<PAGE>
TABLE OF CONTENTS
Our Message to You 2
Portfolio Manager's Commentary and Schedule of Investments
Janus Fund 3
Janus Balanced Fund 7
Janus Enterprise Fund 11
Janus Growth and Income Fund 14
Janus Mercury Fund 17
Janus Olympus Fund 21
Janus Overseas Fund 24
Janus Twenty Fund 29
Janus Venture Fund 32
Janus Worldwide Fund 37
Statements of Operations 42
Statements of Assets and Liabilities 42
Statements of Changes in Net Assets 44
Financial Highlights 46
Notes to Schedules of Investments 50
Notes to Financial Statements 51
<PAGE>
Performance Information
The following pages include performance overview graphs that
compare the performance of a $10,000 investment in each fund,
since its inception, to one or more widely used market indexes.
Each graph reflects the lifetime performance of the fund through
April 30, 1996.
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 in the index. They also do not include
taxes payable on dividends, interest payments, or operating
expenses necessary to maintain a portfolio investing in the
index.
Average annual total returns are quoted for each fund.
Average annual total return is calculated by taking the growth or
decline in value of an investment over a period of time,
including reinvestment of dividends and distributions, and then
calculating the annual compound percentage rate that would have
produced the same result had the rate of growth been constant
throughout the period.
An Explanation of the Schedule of Investments
Following the Performance Overview is each fund's Schedule of
Investments. This schedule reports the industry concentrations
and the different types of securities held in the fund's
portfolio on the last day of the reporting period. Securities are
usually listed by type (common stocks, corporate bonds, U.S.
government obligations, etc.) and by industry classification
(banking, communications, insurance, etc.).
The market value of each security represents its value on the
last day of the reporting period. The value of securities
denominated in foreign currencies is converted into U.S. dollars.
Funds that invest in foreign securities also provide a summary of
investments by country. This summary reports the fund's exposure
to different countries by indicating the percentage of securities
invested in each country.
An Explanation of the Forward Foreign Currency Contract Table
A table listing forward foreign currency contracts follows
each fund's Schedule of Investments (if applicable). Forward
foreign currency contracts are 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.
2
<PAGE>
The table provides the name of the foreign currency, the
settlement date of the contract, the amount of the contract, 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.
OUR MESSAGE TO YOU
Dear Shareholders:
After unusually smooth sailing in 1995, the stock market
encountered rougher weather in early February. The primary cause
was the rise in interest rates, which moved higher in January in
anticipation of a rebound in the general economy. On a historical
basis, the reaction of the equities markets was relatively mild.
Stocks performed well until February, when large-capitalization
stocks weakened while small- and mid-capitalization stocks surged
into record territory. The Standard & Poor's 500 Stock Index (the
S&P 500 Index), an index of larger companies, had a total return
of 13.76% for the six months ended April 30, while the Russell
2000, an index of small stocks, gained 18.47%. The S&P 400 Stock
Index, which measures the performance of mid-capitalization
stocks, appreciated 13.88%.
The Economy is Healthy. Even though gross domestic product in
the first calendar quarter of 1996 came in at an annual rate of
2.8%, up from a weak 0.5% in the fourth quarter of 1995, growth
was still relatively moderate. As of mid-May, signs of inflation
were limited primarily to the commodities markets, and industrial
production and auto sales were both weak. Overall, U.S. business
is streamlined and globally competitive. Corporate earnings have
slowed, but only from the record levels of the past three years.
Although a divergence between stock and bond prices (stocks
are high and bonds are still low) has made some investors
cautious, a similar divergence occurred at the end of 1994 and
was resolved positively. Bonds declined for much of 1994, while
stocks held their own. The bonds began to rally again and set the
stage for the excellent market returns of 1995.
All things considered, the environment for stocks remains
positive.
INTERNATIONAL MARKETS
Many Kept Pace with the U.S. Measured in U.S. dollars, the
Morgan Stanley EAFE Index (EAFE stands for Europe, Australasia,
and the Far East) gained 13.21% for the six month period, with
net dividends reinvested.(1) Neither the U.S. market nor the
emerging markets of Latin America and Eastern Europe are
3
<PAGE>
represented in EAFE. EAFE's respectable performance masked even
better results from many of its individual components, including
the UK, France, Germany, Indonesia, Japan, and the Netherlands,
where Janus Funds have substantial investments. A number of these
markets hit new highs. The stronger dollar also continued to help
the export outlook in many regions: the more the dollar is worth,
the more expensive (and less competitive) U.S. goods are
overseas. European markets performed well largely because
interest rates declined in the face of slow growth. In Latin
America and the Far East growth began to pick up - in countries
like Japan and Mexico it returned from very depressed levels -
and these markets responded to a brighter economic picture.
HOW OUR FUNDS PERFORMED
On the whole, Janus Funds had an excellent six months.
Predictable earnings are at the core of our investment strategy,
and the uncertain earnings outlook increased demand for quality
growth stocks with consistent earnings and revenue streams.
The following rankings are from Lipper Analytical Services,
the large mutual fund rating service, for the twelve months ended
April 30, 1996.(2)
Fund Lipper Fund Category Lipper Ranking Percentile
Janus Overseas Fund International 2 of 281 1%
Janus Worldwide Fund Global 10 of 133 8%
Janus Growth and Income Fund Growth and Income 51 of 479 11%
Janus Mercury Fund Capital Appreciation 75 of 596 13%
Janus Enterprise Fund Mid Cap 24 of 126 19%
Janus Balanced Fund Balanced 46 of 241 19%
JANUS EQUITY INCOME FUND
Janus Equity Income Fund is our latest fund offering and will
open June 28, 1996. The Fund is part of our ongoing effort to
provide a broad and useful array of financial products to
investors.
Janus Equity Income Fund is diversified. The Fund is intended
to be less volatile than the general market and will focus on
well-run companies that produce substantial excess cash that is
likely to be returned to shareholders through either dividends or
significant share repurchase programs. The Fund will be managed
by Blaine Rollins, who also oversees Janus Balanced Fund. We
believe Blaine will bring exceptional dedication and discipline
to the management of Janus Equity Income Fund.(3)
4
<PAGE>
We appreciate your investment with Janus.
Thomas H. Bailey
Chairman
(1) Net dividends are those dividends that remain to be
reinvested after foreign tax obligations have been met. Tax
obligations vary from country to country.
(2) Past performance is no guarantee of future results. Lipper
rankings are based on total return, including reinvested
dividends and capital gains. For a description of Lipper
categories please see the individual Fund letters.
(3) For a prospectus containing more complete information,
including expenses, please call a Janus Investor Service
Representative at 1-800-525-3713. Read the prospectus carefully
before you invest or send money.
JANUS FUND Portfolio Manager, James P. Craig
PERFORMANCE REVIEW
The Janus Fund appreciated 12.95% for the six months ended
April 30, 1996, versus a gain of 13.76% for the S&P 500 Index.
Both returns include reinvested dividends.
The Fund slightly trailed the S&P Index for the six-month
period, although our investments in large, quality growth stocks
were rewarded. But returns were held back when we took losses on
the last of our paper stocks, and on Texas Instruments and Glaxo
Holdings. SAP, a German developer of integrated business
software, was also down.
On the plus side, the companies we favor, those with more
predictable long-term earnings than the general equity universe,
received a better premium when corporate earnings slowed - after
three terrific years - and the outlook for economic growth became
uncertain. Many of our holdings reported strong profits, and the
market was willing to pay up for more consistent earnings
streams.
Our investments in companies with significant share
repurchase plans also contributed to Fund performance. More
investors recognized the effectiveness of stock repurchase in
creating shareholder value. And finally, our growth stocks
benefited from the break in the technology sector. Monies flowed
away from technology and were put to work in less volatile areas.
5
<PAGE>
THE PORTFOLIO
Equity holdings increased from 90.5% when the period began to
95.1% on April 30. The Fund's ten largest positions made up 36.5%
of assets on April 30, versus 34.6% at the end of October 1995.
Approximately 16.0% of the portfolio was invested abroad,
compared to 19.0% when the fiscal year began.
Ten Largest Holdings April 30, 1996 October 31, 1995
General Motors E (EDS) 5.1% 4.8%
First Data Corp. 5.1% 5.0%
Wells Fargo 4.5% -
Citicorp 4.2% 4.0%
IBM 3.7% -
Cisco Systems 3.0% -
Bank of New York 2.9% 2.2%
Roche Holdings 2.8% 3.6%
SAP AG 2.6% 3.5%
UNUM 2.6% 2.6%
Top Five Industries April 30, 1996 October 31, 1995
Pharmaceuticals 11.6% 12.3%
Financial - Bank Money Center 8.0% 6.6%
Services - Computer Processing 8.0% 11.2%
Chemicals 6.6% 2.4%
Aerospace and Defense 5.9% 3.1%
PORTFOLIO THEMES
Share Repurchase. This is a theme we have discussed
frequently. Companies with excess cash flow - more money than
they can prudently invest - are buying back and retiring stock.
We believe stock repurchase programs are often a better means of
returning value to shareholders than dividends, which are
taxable. Repurchasing stock increases the value of each remaining
share and can also help stabilize the stock price by creating a
consistent source of demand. Citicorp, Hercules, Wells Fargo,
First Data, United Technologies, Xerox, and McDonnell Douglas all
have stock repurchase programs.
Banking. Better operating discipline and a focus on niche,
high-profit businesses continue to spark our interest in Citicorp
and Bank of New York. Wells Fargo, which recently acquired First
Interstate, was added because the combination will unite one of
the premier commercial and consumer lenders in California (Wells
Fargo) with one of the premier deposit gatherers (First
Interstate). Wells Fargo has been extremely innovative in
developing low-cost banking services, including branches in
supermarkets and an extensive electronic banking system. Post-
6
<PAGE>
acquisition, Wells Fargo will have both a lower cost-of-funds for
its loan accounts and a more efficient administrative cost
structure.
Business Services - Outsourcing. Using outside specialists to
perform functions such as data processing, computer operations,
and personnel is a trend we recognized early. EDS (formerly
General Motors E), First Data Corporation, Computer Sciences, and
NTT Data (in Japan) are data and information processors that have
developed market franchises. Alco Standard is a large provider of
copying equipment and services.
Technology. We took advantage of the breakdown in technology
prices to establish positions in several large equipment
companies that have built dominant franchises. Of special note is
Cisco Systems, the premier developer and marketer of equipment
that allows large networks to communicate. Cisco's revenues are
growing at 83% annually, with earnings growth of 67%. Operations
at Cisco are lean and very well-managed. The company has also
aggressively acquired other equipment manufacturers whose
products expand or complement its business.
Pharmaceuticals. We sold Astra and trimmed Pfizer, Merck, and
Roche. These stocks generated good gains, but we wanted to make
room for Eli Lilly, which has an exciting product line, including
drugs to treat schizophrenia and severe coronary disease.
GOING FORWARD
The surge in interest rates during the first four months of
1996 took away much of the tail wind that had been driving the
equities markets and created additional volatility. But as long
as inflation stays at low-impact levels and economic growth is
moderate, we should be able to generate good returns through
careful stock selection and by taking advantage of the
opportunities that fear and greed can create in a volatile market
environment.
Thank you for your investment in Janus Fund.
JANUS FUND Portfolio Manager, James P. Craig
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Fund and the S&P 500 Index. Janus
Fund is represented by a solid teal line. The S&P 500 Index is
represented by a single dashed black line. The "y" axis reflects
the value of the investment. The "x" axis reflects the
computation periods from inception, February 5, 1970, through
April 30, 1996. The upper right quadrant reflects the ending
7
<PAGE>
value of the hypothetical investment in Janus Fund ($577,842) as
compared to the S&P 500 Index ($211,620). There is a legend in
the upper left quadrant of the graph which indicates Janus Fund's
one-year, five-year, ten-year and since inception (February 5,
1970) average annual total returns as 29.33%, 14.62%, 15.09% and
16.71%, respectively.
*The Fund's inception date Source - Lipper Analytical
Services, Inc. 1996. 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.
The Fund's portfolio may differ significantly from the
securities in the index. The index is unmanaged and therefore
does not reflect the cost of portfolio management or trading.
JANUS FUND April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 92.5%
Aerospace and Defense - 5.9%
3,861,875 Boeing Co. $317,156,484
1,772,275 General Motors Corp. - Class H 108,330,309
666,825 Lockheed Martin Corp. 53,762,766
624,700 McDonnell Douglas Corp. 60,283,550
2,655,100 United Technologies Corp. 293,388,550
832,921,659
Auto and Truck - 2.5%
4,744,450 General Motors Corp. 257,386,413
4,210,000 Honda Motor Co.** 95,827,619
353,214,032
8
<PAGE>
Beverages - 0.9%
1,011,600 Coca-Cola Femsa S.A. (ADR) 27,186,750
2,275,450 Panamerican Beverages, Inc. -
Class A (ADR)# 99,835,369
127,022,119
Broadcasting, Radio and Television - 0.1%
454,825 Heritage Media Corp. - Class A* 17,453,909
Chemicals - 6.6%
1,166,200 Cytec Industries, Inc.*,# 96,648,825
3,863,475 Grace (W.R.) & Co. 299,419,313
4,583,025 Hercules, Inc. 277,273,013
200,000 Hoechst A.G.** 67,389,883
280,000 Monsanto Co. 42,420,000
385,000 Olin Corp. 34,072,500
747,350 Praxair, Inc. 28,866,394
2,065,800 Witco Corp. 70,495,425
916,585,353
Commercial Services - 2.2%
2,175,575 Manpower, Inc. 80,496,275
438,000 Medaphis Corp.* 20,202,750
505,000 Olsten Corp. 15,339,375
1,676,125 Omnicare, Inc.# 100,567,500
1,622,925 Robert Half International,
Inc.*,# 93,318,188
309,924,088
9
<PAGE>
Computers - 4.0%
4,820,200 IBM Corp. 518,171,500
649,500 Telxon Corp. 14,938,500
1,165,000 Wang Laboratories, Inc.* 27,595,930
560,705,930
Computers - Peripheral Equipment - 3.0%
8,119,225 Cisco Systems, Inc.* 421,184,797
Cosmetics and Personal Care - 0.2%
438,000 Gillette Co. 23,652,000
Electrical Equipmemt - 0.4%
474,900 C-Cube Microsystems, Inc.* 23,507,550
459,275 UCAR International, Inc.* 18,830,275
500,000 Westinghouse Electric Corp. 9,437,500
51,775,325
Electronics - 0.7%
585,300 Hewlett-Packard Co. 61,968,638
919,000 Sundstrand Corp. 33,773,250
95,741,888
Environmental Services - 0%
778,280 Rentokil Group PLC** 4,503,517
Financial - Bank Commercial - 5.6%
288,188 Banco Popular Espanol S.A. 47,744,443
2,484,325 First Chicago NBD Corp. 102,478,406
2,617,900 Wells Fargo & Co. 635,167,989
785,390,838
10
<PAGE>
Financial - Bank Money Center - 8.0%
8,482,200 Bank of New York Co., Inc. 411,386,700
11,544,127 Barclays PLC** 128,033,419
7,407,475 Citicorp 583,338,656
1,122,758,775
Financial Services - 1.6%
7,278,375 Federal National Mortgage
Association 222,900,234
Food Processing - 1.5%
650,225 Campbell Soup Co. 40,639,062
2,203,500 Kellogg Co. 157,274,813
326,475 Nabisco Holdings Corp. - Class A 9,998,297
207,912,172
Furniture and Home Appliance - 0.2%
1,000,000 Singer Co. N.V. (The) 25,875,000
Household Products - 0.6%
1,118,225 Newell Co. 31,869,413
600,000 Proctor & Gamble Co. 50,700,000
82,569,413
Industrial Material - Special - 0.1%
567,400 Corning, Inc. 19,717,150
Insurance - Life - 2.9%
1,100,000 Conseco, Inc. 40,150,000
6,080,800 UNUM Corp.# 361,807,600
401,957,600
11
<PAGE>
Insurance - Multiline - 0.8%
1,860,000 Travelers Group, Inc. 114,390,000
Insurance - Property and Casualty - 0.1%
539,525 Risk Capital Holdings, Inc.* 10,723,059
Leisure Time - 0.2%
1,960,000 International Game Technology 30,380,000
Machine - Diversified - 0.3%
1,824,950 AGCO Corp.# 46,079,988
Medical - Biotechnology - 0.2%
517,925 Medtronic, Inc. 27,514,766
Medical - Hospital Management Services - 0.2%
684,425 HEALTHSOUTH Corp.* 25,409,278
Medical - Supplies - 0.8%
1,315,000 Baxter International, Inc. 58,188,750
916,150 Boston Scientific Corp.* 39,508,969
161,950 Luxottica Group S.p.A. (ADR)* 13,036,975
110,734,694
Mining - 0.4%
572,160 Freeport McMoRan, Inc. 20,883,864
856,975 Minerals Technologies, Inc. 32,993,538
53,877,402
Miscellaneous - Distribution and Wholesale - 1.2%
2,771,300 Cardinal Health, Inc.# 173,899,075
Miscellaneous - Manufacturing - 0.7%
1,513,550 AlliedSignal, Inc. 87,975,094
12
<PAGE>
200,000 Tyco International, Ltd. 7,725,000
95,700,094
Office and Business Equipment - 1.2%
304,575 Danka Business Systems PLC (ADR) 14,619,600
884,117 Oce-Van Der Grinten N.V.#,** 81,289,216
511,675 Xerox Corp. 74,960,388
170,869,204
Oil and Gas - Domestic - 0.2%
550,000 Ashland, Inc. 22,618,750
Oil and Gas - Exploration - 0.6%
1,419,100 Triton Energy Corp.* 78,050,500
Packaging and Containers - 0.2%
820,000 Sealed Air Corp.* 29,007,500
Pharmaceuticals - 11.6%
1,290,500 Centocor, Inc.* 51,620,000
29,497 Ciba-Geigy Corp. A.G. 33,992,119
4,687,300 Eli Lilly & Co. 276,550,700
920,400 Johnson & Johnson 85,137,000
455,000 McKesson Corp. 21,669,375
1,259,500 Merck & Co., Inc. 76,199,750
4,816,975 Pfizer, Inc. 331,769,153
50,437 Roche Holding A.G. 396,073,425
113,391 Sandoz A.G. - Class R 123,284,786
16,332,345 SmithKline Beecham PLC - Class A** 173,385,979
13
<PAGE>
934,750 SmithKline Beecham PLC -
Class A (ADR)** 50,476,500
1,620,158,787
Publishing - Newspaper - 0.6%
500,000 Hollinger International, Inc. 5,937,500
3,261,000 Reuters Holdings PLC** 36,953,286
532,825 Reuters Holdings PLC (ADS)** 36,032,291
78,923,077
Publishing and Printing - 2.8%
374,000 K-III Communications Corp.* 4,721,750
3,288,461 Wolters Kluwer N.V.#,** 359,561,439
1,206,800 World Color Press, Inc.* 28,963,200
393,246,389
Retail - Department Stores - 0.3%
4,597,800 Cifra S.A. de C.V. - Class C* 6,142,809
1,341,000 Credit Saison Co., Ltd.** 33,078,000
39,220,809
Retail - Special Line - 0.1%
716,275 General Nutrition Companies, Inc.* 13,967,363
Services - Computer Integrated Systems Design - 1.9%
3,375,550 Computer Sciences Corp.*,# 249,790,700
364,825 Parametric Technology Co.* 14,684,206
264,474,906
Services - Computer Processing and Data Preparation - 5.4%
9,450,105 First Data Corp. 718,207,980
487,000 SunGard Data Systems, Inc.* 16,192,750
14
<PAGE>
135,910 SAP A.G.** 17,630,463
752,031,193
Services - Computer Programming and Data Processing - 5.1%
12,742,375 General Motors Corp. - Class E 718,351,391
Services - Hotels and Motels - 0.9%
3,441,725 Circus Circus Enterprises, Inc.* 126,483,394
Services - Prepackaged Software - 1.4%
2,159,825 Computer Associates
International, Inc. 158,477,159
1,267 NTT Data Communications
Systems Corp.** 44,164,000
202,641,159
Telecommunications - 1.7%
850,000 360 Degree Communications Co.* 19,975,000
3,190,575 Paging Network, Inc.* 74,978,513
4,124,350 MFS Communications Co., Inc.* 143,062,807
238,016,320
Textiles - 0.1%
272,050 Cintas Corp. 14,622,688
Toys - 0.9%
4,809,026 Mattel, Inc. 125,034,683
Transportation - Airlines - 1.6%
2,540,175 AMR Corp.* 226,710,619
Transportation - Railroad - 2.0%
3,150,350 Burlington Northern Santa Fe Corp. 275,655,625
15
<PAGE>
Utilities - Telecommunications - 0.5%
820,000 Cincinnati Bell, Inc. 40,385,000
1,000,000 MCI Communications Corp. 29,437,500
69,822,500
Wholesale - Special Line - 1.5%
3,609,450 Alco Standard Corp. 208,896,919
Total Common Stock (cost $9,971,204,169) 12,941,277,931
Preferred Stock - 2.6%
Services - Computer Processing and Data Preparation - 2.6%
2,774,953 SAP A.G.** (cost $234,251,882) 368,675,954
U.S. Government Agencies - 2.9%
Federal Home Loan Bank System
$25,000,000 5.15%, 5/8/96 24,974,965
Federal Home Loan Mortgage Corp.:
23,100,000 5.30%, 5/1/96 23,100,000
50,000,000 5.19%, 5/2/96 49,992,792
50,000,000 5.17%, 5/17/96 49,885,111
50,000,000 5.17%, 5/20/96 49,863,569
25,000,000 5.17%, 5/31/96 24,892,292
50,000,000 5.19%, 6/11/96 49,704,458
25,000,000 5.18%, 7/1/96 24,780,570
50,000,000 5.16%, 7/8/96 49,512,667
Federal National Mortgage Association
50,000,000 5.17%, 7/30/96 49,353,750
16
<PAGE>
Total U.S. Government Agencies (cost $396,060,174) 396,060,174
Money Market - 0%
2,500,000 Janus Government Money Market Fund, 5.30%
(cost $2,500,000) 2,500,000
Short-Term Corporate Notes - 1.4%
Household Finance Corp.
50,000,000 5.30%, 5/1/96 50,000,000
J.P. Morgan and Co.:
50,000,000 5.30%, 5/16/96 49,889,583
50,000,000 5.24%, 5/22/96 49,847,167
Wal-Mart Stores, Inc.
50,000,000 5.22%, 5/13/96 49,913,000
Total Short-Term Corporate Notes
(amortized cost $199,649,750) 199,649,750
Time Deposit - 0.3%
First Union National Bank of North Carolina
42,500,000 5.31%, 5/1/96 (amortized
cost $42,500,000) 42,500,000
Total Investments - 99.7% (total cost
$10,846,165,975) 13,950,663,809
Cash, Receivables, and Other Assets, net of Liabilities -
0.3% 46,739,255
Net Assets - 100% $13,997,403,064
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Germany 3.2% $ 453,696,301
Italy 0.1% 13,036,975
Japan 1.2% 173,069,619
Mexico 1.0% 133,164,928
17
<PAGE>
Netherlands 3.2% 440,850,655
Spain 0.3% 47,744,443
Switzerland 4.0% 553,350,332
United Kingdom 3.2% 444,004,593
United States+ 83.8% 11,691,745,963
Total 100.0% $13,950,663,809
+Includes Short-Term Securities (79.2% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
British Pound 8/22/96 83,000,000 $124,881,800 $ 2,356,370
Dutch Guilder 6/13/96 500,000,000 292,860,071 18,773,198
German Deutschemark
6/13/96 550,000,000 360,041,896 23,407,054
Japanese Yen 5/23/96 1,400,000,000 13,328,687 52,628
Japanese Yen 6/28/96 2,000,000,000 19,041,925 (44,062)
$810,154,379 $44,545,188
JANUS BALANCED FUND Portfolio Manager, Blaine P. Rollins
PORTFOLIO PERFORMANCE
The Janus Balanced Fund returned 10.32%, with dividends
reinvested, during the first six months of our fiscal year ended
April 30, 1996, versus a return of 13.76% for the S&P 500 Index.
We are changing our fixed-income benchmark index from the
Lehman Brothers Long Government/Corporate Bond Index to the
Lehman Brothers Government/Corporate Bond Index, which has a
shorter weighted average maturity than the longer Lehman Index
and is more representative of the maturities the portfolio has
held in the past and is likely to hold in the future. We will
18
<PAGE>
report the results for both Lehman Indexes for the rest of the
fiscal year, as required by Securities and Exchange Commission
regulations.
For the six-month period, the Lehman Brothers Long
Government/Corporate Bond Index declined 2.79% and the Lehman
Brothers Government/Corporate Index was basically unchanged, up
0.04%. All returns include reinvested dividends.
For the 12 months ended April 30, Janus Balanced Fund was
ranked 46th out of the 241 balanced funds (top 19%) ranked by
Lipper Analytical Services, a mutual fund rating company.(1)
My greatest challenge since taking over management of the
Fund on January 1, was responding to sharply higher interest
rates. Five-year fixed-income securities, where we held
significant positions, experienced difficult going, even though
yields in this area remained very competitive with long bonds.
The equity sector of the portfolio performed well during the
period, despite the market's increased volatility. The general
uncertainty over corporate earnings strength caused investors to
put a higher premium on many of the stable growth stocks we own,
whose earnings tend to be more predictable than most companies in
the broad market.
THE PORTFOLIO
Fixed-Income. As of April 30, the fixed-income portion of the
Fund was roughly 43% of assets, versus 48% at the end of October
1995, and had a weighted average maturity of approximately 7.5
years.
Fixed-Income Holdings April 30, 1996 October 31, 1995
Cash & Cash Equivalents 1.7% 2.8%
Convertible Bonds 0.9% 1.4%
U.S. Corporate Bonds 18.9% 28.7%
Foreign Corporate Bonds 2.6% 0.8%
Government Bonds 18.9% 10.9%
Government bonds were increased when the difference in yield,
or spread, between governments and investment-grade corporate
bonds narrowed, making the lower-risk government securities more
competitive. Maturities were shortened in order to lower
portfolio volatility in an uncertain rate environment. Although
investment-grade corporate bonds were reduced, our high-
yield/high-risk (junk) holdings increased moderately to 4% (from
1%), with companies such as Heritage Media and First Nationwide.
These are names we know well from both our equity and fixed-
19
<PAGE>
income research. We also picked up additional yield from our
German and Canadian bonds.
Equities. The equity portion of the portfolio increased to
57% of assets on April 30, versus 51.7% at the end of October
1995. The largest ten positions accounted for 23.4% of the
portfolio.
Ten Largest Holdings April 30, 1996 October 31, 1995
Wells Fargo 3.5% -
First Data Corp. 2.9% 3.0%
Robert Half International 2.6% 2.8%
UNUM 2.4% 2.0%
Kellogg Co. 2.3% 1.8%
Bank of New York 2.2% 1.0%
Citicorp 2.1% 2.3%
IBM 2.0% -
SAP AG 1.8% 3.7%
General Motors E (EDS) 1.6% 3.6%
Top Five Industries April 30, 1996 October 31, 1995
Financial - Bank Money Center 5.0% 3.3%
Financial - Bank Commercial 4.8% 3.0%
Insurance - Life 4.7% 2.0%
Aerospace and Defense 4.4% 2.4%
Commercial Services 4.1% 2.8%
EQUITY PORTFOLIO THEMES
Stock Repurchase. We continue to favor companies that
generate exceptional profits and return excess cash to
shareholders in the form of dividends, or better yet, by
repurchasing the company's stock. Wells Fargo, Citicorp, Kellogg,
Bank of New York, and EDS are all well-run companies pursuing
this strategy.
Banking. The synergies created by recent acquisitions should
provide Wells Fargo and First Chicago NBD with exceptional growth
rates. Bank of New York is taking market share in the securities
processing business, and Citicorp has a powerful international
franchise that is driving growth.
Business Services - Outsourcing. EDS, First Data, Computer
Sciences, and Robert Half International are benefiting from the
outsourcing phenomenon. Robert Half is an extremely well-managed
company that is growing revenues at 30% plus. It has targeted the
high-end of the temporary personnel market and provides
professionals in accounting, legal, and computer operations.
20
<PAGE>
Margins are more than twice the industry standard and the company
is using excess cash to rapidly lower debt.
THE BALANCED STRATEGY
The uncertain outlook for interest rates is currently
dictating a conservative fixed-income strategy. Our growth stocks
should make progress, however, if inflation remains low and
economic growth is moderate. We are very excited about the good
companies we hold in the portfolio, and are also encouraged by
the compelling individual growth ideas our investment staff
continues to find.
Thank you for your investment in Janus Balanced Fund.
(1) A Balanced Fund is defined by Lipper Analytical Services as
one "whose primary objective is to conserve principal by
maintaining at all times a balanced portfolio of both stocks and
bonds. Typically, the stock/bond ratio ranges around 60%/40%."
This ranking is based on total return, including reinvestment of
dividends and capital gains, for the stated period. Past
performance is not predictive of future results.
JANUS BALANCED FUND Portfolio Manager, Blaine P. Rollins
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Balanced Fund and the S&P 500 Index,
the Lehman Brothers Long Gov't./Corporate Bond Index and the
Lehman Brothers Gov't./Corporate Bond Index. Janus Balanced Fund
is represented by a solid teal line. The S&P 500 Index is
represented by a single dashed black line. The Lehman Brothers
Long Gov't./Corporate Bond Index is represented by a dark grey
dashed line. The Lehman Brothers Gov't./Corporate Bond Index is
represented by a light grey dashed 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, 1996. The upper right quadrant reflects the ending
value of the hypothetical investment in Janus Balanced Fund
($16,421) as compared to the S&P 500 Index ($17,422), the Lehman
Brothers Long Gov't./Corporate Bond Index ($13,290) and the
Lehman Brothers Gov't./Corporate Bond Index ($12,570). There is
a legend in the upper left quadrant of the graph which indicates
Janus Balanced Fund's one-year and since inception (September 1,
1992) average annual total returns as 22.87% and 14.48%,
respectively.
*The Fund's inception date Source - Lipper Analytical
Services, Inc. 1996. All returns reflect reinvested dividends.
21
<PAGE>
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.
The Fund's portfolio may differ significantly from the
securities in the index. The index is unmanaged and therefore
does not reflect the cost of portfolio management or trading.
JANUS BALANCED FUND
April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 55.2%
Aerospace and Defense - 2.8%
26,625 Boeing Co. $2,186,578
21,625 General Motors Corp. - Class H 1,321,828
7,425 United Technologies Corp. 820,463
4,328,869
Broadcasting, Radio and Television - 0.7%
27,125 Heritage Media Corp. - Class A* 1,040,922
Business Credit - 0.1%
5,025 First USA Paymentech, Inc.* 218,588
Chemicals - 2.2%
23,850 Grace (W.R.) & Co. 1,848,375
45,125 Witco Corp. 1,539,891
3,388,266
Commercial Services - 4.1%
64,025 Primark Corp.* 2,272,888
22
<PAGE>
69,975 Robert Half International, Inc.* 4,023,563
6,296,451
Computers - 2.0%
28,825 IBM Corp. 3,098,688
Electronics - 1.7%
39,300 Dionex Corp.* 1,439,363
24,225 Pittway Corp. - Class A 1,156,744
2,596,107
Financial - Bank Commercial - 4.8%
3,173 Banco Popular Espanol S.A. 525,674
17,550 First Chicago NBD Corp. 723,938
11,600 Star Banc Corp. 764,150
21,882 Wells Fargo & Co. 5,309,356
7,323,118
Financial - Bank Money Center - 5.0%
70,600 Bank of New York Co., Inc. 3,424,100
86,781 Barclays PLC** 962,469
40,425 Citicorp 3,183,469
7,570,038
Financial - Savings/Loan/Thrift - 2.1%
46,475 First Savings Bank of
Washington Bancorp, Inc. 702,934
29,675 HFNC Financial Corp.* 415,450
147,625 Klamath First Bancorp, Inc. 2,029,844
3,148,228
23
<PAGE>
Food Processing - 3.1%
18,800 Campbell Soup Co. 1,175,000
49,875 Kellogg Co. 3,559,828
4,734,828
Insurance - Life - 4.7%
23,100 Conseco, Inc. 843,150
78,350 Delphi Financial Group - Class A* 2,154,625
22,575 United Insurance Co. 476,897
62,600 UNUM Corp. 3,724,700
7,199,372
Insurance - Multiline - 0.6%
16,050 Foremost Corp. of America 858,675
Leisure Time - 0.6%
9,300 Coleman Co., Inc.* 426,638
32,525 International Game Technology 504,138
930,776
Medical - Supplies - 1.2%
16,300 Baxter International, Inc. 721,275
13,075 Luxottica Group S.p.A. (ADR)* 1,052,538
1,773,813
Mining - 0.8%
33,300 Minerals Technologies, Inc. 1,282,050
Miscellaneous - Business Credit - 0.3%
12,475 AT&T Capital Corp. 484,966
24
<PAGE>
Miscellaneous - Distribution and Wholesale - 1.1%
26,250 Cardinal Health, Inc. 1,647,188
Miscellaneous - Manufacturing - 0.5%
16,925 Millipore Corp. 708,734
Oil and Gas - Domestic - 0.5%
13,975 Tenneco, Inc. 766,878
Packaging and Containers - 0.3%
14,500 Sealed Air Corp.* 512,938
Pharmaceuticals - 2.9%
17,200 Centocor, Inc.* 688,000
26,050 Eli Lilly & Co. 1,536,950
125 Roche Holding A.G. 981,604
24,050 SmithKline Beecham PLC -
Class A (ADR)** 1,298,700
4,505,254
Publishing - Newspaper - 0.5%
11,275 Reuters Holdings PLC (ADS)** 762,472
Publishing and Printing - 2.6%
35,425 Harland (John H.) Co. 929,906
20,000 Wolters Kluwer N.V.** 2,186,806
32,925 World Color Press, Inc.* 790,200
3,906,912
Real Estate Investment Trust - 1.0%
64,275 Redwood Trust, Inc. 1,494,394
25
<PAGE>
Retail - Special Line - 0.3%
73,570 Pagnossin S.p.A.* 447,685
Services - Business Services - 0.2%
8,450 Sykes Enterprises, Inc. 299,975
Services - Computer Integrated Systems Design - 1.0%
21,100 Computer Sciences Corp.* 1,561,400
Services - Computer Processing and Data Preparation - 3.5%
58,720 First Data Corp. 4,462,720
25,250 SunGard Data Systems, Inc.* 839,563
5,302,283
Services - Computer Programming and Data Processing - 1.6%
43,050 General Motors Corp. - Class E 2,426,944
Telecommunications Equipment - 0.5%
23,200 United States Satellite
Broadcasting Co., Inc.* 794,600
Textiles - 0.3%
11,650 Mossimo, Inc.* 442,700
Transportation - Railroad - 0.5%
9,300 Burlington Northern Santa Fe Corp. 813,750
Utilities - Telecommunications - 0.3%
9,675 Cincinnati Bell, Inc. 476,494
26
<PAGE>
Wholesale - Special Line - 0.8%
21,425 Alco Standard Corp. 1,239,972
Total Common Stock (cost $70,854,250) 84,384,328
Preferred Stock - 1.8%
Services - Computer Processing and Data Preparation - 1.8%
SAP A.G.** (cost $2,209,011) 2,689,055
Corporate Bonds - 19.8%
Aerospace and Defense - 1.6%
$2,430,000 International Lease Finance Corp., 7.50%
notes, due 3/1/99 $ 2,487,713
Broadcasting, Radio and Television - 0.9%
1,500,000 Heritage Media Corp., 8.75%
senior subordinated
notes, due 2/15/06 1,432,500
Captive Finance - 1.9%
3,000,000 General Motors Acceptance Corp., 7.40%
debentures, due 9/1/25 2,846,250
Computers - 3.2%
5,000,000 IBM Corp., 6.375%
notes, due 6/15/00 4,943,750
Financial - Savings/Loan/Thrift - 1.3%
2,000,000 First Nationwide Holdings, Inc., 9.125%
senior subordinated notes,
due 1/15/03+ 1,950,000
Leisure Time - 0.9%
3,610,000 Coleman Worldwide Corp., zero coupon
convertible liquid yield option notes,
due 5/27/13 1,286,063
27
<PAGE>
Medical - Supplies - 1.6%
2,430,000 Dade International, Inc., 11.125%
senior subordinated notes, due
5/1/06+ 2,473,318
Personal Credit - 1.9%
3,000,000 Household International Netherlands B.V., 6.00%
senior notes, due 3/15/99 2,947,500
Restaurants and Food Services - 3.0%
5,100,000 Wendy's International, Inc., 7.00%
debentures, due 12/15/25 4,577,250
Services - Hotels and Motels - 1.3%
2,220,000 Circus Circus Enterprise, Inc., 6.45%
senior notes, due 2/1/06 2,050,725
Services - Motion Picture and Video Tape Production - 2.2%
3,400,000 Walt Disney Co. (The), 6.375%
notes, due 3/30/01 3,349,000
Total Corporate Bonds (cost $31,189,040) 30,344,069
Foreign Bonds - 2.6%
CAD 3,500,000 Canadian Government Obligation, 8.75%
debentures, due 12/1/05 2,733,285
DEM 2,000,000 Deutschland Republic, 6.25%
notes, due 1/4/24** 1,176,055
Total Foreign Bonds (cost $4,106,875) 3,909,340
U.S. Government Agency - 1.1%
Federal Home Loan Mortgage Corp.
1,700,000 5.30%, 5/1/96 (amortized
cost $1,700,000) 1,700,000
U.S. Government Obligations - 18.9%
U.S. Treasury Notes:
5,000,000 5.00%, 1/31/98 4,915,200
4,000,000 5.125%, 2/28/98 3,936,560
28
<PAGE>
6,950,000 5.50%, 11/15/98 6,840,260
5,150,000 5.75%, 10/31/00 5,017,542
8,500,000 5.625%, 11/30/00 8,235,990
Total U.S. Government Obligations (cost $29,456,740) 28,945,552
Total Investments - 99.4% (total cost $139,515,916) 151,972,344
Cash, Receivables and Other Assets, net of
Liabilities - 0.6% 941,151
Net Assets - 100% $152,913,495
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Canada 1.8% $ 2,733,285
Germany 2.5% 3,865,110
Italy 1.0% 1,500,223
Netherlands 1.4% 2,186,806
Spain 0.4% 525,674
Switzerland 0.6% 981,604
United Kingdom 2.0% 3,023,641
United States+ 90.3% 137,156,001
Total 100.0% $151,972,344
+Includes Short-Term Securities (89.2% excluding Short-Term
Securities)
29
<PAGE>
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain
British Pound
8/22/96 250,000 $ 376,150 $ 7,097
Dutch Guilder
6/13/96 2,000,000 1,171,440 75,093
German Deutschemark
6/13/96 3,475,000 2,274,810 147,890
German Deutschemark
7/30/96 1,750,000 1,149,199 5,574
$4,971,599 $235,654
JANUS ENTERPRISE FUND Portfolio Manager,
James P. Goff
PERFORMANCE REVIEW
For the first half of our fiscal year ended April 30, 1996,
Janus Enterprise Fund was up 21.80%, with dividends reinvested.
We are changing the benchmark Index for the Fund from the S&P 500
Index to the S&P 400 Mid-Cap Index, which better reflects the
securities the Fund holds. We will continue to quote both Indexes
until fiscal year end, however, in keeping with Securities and
Exchange Commission regulations.
The S&P 400 Mid-Cap Index gained 13.88% for the six months,
while the S&P 500 appreciated 13.76%, both with dividends
reinvested.
For the 12 months ended April 30, the Fund's total return
ranked 24th out of 126 mid-cap funds (top 19%) tracked by Lipper
Analytical Services, a mutual fund rating company.(1)
Good stock selection was the reason the Fund outdistanced the
Indexes. Our eclectic, stock-by-stock investment approach has
produced a diverse array of high-growth, well-managed companies.
Hotel franchisor HFS, British pub chain J.D. Wetherspoon,
PriCellular, Family Golf Centers, Profit Recovery Group, Global
Direct Mail, and Medaphis were among the standouts. These stocks,
among others, gained 30%-60% in the last six months. We are not
afraid to take concentrated positions in our best ideas, and this
strategy, though relatively aggressive, bolstered returns. It did
30
<PAGE>
not hurt, either, that in general small- and mid-cap stocks
registered excellent gains for the period, especially in the last
two months.
Earlier in 1996, however, the market was beleaguered by
rising interest rates. The upturn in rates was significant, and
we briefly hedged the Fund with S&P futures contracts to shelter
the portfolio from increasing market volatility. The hedge was
removed at a modest profit.
Positions that did not work during the first half included
World Acceptance Corporation and APS Holdings. We also sold the
last of our Exide position at a loss.
PORTFOLIO COMPOSITION
As of April 30, the portfolio was 97% invested in equities,
versus 99% when the fiscal year began. Foreign securities
accounted for 10.7% of holdings, up from 7.4% at the end of
October 1995, and are mostly in Europe. The ten largest positions
were 43.7% of assets, reflecting the Fund's concentrated
portfolio strategy.
Ten Largest Holdings April 30, 1996 October 31, 1995
Paging Network Inc. 7.5% 8.1%
HFS, Inc. 6.7% 7.3%
Insignia Financial Group 5.4% 4.7%
J.D. Wetherspoon 4.6% 3.7%
Petco Animal Supplies 4.3% 2.5%
Minerals Technologies 3.5% 5.0%
Wisconsin Central 3.4% 2.3%
Trigen Energy 3.1% 3.4%
Papa John's International 3.0% 1.3%
Lone Star Steakhouse 2.2% 1.0%
Top Five Industries April 30, 1996 October 31, 1995
Telecommunications 17.2% 11.8%
Restaurants and Food
Services 11.5% 6.0%
Commercial Services 9.6% 7.3%
Retail - Special Line 7.7% 8.9%
Lodging 6.7% 7.3%
PORTFOLIO THEMES
Wireless Communications. Strong demand for cellular and
paging services, in rural as well as urban areas, is driving
earnings at Paging Network, Arch Communications, CommNet
Cellular, PriCellular, and new holding 360 Degree Communications.
31
<PAGE>
The last three companies focus on rural communications and are
largely immunized from PCS (Personal Communications Systems)
competition by urban servicers, who must concentrate on areas
with greater population density.
Business Services - Outsourcing. Contracting with outside
vendors to perform data processing and other specialized
functions is a booming business and cuts across a variety of
industries. First Data in credit card transaction processing,
Medaphis in accounting and billing functions, Accustaff in
personnel, and Trigen Energy in industrial power are all
beneficiaries of this trend. Profit Recovery Group, a new
addition, audits receivables and invoices to be sure companies
are receiving appropriate discounts and not otherwise overpaying
vendors.
Pharmaceuticals. New drug delivery systems can increase the
convenience and efficacy of existing compounds while reducing
side effects. This has proven especially true in certain cancer
protocols. Although we reduced our position in R.P. Scherer, we
have significant holdings in TheraTech, Matrix Pharmaceuticals,
DepoTech, and QLT Phototherapeutics.
Diverse Retailers. J.D. Wetherspoon, General Nutrition
Companies, Petco, and Papa John's are well-managed niche
retailers. Papa John's delivers pizzas, and has distinguished
itself from the crowd by keeping the menu simple and the quality
consistent. The result: a loyal following and good repeat
business.
PORTFOLIO STRATEGY
Although the rise in interest rates has introduced additional
volatility into the stock market, we are still finding exciting
individual companies that can grow their businesses at
exceptional rates and whose shares are selling at attractive
prices relative to their growth rates. However, if interest rates
go up significantly from here, it will raise our valuation
hurdles and we may become more defensive. Going forward, we
intend to monitor the interest rate picture closely. But our
major focus is on building the portfolio with companies that are
able to capitalize on attractive opportunities for growth.
We appreciate your continued investment in Janus Enterprise
Fund.
(1) A Mid Cap fund is defined by Lipper Analytical Services
as one which "limits its investments to companies with average
market capitalizations and/or revenues between $800 million and
the average market capitalization of the Wilshire 4500 Index."
This ranking is based on total return, including reinvestment of
32
<PAGE>
dividends and capital gains for the stated period. Past
performance is not predictive of future results.
JANUS ENTERPRISE FUND Portfolio Manager, James P. Goff
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Enterprise Fund and the S&P 500 Index
and the S&P 400 MidCap Index. Janus Enterprise Fund is
represented by a solid teal line. The S&P 500 Index is
represented by a single dashed black line. The S&P 400 MidCap
Index is represented by a dark grey dashed 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, 1996. The upper right quadrant reflects the ending
value of the hypothetical investment in Janus Enterprise Fund
($23,513) as compared to the S&P 500 Index ($17,422) and the S&P
400 MidCap Index ($17,834). There is a legend in the upper left
quadrant of the graph which indicates Janus Enterprise Fund's
one-year and since inception (September 1, 1992) average annual
total returns as 45.68% and 26.26%, respectively.
*The Fund's inception date Source - Lipper Analytical
Services, Inc. 1996. 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.
The Fund's portfolio may differ significantly from the
securities in the index. The index is unmanaged and therefore
does not reflect the cost of portfolio management or trading.
JANUS ENTERPRISE FUND
April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 95.6%
Auto Parts - Replacement - 2.9%
1,000,000 APS Holding Corp. - Class A*,# $18,250,000
Commercial Services - 9.6%
226,825 AccuStaff, Inc.* 6,748,044
33
<PAGE>
607,000 CUC International, Inc.* 19,955,125
49,398 Grand Optical Photoservice 5,895,274
171,643 Loewen Group, Inc. 5,132,015
200,000 Medaphis Corp.* 9,225,000
36,450 Omnicare, Inc. 2,187,000
409,400 Profit Recovery Group
International, Inc. (The)* 8,136,825
600,712 Rentokil Group PLC** 3,475,952
60,755,235
Computers - Communications Equipment - 1.9%
600,000 Black Box Corp.* 12,000,000
Environmental Control - 0.9%
179,650 Culligan Water Technologies, Inc.* 6,063,188
Insurance - Life - 0.8%
154,225 Protective Life Corp. 5,359,319
Leisure Time - 4.2%
500,000 Family Golf Centers, Inc.*,# 14,250,000
26,667 Fotolabo S.A. 12,223,715
26,473,715
Lodging - 6.7%
825,450 HFS, Inc.* 42,407,494
Medical - Biotechnology - 1.6%
400,000 DepoTech Corp.* 9,800,000
Medical - Hospital Management Services - 0.5%
91,850 HEALTHSOUTH Corp.* 3,409,931
34
<PAGE>
Medical - Supplies - 0.9%
237,375 Exogen, Inc.* 2,077,031
143,275 Sybron International Corp.* 3,617,694
5,694,725
Mining - 3.5%
572,600 Minerals Technologies, Inc. 22,045,100
Miscellaneous - Distribution and Wholesale - 0.4%
43,750 Cardinal Health, Inc. 2,745,313
Miscellaneous - Manufacturing - 3.1%
1,000,000 Trigen Energy Corp.# 19,500,000
Packaging and Containers - 2.0%
350,000 Sealed Air Corp.* 12,381,250
Personal Credit - 1.3%
63,100 ADVANTA Corp. - Class B 3,162,888
500,000 World Acceptance Corp.* 4,937,500
8,100,388
Pharmaceuticals - 5.2%
400,000 Matrix Pharmaceutical, Inc.* 10,400,000
350,000 QLT Phototherapeutics, Inc.* 7,175,000
650,000 TheraTech, Inc.*,# 14,950,000
32,525,000
Real Estate - 5.4%
1,536,700 Insignia Financial Group,
Inc. - Class A*,# 33,807,400
35
<PAGE>
Restaurants and Food Services - 11.5%
330,000 Lone Star Steakhouse & Saloon, Inc.* 13,653,750
380,825 Papa John's International, Inc.* 18,779,433
2,143,103 PizzaExpress PLC** 11,270,752
2,172,841 Wetherspoon (J.D.) PLC+,#,** 28,977,152
72,681,087
Retail - Special Line - 7.7%
525,950 General Nutrition
Companies, Inc.* 10,256,025
200,650 Global DirectMail Corp.* 7,875,512
16,100 MSC Industrial Direct Co.,
Inc. - Class A* 585,638
76,100 O'Reilly Automotive, Inc.* 2,986,925
945,175 Petco Animal Supplies, Inc.*,# 27,173,781
48,877,881
Services - Computer Processing and Data Preparation - 2.4%
200,000 First Data Corp. 15,200,000
Services - Information Retainment Services - 0.6%
203,275 American Business Information, Inc.* 3,963,863
Telecommunications - 17.2%
377,225 360 Degree Communications Co.* 8,864,787
280,850 Arch Communications Group, Inc.* 6,670,187
575,525 CommNet Cellular, Inc.* 18,992,325
100,000 Millicom International
Cellular S.A.* 4,725,000
200,000 Omnipoint Corp.* 6,000,000
2,000,000 Paging Network, Inc.* 47,000,000
36
<PAGE>
1,250,000 PriCellular Corp. - Class A*,# 16,406,250
108,658,549
Transportation - Railroad - 3.4%
254,175 Wisconsin Central
Transportation Corp.* 21,477,788
Wholesale - Special Line - 1.9%
500,000 Barnett, Inc.* 11,750,000
Total Common Stock (cost $461,729,709) 603,927,226
Warrants - 1.4%
303,550 Littelfuse, Inc. - exp. 12/27/01*
(cost $4,579,749) 9,030,612
U.S. Government Agency - 1.9%
Federal Home Loan Mortgage Corp.
$11,600,000 5.30%, 5/1/96 (amortized
cost $11,600,000) 11,600,000
Total Investments - 98.9% (total cost
$477,909,458) 624,557,838
Cash, Receivables and Other Assets, net
of Liabilities - 1.1% 7,030,826
Net Assets - 100% $631,588,664
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Canada 0.8% $ 5,132,015
France 0.9% 5,895,274
Switzerland 2.0% 12,223,715
United Kingdom 7.0% 43,723,856
37
<PAGE>
United States+ 89.3% 557,582,978
Total 100.0% $624,557,838
+Includes Short-Term Securities (87.4% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain
British Pound 7/15/96 4,597,000 $ 6,919,864 $ 72,936
British Pound 10/1/96 7,000,000 10,527,300 120,400
$17,447,164 $193,336
JANUS GROWTH AND INCOME FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE REVIEW
Janus Growth and Income Fund returned 15.74% for the first
half of our fiscal year ended April 30, outperforming the S&P 500
Index, which gained 13.76%. Both returns include reinvested
dividends.
In the 12 months ended April 30, the Fund's total return
ranked 51st out of 479 funds (top 11%) in the Growth and Income
category of Lipper Analytical Services, the mutual fund rating
company.(1)
Janus Growth and Income Fund beat the Index because a number
of our long standing positions performed well. Among our best
performers during the first half were pharmaceutical stocks and
financial holdings, specifically Citicorp, Federal Home Loan
Mortgage Corporation, Wells Fargo, and Chase Manhattan. The last
two made significant acquisitions. Our food and beverage stocks -
Coca-Cola, PepsiCo, and McDonald's - also appreciated. The
portfolio's overachiever was Fila, the Italian athletic footwear
and apparel manufacturer, which gained 58%.
Though the portfolio is still configured fairly aggressively,
more toward growth than income, we are getting above-market
yields from American Express DECS, which may be converted into
First Data common stock, from Chase Manhattan and from Federal
National Mortgage Association.
38
<PAGE>
PORTFOLIO COMPOSITION
At the end of April, the portfolio was 91.9% invested in
stocks, versus 94% when the year began. Our commitment to the
equities market reflects both our continuing confidence in stocks
and the many individual opportunities our research is uncovering.
The percentage of foreign stocks was basically unchanged, at 9.2%
of assets, and were still mostly European. The ten largest
holdings accounted for 31.5% of assets. Stocks in the portfolio
numbered 60.
Ten Largest Holdings April 30, 1996 October 31, 1995
American Express DECS 4.1% 5.2%
Wells Fargo 3.9% 1.1%
Microsoft 3.1% -
Chase Manhattan 3.0% -
Merrill Lynch 3.0% 2.9%
Citicorp 3.0% 3.0%
Monsanto 2.9% -
Eli Lilly 2.9% -
Cytec Industries 2.8% -
Cisco Systems 2.8% -
Top Five Industries April 30, 1996 October 31, 1995
Pharmaceuticals 13.7% 10.5%
Financial Services 9.2% 8.3%
Chemicals 8.3% 0.9%
Financial - Bank Money
Center 6.3% 5.9%
Telecommunications Equipment 4.1% 2.2%
(1) Lipper Analytical Services defines a Growth and Income Fund
as one "which combines a growth of earnings orientation and an
income requirement for level and/or rising dividends." The
ranking is based on total return, including reinvestment of
dividends and capital gains for the stated period. Past
performance is not predictive of future results.
PORTFOLIO THEMES
Pharmaceuticals. New addition Eli Lilly is testing treatments
for schizophrenia and acute cardiovascular disease. Once on the
market, these drugs could make Lilly one of the fastest-growing
multinational drug companies. Amgen's Epogen and Neupogen are
each billion dollar drugs that help the body increase red and
white blood cells. They are used primarily with cancer and
dialysis patients.
39
<PAGE>
Financial Services. On April 1, Wells Fargo acquired First
Interstate, and Chemical Bank bought Chase Manhattan. (Although
Chemical Bank was the acquirer, it chose to retain the name Chase
Manhattan.) The new banks will implement dramatic cost savings
and unite complementary businesses. Chase Manhattan, for example,
will combine two strong branch systems: one in the suburbs and
surrounding counties of New York City, the other in Manhattan.
The cash flow generated by the mergers should allow both banks to
repurchase stock.
Technology. We used the weakness in the technology sector to
build positions in several dominant network equipment and
software providers, where demand for systems and applications is
huge. Microsoft's new NT network operating system is rapidly
penetrating the networking market. Ascend Communications
manufactures networking equipment and Cisco Systems dominates the
market for equipment that allows large networks to communicate.
We sold Sun Microsystems, Texas Instruments, and Hewlett-Packard.
Special Situations. Each of these companies has found unique
ways to increase earnings. Cytec is a specialty chemical
manufacturer that has undergone a significant cost restructuring
and is now experiencing major expansion in its operating and
profit margins. More predictable production cycles are allowing
Boeing to take advantage of international demand for commercial
aircraft in emerging markets such as China. Chemical giant
Monsanto is focusing on its more consistent agricultural
technology operations, and at Nike, international sales of
athletic shoes are growing at better than 40%, while sports
apparel sales in the U.S. are up more than 80%.
Stock Repurchase. We continue to believe share repurchase
programs are the best means of returning value to shareholders.
Citicorp, Wells Fargo, Chase Manhattan, Merrill Lynch, and
PepsiCo have all announced significant programs.
CURRENT STRATEGY
Despite the recent rise in interest rates, the overall
environment remains very positive for growth stocks. The economy
is growing at a moderate pace, inflation has been effectively
neutralized, and investors are searching for predictable earnings
streams. We will continue to build the portfolio around large,
stable, growth stocks. At present, dividend considerations remain
secondary.
Thank you for your investment in Janus Growth and Income
Fund.
40
<PAGE>
JANUS GROWTH AND INCOME FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Growth and Income Fund and the S&P
500 Index. Janus Growth and Income Fund is represented by a
solid teal line. The S&P 500 Index is represented by a single
dashed black line. The "y" axis reflects the value of the
investment. The "x" axis reflects the computation periods from
inception, May 15, 1991, through April 30, 1996. The upper right
quadrant reflects the ending value of the hypothetical investment
in Janus Growth and Income Fund ($22,238) as compared to the S&P
500 Index ($20,366). There is a legend in the upper left
quadrant of the graph which indicates Janus Growth and Income
Fund's one-year and since inception (May 15, 1991) average annual
total returns as 38.84% and 17.49%, respectively.
* The Fund's inception date Source - Lipper Analytical Services,
Inc. 1996. 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.
The Fund's portfolio may differ significantly from the securities
in the index. The index is unmanaged and therefore does not
reflect the cost of portfolio management or trading.
JANUS GROWTH AND INCOME FUND April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 86.1%
Aerospace and Defense - 2.6%
250,350 Boeing Co. $20,559,994
Auto and Truck - 0.8%
12,216 Porsche A.G.*,** 6,681,997
Beverages - 4.1%
200,000 Coca-Cola Co. 16,300,000
250,000 PepsiCo, Inc. 15,875,000
41
<PAGE>
32,175,000
Biopharmaceuticals - 2.4%
333,300 Amgen, Inc.* 19,164,750
Business Credit - 0.3%
48,400 First USA Paymentech, Inc.* 2,105,400
Chemicals - 8.3%
269,475 Cytec Industries, Inc. * 22,332,741
80,000 Hercules, Inc. 4,840,000
151,125 Monsanto Co. 22,895,437
400,575 Praxair, Inc. 15,472,209
65,540,387
Commercial Services - 1.4%
137,150 FlightSafety International, Inc. 7,594,681
75,975 Medaphis Corp.* 3,504,347
11,099,028
Computers - Communications Equipment - 1.3%
166,700 Shiva Corp.* 9,960,325
Computers - Peripheral Equipment - 2.8%
425,200 Cisco Systems, Inc.* 22,057,250
Electronics - 3.9%
576,000 Affinity Technology Group* $13,536,000
160,450 Hewlett-Packard Co. 16,987,644
30,523,644
Financial - Bank Commercial - 3.9%
127,033 Wells Fargo & Co. 30,821,382
42
<PAGE>
Financial - Bank Money Center - 6.3%
345,750 Chase Manhattan Corp. 23,813,531
300,000 Citicorp 23,625,000
175,800 HSBC Holdings PLC 2,625,000
50,063,531
Financial - Savings/Loan/Thrift - 0.5%
289,200 HFNC Financial Corp.* 4,048,800
Financial - Security Broker - 3.0%
392,950 Merrill Lynch & Co., Inc. 23,724,356
Financial Services - 5.1%
217,475 Federal Home Loan Mortgage Co. 18,131,978
593,400 Federal National Mortgage
Association 18,172,875
59,000 Student Loan Marketing Association 4,321,750
40,626,603
Holding Companies - Diversified - 1.7%
1,462,000 Citic Pacific, Ltd. 5,745,785
86,975 Textron, Inc. 7,458,106
13,203,891
Insurance - Life - 1.7%
188,375 Aetna Life & Casualty Co. 13,421,719
Leisure Time - 1.4%
242,750 Coleman Co., Inc.* 11,136,156
Lodging - 1.8%
274,000 HFS, Inc.* 14,076,750
43
<PAGE>
Medical - Biotechnology - 0.4%
63,350 Medtronic, Inc. $ 3,365,469
Medical - Hospital Management Services - 1.9%
230,000 MedPartners/Mullikin, Inc.* 6,641,250
170,950 Oxford Health Plans, Inc.* 8,632,975
15,274,225
Office and Business Equipment - 0.9%
148,700 Danka Business Systems PLC (ADR) 7,137,600
Pharmaceuticals - 11.7%
111,250 Centocor, Inc.* 4,450,000
100,000 Elan Corp. PLC (ADR)* 6,612,500
383,900 Eli Lilly & Co. 22,650,100
150,000 Johnson & Johnson 13,875,000
67,950 Merck & Co., Inc. 4,110,975
282,675 Pfizer, Inc. 19,469,241
2,752 Roche Holding A.G.** 21,611,001
92,778,817
Publishing - Newspaper - 0.6%
138,100 Gartner Group, Inc. - Class A* 4,729,925
Restaurants and Food Services - 3.8%
345,000 Lone Star Steakhouse & Saloon, Inc.* 14,274,375
327,250 McDonald's Corp. 15,667,094
29,941,469
Services - Computer Integrated Systems Design - 0.3%
18,325 BDM International, Inc.* 852,112
30,225 Parametric Technology Co.* 1,216,556
44
<PAGE>
2,068,668
Services - Prepackaged Software - 3.1%
220,000 Microsoft Corp.* 24,942,500
Shoes - 3.2%
247,350 Fila Holdings S.p.A. (ADR) 16,881,637
97,900 Nike, Inc. - Class B 8,566,250
25,447,887
Telecommunications Equipment - 4.1%
303,125 Ascend Communications, Inc.* 18,642,188
50,000 Premisys Communications, Inc.* 2,187,500
76,370 U.S. Robotics, Corp.* 11,951,905
32,781,593
Textiles - 0.9%
116,500 Gucci Group N.V.* 6,334,688
16,450 Mossimo, Inc.* 625,100
6,959,788
Transportation - Airlines - 1.9%
81,900 AMR Corp.* 7,309,575
36,000 UAL Corp.* 7,722,000
15,031,575
Total Common Stock (cost $566,207,631) 681,450,479
Preferred Stock - 5.8%
Financial - Savings/Loan/Thrift - 0.6%
178,000 Fidelity Federal Bank, 12.00%,
Series A 4,717,000
Financial Services - 4.1%
45
<PAGE>
519,900 American Express Co.
Exchange Notes, 6.25% 32,428,763
Retail - Apparel - 0.2%
30,000 Ann Taylor, 8.50%+ 1,515,000
Transportation - Airlines - 0.9%
125,000 TWA, 8.00%+ 6,875,000
Total Preferred Stock (cost $31,785,575) 45,535,763
Corporate Bonds - 4.5%
Homebuilders - 1.5%
$12,395,000 M.D.C. Holdings, Inc., 11.125%
senior notes, due 12/15/03 $ 12,023,150
Pharmaceuticals - 2.0%
15,000,000 Sandoz Capital, Ltd., 2.00%
bank guaranteed notes,
due 10/6/02+ 16,012,500
Services - Hotels and Motels - 1.0%
7,950,000 Trump Atlantic City Associates, 11.25%
first mortgage notes, due 5/1/06 8,109,000
Total Corporate Bonds (cost $31,772,104) 36,144,650
U.S. Government Agencies - 4.4%
Federal Home Loan Mortgage Corp.:
25,400,000 5.30%, 5/1/96 25,400,000
10,000,000 5.17%, 5/20/96 9,972,714
Total U.S. Government Agencies
(amortized cost $35,372,714) 35,372,714
Total Investments - 100.8%
(total cost $665,138,024) 798,503,606
Liabilities, net of Cash,
Receivables and Other Assets - (0.8%) (6,570,428)
Net Assets - 100% $791,933,178
46
<PAGE>
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Germany 0.8% $ 6,681,997
Hong Kong 1.1% 8,370,785
Ireland 0.8% 6,612,500
Italy 2.9% 23,216,325
Switzerland 2.7% 21,611,001
United Kingdom 0.9% 7,137,600
United States+ 90.8% 724,873,398
Total 100.0% $798,503,606
+Includes Short-Term Securities (86.4% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain
German Deutschemark
7/5/96 9,500,000 $ 6,227,875 $ 422,923
Swiss Franc 7/11/96 1,000,000 809,782 34,898
Swiss Franc 8/8/96 5,256,100 4,268,740 270,206
Swiss Franc 8/22/96 11,125,000 9,048,394 484,156
$20,354,791 $1,212,183
JANUS MERCURY FUND Portfolio Manager, Warren B. Lammert
PERFORMANCE REVIEW
Despite a significant rise in interest rates in 1996, stocks
marched forward, albeit somewhat more erratically than in 1995.
The S&P 500 Index gained 13.76% for the first half of our fiscal
year ended April 30. Janus Mercury Fund was up 17.27%, nicely
47
<PAGE>
outperforming the S&P Index. Both returns include reinvested
dividends.
For the 12 months ended April 30, Janus Mercury Fund was
ranked 75th out of 596 capital appreciation funds (top 13%)
tracked by Lipper Analytical Services, a mutual fund rating
company.(1)
Stocks were able to advance in part due to record inflows
into mutual funds. But from a historical point of view, equities
appear somewhat expensive relative to bond prices and the obvious
signs of increased speculation visible in penny stocks and other
smaller issues are not encouraging.
Despite our somewhat negative overview, the outlook from a
bottom-up perspective remains positive: valuations on the stocks
we own and analyze are still attractive. During the first six
months, a number of positions performed exceptionally well.
Itron, Ascend Communications, HFS, Kinnevik, and Alco Standard
appreciated 30% or more. Itron led the pack, gaining 100%. The
company makes an electronic device that reads utility meters from
a vehicle driving down the street. Cisco Systems, Amgen, and
Chase Manhattan also performed well.
These stellar returns were instrumental in helping us
outperform the S&P Index. Results were reduced, however, by
declines in SAP, LSI Logic, and Intuit.
PORTFOLIO COMPOSITION
As of April 30, the portfolio was 89.5% invested in equities,
slightly up from 87.4% when the year began. Foreign holdings
comprised approximately 16% of assets, down from 22.6% at the end
of October, 1995, with 13.1% invested in Europe. The ten largest
positions accounted for 34.4% of holdings.
Ten Largest Holdings April 30, 1996 October 31, 1995
Eli Lilly 6.3% 1.3%
Wells Fargo 4.7% -
Cisco Systems 3.8% -
First Data Corp. 3.1% 2.3%
Centocor 3.0% -
SAP AG 3.0% 4.3%
Analog Devices, Inc. 2.9% 2.4%
HFS, Inc. 2.6% 3.7%
Kinnevik 2.5% 2.3%
Chase Manhattan 2.5% 2.6%
48
<PAGE>
Top Five Industries April 30, 1996 October 31, 1995
Pharmaceuticals 9.7% 6.5%
Services - Computer Processing 6.0% 7.7%
Lodging 5.8% 3.9%
Financial - Bank Commercial 4.9% 1.9%
Services - Prepackaged
Software 4.4% 4.9%
PORTFOLIO THEMES
Technology. Commercial networking equipment and applications
are driving profits at Ascend Communications, at Cisco Systems,
which is the dominant developer of equipment that allows large
networks to communicate, at Stratacom, which makes equipment for
ATM networks, and at America Online, the Internet access
provider. We also own a diverse array of software developers,
including SAP, Glenayre Technologies, Altera, PeopleSoft, and
Intuit, as well as semiconductor manufacturers Analog Devices and
LSI Logic (which was trimmed).
Telecommunications. The demand for cellular and personal
communications systems is still very robust. We continue to focus
on service companies such as Paging Network, U.S. Satellite
Broadcasting, and CommNet Cellular in the U.S., with Kinnevik,
Millicom International, and Korean Mobile Telephone in overseas
markets.
Pharmaceuticals. Eli Lilly has a terrific product pipeline
that includes treatments for schizophrenia and acute
cardiovascular disease. As these drugs come to market, Lilly will
experience the fastest growth of the major world pharmaceutical
companies. Its new drug for acute cardiovascular disease is being
developed in conjunction with Centocor.
Financial Services. Wells Fargo acquired First Interstate on
April 1. The merger provides significant opportunities for cost
savings. Wells Fargo's excellent business network and small
business loan activity will be a productive use for First
Interstate's substantial and loyal consumer deposit base. We
expect Wells Fargo's excess cash to fund significant stock
repurchase over the next several years.
Business Services - Outsourcing. The practice of outsourcing
selected operations to outside vendors continues to expand
globally. First Data, Alco Standard, Danka Business Systems, and
Cincinnati Bell offer a wide range of services to other
businesses. Danka and Alco Standard are taking advantage of the
growing outsourcing of copying services and the consolidation of
small printing and copying centers. Cincinnati Bell provides
billing services and telephone reps to Microsoft and other large
49
<PAGE>
customers and will handle AT&T's billing when it re-enters local
telephone markets.
Special Situations. Hotel and real estate franchisor HFS has
developed many innovative cross-selling strategies that continue
to drive earnings. Pittway manufactures a broad product line of
security systems.
GOING FORWARD
We will monitor interest rates closely, but our working
strategy remains to find compelling growth ideas and capitalize
on opportunities to add value to the Fund's performance.
Thank your for your investment in Janus Mercury Fund.
(1) A Capital Appreciation Fund is defined by Lipper as one which
"aims at maximum capital appreciation, frequently by means of
100% or more portfolio turnover, leveraging, purchasing
unregistered securities, purchasing options, etc. The fund may
take large cash positions." This ranking is based on total
return, including reinvestment of dividends and capital gains for
the stated period. Past performance is not predictive of future
results.
JANUS MERCURY FUND Portfolio Manager, Warren B. Lammert
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Mercury Fund and the S&P 500 Index.
Janus Mercury Fund is represented by a solid teal line. The S&P
500 Index is represented by a single dashed 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, 1996. The upper right quadrant reflects the ending
value of the hypothetical investment in Janus Mercury Fund
($20,786) as compared to the S&P 500 Index ($16,100). There is a
legend in the upper left quadrant of the graph which indicates
Janus Mercury Fund's one-year and since inception (May 3, 1993)
average annual total returns as 37.25% and 27.62%, respectively.
*The Fund's inception dateSource - Lipper Analytical Services,
Inc. 1996. 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.
50
<PAGE>
The Fund's portfolio may differ significantly from the securities
in the index. The index is unmanaged and therefore does not
reflect the cost of portfolio management or trading.
JANUS MERCURY FUND April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 86.3%
Aerospace and Defense - 0.5%
177,250 General Motors Corp. - Class H $10,834,406
Biopharmaceuticals - 2.2%
535,575 Amgen, Inc.* 30,795,563
24,000 Autoimmune, Inc. 282,000
178,700 Genzyme Corp.* 10,051,875
106,800 NeXstar Pharmaceuticals, Inc.* 2,616,600
43,746,038
Broadcasting, Radio and Television - 0.5%
373,090 Central European Media
Enterprises, Ltd. 10,679,701
Building Materials - 0%
17,500 NCI Building Systems, Inc.* 634,375
Chemicals - 1.7%
227,225 Grace (W.R.) & Co. 17,609,937
1,700 Hoechst A.G.** 572,814
359,875 Praxair, Inc. 13,900,172
71,375 Witco Corp. 2,435,672
34,518,595
51
<PAGE>
Commercial Services - 0.5%
47,000 AMRE, Inc.* 881,250
618,029 Rentokil Group Plc** 3,576,223
25,000 Rent-Way, Inc.* 317,188
104,917 Securitas A.B. - Class B** 6,023,055
10,797,716
Communication Services - 0%
38,000 Lodgenet Entertainment Corp.* 508,250
Computers - 4.2%
678,275 Dell Computer Corp.* $31,115,866
554,950 Gateway 2000, Inc.* 19,353,881
314,125 IBM Corp. 33,768,438
84,238,185
Computers - Communications Equipment - 0.2%
61,700 Shiva Corp.* 3,686,575
Computers - Peripheral Equipment - 3.8%
1,457,350 Cisco Systems, Inc.* 75,600,031
Electrical Equipment - 0.1%
24,825 FORE Systems, Inc.* 1,961,175
Electronics - 3.7%
112,975 Altera Corp.* 5,959,431
360,050 Itron, Inc.* 21,152,938
195,850 Macromedia, Inc.* 7,381,097
528,075 Pittway Corp. - Class A 25,215,581
269,575 StrataCom, Inc.* 14,017,900
73,726,947
52
<PAGE>
Electronics - Components and Accessories - 0.7%
382,375 Sterling Commerce, Inc.* 13,383,125
Electronics - Semiconductors - 3.5%
2,222,262 Analog Devices, Inc.* 57,223,247
328,950 LSI Logic Corp.* 11,842,200
69,065,447
Engineering and Construction - 0.7%
5,460 Metra Oy - A** 225,932
344,869 Metra Oy - B** 14,484,597
14,710,529
Environmental Control - 0%
10,000 Culligan Water Technologies, Inc.* $ 337,500
Financial - Bank Commercial - 4.9%
164,534 Banca Popolare di Bergamo** 2,682,707
388,491 Wells Fargo & Co. 94,257,629
96,940,336
Financial - Bank Money Center - 3.2%
118,575 Bank of New York Co., Inc. 5,750,888
721,458 Chase Manhattan Corp. 49,690,420
1,164,868 Skandinaviska Enskilda
Banken - Class A** 8,744,869
64,186,177
Financial - Savings/Loan/Thrift - 0.3%
310,700 Glendale Federal Bank FSB* 5,437,250
53
<PAGE>
Financial - Security Broker - 0.4%
1,962,375 Grupo Financiero Inbursa S.A.
- Class C* 7,653,527
Food Processing - 0.4%
195,256 Cultor Oy - Series I** 8,281,604
Furniture and Home Appliances - 1.9%
1,428,300 Singer Company N.V. (The) 36,957,263
Holding Company - Diversified - 2.5%
1,291,706 Kinnevik A.B. - Class B** 50,101,498
Homebuilders - 0%
14,875 D.R. Horton, Inc. 148,750
Insurance - Life - 2.6%
259,500 Compdent Corp.* 11,482,875
87,650 Sunamerica, Inc. 4,776,925
582,375 UNUM Corp. 34,651,313
50,911,113
Leisure Time - 1.2%
88,225 Coleman Co., Inc.* 4,047,322
1,275,850 International Game Technology 19,775,675
30,800 Mikohn Gaming Corp.* 169,400
23,992,397
Lodging - 5.8%
1,475,175 Centocor, Inc.* 59,007,000
1,023,200 HFS, Inc.* 52,566,900
4,100 ITT Corp.* 249,588
123,325 La Quinta Inns, Inc. 3,607,256
54
<PAGE>
10,000 Renaissance Hotel Group N.V.* 190,000
115,620,744
Medical - Hospital Management Services - 3.3%
105,350 ABR Information Services, Inc.* 6,584,375
100,000 Express Scripts, Inc. - Class A* 4,950,000
156,075 Healthsource, Inc.* 5,326,059
19,600 Laser Vision Centers, Inc.* 279,300
438,850 MedPartners/Mullikin, Inc.* 12,671,794
90,750 Oxford Health Plans, Inc.* 4,582,875
372,550 PacifiCare Health Systems,
Inc. - Class B* 31,247,631
65,642,034
Medical - Supplies - 1.0%
28,550 Arrow International, Inc. 1,127,725
130,375 Coherent, Inc.* 6,991,359
291,875 Respironics, Inc.* 6,380,205
159,750 Sofamor Danek Group, Inc.* 5,231,813
19,731,102
Mining - 0.9%
186,879 Freeport McMoRan, Inc. 6,821,084
148,125 Potash Corporation of
Saskatchewan, Inc. 10,442,813
17,263,897
Miscellaneous - Distribution and Wholesale - 0.2%
65,750 Amway Asia Pacific, Ltd. $ 1,964,281
71,350 Grupo Casa Autrey S.A. de C.V. (ADR) 1,632,131
3,596,412
55
<PAGE>
Office and Business Equipment - 1.0%
412,225 Danka Business Systems PLC (ADR) 19,786,800
Oil and Gas - Exploration - 0.4%
154,050 Triton Energy Corp.* 8,472,750
Personal Credit - 0.2%
76,950 ADVANTA Corp. - Class B 3,857,119
Pharmaceuticals - 9.7%
11,785 Ciba-Geigy Corp. A.G.** 13,580,944
2,131,250 Eli Lilly & Co. 125,743,750
71,475 Jones Medical Industries, Inc. 3,734,569
17,500 Pharmacia & Upjohn, Inc. 669,375
51 Roche Holding A.G.** 400,494
10,206 Sandoz A.G. - Class R** 11,096,511
590,330 SmithKline Beecham PLC - Class A** 6,267,009
543,375 SmithKline Beecham PLC -
Class A (ADR)** 29,342,250
7,800 Warner-Lambert Co. 871,650
11,000 Watson Pharmaceuticals, Inc.* 522,500
192,229,052
Publishing and Printing - 0.4%
1,006,825 Arnoldo Mondadori Editore S.p.A.** 8,412,510
Retail - Special Line - 0.7%
309,000 Baby Superstore, Inc.* 14,059,500
Services - Amusement and Recreation - 0%
525 Anchor Gaming* 23,198
9,400 Harrah's Entertainment, Inc.* 324,300
56
<PAGE>
347,498
Services - Computer Integrated Systems Design - 1.6%
472,800 America Online, Inc. 30,259,200
8,075 BDM International, Inc.* 375,488
62,050 Indus Group, Inc.* 1,318,563
31,953,251
Services - Computer Processing and Data Preparation - 3.1%
802,325 First Data Corp. 60,976,700
Services - Computer Programming and Data Processing - 0.1%
52,400 American Managment Systems, Inc.* 1,395,150
Services - Computer Programming Services - 0.8%
330,325 Keane, Inc.* 13,006,547
123,850 Systemsoft Corp.* 3,452,319
16,458,866
Services - Computer Rental and Leasing - 0.7%
369,925 CIBER, Inc.*,# 14,704,519
Services - Hotels and Motels - 0.1%
16,000 Circus Circus Enterprises, Inc.* 588,000
12,000 Mirage Resorts, Inc.* 628,500
1,216,500
Services - Prepackaged Software - 4.4%
134,700 Computer Associates
International, Inc. 9,883,613
72,500 Comshare, Inc.* 1,740,000
545,550 Informix Corp.* 14,388,881
218,950 Intuit, Inc.* 11,385,400
57
<PAGE>
131,100 Netscape Communications Corp.* 7,997,100
403 NTT Data Communications
Systems Corp.** 14,047,428
197,050 PeopleSoft, Inc.* 12,414,150
160,500 Sterling Software, Inc.* 12,478,875
162,775 Wonderware Corp.* 3,662,438
87,997,885
Telecommunications - 3.3%
147,848 Arch Communications Group,
Inc.* 3,511,407
156,650 CommNet Cellular, Inc.* 5,169,450
208,409 Korea Mobile Telecommunications,
Inc. (GDR)*,+ 11,879,313
46,450 MFS Communications Co., Inc.* 1,611,234
294,575 Millicom International Cellular S.A.*13,918,669
1,277,825 Paging Network, Inc.* 30,028,888
66,118,961
Telecommunications Equipment - 3.1%
75,125 Adtran, Inc. 3,981,625
336,725 Ascend Communications, Inc.* 20,708,588
291,725 Glenayre Technologies, Inc.* 13,565,213
207,075 PictureTel Corp.* 7,040,550
98,750 Premisys Communications, Inc.* 4,320,313
293,825 United States Satellite
Broadcasting Co., Inc.* 10,063,506
43,000 Westell Technologies, Inc.
- Class A* 3,090,625
62,770,420
58
<PAGE>
Telephone and Telegraph Apparatus - 0.3%
72,700 PairGain Technologies, Inc.* 6,942,850
Textiles - 1.0%
376,325 Gucci Group N.V. 20,462,672
Tobacco - 0.6%
1,032,000 PT Hanjaya Mandala Sampoerna* 11,414,948
Transportation - Airlines - 0.4%
79,350 AMR Corp.* 7,081,988
Transportion - Railroad - 0.5%
126,075 Wisconsin Central Transportation
Corp.* 10,653,338
Utilities - Telecommunications - 0.9%
339,200 Cincinnati Bell, Inc. 16,705,600
16,000 Frontier Corp. 506,000
25,000 MCI Communications Corp. 735,938
17,947,538
Wholesale - Special Line - 2.1%
717,575 Alco Standard Corp. 41,529,653
Total Common Stock (cost $1,480,093,898) 1,721,683,167
Preferred Stock - 3.2%
Auto and Truck - 0.2%
8,702 Porsche A.G.*,** 4,759,883
Services - Computer Processing and Data Preparation - 3.0%
446,846 SAP A.G.** 59,367,267
Total Preferred Stock (cost $56,137,813) 64,127,150
59
<PAGE>
U.S. Government Agencies - 8.8%
Federal Home Loan Bank System:
$50,000,000 5.21%, 5/3/96 49,985,528
25,000,000 5.15%, 5/8/96 24,974,965
50,000,000 5.18%, 5/22/96 49,848,917
Federal Home Loan Mortgage Corp.
50,000,000 5.17%, 5/31/96 49,784,583
Total U.S. Government Agencies
(amortized cost $174,593,993) 174,593,993
Short-Term Corporate Notes - 3.0%
General Electric Capital Corp.
59,100,000 5.30%, 5/1/96 59,100,000
(amortized cost $59,100,000)
Total Investments - 101.3%
(total cost $1,769,925,704) 2,019,504,310
Liabilities, net of Cash, Receivables
and Other Assets - (1.3%) (25,847,689)
Net Assets - 100% $1,993,656,621
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Canada 0.5% $ 10,442,812
Finland 1.1% 22,992,138
Germany 3.2% 64,699,965
Indonesia 0.6% 11,414,948
Italy 0.5% 11,095,218
Japan 0.7% 14,047,428
Korea 0.6% 11,879,313
Mexico 0.5% 9,285,658
60
<PAGE>
Netherlands 1.0% 20,462,672
Sweden 3.2% 64,869,423
Switzerland 1.2% 25,077,952
United Kingdom 2.9% 58,972,282
United States+ 84.0% 1,694,264,501
Total 100.0% $2,019,504,310
+Includes Short-Term Securities (72.2% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency
Currency Sold and Currency Value Unrealized
Settlement Date Units Sold in $ U.S. Gain/(Loss)
British Pound 6/28/96 3,048,000 $ 4,589,374 $ 45,171
British Pound 10/1/96 8,500,000 12,783,150 146,200
Finnish Markka 6/28/96 10,992,000 2,277,616 111,690
Finnish Markka 7/15/96 11,057,000 2,293,127 270,458
Finnish Markka 7/25/96 47,900,000 9,939,203 668,821
Finnish Markka 10/22/96 6,000,000 1,250,156 16,201
German Deutschemark
6/13/96 26,000,000 17,020,162 1,100,733
German Deutschemark
6/28/96 13,185,000 8,639,670 318,513
German Deutschemark
7/15/96 7,283,000 4,777,617 344,402
German Deutschemark
8/8/96 7,292,000 4,791,379 195,968
German Deutschemark
8/12/96 9,630,000 6,329,280 245,445
German Deutschemark
61
<PAGE>
10/22/96 3,000,000 1,981,375 17,293
Italian Lira 8/9/96 11,600,000,000 7,358,240 (144,758)
Japanese Yen 5/23/96 375,000,000 3,570,184 14,097
Japanese Yen 9/12/96 415,000,000 3,951,594 78,314
Japanese Yen 10/1/96 250,000,000 2,380,540 30,842
Japanese Yen 10/22/96 250,000,000 2,380,606 18,627
Swedish Krona 5/23/96 90,972,000 13,360,160 (469,130)
Swedish Krona 7/15/96 13,665,000 2,005,106 47,929
Swedish Krona 8/22/96 207,000,000 30,361,255 (233,320)
Swiss Franc 9/12/96 18,100,000 14,753,831 639,288
Swiss Franc 10/1/96 4,500,000 3,675,570 175,521
$160,469,195 $3,638,305
JANUS OLYMPUS FUND Portfolio Manager, Scott W. Schoelzel
PERFORMANCE REVIEW
I would like to take this opportunity to thank shareholders
for their initial confidence and support. Janus Olympus Fund has
gotten off to a good start in its first four months, gaining
24.25%, well ahead of the S&P 500 Index, which was up 5.37% for
the same period (all returns include reinvested dividends). While
we have enjoyed some modest success in these first four months, I
sincerely believe that truly superior returns are garnered in the
third or fourth year of an investment, and would encourage you to
view your investment in Janus Olympus Fund with at least this
time horizon in mind.
The Fund's focus is on identifying individual companies that
are creating truly outstanding goods and services, products that
are "in sync" with the changing economic, social, and demographic
landscapes both here in the U.S. as well as around the world.
But no matter how bright the prospects of an individual
company may appear, its ultimate success relies heavily on the
management team. Therefore, one of the key ingredients we look
for in any investment is a truly outstanding management team. We
tend to sleep better at night knowing that management possesses
62
<PAGE>
the honesty, integrity, work ethic, and financial incentives that
are aligned with our interests as shareholders.
While the foundation of our investment approach will always
be based on stock-by-stock, bottom-up analysis, I believe that in
order to be truly successful, you must develop a view with
respect to the overall investment landscape. At this point in
time, my view is that the areas offering the most fertile grounds
for investment generally include the fields of
telecommunications, health care (both services and devices),
pharmaceuticals, biotechnology, financial services, technology,
and some of the more specialized retailers. Thus far we are
finding many companies that are consistent with our view and
investment objectives. Microsoft, Ascend Communications, Oxford
Health Plans, Nike, and HFS (formerly Hospitality Franchise
Systems) all contributed to the initial success of the Fund and
we will continue to look for companies with their outstanding
qualities.
COMPOSITION OF THE PORTFOLIO
As of April 30, Janus Olympus Fund was 66% invested in
equities. This lower rate of investment reflects both the influx
of new monies and our commitment to purchasing stocks at values
we feel are attractive. Occasionally, our price sensitivity and
selectivity will result in somewhat higher cash positions.
Ten Largest Holdings April 30, 1996
Microsoft 4.8%
Oxford Health Plans 4.1%
Nike 3.0%
America Online 3.0%
Netscape 2.9%
HBO & Co. 2.7%
Sapient Corp. 2.5%
Eli Lilly 2.4%
Jones Medical Industries 2.0%
Pfizer 1.9%
Top Five Industries April 30, 1996
Services - Prepackaged Software 13.7%
Pharmaceuticals 6.3%
Medical - Hospital Management Services 5.0%
Telecommunications Equipment 4.7%
Services - Computer Integrated Systems 4.6%
63
<PAGE>
PORTFOLIO THEMES
Technology. The whole networking phenomenon, including online
services and the Inter- and Intranets have provided a number of
investment opportunities. The growth in these markets is
explosive. One beneficiary is Microsoft, whose Windows NT network
operating system is gaining momentum in the corporate
marketplace. Cisco Systems, Ascend Communications, Xylan, and
Shiva Corporation all make high-speed network switching and/or
network access devices which are used in building computer
networks. HNC Software, PeopleSoft, i2 Technologies, Citrix
Systems, and HBO & Company are developing innovative software
applications and services.
Health Care, Medical Equipment, and Pharmaceuticals. Managed
care, drugs, and advances in medical equipment can often provide
the most cost-effective treatment of widespread, often critical,
illnesses. The pipeline at Eli Lilly contains a number of
exciting products, including indications for schizophrenia and
acute heart disease. Jones Medical is a fast-growing, second-tier
drug manufacturer and distributor, and Oxford Health Plans is the
leading HMO serving the New York area, with an excellent
management team.
Specialty Retailers. Nike has become the dominant designer
and manufacturer of athletic footwear and apparel, with a
worldwide franchise that is growing more powerful every year.
Shoe and accessories designer Gucci is back on track after new
management and a new design team revamped the product line and
the business model and refocused the company on high-end, higher-
margin markets.
STRATEGY GOING FORWARD
Again, I would like to thank shareholders for their
investment in the Janus Olympus Fund. I am excited about the
prospects of our holdings and believe the Fund is on its way to
being well positioned to capitalize on the opportunities I see
ahead.
JANUS OLYMPUS FUND Portfolio Manager, Scott W. Schoelzel
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Olympus Fund and the S&P 500 Index.
Janus Olympus Fund is represented by a solid teal line. The S&P
500 Index is represented by a single dashed black line. The "y"
axis reflects the value of the investment. The "x" axis reflects
the computation periods from inception, December 29, 1995,
through April 30, 1996. The upper right quadrant reflects the
64
<PAGE>
ending value of the hypothetical investment in Janus Olympus Fund
($12,425) as compared to the S&P 500 Index ($10,692). There is a
legend in the upper left quadrant of the graph which indicates
Janus Olympus Fund's since inception (December 29, 1995) [average
annual total returns] as 24.25%.
*The Fund's inception date Source - Lipper Analytical Services,
Inc. 1996. 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.
The Fund's portfolio may differ significantly from the securities
in the index. The index is unmanaged and therefore does not
reflect the cost of portfolio management or trading.
JANUS OLYMPUS FUND April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 66.0%
Commercial Services - 1.7%
50,000 Employee Solutions, Inc.* $ 1,937,500
34,400 Pharmaceutical Product
Development, Inc.* 1,453,400
87,500 Rent-Way, Inc.* 1,110,156
4,501,056
Computers - 2.7%
60,000 HBO & Co. 7,125,000
Computers - Communications Equipment - 2.2%
55,200 Shiva Corp.* 3,298,200
36,500 Xylan Corp.* 2,338,281
5,636,481
Computers - Peripheral Equipment - 1.4%
70,000 Cisco Systems, Inc.* 3,631,250
65
<PAGE>
Electronics - 0.7%
52,500 Gemstar International Group, Ltd.* 1,739,063
Electronics - Components and Accessories - 1.0%
56,500 Sterling Commerce, Inc.* 1,977,500
20,000 VideoServer, Inc.* 670,000
2,647,500
Financial - Bank Commercial - 1.9%
20,000 Wells Fargo & Co. 4,852,500
Financial - Bank Money Center - 1.2%
40,225 Citicorp 3,167,719
Lodging - 1.1%
55,000 HFS, Inc.* 2,825,625
Medical - Biotechnology - 2.0%
68,525 Arterial Vascular
Engineering, Inc.* $ 3,015,100
10,000 ESC Medical Systems, Ltd.* 440,000
105,000 Integra Lifesciences Corp.* 1,338,750
24,100 KeraVision, Inc.* 382,587
5,176,437
Medical - Hospital Management Services - 5.0%
210,000 Oxford Health Plans, Inc.* 10,605,000
50,000 PhyCor, Inc.* 2,462,500
13,067,500
Medical - Supplies - 1.8%
125,000 U.S. Surgical Corp. 4,625,000
Office and Business Equipment - 1.0%
66
<PAGE>
52,075 Danka Business Systems PLC (ADR) 2,499,600
Pharmaceuticals - 6.3%
105,000 Eli Lilly & Co. 6,195,000
100,000 Jones Medical Industries, Inc. 5,225,000
72,425 Pfizer, Inc. 4,988,272
16,408,272
Restaurants and Food Services - 0.7%
24,750 Planet Hollywood
International, Inc. - Class A* 628,031
33,175 Rainforest Cafe, Inc.* 1,227,475
1,855,506
Retail - Special Line - 0.3%
14,400 Baby Superstore, Inc.* 655,200
Services - Business Services - 2.6%
120,500 Sapient Corp.* 6,356,375
20,000 Transition Systems, Inc.* 485,000
6,841,375
Services - Computer Integrated Systems Design - 4.6%
120,000 America Online, Inc.* $ 7,680,000
9,300 Forte Software, Inc.* 574,275
70,300 Imnet Systems, Inc.* 2,319,900
25,000 Red Brick Systems, Inc.* 1,481,250
12,055,425
Services - Computer Programming Services - 1.0%
27,200 Documentum, Inc.* 1,251,200
40,000 Renaissance Solutions, Inc.* 1,320,000
67
<PAGE>
2,571,200
Services - Computer Related Services - 2.1%
45,500 Citrix Systems, Inc.* 3,549,000
56,500 Verity, Inc.* 1,942,188
5,491,188
Services - Prepackaged Software - 13.7%
100,000 HNC Software, Inc.* 3,725,000
65,000 Intuit, Inc.* 3,380,000
65,000 i2 Technologies, Inc.* 2,648,750
110,000 Microsoft Corp.* 12,471,250
121,275 Netscape Communications Corp.* 7,397,775
50,000 PeopleSoft, Inc.* 3,150,000
15,000 Remedy Corp.* 1,177,500
30,000 Transaction Systems
Architects, Inc. - Class A* 1,605,000
35,555,275
Shoes - 3.0%
90,000 Nike, Inc. - Class B 7,875,000
Telecommunications - 0.8%
50,000 QUALCOMM, Inc.* 1,937,500
Telecommunications Equipment - 4.7%
67,000 Ascend Communications, Inc.* 4,120,500
20,000 Cascade Communications Corp.* 2,005,000
90,000 Glenayre Technologies, Inc.* 4,185,000
54,275 United States Satellite
Broadcasting Co., Inc.* 1,858,919
12,169,419
68
<PAGE>
Telephone and Telegraph Apparatus - 1.1%
30,000 PairGain Technologies, Inc.* $ 2,865,000
Textiles - 1.4%
65,675 Gucci Group N.V.* 3,571,078
Total Common Stock (cost $136,739,406) 171,346,169
U.S. Government Agencies - 27.0%
Federal Home Loan Bank System
$50,000,000 5.30%, 5/1/96 50,000,000
Federal Home Loan Mortgage Corp.:
15,000,000 5.15%, 5/13/96 14,974,250
5,000,000 5.17%, 5/31/96 4,978,458
Total U.S. Government Agencies
(amortized cost $69,952,708) 69,952,708
Total Investments - 93.0%
(total cost $206,692,114) 241,298,877
Cash, Receivables and Other Assets,
net of Liabilities - 7.0% 18,145,721
Net Assets - 100% $259,444,598
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Italy 1.5% $ 3,571,078
United Kingdom 1.0% 2,499,600
United States+ 97.5% 235,228,199
Total 100.0% $241,298,877
+Includes Short-Term Securities (70.5% excluding Short-Term
Securities)
69
<PAGE>
JANUS OVERSEAS FUND Portfolio Manager, Helen Young Hayes
PERFORMANCE REVIEW
Overseas markets were strong during the first half of our
fiscal year ended April 30, 1996. Janus Overseas Fund generated
good returns, gaining 19.38%, compared to a gain of 13.21% for
the Morgan Stanley EAFE Index (MSCI EAFE). (EAFE stands for
Europe, Australasia and the Far East.) Both returns are with
net dividends reinvested.(1)
For the 12 months ended April 30, the Fund's total return
ranked 2nd out of 281 international funds tracked by Lipper
Analytical Services, a mutual fund rating company.(2)
Good stock selection helped Janus Overseas Fund outperform the
EAFE Index. A diverse group of companies, both in terms of
industries and geographical regions, produced exceptional
results. Assa-Abloy, Kinnevik, Securitas, Nutricia, Millicom
International, WM Data, Getronics, Frontec, and Sandoz all
appreciated 30% or more. Frontec was the star achiever, up 86%.
In the loss column, SAP was weak, as were Japanese stocks
Kyocera, Hitachi, and DDI Corp. Huhtamaki, a Finnish food
producer, also declined.
Foreign Markets. The strength in overseas stocks was largely
the result of improving business conditions. Growth has been
relatively slow in many Far Eastern countries, where efforts to
reign in inflation and a continuing Japanese recession took
their toll. Latin American economies also remained weak, though
there were scattered signs of an economic revival, to which
Latin markets responded. In Europe, Germany was still sluggish.
Lower interest rates are fueling European markets.
PORTFOLIO COMPOSITION
Janus Overseas Fund was approximately 92.3% invested in
equities at the end of April, with 65.3% of assets in Europe
and 23.6% in the Pacific Rim. Only 4.6% of the portfolio was
invested in the U.S. The five countries where we have the
largest investments totaled 51.1% of assets, and our ten
largest positions made up 22.5%, reflecting the portfolio's
broad diversification.
Ten Largest Holdings April 30, 1996 October 31, 1995
Assa-Abloy AB 2.8% 0.6%
Kinnevik 2.7% 2.6%
Roche Holdings 2.6% 2.3%
Securitas 2.5% 2.1%
70
<PAGE>
NTT Data Communications 2.2% 2.1%
Hoechst AG 2.2% -
Adidas 2.2% -
SAP AG 1.8% 3.0%
Nutricia 1.8% 0.4%
Millicom International 1.7% 1.8%
(1) Net dividends reinvested are the dividends net of foreign tax
obligations. Such obligations vary from country to country.
(2) An International Fund is defined by Lipper Analytical
Services as one "which invests its assets in securities whose
primary trading markets are outside the United States." This
ranking is based on total return, including reinvestment of
dividends and capital gains for the stated period. Past
performance is not predictive of future results.
Top Five Industries April 30, 1996 October 31, 1995
Pharmaceuticals 9.8% 9.0%
Commercial Services 8.5% 5.2%
Holding Cos. - Diversified 5.0% 4.5%
Miscellaneous -
Manufacturing 4.5% 2.0%
Services - Prepackaged
Software 3.9% 5.2%
PORTFOLIO THEMES
Pharmaceuticals. We own a diverse group of drug developers in
order to take advantage of the many new exciting compounds
currently being tested. In Europe, we own SmithKline Beecham and
Roche. The merger of Sandoz and Ciba-Geigy should result in
substantial cost savings. Astra was trimmed. In the U.S., Eli
Lilly is testing new treatments for schizophrenia and acute
cardiovascular disease.
Information Technology. This encompasses a wide range of
technology and software companies that are capitalizing on the
automation of corporate infrastructure. Longtime holding SAP and
JBA Holdings have fully integrated business software applications
packages. Getronics, WM Data, and Frontec are software consulting
firms that design and implement networks and other systems.
Telecommunications. Cellular services is an underpenetrated
market worldwide. We sold DDI, the Japanese long-distance
provider, but still own Kinnevik, Millicom International,
Telefonica del Peru, Phillipine Long Distance, and Telekomunikasi
Indonesia, among others.
71
<PAGE>
Outsourcing. Farming out complex functions to outside vendors
continues to expand as a business practice because it is cost-
effective. In Japan, NTT Data Communications provides large data
processing networks. Securitas in Sweden has captured the high
end of the security personnel market. Rentokil has built a large,
profitable business by supplying prosaic services such as plant
maintenance, pest control, and hygiene services.
Special Situations. These stocks have individual catalysts
driving their earnings. Assa-Abloy is a Swedish maker of high-
and low-tech security devices. SGL Carbon makes graphite
electrodes for the steel industry. Nutricia, a Dutch maker of
infant formula, is growing via shrewd acquisitions. German
conglomerate Hoechst has given management performance incentives
and is focused on its higher-margin business. New management at
Adidas, a German athletic footwear and apparel manufacturer, is
recapturing market share.
INTERNATIONAL STRATEGY
Foreign markets and economies continue to expand and generate
good returns. Currently we are finding many interesting growth
ideas overseas as markets in both mature and emerging economies
become more sophisticated and less regulated.
Thank you for your continued investment in Janus Overseas
Fund.
JANUS OVERSEAS FUND Portfolio Manager, Helen Young Hayes
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Overseas Fund and the MSCI EAFE Net
Index. Janus Overseas Fund is represented by a solid teal line.
The MSCI EAFE Net Index is represented by a single dashed black
line. The "y" axis reflects the value of the investment. The
"x" axis reflects the computation periods from inception, May 2,
1994, through April 30, 1996. The upper right quadrant reflects
the ending value of the hypothetical investment in Janus Overseas
Fund ($13,824) as compared to the MSCI EAFE Net Index ($11,716).
There is a legend in the upper left quadrant of the graph which
indicates Janus Overseas Fund's one-year and since inception
(May 2, 1994) average annual total returns as 35.53% and 17.58%,
respectively.
*The Fund's inception date Source - Lipper Analytical
Services, Inc. 1996. All returns reflect reinvested dividends.
Past performance is not predictive of future performance.
Investment return and principal value may fluctuate so that
72
<PAGE>
shares, when redeemed, may be worth more or less than their
original cost.
The Fund's portfolio may differ significantly from the securities
in the index. The index is unmanaged and therefore does not
reflect the cost of portfolio management or trading.
JANUS OVERSEAS FUND April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 88.8%
Advertising - 1.3%
1,185,419 WPP Group PLC** $ 3,635,136
Aerospace and Defense - 1.0%
15,575 Boeing Co. 1,279,097
196,000 Mitsubishi Heavy Industries, Ltd.** 1,743,467
3,022,564
Agriculture - 1.0%
2,506,835 Parmalat Finanziaria S.p.A. 2,761,718
Auto and Truck - 3.2%
27,900 Bajaj Auto, Ltd. (GDR)+ 997,425
195,000 Honda Motor Co.** 4,438,571
202,000 Isuzu Motors, Ltd.** 1,152,362
17,205 Mahindra & Mahindra (GDR)* 180,653
51,850 Tata Engineering & Locomotive
Co., Ltd. 933,300
70,525 Tata Engineering & Locomotive
Co., Ltd. (GDR)+ 1,269,450
21,000 Yamaha Motor Co., Ltd.** 228,000
9,199,761
73
<PAGE>
Broadcasting, Radio and Television - 0.8%
34,219 Central European Media
Enterprises, Ltd. 979,519
47,650 Grupo Televisa S.A. de C.V. (GDR) 1,477,150
2,456,669
Building Materials - 0.9%
36,372 Hunter Douglas N.V. 2,297,403
118,500 PT Semen Cibinong 351,224
2,648,627
Chemicals - 2.8%
18,849 Hoechst A.G.** $ 6,351,159
18,549 SGL Carbon A.G.+,** 1,751,621
8,102,780
Commercial Services - 8.5%
3,252 Adia S.A.** 711,334
106,227 Frontec A.B. - Class B*,** 4,769,152
24,671 Grand Optical Photoservice** 2,944,295
157,902 Hays PLC** 1,021,958
2,211 Prosegur Companhia de Seguridad S.A. 80,627
8,330 Randstad Holdings N.V. 533,937
478,681 Rentokil Group PLC** 2,769,773
124,527 Securitas A.B. - Class B** 7,148,823
96,146 WM-Data A.B. - Class B** 4,826,052
24,805,951
74
<PAGE>
Computers - 1.8%
423,530 Misys PLC** 5,262,102
Cosmetics and Personal Care - 0.1%
103,341 London International Group PLC** 219,572
Electronics - 2.7%
63,850 Lernout & Hauspie Speech
Products N.V.* 2,665,738
175,000 Omron Corp.** 3,933,333
21,500 Sony Corp.** 1,392,381
7,991,452
Electronics - Semiconductors - 0.5%
21,000 Rohm Co.** 1,332,000
Engineering and Construction - 0%
30,200 New World Infrastructure, Ltd.*,+ 67,153
Financial - Bank Commercial - 1.9%
487,475 Banca Popolare di Milano* 2,238,404
13,000 Dai-Ichi Kangyo Bank, Ltd.** 263,714
49,142 Fokus Bank A.S.+ 264,993
88,800 HSBC Holdings PLC 1,325,939
9,000 Mitsui Trust and Banking Co., Ltd.** 108,000
20,990 Nordbanken A.B.*,** 358,407
11,000 Sumitomo Trust and Banking Co., Ltd.** 160,286
3,900 Wells Fargo & Co. 946,238
5,665,981
75
<PAGE>
Financial - Bank Money Center - 1.0%
26,185 Corporacion Bancaria de Espana S.A. 1,059,830
207,808 Skandinaviska Enskilda Banken
- Class A** 1,560,051
9,220 Unidanmark A/S - Class A* 411,098
3,030,979
Financial - Savings/Loan/Thrift - 0.4%
240,034 Lloyds TSB Group PLC** 1,152,038
10,029 Sparbanken Sverige A.B. - Class A** 112,934
1,264,972
Food Processing - 1.8%
48,747 Nutricia Vereenigde Bedrijven N.V. 5,210,494
Forest Production and Paper - 0.1%
137,504 Rottneros Bruks A.B.** 159,900
Hand Machine - Tools- 0.3%
234,000 Gildemeister Italiana S.p.A.* 853,566
Holding Companies - Diversified - 5.0%
173,925 C.G. Smith, Ltd. 1,028,196
510,000 First Pacific Co. 679,103
72,375 Grupo Carso S.A. de C.V. - Series A1* 553,801
202,154 Kinnevik - Class B** 7,840,963
171,943 Lagardere Groupe** 4,612,862
14,714,925
Household Products - 0.5%
27,800 Amway Japan, Ltd.** 1,427,067
76
<PAGE>
Investment Companies - Closed-End - 0%
11,900 NIS Regional Fund*,+ 101,150
Investment Companies - Open-End - 0.1%
251,659 Istituto Nazionale delle Assicurazioni 386,535
Iron and Steel - 0.9%
21,784 Boehler - Uddeholm A.G.*,+ 1,777,584
106,000 Kobe Steel, Ltd.*,** 328,095
114,000 NKK Corp.*,** 356,114
6,211 SSAB Svenskt Stal A.B. - Class A** 76,340
2,538,133
Leisure Time - 0.6%
3,343 Fotolabo S.A.** 1,532,376
10,968 Tabcorp Holdings, Ltd. 45,490
1,577,866
Lodging - 1.4%
19,800 East India Hotels, Ltd.*,+ 579,150
39,050 HFS, Inc.* 2,006,194
8,544 Indian Hotels Co., Ltd. (GDS)+ 252,048
869,000 Mandarin Oriental
International, Ltd. 1,233,980
4,071,372
Machine - Construction and Mining - 0.3%
16,275 Quimica Minera Chile S.A. (ADR)* 870,713
Machine - Diversified - 0.6%
36,099 Althin Medical A.B. - Class B** 749,240
19,633 Rauma Oy** 357,458
77
<PAGE>
2,556 Sidel S.A.** 608,172
1,714,870
Medical - Supplies - 2.1%
18,225 De Rigo S.p.A. (ADR)* 560,419
45,350 Getinge Industrier A.B. - Class B** 2,383,153
66,895 Hafslund Nycomed A.S. - Class A 1,966,661
80,043 Nobelpharma A.B.+,** 1,272,487
6,182,720
Metals - Diversified - 0.5%
40,021 Hoganas A.B. - Class B** 1,325,491
Mining - 0.2%
21,950 Petroleum Geo - Services A/S (ADR)* 694,169
Miscellaneous - Distribution and Wholesale - 0.3%
325 Amway Asia Pacific, Ltd. 9,709
32,325 Grupo Casa Autrey S.A. de C.V. (ADR) 739,434
749,143
Miscellaneous - Manufacturing - 4.5%
713,781 Assa-Abloy A.B. - Class B** 8,090,253
20,708 Barco N.V. 3,298,794
8,312 Orkla A/S - Class A 406,433
1,839 Sulzer A.G.** 1,239,310
13,034,790
Office and Business Equipment - 2.0%
206,000 Canon, Inc.** 4,080,762
19,250 Oce-Van Der Grinten N.V. 1,769,921
5,850,683
78
<PAGE>
Oil and Gas - Domestic - 1.5%
192,675 YPF Sociedad Anonima S.A. (ADR) 4,214,766
Pharmaceuticals - 9.8%
15,065 Astra A.B. - Class A** 668,595
2,720 Ciba-Geigy Corp. A.G.** 3,134,507
153,150 Eisai Co., Ltd.** 3,019,243
49,900 Eli Lilly & Co. 2,944,100
7,050 Pharmacia & Upjohn, Inc. 269,662
972 Roche Holding A.G.** 7,632,955
4,071 Sandoz A.G. - Class R** 4,426,210
348,613 SmithKline Beecham PLC - Class A** 3,700,916
20,350 SmithKline Beecham PLC -
Class A (ADR)** 1,098,900
74,000 Takeda Chemical Industries** 1,275,619
24,000 Yamanouchi Pharmaceutical Co., Ltd.** 566,857
28,737,564
Publishing - Newspaper - 0.6%
58,890 Aamulehti Yhtymae Oy - Series II** 1,492,567
32,676 EMAP PLC** 333,844
1,826,411
Publishing and Printing - 1.4%
289,006 Arnoldo Mondadori Editore S.p.A. 2,414,785
27,325 Harland (John H.) Co. 717,281
9,767 Wolters Kluwer N.V. 1,067,927
4,199,993
79
<PAGE>
Real Estate - 1.2%
406,000 Henderson Investment, Ltd. 354,289
1,082,000 Hongkong Land Holdings, Ltd. 2,315,480
51,000 Mitsubishi Estate Co., Ltd.** 714,000
8,000 Mitsui Fudosan Co.** 105,143
3,488,912
Restaurants and Food Services - 0.8%
182,447 Wetherspoon (J.D.) PLC** 2,433,125
Retail - Department Stores - 2.4%
139,600 Credit Saison Co., Ltd.** 3,443,467
45,000 Daimaru, Inc.** 353,571
62,000 Hankyu Department Store** 903,429
84,000 Isetan Co.** 1,240,000
532,000 PT Matahari Putra Prima 1,068,342
7,008,809
Retail - General Merchandise - 0.1%
17,000 Pao De Acucar S.A.+ 250,750
Retail - Grocery - 0.5%
23,000 Ito-Yokado Co., Ltd. 1,351,524
Retail - Special Line - 0.8%
3,785 OMV A.G.* 375,970
315,000 Pagnossin S.p.A.* 1,916,733
2,292,703
Services - Amusement and Recreation - 0%
2,868 Thorn EMI PLC** 79,629
Services - Computer Integrated Systems Design - 1.6%
80
<PAGE>
68,301 Getronics N.V. 4,744,786
Services - Computer Related Services - 1.1%
339,206 Merkantildata A.S. 3,332,742
Services - Information Retainment Services - 1.2%
29,401 Axime S.A.*,**,+ 3,622,522
Services - Prepackaged Software - 3.9%
207,986 JBA Holdings PLC** 1,592,144
185 NTT Data Communications
Systems Corp.** 6,448,571
52,133 Skrivervik Data A.S.* 917,219
64,348 TT Tieto Oy - Class B** 2,263,290
11,221,224
Shoes - 2.2%
82,756 Adidas A.G.** 6,300,529
Telecommunications - 3.6%
15,087 Korea Mobile Telecommunications,
Inc. (GDR)*,+ 859,959
106,000 Millicom International Cellular S.A.* 5,008,500
49,300 Paging Network, Inc.* 1,158,550
68,650 PT Indosat (ADR) 2,394,169
31,600 PT Telekomunikasi Indonesia (ADR)* 1,078,350
2,875 Telecom Argentina Stet S.A. (ADR) 130,094
10,629,622
Textiles - 1.2%
49,125 Gucci Group 2,671,172
132,888 Marzotto & Figli S.p.A. 944,792
3,615,964
81
<PAGE>
Tobacco - 1.6%
431,000 PT Hanjaya Mandala Sampoerna* 4,767,290
Transportation - Airlines - 1.0%
3,004 SwissAir A.G.*,** 2,964,140
Utilities - Electric - 0.4%
314,700 Consolidated Electric Power Asia,
Ltd. 520,757
77,688 Iberdrola S.A. 760,151
1,280,908
Utilities - Telecommunications - 2.0%
2,750 Compania de Telefonos de Chile (ADR) 250,937
1,061,970 CPT Telefonica del Peru S.A.
- Class B 2,372,867
38,550 Philippine Long Distance Telephone
Co. (ADR) 1,937,138
36,525 Telefonica de Argentina S.A. (ADR) 1,068,356
8,225 Telefonos de Mexico S.A. (ADR)
- Class L 279,650
5,908,948
Wholesale - Special Line - 0.8%
3,810 Gehe A.G.** 2,201,046
Total Common Stock (cost $226,132,064) 259,404,911
Preferred Stock - 3.5%
Auto and Truck - 0.7%
3,573 Porsche A.G.*,** 1,954,386
Brewery - 0.5%
2,973,000 Companhia Cervejaria Brahma 1,429,702
Financial - Bank Commercial - 0%
82
<PAGE>
392,000 Banco Bradesco S.A. 4,437
Medical - Supplies - 0.1%
2,140 Fresenius A.G.** 331,447
Services - Computer Processing and Data Preparation - 1.8%
40,358 SAP A.G.** 5,361,901
Telecommunications - 0%
5,000 Telecomunicacoes Brasileiras S.A. 271
Utilities - Electric - 0.4%
43,208,000 Companhia Energetica de Brasilia 1,089,021
Total Preferred Stock (cost $9,592,745) 10,171,165
Rights - 0.1%
106,227 Frontec A.B. - Class B* exp.
5/3/96** (cost $0) 353,386
U.S. Government Agencies - 8.0%
Federal Home Loan Mortgage Corp.:
$ 3,300,000 5.30%, 5/1/96 3,300,000
5,000,000 5.15%, 5/13/96 4,991,417
5,000,000 5.19%, 5/20/96 4,986,304
10,000,000 5.17%, 5/31/96 9,956,917
Total U.S. Government Agencies
(amortized cost $23,234,638) 23,234,638
Short-Term Corporate Note - 1.7%
Norwest Corp.
5,000,000 5.26%, 5/7/96 4,995,616
(amortized cost $4,995,616)
Total Investments - 102.1%
(total cost $263,955,063) 298,159,716
Liabilities, net of Cash,
83
<PAGE>
Receivables and Other Assets - (2.1%) (6,128,791)
Net Assets - 100% $292,030,925
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Argentina 1.8% $ 5,413,216
Australia 0.0% 45,490
Austria 0.7% 2,153,554
Belgium 2.0% 5,964,532
Brazil 0.8% 2,523,431
Chile 0.5% 1,372,400
Denmark 0.1% 411,098
Finland 1.4% 4,113,315
France 4.0% 11,787,851
Germany 8.5% 25,231,608
Hong Kong 2.2% 6,506,410
India 1.4% 4,212,026
Indonesia 3.2% 9,659,375
Italy 5.0% 14,748,124
Japan 13.5% 40,365,576
Korea 0.3% 859,959
Mexico 1.0% 3,050,035
Netherlands 5.2% 15,624,468
Norway 2.6% 7,582,217
Peru 0.8% 2,372,867
84
<PAGE>
Philippines 0.7% 1,937,138
Russia 0.0% 101,150
South Africa 0.3% 1,028,196
Spain 0.6% 1,900,608
Sweden 14.0% 41,695,227
Switzerland 7.3% 21,640,832
United Kingdom 7.8% 23,299,137
United States+ 14.3% 42,559,876
Total 100.0% $298,159,716
+Includes Short-Term Securities (4.6% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency
Currency Sold and Currency Value in Unrealized
Settlement Date Units Sold $ U.S. Gain/(Loss)
British Pound 7/25/96 1,358,000 $ 2,043,926 $ (277)
British Pound 8/22/96 3,650,000 5,491,790 103,624
British Pound 10/1/96 1,000,000 1,503,900 17,150
Finnish Markka 5/9/96 3,751,000 775,160 112,125
Finnish Markka 7/25/96 850,000 176,374 11,868
Finnish Markka 10/1/96 1,700,000 353,864 15,260
French Franc 9/12/96 2,220,000 431,814 10,514
French Franc 10/1/96 4,000,000 778,756 18,518
85
<PAGE>
German Deutschemark
7/11/96 800,000 524,659 18,450
German Deutschemark
7/17/96 7,000,000 4,592,573 67,569
German Deutschemark
7/25/96 14,623,000 9,599,554 353,123
Japanese Yen 8/8/96 850,000,000 8,093,257 76,363
Japanese Yen 8/22/96 160,000,000 1,523,464 32,956
Japanese Yen 9/17/96 1,020,000,000 9,712,417 222,269
Japanese Yen 10/1/96 500,000,000 4,761,080 25,717
Swedish Krona 5/23/96 27,606,000 4,054,221 (142,360)
Swedish Krona 7/25/96 21,000,000 3,080,986 (55,267)
Swedish Krona 8/22/96 84,500,000 12,393,846 (95,245)
Swiss Franc 5/9/96 1,671,000 1,344,220 156,319
Swiss Franc 10/1/96 8,500,000 6,942,742 292,223
$78,178,603 $1,240,899
JANUS TWENTY FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE REVIEW
Janus Twenty Fund gained 13.55% during the first half of
our fiscal year ended April 30, 1996. Results were in line with
the S&P 500 Index, which appreciated 13.76%. Both returns
include reinvested dividends.
Pharmaceutical, financial, and technology holdings all
contributed to returns. We took advantage of the decline in the
technology sector to add several companies that have
established dominant franchises in their respective markets.
Among these were Microsoft, Ascend Communications, and Cisco
Systems.
Returns were constrained by semiconductor manufacturers
Texas Instruments, Micron Technology, and LSI Logic.
86
<PAGE>
PORTFOLIO COMPOSITION
As of the end of April, the portfolio was 96% invested in
stocks, in line with the 96% that was invested when the year
began. Our substantial market commitment continues to reflect
the many individual opportunities we are finding among the
stocks we analyze. Foreign stocks made up 9.1% of assets,
compared to 13.9% at the end of October 1995, and are all
European companies. The portfolio remains concentrated: At year
end, the ten largest holdings were 45.9% of assets, and the top
twenty holdings equaled 75.2%.
Ten Largest Holdings April 30, 1996 October 31, 1995
Wells Fargo 8.3% -
First Data Corp. 4.7% 3.6%
Chase Manhattan 4.6% -
Merrill Lynch 4.5% 4.6%
Microsoft 4.2% -
Ascend Communications 4.1% -
Cisco Systems 4.0% 1.8%
Pfizer 4.0% 3.8%
Boeing 3.9% -
Citicorp 3.6% 5.9%
Top Five Industries April 30, 1996 October 31, 1995
Pharmaceuticals 14.5% 15.2%
Financial - Bank Commercial 8.3% 2.5%
Financial - Bank Money
Center 8.1% 11.5%
Beverages 6.4% 6.1%
Telecommunications Equipment 5.4% 1.1%
PORTFOLIO THEMES
Pharmaceuticals. Lilly, Amgen, Pfizer, and Roche have strong
product pipelines. We are especially excited about the prospects
for Eli Lilly, which is testing treatments for schizophrenia and
acute cardiovascular disease. Amgen's Epogen and Neupogen are
each billion dollar drugs that help the body increase red and
white blood cells. They are used primarily with cancer and
dialysis patients.
Financial Services. Two promising banking mergers were
completed on April 1. Wells Fargo acquired First Interstate, and
Chemical Bank bought Chase Manhattan. (Although Chemical Bank was
the acquirer, it chose to retain the name Chase Manhattan.) The
new banks will implement dramatic cost savings. The Wells Fargo
merger will unite Wells Fargo's highly effective commercial
lending operation with a low-cost, loyal deposit base - a
87
<PAGE>
combination that should provide Wells with an attractive spread
on loans. Wells Fargo already has a very efficient consumer
network that includes branches in grocery stores, as well as
electronic and Internet banking. The new Chase will take
advantage of synergies in such areas as corporate lending,
private banking, and custody operations. The merger also unites
two strong branch systems: one in the suburbs and surrounding
counties of New York City, the other in Manhattan. The cash flow
generated by the mergers should allow both banks to repurchase
stock.
Technology. In the technology sector, the focus is on
networking stocks, where demand for equipment and applications is
huge. Ascend Communications manufactures networking equipment and
Cisco Systems dominates the market for equipment that allows
large networks to communicate. Microsoft's new NT network
operating system is already garnering significant market share.
We sold Sun Microsystems after it reached our price target.
Special Situations. Boeing, Monsanto, and Nike were added.
Boeing is the dominant manufacturer of large commercial aircraft
and is benefiting from demand from China and other emerging
economies in Asia. Tremendous strides in productivity have
resulted in much shorter delivery times and improved margins.
Chemical giant Monsanto is cutting its more cyclical chemical
businesses and focusing on its very strong agricultural
technology operations, where it is a dominant market force. At
Searle, a Monsanto subsidiary, the pharmaceutical business is
picking up. Management at Monsanto has implemented programs to
add shareholder value, including a moderate stock repurchase
plan. Finally, Nike continues to outdistance the competition in
the athletic footwear and apparel market. Internationally, Nike's
shoe sales are growing at better than 40% and apparel sales in
the U.S. are up more than 80%.
CURRENT STRATEGY
Our strategy remains straightforward: to find good, long-term
growth ideas. On the whole, our economy is very healthy. U.S.
industry remains exceptionally competitive in the international
marketplace and a far-reaching wave of restructuring and cost-
control still shows substantial strength.
Stocks have just finished five excellent calendar quarters of
performance, in which prices have followed a very smooth course
to new records. A return to normal levels of market volatility
would not be unexpected. But entering the second half of the
year, the economy should expand at a steady, sustainable rate,
and, overall, provide a positive climate for stocks. If economic
growth slows from here, and further restrains corporate earnings,
88
<PAGE>
the stocks we own, which have the ability to consistently raise
their bottom line, should continue to be in strong demand.
Thank you for your investment in Janus Twenty Fund.
JANUS TWENTY FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Twenty Fund and the S&P 500 Index.
Janus Twenty Fund is represented by a solid teal line. The S&P
500 Index is represented by a single dashed black line. The "y"
axis reflects the value of the investment. The "x" axis reflects
the computation periods from inception, April 30, 1985, through
April 30, 1996. The upper right quadrant reflects the ending
value of the hypothetical investment in Janus Twenty Fund
($51,491) as compared to the S&P 500 Index ($51,262). There is a
legend in the upper left quadrant of the graph which indicates
Janus Twenty Fund's one-year, five-year, ten-year and since
inception (April 30, 1985) average annual total returns as
35.28%, 15.57%, 14.75% and 16.07%, respectively.
*The Fund's inception date Source - Lipper Analytical
Services, Inc. 1996. 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.
The Fund's portfolio may differ significantly from the securities
in the index. The index is unmanaged and therefore does not
reflect the cost of portfolio management or trading.
JANUS TWENTY FUND April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 94.8%
Aerospace and Defense - 3.9%
1,612,800 Boeing Co. $132,451,200
Beverages - 6.4%
1,204,600 Coca-Cola Co. 98,174,900
1,901,825 PepsiCo, Inc. 120,765,887
89
<PAGE>
218,940,787
Biopharmaceuticals - 3.3%
1,940,250 Amgen, Inc.* 111,564,375
Chemicals - 2.8%
623,925 Monsanto Co. 94,524,637
Computers - Peripheral Equipment - 4.0%
2,650,950 Cisco Systems, Inc.* 137,518,031
Electronics - 3.4%
585,000 Altera Corp. 30,858,750
720,625 Hewlett-Packard Co. 76,296,172
207,500 StrataCom, Inc.* 10,790,000
117,944,922
Financial - Bank Commercial - 8.3%
1,170,816 Wells Fargo & Co. 284,069,233
Financial - Bank Money Center - 8.1%
2,269,450 Chase Manhattan Corp. 156,308,369
1,546,350 Citicorp 121,775,063
278,083,432
Financial - Security Broker - 5.0%
2,550,500 Merrill Lynch & Co., Inc. 153,986,437
745,575 Schwab (Charles) Corp. 18,266,588
172,253,025
Financial Services - 4.3%
3,008,675 Federal National Mortgage
Association $ 92,140,672
759,825 Student Loan Marketing Association 55,657,181
90
<PAGE>
147,797,853
Insurance - Life - 1.0%
498,700 Aetna Life & Casualty Co. 35,532,375
Medical - Biotechnology - 1.1%
706,725 Medtronic, Inc. 37,544,766
Office and Business Equipment - 1.0%
719,575 Danka Business Systems PLC (ADR)** 34,539,600
Pharmaceuticals - 14.5%
120,200 Centocor, Inc.* 4,808,000
1,993,725 Eli Lilly & Co. 117,629,775
788,750 Merck and Co., Inc. 47,719,375
1,985,020 Pfizer, Inc. 136,718,253
12,891 Roche Holdings A.G.** 101,230,892
7,865,286 SmithKline Beecham PLC - Class A** 83,498,745
123,875 SmithKline Beecham PLC
- Class A (ADR)** 6,689,250
498,294,290
Publishing - Newspaper - 1.0%
567,000 Reuters Holdings PLC** 6,425,180
387,775 Reuters Holdings PLC (ADS)** 26,223,284
32,648,464
Restaurants and Food Services - 3.5%
1,919,040 Lone Star Steakhouse & Saloon,
Inc.*,# 79,400,280
882,600 McDonald's Corp. 42,254,475
121,654,755
91
<PAGE>
Retail - Drug Stores - 0.7%
1,775,000 Thrifty PayLess Holdings - Class B* 23,962,500
Services - Computer Processing and Data Preparation - 4.7%
2,121,900 First Data Corp. $ 161,264,400
Services - Prepackaged Software - 4.2%
1,266,175 Microsoft Corp.* 143,552,591
Shoes - 4.6%
853,075 Fila Holding S.p.A. (ADR) 58,222,369
1,156,050 Nike, Inc. - Class B 101,154,375
159,376,744
Telecomunications Equipment - 5.4%
2,262,225 Ascend Communications, Inc.* 139,126,837
300,000 U.S. Robotics, Corp.* 46,950,000
186,076,837
Transportation - Airlines - 3.6%
644,125 AMR Corp.* 57,488,156
307,500 UAL Corp.* 65,958,751
123,446,907
Total Common Stock (cost $2,686,305,129) 3,253,041,724
Preferred Stock - 1.2%
Financial Services - 1.2%
651,000 American Express Co. Exchange Notes, 6.25%
(cost $30,862,833) 40,606,125
Corporate Bonds - 1.2%
92
<PAGE>
Homebuilders - 1.2%
$40,860,000 M.D.C. Holdings, Inc., 11.125%
senior notes, due 12/15/03
(cost $37,468,849) 39,634,200
U.S. Government Agencies - 2.5%
Federal Home Loan Mortgage Corp.
36,200,000 5.30%, 05/01/96 36,200,000
Federal National Mortgage Association
50,000,000 5.17%, 5/21/96 49,856,389
Total U.S. Government Agencies
(amortized cost $86,056,389) 86,056,389
Time Deposit - 1.3%
First Union National Bank of North Carolina
45,000,000 5.31%, 5/1/96, (cost $45,000,000) 45,000,000
Repurchase Agreement - 0.0%
State Street Bank & Trust Co., 4.75%,
1,000,000 dated 4/30/96, maturing 5/1/96, to be
repurchased at $1,000,132, collateralized
by $1,450,000 in U.S. Treasury Notes,
5.06%, due 10/3/96, value $1,021,906
(cost $1,000,000) 1,000,000
Total Investments - 101%
(total cost $2,886,693,200) 3,465,338,438
Liabilities, net of Cash, Receivables
and Other Assets - (1.0%) (35,869,829)
Net Assets - 100% $3,429,468,609
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Italy 1.7% $ 58,222,369
Switzerland 2.9% 101,230,892
United Kingdom 4.5% 157,376,059
93
<PAGE>
United States+ 90.9% 3,148,509,118
Total 100.0% $3,465,338,438
+Includes Short-Term Securities (87.1% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain
British Pound 6/28/96 67,005,000 $100,889,429 $1,058,679
Swiss Franc 7/15/96 30,000,000 24,303,305 1,397,029
Swiss Franc 8/8/96 30,035,000 24,392,918 1,544,042
Swiss Franc 8/22/96 48,204,000 39,206,181 2,114,705
$188,791,833 $6,114,455
94
<PAGE>
JANUS VENTURE FUND Portfolio Managers, James P. Goff
and Warren B. Lammert
PERFORMANCE REVIEW
Small stocks posted a succession of records during the
first half of our fiscal year ended April 30, 1996. Janus
Venture Fund appreciated 15.66% for the six-month period,
while the Russell 2000 gained 18.47%. Both returns include
reinvested dividends.
Although the Fund did not catch the Index during the six
months, a number of individual positions, in a wide range of
industries, performed exceptionally well. Itron (electric
meter reading), Heritage Media (radio and tv stations),
Wisconsin Central (railroads), J.D. Wetherspoon (British
pubs), Sealed Air (packaging), Keane (software consulting),
and J.P. Food Service (food distributors) were among these
excellent individual performers, all of which rose 30% or
more. Itron was the biggest overachiever, gaining more than
100%. We also made some good choices in technology, where
many areas were hard-hit during the period. By avoiding
manufacturers and instead focusing on networking companies,
software developers and applications consultants, we were
able to generate good returns.
Among stocks that disappointed during the first half
were Minerals Technology (paper additive), Arch
Communications (cellular services), SAP (integrated business
software), and R.P. Scherer (drug delivery systems). We also
liquidated Exide (automotive batteries) and sold the
remaining position in Nokia (cellular equipment).
COMPOSITION OF THE PORTFOLIO
On April 30, the Fund was 98.8% invested in equities, up
from 93.9% when the year began. The climate for smaller
businesses remains excellent and we continue to find many
good ideas. Foreign stocks made up 7.5% of the portfolio,
down from 11.0% at the end of October 1995, and were mostly
in Europe. The ten largest positions accounted for 24.6% of
assets. This relatively low percentage is indicative of the
Fund's diversified investment approach.
Ten Largest Holdings April 30, 1996 October 31, 1995
Wisconsin Central 5.1% 4.2%
Paging Network 4.4% 4.3%
Papa John's International 2.6% 1.6%
Minerals Technology 2.5% 2.9%
First Empire State 2.1% 2.2%
95
<PAGE>
Arch Communications 1.7% 2.0%
Heritage Media Corp. 1.7% 1.4%
SAP AG 1.6% 3.3%
Bell & Howell 1.5% 1.0%
O'Reilly Automotive 1.4% 0.4%
Top Five Industries April 30, 1996 October 31, 1995
Telecommunications 10.6% 11.3%
Medical - Supplies 6.3% 7.0%
Retail - Special Line 5.9% 1.9%
Commercial Services 5.7% 0.8%
Restaurants and Food Services 5.1% 4.2%
PORTFOLIO THEMES
Technology-Related. The demand for software systems and
network applications is explosive. Bell & Howell, which develops
data base software, Stratacom, Glenayre Technologies, Macromedia,
and Westell are all benefiting. In the area of electronic
automation, Itron makes a device that reads utility meters
electronically from a vehicle driving down the street.
Telecommunications. Cellular services also continue to be in
great demand. Although equipment manufacturers such as Nokia have
trailed the market recently, CommNet Cellular, Arch
Communications, PriCellular, 360 Degree Communications, and other
wireless service companies are prospering, as is Omnipoint, which
develops personal communications systems (PCS).
Medical and Pharmaceuticals. Innovations in medical equipment
and drug therapies can cut costs and improve therapies. We own a
constellation of companies with specialized drug delivery
systems, including R.P. Scherer, TheraTech, DepoTech, and Matrix
Pharmaceutical. Among our small drug companies are Centocor,
which has helped develop, in conjunction with Eli Lilly, an
exciting new drug for the treatment of acute heart disease, and
NeXstar Pharmaceuticals, which has a novel cancer treatment in
development and an anti-fungal drug on the market. Omnicare
supplies pharmaceuticals to long-term care facilities.
Outsourcers. The practice of farming out data processing,
computer, and personnel operations to specialized vendors
continues to expand globally. Keane, Analysts International,
Medaphis, Fiserv, Technology Solutions, and Accustaff serve
various sectors of the market.
Niche Retailers. This eclectic group of specialty retailers
encompasses Baby Superstore, General Nutrition Companies, Global
DirectMail, Petco Animal Supplies, and Renter's Choice, a rent-
96
<PAGE>
to-own furnishings company that is growing amidst industry
consolidation.
Banking and Financial Services. Low interest rates and
consumer demand for credit have lifted profits at banks,
insurance, and consumer loan companies. First Empire State is a
conservatively run bank in upstate New York that is repurchasing
stock, as is Klamath First Bancorp. Thrifts and consumer loan
companies are represented by World Acceptance Corp., Jayhawk
Acceptance, Coast Savings Financial, and AmeriCredit. We sold
Credit Acceptance. Protective Life, PennCorp Financial, and
Liberty Financial make up our small insurers.
STRATEGY GOING FORWARD
Despite a divergence between stock and bond prices, small
stocks are enjoying a powerful rally. However, our research
effort is aimed at uncovering growth stocks that can increase
revenues and earnings in a wide range of economic circumstances,
with, and without, the wind at their back in the market. As long
as we continue to find excellent individual ideas, we will remain
enthusiastic buyers.
Thank you for your continued investment in Janus
Venture Fund.
JANUS VENTURE FUND Portfolio Managers, James P. Goff
and Warren B. Lammert
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Venture Fund and the Russell 2000
Index. Janus Venture Fund is represented by a solid teal line.
The Russell 2000 Index is represented by a single dashed black
line. The "y" axis reflects the value of the investment. The
"x" axis reflects the computation periods from inception,
April 30, 1985, through April 30, 1996. The upper right quadrant
reflects the ending value of the hypothetical investment in Janus
Venture Fund ($62,996) as compared to the Russell 2000 Index
($37,272). There is a legend in the upper left quadrant of the
graph which indicates Janus Venture Fund's one-year, five-year,
ten-year and since inception (April 30, 1985) average annual
total returns as 34.91%, 16.52%, 16.51% and 18.21%, respectively.
*The Fund's inception date Source - Lipper Analytical
Services, Inc. 1996. All returns reflect reinvested dividends.
Past performance is not predictive of future performance.
Investment return and principal value may fluctuate so that
97
<PAGE>
shares, when redeemed, may be worth more or less than their
original cost.
The Fund's portfolio may differ significantly from the
securities in the index. The index is unmanaged and therefore
does not reflect the cost of portfolio management or trading.
JANUS VENTURE FUND
April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 96.6%
Advertising - 0.1%
124,500 Outdoor Systems, Inc. $ 2,863,500
Auto Parts - Replacement - 1.2%
1,057,500 APS Holding Corp. - Class A*,# 19,299,375
100,000 Custom Chrome, Inc.* 2,725,000
50,000 Kaydon Corp. 1,987,500
24,011,875
Biopharmaceuticals - 0.5%
410,900 NeXstar Pharmaceuticals, Inc.* 10,067,050
Broadcasting, Radio and Television - 2.6%
385,000 All American Communicatons,
Inc. - Class B*,# 3,272,500
450,000 Children's Broadcasting Corp.*,# 3,768,750
419,700 Heartland Wireless
Communications, Inc.* 11,699,137
835,925 Heritage Media Corp. - Class A*,# 32,078,622
50,819,009
Building Materials - 0.2%
100,000 NCI Building Systems, Inc.* 3,625,000
98
<PAGE>
Business Credit - 0.4%
557,500 Jayhawk Acceptance Corp.* 7,317,188
50,000 WFS Financial, Inc.* 1,000,000
8,317,188
Captive Finance - Auto - 0.1%
150,700 Union Acceptance Corp. - Class A* 2,335,850
Chemicals - 0.7%
327,900 Cambrex Corp. 14,099,700
Commercial Services - 5.7%
233,500 AccuStaff, Inc.* 6,946,625
386,050 AMRE, Inc.* 7,238,438
108,125 Apollo Group, Inc. - Class A* 4,757,500
10,000 Barrett Business Services, Inc.* 175,000
102,500 Career Horizons, Inc.* 3,613,125
30,000 Central Parking Corp. 840,000
235,000 Childtime Learning Centers* 2,291,250
400,000 CUC International, Inc.* 13,150,000
50,000 DeVRY, Inc.* 1,862,500
207,002 Loewen Group, Inc. 6,196,071
321,250 Medaphis Corp.* 14,817,656
176,500 Omnicare, Inc. 10,590,000
150,000 PIA Merchandising Services, Inc.*,# 3,937,500
313,600 Primark Corp.* 11,132,800
1,462,366 Rentokil Group PLC** 8,461,975
290,500 Rent-Way, Inc.*,# 3,685,719
45,000 SITEL Corp.* 2,486,250
99
<PAGE>
68,200 Superior Services, Inc.* 954,800
65,000 Sylvan Learning Systems, Inc.* 2,518,750
169,000 Vallen Corp.* 3,464,500
32,100 York Group, Inc. (The)* 589,837
109,710,296
Communication Services - 0.1%
142,400 Lodgenet Entertainment Corp.* 1,904,600
Computers - 0.4%
41,700 Fair Issac & Co., Inc. 1,772,250
248,950 Technology Solutions Co.* 6,721,650
8,493,900
Computers - Communications Equipment - 0.4%
418,775 Black Box Corp.* 8,375,500
Computers - Peripheral Equipment - 0.1%
30,000 Security Dymanics Technologies,
Inc.* 2,535,000
Electrical Equipment - 1.1%
50,000 ADFlex Solutions, Inc.* 825,000
23,900 FORE Systems, Inc.* 1,888,100
523,000 Littelfuse, Inc.*,# 19,612,500
22,325,600
Electronics - 4.1%
109,300 Altera Corp.* 5,765,575
142,600 Franklin Electronic
Publishers, Inc.* 3,582,825
419,050 Itron, Inc.* 24,619,188
381,125 Macromedia, Inc.* 14,363,648
100
<PAGE>
112,262 Pittway Corp. - Class A 5,360,510
262,675 StrataCom, Inc.* 13,659,100
296,500 Verifone, Inc.* 12,453,000
79,803,846
Electronics - Components and Accessories - 0.1%
30,000 Sterling Commerce, Inc.* 1,050,000
Electronics - Computers - 0.1%
50,000 Data Translation, Inc.* 1,212,500
Electronics - Semiconductors - 0.2%
137,412 Analog Devices, Inc.* 3,538,359
36,775 Galileo Electro-Optics Corp.* 928,569
4,466,928
Engineering and Construction - 0.5%
4,761 Metra Oy - A** 197,008
216,141 Metra Oy - B** 9,077,985
9,274,993
Environmental Control - 1.0%
521,125 Culligan Water Technologies, Inc.* 17,587,969
165,100 Philip Environmental, Inc.* 1,341,438
18,929,407
Financial - Bank Commercial - 2.1%
200,000 Banca Popolare di Milano*,** 918,367
8,500 Cascade Bancorp* 163,625
167,750 First Empire State Corp. 39,924,500
41,006,492
101
<PAGE>
Financial - Mortgage Related - 0.4%
200,000 AMRESCO, Inc.* 3,425,000
191,000 First Financial Caribbean Corp. 4,106,500
7,531,500
Financial - Savings/Loan/Thrift - 2.7%
250,000 Coast Savings Financial, Inc.* 7,781,250
152,525 First Savings Bank of
Washington Bancorp, Inc. 2,306,941
100,000 GA Financial, Inc.* 1,112,500
342,500 Glendale Federal Bank FSB* 5,993,750
100,000 Greenpoint Financial Corp. 2,887,500
510,425 HFNC Financial Corp.* 7,145,950
145,500 Imperial Thrift & Loan Association* 2,091,563
200,000 ISB Financial Corp. 3,100,000
869,000 Klamath First Bancorp, Inc.# 11,948,750
20,000 Long Island Bancorp, Inc. 555,000
37,000 Norwalk Savings Society 788,562
500,000 PFF Bancorp, Inc.* 5,750,000
51,461,766
Food Processing - 0.2%
59,873 Cultor Oy - Series I** 2,539,459
275,000 La Doria S.p.A.** 1,191,769
3,731,228
Food Wholesale - 1.4%
928,550 J.P. Foodservice, Inc.*,# 20,660,238
206,000 Richfood Holdings, Inc. 6,720,750
102
<PAGE>
27,380,988
Furniture and Home Appliances - 0.4%
311,000 Singer Company N.V. (The) 8,047,125
Hand Machine - Tools - 0.1%
332,000 Gildemeister Italiana S.p.A.*,** 1,211,042
Homebuilders - 0.4%
193,425 D.R. Horton, Inc.* 1,934,250
320,775 Southern Energy Homes, Inc.*,# 5,653,659
7,587,909
Insurance - Life - 2.4%
10,200 CompDent Corp.* 451,350
305,625 Liberty Financial Companies, Inc. 10,162,031
427,775 PennCorp Financial Group, Inc. 13,100,610
475,475 Protective Life Corp. 16,522,756
100,000 RISCORP, Inc. - Class A* 2,362,500
20,175 Sunamerica, Inc. 1,099,538
100,275 United Insurance Companies, Inc.* 2,118,309
45,817,094
Insurance - Multiline - 0.4%
107,775 Foremost Corp. of America* 5,765,963
40,000 United Dental Care, Inc.* 1,570,000
7,335,963
Insurance - Property and Casualty - 0.1%
32,400 Executive Risk, Inc. 1,004,400
103
<PAGE>
Iron and Steel - 0.1%
182,693 SSAB Svenskt Stal A.B. - Class A 2,245,509
Leisure Time - 1.1%
55,500 Family Golf Centers, Inc.* 1,581,750
40,881 Fotolabo S.A.** 18,739,180
75,000 Tom Cobleigh PLC*,** 244,118
20,565,048
Lodging - 1.0%
267,550 HFS, Inc.* 13,745,381
165,800 Renaissance Hotel Group N.V.* 3,150,200
121,400 StudioPLUS Hotels, Inc.* 3,368,850
20,264,431
Machinery - Diversified - 0.3%
450,000 Westinghouse Air Brake Co. 6,356,250
Medical - Biotechnology - 1.6%
190,275 Arterial Vascular Engineering, Inc.* 8,372,100
399,525 DepoTech Corp.* 9,788,363
135,000 Integra Lifesciences Corp.* 1,721,250
396,300 KeraVision, Inc.* 6,291,262
100,000 Lifecore Biomedical, Inc.* 1,825,000
92,500 Protein Design Labs, Inc.* 2,451,250
30,449,225
Medical - Hospital Management Services - 2.8%
102,375 ABR Information Services, Inc.* 6,398,438
300,000 ARV Assisted Living, Inc.* 5,550,000
105,800 Laser Vision Centers, Inc.* 1,507,650
104
<PAGE>
423,750 MedPartners/Mullikin, Inc.* 12,235,781
165,925 Oxford Health Plans, Inc.* 8,379,213
103,900 PHP Healthcare Corp.* 3,168,950
265,000 PhyCor, Inc.* 13,051,250
100,000 Veterinary Centers of America, Inc.* 3,050,000
53,341,282
Medical - Supplies - 6.3%
251,900 Arrow International, Inc. 9,950,050
48,550 AVECOR Cardiovascular, Inc.* 619,013
148,200 Coherent, Inc.* 7,947,225
122,175 Cohr, Inc.* 2,718,394
446,575 Exogen, Inc.* 3,907,531
250,000 Gulf South Medical Supply, Inc.* 10,125,000
301,400 Heartport, Inc.* 10,775,050
658,525 ICU Medical, Inc.*,# 12,666,316
100,000 INAMED Corp.* 1,037,500
206,000 Intelligent Medical Imaging, Inc.* 2,060,000
233,000 Landauer, Inc.# 4,863,875
75,000 Meridian Diagnostics, Inc. 712,500
458,000 MiniMed, Inc.* 9,389,000
250,000 Respironics, Inc.* 5,464,844
333,000 Safeskin Corp.* 9,740,250
90,000 Sano Corp.* 1,518,750
302,325 Sofamor Danek Group, Inc.* 9,901,143
130,950 STERIS Corp.* 4,255,875
141,250 Target Therapeutics, Inc.* 7,662,812
105
<PAGE>
200,000 Ultrafem, Inc.* 2,925,000
314,025 VidaMed, Inc.* 3,415,022
121,655,150
Mining - 2.5%
1,257,845 Minerals Technologies, Inc.# 48,427,033
Miscellaneous - Business Credit - 0.1%
11,025 AT & T Capital Corp. 428,597
Miscellaneous - Distribution and Wholesale - 0.1%
64,050 Amway Asia Pacific, Ltd. 1,913,494
Miscellaneous - Manufacturing - 1.3%
350,000 ABC Rail Products, Corp.*,# 8,443,750
675,000 Lydall, Inc.* 15,862,500
16,100 Trigen Energy Corp. 313,950
24,620,200
Office and Business Equipment - 0.4%
178,850 Danka Business Systems PLC (ADR)** 8,584,800
Office Machines - 1.5%
926,500 Bell & Howell Co.*,# 29,184,750
Oil and Gas - Equipment and Services - 0.1%
55,000 Carbo Ceramics, Inc.* 1,182,500
Packaging and Containers - 1.9%
144,900 Intertape Polymer Group, Inc. 6,194,475
200,000 Liqui-Box Corp. 6,000,000
681,650 Sealed Air Corp.* 24,113,369
36,307,844
106
<PAGE>
Personal Credit - 1.4%
16,000 ADVANTA Corp. - Class B 802,000
553,425 AmeriCredit Corp.* 7,955,484
199,675 Credit Acceptance Corp.* 3,743,906
1,505,000 World Acceptance Corp.*,# 14,861,875
27,363,265
Pharmaceuticals - 2.2%
459,500 Centocor, Inc.* 18,380,000
224,725 ChiRex, Inc.* 2,752,881
210,000 GalaGen, Inc* 1,890,000
38,400 Guilford Pharmaceuticals, Inc.* 979,200
280,550 Matrix Pharmaceutical, Inc.* 7,294,300
54,175 NeoRx Corp.* 385,997
100,000 PathoGenesis Corp.* 1,800,000
12,475 QLT Phototherapeutics, Inc.* 255,738
56,975 R.P. Scherer Corp.*,# 2,250,512
302,000 TheraTech, Inc.* 6,946,000
42,934,628
Publishing and Printing - 0.8%
12,500 ATC Communications Group, Inc.* 171,875
61,450 Harland (John H.) Co. 1,613,062
99,835 Scientific Games Holdings Corp.*,# 3,269,596
400,000 World Color Press, Inc.* 9,600,000
14,654,533
107
<PAGE>
Restaurants and Food Services - 5.1%
554,450 Lone Star Steakhouse &
Saloon, Inc.* $ 22,940,369
1,016,513 Papa John's International, Inc.*,# 50,126,797
633,981 PizzaExpress PLC** 3,334,157
19,300 Planet Hollywood
International, Inc. - Class A* 489,737
51,600 Rainforest Cafe, Inc.* 1,909,200
1,561,393 Wetherspoon (J.D.) PLC**,+ 20,822,852
99,623,112
Retail - Department Stores - 0.8%
758,500 Renters Choice, Inc.* 16,307,750
Retail - Grocery - 0.1%
77,600 Casey's General Stores, Inc. 1,673,250
Retail - Special Line - 5.9%
281,775 Baby Superstore, Inc.* 12,820,762
34,000 Fastenal Co. 1,300,500
77,500 Garden Ridge Corp.* 4,301,250
889,900 General Nutrition Companies, Inc.* 17,353,050
433,050 Global DirectMail Corp.* 16,997,213
150,000 MSC Industrial Direct Co.,
Inc. - Class A* 5,456,250
687,275 O'Reilly Automotive, Inc.*,# 26,975,544
648,442 Pagnossin S.p.A.*,** 3,945,684
234,537 Petco Animal Supplies, Inc.* 6,742,953
250,000 Sunglass Hut International, Inc.* 7,312,500
170,025 Viking Office Products, Inc.* 10,095,234
108
<PAGE>
24,000 Wilmar Industries, Inc.* 570,000
55,000 Yates Brothers Wine Lodges PLC** 333,176
114,204,116
Services - Amusement and Recreation - 0.3%
145,675 Anchor Gaming* 6,437,014
Services - Business Services - 0.1%
11,275 Sykes Enterprises, Inc.* 400,263
Services - Computer Integrated Systems Design - 1.9%
171,775 America Online, Inc.* 10,993,600
100,000 FileNet Corp.* 5,600,000
200,000 Getronics N.V.** 13,893,754
95,000 LanVision Systems, Inc.* 1,745,625
138,000 Meridian Data, Inc.* 2,397,750
100,000 Quality Systems, Inc.* 2,175,000
36,805,729
Services - Computer Processing and Data Preparation - 1.2%
175,725 Acxiom Corp.* 4,832,437
336,650 Fiserv, Inc.* 10,267,825
228,975 SunGard Data Systems, Inc.* 7,613,419
22,713,681
Services - Computer Programming and Data Processing - 1.1%
155,400 American Management Systems, Inc.* 4,137,525
440,450 Analysts International Corp.# 16,626,988
20,764,513
109
<PAGE>
Services - Computer Programming Services - 1.1%
536,150 Keane, Inc.*,# 21,110,906
3,900 National TechTeam, Inc.* 33,881
21,144,787
Services - Computer Rental and Leasing - 0.1%
32,100 CIBER, Inc.* 1,275,975
Services - Computer Repair - 0.2%
150,000 DecisionOne Holdings Corp.* 3,787,500
Services - Information Retainment Services - 0.5%
496,100 American Business Information, Inc.* 9,673,950
20,125 QuickResponse Services, Inc.* 588,656
10,262,606
Services - Motion Picture Theaters - 0.2%
100,000 Imax Corp.* 3,325,000
Services - Prepackaged Software - 1.8%
72,500 Comshare, Inc.* 1,740,000
16,300 Fulcrum Technologies, Inc.* 586,800
418,800 Integrated Systems, Inc.* 12,249,900
68,350 Intuit, Inc.* 3,554,200
33,450 McAfee Associates, Inc.* 2,048,813
29,925 Netscape Communications Corp.* 1,825,425
52,000 Planning Sciences International
PLC (ADR)** 1,254,500
30,000 Prism Solutions, Inc.* 978,750
6,991 TT Tieto Oy - Class B** 245,892
141,400 Wonderware Corp.* 3,181,500
110
<PAGE>
263,500 Workgroup Technology Corp.* 6,916,875
34,582,655
Services - Racing and Track Operations - 0.6%
480,000 Speedway Motorsports, Inc.* 12,840,000
Shoes - 0.4%
253,375 Wolverine World Wide, Inc. 7,822,953
Telecommunications - 10.6%
772,575 360 Degree Communications Co.* 18,155,512
1,385,725 Arch Communications Group, Inc.*,# 32,910,968
757,600 CommNet Cellular, Inc.*,# 25,000,800
42,100 Computer Telephone Corp. - Class 1* 505,200
125,000 MobileMedia Corp.* 2,500,000
500,000 Omnipoint Corp. 15,000,000
3,617,725 Paging Network, Inc.* 85,016,536
300,000 Premiere Technologies, Inc.* 11,325,000
984,281 PriCellular Corp. - Class A*,# 12,918,688
95,000 Rural Cellular Corp. - Class A* 1,163,750
204,496,454
Telecommunications Equipment - 1.9%
30,425 Adtran, Inc.* 1,612,525
155,000 Digital Systems International, Inc.* 3,061,250
280,250 Glenayre Technologies, Inc.* 13,031,625
110,525 Premysis Communications, Inc.* 4,835,469
185,000 Spectralink Corp.* 1,734,375
111
<PAGE>
177,000 Westell Technologies,
Inc. - Class A* 12,721,875
36,997,119
Telephone and Telegraph Apparatus - 0.1%
14,175 PairGain Technologies, Inc.* 1,353,713
Tobacco - 0.3%
69,000 Papastratos Cigarettes S.A. 2,097,532
263,500 PT Hanjaya Mandala Sampoerna* 2,914,573
5,012,105
Toys - 0.3%
25,000 Equity Marketing, Inc.* 321,875
251,075 Galoob (Lewis) Toys, Inc.* 5,335,344
69,100 Play By Play Toys & Novelties, Inc. * 881,025
6,538,244
Transportation - Airlines - 0.5%
291,700 Midwest Express Holdings, Inc.* 9,589,637
Transportation - Railroad - 5.1%
1,159,175 Wisconsin Central Transportation
Corp.*,# 97,950,288
Trucking and Leasing - 0.1%
75,000 Celadon Group, Inc.* 993,750
Utilities - Telecommunications - 0.5%
188,600 Cincinnati Bell, Inc. 9,288,550
Wholesale - Special Line - 0.1%
25,000 Barnett, Inc.* 587,500
85,500 Sodak Gaming, Inc.* 2,201,625
2,789,125
112
<PAGE>
Total Common Stock (cost $1,381,146,831) 1,865,795,677
Preferred Stock - 2.0%
Services - Computer Processing and Data Preparation - 1.6%
233,795 SAP A.G.** $ 31,061,641
Real Estate Investment Trust - 0.4%
500,000 Prime Retail, Inc. 8,625,000
Total Preferred Stock (cost $28,907,479) 39,686,641
Warrants - 0.2%
105,125 Littelfuse, Inc. - exp. 12/31/01*
(cost $1,822,564) 3,127,469
Short-Term Corporate Note - 1.8%
General Electric Capital Corp.
$34,400,000 5.30%, 5/1/96 (amortized
cost $34,400,000) 34,400,000
Total Investments - 100.6% (total cost
$1,446,276,874) 1,943,009,787
Liabilities, net of Cash, Receivables and Other Assets -
(0.6%) (11,998,562)
Net Assets - 100% $1,931,011,225
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Canada 0.6% $ 12,390,546
Finland 0.6% 12,060,343
Germany 1.6% 31,061,641
Greece 0.1% 2,097,531
Indonesia 0.2% 2,914,573
Italy 0.4% 7,266,862
Netherlands 0.7% 13,893,753
113
<PAGE>
Sweden 0.1% 2,245,509
Switzerland 1.0% 18,739,179
United Kingdom 2.2% 43,035,577
United States+ 92.5% 1,797,304,273
Total 100.0% $1,943,009,787
+Includes Short-Term Securities (90.7% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
British Pound
6/28/96 2,977,000 $ 4,482,468 $44,119
British Pound
7/15/96 6,925,000 10,424,203 19,563
British Pound
7/24/96 1,400,000 2,107,140 12,460
Dutch Guilder
7/24/96 1,400,000 822,562 5,596
Dutch Guilder
9/12/96 17,350,000 10,234,177 370,309
Finnish Markka
5/9/96 6,916,000 1,429,221 207,470
Finnish Markka
7/24/96 2,000,000 414,972 2,042
Finnish Markka
7/25/96 31,285,000 6,491,607 437,480
German Deutschemark
6/13/96 13,000,000 8,510,081 550,731
German Deutschemark
6/28/96 11,777,000 7,717,056 283,623
114
<PAGE>
German Deutschemark
8/8/96 7,936,000 5,214,535 213,275
German Deutschemark
8/12/96 1,000,000 657,246 25,320
Italian Lira
7/24/96 1,750,000,000 1,111,526 6,078
Italian Lira
9/12/96 5,975,000,000 3,780,389 (26,423)
Swiss Franc 9/12/96 11,800,000 9,618,520 416,773
$73,015,703 $2,568,416
JANUS WORLDWIDE FUND Portfolio Manager,
Helen Young Hayes
PERFORMANCE REVIEW
Many foreign markets registered significant returns during
the first half of our fiscal year ended April 30, 1996. Janus
Worldwide Fund gained 22.52% for the six-month period, nicely
outdistancing the Morgan Stanley International World Index, which
was up 13.37% for the same period. Both returns include net
dividends reinvested.(1)
For the 12 months ended April 30, Janus Worldwide Fund's
total return ranked in the top 8% of global funds tracked by
Lipper Analytical Services, a mutual fund rating company. The
Fund was 10th out of 133 funds in Lipper's Global Fund
category.(2)
Once again, stockpicking made the difference in performance.
In Europe, our growth stocks were exceptionally strong: Kinnevik,
Nutricia, and Securitas in Sweden, Dutch software consultant
Getronics, and European drug companies Sandoz and Ciba-Geigy were
all up more than 30%. In Japan, NTT Data gained almost 40%.
SAP, which has been a terrific performer in the past,
declined during the period, as did selected Japanese holdings,
including Kyocera, DDI Corp., Rohm, and Hitachi.
Global Markets. European markets were sparked by a decline in
interest rates. Despite the rise in the dollar, which
strengthened the European export picture, many of those economies
remained weak, inhibited by high unemployment and government
regulation. One very positive development, however, was that more
European companies are beginning to model operations on the U.S.
115
<PAGE>
Business is becoming more performance-driven, and management now
has incentives that emphasize profits and attention to
shareholder value.
In the Far East and in emerging economies such as Latin
America, growth has been relatively slow, but began to pick up
during the period. Japan has been hardest hit, and is recovering
from a deep recession. Markets in these regions responded to
better business activity.
COMPOSITION OF THE PORTFOLIO
On April 30, the portfolio was approximately 93% invested in
equities, down only slightly from 94% when the year began.
European stocks accounted for 48.6% of assets, up from 45.1%, and
the Pacific Rim was 20.2% versus 26.6%, of which Japan was 14.5%,
compared to 16.6% at the end of October 1995. The largest ten
positions made up 24.3% of the portfolio.
(1) Net dividends reinvested are the dividends that remain to
be reinvested after foreign tax obligations have been met. Such
obligations vary from country to country.
(2) A Global Fund is defined by Lipper as one "which invests
at least 25% of its portfolio in securities traded outside the
United States and may own U.S. securities as well." This ranking
is based on total return, including reinvested dividends and
capital gains for the stated period. Past performance is not
predictive of future results.
Ten Largest Holdings April 30, 1996 October 31, 1995
Kinnevik 3.5% 5.1%
IBM 2.6% -
NTT Data Communications 2.6% 2.6%
Roche Holdings 2.4% 3.3%
Hoechst AG 2.4% -
Securitas 2.4% 1.9%
Adidas 2.3% -
HFS, Inc. 2.2% 2.6%
SAP AG 2.0% 3.3%
Nutricia 1.9% -
Top Five Industries April 30, 1996 October 31, 1995
Pharmaceuticals 11.0% 11.8%
Holding Companies -
Diversified 6.7% 7.8%
Commercial Services 5.7% 2.4%
Auto and Truck 4.2% 2.2%
Chemicals 3.3% 0.1%
116
<PAGE>
PORTFOLIO THEMES
Pharmaceuticals. The merger of Sandoz and Ciba-Geigy will
generate tremendous cost savings. In the U.S., Eli Lilly is
testing new treatments for schizophrenia and acute cardiovascular
disease. Astra was trimmed.
Information Technology. SAP, which has developed the premier
integrated business software package, continues to benefit from
the enormous changes in corporate infrastructure. Getronics, a
Dutch computer systems integrator and WM Data in Sweden provide
design and implementation services primarily in Europe.
Outsourcing. Outside vendors are often able to perform
computer and other services more cost-effectively than a company
can internally. NTT Data Communications is the dominant provider
of large data processing systems in Japan. First Data owns the
franchise on credit card transaction processing in the U.S., and
Securitas is a Swedish provider of security personnel.
Telecommunications. Demand for cellular and other
telecommunications services remains very strong overseas.
Kinnevik in Sweden, Millicom International, Korean Mobile
Telephone, Telekomunikasi Indonesia, and Telefonica de Argentina
are among our diverse holdings.
Special Situations. Hoechst, Nutricia, and Adidas have
individual catalysts that should push earnings higher. German
conglomerate Hoechst is consolidating its chemical businesses and
giving management performance incentives. Nutricia, a Dutch maker
of infant formula and clinical nutrients administered
intravenously, is expanding through smart acquisitions. Adidas
has new management and is beginning to recapture market share.
GLOBAL STRATEGY
Janus Worldwide Fund's research efforts focus on individual
growth ideas with consistent, long-term potential. We believe
these companies will generate solid investment returns no matter
where they are headquartered.
Thank you for your continued investment in Janus Worldwide
Fund.
117
<PAGE>
JANUS WORLDWIDE FUND Portfolio Manager,
Helen Young Hayes
PERFORMANCE OVERVIEW
A graphic comparison of the change in value of a hypothetical
$10,000 investment in Janus Worldwide Fund and the Morgan Stanley
Int'l. World Index. Janus Worldwide Fund is represented by a
solid teal line. The Morgan Stanley Int'l. World Index is
represented by a single dashed black line. The "y" axis reflects
the value of the investment. The "x" axis reflects the
computation periods from inception, May 15, 1991, through
April 30, 1996. The upper right quadrant reflects the ending
value of the hypothetical investment in Janus Worldwide Fund
($24,978) as compared to the Morgan Stanley Int'l. World Index
($16,800). There is a legend in the upper left quadrant of the
graph which indicates Janus Worldwide Fund's one-year and since
inception (May 15, 1991) average annual total returns as 35.94%
and 20.28%, respectively.
*The Fund's inception date Source - Lipper Analytical
Services, Inc. 1996. 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.
The Fund's portfolio may differ significantly from the
securities in the index. The index is unmanaged and therefore
does not reflect the cost of portfolio management or trading.
JANUS WORLDWIDE FUND April 30, 1996 (unaudited)
Shares or
Principal Amount Market Value
Common Stock - 88.5%
Aerospace and Defense - 1.1%
173,850 Boeing Co. $ 14,277,431
2,226,000 Mitsubishi Heavy Industries, Ltd.** 19,800,800
34,078,231
Agriculture - 0.8%
21,417,296 Parmalat Finanziaria S.p.A. 23,594,351
118
<PAGE>
Auto and Truck - 3.1%
290,670 Bajaj Auto, Ltd. (GDR)*,+ 10,391,452
1,710,000 Honda Motor Co.** 38,922,857
2,304,000 Isuzu Motors, Ltd.** 13,143,771
209,977 Mahindra & Mahindra (GDR)* 2,204,758
1,376,575 Tata Engineering &
Locomotive Co., Ltd. (GDR)+ 24,778,350
329,000 Yamaha Motor Co., Ltd.** 3,572,000
93,013,188
Brewery - 0.2%
597,300 Quilmes Industrial S.A. (ADR)* 7,092,937
Broadcasting, Radio and Television - 0.8%
30,000 Central European Media
Enterprises, Ltd.* 858,750
564,825 Grupo Televisa S.A. de C.V. (GDR) 17,509,575
141,500 Heritage Media Corp. - Class A* 5,430,062
23,798,387
Building Materials - 0.2%
9,443 Hunter Douglas N.V. 596,458
2,166,000 PT Semen Cibinong 6,419,845
7,016,303
Chemicals - 3.3%
35,025 Cytec Industries, Inc.* 2,902,697
212,472 Hoechst A.G.** 71,592,317
246,685 SGL Carbon A.G.**,+ 23,294,983
97,789,997
Commercial Services - 5.7%
119
<PAGE>
371,500 AMRE, Inc.* 6,965,625
223,250 CUC International, Inc.* 7,339,344
85,142 Frontec A.B. - Class B*,** 3,822,523
796 Grand Optical Photoservice** 94,997
1,703,612 Hays PLC** 11,025,947
169,375 Medaphis Corp.* 7,812,422
24,073 Prosegur Companhia de Seguridad S.A. 877,859
95,063 Randstad Holdings N.V. 6,093,355
4,948,286 Rentokil Group PLC** 28,632,068
1,228,446 Securitas A.B. - Class B#,** 70,522,402
525,341 WM-Data A.B. - Class B** 26,369,512
169,556,054
Computers - 3.0%
707,725 IBM Corp. 76,080,437
213,900 Sun Microsystems, Inc.* 11,604,075
87,684,512
Computers - Peripheral Equipment - 0%
3,200 Cisco Systems, Inc.* 166,000
Cosmetics and Personal Care - 0.1%
1,110,808 London International Group PLC** 2,360,166
Electrical Equipment - 0.2%
150,350 UCAR International, Inc.* 6,164,350
Electronics - 1.7%
33,875 Lernout & Hauspie Speech
Products N.V.* $ 1,414,281
1,018,000 Omron Corp.** 22,880,762
120
<PAGE>
229,200 Sony Corp.** 14,843,429
47,150 Sony Corp. (ADR)** 3,041,175
139,200 Varian Accociates, Inc. 7,951,800
50,131,447
Electronics - Components and Accessories - 0.3%
266,975 Sterling Commerce, Inc.* 9,344,125
Electronics - Semiconductors - 0.5%
222,000 Rohm Co.** 14,081,143
Engineering and Construction - 0%
523,600 New World Infrastructure, Ltd.*,+ 1,164,278
Financial - Bank Commercial - 1.8%
210,000 Dai-Ichi Kangyo Bank, Ltd.** 4,260,000
854,347 Fokus Bank A.S.+ 4,606,978
1,049,600 HSBC Holdings PLC 15,672,355
138,000 Mitsui Trust and Banking Co., Ltd.** 1,656,000
358,139 Nordbanken A.B.*,** 6,115,275
175,000 Sumitomo Trust and
Banking Co., Ltd.** 2,550,000
74,816 Wells Fargo & Co. 18,152,232
53,012,840
Financial - Bank Money Center - 2.5%
18,000 Barclays PLC** 199,634
349,150 Citicorp 27,495,562
336,126 Corporacion Bancaria de Espana S.A. 13,604,597
3,061,195 Skandinaviska Enskilda
Banken - Class A 22,980,930
254,045 Unidanmark A/S - Class A* 11,327,259
121
<PAGE>
75,607,982
Financial - Savings/Loan/Thrift - 0.4%
1,969,599 Lloyds TSB Group PLC** 9,453,044
205,859 Sparbanken Sverige A.B. - Class A** 2,318,130
11,771,174
Financial - Security Broker - 1.4%
10,378,975 Grupo Financiero
Inbursa S.A. - Class B* 40,479,403
Financial Services - 0%
13,300 Federal National Mortgage
Association 407,312
Food Processing - 2.1%
68,357 Cultor Oy - Series I** 2,899,300
84,725 Cultor Oy - Series II** 3,733,769
536,605 Nutricia Vereenigde Bedrijven N.V. 57,356,903
63,989,972
Forest Production and Paper - 0.1%
2,763,217 Rottneros Bruks A.B.** 3,213,280
Furniture and Home Appliances - 0.3%
149,150 Industrie Natuzzi S.p.A. (ADR) 7,755,800
Holding Companies - Diversified - 6.7%
5,037,700 Citic Pacific, Ltd. 19,798,593
8,376,000 First Pacific Co. 11,153,273
1,506,800 Grupo Carso S.A.
de C.V. - Series A1* 11,529,765
2,705,905 Kinnevik A.B. - Class B# 104,954,143
1,934,761 Lagardere Groupe** 51,905,484
122
<PAGE>
35,000 Lonrho PLC** 102,055
199,443,313
Household Products - 0.7%
402,100 Amway Japan, Ltd.** 20,641,133
Investment Companies - Closed-End - 0.1%
281,425 NIS Regional Fund*,+ 2,392,112
Investment Companies - Open-End - 0.2%
4,508,762 Istituto Nazionale
delle Assicurazioni 6,925,227
Iron and Steel - 0.3%
1,205,000 Kobe Steel, Ltd.*,** $ 3,729,762
1,306,000 NKK Corp.*,** 4,079,695
120,578 SSAB Svenskt Stal A.B. - Class A** 1,482,044
9,291,501
Leisure Time - 0%
323,133 Tabcorp Holdings, Ltd. 1,340,191
Lodging - 2.6%
240,150 East India Hotels, Ltd. (GDR)*,+ 7,024,388
1,248,700 HFS, Inc.* 64,151,963
92,710 Indian Hotels Co., Ltd. (GDS)+ 2,734,945
254,275 Renaissance Hotel Group N.V.* 4,831,225
78,742,521
Machine - Diversified - 0.4%
216,074 Rauma OY** 3,934,063
29,045 Sidel S.A.** 6,910,197
10,844,260
123
<PAGE>
Medical - Hospital Management Services - 0.4%
193,900 HEALTHSOUTH Corp.* 7,198,538
2,139,171 Takare PLC** 4,835,275
12,033,813
Medical - Supplies - 1.5%
62,050 Gelman Sciences, Inc. 1,652,081
529,916 Getinge Industrier A.B. - Class B** 27,847,209
481,127 Hafslund Nycomed A.S. - Class A 14,144,759
116,607 Nobelpharma A.B.+ 1,853,766
45,497,815
Metals - Diversified - 0.7%
588,669 Hoganas A.B. - Class B** 19,496,655
5,000 Inco, Ltd. 168,125
19,664,780
Mining - 0.5%
14,000 De Beers Consolidated Mines, Ltd. 444,500
12,000 Freeport McMoRan, Inc. 438,000
206,560 Potash Corporation of
Saskatchewan, Inc. 14,562,480
15,444,980
Miscellaneous - Distribution and Wholesale - 0.3%
343,575 Grupo Casa Autrey S.A. de C.V. (ADR) 7,859,278
Miscellaneous - Manufacturing - 3.2%
2,862,650 Assa-Abloy A.B. - Class B# 32,446,316
265,760 Barco N.V. 42,335,695
5,550 Millipore Corp. 232,406
124
<PAGE>
145,917 Orkla A/S - Class A 7,134,925
19,472 Sulzer A.G.** 13,122,264
95,271,606
Office and Business Equipment - 2.3%
2,338,000 Canon, Inc.** 46,314,667
225,862 Oce-Van Der Grinten N.V. 20,766,646
67,081,313
Oil and Gas - Domestic - 0.9%
4,300 Enron Global Power & Pipeline L.L.C. 106,425
1,165,875 YPF Sociedad Anonima S.A. (ADR) 25,503,516
25,609,941
Oil and Gas - Equipment and Services - 0.2%
183,725 Petroleum Geo - Services A/S (ADR)* 5,810,303
Oil and Gas - Exploration - 0.3%
199,200 Repsol S.A. 7,370,400
Pharmaceuticals - 11.0%
163,197 Astra A.B. - Class A** 7,242,790
41,875 Ciba-Geigy Corp. A.G.** 48,256,433
1,895,950 Eisai Co., Ltd.** 37,377,300
527,875 Eli Lilly & Co. 31,144,625
80,825 Pfizer, Inc. 5,566,822
113,900 Pharmacia & Upjohn, Inc. 4,356,675
178,325 R.P. Scherer Corp.* 7,043,838
9,253 Roche Holding A.G.** 72,662,280
46,579 Sandoz A.G. - Class R** 50,643,191
2,253,755 SmithKline Beecham PLC - Class A** 23,926,112
125
<PAGE>
301,650 SmithKline Beecham PLC -
Class A (ADR)** 16,289,100
847,000 Takeda Chemical Industries** 14,600,667
421,000 Yamanouchi Pharmaceutical Co., Ltd.** 9,943,619
329,053,452
Publishing - Newspaper - 0.2%
372,961 EMAP PLC** 3,810,461
302,950 Hollinger International, Inc. 3,597,531
7,407,992
Publishing and Printing - 2.2%
462,375 Harland (John H.), Co. 12,137,344
497,887 Wolters Kluwer N.V. 54,439,133
66,576,477
Real Estate - 0.5%
2,960,000 Henderson Investment, Ltd. 2,582,998
835,000 Mitsubishi Estate Co., Ltd.** 11,690,000
154,000 Mitsui Fudosan Co.** 2,024,000
16,296,998
Retail - Apparel - 0.5%
214,425 Fila Holdings S.p.A. (ADR) 14,634,506
209,050 Gymboree Corp.* 5,409,169
20,043,675
Retail - Department Stores - 2.3%
1,537,100 Credit Saison Co., Ltd.** 37,915,133
364,000 Daimaru, Inc.** 2,860,000
497,000 Hankyu Department Store** 7,242,000
126
<PAGE>
969,000 Isetan Co.** 14,304,286
3,559,000 PT Matahari Putra Prima 7,147,047
69,468,466
Retail - General Merchandise - 0.2%
308,000 Pao De Acucar S.A.+ 4,543,000
Retail - Grocery - 0.8%
517,900 Disco S.A. (ADR)* 8,221,663
268,000 Ito-Yokado Co., Ltd.** 15,748,190
23,969,853
Retail - Special Line - 0.3%
380,825 General Nutrition Companies, Inc.* 7,426,088
Services - Amusement and Recreation - 0.1%
49,448 Thorn EMI PLC** 1,372,905
Services - Computer Integrated Systems Design - 1.8%
779,961 Getronics N.V. 54,182,930
Services - Computer Processing and Data Preparation - 0.5%
116,950 First Data Corp. 8,888,200
134,400 SunGard Data Systems, Inc.* 4,468,800
13,357,000
Services - Computer Programming and Data Processing - 0.6%
330,300 General Motors Corp. - Class E 18,620,663
Services - Computer Related Services - 0.1%
487,725 Triple P N.V.* 4,145,662
Services - Information Retainment - 1.5%
355,061 Axime S.A.*,**,#,+ 43,747,361
Services - Prepackaged Software - 3.0%
127
<PAGE>
1,655,299 JBA Holdings PLC** 12,671,400
2,182 NTT Data Communications
Systems Corp.** 76,058,286
88,729,686
Shoes - 2.4%
939,887 Adidas A.G.** 71,557,183
Telecommunications - 2.2%
8,350 360 Degree Communications Co.* 196,225
2,875 Cellular Communications
International, Inc. 104,937
310,275 Korea Mobile Telecommunications,
Inc. (GDR)*,+, 17,685,675
197,700 Millicom International
Cellular S.A.* 9,341,325
187,175 Paging Network, Inc.* 4,398,612
553,650 PT Indosat Corp. (ADR) 19,308,544
355,700 PT Telekomunikasi Indonesia (ADR)* 12,138,262
3,850 Qualcom, Inc. 149,187
45,650 Telecom Argentina Stet S.A. (ADR) 2,065,662
1,900 Telecomunicacoes Brasileiras
S.A. (ADR) 102,838
65,491,267
Telecommunications Equipment - 0%
1,000 Globalstar Telecommunications, Ltd.* 52,250
Textiles - 1.0%
557,825 Gucci Group 30,331,734
Tobacco - 1.5%
4,036,500 PT Hanjaya Mandala Sampoerna* 44,647,713
128
<PAGE>
Toys - 0.6%
681,656 Mattel, Inc. 17,723,056
Transportation - Airlines - 1.5%
47,053 SwissAir A.G.*,** 46,428,654
Utilities - Electric - 0.8%
6,000 BSES Ltd. (GDR)+ 117,780
4,305,200 Consolidated Electric
Power Asia, Ltd. 7,124,129
71,335 Consolidated Electric
Power Asia, Ltd. (ADR)+ 1,180,430
110,350 Enersis S.A. (ADR) 3,282,913
1,140,584 Iberdrola S.A. 11,160,225
22,865,477
Utilities - Telecommunications - 1.1%
42,025 Compania de Telefonos de Chile (ADR) 3,834,781
176,275 Philippine Long Distance
Telephone Co. (ADR) 8,857,819
525,175 Telefonica de Argentina S.A. (ADR) 15,361,369
97,825 Telefonos de Mexico S.A. -
Class L (ADR) 3,326,050
3,100 Telephone and Data Systems, Inc. 144,150
31,524,169
Wholesale - Special Line - 0.9%
47,311 Gehe A.G.** 27,331,672
Total Common Stock (cost $2,174,925,548) 2,641,433,102
Preferred Stock - 4.8%
Auto and Truck - 1.1%
59,718 Porsche A.G.*,**,# $ 32,664,998
129
<PAGE>
Brewery - 0.3%
15,615,000 Companhia Cervejaria Brahma 7,509,179
Computer Processing and Data Preparation - 1.9%
435,972 SAP A.G.** 57,922,564
Financial - Bank Commercial - 0%
3,562,000 Banco Bradesco S.A. 40,225
Medical - Supplies - 0.9%
169,402 Fresenius A.G.** 26,237,272
Publishing and Printing - 0.2%
862,757 News Corp., Ltd. 4,447,383
Retail - Department Stores - 0%
14,639,000 Lojas Americanas S.A. 339,447
Telecommunications - 0%
91,000 Telecomunicacoes Brasileiras S.A. 4,926
Utilities - Electric - 0.4%
457,614,000 Companhia Energetica
de Minas Gerais 11,533,774
Total Preferred Stock (cost $115,525,948) 140,699,768
Rights - 0%
85,142 Frontec A.B. - exp. 5/3/96 Class B*,**
(cost $0) 283,243
U.S. Government Agencies - 6.1%
Federal Home Loan Bank System
$50,000,000 5.21%, 5/3/96 49,985,528
Federal Home Loan Mortgage Corp.:
50,000,000 5.17%, 5/17/96 49,885,111
50,000,000 5.17%, 5/20/96 49,863,570
130
<PAGE>
Federal National Mortgage Association
30,000,000 5.22%, 5/15/96 29,939,100
Total U.S. Government Agencies
(amortized cost $179,673,309) 179,673,309
U.S. Government Obligations - 0.1%
U.S. Treasury Bills
2,500,000 4.83%, 6/20/96 (amortized
cost $2,483,229) 2,483,229
Short-Term Corporate Note - 1.6%
45,600,000 General Electric Capital Corp., 5.30%,
5/1/96 (amortized cost
$45,600,000) 45,600,000
Repurchase Agreement - 0.3%
State Street Bank & Trust Co., 4.75%,
9,000,000 dated 4/30/96, maturing 5/1/96, to be
repurchased at $9,001,188, collateralized
by $9,390,000 in U.S. Treasury Notes 5.06%,
due 10/3/96, value $9,182,481
(cost $9,000,000) 9,000,000
Time Deposits - 1.5%
45,000,000 First Union National Bank of North Carolina,
5.31%, 5/1/96 (cost $45,000,000) 45,000,000
Total Investments - 102.9% (total cost
$2,572,208,034) 3,064,172,651
Liabilities, net of Cash, Receivables and
Other Assets - (2.9%) (85,948,190)
Net Assets - 100% $2,978,224,461
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1996
Country % of Investment Securities Market Value
Argentina 1.7% $ 51,152,209
Australia 0.2% 5,787,572
131
<PAGE>
Belgium 1.4% 43,749,975
Bermuda 0.0% 52,250
Brazil 0.8% 24,073,388
Canada 0.5% 14,730,605
Chile 0.2% 7,117,694
Denmark 0.4% 11,327,258
Finland 0.3% 10,567,131
France 3.4% 102,658,038
Germany 10.2% 311,459,729
Hong Kong 1.9% 58,676,055
India 1.5% 45,046,915
Indonesia 2.9% 89,661,410
Italy 2.7% 83,243,202
Japan 14.5% 443,283,455
Korea 0.6% 17,685,675
Luxemburg 0.3% 9,297,696
Mexico 2.6% 80,704,071
Netherlands 6.3% 193,435,425
Norway 1.0% 31,696,963
Philippines 0.3% 8,857,819
Russia 0.1% 2,392,112
South Africa 0.0% 444,500
Spain 1.1% 33,013,080
Sweden 10.8% 330,948,215
Switzerland 7.5% 231,112,821
United Kingdom 3.2% 98,389,068
132
<PAGE>
United States+ 23.6% 723,608,320
Total 100.0% $3,064,172,651
+Includes Short-Term Securities (14% excluding Short-Term
Securities)
FORWARD CURRENCY CONTRACTS
Open at April 30, 1996
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
British Pound 7/25/96 13,061,000 $ 19,658,111 $ 687
British Pound 8/22/96 11,000,000 16,550,600 312,290
Finnish Markka 5/9/96 4,520,000 934,077 135,113
Finnish Markka 10/1/96 8,500,000 1,769,322 76,297
French Franc 9/12/96 72,635,000 14,128,299 343,995
German Deutschemark
7/11/96 48,000,000 31,479,539 1,107,020
German Deutschemark
7/17/96 125,000,000 82,010,235 1,206,595
German Deutschemark
7/25/96 139,269,000 91,425,852 3,343,976
Japanese Yen 8/8/96 11,000,000,000 104,736,269 988,232
Japanese Yen 8/22/96 1,406,000,000 13,387,442 289,601
Japanese Yen 9/17/96 11,063,400,000 105,345,448 2,402,970
Japanese Yen 10/1/96 11,000,000,000 104,743,749 565,765
Swedish Krona 5/23/96 59,562,000 8,747,283 (307,153)
Swedish Krona 7/25/96 964,886,000 141,561,913 (2,722,877)
Swiss Franc 5/9/96 35,188,000 28,306,653 3,291,767
$764,784,792 $11,034,278
133
<PAGE>
STATEMENTS OF OPERATIONS
For the six months or period
ended April 30, 1996 (all numbers
in thousands) (unaudited)
Janus
Janus Janus Growth and
Janus Balanced Enterprise Income
Fund Fund Fund Fund
Investment Income:
Interest $ 31,422 $ 1,958 $ 348 $ 1,777
Dividends 84,367 497 339 4,006
Foreign Tax Withheld (2,351) (11) - (8)
113,438 2,444 687 5,775
Expenses:
Advisory fees 42,268 572 1,891 2,415
Transfer agent fees
and expenses 9,704 227 768 944
Registration fees 344 9 31 81
Postage and mailing
expenses 1,243 32 133 163
Custodian fees 1,570 18 52 57
Printing expenses - 6 28 42
Audit fees 24 4 6 5
Trustees' fees and
expenses 93 1 3 -
Other expenses 92 1 23 16
Total expenses 55,338 870 2,935 3,723
Expense and fee
offsets (904) (16) (55) (90)
Net expenses 54,434 854 2,880 3,633
Net investment
income/(loss) 59,004 1,590 (2,193) 2,142
Net Realized and Unrealized
Gain/(Loss) on Investments:
Net realized gain/(loss)
from securities
transactions 573,322 8,784 42,012 40,777
134
<PAGE>
Net realized gain/(loss)
from foreign currency
transactions (11,148) (6) 8 290
Net realized gain/(loss)
from futures contracts - - 226 -
Change in net unrealized
appreciation or deprec-
iation of investments 944,798 3,190 64,396 53,608
Net gain on
investments 1,506,972 11,968 106,642 94,675
Net increase in net
assets resulting from
operations $1,565,976 $13,558 $104,449 $96,817
For the six months or period
ended April 30, 1996 (all numbers
in thousands) (unaudited)
Janus Janus Janus Janus Janus Janus
Mercury Olympus Overseas Twenty Venture Worldwide
Fund Fund(1) Fund Fund Fund Fund
Investment Income:
Interest $ 7,718 $ 778 $ 469 $ 4,910 $ 2,740 $ 4,869
Dividends 5,617 2,091 1,108 19,909 3,152 11,669
Foreign Tax Withheld (119) - (124) (166) (105) (1,183)
13,216 2,869 1,453 24,653 5,787 15,355
Expenses:
Advisory fees 5,752 338 711 10,553 6,013 7,475
Transfer agent fees 2,231 86 313 3,308 1,437 2,390
and expenses
Registration fees ___ 23 60 184 23 102
Postage and mailing 359 19 46 431 88 307
expenses
Custodian fees 216 4 99 299 192 804
Printing expenses 199 2 17 184 42 85
Audit fees 7 4 6 9 8 8
Trustees' fees and ___ ___ 1 10 21 13
expenses
Other expenses (35) 1 2 49 37 63
Total expenses 8,729 477 1,255 15,027 7,861 11,247
Expense and fee (270) (16) (55) (252) (85) (233)
offsets
Net expenses 8,459 461 1,200 14,775 7,776 11,014
135
<PAGE>
Net investment 4,757 2,408 253 9,878 (1,989) 4,341
income/(loss)
Net Realized and Unrealized
Gain/(Loss) on Investments:
Net realized gain/ 155,994 (3,935) 5,464 251,706 99,552 112,260
(loss) from securities
transactions
Net realized gain/(loss) 1,765 192 1,859 10,454 1,635 35,204
from foreign currency
transactions
Net realized gain/ (1,268) ___ ___ ___ ___ 2,579
(loss) from futures
contracts
Change in net un- 116,804 34,607 25,538 134,369 166,935 300,769
realized appreciation
or depreciation of
investments
Net gain on investments 273,295 30,864 32,861 396,529 268,122 450,812
Net increase in net $278,052$ 33,272 $ 33,114 $406,407 $266,133 $455,153
assets resulting
from operations
STATEMENTS OF ASSETS AND LIABILITY
As of April 30, 1996 (all numbers
in thousands except net asset
value per share) (unaudited)
Janus
Janus Janus Growth
Janus Balanced Enterprise and Income
Fund Fund Fund Fund
Assets:
Investments at cost $10,846,166 $139,516 $477,909 $665,138
Investments at value 13,950,664 151,972 624,558 798,504
Cash 1,518 995 893 580
Receivables:
Investments sold 97,550 3,562 21,992 218
Fund shares sold 21,552 439 2,956 2,859
Interest 9 1,060 -- 576
Dividends 27,069 161 233 691
Foreign currency
contracts 44,545 236 192 1,212
Other assets 114 -- 2 5
Total Assets 14,143,021 158,425 650,826 804,645
136
<PAGE>
Liabilities:
Payables:
Investments
purchased 127,813 5,131 18,282 11,291
Fund shares
repurchased 6,861 223 328 640
Advisory fee 7,409 100 358 446
Transfer agent fee 1,459 28 139 175
Accrued expenses 2,076 30 130 160
Total Liabilities 145,618 5,512 19,237 12,712
Net Assets $13,997,403 $152,913 $631,589 $791,933
Shares Outstanding,
$0.01 Par Value (unlimited
shares authorized) 559,312 10,796 20,340 42,761
Net Asset Value
Per Share $25.03 $14.16 $31.05 $18.52
137
<PAGE>
<TABLE>
As of April 30, 1996 (all numbers
in thousands except net asset
value per share) (unaudited)
<CAPTION>
Janus Janus Janus Janus Janus Janus
Mercury Olympus Overseas Twenty Venture Worldwide
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at
cost $1,769,926 $206,692 $263,955 $2,886,693 $1,446,277 $2,572,460
Investments at
value $2,019,504 $241,299 $298,160 $3,465,338 $1,943,010 $3,064,173
Cash 717 968 758 1,836 1,358 810
Receivables:
Investments sold 1,619 17,138 323 7,687 33,442 12,168
Fund shares sold 6,507 9,272 5,556 3,200 828 26,717
Interest ____ ____ ____ 1,724 ____ 8
Dividends 1,524 372 680 4,165 992 7,757
Foreign currency 3,638 ____ 1,241 6,114 2,568 11,034
contracts
Other assets 15 ____ ____ 46 5 4
Total Assets 2,033,524 269,049 306,718 3,490,110 1,982,203 3,122,671
Liabilities:
Payables:
Investments 35,751 9,131 13,500 55,074 48,706 138,721
purchased
Fund shares 2,289 296 826 2,659 1,059 2,878
repurchased
Advisory fee 1,059 126 164 1,845 1,025 1,533
Transfer agent fee 309 15 51 504 258 415
Accrued expenses 459 36 146 559 144 900
Total
Liabilities $39,867 $9,604 $14,687 $60,641 $51,192 $144,447
Net Assets 1,993,657 259,445 292,031 3,429,469 1,931,011 2,978,224
Shares Outstanding,
$0.01 Par Value (unlimited
shares authorized) 110,376 17,417 21,501 120,795 31,907 92,044
Net Asset Value $18.06 $14.90 $13.58 $28.39 $60.52 $32.36
Per Share
(1) Period from December 29, 1995 (inception) to April 30, 1996.
See Notes to Financial Statements
</TABLE>
138
<PAGE>
An Explanation of the Statement of Operations
This financial statement details the Funds' 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 the dividends earned from stocks and interest earned from
interest-bearing securities in the portfolio.
The next section reports the expenses and expense offsets
incurred by the Funds, including the advisory fee paid to the
investment advisor, the transfer agent fees, shareholder
servicing expenses, printing and postage for mailing statements,
financial reports, and prospectuses to investors.
The last section lists the increase or decrease in the value
of securities held in the Funds' 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 Funds' portfolio during the
period. This figure is affected by both changes in the market
value of portfolio holdings and by gains (or losses) realized
during the reporting period.
An Explanation of the Statement of Assets and Liabilities
This financial statement is often referred to as the "balance
sheet." It lists the assets and liabilities of the Funds on the
last day of the fiscal period.
The Funds' assets are calculated by adding the value of the
securities owned, the receivable for securities sold but not yet
settled, the receivable for dividends declared, but not yet
received, on stocks owned, and the receivable for Fund shares
sold to investors but not yet settled. The Funds' liabilities
include payables for securities purchased but not yet settled,
Fund shares redeemed but not yet paid, and expenses owed but not
yet paid.
There may be other assets and liabilities such as forward
currency contracts.
The last line of this schedule reports the Funds' net asset
value (NAV) per share on the last day of the fiscal period. The
NAV is calculated by dividing the Funds' total net assets (assets
minus liabilities) by the number of shares outstanding.
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
139
<PAGE>
For six months or period ended April 30, 1996 (unaudited) or
the year ended October 31, 1995 (all numbers in thousands)
<CAPTION>
Janus Balanced Janus Janus Growth and
Janus Fund Fund Enterprise Fund Income Fund
1996 1995 1996 1995 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net investment
income/(loss) $59,004 $132,179 $1,590 $2,708 $(2,193) $91 $2,142 $5,333
Net realized
gain/loss)
from
ivestment
transactions 562,174 539,152 8,778 7,481 42,246 30,791 41,067 84,111
Change in
unrealized net
appreciation
or depreciation
of investments 944,798 1,433,338 3,190 8,194 64,396 29,273 53,608 20,058
Net increase/
(decrease) in
net assets
resulting from
operations 1,565,976 2,104,669 13,558 18,383 104,449 60,155 96,817 109,702
Dividends and
Distributions to
Shareholders from:
Net investment
income* (398,902) (4,024) (9,066) (4,692) (28,040) (7,697) (32,982) (3,346)
Net realized gain
from investment
transactions (252,907) (190,268) - - (2,805) (5,604) (41,579) -
Net decrease from
dividends and
distributions (651,809) (194,292) (9,066) (4,692) (30,845) (13,301) (74,561) (3,346)
Capital Share
Transactions:
140
<PAGE>
Shares sold 1,482,911 2,147,778 41,402 44,222 193,834 362,414 200,020 113,855
Reinvested
dividends and
distributions 628,657 186,387 8,780 4,464 30,326 12,981 72,576 3,214
Shares
repurchased (991,302) (1,928,817) (26,306) (31,378)(125,545) (332,907) (85,882) (130,404)
Net increase/
(decrease) from
capital share
transactions 1,120,266 405,348 23,876 17,308 98,615 42,488 186,714 (13,335)
Net increase in
net assets 2,034,433 2,315,725 28,368 30,999 172,219 89,342 208,970 93,021
Net Assets:
Beginning of
period 11,962,970 9,647,245 124,545 93,546 459,370 370,028 582,963 489,942
End of Period $13,997,403 $11,962,970 $152,913 $124,545 $631,589 $459,370 $791,933 $582,963
Net Assets
consist of:
Capital
(par value
and paid-in
surplus)* $10,206,004 $9,085,739 $130,630 $106,754$445,181 $346,567 $615,119 $428,405
Undistributed
net investment
income/
(distribution
in excess)* (273,406) 66,492 (7,120) 356 (30,233) - (30,233) 607
Undistributed
net realized
gain/(loss)*
from investments 915,935 606,668 16,713 7,935 69,800 30,358 72,469 72,981
Unrealized
appreciation of
investments 3,148,870 2,204,071 12,690 9,500 146,841 82,445 134,578 80,970
$13,997,403 $11,962,970 $152,913 $124,545 $631,589 $459,370 $791,933 $582,963
Transactions in
Fund Shares:
141
<PAGE>
Shares sold 61,295 103,296 2,966 3,512 6,777 15,200 11,113 7,113
Reinvested
distributions 27,286 9,925 639 371 1,105 565 4,350 212
Total 88,581 113,221 3,605 3,883 7,882 15,765 15,463 7,325
Shares
repurchased (41,137) (92,980) (1,885) (2,493) (4,467) (13,986) (4,860) (8,529)
Net increase/
(decrease) 47,444 20,241 1,720 1,390 3,415 1,779 10,603 (1,204)
Shares outstanding
beginning of
period 511,868 491,627 9,076 7,686 16,925 15,146 32,158 33,362
Shares outstanding
end of period 559,312 511,868 10,796 9,076 20,340 16,925 42,761 32,158
Purchases and Sales
of Investment Securities:
(excluding Short-Term
Securities)
Purchases of
Securities $8,345,560 $11,575,417 $115,436 $173,144 $346,327 $774,127 $667,528 $857,522
Proceeds from
Sales of
Securities 7,302,579 10,339,397 114,606 151,167 294,265 716,403 575,897 883,780
Purchases of
Long-Term U.S.
Government
Obligations 52,837 99,172 44,106 29,427 - - - 75,020
Proceeds from Sales
of Long-Term
U.S. Government
Obligations 155,889 102,063 28,138 21,157 - - - 78,554
<CAPTION>
Janus Janus Janus Janus Janus Janus
Mercury Olympus Overseas Twenty Venture Worldwide
Fund Fund Fund Fund Fund Fund
1996 1995 1996(1) 1996 1995 1996 1995 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
142
<PAGE>
Net investment
income/(loss) $4,757 $5,552 $2,408 $253 $282 $9,878 $16,905 $(1,989) $4,753 $4,341 $16,062
Net realized
gain/loss)
from
ivestment
transactions 156,491 178,502 (3,743) 7,323 2,519 262,160 533,237 101,187 214,176 150,043 55,175
Change in
unrealized net
appreciation
or depreciation
of investments 116,804 83,666 34,607 25,538 6,447 134,369 47,686 166,935 67,671 300,769 65,211
Net increase/
(decrease) in
net assets
resulting from
operations 278,052 267,720 33,272 33,114 9,248 406,407 597,828 266,133 286,600 455,153 136,448
Dividends and
Distributions to
Shareholders from:
Net investment
income* (155,826) (8,192) - (1,749) - (227,231) (7,400) (105,497) (862) (17,455) (32,032)
Net realized gain
from investment
transactions (27,026) (5,231) - (536) - (297,577) - (112,796) (82,645) (71,145) (60,061)
Net decrease from
dividends and
distributions (182,852) (13,423) - (2,285) - (524,808) (7,400) (218,293) (83,507) (88,600) (92,093)
Capital Share
Transactions:
Shares sold 681,847 1,329,738 254,714 229,260 128,820 493,454 387,080 79,116 145,222 1,069,675 788,071
Reinvested dividends
and distributions176,985 12,799 - 2,204 - 512,051 7,202 212,019 81,200 86,150 88,948
Shares
repurchased (481,143) (672,396) (28,541) (81,128) (91,267) (453,386) (731,771) (161,165) (226,790) (348,508) (704,140)
Net increase/
(decrease) from
capital share
transactions 377,689 670,141 226,173 150,336 37,553 552,119 (337,489) 129,970 (368) 807,317 172,879
143
<PAGE>
Net increase in
net assets 472,889 924,438 259,445 181,165 46,801 433,718 252,939 177,810 202,725 1,173,870 217,234
Net Assets:
Beginning of
period 1,520,768 596,330 - 110,866 64,065 2,995,751 2,742,812 1,753,201 1,550,476 1,804,354 1,587,120
End of Period $1,993,657 $1,520,768 $259,445 $292,031 $110,866 $3,429,469 $2,995,751 $1,931,011 $1,753,201 $2,978,224 $1,804,354
Net Assets
consist of:
Capital
(par value
and paid-in
surplus)* $1,577,195 $1,199,506 $226,173 $249,177 $98,841 $2,567,411 $2,015,292 $1,329,190 $1,199,220 $2,331,923 $1,524,605
Undistributed
net investment
income/
(distribution
in excess)* (151,069) _____ 2,408 (322) 1,174 (217,353) ___ (107,301) 185 4,335 94,011
Undistributed
net realized
gain/(loss)*
from investments 314,322 184,857 (3,743) 7,737 951 494,670 530,087 209,840 221,449 139,272 (16,187)
Unrealized
appreciation of
investments 253,209, 136,405 34,607 35,439 9,900 584,741 450,372 499,282 332,347 502,694 201,925
$1,993,657 $1,520,768 $259,445 $292,031 $110,866 $3,429,469 $2,995,751 $1,931,011 $1,753,201 $2,978,224 $1,804,354
Transactions in
Fund Shares:
Shares sold 40,090 88,118 19,541 18,249 11,936 17,623 14,963 1,407 2,726 35,417 30,276
Reinvested
distributions 11,034 940 - 183 - 19,947 317 3,919 1,668 3,034 3,647
Total 51,124 89,058 19,541 18,432 11,936 37,570 15,280 5,326 4,394 38,451 33,923
Shares
repurchased (28,243) (43,801) (2,124) (6,502) (8,547) (16,220) (28,999) (2,872) (4,273) (11,662) (27,454)
Net increase/
(decrease) 22,881 45,257 17,417 11,930 3,389 21,350 (13,719) 2,454 121 26,789 6,469
Shares outstanding
144
<PAGE>
beginning of
period 87,495 42,238 ____ 9,571 6,182 99,445 113,164 29,453 29,332 65,255 58,786
Shares outstanding
end of period 110,376 87,495 17,417 21,501 9,571 120,795 99,445 31,907 29,453 92,044 65,255
Purchases and Sales
of Investment Securities:
(excluding Short-Term Securities)
Purchases of
Securities 1,655,085 2,539,449 320,783 227,946 141,411 2,340,031 3,795,717 1,149,937 1,633,385 1,552,384 2,232,128
Proceeds from
Sales of
Securities 1,462,481 1,894,699 180,300 79,856 117,541 2,294,083 4,044,252 1,173,199 1,605,945 979,534 1,920,061
Purchases of
Long-Term U.S.
Government
Obligations ____ ____ 16,000 ____ ____ ____ ____ ____ ____ ____ ____
Proceeds from Sales
of Long-Term
U.S. Government
Obligations ____ ____ 15,844 ____ ____ ____ ____ ____ ____ ____ ____
<FN>
(1) Period from December 29, 1995 (inception) to April 30, 1996
*See Note 3 in Notes to Financial Statements
</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
the Fund's net assets are attributable to investment operations,
dividends, distributions, and capital share transactions. This
schedule is of importance to investors because it shows exactly
what caused the Fund's net asset size to change during the
period. Investors can use this information to determine if the
Funds' growth was a result of operations or an increase in the
number of shares being purchased.
The first section summarizes the information from the
Statement of Operations regarding changes in net assets due to
the Funds' investment performance. The Funds' net assets will
also change as a result of dividend and capital gains
distributions to investors. If investors receive their dividends
in cash, money is taken out of the Fund to pay the distribution.
If investors reinvest their dividends, the Funds' net assets will
not be affected. If you compare each Funds' "Net decrease from
145
<PAGE>
dividends and distributions" to the "Reinvested dividends and
distributions," you'll notice that dividend distributions had
little effect on each Funds' 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 Funds through purchases or withdraw
via redemptions. The Funds' 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
the components of the Funds' net assets. Since funds must
distribute substantially all earnings, you'll notice that a
significant portion of net assets is shareholder capital.
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For a share outstanding
during the six months
ended April 30, 1996
(unaudited) or throughout
each fiscal year or Janus Fund
period ended October 31 1996 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $23.37 $19.62 $20.81 $18.86 $18.27 $13.25
Income from investment
operations
Net investment income 1.14 .16 .17 .26 .23 .25
Net gains or (losses)
on securities (both
realized and
unrealized) 1.79 3.99 (.03) 2.88 1.46 5.09
Total from investment
operations 2.93 4.15 .14 3.14 1.69 5.34
Less distributions
Dividends (from net
investment income) (.78) (.01) (.39)+ (.29) (.19) (.31)
Distributions (from
capital gains) (.49) (.39) (.94) (.90) (.91) (.01)
146
<PAGE>
Total distributions (1.27) (.40) (1.33) (1.19) (1.10) (.32)
Net asset value, end
of period $25.03 $23.37 $19.62 $20.81 $18.86 $18.27
Total return* 12.95% 21.62% 0.75% 17.41% 9.35% 40.95%
Net assets, end
of period (in
thousands) $13,997,403 $11,962,970 $9,647,245 $9,098,000 $4,989,299 $2,597,866
Average net assets
for the period
(in thousands) $13,009,075 $10,559,806 $9,338,807 $7,335,871 $3,870,923 $1,784,627
Ratio of gross
expenses to
average net
ssets**(5) 0.86% 0.87% NA NA NA NA
Ratio of net
expenses to
average net
assets**(5) 0.84% 0.86% 0.91% 0.92% 0.97% 0.98%
Ratio of net
investment income
to average net
assets** 0.91% 1.25% 1.12% 1.55% 1.54% 1.77%
Portfolio turnover
rate* 125% 118% 139% 127% 153% 132%
Average commission
per share $.0564 NA NA NA NA NA
For a share
outstanding during
the six months ended
April 30, 1996 (unaudited)
or throughout each
fiscal year or period Janus Twenty Fund
ended October 31 1996 1995 1994 1993 1992(1) 1992(2)
Net asset value, beginning
of period $30.12 $24.24 $25.85 $22.75 $22.17 $18.88
Income from investment
operations
Net investment income .48 .01 .16 .17 .09 .11
147
<PAGE>
Net gains or (losses)
on securities (both
realized and
unrealized) 3.06 5.94 (1.07) 3.31 .49 3.62
Total from investment
operations 3.54 5.95 (.91) 3.48 .58 3.73
Less distributions
Dividends (from net
investment income) (2.28) (.07) (.25) (.18) - (.02)
Distributions (from
capital gains) (2.99) - (.45) (.20) - (.42)
Total distributions (5.27) (.07) (.70) (.38) - (.44)
Net asset value, end
of period $28.39 $30.12 $24.24 $25.85 $22.75 $22.17
Total return* 13.55% 24.67% (3.52%) 15.39% 2.62%* 19.60%
Net assets, end of
period (in thousands) $3,429,469 $2,995,751 $2,742,812 $3,748,796 $2,434,245 $2,080,922
Average net assets
for the period (in
thousands) $3,192,847 $2,716,278 $3,051,194 $3,545,727 $2,221,065 $1,187,646
Ratio of gross
expenses to average
net assets**(5) 0.95% 1.00% NA NA NA NA
Ratio of net expenses
to average net assets**(5) 0.93% 0.99% 1.02% 1.05% 1.12% 1.01%
Ratio of net investment
income to average net
assets** 0.62% 0.62% 0.57% 0.87% 1.27% 1.08%
Portfolio turnover
rate** 148% 147% 102% 99% 79% 83%
Average commission
per share $.0656 NA NA NA NA NA
For a share outstanding
during the six months
ended April 30, 1996
(unaudited) or throughout
148
<PAGE>
each fiscal year or Janus Venture Fund
period ended October 31 1996 1995 1994 1993 1992(3) 1992(4)
Net asset value,
beginning of period $59.53 $52.86 $53.25 $47.74 $45.96 $45.05
Income from investment
operations
Net investment income .24 .05 .11 .66 .17 .36
Net gains or (losses)
on securities (both
realized and unrealized) 8.21 9.49 4.40 6.72 1.61 4.23
Total from investment
operations 8.45 9.54 4.51 7.38 1.78 4.59
Less distributions
Dividends (from net
investment income) (3.61) (.03) (.53) (1.16) ___ (.25)
Distributions (from
capital gains) (3.85) (2.84) (4.37) (.71) ___ (3.43)
Total distributions (7.46) (2.87) (4.90) (1.87) ___ (3.68)
Net asset value,
end of period $60.52 $59.53 $52.86 $53.25 $47.74 $45.96
Total return* 15.66% 19.24% 9.23% 15.76% 3.87%* 9.90%
Net assets, end
of period (in
thousands) $1,931,011 $1,753,201 $1,550,476 $1,836,657 $1,544,531 $1,510,471
Average net assets
for the period (in
thousands) $1,789,477 $1,612,514 $1,562,521 $1,792,532 $1,496,106 $1,381,628
Ratio of gross
expenses to average
net assets**(5) 0.88% 0.92% NA NA NA NA
Ratio of net
expenses to average
net assets**(5) 0.87% 0.91% 0.96% 0.97% 1.07% 1.00%
Ratio of net investment
income to average net
149
<PAGE>
assets** (0.22%) 0.29% 0.27% 1.29% 1.32% 1.20%
Portfolio turnover
rate** 131% 113% 114% 139% 124% 166%
Average commission
per share $.0381 NA NA NA NA NA
<FN>
(1) Fiscal period June 1, 1992 to October 31, 1992
(2) Fiscal year ended on May 31st
(3) Fiscal period August 1, 1992 to October 31, 1992
(4) Fiscal year ended on July 31
(5) See "Explanation of the Financial Highlights"
*Total return not annualized for periods of less than one full year.
**Annualized for periods of less than one full year.
+Distribution in excess of financial statement income of $.02
NA - Disclosure not applicable to prior periods
</TABLE>
150
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
For a share outstanding during
the six months ended April 30,
1996 (unaudited) or throughout
each fiscal year or period
ended October 31 Janus Balanced Fund
<CAPTION>
1996 1995 1994 1993 1992(1)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $13.72 $12.17 $12.23 $10.64 $10.00
Income from investment
operations
Net investment income .24 .61 .27 .19 -
Net gains or (losses) on
securities (both realized and
unrealized) 1.14 1.52 (.09) 1.56 .64
Total from investment
operations 1.38 2.13 .18 1.75 .64
Less distributions
Dividends (from net investment
income) (.94) (.58) (.24) (.16) -
Distributions (from capital
gains) - - - - -
Total distributions (.94) (.58) (.24) (.16) -
Net asset value, end of
period $14.16 $13.72 $12.17 $12.23 $10.64
Total return* 10.32% 18.26% 1.51% 16.54% 6.40%*
Net assets, end of period (in
thousands) $152,913 $124,545 $93,546 $72,547 $2,130
Average net assets for the
period (in thousands) $143,311 $107,259 $86,361 $43,522 $563
Ratio of gross expenses to
average net assets**(3) 1.22% 1.35% NA NA NA
151
<PAGE>
Ratio of net expenses to
average net assets**(3) 1.20% 1.32% 1.42% 1.70% 2.50%
Ratio of net investment income
to average net assets** 2.23% 2.52% 2.28% 2.15% (0.12%)
Portfolio turnover rate** 203% 185% 167% 131% 130%
Average commission per share $.0408 NA NA NA NA
For a share outstanding during
the six months ended April 30,
1996 (unaudited) or throughout
each fiscal year or period
ended October 31 Janus Enterprise Fund
1996 1995 1994 1993 1992 (1)
Net asset value, beginning of
period $27.14 $24.43 $21.87 $17.09 $15.00
Income from investment
operations
Net investment income .15 .52 (.06) .04 -
Net gains or (losses) on
securities (both realized and
unrealized) 5.56 3.09 3.18 4.76 2.09
Total from investment
operations 5.71 3.61 3.12 4.80 2.09
Less distributions
Dividends (from net investment
income) (1.64) (.52) (.02) (.02) -
Distributions (from capital
gains) (.16) (.38) (.54) - -
Total distributions (1.80) (.90) (.56) (.02) -
Net asset value, end of period $31.05 $27.14 $24.43 $21.87 $17.09
Total return* 21.80% 15.46% 14.56% 28.09% 13.93%*
Net assets, end of period (in
thousands) $631,589 $459,370 $370,028 $239,334 $8,320
152
<PAGE>
Average net assets for the
period (in thousands) $512,855 $407,791 $269,595 $188,345 $1,560
Ratio of gross expenses to
average net assets**(3) 1.15% 1.26% NA NA NA
Ratio of net expenses to
average net assets**(3) 1.13% 1.23% 1.25% 1.36% 2.50%
Ratio of net investment income
to average net assets** 0.86% 0.02% (0.32%) 0.14% (0.81%)
Portfolio turnover rate** 115% 194% 193% 201% 53%
Average commission per share $.0435 NA NA NA NA
For a share outstanding during
the six months ended April 30,
1996 (unaudited) or throughout
each fiscal year or period
ended October 31 Janus Growth and Income Fund
1996 1995 1994 1993 1992 1991 (2)
Net asset value, beginning of
period $18.13 $14.69 $15.24 $12.95 $12.13 $10.00
Income from investment
operations
Net investment income 1.66 .11 .19 .14 .17 .02
Net gains or (losses) on
securities (both realized and
unrealized) .93 3.43 (.31) 2.29 .80 2.13
Total from investment
operations 2.59 3.54 (.12) 2.43 .97 2.15
Less distributions
Dividends (from net investment
income) (.97) (.10) (.10) (.14) (.15) (.02)
Distributions (from capital
gains) (1.23) - (.33) - - -
Total distributions (2.20) (.10) (.43) (.14) (.15) (.02)
Net asset value, end of
period $18.52 $18.13 $14.69 $15.24 $12.95 $12.13
153
<PAGE>
Total return* 15.74% 24.20% (0.76%) 18.81% 7.98% 21.50%*
Net assets, end of period (in
thousands) $791,933 $582,963 $489,942 $518,963 $243,509 $56,473
Average net assets for the
period (in thousands) $673,996 $498,442 $499,831 $404,285 $156,815 $21,279
Ratio of gross expenses to
average net assets**(3) 1.11% 1.19% NA NA NA NA
Ratio of net expenses to
average net assets**(3) 1.08% 1.17% 1.22% 1.28% 1.52% 2.33%
Ratio of net investment income
to average net assets** 0.64% 1.11% 1.26% 1.13% 1.61% 0.76%
Portfolio turnover rate** 174% 195% 123% 138% 120% 14%
Average commission per share $.0528 NA NA NA NA NA
<FN>
(1) Fiscal period from September 1, 1992 (inception) to October 31, 1992
(2) Fiscal period from May 15, 1991 (inception) to October 31, 1991
(3) See "Explanation of Financial Highlights"
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
NA - Disclosure not applicable to prior periods.
</TABLE>
154
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
For a share outstanding during
the six months ended April 30,
1996 (unaudited) or throughout
each fiscal year or period
ended October 31 Janus Mercury Fund
<CAPTION>
1996 1995 1994 1993 (1)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $17.38 $14.12 $11.70 $10.00
Income from investment
operations
Net investment income .39 .16 .02 (.01)
Net gains or (losses) on
securities (both realized and
unrealized) 2.35 3.37 2.40 1.71
Total from investment
operations 2.74 3.53 2.42 1.70
Less distributions
Dividends (from net investment
income) (1.76) (.16) - -
Distributions (from capital
gains) (.30) (.11) - -
Total distributions (2.06) (.27) - -
Net asset value, end of
period $18.06 $17.38 $14.12 $11.70
Total return* 17.27% 25.53% 20.68% 17.00%*
Net assets, end of period (in
thousands) $1,993,657 $1,520,768 $596,330 $112,725
Average net assets for the
period (in thousands) $1,711,386 $1,116,377 $257,726 $67,462
155
<PAGE>
Ratio of gross expenses to
average net assets**(5) 1.03% 1.14% NA NA
Ratio of net expenses to
average net assets**(5) 0.99% 1.12% 1.33% 1.75%
Ratio of net investment income
to average net assets** 0.56% 0.50% 0.25% (0.40%)
Portfolio turnover rate** 198% 201% 283% 151%
Average commission per share $.0345 NA NA NA
For a share outstanding during
the six months ended April 30,
1996(unaudited) or throughout
each fiscal year or period
ended October 31 Janus Olympus Fund Janus Overseas Fund
1996 (2) 1996 1995 1994 (3)
Net asset value, beginning of
period $12.00 $11.58 $10.36 $10.00
Income from investment
operations
Net investment income .14 .03 .12 (.02)
Net gains or (losses) on
securities (both realized and
unrealized) 2.76 2.19 1.10 .38
Total from investment
operations 2.90 2.22 1.22 .36
Less distributions
Dividends (from net investment
income) - (.17) - -
Distributions (from capital
gains) - (.05) - -
Total distributions - (.22) - -
Net asset value, end of
period $14.90 $13.58 $11.58 $10.36
Total return* 24.25% 19.38% 11.78% 3.60%*
156
<PAGE>
Net assets, end of period (in
thousands) $259,445 $292,031 $110,866 $64,065
Average net assets for the
period (in thousands) $127,594 $180,697 $ 77,668 $36,645
Ratio of gross expenses to
average net assets**(5) 1.10% 1.40% 1.76% NA
Ratio of net expenses to
average net assets**(5) 1.07% 1.34% 1.73% 2.16%
Ratio of net investment income
to average net assets** 5.57% 0.28% 0.36% (0.64%)
Portfolio turnover rate** 525% 94% 188% 181%
Average commission per share $.0332 $.0336 NA NA
For a share outstanding during
the six months ended April 30,
1996 (unaudited) or throughout
each fiscal year or period
ended October 31 Janus Worldwide Fund
1996 1995 1994 1993 1992 1991 (4)
<C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $27.65 $27.00 $24.16 $18.95 $17.45 $15.00
Income from investment
operations
Net investment income .04 .81 .15 .14 .16 -
Net gains or (losses) on
securities (both realized and
unrealized) 6.00 1.39 3.34 5.29 1.39 2.45
Total from investment
operations 6.04 2.20 3.49 5.43 1.55 2.45
Less distributions
Dividends (from net investment
income) (.26) (.54) (.27) (.22) - -
Distributions (from capital
gains) (1.07) (1.01) (.38) - (.05) -
Total distributions (1.33) (1.55) (.65) (.22) (.05) -
157
<PAGE>
Net asset value, end of
period $32.36 $27.65 $27.00 $24.16 $18.95 $17.45
Total return* 22.52% 8.89% 14.76% 28.79% 9.20% 16.00%*
Net assets, end of period (in
thousands) $2,978,224 $1,804,354 $1,587,120 $754,608 $160,672 $18,423
Average net assets for the
period (in thousands) $2,242,899 $1,622,142 $1,244,194 $379,259 $ 79,518 $ 7,344
Ratio of gross expenses to
average net assets**(5) 1.01% 1.24% NA NA NA NA
Ratio of net expenses to
average net assets**(5) 0.99% 1.23% 1.12% 1.32% 1.73% 2.50%
Ratio of net investment income
to average net assets** 0.39% 0.99% 0.42% 0.92% 1.74% 0.02%
Portfolio turnover rate** 93% 142% 158% 124% 147% 40%
Average commission per share $.0353 NA NA NA NA NA
<FN>
(1) Fiscal period from May 3, 1993 (inception) to October 31, 1993
(2) Fiscal period December 29, 1995 (inception) to April 30, 1996
(3) Fiscal period from May 2, 1994 (inception) to October 31, 1994
(4) Fiscal period from May 15, 1991 (inception) to October 31, 1991
(5) See "Explanation of Financial Highlights"
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
NA - Disclosure not applicable to prior periods.
</TABLE
158
<PAGE>
An Explanation of the Financial Highlights
This schedule provides a per share breakdown of the
components that affect the Funds' 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 Funds' NAV per share
at the beginning of the fiscal period. The next line reports the
Funds' net investment income per share which is comprised of
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 Funds'
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 Funds' expenses may be reduced through expense reduction
arrangements. Those arrangements include the use of broker
commissions and cash balances earning interest or balance credits
with the Funds' custodian and transfer agent bank accounts. The
Statements of Operations reflect the total expenses before any
offset, the amount of offset and the net expenses. The expense
ratios listed in the Financial Highlights reflect total expenses
both prior to any expense offset and after the offsets.
These changes are part of new disclosure requirements. Prior
years do not reflect these changes.
The next line reports the ratio of net investment income,
which is the income earned divided by the average net assets of
the Funds 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 Funds' yield because it doesn't take into
account the dividends distributed to the Funds' investors.
The next ratio provided in this table is the portfolio
turnover rate, which measures the amount of buying and selling
activity in the Funds' portfolio. Portfolio turnover is affected
by market conditions, changes in the size of a Fund, the nature
of the Funds' 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
159
<PAGE>
amount equal to the value of the portfolio is sold in an average
of six months.
The last item on the table is the average commission rate per
share. This number is derived by taking the agency commissions
paid on equity securities trades (excluding Syndicate or IPO and
principal trades amounts but including foreign commissions) and
dividing by the number of shares purchased. This is a new
requirement under revised SEC regulations and is not a meaningful
representation of actual costs incurred.
160
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Adjustable Rate Preferred Stock Dividend Rates are as of April
30, 1996
*Non-Income producing security
**A portion of this security has been segregated by the custodian
to cover margin or segregation requirements on open futures
contracts and/or foreign currency contracts.
+Securities are registered pursuant to Rule 144A and may be
deemed to be restricted for resale.
#The Investment Company Act of 1940 defines affiliates as those
companies in which a fund holds 5% or more of the outstanding
voting securities. Following is a summary of the transactions
with each such affiliate for the period ended April 30, 1996:
</TABLE>
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend
Shares Cost Shares Cost Gain/(Loss) Income
<S> <C> <C> <C> <C> <C> <C>
Janus Fund
AGCO Corp. (1) 300,000 $ 6,695,879 1,697,050 $ 39,962,157 $ 2,611,267 $ 47,983
Cardinal Health, Inc. 2,486,300 135,696,076 - - - 124,016
Computer Sciences Corp. 2,556,048 180,895,759 - - - -
Crown Cork & Seal Co., Inc. - - 4,910,175 226,460,016 (4,853,013) 540,044
Cytec Industries, Inc. 811,700 59,647,350 - - - -
Oce-Van Der Grinten N.V. 284,117 25,114,721 100,000 5,735,420 1,123,987 839,368
Omnicare, Inc. 1,761,250 91,566,563 45,425 2,390,918 331,993 -
Panamerican Beverages, Inc. -
Class A (ADR) 2,275,450 84,119,165 - - - 72,491
Robert Half International,
Inc. 946,625 39,112,478 - - - -
UNUM Corp. 190,000 10,914,622 - - - 3,235,532
Wolters Kluwer N.V. 237,459 21,091,107 361,250 13,407,650 25,055,995 4,219,482
161
<PAGE>
Janus Enterprise Fund
APS Holding Corp. - Class A - - - - - -
Family Golf Centers, Inc. 500,000 8,548,338 - - - -
Insignia Financial Group, Inc. -
Class A (2) - - 63,300 597,394 642,859 -
Petco Animal Supplies, Inc.
(3) 291,413 7,145,035 - - - -
PriCellular Corp. - Class A
(4) 1,250,000 12,250,00 - - - -
TheraTech, Inc. - - 50,000 730,806 178,779 -
Trigen Energy Corp. 100,000 1,705,500 - - - 70,000
Wetherspoon (J.D.) PLC (5) 472,841 5,097,281 - - - 118,833
Janus Mercury Fund
CIBER, Inc. 125,000 2,687,500 - - - -
Janus Twenty Fund
Lone Star Steakhouse & Saloon,
Inc. 278,975 10,424,219 - - - -
Janus Venture Fund
ABC Rail Products Corp. - - 135,000 3,223,807 (240,681) -
All American Communications,
Inc. - Class B 500,000 5,250,000 115,000 1,207,500 (233,750) -
Analysts International Corp. 50,000 1,462,500 - - - 132,135
APS Holding Corp. - Class A - - 264,172 4,474,118 (389,758) -
Arch Communications Group,
Inc. 125,000 2,938,480 - - - -
Ashbourne PLC - - 2,991,816 7,209,160 (1,203,707) 127,477
Bell & Howell Co. 286,525 7,599,687 - - - -
California Amplifier, Inc. - - 335,700 3,870,259 9,017,727 -
Children's Broadcasting Corp. 450,000 4,500,000 - - - -
162
<PAGE>
CommNet Cellular, Inc. 26,400 814,815 - - - -
DavCo Restaurants, Inc. - - 528,950 6,279,673 (2,438,888) -
Dignity Partners, Inc. 202,000 2,461,500 202,000 2,461,500 107,454 -
Exide Corp. 143,000 6,161,098 1,250,065 58,546,550 (19,275,482) 39,415
Felcor Suite Hotels, Inc. 250,000 6,625,000 250,000 6,625,000 851,863 -
Heritage Media Corp. - Class A - - 58,075 992,883 587,204 -
ICU Medical, Inc. 534,150 8,495,303 - - - -
J. P. Foodservice, Inc. 244,925 4,479,308 - - - -
Keane, Inc. 55,575 2,107,973 378,250 3,569,936 5,851,159 -
Klamath First Bancorp, Inc. 172,000 2,250,416 - - - 92,435
Landauer, Inc. - - 195,300 2,953,407 1,023,426 185,625
Littelfuse, Inc. 8,700 330,006 - - - -
Minerals Technologies, Inc. - - - - - 62,892
Motorcar Parts & Accessories,
Inc. 300,000 4,300,625 300,000 4,300,625 (444,410) -
O'Reilly Automotive, Inc. 501,450 15,665,866 25,000 725,000 228,125 -
Papa Johns International, Inc.
(6) 115,688 3,360,291 106,687 2,724,066 2,584,801 -
PIA Merchandising Services,
Inc. 204,000 2,970,250 54,000 756,000 447,501 -
PriCellular Corp. - Class A
(7) 862,500 8,540,937 - - - -
Quality Dining, Inc. 90,250 1,815,334 712,150 12,122,379 7,616,620 -
Rent-Way, Inc. 290,500 2,903,312 - - - -
R.P. Scherer Corp. 30,600 1,293,027 1,252,625 40,776,850 9,565,313 -
Scientific Games Holdings
Corp. 674,400 24,696,161 541,615 20,070,013 (4,320,695) -
Simula, Inc. - - 524,400 6,778,385 1,287,987 -
163
<PAGE>
Southern Energy Homes, Inc. - - 184,650 1,752,129 1,277,471 -
Wisconsin Central Transportation
Corp. - - 61,150 886,675 3,992,251 -
World Acceptance Corp. - - 218,875 1,477,406 799,062 -
Janus Worldwide Fund
Assa-Abloy A.B. - Class B(8) 553,524 2,662,814 - - - -
Axime S.A. 355,061 32,500,955 - - - -
Kinnevik A.B. - Class B - - 614,234 17,162,813 2,133,228 -
Korea Mobile Telecommunications,
Inc. (GDR) - - 18,800 489,345 398,982 9,359
Porsche A.G. 59,718 34,903,077 - - - -
Securitas A.B. - Class B 349,719 20,431,371 - - - -
<FN>
(1) Adjusted for 2 for 1 stock split 2/1/96
(2) Adjusted for 2 for 1 stock split 1/30/96
(3) Adjusted for 3 for 2 stock split 4/16/96
(4) Adjsuted for 5 for 4 stock split 3/29/96
(5) Includes stock option on dividend 1/5/96
(6) Adjusted for 3 for 2 stock split 3/26/96
(7) Adjusted for 5 for 4 stock split 3/29/96
(8) Includes Rights Issue: 1 share for 5 rights 4/10/96
See Notes to Financial Statements
</TABLE>
164
<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. Ten series of shares ("Equity
Funds" or "Funds") included in this report invest primarily in
equity securities. Each Fund is diversified as defined in the
1940 Act, with the exception of the Janus Enterprise and Janus
Twenty Funds, which are non-diversified. Effective December 29,
1995 Janus Olympus Fund began operations. Organization costs were
borne by Janus Capital.
The following policies have been consistently followed by the
Funds and are in conformity with accounting principles generally
accepted in the investment company industry.
Investment Valuation
Securities are valued at the closing price for securities
traded on a principal exchange (U.S. or foreign) and on the
NASDAQ National Market. Securities traded on over-the-counter
markets and listed securities for which no sales are reported are
valued at the latest bid price obtained from one or more dealers,
making a market for such securities or by a pricing service
approved by the Funds' Trustees. Short-term securities maturing
within 60 days are valued at amortized cost, which approximates
market value. Foreign securities are converted to U.S. dollars
using exchange rates at the close of the New York Stock Exchange.
When market quotations are not readily available, securities are
valued at their fair value 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.
165
<PAGE>
Forward Foreign Currency Transactions and Futures Contracts
The Funds enter into forward currency contracts in order to
reduce their exposure to changes in foreign currency exchange
rates on their foreign portfolio holdings and to lock in the U.S.
dollar cost of firm purchase and sale commitments for securities
denominated in foreign currencies. A forward currency exchange
contract is a commitment to purchase or sell a foreign currency
at a future date at a negotiated forward rate. The gain or loss
arising from the difference between the U.S. dollar cost of the
original contract and the value of the foreign currency in U.S.
dollars upon closing of such contract is included in net realized
gain or loss on foreign currency transactions.
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
resultant 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 (i.e., treated as realized and
subject to distribution) for federal income tax purposes at
fiscal year-end.
Foreign denominated assets and forward currency contracts may
involve more risks than domestic transactions, including:
currency risk, political and economic risk, regulatory risk, and
market risk. Risks may arise from the potential inability of a
counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies
relative to the U.S. dollar.
The Funds may enter into "futures contracts" and "options" on
securities; financial indexes and foreign currencies; forward
contracts; and interest rate swaps and swap-related products. The
Funds intend to use such derivative instruments primarily to
hedge or protect from adverse movements in securities prices,
currency rates or interest rates. The use of futures contracts
and options may involve risks such as the possibility of illiquid
markets or imperfect correlation between the value of the
contracts and the underlying securities, or that the counterparty
will fail to perform its obligations.
166
<PAGE>
Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amount
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
Dividend Distributions and Expenses
Dividends for Janus Balanced and Janus Growth and Income
Funds are declared and distributed quarterly and capital gains
(if any) are distributed annually. The remaining eight Equity
Funds declare and distribute dividends and capital gains (if any)
annually. Each Fund bears expenses incurred specifically on its
behalf as well as a portion of general expenses.
Federal Income Taxes
The Funds intend to distribute to shareholders all taxable
investment income and realized gains and otherwise comply with
the Internal Revenue Code applicable to regulated investment
companies.
2. Investment Advisory Agreement and Other Transactions with
Affiliates
The advisory agreement with the Funds spells out the expenses
that the Funds must pay. Each of the Funds is subject to the
following schedule:
Average Daily Net Annual Rate
Fee Schedule Assets of Fund Percentage (%)
Equity Funds
First $30 Million 1.00
Next $270 Million .75
Next $200 Million .70
Over $500 Million .65
Janus Capital will reduce advisory fees to the extent that a
Fund's normal operating expenses (exclusive of brokerage
commissions, interest and taxes) exceed the most restrictive
state limitation, which is believed by the Funds to be 21/2% of
the first $30 million, 2% of the next $70 million and 11/2% of
the balance of a Fund's average net assets for a fiscal year.
Janus Service Corporation (Janus Service), a wholly owned
subsidiary of Janus Capital, received an annual fee of $16 per
shareholder account for transfer agent services plus
167
<PAGE>
reimbursement of certain out of pocket expenses (primarily
postage and telephone charges).
Officers and certain trustees of the Funds are also officers
and/or directors of Janus Capital; however, they receive no
compensation from the Funds.
DST Systems Inc. (DST), an affiliate of Janus Capital through
a degree of common ownership, provides fund accounting and
shareholder accounting systems to the Funds. DST Securities Inc.,
a wholly owned subsidiary of DST, is designated as an
introductory broker on certain portfolio transactions. Brokerage
commissions paid to DST Securities Inc. serve to reduce transfer
agent fees and expenses. Brokerage commissions paid, fees
reduced, and the net fees paid to DST for the year or period
ended April 30, 1996 are noted below.
DST Securities Inc. Fund Commissions Expense
DST Fund
Securities Inc. Expense
Paid* Reduction* DST Fees
Janus Fund $134,851 $101,138 $1,307,621
Janus Balanced Fund 6,084 4,563 40,565
Janus Enterprise Fund 9,402 7,052 141,367
Janus Growth and
Income Fund 47,144 35,358 148,738
Janus Mercury Fund 25,297 18,973 386,961
Janus Olympus Fund - - 11,397
Janus Overseas Fund - - 52,354
Janus Twenty Fund 95,234 71,426 570,860
Janus Venture Fund 28,232 21,174 240,566
Janus Worldwide Fund 9,622 7,217 336,202
*The difference between commissions paid to DST Securities, Inc.
and expenses reduced constituted commissions paid to an
unaffiliated clearing broker.
3. Federal Income Tax
168
<PAGE>
Gains and losses on forward currency contracts and foreign
currency gains and losses on debt instruments are treated as
ordinary income for federal income tax purposes pursuant to
Section 988 of the Internal Revenue Code. Listed below are such
currency gains or losses for the period ended April 30, 1996.
Net capital loss carryovers if any, as of October 31, 1995 are
available to offset future realized capital gains and thereby
reduce future taxable gains distributions. The aggregate cost of
investments and the composition of unrealized appreciation and
depreciation of investment securities for federal income tax
purposes as of April 30, 1996 are as follows:
<TABLE>
<CAPTION>
at October 31, 1995=======================at April 30, 1996========================
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 Fund $72,805,310 - $10,860,251,000 $3,203,228,657 ($112,815,848) $3,090,412,809
Janus Balanced
Fund 487,742 - 139,515,916 15,267,274 (2,810,846) 12,456,428
Janus Enterprise
Fund 433,056 - 479,300,067 155,022,698 (9,764,927) 145,257,771
Janus Growth and
Income Fund 2,295,023 - 666,790,641 136,547,110 (4,834,145) 131,712,965
Janus Mercury
Fund 11,121,261 - 1,777,963,915 279,788,599 (38,248,204) 241,540,395
Janus Olympus
Fund 192,068 - 208,544,258 34,073,246 (1,318,627) 32,754,619
Janus Overseas
Fund 3,075,894 - 264,111,543 38,337,182 (4,289,009) 34,048,173
Janus Twenty
Fund 23,093,847 - 2,888,055,550 601,574,145 (24,291,257) 577,282,888
Janus Venture
Fund 8,037,361 - 1,448,381,037 515,501,501 (20,872,751) 494,628,750
Janus Worldwide
Fund 37,519,637 - 2,573,534,798 533,079,587 (42,441,734) 490,637,853
</TABLE>
169
<PAGE>
THIS PAGE IS AVAILABLE FOR YOUR NOTES AND COMPUTATION
170
00178001.AP5
