary rating is based on a "fund's historical risk/reward
ratio relative to other funds in its class." For the one-year period ended
4/30/95 in the income fund category, 93 funds were rated. 3% of the funds in the
income category received 5 stars. A waiver was in effect at the time of this
rating, and may have had a material effect on the fund's performance for the
period. Past performance is not predictive of future results.
Janus Funds April 30, 1995 Semiannual Report
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JANUS FLEXIBLE INCOME FUND Portfolio Manager, Ronald V. Speaker
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Flexible Income Fund and the Lehman Brothers Intermediate Government
Bond Index. Janus Flexible Income Fund is represented by a solid blue line. The
Lehman Brothers Intermediate Government Bond 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, July 2, 1987, through April 30,
1995. The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Flexible Income Fund ($19,140) as compared to the Lehman
Brothers Intermediate Government Bond Index ($19,398). There is a legend in the
upper left quadrant of the graph which indicates Janus Flexible Income Fund's
one-year, three-year, five-year and since inception (July 2, 1987) average
annual total returns as 6.12%, 8.86%, 12.02%, and 8.62%, 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 FLEXIBLE INCOME FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Corporate Bonds - 78.7%
Aerospace and Defense - 1.5%
$ 6,500,000 Alliant Techsystems, Inc., 11.75%
senior subordinated notes, due 3/1/03+ $ 6,760,000
Apparel Manufacturers - 0.8%
4,000,000 Guess, Inc., 9.50%
senior subordinated notes, due 8/15/03 3,870,000
Auto Related - 3.3%
Ford Motor Credit Co.:
5,000,000 8.00% notes, due 6/15/02 5,125,000
10,000,000 7.75% notes, due 3/15/05 10,012,500
15,137,500
Banking - 5.2%
935,000 Anchor Bancorp, Inc., 8.9375%
senior notes, due 7/9/03 897,600
11,000,000 BankAmerica Corp., 7.625%
subordinated notes, due 6/15/04 10,917,500
5,000,000 Bank of Boston Co., 6.625%
subordinated notes, due 12/1/05 4,543,750
2,500,000 Chemical Banking Corp., 7.875%
subordinated debentures, due 7/15/06 2,512,500
5,000,000 First National Bank of Boston, 8.00%
subordinated notes, due 9/15/04 5,043,750
23,915,100
Broadcast Media - 1.8%
2,000,000 Heartland Wireless Communications, Inc.,
13.00% senior notes, due 4/15/03+ 1,972,500
3,700,000 Marcus Cable Co. L.P., 11.875%
debentures, due 10/1/05 3,552,000
3,000,000 Rogers Cablesystems of America, 10.00%
senior secured second priority notes,
due 3/15/05 3,052,500
8,577,000
Shares or
Principal Amount Market Value
- - ---------------- ------------
Commercial Services - 0.5%
$ 2,000,000 Primeco, Inc., 12.75%
senior subordinated notes, due 3/1/05 $ 2,065,000
Communications - 3.8%
News America Holdings, Inc.:
5,000,000 8.625% notes, due 2/1/03 5,187,500
10,000,000 7.75% notes, due 2/1/24 8,937,500
3,500,000 Telex Communications, Inc., 12.00%
senior notes, due 7/15/04 3,565,625
17,690,625
Computer Related - 3.7%
1,000,000 Digital Equipment Corp., 7.75%
global notes, due 4/1/23 848,750
17,000,000 International Business Machines Corp., 7.50%
debentures, due 6/15/13 16,192,500
17,041,250
Consumer Goods - 0.5%
2,500,000 Revlon Consumer Products Corp., 10.50%
subordinated notes, Series B, due 2/15/03 2,381,250
Electrical Equipment - 2.5%
1,000,000 UCAR Global Enterprises, Inc., 12.00%
senior subordinated notes, due 1/15/05+ 1,077,500
Westinghouse Electric Co.:
3,000,000 8.375% senior notes, due 6/15/02 3,018,750
7,500,000 8.625% debentures, due 8/1/12 7,359,375
11,455,625
Energy - 8.0%
6,250,000 Kenetech Corp., 12.75%
senior secured notes, due 12/15/02 6,554,688
7,000,000 Kerr-McGee Corp., 7.00%
debentures, due 11/1/11 6,335,000
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
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JANUS FLEXIBLE INCOME FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Energy (continued)
$ 8,000,000 Panhandle Eastern Corp., 8.625%
debentures, due 4/15/25 $ 8,010,000
8,500,000 Texaco Capital, Inc., 7.50%
debentures, due 3/1/43 7,862,500
7,670,000 Texas Eastern Transmission Corp., 10.00%
sinking fund debentures, due 10/1/11 8,130,200
36,892,388
Environmental Services - 0.5%
2,400,000 Envirosource, Inc., 9.75%
senior notes, due 6/15/03 2,130,000
Financial Services - 1.8%
2,000,000 Americo Life, Inc., 9.25%
senior subordinated notes, due 6/1/05 1,770,000
2,500,000 Nationwide CSN Trust, 9.875%
notes, due 2/15/25 2,650,000
4,500,000 Transamerica Financial Corp., 6.50%
debentures, due 3/15/11 3,853,125
8,273,125
Food Products - 3.1%
Borden, Inc.:
3,000,000 9.20% debentures, due 3/15/21 3,052,500
6,500,000 7.875% debentures, due 2/15/23 5,736,250
6,150,000 Pilgrim's Pride Corp., 10.875%
senior subordinated notes, due 8/1/03 5,704,125
14,492,875
Food Retail - 4.3%
8,000,000 Dominick's Finer Foods, Inc., 10.875%
senior subordinated notes, due 5/1/05+ 8,040,000
5,000,000 Pathmark Stores, Inc., 9.625%
senior subordinated notes, due 5/1/03 4,800,000
6,500,000 Super Rite Foods, Inc., 10.625%
senior subordinated notes, due 4/1/02 6,760,000
19,600,000
Healthcare - 3.6%
National Medical Enterprises:
3,000,000 9.625% senior notes, due 9/1/02 3,097,500
13,000,000 10.125% senior subordinated notes,
due 3/1/05 13,552,500
16,650,000
Home Building - 0.7%
4,000,000 M.D.C. Holdings, Inc., 11.125%
senior notes, due 12/15/03 3,380,000
Industrials - 1.5%
2,000,000 Borden Chemicals & Plastics, L.P., 9.50%
notes, due 5/1/05 2,010,000
5,000,000 Gulf States Steel Aquisition Corp., 13.50%
first mortgage notes, due 4/15/03+ 5,131,250
7,141,250
Insurance - 9.0%
11,000,000 Delphi Financial Group, Inc. 8.00%
senior notes, due 10/1/03 9,858,750
10,000,000 Leucadia National Corp., 10.375%
senior subordinated notes, due 6/15/02 10,712,500
8,550,000 Life Partners Group, Inc., 12.75%
senior subordinated notes, due 7/15/02 9,458,438
8,338,000 Orion Capital Corp., Inc., 9.125%
senior notes, due 9/1/02 8,681,940
3,000,000 Western National Corp., 7.125%
senior notes, due 2/15/04 2,790,000
41,501,628
Shares or
Principal Amount Market Value
- - ---------------- ------------
Manufacturing - 2.3%
Great Dane Holdings, Inc.:
$ 3,744,000 12.75% senior subordinated debentures,
due 8/1/01 $ 3,729,960
6,946,000 14.50% subordinated debentures, due 1/1/06 6,919,953
10,649,913
Packaging and Containers - 2.7%
12,000,000 Stone Container Corp., 11.00%
senior subordinated notes, due 8/15/99 12,375,000
Paper Products - 1.9%
5,000,000 Repap New Brunswick, Inc., 10.625%
senior notes, due 4/15/05 5,081,250
4,000,000 Repap Wisconsin, Inc., 9.875%
senior notes, due 5/1/06 3,845,000
8,926,250
Printing and Publishing - 0.2%
750,000 Williamhouse Regency, Inc., 11.50%
senior subordinated debentures, due 6/15/05 735,000
Railroads - 0.8%
3,750,000 Southern Pacific Rail Corp., 9.375%
senior notes, due 8/15/05 3,778,125
Retail - 1.5%
5,000,000 Cole National Corp., 11.25%
senior notes, due 10/1/01 4,787,500
2,337,000 Pier 1 Imports, Inc., 11.50%
subordinated debentures, due 7/15/03 2,377,898
7,165,398
Telecommunications - 4.1%
7,000,000 AT&T Corp., 8.35% debentures, due 1/15/25 7,105,000
11,700,000 In-Flight Phone Corp., 14.00%
senior discount notes, due 5/15/02+ 7,778,628
4,000,000 Mobile Telecommunication Technologies, Inc.,
13.50% senior notes, due 12/15/02 4,290,000
19,173,628
Tobacco - 3.2%
RJR Nabisco, Inc.:
7,000,000 8.625% medium term notes, due 12/1/02 6,982,500
8,000,000 8.75% notes, due 8/15/05 7,940,000
14,922,500
Transportation - 5.5%
10,000,000 AMR Corp., 9.00% debentures, due 8/1/12 9,837,500
15,000,000 Delta Air Lines, Inc., 9.75%
debenture notes, due 5/15/21 15,431,250
25,268,750
Utilities-Electric - 0.4%
2,000,000 Southeastern Public Service Co., 11.875%
senior subordinated debentures, due 2/1/98 2,002,500
Total Corporate Bonds (cost $359,412,961) 363,951,680
Convertible Bonds - 0.1%
700,000 International CableTel, Inc., 7.25%
convertible subordinated notes, due 4/15/05 689,500
(cost $700,000)
Warrants - 0%
12,000 Heartland Wireless Communications, Inc. -
exp. 4/15/00*,+ 84,000
1,131 Wright Medical Technology, Inc. -
exp. 6/30/03*,+ 169,657
Total Warrants (cost $139,179) 253,657
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
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JANUS FLEXIBLE INCOME FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Preferred Stock - 1.7%
Banking - 1.7%
250,000 Chevy Chase Savings, 13.00%, Non-Cumulative $ 7,062,500
30,000 Glendale Federal Bank, 8.75%,
Convertible Series E 1,020,000
8,082,500
Transportation - 0%
4,000 Delta Air Lines, 3.50%, Series C 218,000
Total Preferred Stock (cost $8,732,725) 8,300,500
Shares or
Principal Amount Market Value
- - ---------------- ------------
U.S. Government Obligations - 18.4%
U.S. Treasury Notes and Bonds:
$ 37,000,000 7.875%, 11/15/04 $ 39,042,030
25,000,000 7.50%, 2/15/05 25,766,250
20,000,000 7.625%, 2/15/25 20,694,800
Total U.S. Government Obligations (cost $84,225,791) 85,503,080
Short-Term Corporate Note - 1.1%
5,300,000 General Electric Capital Corp.
5.85%, 5/1/95
(amortized cost $5,300,000) 5,300,000
Total Investments - 100% (total cost $458,510,656) 463,998,417
Liabilities, net of Cash, Receivables
and Other Assets - 0% (148,419)
Net Assets - 100% $463,849,998
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
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JANUS FEDERAL TAX-EXEMPT FUND Portfolio Manager, Ronald V. Speaker
PERFORMANCE
The municipal market rallied during the last six months, as did all the
broad financial markets. Moderation in the rate of economic growth and low
inflation resulted in a decline in interest rates and higher bond prices.
Janus Federal Tax-Exempt Fund achieved a total return of 6.17% with
reinvested dividends, during the six months ended April 30, 1995. This compares
to 7.57% for the Lehman Brothers Municipal Bond Index during the same period.
The underperformance occurred due to our more conservative stance after the
very difficult market in 1994. We held bonds with higher coupons, shorter
maturities, and less interest rate sensitivity than the Lehman Index. Our cash
positions also ranged from 5% to 10%.
During the first few months of 1995, however, as the economy showed signs
of slowing, we extended the Fund's average weighted maturity from 12 years to 16
years and became 100% invested, thus providing more exposure to the market.
Since that time performance has been in line with the general municipal market.
THE PORTFOLIO
The Fund maintains a large position - 70% of the portfolio - in
high-quality essential service bonds. General obligation bonds are 30% of
assets. As of April 30, 1995, 50% of the bonds held were rated AAA. The Fund's
average rating is AA2.
The portfolio's average weighted maturity is 16.38 years. Duration (a
theoretical measure of price volatility) is 9.1 years.
The Fund's average 30-day yield is 5.58%, which is the taxable equivalent
of 8.08% for investors in the 31% federal tax bracket.
STRATEGY AND OUTLOOK
We are comfortable with our current position. The worst of the 1994 bond
market decline seems to be behind us. The gains achieved in the first quarter of
1995 came quickly and the Fund's performance in the latter part of 1995 will
very likely result more from its income stream rather than from further capital
gains.
A flat tax proposal has been discussed in the U.S. Congress and this has
put pressure on municipal bond prices relative to U.S. Treasury securities. We
do not believe a flat tax will pass this year, or anytime soon for that matter,
so the performance breather that municipal bonds have had versus Treasuries was
probably healthy and should lead to continued solid performance for the
remainder of 1995.
Thank you for your continued investment in Janus Federal Tax-Exempt Fund.
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of change in value of a hypothetical $10,000 investment in
Janus Federal Tax-Exempt Fund and the Lehman Brothers Municipal Bond Index.
Janus Federal Tax-Exempt Fund is represented by a solid blue line. The Lehman
Brothers Municipal Bond 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
Federal Tax-Exempt Fund ($10,539) as compared to the Lehman Brothers Municipal
Bond Index ($10,956). There is a legend in the bottom left quadrant of the graph
which indicates Janus Federal Tax-Exempt Fund's one-year and since inception
(May 3, 1993) average annual total returns for the period ended April 30, 1995
as 4.25% and 2.67%, 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 Funds April 30, 1995 Semiannual Report
8
<PAGE>
JANUS FEDERAL TAX-EXEMPT FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
Municipal Securities - 106.0%
California - 3.0%
$ 1,000,000 Los Angeles Department of Water
and Power Electric Plant Revenue,
(MBIA Insured), 5.375%, 9/1/23 $ 885,000
Colorado - 5.3%
750,000 Mountain Village Metropolitan District,
(San Miguel County), 8.10%, 12/1/11 775,313
275,000 North Jeffco Parks and Recreation District,
(Colorado Golf Course Revenue),
6.75%, 12/1/09 281,531
500,000 Regional Transportation District,
(Colorado Sales Tax Revenue),
(FGIC Insured), 6.25%, 11/1/12 511,875
1,568,719
District of Columbia - 3.3%
1,100,000 Metropolitan Washington D.C., Airports
Authority, General Airport Revenue,
(MBIA Insured), Series A, 5.25%, 10/1/22 966,625
Florida - 7.5%
1,000,000 Florida State Board of Education Capital
Outlay Public Education, Series D,
5.25%, 6/1/23 875,000
1,500,000 Jacksonville Electric Authority Revenue,
(Bulk Power - Scherer 4 Project), Series A,
5.25%, 10/1/21 1,333,125
2,208,125
Illinois - 1.7%
500,000 Chicago Metropolitan Water
Reclamation District, 6.25%, 12/1/14 508,750
Missouri - 3.4%
1,000,000 Kansas City Industrial Development Authority
Hospital Revenue, (Research Health Services
System), 5.10%, Variable Rate, 4/15/15 1,000,000
Montana - 11.7%
1,000,000 Forsyth Pollution Control Revenue (Montana
Power Co.), Series B, 5.90%, 12/1/23 960,000
1,000,000 Montana State Board of Investment Workers
Compensation Program, (MBIA Insured),
6.875%, 6/1/20 1,063,750
1,000,000 Montana State Health Facility Authority
Healthcare Revenue, (Montana Development
Center Project), 6.40%, 6/1/19 996,250
500,000 Montana State University Revenue,
(Higher Education), (MBIA
Insured), Series A, 5.05%, 11/15/16 446,875
3,466,875
New Jersey - 7.0%
1,000,000 New Jersey State Turnpike Authority Turnpike
Revenue, Series C, 6.50%, 1/1/16 1,050,000
1,000,000 North Brunswick Township Board of Education,
6.30%, 2/1/14 1,020,000
2,070,000
New Mexico - 13.5%
1,000,000 Albuquerque Airport Revenue, 7.60%, 7/1/08 1,065,000
500,000 Albuquerque Refuse Removal and Disposal
Revenue, (AMBAC Insured), 7.25%, 7/1/09 540,625
395,000 Chaves County Hospital Revenue, (Eastern
New Mexico Medical Center Project),
7.25%, 12/1/10 396,481
1,000,000 Gallup New Mexico Pollution Control Revenue,
(Plains Electric Generation Project),
6.65%, 8/15/17 1,036,250
Principal Amount Market Value
- - ---------------- ------------
New Mexico (continued)
$ 500,000 New Mexico Military Instruction, (Roswell
Systems Revenue), 6.00%, 6/1/12 $ 500,625
450,000 University of New Mexico University Revenue,
Series A, 6.00%, 6/1/21 440,438
3,979,419
North Dakota - 1.8%
500,000 Bismarck Hospital Revenue, (Medcenter One),
7.375%, 5/1/06 544,375
Ohio - 2.9%
1,000,000 Hamilton County Gas System Revenue,
(MBIA Insured), Series A, 5.00%, 10/15/18 863,750
Oklahoma - 1.7%
500,000 McGee Creek Authority Water Revenue,
(MBIA Insured), 6.00%, 1/1/23 496,875
South Carolina - 4.3%
1,500,000 South Carolina State Public Service Authority
Revenue, (FGIC Insured), Series C,
5.00%, 1/1/25 1,267,500
Tennessee - 8.7%
1,100,000 Memphis-Shelby County Tennesee Airport
Authority Facilities Project Revenue,
(Federal Express Corp.), 6.75% 9/1/12 1,102,750
1,000,000 Metropolitan Government Nashville and
Davidson County Tennessee, 5.625%, 5/15/21 935,000
500,000 Metropolitan Nashville Airport Authority
Revenue, (FGIC Insured), Series C,
6.625%, 7/1/07 530,000
2,567,750
Texas - 15.0%
1,000,000 Harris County, 6.50%, 8/15/15 1,036,250
1,000,000 Lewisville Independent School District,
(PSFG Insured), 5.50%, 8/15/16 936,250
1,000,000 Spring Texas Independent School District,
(PSFG Insured) Series B, 5.60%, 8/15/15 938,750
500,000 United Independent School District,
(PSFG Insured), 5.25%, 8/15/12 460,625
1,000,000 University of Texas Financing System Revenue,
Series B, 6.75%, 8/15/13 1,046,250
4,418,125
Utah - 6.7%
900,000 Intermountain Power Agency Power Supply
Revenue, Series D, 8.625%, 7/1/21 986,625
1,000,000 Salt Lake City Airport Revenue, (FGIC Insured),
Series B, 5.875%, 12/1/12 981,250
1,967,875
Virginia - 3.3%
1,000,000 Fairfax County Virginia Water Authority Water
Revenue, (AMBAC Insured), 6.00%, 4/1/22 971,250
Washington - 1.8%
500,000 Seatac Local Option Transportation Tax
Revenue, (MBIA Insured), 6.50%, 12/1/13 516,250
Wyoming - 3.4%
1,000,000 Cheyenne, 6.20%, 12/1/11 1,005,000
Total Municipal Securities - 106.0% (cost $31,451,453) 31,272,263
Liabilities, net of Cash, Receivables and Other Assets - (6.0%) (1,778,906)
Net Assets - 100% $29,493,357
- - --------------------------------------------------------------------------------
AMBAC - American Bond Assurance Corp.
CGIC - Capital Guaranty Insurance Corp.
FGIC - Financial Guaranty Insurance Corp.
MBIA - Municipal Bond Insurance Association
PSFG - Permanent School Fund Guaranty
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
9
<PAGE>
JANUS INTERMEDIATE GOVERNMENT SECURITIES FUND
Portfolio Manager, Ronald V. Speaker
PERFORMANCE
During the last six months the intermediate segment of the government
securities market rallied in tandem with the broad financial markets. Prices
were pushed higher by declining interest rates, which began to fall after the
U.S. economy showed signs of slowing and inflation remained low.
The Janus Intermediate Government Securities Fund achieved a total return
of 3.97% during the six-month period ending April 30, 1995. This compares to
5.24% for the Lehman Brothers Intermediate Government Bond Index. Both of these
returns include dividends reinvested.
The Fund underperformed the Lehman Index due to our conservative stance
after the very difficult bond market of 1994. For much of the period, the Fund
had a shorter average weighted maturity than the Lehman Index. Shorter
maturities are less volatile, and more defensive, than longer bonds. In late
March, with more economic information available, we extended portfolio
maturities and moved 40% of assets into 5-year Treasuries. Since then the Fund
has performed in line with the Lehman Index.
THE PORTFOLIO
The Intermediate Government Securities Fund has 100% of its assets invested
in U.S. Government Notes backed by the full faith and credit of the U.S.
Government. The Fund's average rating is AAA.
The average 30-day yield is 6.66%, and the average weighted maturity is 3.6
years. Duration (a theoretical measure of price volatility) is 3.1 years.
CURRENT STRATEGY
We extended the Fund's maturities because the economy appears to be slowing
from the torrid growth of 1994. The Fund is now positioned to produce
competitive returns should intermediate rates continue to decline or remain
stable.
We appreciate your continued investment in Janus Intermediate Government
Securities Fund.
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Intermediate Government Securities Fund and the Lehman Brothers
Intermediate Government Bond Index. Janus Intermediate Government Securities
Fund is represented by a solid blue line. The Lehman Brothers Intermediate
Government Bond 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, July 26, 1991, through April 30, 1995. The upper right
quadrant reflects the ending value of the hypothetical investment in Janus
Intermediate Government Securities Fund ($12,008) as compared to the Lehman
Brothers Intermediate Government Bond Index ($13,915). There is a legend in the
bottom center of the graph which indicates Janus Intermediate Government
Securities Fund's one-year, three-year and since inception (July 26, 1991)
average annual total returns for the period ended April 30, 1995 as 4.89%, 3.49%
and 5.00%, 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 INTERMEDIATE GOVERNMENT SECURITIES FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
U.S. Government Obligations - 98.9%
U.S. Treasury Notes:
$ 6,905,000 7.375%, 11/15/97 $ 7,011,751
13,500,000 7.875%, 4/15/98 13,907,295
14,000,000 7.125%, 2/29/00 14,128,240
Total U.S. Government Obligations (cost $34,684,217) 35,047,286
Total Investments - 98.9% 35,047,286
Cash, Receivables and Other Assets, net of Liabilities - 1.1% 401,182
Net Assets - 100% $35,448,468
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
10
<PAGE>
JANUS SHORT-TERM BOND FUND Portfolio Manager, Ronald V. Speaker
PERFORMANCE
During the first half of our fiscal year, the short end of the fixed-income
market rallied after signs of an economic slowdown emerged. This was welcome
news after the very difficult bond market of 1994. The combination of a slowing
economy, low inflation, and declining interest rates pushed bond prices higher.
The Janus Short-Term Bond Fund achieved a positive total return of 1.98%
for the six months ended April 30, 1995. This compares to 4.06% for the Lehman
Government/Corporate 1-3 Year Bond Index.
The Fund's underperformance was due to our defensive position through much
of the period. Our defensive posture enabled the Fund to post a positive return
of 0.35% in calendar 1994, one of the worst years on record for the bond market.
Part of our strategy was implemented by hedging the Fund's assets. We sold
2-year note futures against our long positions in 2-year government and
corporate notes, effectively neutralizing the portfolio. This strategy worked
well in late 1994 when the Federal Reserve Board raised the federal funds rate
from 4.75% to 5.50%. It also made the Fund the best performer among Janus
fixed-income funds for calendar 1994.
We continued our conservative posture into 1995 when the federal funds rate
was raised once again by 50 basis points (0.5%) to 6% on February 1.
By remaining defensive through the first quarter of 1995, we kept the Fund
stable. After the hard lessons of 1994, preservation of principal was our first
priority in 1995. However, the strategy also caused the portfolio to
underperform the Lehman Index as interest rates declined. The hedge has been
gradually reduced, but a portion still remains.
COMPOSITION OF THE PORTFOLIO
We continue to invest primarily in high-quality government and corporate
debt from U.S. issuers. Investment grade bonds (rated BBB or better by Standard
& Poor's) make up 72% of the portfolio. Larger positions in the portfolio
include Ford Motor Credit, General Electric, Chrysler, and Polaroid. Two-year
government notes are 26% of assets.
The average rating of the portfolio is A+, the average weighted maturity is
1.9 years, and the average 30-day yield is 7.04%. Duration (a theoretical
measure of price volatility) stands at 1.7 years.
STRATEGY GOING FORWARD
If the U.S. economy continues to moderate, the Federal Reserve may keep the
federal funds rate at or near current levels. If rates in fact move lower, we
may remove the remaining hedge.
Thank you for your continued investment in Janus Short-Term Bond Fund.
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Short-Term Bond Fund and the Lehman Brothers 1-3 Year
Government/Corporate Bond Index. Janus Short-Term Bond Fund is represented by a
solid blue line. The Lehman Brothers 1-3 Year Government/Corporate Bond 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 Short-Term Bond Fund
($10,916) as compared to the Lehman Brothers 1-3 Year Government/Corporate Bond
Index ($11,195). There is a legend in the upper left quadrant of the graph which
indicates Janus Short-Term Bond Fund's one-year and since inception (September
1, 1992) average annual total return for the period ended April 30, 1995 as
3.19% and 3.33%, 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 Funds April 30, 1995 Semiannual Report
11
<PAGE>
JANUS SHORT-TERM BOND FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
Corporate Bonds - 72.4%
Aerospace and Defense - 2.5%
$ 1,180,000 McDonnell Douglas Corp., 8.625%
senior notes, due 4/1/97 $ 1,209,500
Aircraft Leasing - 4.2%
2,000,000 International Lease Finance Corp., 7.90%
notes, due 10/1/96 2,027,500
Auto Related - 13.8%
2,035,000 Chrysler Financial Corp., 8.125%
senior notes, due 12/15/96 2,062,981
2,250,000 Ford Motor Credit Corp., 7.875%
notes, due 1/15/97 2,286,562
2,250,000 General Motors Acceptance Corp., 8.25%
global notes, due 8/1/96 2,283,750
6,633,293
Banking - 12.6%
1,000,000 First USA Bank, 8.10% bank notes,
due 2/21/97 1,013,750
1,000,000 Fleet Financial Group, Inc., 7.25%
senior notes, due 10/15/97 1,003,750
1,000,000 Fleet/Norstar Financial Group, Inc., 7.65%
senior notes, due 3/1/97 1,011,250
1,000,000 NationsBank Corp., 7.50% senior notes,
due 2/15/97 1,010,000
2,000,000 Norwest Corp., 7.70% medium term notes,
due 11/15/97 2,030,000
6,068,750
Beverages - 1.6%
750,000 PepsiCo, Inc., 7.875% debentures, due 8/15/96 758,438
Computer Related - 4.2%
2,000,000 Comdisco, Inc., 7.25% senior notes,
due 4/15/98 1,997,500
Energy - 4.2%
2,000,000 Enron Corp., 8.10% notes, due 12/15/96 2,030,000
Financial Services - 19.4%
2,000,000 General Electric Capital Corp., 7.85%
medium term notes, due 2/1/97 2,032,500
2,000,000 Greyhound Financial Corp., 8.25%
notes, due 3/11/97 2,042,500
1,500,000 Heller Financial Corp., 7.75%
notes, due 5/15/97 1,518,750
2,000,000 Household Finance Corp., 7.75%
notes, due 6/15/97 2,022,500
1,654,000 ITT Financial Corp., 7.25% notes, due 5/15/97 1,651,933
50,000 Travelers, Inc., 7.625% notes, due 1/15/97 50,500
9,318,683
Principal Amount Market Value
- - ---------------- ------------
Photographic Equipment - 5.4%
Polaroid Corp.:
$ 1,575,000 7.25% notes, due 1/15/97 $ 1,576,969
1,000,000 8.00% notes, due 3/15/99 1,013,750
2,590,719
Technology - 0.4%
175,000 Unisys Corp., 9.75% senior notes, due 9/15/96 179,156
Utilities-Electric - 2.6%
1,000,000 Consumers Power Co., 6.875%
first mortgage bonds, due 5/1/98 980,000
248,000 Montana Power Co., 7.50%
sinking fund debentures, due 1/1/98 249,240
1,229,240
Utilities-Telephone - 1.5%
750,000 General Telephone Co. of California, 6.75%
first mortgage notes, due 12/1/97 740,625
Total Corporate Bonds (cost $34,505,882) 34,783,404
U.S. Government Obligations - 25.8%
U.S. Treasury Notes:
70,000 7.25%, 11/30/96 70,729
9,975,000 7.50%, 12/31/96 10,125,523
500,000 6.625%, 3/31/97 500,270
1,700,000 7.25%, 2/15/98 1,723,154
Total U.S. Government Obligations (cost $12,307,494) 12,419,676
Total Investments - 98.2% (total cost $46,813,376) 47,203,080
Cash, Receivables and Other Assets, net of Liabilities - 1.8% 856,610
Net Assets - 100% $48,059,690
Financial Futures - Short - 0%
155 contracts U.S. Treasury - 2 year note, expires $19,375
June 1995, principal amount
$31,000,000, value $31,697,500
cumulative depreciation $295,469
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
12
<PAGE>
JANUS MONEY MARKET FUNDS Portfolio Manager, Sharon S. Pichler
BACKGROUND
During the six months ended April 30, 1995, interest rates declined sharply
and the bond market rallied. Slower economic growth and low inflation allowed
rates to fall.
The yield on the 30-year U.S. Treasury Bond fell from 7.97% on October 31,
1994, to 7.34% on April 30, 1995.
Yield on the long bond began declining in December, 1994, even though The
Federal Reserve Board continued to raise short-term interest rates as late as
February of 1995.
The Federal Reserve originally started raising its key short-term interest
rate, the federal funds rate, in early 1994 in an effort to slow the pace of
economic growth.
The fed funds rate directly influences the level of other rates along the
maturity spectrum, though not always in exact proportion, since the market
forces of supply and demand have more effect on intermediate and longer rates.
Short-term debt, however, including money market instruments, is especially
sensitive to the federal funds rate.
JANUS MONEY MARKET FUNDS OPEN
Janus Money Market Funds opened February 15, 1995, not long after the
Federal Reserve's last rate hike, so we were able to benefit from higher short
rates when we began putting assets to work.
Since then, yields on money market instruments have come down, but they
have declined less than intermediate and long-term rates. The yield on the
1-year Treasury Bill fluctuated from 6.14% on October 31, 1994, to 6.64% when
the Funds opened, to 6.31% on April 30, 1995.
JANUS MONEY MARKET FUND
Yields at the shorter end of the money market spectrum, 30-days or less,
have remained nearly identical to yields in the 1-year range.
As a result, we have kept the Janus Money Market Fund's weighted average
maturity (WAM) relatively short - 22 days as of April 30, 1995. This provides
more flexibility to adjust to interest rate changes, while maintaining a
competitive yield.
JANUS GOVERNMENT MONEY MARKET FUND
Government money market instruments are especially sensitive to the federal
funds rate. Yields at the shorter end of the government money market spectrum
have also remained very close to yields in the 1-year range. Accordingly, we
have kept the Fund's WAM short - 20 days as of April 30, 1995.
Credit quality in Janus Government Money Market Fund is the highest
available, because all government debt is rated AAA.
JANUS TAX-EXEMPT MONEY MARKET FUND
Yields on tax-exempt money market debt are more susceptible to seasonal
factors and have been in a divergent pattern. The yield on 1-week tax-exempt
securities was about 3.20% on October 31, 1994, and had climbed to approximately
4.10% when we opened the fund. Yields were up to about 4.70% by April 30, 1995,
due to supply and demand factors associated with the April 17 income tax
deadline.
In addition to seasonal factors, tax-exempt money market instruments are
very sensitive to supply and demand in the market-place and to investors'
current tax rates. These factors can influence yields as much, or more, than the
level of short-term interest rates set by the Federal Reserve.
Yields at the shorter end of the tax-exempt spectrum have actually remained
above those in the 1-year range, so the Fund's WAM was kept very short - 10 days
as of April 30, 1995. This also gives us the flexibility to adjust very quickly
to any changes in interest rates.
FUND STRATEGY
Other than interest rates, the two major variables in money market
portfolios are weighted average maturity and credit quality.
All else being equal, the higher weighted average days to maturity of a
fund, the more vulnerable it is to unexpected increases in interest rates. We do
not bet heavily on the direction of interest rates by changing our WAM
drastically, but we will make some adjustments, depending on our outlook.
Safety is a paramount concern. We research credits very carefully. We
follow the research of all the major independent credit rating agencies and have
up-to-date news on changes in the companies in which we invest.
The ultimate responsibility for portfolio quality rests squarely on our
in-house research and analysis. We evaluate credit quality using both
traditional ratio and fundamental analysis and our own proprietary criteria.
THANK YOU
We wish to thank all those shareholders who have invested in the Janus
Money Market Funds. We appreciate your confidence and support.
- - --------------------------------------------------------------------------------
Money Market Funds are not insured or guaranteed by the U.S. Government and
there can be no assurance that these funds will maintain a $1.00 share price in
the future.
Janus Funds April 30, 1995 Semiannual Report
13
<PAGE>
JANUS MONEY MARKET FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
Commercial Paper - 28.9%
AT&T Capital Corp.
$ 775,000 6.02%, 5/23/95 $ 772,149
Allied Signal, Inc.
15,474,000 5.95%, 5/1/95 15,474,000
American Express Credit Corp.
900,000 6.05%, 5/8/95 898,941
Ameritech Corp.
2,000,000 5.95%, 5/8/95 1,997,686
Avco Financial Services, Inc.
850,000 6.05%, 5/5/95 849,429
CSC Enterprises:
7,500,000 6.08%, 5/1/95 7,500,000
3,000,000 6.10%, 5/26/95 2,987,292
3,355,000 6.03%, 6/16/95 3,329,150
First Union Corp.
10,000,000 6.00%, 7/31/95 9,848,333
Ford Motor Credit Co.
450,000 6.05%, 5/8/95 449,471
General Motors Acceptance Corp.
150,000 6.15%, 5/8/95 149,821
Goldman Sachs Group L.P.
305,000 6.02%, 5/1/95 305,000
Household Finance Corp.
15,860,000 5.94%, 5/1/95 15,860,000
John Deere Capital Corp.
1,000,000 6.03%, 5/8/95 998,828
Morgan Stanley Group, Inc.:
5,000,000 6.00%, 5/2/95 4,999,167
1,500,000 6.03%, 5/22/95 1,494,724
Nationsbank Corp.:
500,000 6.03%, 5/15/95 498,827
10,000,000 6.14%, 9/20/95 9,757,811
5,000,000 6.12%, 10/2/95 4,869,100
Nynex Corp.:
6,000,000 6.05%, 5/2/95 5,998,991
8,000,000 6.01%, 5/5/95 7,994,657
545,000 6.05%, 5/15/95 543,718
5,000,000 5.98%, 5/16/95 4,987,541
Schering Corp.:
7,705,000 5.97%, 5/3/95 7,702,444
Spiegel Funding Corp.:
3,150,000 6.00%, 5/3/95 3,148,950
10,000,000 6.00%, 5/10/95 9,985,000
USAA Capital Corp.
200,000 6.01%, 5/30/95 199,032
Total Short-Term Corporate Notes
(amortized cost $123,600,062) 123,600,062
General Obligation Bonds - 0.3%
100,000 New York, New York, Series H, 6.25%, 8/1/98 100,000
1,000,000 New York, New York, Series H, 6.17%, 8/1/17 1,000,000
Total General Obligation Bonds (cost $1,100,000) 1,100,000
Put Bond (2) - 2.3%
10,000,000 Southern Container, 6.1521%,
flexible term notes, 4/1/05 10,000,000
U.S. Government Agency Discount Notes - 0.2%
Federal Home Loan Mortgage Corp.
90,000 5.92%, 5/2/95 89,985
Federal National Mortgage Association:
355,000 5.90%, 5/22/95 353,778
310,000 6.00%, 7/25/95 305,609
Total U.S. Government Agency Discount Notes
(amortized cost $749,372) 749,372
Principal Amount Market Value
- - ---------------- ------------
Time Deposits - 9.3%
Mercantile Bank of St. Louis
$ 20,000,000 5.9688%, 5/1/95$ 20,000,000
Shawmut Bank of Connecticut
20,000,000 6.00%, 5/1/95 20,000,000
Total Time Deposits (cost $40,000,000) 40,000,000
Bank Notes - 3.8%
130,000 National Bank of Detroit, 6.17%, 6/6/95 129,990
1,000,000 NationsBank of Dallas, N.A., 6.34%, 8/7/95 1,000,000
15,000,000 Regions Bank of Louisiana, 6.40%, 10/5/95 15,000,000
Total Bank Notes (amortized cost $16,129,990) 16,129,990
Certificates of Deposit - 1.1%
5,000,000 Bayerische Landesbanken, 6.875%, 4/2/96
(amortized cost $5,000,000) 5,000,000
Taxable Variable Rate Demand Notes (2) - 27.0%
3,500,000 Bessemer, Alabama Industrial Development
Board (Big B, Inc. Project), Series B,
6.13%, 5/1/05 3,500,000
350,000 Columbia, Georgia Development Authority
Industrial Park Revenue, 6.15%, 3/1/10 350,000
3,000,000 Community Health System, Inc., Series A,
6.40%, 10/1/03 3,000,000
10,000,000 FCC National Bank, 6.20%, 4/26/96 9,996,033
General Electric Capital Corp.,
Medium Term Notes:
15,000,000 6.25%, 4/5/96 14,995,738
3,000,000 6.28%, 4/19/96 3,000,000
100,000 Genesys Michigan Health System Taxable
Obligations, Series A, 6.22%, 4/1/20 100,000
800,000 Great Bend, Kansas Economic Development
Revenue Board, (Fuller Industries, Inc.
Project), 6.30%, 6/1/09 800,000
1,525,000 Health Care Taxable Obligation, (Glencrest
Real Estate & Development LLC Project),
6.30%, 2/15/24 1,525,000
Health Insurance Plan of Greater New York:
4,700,000 Series B, 6.25%, 7/1/16 4,700,000
4,500,000 Series B-2, 6.25%, 7/1/20 4,500,000
3,000,000 Health Midwest Ventures Group, Inc.,
Demand Bond Series 1994A,
6.35%, 8/1/19 3,000,000
400,000 Hinds County, Mississippi Industrial
Development Revenue Bond, (Cal-Maine
Foods, Inc. Project), 6.15%, 11/1/05 400,000
1,000,000 Keystone Health Resources Corp. of
Pennsylvania, Industrial Development
Revenue Bond, 6.10%, 12/1/15 1,000,000
415,000 Letts Industries, Inc., 6.30%, 2/1/20 415,000
4,000,000 Liliha Partners L.P. of Hawaii, 6.40%, 8/1/24 4,000,000
800,000 Maryland State Industrial Development
Financing Authority Terminal Corp. Facility
Revenue, 6.37%, 9/1/09 800,000
130,000 Mississippi Business Finance Corp. Industrial
Development Revenue, (Bryan Foods, Inc.
Project), 6.25%, 2/1/19 130,000
170,000 Missouri State Economic Development Export
& Infrastructures Industrial Development
Revenue, (Able Body Corp. Project),
6.65%, 6/1/08 170,000
1,000,000 Montgomery County Pennsylvania Industrial
Development Authority, (410 Horsham
Associates Project), 6.40%, 3/1/10 1,000,000
8,800,000 New York City, New York, Series G-2,
6.10%, 2/15/19 8,800,000
3,000,000 Oxnard California Finance Authority Refunding
Lease Revenue, 6.20%, 6/1/06 3,000,000
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
14
<PAGE>
JANUS MONEY MARKET FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
Taxable Variable Rate Demand Notes (continued)
$ 1,800,000 Renssalaer County New York Industrial
Development Authority, (Allied Signal Project),
6.15%, 9/1/09 $ 1,800,000
6,500,000 Richmond County Georgia Industrial
Development Authority Revenue Bond,
(Nutrasweet Co. Project), 6.10%, 6/1/20 6,500,000
3,235,000 St. Francis Hawaii Healthcare Foundation
Revenue Bond, 6.40%, 8/1/12 3,235,000
17,900,000 San Bernardino County California, (County
Center Refining Project), 6.15%, 7/1/16 17,900,000
9,365,000 San Jose California Financing Authority, (Hayes
Mansion Revenue Project), Series A,
6.20%, 12/1/25 9,365,000
1,000,000 Southwest General Hospital
6.10%, 9/1/17 1,000,000
6,500,000 Virginia State Housing Development Authority
Residential Mortgage Revenue, Series A,
6.15%, 3/1/02 6,500,000
Total Taxable Variable Rate Demand Notes
(amortized cost $115,481,771) 115,481,771
Principal Amount Market Value
- - ---------------- ------------
Repurchase Agreements - 26.7%
$ 74,688,000 First Chicago Repurchase Agreement 5.97%,
dated 4/28/95, maturing 5/1/95, to be
repurchased at $74,725,157, collateralized by:
$350,000 Federal Farm Credit Note, 2/28/05;
$29,200,000 Federal Farm Credit Bank Note,
6/1/95 and 4/1/02; $25,155,000 Federal
Home Loan Discount Notes, 1/1/96 -
3/25/96; $2,680,000 Federal Home Loan
Bonds, 2/22/99 - 11/30/04; $500,000
Federal National Mortgage Association Float
Rate Note, 9/2/97; $4,000,000 Federal
National Mortgage Association Bonds,
1/13/04 and 11/10/04; $3,844,000 United
States Government Strips, 7/15/03 -
1/15/19; $1,000,000 Federal National
Mortgage Association Note, 1/30/02;
$12,890,000 Student Loan Marketing
Association Float Rate Notes, 10/30/97 -
8/3/99, with respective values of
$398,332, $29,928,390, $24,040,350,
$2,687,577; $516,064, $4,207,803, $ 74,688,000
$1,201,106, $1,022,800, $12,930,268
40,000,000 Merrill Lynch Repurchase Agreement 6.15%,
dated 4/28/95, maturing 5/1/95, to be
repurchased at $40,020,500, collateralized
by $41,000,000 in Residential Single-Family
First Mortgage, Fixed/Adjustable Rate Loans, 40,000,000
value of $41,820,000
Total Repurchase Agreements (cost $114,688,000) 114,688,000
Total Investments - 99.6% (total cost $426,749,195) 426,749,195
Cash, Receivables and Other Assets, net of Liabilities - 0.4% 1,639,742
Net Assets - 100% $428,388,937
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
15
<PAGE>
JANUS GOVERNMENT MONEY MARKET FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
U.S. Government Agency Discount Notes - 46.7%
Federal Farm Credit Bank:
$ 7,090,000 5.95%, 5/5/95 $ 7,085,313
180,000 6.00%, 6/9/95 178,830
Federal Home Loan Bank:
15,850,000 5.95%, 5/1/95 15,850,000
Federal Home Loan Mortgage Corp.:
815,000 5.92%, 5/2/95 814,866
10,000,000 5.95%, 5/4/95 9,995,042
60,000 5.90%, 5/5/95 59,960
Federal National Mortgage Association:
2,585,000 5.90%, 5/22/95 2,576,103
100,000 6.11%, 7/17/95 98,693
Total U.S. Government Agency Discount Notes
(amortized cost $36,658,807) 36,658,807
U.S. Government Agency Variable Notes - 15.3%
Federal Farm Credit Medium Term Note
5,000,000 6.20%, 3/21/96 4,999,519
Federal National Mortgage Medium Term Notes:
4,000,000 6.02%, 8/25/95 4,000,000
3,000,000 6.37%, 1/26/96 3,000,541
Total U.S. Government Agency Variable Notes
(amortized cost $12,000,060) 12,000,060
U.S. Government Agency Bank Notes - 4.4%
Federal Home Loan Bank Note
3,500,000 6.60%, 4/26/96 (cost 3,500,000) 3,500,000
Principal Amount Market Value
- - ---------------- ------------
Repurchase Agreements - 33.1%
$ 19,000,000 First Chicago Repurchase Agreement, 5.97%
dated 4/28/95, maturing 5/1/95, to be
repurchased at $19,009,453, collateralized
by: $485,000 in Federal Farm Credit Bond,
2/1/05; $7,905,000 in Federal Farm Credit
Discount Notes, 5/1/95-6/6/95; $10,900,000
in Federal Farm Credit Bank Notes, 6/1/95,
with respective values of $520,923, $ 19,000,000
$7,877,983 and $11,172,318
7,000,000 Merrill Lynch Repurchase Agreement, 5.94%
dated 4/28/95, maturing 5/1/95, to be
repurchased at $7,003,465, collateralized
by: $15,008,988 in Government National
Mortgage Association Notes 5.50% - 9.50%,
1/15/05 - 4/15/25 and $532,992 in
Federal National Mortgage Association
Notes 7.00% - 10.00%, 8/1/21 - 1/1/24,
with respective values of $6,903,245 7,000,000
and $439,056
Total Repurchase Agreements (cost $26,000,000) 26,000,000
Total Investments - 99.5% (total cost $78,158,867) 78,158,867
Cash, Receivables and Other Assets, net of Liabilities - 0.5% 387,805
Net Assets - 100% $78,546,672
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
16
<PAGE>
JANUS TAX-EXEMPT MONEY MARKET FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
General Obligation Notes - 10.5%
$ 2,000,000 Idaho State Tax Anticipation Notes,
4.50%, 6/29/95 $ 2,000,145
2,450,000 New York, New York, Series B,
4.75%, 6/30/95 2,451,120
1,000,000 Private Colleges and Universities
Facility Authority, 4.10%, 5/2/95 1,000,000
Total General Obligation Notes (amortized cost $5,451,265) 5,451,265
Put Bonds (2) - 1.2%
200,000 Arapahoe County, Colorado Capital
Improvement Trust Fund Highway Revenue,
(E-470 Project), Series A, 4.40%, 8/31/26 200,000
400,000 Montgomery County, Texas Health Facilities
Corp. Revenue, (Panther Creek - Oxford
Project), 4.45%, 9/1/08 403,672
Total Put Bonds (amortized cost $603,672) 603,672
Municipal Securities - 1.9%
1,000,000 Suffolk County, New York Water Authority,
4.80%, 6/1/95 (amortized cost $1,000,320) 1,000,320
Variable Rate Demand Notes (2) - 90.0%
Alabama - 8.3%
2,100,000 McIntosh Industrial Development Revenue
Pollution Control Revenue, (CIBA Geigy
Corp. Project), Series A, 4.65%, 12/1/03 2,100,000
Mobile Industrial Development Revenue,
(Georgia Crown District Co. Project),
140,000 4.75%, 5/1/96 140,000
(Solid Waste Disposal Revenue),
(Scott Paper Co. Project):
400,000 Series D, 4.65%, 12/1/19 400,000
1,700,000 Series E, 4.65%, 12/1/19 1,700,000
4,340,000
California - 8.4%
Irvine Ranch Water District:
1,500,000 (Consolidated Refunding Project), Series B,
5.30%, 10/1/99 1,500,000
300,000 (Sewer Improvement District 282 Project),
Series A, 5.30%, 11/15/13 300,000
500,000 (Waterworks Improvement District 182
Project), Series A, 5.30%, 11/15/13 500,000
100,000 Palm Springs Community Redevelopment Agency
Certificate of Participation, (Headquarters
Hotel Project), 4.20%, 12/1/14 100,000
2,000,000 Woodland Multi-Family Housing Revenue,
(Crossroads Village Apartments Project),
Series A, 4.40%, 8/1/18 2,000,000
4,400,000
Colorado - 4.2%
100,000 Adams County Industrial Development
Revenue, (City View Park Partnership
Project), 4.80%, 12/1/15 100,000
Colorado Student Obligation Bond Authority
Student Loan Revenue (Sallie Mae):
1,000,000 Series C-1, 4.50%, 8/1/00 1,000,000
1,000,000 Series C-2, 4.50%, 9/1/02 1,000,000
105,000 El Paso County Multi-Family Housing
Revenue, (Briarglen Apartments Project),
5.00%, 12/1/24 105,000
2,205,000
Principal Amount Market Value
- - ---------------- ------------
Florida - 1.7%
$ 200,000 Broward County Housing Finance Authority
Multi-Family Housing Revenue, (Jacaranda
Village Project), 4.70%, 9/1/97 $ 200,000
700,000 Pinellas County Housing Finance Authority
Multi-Family Housing Revenue, (Lynn Lake
Arms Phase II Project), Series II-A,
4.65%, 7/1/11 700,000
900,000
Georgia - 18.5%
615,000 Atlanta Urban Financing Authority Multi-Family
Housing Revenue, (Sylvan Circle Apartments
Project), 4.75%, 7/1/15 615,000
3,000,000 Burke County Georgia Power Corp. Plant,
(Vogtle Project), 5.20%, 10/1/24 3,000,000
100,000 Columbia County Elderly Authority Residential
Care Facitilies Revenue, (Augusta Residential
Center for the Aging), 4.75%, 1/1/21 100,000
1,500,000 Georgia Municipal Association Pool,
Certificates of Participation, 4.80%, 12/15/20 1,500,000
2,000,000 Glynn-Brunswick Hospital Authority Revenue,
(S.E. Georgia Regional Medical Center
Project), Series A, 4.75%, 8/1/09 2,000,000
2,400,000 Peachtree City Development Authority Revenue,
(Equitable PCDC Project), 4.95%, 7/1/10 2,400,000
9,615,000
Idaho - 2.7%
1,400,000 Power County Pollution Control Revenue,
(FMC Corp. Project), 5.10%, 12/1/10 1,400,000
Illinois - 12.3%
2,100,000 Bartlett Multi-Family Housing Revenue,
(Bartlett Square Apartments), Series A,
4.70%, 3/1/25 2,100,000
Illinois Health Facilities Authority Revenue:
100,000 (West Suburban Medical Center Project),
4.55%, 7/1/05 100,000
200,000 (Parkside Development Corp. Project),
4.70%, 7/1/21 200,000
2,000,000 (University of Chicago Hospitals Project C),
4.65%, 8/15/26 2,000,000
1,000,000 Lisle Multi-Family Housing Revenue, (Ashley of
Lisle Project), 4.50%, 12/15/25 1,000,000
1,000,000 Wood Dale Industrial Development Revenue,
(Nippon Express, Inc. Project), 4.75%, 6/1/06 1,000,000
6,400,000
Indiana - 0.2%
100,000 Jasper County Pollution Control Revenue,
(Northern Indiana Public Service Co. Project),
Series B, 5.10%, 6/1/13 100,000
Kansas - 0.2%
100,000 Kansas City Industrial Development Revenue,
(PQ Corp. Project), 5.10%, 8/1/15 100,000
Louisiana - 5.3%
100,000 Louisiana Offshore Term Authority Port
Revenue, (Loop, Inc. Project),
Series A, 4.65%, 9/1/08 100,000
1,100,000 New Orleans Exhibition Hall Authority Special
Tax Revenue, 4.75%, 7/1/18 1,100,000
100,000 South Louisiana Port Community Marine Term
Facility Authority, (Occidental Petroleum
Project), 4.65%, 7/1/21 100,000
1,485,000 Sulphur Industrial Development Revenue,
(La Quinta Inns Project), 4.75%, 12/1/04 1,485,000
2,785,000
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
17
<PAGE>
JANUS TAX-EXEMPT MONEY MARKET FUND April 30, 1995 (unaudited)
Principal Amount Market Value
- - ---------------- ------------
Michigan - 3.8%
$ 2,000,000 Michigan Hospital Finance Authority,
(Mt. Clemens General Hospital),
4.75%, 8/15/05 $ 2,000,000
Minnesota - 0.4%
100,000 Austin Commercial Development Revenue,
(Hy-Vee Foods, Inc. Project), 4.00%, 12/1/04 100,000
100,000 Minneapolis Hospital Revenue, (Children's
Medical Center Project), Series A,
5.10%, 2/1/21 100,000
200,000
Missouri - 0.6%
195,000 Columbia Certificates of Participation Authority,
4.70%, 8/15/99 195,000
100,000 Missouri Health Education Financing Authority
Hospital Finance Revenue, (Sisters of Mercy
Health System Project), 4.65%, 6/1/14 100,000
295,000
Montana - 0.6%
200,000 Billings Multi-Family Housing Revenue,
(West Park Retirement Center Project),
4.55%, 12/1/07 200,000
100,000 Forsyth Pollution Control Revenue, (Portland
General Electric Co. Project), Series B,
4.45%, 6/1/13 100,000
300,000
North Carolina - 0.4%
200,000 Wake County Industrial Facilities & Pollution
Control Financing Authority Revenue,
(Carolina Power & Light Co. Project),
Series A, 4.60%, 5/1/15 200,000
Oklahoma - 1.2%
620,000 Claremore Redevelopment Authority Industrial
Development Revenue, (Worthington Cylinder
Corp. Project), 4.75%, 1/1/11 620,000
Oregon - 2.1%
1,000,000 Klamath Falls Electric Revenue, (Salt Caves
Hydroelectric Project), Series A,
4.40%, 5/1/23 1,000,000
100,000 Portland Multi-Family Housing Revenue, (South
Park Block Project), Series A, 4.55%, 12/1/11 100,000
1,100,000
Pennsylvania - 2.3%
1,000,000 Chester County Industrial Development
Revenue, (Woods Project), 5.15%, 3/31/15 1,000,000
200,000 Delaware Valley Regional Financing Authority,
Series 1985A-1V 1991, 4.70%, 12/1/17 200,000
1,200,000
Principal Amount Market Value
- - ---------------- ------------
South Carolina - 0.2%
$ 100,000 South Carolina Higher Education Facilities
Authority Revenue, (Presbyterian College
Project), 4.70%, 6/1/08 $ 100,000
Tennessee - 11.3%
500,000 Bradley County Industrial Development
Revenue, (Olin Corp. Project),
5.10%, 11/1/17 500,000
2,500,000 Greeneville Health & Educational Facilities
Board, (Laughlin Memorial Hospital, Inc.
Project), 4.70%, 10/1/14 2,500,000
Metro Nashville & Davidson County Health &
Educational Facilities Board:
425,000 (Ozburn-Hessey Storage Co. Project),
4.75%, 7/1/10 425,000
370,000 (West Meade Place Project), 4.70%, 10/1/15 370,000
2,100,000 (Richland Place, Inc. Project), 4.50%, 5/1/23 2,100,000
5,895,000
Texas - 4.4%
100,000 Grapevine Industrial Development Corp. Airport
Revenue, (Simuflite Training Project),
4.65%, 3/1/10 100,000
1,400,000 Harris County Health Facilities Development
Corp. Hospital Revenue, (Memorial Senior
Services, Inc. Project), 4.62%, 5/1/18 1,400,000
600,000 Harris County Industrial Development Corp.
Pollution Control Revenue, (Exxon Corp.
Project), Series B, 5.05%, 3/1/24 600,000
200,000 Hunt County Industrial Development Corp.,
(Trico Industries, Inc. Project),
4.50%, 10/1/02 200,000
2,300,000
Washington - 0.2%
100,000 Seattle Municipal Light & Power Revenue,
Series 985-5, 4.55%, 11/1/18 100,000
West Virginia - 0.5%
285,000 Mercer County Industrial Development Revenue,
(Flowers Baking Co. of West Virginia, Inc.
Project), 4.75%, 3/1/99 285,000
Wisconsin - 0.2%
100,000 Wisconsin Health & Educational Facilities
Authority, (Felician Health Care, Inc. Project),
4.75%, 1/1/19 100,000
Total Variable Rate Notes (amortized cost $46,940,000) 46,940,000
Total Investments - 103.6% (total cost $53,995,257) 53,995,257
Liabilities, net of Cash, Receivables and Other Assets - (3.6%) (1,897,315)
Net Assets - 100% $52,097,942
NOTES TO SCHEDULE OF INVESTMENTS
* 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.
1) Variable Rate Notes. The interest rate, which is based on specific, or an
index of, market interest rates, is subject to change. Rates in the
security description are as of April 30, 1995. Adjustable Rate Preferred
Stock Dividend Rates are as of 4/30/95.
2) Money Market Funds may hold securities with stated maturities of greater
than one year, when those securities have features which allow the Fund to
"put" back the security to the issuer or to a third party within a year of
acquisition.
The maturity date shown in the security descriptions are the stated
maturity dates.
Janus Funds April 30, 1995 Semiannual Report
18
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Janus Janus Janus Janus
Flexible Federal Intermediate Short-Term
Income Tax-Exempt Government Bond
For the six months ended April 30, 1995 (all numbers in thousands) (unaudited) Fund Fund Securities Fund Fund
- - ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C>
Interest $ 16,909 $ 856 $ 1,279 $ 1,740
Dividends 877 -- -- 24
17,786 856 1,279 1,764
Expenses:
Advisory fees 1,201 82 87 153
Transfer agent fees and expenses 456 51 69 74
Registration fees 73 24 14 6
Postage and mailing expenses 116 17 24 26
Custodian fees 8 -- 3 1
Printing expenses 14 2 2 2
Audit fees 9 6 3 2
Trustees' fees and expenses 1 -- -- --
Other expenses 43 3 11 10
1,921 185 213 274
Less: Excess expense reimbursement (8) (96) (100) (122)
1,913 89 113 152
Net investment income/(loss) 15,873 767 1,166 1,612
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions (14,279) (392) (870) (1,797)
Net realized gain/(loss) from foreign currency 36 -- -- (9)
Net realized gain/(loss) from futures contracts (1,054) (69) (8) (236)
Change in net unrealized appreciation or depreciation of investments 20,007 1,292 1,065 1,166
Net gain/(loss) on investments 4,710 831 187 (876)
Net increase/(decrease) in net assets resulting from operations $ 20,583 $ 1,598 $ 1,353 $ 736
</TABLE>
An Explanation of the Statement of Operations
This financial statement details the fund's income, expenses, and gains and
losses 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 and interest
earned from interest-bearing securities held in the portfolio.
The next section to this schedule reports the expenses incurred by the
fund's including the advisory fee paid to the investment advisor, the transfer
agent fees for 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.
See Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
19
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Janus Janus Janus Janus
Flexible Federal Intermediate Short-Term
As of April 30, 1995 Income Tax-Exempt Government Bond
(all numbers in thousands except net asset value per share) (unaudited) Fund Fund Securities Fund Fund
- - ------------------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments at cost $458,511 $ 31,451 $ 34,684 $ 46,813
Investments at value $463,998 $ 31,272 $ 35,047 $ 47,203
Cash 2,998 42 1 5
Receivables:
Investments sold 23,852 1,021 -- 1,091
Fund shares sold 1,307 20 7 52
Interest 10,330 551 457 994
Variation margin - futures contracts -- -- -- 19
Other assets 5 19 2 4
Total Assets 502,490 32,925 35,514 49,368
Liabilities:
Payables:
Investments purchased 37,116 1,941 -- 1,086
Fund shares repurchased 409 1,425 8 141
Dividends 627 21 15 24
Advisory fee 291 15 9 23
Transfer agent fee 95 11 16 15
Accrued expenses 102 19 18 19
Total Liabilities 38,640 3,432 66 1,308
Net Assets $463,850 $ 29,493 $ 35,448 $ 48,060
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 51,308 4,427 7,323 17,029
Net Asset Value Per Share $ 9.04 $ 6.66 $ 4.84 $ 2.82
</TABLE>
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 fund 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 on stocks owned but not yet received, 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.
See Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
20
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Janus Janus
For the six months ended April 30, 1995 (unaudited) or Flexible Income Federal Tax-Exempt
the year ended October 31, 1994 (all numbers in thousands) Fund Fund
- - ------------------------------------------------------------------------------------------------------------------------------------
1995 1994 1995 1994
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 15,873 $ 33,228 $ 767 $ 1,476
Net realized gain/(loss) from investment transactions (15,297) (7,953) (461) (1,592)
Change in unrealized net appreciation or depreciation of investments 20,007 (30,819) 1,292 (1,943)
Net increase/(decrease) in net assets resulting from operations 20,583 (5,544) 1,598 (2,059)
Dividends and Distributions to Shareholders:
Net investment income* (15,841) (32,659) (767) (1,476)
Net realized gain from investment transactions -- (10,835) -- (80)
Net decrease from dividends and distributions (15,841) (43,494) (767) (1,556)
Capital Share Transactions:
Shares sold 170,799 255,714 10,685 24,505
Reinvested dividends and distributions 11,982 34,014 619 1,290
Shares repurchased (101,018) (336,461) (9,106) (23,047)
Net increase/(decrease) from capital share transactions 81,763 (46,733) 2,198 2,748
Net increase/(decrease) in net assets 86,505 (95,771) 3,029 (867)
Net Assets:
Beginning of period 377,345 473,116 26,464 27,331
End of Period $ 463,850 $ 377,345 $ 29,493 $ 26,464
Net Assets consist of:
Capital(par value and paid-in surplus)* 481,005 399,242 31,729 29,531
Undistributed net investment income* 372 340 -- --
Undistributed net realized gain/(loss)* from investments (23,023) (7,726) (2,057) (1,596)
Unrealized appreciation/(depreciation) of investments 5,496 (14,511) (179) (1,471)
$ 463,850 $ 377,345 $ 29,493 $ 26,464
Transactions in Fund Shares:
Shares sold 19,281 26,898 1,625 3,504
Reinvested distributions 1,351 3,585 95 187
Total 20,632 30,843 1,720 3,691
Shares repurchased (11,435) (35,552) (1,397) (3,331)
Net increase/(decrease) 9,197 (5,069) 323 360
Shares outstanding beginning of period 42,111 47,180 4,104 3,744
Shares outstanding end of period 51,308 42,111 4,427 4,104
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 444,963 $ 452,205 $ 23,036 $ 46,083
Proceeds from Sales of Securities 419,139 513,795 17,189 45,101
Purchases of Long-Term U.S. Government Obligations 168,503 97,873 -- --
Proceeds from Sales of Long-Term U.S. Government Obligations 87,023 155,639 -- --
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Janus Intermediate Janus
For the six months ended April 30, 1995 (unaudited) or Government Short-Term Bond
the year ended October 31, 1994 (all numbers in thousands) Securities Fund Fund
- - ------------------------------------------------------------------------------------------------------------------------------------
1995 1994 1995 1994
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 1,166 $ 2,318 $ 1,612 $ 3,625
Net realized gain/(loss) from investment transactions (878) (2,564) (2,042) (1,744)
Change in unrealized net appreciation or depreciation of investments 1,065 (682) 1,166 (1,284)
Net increase/(decrease) in net assets resulting from operations 1,353 (928) 736 597
Dividends and Distributions to Shareholders:
Net investment income* (1,158) (2,318) (1,622) (3,443)
Net realized gain from investment transactions -- -- -- (248)
Net decrease from dividends and distributions (1,158) (2,318) (1,622) (3,691)
Capital Share Transactions:
Shares sold 8,083 19,067 17,708 75,314
Reinvested dividends and distributions 1,035 2,092 1,393 3,286
Shares repurchased (10,582) (45,980) (24,440) (97,317)
Net increase/(decrease) from capital share transactions (1,464) (24,821) (5,339) (18,717)
Net increase/(decrease) in net assets (1,269) (28,067) (6,225) (21,811)
Net Assets:
Beginning of period 36,717 64,784 54,285 76,096
End of Period $ 35,448 $ 36,717 $ 48,060 $ 54,285
Net Assets consist of:
Capital(par value and paid-in surplus)* 39,853 41,316 51,624 56,963
Undistributed net investment income* 10 3 17 26
Undistributed net realized gain/(loss)* from investments (4,778) (3,900) (3,675) (1,633)
Unrealized appreciation/(depreciation) of investments 363 (702) 94 (1,071)
$ 35,448 $ 36,717 $ 48,060 $ 54,285
Transactions in Fund Shares:
Shares sold 1,689 3,800 6,260 25,336
Reinvested distributions 216 422 493 1,117
Total 1,905 4,222 6,753 26,453
Shares repurchased (2,214) (9,139) (8,611) (32,730)
Net increase/(decrease) (309) (4,917) (1,858) (6,277)
Shares outstanding beginning of period 7,633 12,550 18,887 25,164
Shares outstanding end of period 7,324 7,633 17,029 18,887
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities -- -- $ 29,905 $ 117,332
Proceeds from Sales of Securities -- -- 39,875 102,092
Purchases of Long-Term U.S. Government Obligations $ 64,018 $ 141,493 39,235 82,855
Proceeds from Sales of Long-Term U.S. Government Obligations 65,747 166,869 31,127 111,465
</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 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 of this schedule summarizes the information from the
State 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 gain 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
Janus Funds April 30, 1995 Semiannual Report
21
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995
(unaudited) or throughout each fiscal year or period Janus Flexible Income Fund
ended October 31 1995 1994 1993 1992(3) 1991(4) 1990(4)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.96 $10.03 $ 9.26 $ 9.09 $ 8.01 $ 9.35
Income from investment operations
Net investment income .87 .74 .77 .68 .68 .95
Net gains or (losses) on securities (both realized and unrealized) (.43) (.86) .79 .15 1.29 (1.38)
Total from investment operations .44 (.12) 1.56 .83 1.97 (.43)
Less distributions
Dividends (from net investment income) (.36) (.72) (.77) (.66) (.72) (.91)
Distributions (from capital gains) -- (.23) (.02) -- (.17) --
Total distributions (.36) (.95) (.79) (.66) (.89) (.91)
Net asset value, end of period $9.04 $ 8.96 $10.03 $ 9.26 $ 9.09 $ 8.01
Total return** 5.09% (1.26%) 17.48% 9.43%** 25.98% (4.62%)
Net assets, end of period (in thousands) $463,850 $377,345 $473,116 $205,371 $72,145 $13,516
Average net assets for the period (in thousands) $385,830 $428,962 $337,568 $143,766 $33,260 $14,604
Ratio of expenses to average net assets* 1.00%(7) 0.93% 1.00%(7) 1.00%(7) 1.00%(7) 1.00%(7)
Ratio of net investment income to average net assets* 8.30% 7.75% 7.96% 8.98% 9.38% 11.24%
Portfolio turnover rate* 280% 137% 201% 210% 88% 96%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995
(unaudited) or throughout each fiscal year or period Janus Federal Tax-Exempt Fund
ended October 31 1995 1994 1993(1)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $6.45 $7.30 $7.00
Income from investment operations
Net investment income .18 .36 .14
Net gains or (losses) on securities (both realized and unrealized) .21 (.83) .30
Total from investment operations .39 (.47) .44
Less distributions
Dividends (from net investment income) (.18) (.36) (.14)
Distributions (from capital gains) -- (.02) --
Total distributions (.18) (.38) (.14)
Net asset value, end of period $6.66 $6.45 $7.30
Total return** 6.17% (6.62%) 6.33%**
Net assets, end of period (in thousands) $29,493 $26,464 $27,331
Average net assets for the period (in thousands) $27,417 $28,384 $16,038
Ratio of expenses to average net assets* 0.65%(5) 0.65%(5) 0.75%(5)
Ratio of net investment income to average net assets* 5.64% 5.20% 4.58%
Portfolio turnover rate* 131% 160% 124%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995
(unaudited) or throughout each fiscal year or period Janus Short-Term Bond Fund
ended October 31 1995 1994 1993 1992(2)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $2.87 $3.02 $2.98 $3.00
Income from investment operations
Net investment income .10 .18 .14 .01
Net gains or (losses) on securities (both realized and unrealized) (.05) (.15) .04 (.02)
Total from investment operations .05 .03 .18 (.01)
Less distributions
Dividends (from net investment income) (.10) (.17) (.14) (.01)
Distributions (from capital gains) -- (.01) -- --
Total distributions (.10) (.18) (.14) (.01)
Net asset value, end of period $2.82 $2.87 $3.02 $2.98
Total return** 1.98% 1.26% 6.17% (0.19%)**
Net assets, end of period (in thousands) $48,060 $54,285 $76,096 $3,472
Average net assets for the period (in thousands) $47,312 $59,584 $36,794 $ 779
Ratio of expenses to average net assets* 0.65%(6) 0.65%(6) 0.83%(6) 1.00%(6)
Ratio of net investment income to average net assets* 6.87% 6.08% 4.86% 3.22%
Portfolio turnover rate* 298% 346% 372% 7%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995
(unaudited) or throughout each fiscal year or Janus Intermediate Government Securities Fund
period ended October 31 1995 1994 1993 1992(3) 1991(4)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $4.81 $5.16 $5.36 $5.35 $5.00
Income from investment operations
Net investment income .16 .25 .22 .22 .13
Net gains or (losses) on securities (both realized and unrealized) .03 (.35) (.09) .01 .35
Total from investment operations .19 (.10) .13 .23 .48
Less distributions
Dividends (from net investment income) (.16) (.25) (.22) (.22) (.13)
Distributions (from capital gains) -- -- (.11) -- --
Total distributions (.16) (.25) (.33) (.22) (.13)
Net asset value, end of period $4.84 $4.81 $5.16 $5.36 $5.35
Total return** 3.97% (1.89%) 2.68% 4.48%** 9.74%**
Net assets, end of period (in thousands) $35,448 $36,717 $64,784 $69,702 $14,545
Average net assets for the period (in thousands) $35,309 $46,621 $67,972 $39,960 $5,814
Ratio of expenses to average net assets* 0.65%(8) 0.65%(8) 0.91%(8) 1.00%(8) 1.00%(8)
Ratio of net investment income to average net assets* 6.66% 4.97% 4.27% 4.95% 5.93%
Portfolio turnover rate* 365% 304% 371% 270% 0%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
22
<PAGE>
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 from May 3, 1993 (inception) to October 31, 1993
(2) Fiscal period from September 1, 1992 (inception) to October 31, 1992
(3) Fiscal period from January 1, 1992 to October 31, 1992
(4) Fiscal year ended December 31 of each year
(5) The ratio was 1.36% in 1995, 1.41% in 1994 and 1.60% in 1993 before
voluntary waiver of certain fees incurred by the Fund
(6) The ratio was 1.17% in 1995, 1.15% in 1994, 1.40% in 1993 and 2.50% in 1992
before voluntary waiver of certain fees incurred by the Fund.
(7) The ratio was 1.01% in 1995, 1.01% in 1993, 1.21% in 1992 and 1.74% in 1991
before voluntary waiver of certain fees incurred by the Fund. The ratio was
2% in prior years.
(8) The ratio was 1.22% in 1995, 1.15% in 1994, 1.09% in 1993, 1.32% in 1992
and 1.39% in 1991 before voluntary waiver of certain fees incurred by the
Fund.
* Annualized for periods less than one year
** Total return not annualized for periods of less than one year
Janus Funds April 30, 1995 Semiannual Report
23
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Janus Janus Janus
For the period February 15, 1995 to April 30, 1995 Money Market Government Money Market Tax-Exempt Money Market
(all numbers in thousands) (unaudited) Fund Fund Fund
- - ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C>
Interest $2,559 $ 483 $ 228
2,559 483 228
Expenses:
Advisory Fee for Investor Shares 41 8 6
Advisory Fee for Institutional Shares 1 -- --
Administrative Fee for Investor Shares 202 40 27
Administrative Fee for Institutional Shares 1 -- --
245 48 33
Net Investment Income: $2,314 $ 435 $ 195
Net Realized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions -- (1) --
Net gain/(loss) on investments -- (1) --
Net increase/(decrease) in net assets resulting from operations $2,314 $ 434 $ 195
</TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Janus Janus Janus Tax-Exempt
As of April 30, 1995 Money Market Government Money Market Money Market
(all numbers in thousands except net asset value) (unaudited) Fund Fund Fund
- - ------------------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C>
Investments at amortized cost $426,749 $ 78,159 $ 53,995
Cash 30 (46) 90
Receivables:
Fund Shares Sold 2,930 498 176
Interest 735 143 385
Total Assets $430,444 $ 78,754 $ 54,646
Liabilities:
Payables
Investments Purchased -- -- $ 2,465
Fund Shares Repurchased 1,819 166 55
Dividends and Distributions 48 5 3
Advisory Fee 32 6 4
Administrative Fee 156 30 21
Total Liabilities $ 2,055 $ 207 $ 2,548
Total Net Assets $428,389 $ 78,547 $ 52,098
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) $428,389 $ 78,547 $ 52,098
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
</TABLE>
See Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
24
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Janus Janus Janus Tax-Exempt
For the period February 15, 1995 to April 30, 1995 Money Market Government Money Market Money Market
(all numbers in thousands) (unaudited) Fund Fund Fund
- - ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C>
Net investment income/(loss) $ 2,314 $ 435 $ 195
Net realized gain/(loss) from investment transactions -- ($ 1) --
Change in unrealized net appreciation or depreciation of investments -- -- --
Net increase/(decrease) in net assets resulting from operations $ 2,314 $ 434 $ 195
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares ($ 2,245) ($ 434) ($ 195)
Institutional Shares (69) -- --
Net realized gain/(loss) from investment transactions:
Investor Shares -- -- --
Institutional Shares -- -- --
Net decrease from dividends and distributions ($ 2,314) ($ 434) ($ 195)
Capital Share Transactions:
Shares sold:
Investor Shares $ 474,949 $ 88,926 $ 61,439
Institutional Shares 30,000 10 10
Reinvested dividends and distributions:
Investor Shares 2,172 423 190
Institutional Shares 46 -- --
Shares repurchased:
Investor Shares ($ 78,778) ($ 10,812) ($ 9,541)
Institutional Shares -- -- --
Net increase/(decrease) from capital share transactions $ 428,389 $ 78,547 $ 52,098
Net increase/(decrease) in net assets $ 428,389 $ 78,547 $ 52,098
Net Assets beginning of period -- -- --
Net Assets end of period $ 428,389 $ 78,547 $ 52,098
Net Assets consist of:
Capital (par value and paid-in surplus) $ 428,389 $ 78,547 $ 52,098
Undistributed net investment income -- -- --
Undistributed net realized gain/(loss) from investments -- -- --
Unrealized appreciation/(depreciation) of investments -- -- --
$ 428,389 $ 78,547 $ 52,098
Transactions in Fund Shares - Investor Shares
Shares Sold 474,949 88,926 61,439
Reinvested dividends and distributions 2,172 423 190
Total 477,121 89,349 61,629
Shares repurchased (78,778) (10,812) (9,541)
Net increase(decrease) in fund shares 398,343 78,537 52,088
Shares outstanding at beginning of period -- -- --
Shares outstanding at end of period 398,343 78,537 52,088
Transactions in Fund Shares - Institutional Shares
Shares Sold 30,000 10 10
Reinvested dividends and distributions 46 -- --
Total 30,046 10 10
Shares repurchased -- -- --
Net increase/(decrease) in fund shares 30,046 10 10
Shares outstanding at beginning of period -- -- --
Shares outstanding at end of period 30,046 10 10
</TABLE>
Janus Funds April 30, 1995 Semiannual Report
25
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Janus Janus Janus
For a share outstanding throughout the period Money Market Government Money Market Tax-Exempt Money Market
February 15, 1995 to April 30, 1995 (unaudited) Fund Fund Fund
Investor Shares 1995 1995 1995
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period $1.00 $1.00 $ 1.00
Income from investment operations:
Net investment income .01 .01 --**
Net gains or (losses) on investments (both realized and unrealized) -- -- --
Total from investment operations .01 .01 --
Less Dividends and Distributions:
Dividends (from net investment income) (.01) (.01) --**
Distributions (from net capital gains) -- -- --
Total dividends and distributions (.01) (.01) --
Net asset value at end of period $1.00 $1.00 $ 1.00
Total return 1.13% 1.12% 0.70%
Net assets at end of period (in thousands) $398,345 $78,537 $52,088
Average net assets for the period (in thousands) $196,783 $38,878 $26,743
Ratio of expenses to average net assets 0.60%(1) 0.60%(1) 0.60%(1)
Ratio of net investment income to average net assets 5.55% 5.45% 3.54%
</TABLE>
<TABLE>
<CAPTION>
Janus Janus Janus Tax-Exempt
For a share outstanding throughout the period Money Market Government Money Market Money Market
April 17, 1995 to April 30, 1995 (unaudited) Fund Fund Fund
Institutional Shares 1995 1995 1995
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income --** --** --**
Net gains or (losses) on investments (both realized and unrealized) -- -- --
Total from investment operations -- -- --
Less Dividends and Distributions:
Dividends (from net investment income) --** --** --**
Distributions (from net capital gains) -- -- --
Total dividends and distributions -- -- --
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00
Total return 0.23% 0.26% 0.17%
Net assets at end of period (in thousands) $30,046 $ 10 $ 10
Average net assets for the period (in thousands) $32,308 $ 10 $ 10
Ratio of expenses to average net assets 0.15%(2) 0.15%(2) 0.15%(2)
Ratio of net investment income to average net assets 6.03% 5.92% 4.35%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Total return is not annualized for periods of less than one year
** Amounts are less than $.01 per share.
(1) The ratio was .70% before voluntary reduction of fees.
(2) The ratio was .35% before voluntary reduction of fees.
See Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
26
<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. Four series of shares (the "Bond Funds") included in this report invest
primarily in income producing securities and three series of shares (the "Money
Market Funds") invest exclusively in high quality money market instruments.
The Janus Money Market, Janus Government Money Market and Janus Tax-Exempt
Money Market Funds began operations on February 15, 1995 with the issuance of
the investor class of shares.
Effective April 17, 1995, the Janus Money Market, Janus Government Money
Market and Janus Tax-Exempt Money Market Funds began offering an institutional
class of shares. "Investor Shares" are available to the general public and
"Institutional Shares" are available only to institutional investors that meet
the $250,000 minimum account size.
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 (or yield equivalent
thereof) obtained from one or more dealers making a market for such securities
or by a pricing service approved by the Funds' Trustees. Short-term investments
maturing within 60 days for the Bond Funds and all money market securities in
the Money Market Funds 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 fair value as 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.
Additional Investment Risk
A portion of the Janus Flexible Income Fund may be invested in lower rated
debt securities that have a higher risk of default or loss of value due to
changes in the economy or in their respective industry. Foreign denominated
assets and forward currency contracts may involve greater risks than domestic
transactions, including: currency risk, political and economic risk, regulatory
risk and market risk. The use of futures contracts may involve other risks such
as the possibility of an illiquid market or imperfect correlation between the
value of the contracts and the underlying securities.
Dividend Distributions and Expenses
Dividends for the four Income Funds are declared daily and distributed
monthly. Dividends for the three Money Market Funds are declared daily and
distributed monthly. 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 are subject to the following schedule:
Average Daily Net Annual Rate Expense Limit
Fee Schedule Assets of Fund Percentage(%) Percentage(%)
- - ------------ -------------- ------------- -------------
Janus Flexible Income Fund First $300 Million .65 1.00*
Over $300 Million .55
Janus Short-Term Bond Fund First $300 Million .65 .65*
Over $300 Million .55
Janus Intermediate First $300 Million .50 .65*
Government Securities Fund Over $300 Million .40
Janus Federal First $300 Million .60 .65*
Tax-Exempt Fund Over $300 Million .55
*Janus Capital will waive certain fees and expenses to the extent that total
expenses exceed the stated limits.
Janus Funds April 30, 1995 Semiannual Report
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Each of the Money Market Funds pays Janus Capital .20% of average daily net
assets as an investment advisory fee. In addition, each class of shares for each
Fund pays Janus Capital an administrative fee. This fee is .50% and .15% of
average daily net assets for the investor shares and institutional shares,
respectively. Janus Capital has voluntarily agreed to reduce its advisory fee
for the Janus Money Market Funds to .10%. In addition, Janus Capital has
voluntarily agreed to reduce the administrative fee on the institutional shares
to .05%. All other expenses of the Money Market Funds are paid by Janus Capital.
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 Service Corporation (Janus Service), a wholly owned subsidiary of
Janus Capital, receives an annual fee of $16 per shareholder account from each
Bond Fund for transfer agent services plus reimbursement of certain out of
pocket expenses.
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 through Janus Capital and Janus Service. Investors Fiduciary Trust
Company (IFTC), formerly 50% owned by DST, provides domestic custody services to
the Bond Funds. Net fees paid to DST and IFTC for the period ended April 30,
1995 are noted below.
DST Fees IFTC Fees
-------- ---------
Janus Flexible Income Fund $123,662 --
Janus Federal Tax-Exempt Fund 23,210 --
Janus Intermediate Government Securities Fund 30,781 2,839
Janus Short-Term Bond Fund 30,590 924
*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 year or 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. These carryovers expire on October 31, 2002, except
$1,369,785 of Janus Intermediate Government Securities Fund which expires on
October 31, 2001. 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 Net
Currency Capital Loss Federal Tax Unrealized Unrealized Appreciation/
Gains/(Losses) Carryovers Cost Appreciation (Depreciation) (Depreciation)
-------------- ---------- ---- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Janus Flexible Income Fund $ 35,783 $ 7,851,958 $458,514,839 $ 8,764,340 $ (3,271,798) 5,492,542
Janus Federal Tax-Exempt Fund -- 1,584,321 31,451,453 242,313 (421,503) (179,190)
Janus Intermediate Government
Securities Fund -- 3,878,713 34,692,451 373,099 (18,264) 354,835
Janus Short-Term Bond Fund (9,116) 1,624,391 46,813,376 458,908 (69,204) 389,704
</TABLE>
Janus Funds April 30, 1995 Semiannual Report
28
<PAGE>
THIS SPACE IS AVAILABLE FOR YOUR NOTES AND COMPUTATIONS
Janus Funds April 30, 1995 Semiannual Report
<PAGE>
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Janus Funds
100 Fillmore Street, Suite 300
Denver, Colorado 80206-4923
1-800-525-3713
Funds distributed by Janus Distributors, Inc. Member NASD.
