Table of Contents
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Our Message to You 1
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Portfolio Manager's Commentary and Schedule of Investments
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Janus Fund 2
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Janus Balanced Fund 7
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Janus Enterprise Fund 12
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Janus Equity Income Fund 15
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Janus Growth and Income Fund 19
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Janus Mercury Fund 22
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Janus Olympus Fund 26
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Janus Overseas Fund 29
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Janus Special Situations Fund 35
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Janus Twenty Fund 38
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Janus Venture Fund 41
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Janus Worldwide Fund 46
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Statements of Operations 52
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Statements of Assets and Liabilities 52
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Statements of Changes in Net Assets 54
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Financial Highlights 56
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Notes to Schedules of Investments 60
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Notes to Financial Statements 62
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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, 1997.
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 Currency Contract Table
A table listing forward currency contracts follows each fund's Schedule of
Investments (if applicable). Forward currency contracts are agreements to
deliver or receive a preset amount of currency at a future date. Forward
currency contracts are used to hedge against foreign currency risk in the fund's
long-term holdings.
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.
<PAGE>
OUR MESSAGE TO YOU
Dear Shareholders:
The stock indexes managed to post substantial gains during the first half
of our fiscal year, October 31, 1996 to April 30, 1997, and a number of indexes
set new records. The gains were not as broad-based as they might appear,
however, because there continued to be a wide gulf between returns on large and
small stocks. The Standard & Poor's 500 Stock Index (the S&P 500 Index), which
measures the performance of large companies, had a total return of 14.71% for
the first half, while the Russell 2000, an index of small stocks, gained only
1.61%. The S&P MidCap 400 Stock Index, which measures the returns of
mid-capitalization stocks, scored in the middle, up 6.88%.
Large-Cap vs. Small-Cap
The gap in performance between large and small stocks has persisted for
well over a year now, and has been widely documented. According to an article in
Barron's magazine (May 5, 1997), it is the most extreme divergence since 1937.
The gap is apparent not only in the broad market, but within individual
indexes. For example, in 1996, the 50 largest stocks in the S&P 500 Index had an
average gain of almost 31%, while the smallest 50 gained just 1.5%. In the much
broader NASDAQ Composite Index, the contrast was even more striking. The 10
biggest stocks had an average gain of 61%, nearly three times the return of the
Index. At the end of March, the average NASDAQ stock was actually down 33.3%
from its 1996-97 high. The net result was that many small- and mid-sized
companies experienced a very difficult six months.
What accounts for the divergence in performance? First, the fundamentals
and earnings potential of large companies have been especially attractive in the
1990s. A stable economy has provided an excellent business climate, and many of
these companies have undertaken major cost-cutting programs, streamlined
operations, and increased productivity via powerful new computer systems. Their
products enjoy worldwide recognition and capture global market share faster than
the competition.
What's more, their familiar names and huge liquidity (or tradability) in
the stock market also made them especially popular as prices climbed into record
territory and investors became increasingly concerned about the possibility of a
major pullback. The Federal Reserve was not encouraging either. Federal Reserve
Board Chairman Alan Greenspan criticized the market's "irrational exuberance,"
and then effected the first interest rate increase since early 1995. Investors
hoped that the liquidity of big stocks would allow them to keep one foot out the
door and still take advantage of the market's good earnings and upward momentum.
International Markets
Measured in U.S. dollars, the Morgan Stanley EAFE Index gained 1.57% for
the first half, with net dividends reinvested.(1) (EAFE stands for Europe,
Australasia, and the Far East. Neither the U.S. market nor the emerging markets
of Latin America and Eastern Europe are represented in EAFE.)
Many overseas markets finished the six months with positive gains. The
economies of Continental Europe remained relatively weak, with slow growth and
low interest rates. The exception was the United Kingdom, where growth was
strong and interest rates rose slightly. In Europe, governments are beginning to
initiate real fiscal and structural reforms in their budgets and capital markets
- - changes that should prove very positive for their financial assets. The strong
dollar also bolstered exports, making European goods cheaper in the U.S.
Latin American markets continued to rebound, but Southeast Asia was mixed.
The dollar's significant appreciation against the yen has hurt exports
throughout the region. Many Southeast Asian governments link their currency
rates to the dollar, and its rise made their products more expensive.
Additionally, some economies have decelerated from previously strong cycles. In
Thailand, for example, a real estate and banking crisis has weighed heavily on
the economy. In Japan, however, the combination of low interest rates and the
strong dollar has injected renewed signs of life into the sluggish Japanese
economy.
How our Funds Performed
A number of Janus funds performed well in the first half, despite the
difficult environment for smaller stocks. Janus Worldwide Fund and Janus
Overseas Fund continued to post exceptional gains, against both their benchmark
indexes and their respective fund groups. Janus Twenty Fund, Janus Growth and
Income Fund, and Janus Special Situations Fund also performed well. You can find
the specific numbers in the Funds' semiannual letters.(2)
Outlook for the Second Half
The economy continues to react very quickly to changes in interest rates.
When economic growth showed signs of picking up in the first calendar quarter of
this year, interest rates began rising, and as of early May, it appears the
economy has once again begun to slow.
On the whole, the Federal Reserve has done a good job of managing economic
growth. I would be surprised if the recent interest rate increase doesn't act to
keep inflation in check and growth at moderate levels. Even if we get additional
rate increases, I don't believe we will have a repeat of 1994, when the Fed
raised rates repeatedly.
Stock prices rebounded sharply just as the period ended. The breadth of the
rally was encouraging: It could mark a return to an environment where
fundamentals and earnings growth, rather than size and liquidity, drive a
company's share price.
Please remember, however, that markets get ahead of themselves from time to
time, and that declines are normal events in the market's life. Stocks can make
progress in spite of these setbacks, but volatility is more the rule than the
exception.
And finally, please keep in mind that reasonable expectations are an
important part of successful long-term investing. We've had exceptional returns
from stocks over the last few years. But, compared to most investments, average
market returns aren't so bad either.
We appreciate your investment with Janus.
Thomas H. Bailey
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(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) 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. Past performance
is no guarantee of future results. Lipper rankings are based on total
return, including reinvested dividends and capital gains.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 1
<PAGE>
JANUS FUND Portfolio Manager, James P. Craig
Performance
Janus Fund gained 6.83% during the first half of our fiscal year, October
31, 1996 to April 30, 1997. The S&P 500 Index gained 14.71% for the same period.
Both returns include reinvested dividends.
During the first half, powerful cash flows into equities, corporate share
buybacks, exceptional earnings growth, and virtually no inflation combined to
make a very strong market. For some time now, stocks have been the preferred
vehicle for retirement investments. Old valuation standards appear to be falling
by the wayside, and frankly, as a traditional business analyst, I am having to
adjust to the new, high P/E environment. Using strict valuation rules caused me
to sell positions too early in some cases and not to invest quickly enough in
others. Perhaps we really are in a new equity environment and the business of
stock picking has changed a bit. In the future, I may have to be more flexible.
For much of the last six months I could not find enough inexpensive
investment opportunities, so I let cash accumulate. Janus Fund's cash position
and the narrow breadth of the market were the primary reasons the Fund did not
keep pace with the Index. For over a year, only the very largest stocks have
been driving Index performance. During the first calendar quarter of 1997, the
largest 100 stocks in the S&P 500 Index accounted for 86.8% of the Index's
performance. In 1996, they accounted for 71%. This has been a market where size
and liquidity took precedence over earnings and business potential.
Starting with the market decline in March and April, I took advantage of
lower prices to put cash to work. I believe we have identified some good
opportunities that will lead to better performance.
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Portfolio Profile April 30, 1997 October 31, 1996
Equities 86.5% 79.0%
Foreign 15.3% 15.5%
Europe 14.6% 13.2%
Top 10 Equities (% of Assets) 20.9% 30.2%
Number of Stocks 141 120
Cash & Cash Equivalents 13.5% 21.0%
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Top 10 Equity Holdings April 30, 1997 October 31, 1996
Citicorp 2.9% 3.1%
Wells Fargo & Co. 2.5% 4.9%
Bank of New York, Co., Inc. 2.5% 2.9%
UNUM Corp. 2.2% 2.5%
Wolters Kluwer N.V. 2.0% 2.7%
Computer Sciences Corp. 1.9% 2.5%
Barclays PLC 1.8% 2.3%
BankAmerica Corp. 1.8% --
Parametric Technology Co. 1.7% 0.2%
United HealthCare Corp. 1.6% --
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Top 5 Industries April 30, 1997 October 31, 1996
Money Center Banks 9.6% 8.5%
Diversified Operations 7.6% 1.5%
Medical-Drugs 7.5% 8.6%
Chemicals-Diversified 5.9% 1.5%
Aerospace and Defense 4.2% 8.1%
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Stock Highlights
Our financial service companies performed well during the last six months.
Familiar names such as Citicorp, Bank of New York, U.K.-based Barclays, and
Associates First Capital, the well-run consumer finance company, were in this
group, along with new holding BankAmerica.
MFS Communications, which was purchased by WorldCom, also performed well,
as did disability insurer UNUM, a longtime holding, and a new position in
General Electric.
The sell-off in technology also afforded an opportunity to establish, or
add to, positions in stable, high-quality technology companies. These companies
are dominant competitors in their market sectors and include Parametric
Technology, a large, very successful developer of engineering and design
software, Intel and Texas Instruments, which have huge market share in the
semiconductor industry, Cisco Systems and Lucent Technologies in computer
networking equipment, and Microsoft in personal computer operating software.
I also continue to maintain substantial positions in selected
pharmaceuticals. I added Warner-Lambert to existing positions in Pfizer, Johnson
& Johnson, SmithKline Beecham, and Bristol Myers Squibb. Warner-Lambert's new
drugs for cholesterol reduction and for diabetes are penetrating the market at
an unprecedented rate, and along with other products in the pipeline, could make
Warner-Lambert the fastest growing major drug company for the next several
years.
I am also extremely optimistic about Equifax, a business services company
that collects and supplies credit information. Not only is demand for credit
information on the rise from cellular service providers and other
telecommunications utilities, but it is also being used by financial companies
to market their services to a defined prospect base. Finally, Wal-Mart was added
to the portfolio after it began to slow its capital expenditures by opening
fewer stores, which should build bottom-line growth. Wal-Mart is also
repurchasing its own stock.
I took losses in aerospace and manufacturing conglomerate Raychem when
margins compressed, and in U.S. Satellite Broadcasting, which experienced slow
subscriber growth for its satellite TV services.
The Current Outlook
As the first half came to a close, stock prices staged a powerful rally.
Initial indications are that the rebound was not confined to just a few large
companies, but included small and medium-sized stocks as well. So I am hopeful
we will return to a market that takes into consideration business fundamentals
and earnings growth and pays less attention to size and liquidity. Markets that
rely too much on arbitrary criteria tend to be short-lived. Over time, solid
business practices and profits determine share price. By those standards, our
companies get high marks, and should do well going forward.
Thank you for your investment in Janus Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 2
<PAGE>
JANUS FUND Portfolio Manager, James P. Craig
Performance Overview
GRAPHIC
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 blue
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, 1997. The upper
right quadrant reflects the ending value of the hypothetical investment in Janus
Fund ($657,556) as compared to the S&P 500 Index ($264,783). 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 13.80%, 13.84%, 15.53% and 16.60%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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, 1997 (unaudited)
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Shares or
Principal Amount Market Value
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Common Stock - 86.3%
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Aerospace and Defense - 4.2%
2,998,350 AlliedSignal, Inc. $216,630,787
1,807,450 Boeing Co. 178,259,756
1,068,875 Northrop Grumman Corp. 89,251,062
2,847,750 United Technologies Corp. 215,361,094
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699,502,699
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Airlines - 1.0%
1,889,825 Delta Air Lines, Inc. 174,100,128
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Apparel Manufacturers - 0.4%
1,740,000 Fruit of the Loom, Inc. - Class A* 62,640,000
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Applications Software - 0.3%
1,109,950 Peoplesoft, Inc.* 46,062,925
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Automotive - Cars and Light Trucks - 0.6%
162,052 Volkswagen A.G. 103,033,353
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Automotive - Truck Parts and Equipment - 0.6%
2,637,000 Federal-Mogul Corp.# 72,847,125
420,575 Magna International, Inc. - Class A 21,922,472
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94,769,597
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Broadcast Services and Programming - 0.1%
821,700 Grupo Televisa S.A. (GDR)* 19,001,812
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Chemicals - Diversified - 5.9%
538,640 Akzo Nobel+ 69,400,007
4,943,675 BASF A.G. 190,705,183
5,501,415 BOC Group PLC** 84,400,965
3,450,725 Cytec Industries, Inc.*,# 129,833,528
2,286,325 E.I. du Pont de Nemours and Co. 242,636,241
6,018,300 Monsanto Co. 257,282,325
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974,258,249
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Chemicals - Specialty - 0.6%
19,144 Ciba Specialty Chemicals A.G.* $ 1,650,079
48,260 Clariant A.G. 27,643,829
746,050 Minerals Technologies, Inc. 26,205,006
757,375 Praxair, Inc. 39,099,484
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94,598,398
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Commercial Banks - 1.8%
410,325 MBNA Corp. 13,540,725
788,400 Northern Trust Corp. 35,083,800
2,176,950 Star Banc Corp. 92,520,375
2,086,650 State Street Corp. 164,323,688
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305,468,588
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Commercial Services - 1.6%
6,047,885 First Data Corp. 208,652,032
773,250 First USA Paymentech, Inc.* 18,654,656
384,950 ServiceMaster L.P. 11,885,331
18,555 SGS Societe Generale de Surveillance
Holdings S.A. 38,408,666
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277,600,685
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Computer Services - 1.9%
356,800 Bell & Howell Co.* 8,429,400
5,012,775 Computer Sciences Corp.*,# 313,298,437
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321,727,837
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Computer Software - 1.2%
612,400 Cadence Design Systems, Inc.* 19,596,800
1,456,600 Microsoft Corp.* 176,976,900
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196,573,700
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Computers - Integrated Systems - 2.0%
6,462,475 Parametric Technology Co.*,# 292,426,994
2,125,000 Wang Laboratories, Inc.*,# 36,921,875
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329,348,869
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See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 3
<PAGE>
JANUS FUND April 30, 1997 (unaudited)
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Shares or
Principal Amount Market Value
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Computers - Mainframe - 0.4%
400,000 IBM Corp. $64,200,000
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Containers - Paper and Plastic - 0.4%
1,400,575 Sealed Air Corp.* 64,776,594
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Cosmetics and Toiletries - 1.4%
1,475,825 Avon Products, Inc. 90,947,716
1,297,175 Colgate-Palmolive Co. 143,986,425
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234,934,141
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Direct Marketing - 0.1%
954,975 Heritage Media Corp.* 17,428,294
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Distribution and Wholesale - 0.1%
875,000 Ikon Office Solutions, Inc.# 23,515,625
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Diversified Financial Services - 1.6%
5,092,950 Associates First Capital Corp. - Class A# 261,013,688
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Diversified Operations - 7.6%
800,000 Corning, Inc. 38,600,000
2,283,600 General Electric Co. 253,194,150
849,977 Hays PLC** 7,537,179
2,712,725 Minnesota Mining and Manufacturing Co. 236,007,075
202,200 National Service Industries, Inc. 8,517,675
5,208,598 Rentokil Initial PLC** 34,186,201
727,450 Textron, Inc. 81,019,744
3,525,000 Tyco International, Ltd. 215,025,000
1,244,825 Unilever N.V - N.Y. Shares 244,296,906
8,929,625 Westinghouse Electric Corp. 151,803,625
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1,270,187,555
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Electronic Components - 0.8%
2,532,442 Philips Electronics N.V. 132,204,931
95,800 Philips Electronics N.V. - N.Y. Shares 5,125,300
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137,330,231
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Electronic Components - Semiconductors - 2.7%
960,000 Applied Materials, Inc.* 52,680,000
181,100 ASM Lithography Holding N.V.* 13,525,977
100,000 ASM Lithography Holding N.V. (ADR)* 7,950,000
1,114,850 Intel Corp. 170,711,406
2,252,400 Texas Instruments, Inc. 201,026,700
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445,894,083
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Finance - Investment Banker/Broker - 0.4%
1,844,425 Charles Schwab Corp. 67,552,066
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Finance - Other Services - 0.7%
3,908,725 Equifax, Inc. 112,375,844
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Food - Canned - 0.6%
1,964,550 Campbell Soup Co. 100,437,619
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Food - Confectionary - 0.2%
615,450 Wrigley (Wm.) Jr., Co. 35,849,962
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Food - Retail - 0.4%
1,650,000 Safeway, Inc.* 73,631,250
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Food - Wholesale - 0.1%
331,800 Coca-Cola Enterprises, Inc. 20,032,425
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Hotels and Motels - 0.1%
806,525 Extended Stay America, Inc.* 12,198,691
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Human Resources - 0.9%
986,700 Manpower, Inc. 39,591,337
2,950,025 Robert Half International, Inc.*,# 115,788,481
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155,379,818
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Instruments - Controls - 0.2%
684,075 Parker Hannifin Corp. 34,032,731
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Instruments - Scientific - 0.2%
389,800 Perkin-Elmer Corp. $28,309,225
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Life and Health Insurance - 3.4%
1,320,925 AFLAC, Inc. 56,799,775
2,000,000 Conseco, Inc. 82,750,000
796,800 Protective Life Corp. 35,258,400
1,172,700 UICI* 31,076,550
4,798,425 UNUM Corp.# 369,478,725
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575,363,450
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Linen Supply and Related Items - 0.2%
502,550 Cintas Corp. 27,514,612
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Machinery - Farm - 0.4%
895,450 AGCO Corp.# 23,169,769
797,650 Deere & Co. 36,691,900
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59,861,669
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Medical - Biomedical and Genetic - 0.1%
503,400 BioChem Pharma, Inc.* 9,053,334
429,775 Immunex Corp.* 11,979,978
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21,033,312
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Medical - Drugs - 7.5%
3,115,025 Bristol-Myers Squibb Co. 204,034,138
1,084,125 Eli Lilly & Co. 95,267,484
7,691,846 Glaxo Wellcome PLC** 151,454,378
2,717,025 Pfizer, Inc. 260,834,400
1,302,183 Rhone-Poulenc** 43,797,496
252,175 Rhone-Poulenc Rorer, Inc. 18,188,122
15,932,427 SmithKline Beecham PLC ** 256,322,144
834,750 SmithKline Beecham PLC (ADR)** 67,301,719
427,900 Teva Pharmaceutical Industries, Ltd. (ADR) 21,715,925
1,216,625 Warner-Lambert Co. 119,229,250
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1,238,145,056
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Medical - HMO - 1.6%
5,645,150 United Healthcare Corp. 274,495,419
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Medical - Hospitals - 0.3%
2,135,050 Tenet Healthcare Corp.* 55,511,300
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Medical - Wholesale Drug Distributors - 0.6%
1,999,787 Cardinal Health, Inc. 106,488,658
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Medical Instruments - 0.6%
1,419,125 Boston Scientific Corp.* 68,472,781
493,200 Guidant Corp. 33,660,900
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102,133,681
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Medical Labs and Testing Services - 0.2%
2,243,575 Covance, Inc.* 33,092,731
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Medical Products - 2.0%
1,617,250 Baxter International, Inc. 77,425,844
4,291,325 Johnson & Johnson 262,843,656
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340,269,500
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Metal - Aluminum - 0.5%
1,141,600 Reynolds Metals Co. 77,486,100
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Money Center Banks - 9.6%
10,463,475 Bank of New York Co., Inc. 413,307,263
2,570,825 BankAmerica Corp. 300,465,172
16,395,529 Barclays PLC** 305,406,864
4,280,625 Citicorp 482,105,391
930,344 Deutsche Bank A.G. 49,105,018
5,774,532 Lloyds TSB Group PLC** 52,845,422
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1,603,235,130
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See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 4
<PAGE>
JANUS FUNDS April 30, 1997 (unaudited)
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Shares or
Principal Amount Market Value
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Multi-Line Insurance - 1.3%
697,775 Allstate Corp. $45,704,262
1,343,300 American International Group, Inc. 172,614,050
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218,318,312
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Multilevel Direct Selling - 0.1%
476,825 Amway Asia Pacific, Ltd. 20,026,650
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Multimedia - 0.3%
2,093,650 Meredith Corp.# 49,200,775
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Networking Products - 1.1%
3,275,025 Cisco Systems, Inc.* 169,482,544
959,575 Xylan Corp.* 14,273,678
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183,756,222
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Office Automation and Equipment - 1.4%
3,875,800 Xerox Corp. 238,361,700
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Office Supplies and Forms - 0.1%
700,000 Wallace Computer Services, Inc. 18,725,000
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Oil Companies - Exploration and Production - 0.5%
1,030,525 Burlington Resources, Inc.43,668,497
1,342,675 Triton Energy, Ltd.*,# 49,343,306
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93,011,803
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Oil Companies - Integrated - 1.6%
930,000 Royal Dutch Petroleum Co. - N.Y. Shares 167,632,500
1,028,000 Unocal Corp. 39,192,500
2,047,900 YPF S.A. (ADR) 56,573,238
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263,398,238
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Pharmacy Services - 0.4%
2,705,600 Omnicare, Inc. 65,949,000
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Printing - Commercial - 0.2%
1,482,100 World Color Press, Inc.* 35,570,400
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Publishing - Books - 2.1%
801,000 Reed International PLC** 14,784,117
2,838,259 Wolters Kluwer N.V. 336,405,548
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351,189,665
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Publishing - Newspapers - 0.1%
872,000 Hollinger International, Inc. 8,720,000
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Retail - Discount - 0.7%
4,121,650 Wal-Mart Stores, Inc. 116,436,612
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Retail - Hypermarkets - 0.5%
2,919,675 Costco Companies, Inc.* 84,305,616
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Retail - Major Department Stores - 0.4%
1,297,500 J.C. Penney Co., Inc. 61,955,625
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Savings/Loan/Thrifts - 0.2%
535,762 Downey Financial Corp. 10,380,389
718,175 Long Island Bancorp, Inc. 24,417,950
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34,798,339
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Soap and Cleaning Preparations - 0.2%
2,551,500 Dial Corp. 39,548,250
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Super-Regional Banks - 2.5%
1,577,025 Wells Fargo & Co. 420,671,419
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Telecommunication Equipment - 2.1%
630,175 ECI Telecommunications, Ltd. 13,785,078
2,448,575 Lucent Technologies, Inc. 144,771,997
2,000,000 Nokia Corp. (ADR) - Class A 129,250,000
745,325 Northern Telecom, Ltd. 54,129,228
- --------------------------------------------------------------------------------
341,936,303
- --------------------------------------------------------------------------------
Telecommunication Services - 0.2%
1,077,075 Telefonaktiebolaget L.M. Ericsson (ADR) - Class B 36,216,647
- --------------------------------------------------------------------------------
Telephone - Local - 0.7%
2,004,150 Cincinnati Bell, Inc. $112,232,400
- --------------------------------------------------------------------------------
Telephone - Long Distance - 0.6%
4,061,069 WorldCom, Inc.* 97,465,656
- --------------------------------------------------------------------------------
Television - 0.3%
917,250 Univision Communications, Inc.* 31,186,500
916,300 Young Broadcasting Corp. - Class A*,# 24,281,950
- --------------------------------------------------------------------------------
55,468,450
- --------------------------------------------------------------------------------
Tobacco - 0.6%
2,415,025 Philip Morris Companies, Inc. 95,091,609
- --------------------------------------------------------------------------------
Total Common Stock (cost $11,729,275,153) 14,414,751,991
- --------------------------------------------------------------------------------
Preferred Stock - 0.2%
- --------------------------------------------------------------------------------
Medical Products - 0.2%
1,096,119 Fresenius Medical Care A.G. (ADR)*
(cost $29,677,387) 32,198,496
Short-Term Corporate Notes - 5.3%
Bell Atlantic Corp.:
$50,000,000 5.50%, 5/2/97 49,992,361
50,000,000 5.47%, 5/5/97 49,969,611
50,000,000 5.45%, 5/8/97 49,947,014
Coca-Cola Co.:
50,000,000 5.47%, 5/15/97 49,893,639
50,000,000 5.43%, 5/19/97 49,864,250
Deutsche Bank A.G.
50,000,000 5.47%, 5/12/97 49,916,431
Ford Motor Credit Corp.
50,000,000 5.47%, 5/22/97 49,840,458
General Electric Capital Corp.:
89,600,000 5.50%, 5/1/97 89,600,000
50,000,000 5.50%, 5/9/97 49,938,889
50,000,000 5.50%, 5/16/97 49,885,417
100,000,000 5.27%, 5/19/97 99,736,500
J.P. Morgan and Co.:
50,000,000 5.60%, 5/1/97 50,000,000
50,000,000 5.46%, 5/19/97 49,863,500
50,000,000 5.46%, 5/22/97 49,840,750
50,000,000 5.60%, 7/17/97 49,395,500
NationsBank Corp.
50,000,000 5.25%, 5/21/97 49,854,167
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $887,544,097) 887,538,487
- --------------------------------------------------------------------------------
Time Deposit - 0.5%
91,000,000 First Union Bank of North Carolina
5.6875%, 5/1/97 (cost $91,000,000) 91,000,000
U.S. Government Agencies - 5.6%
Fannie Mae:
50,000,000 5.35%, 5/27/97 49,806,806
50,000,000 8.91%, 6/16/97 49,653,083
50,000,000 5.72%, 7/10/97 49,458,500
50,000,000 5.72%, 7/17/97 49,405,000
200,000,000 5.72%, 7/18/97 197,590,000
50,000,000 6.01%, 8/21/97 49,132,000
100,000,000 5.26%, 8/25/97 99,899,000
50,000,000 6.39%, 9/18/97 48,913,000
50,000,000 6.75%, 10/10/97 48,727,500
Federal Home Loan Bank System:
50,000,000 8.34%, 5/1/97 50,000,000
50,000,000 8.34%, 5/13/97 49,913,333
50,000,000 9.25%, 6/6/97 49,735,500
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 5
<PAGE>
JANUS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
U.S. Government Agencies - (continued)
Federal Home Loan Bank System: (continued)
$50,000,000 9.25%, 6/20/97 $49,621,528
50,000,000 8.95%, 6/30/97 49,536,500
50,000,000 5.72%, 7/18/97 49,399,500
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $941,060,959) 940,791,250
- --------------------------------------------------------------------------------
U.S. Government Obligations - 1.2%
U.S. Treasury Bills:
100,000,000 5.07%, 8/14/97 98,460,000
100,000,000 5.03%, 8/21/97 98,345,000
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (amortized cost $196,974,965) 196,805,000
- --------------------------------------------------------------------------------
Total Investments (total cost $13,875,532,561) - 99.1% 16,563,085,224
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.9% 148,403,830
- --------------------------------------------------------------------------------
Net Assets - 100% $16,711,489,054
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 0.3% $ 56,573,238
Finland 0.8% 129,250,000
France 0.3% 43,797,496
Germany 2.3% 375,042,050
Hong Kong 0.1% 20,026,650
Israel 0.1% 21,715,925
Mexico 0.1% 19,001,812
Netherlands 4.9% 808,908,669
Sweden 0.2% 36,216,647
Switzerland 0.4% 67,702,574
United Kingdom 5.9% 974,238,989
United States++ 84.6% 14,010,611,174
- --------------------------------------------------------------------------------
Total 100.0% $16,563,085,224
================================================================================
++Includes Short-Term Securities (71.8% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/24/97 240,000,000 $389,016,000 $ 4,200,000
British Pound 7/28/97 120,000,000 194,484,000 (412,920)
British Pound 8/20/97 150,000,000 243,015,000 (3,869,250)
French Franc 10/10/97 120,000,000 20,819,237 253,728
- --------------------------------------------------------------------------------
$847,334,237 $171,558
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 6
<PAGE>
JANUS BALANCED FUND Portfolio Manager, Blaine P. Rollins
Performance
Janus Balanced Fund gained 6.73% during the first half of our fiscal year
ended April 30, 1997. During the same period, the S&P 500 Index returned 14.71%
and the Lehman Brothers Government/Corporate Bond Index gained 1.30%. All
returns include reinvested dividends.
The Fund delivered solid performance in spite of a volatile interest rate
environment and the sharp divergence between hot-performing large stocks and
much weaker small- and mid-sized companies.
Portfolio strategy continued to focus on high-quality companies that
generate significant amounts of discretionary cash and use it prudently -- often
to buy back their own shares. But until the market decline late in the period,
it was hard to find many inexpensive opportunities. The spring sell-off cleared
the air, and I was able to establish new positions as well as add to existing
holdings.
Review of the First Half
Given the volatility of interest rates, fixed-income maturities were kept
relatively short, mostly in the two- to five-year range. When the yield on the
30-year Treasury bond moved above 7% near the end of the period, however, I
added a small position in 30-year Treasuries to slightly lengthen the
portfolio's weighted average maturity.
Fixed-income holdings consist of a diverse mix of Treasuries, convertible
bonds, investment-grade and high-yield corporate bonds, and preferred stocks.
Our high-quality corporates and Treasuries provide income and portfolio
stability, while the convertibles and high-yield securities produce income and
allow for capital appreciation potential as the issuing companies' fundamentals
improve.
Predictable earnings growth remains the focus of our equity holdings. Our
financial companies are especially exciting. Included in this group are new
positions in small thrifts, which are selling shares to the public, often very
inexpensively. Finally, the decline in technology stocks provided an opportunity
to add companies that have built durable, often dominant, market positions.
The Portfolio
- --------------------------------------------------------------------------------
Portfolio Asset Mix April 30, 1997 October 31, 1996
Equities 56.8% 49.7%
Number of Stocks 116 120
Top 10 Stocks (% of Total Assets) 17.8% 18.3%
Fixed-Income Securities
U.S. Treasury Bonds 15.3% 22.2%
Investment-Grade Corp. Bonds 8.0% 12.3%
High-Yield Corporate Bonds 12.7% 7.2%
Foreign Corporate Bonds -- 1.5%
Preferred Stock 4.6% 2.2%
Cash & Cash Equivalents 2.6% 4.9%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Dionex Corp. 3.2% 2.8%
Associates First Capital Corp.
- Class A 2.5% 1.1%
Nationwide Financial Services, Inc.
- Class A 2.1% --
E.I. du Pont de Nemours and Co. 1.6% --
Robert Half International, Inc. 1.6% 1.8%
UNUM Corp. 1.6% 2.2%
Wells Fargo & Co. 1.5% 3.7%
Phillip Morris Companies, Inc. 1.4% --
Walden Residential Properties, Inc. 1.2% --
Star Banc Corp. 1.1% --
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Life and Health Insurance 7.1% 5.7%
Commercial Banks 6.6% 0.4%
Savings/Loan/Thrifts 5.9% 3.2%
Money Center Banks 4.5% 3.5%
Instruments - Scientific 3.9% 2.8%
- --------------------------------------------------------------------------------
Portfolio Highlights
During the first half, Dionex, which manufactures ion chromatography
equipment used in color spectrum analysis, continued to use excess cash flow to
buy back shares, while carefully managing its expenditures and investments.
Consumer lender Associates First Capital is also still exceeding our
expectations in both earnings and asset growth.
Unilever was increased, as were positions in small financial institutions.
Margins at Unilever are improving and the company is spinning off its chemical
unit to focus on consumer products. Many small financial institutions are cheap
relative to their capital structure and earnings potential. They are
distributing extra cash to shareholders as dividends or through share buybacks.
Standard Financial is being acquired, another example of the consolidation wave
that is also rolling through the industry.
Important additions this half included Nationwide Financial Services and
DuPont. Nationwide is a newly public company spun off from Nationwide Insurance.
It is one of the top three participants in the rapidly growing variable annuity
market. New senior management at DuPont is increasing returns by lowering costs,
fixing broken businesses, and allocating capital to high-return operations.
Dade International is an attractive high-yield bond we own. Dade makes
diagnostic equipment used by hospitals to test blood and tissue. Dade recently
purchased the diagnostic equipment division of Hoechst, a large German
conglomerate.
Both disability insurer UNUM and banking giant Wells Fargo were modestly
reduced. They have been terrific performers, but the positions had grown too
large. I took losses in Heritage Media and U.S. Satellite Broadcasting (USSB).
Heritage was a frustrating situation. I sold Heritage after it missed its
earnings target, but then the company was acquired. At USSB, subscriber demand
for satellite TV was less than I expected.
Current Outlook
A powerful market rebound began as the first half ended, and it now appears
the economy is slowing from its first-quarter growth spurt. Even if interest
rates move moderately higher, it should not appreciably affect our fixed-income
holdings or the earnings of our companies. I beleive our financial stocks, for
example, have the potential to achieve growth rates in the high teens, while
trading at ten to twelve times our 1998 earnings estimates - or just 50% to 60%
of the current market multiple. Consumer credit quality is also unlikely to
derail our financial stocks, given the robust state of the general economy. In
sum, the long-term earnings outlook for the portfolio remains very encouraging.
Thank you for your continued investment in Janus Balanced Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 7
<PAGE>
JANUS BALANCED FUND Portfolio Manager, Blaine P. Rollins
Performance Overview
GRAPHIC
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Balanced Fund and the S&P 500 Index. Janus Balanced Fund is represented
by a solid blue line. The S&P 500 Index is represented by a single dashed black
line. The Lehman Brothers Government/Corporate Bond Index is represented by a
single dotted black line. The "y" axis reflects the value of the investment. The
"x" axis reflects the computation periods from inception, September 1, 1992,
through April 30, 1997. The upper right quadrant reflects the ending value of
the hypothetical investment in Janus Balanced Fund ($18,967) as compared to the
S&P 500 Index ($21,799) and the Lehman Brothers Government/Corporate Bond Index
($13,414). 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 15.51% and 14.70%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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 BALANCED FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 56.8%
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.8%
13,775 Thiokol Corp. $ 898,819
16,550 United Technologies Corp. 1,251,594
- --------------------------------------------------------------------------------
2,150,413
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 0.5%
46,600 Federal-Mogul Corp. 1,287,325
- --------------------------------------------------------------------------------
Casino Services - 0.2%
103,032 London Clubs International PLC** 643,642
- --------------------------------------------------------------------------------
Chemicals - Diversified - 3.0%
5,704 Akzo Nobel 734,921
49,609 BASF A.G. 1,913,696
86,338 BOC Group PLC** 1,324,570
42,150 E.I. du Pont de Nemours and Co. 4,473,169
- --------------------------------------------------------------------------------
8,446,356
- --------------------------------------------------------------------------------
Commercial Banks - 2.8%
33,200 Chester Bancorp, Inc. 489,700
23,750 First Savings Bancorp, Inc. 469,062
24,800 MBNA Corp. 818,400
16,500 Northern Trust Corp. 734,250
68,825 Star Banc Corp. 2,925,062
24,675 State Street Corp. 1,943,156
23,850 Sterling Bancorp 381,600
- --------------------------------------------------------------------------------
7,761,230
- --------------------------------------------------------------------------------
Commercial Services - 0.5%
28,825 First USA Paymentech, Inc.* 695,403
336 SGS Societe Generale de Surveillance
Holdings S.A. 695,517
- --------------------------------------------------------------------------------
1,390,920
- --------------------------------------------------------------------------------
Computer Software - 0.5%
28,500 Parametric Technology Co.* 1,289,625
- --------------------------------------------------------------------------------
Consumer Products - 0.3%
39,275 Gibson Greetings, Inc.* $ 805,138
- --------------------------------------------------------------------------------
Containers - Paper and Plastic - 0.4%
24,550 Sealed Air Corp.* 1,135,438
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 0.5%
24,225 Avon Products, Inc. 1,492,866
- --------------------------------------------------------------------------------
Diversified Financial Services - 2.5%
136,600 Associates First Capital Corp. - Class A 7,000,750
- --------------------------------------------------------------------------------
Diversified Operations - 1.7%
31,050 Minnesota Mining and Manufacturing Co. 2,701,350
10,675 Unilever N.V. - N.Y. Shares 2,094,969
- --------------------------------------------------------------------------------
4,796,319
- --------------------------------------------------------------------------------
Electric Products - 0.3%
19,750 UCAR International, Inc.* 829,500
- --------------------------------------------------------------------------------
Electronic Components - 0.6%
30,068 Philips Electronics N.V. 1,569,686
4,175 Philips Electronics N.V. - N.Y. Shares 223,363
- --------------------------------------------------------------------------------
1,793,049
- --------------------------------------------------------------------------------
Electronic Safety Devices - 0.4%
20,225 Pittway Corp. - Class A 1,076,981
- --------------------------------------------------------------------------------
Finance - Consumer Loans - 0.3%
86,908 Provident Financial PLC** 805,207
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.7%
55,775 Charles Schwab Corp. 2,042,759
- --------------------------------------------------------------------------------
Finance - Other Services - 0.9%
89,225 Equifax, Inc. 2,565,219
- --------------------------------------------------------------------------------
Food - Canned - 0.6%
34,750 Campbell Soup Co. 1,776,594
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 8
<PAGE>
JANUS BALANCED FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Food - Confectionary - 0.3%
15,700 Wrigley (Wm.) Jr., Co. $ 914,525
- --------------------------------------------------------------------------------
Gas - Distribution - 0.7%
78,067 Southern Union Co.* 1,863,850
- --------------------------------------------------------------------------------
Hotels and Motels - 0.3%
55,750 Extended Stay America, Inc.* 843,219
- --------------------------------------------------------------------------------
Human Resources - 1.7%
11,600 Manpower, Inc. 465,450
111,275 Robert Half International, Inc.* 4,367,544
- --------------------------------------------------------------------------------
4,832,994
- --------------------------------------------------------------------------------
Instruments - Scientific - 3.9%
180,875 Dionex Corp.* 8,840,266
26,175 Perkin-Elmer Corp. 1,900,959
- --------------------------------------------------------------------------------
10,741,225
- --------------------------------------------------------------------------------
Life and Health Insurance - 7.1%
27,250 AFLAC, Inc. 1,171,750
29,675 Delphi Financial Group, Inc. - Class A* 1.053,462
15,450 Liberty Corp. 598,687
219,225 Nationwide Financial Services, Inc. - Class A* 5,809,462
42,475 Protective Life Corp. 1,879,519
30,025 Reinsurance Group of America 1,493,744
94,575 UICI* 2,506,237
56,000 UNUM Corp. 4,312,000
34,975 Western National Corp. 900,606
- --------------------------------------------------------------------------------
19,725,467
- --------------------------------------------------------------------------------
Machinery - Farm - 0.2%
10,650 Deere & Co. 489,900
- --------------------------------------------------------------------------------
Machinery - Pumps - 0.4%
42,100 Pfeiffer Vacuum Technology A.G. (ADR)* 978,825
- --------------------------------------------------------------------------------
Manufacturing - 0.5%
32,425 Roper Industries, Inc. 1,325,372
- --------------------------------------------------------------------------------
Medical - Drugs - 1.1%
39,778 Rhone-Poulenc - Class A** 1,337,889
10,825 SmithKline Beecham PLC (ADR)** 872,766
18,875 Teva Pharmaceutical Industries, Ltd. (ADR) 957,906
- --------------------------------------------------------------------------------
3,168,561
- --------------------------------------------------------------------------------
Medical - HMO - 0.8%
44,200 United Healthcare Corp. 2,149,225
- --------------------------------------------------------------------------------
Medical Labs and Testing Services - 0.3%
50,350 Covance, Inc.* 742,662
- --------------------------------------------------------------------------------
Metal - Aluminum - 0.3%
10,875 Reynolds Metals Co. 738,141
- --------------------------------------------------------------------------------
Money Center Banks - 4.5%
67,400 Bank of New York Co., Inc. 2,662,300
24,975 BankAmerica Corp. 2,918,953
155,260 Barclays PLC** 2,892,098
23,425 Citicorp 2,638,241
12,545 Deutsche Bank A.G. 662,145
79,746 Lloyds TSB Group PLC** 729,793
- --------------------------------------------------------------------------------
12,503,530
- --------------------------------------------------------------------------------
Mortgage Banks - 0.3%
16,085 Deutsche Pfandbrief & Hypothekenbank A.G. 875,000
- --------------------------------------------------------------------------------
Multimedia - 0.3%
36,700 Meredith Corp. 862,450
- --------------------------------------------------------------------------------
Music/Clubs - 0.3%
48,125 Steinway Musical Instruments* 824,141
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.4%
6,350 Royal Dutch Petroleum Co. - N.Y. Shares 1,144,587
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 1.3%
16,050 Foremost Corp. of America $ 852,656
20,950 Mercury General Corp. 1,298,900
16,725 Transatlantic Holdings, Inc. 1,383,994
- --------------------------------------------------------------------------------
3,535,550
- --------------------------------------------------------------------------------
Publishing - Books - 0.7%
17,229 Wolters Kluwer N.V. 2,042,073
- --------------------------------------------------------------------------------
Real Estate Investment Trust - 1.4%
112,700 Innkeepers USA Trust 1,577,800
20,275 Mid-America Apartment Communities, Inc. 524,616
35,725 Redwood Trust, Inc. 1,679,075
- --------------------------------------------------------------------------------
3,781,491
- --------------------------------------------------------------------------------
Retail - Building Products - 0.3%
17,850 Fastenal Co. 696,150
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 0.3%
17,050 J.C. Penney Co., Inc. 814,137
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 5.9%
38,375 BostonFed Bancorp, Inc. 585,219
17,650 Calumet Bancorp, Inc.* 622,162
40,450 Catskill Financial Corp. 581,469
4,176 Downey Financial Corp. 80,910
20,000 FFLC Bancorp, Inc. 540,000
25,000 FFVA Financial Corp. 531,250
51,925 First Bell Bancorp, Inc. 759,403
37,175 First Defiance Financial Corp. 473,981
30,925 First Savings Bank of Washington Bancorp, Inc. 649,425
31,575 Flushing Financial Corp. 584,137
36,375 GA Financial, Inc. 572,906
25,000 Home Bancorp 503,125
69,925 Home Bancorp of Elgin, Inc. 1,048,875
18,000 Jacksonville Bancorp, Inc. 253,125
11,975 JSB Financial, Inc. 508,937
110,700 Klamath First Bancorp, Inc. 1,964,925
20,050 Long Island Bancorp, Inc. 681,700
33,675 Mechanics Savings Bank* 578,789
35,000 North Central Bancshares, Inc. 549,062
25,225 Ocean Financial Corp. 745,714
46,450 Reliance Bancorp, Inc. 1,050,931
83,400 Roslyn Bancorp, Inc.* 1,355,250
4,000 SFS Bancorp, Inc. 69,000
32,250 South Street Financial Corp. 520,031
28,725 Standard Financial, Inc. 657,084
- --------------------------------------------------------------------------------
16,467,410
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.3%
7,870 CLF-Dexia France** 728,158
- --------------------------------------------------------------------------------
Super-Regional Banks - 1.5%
16,108 Wells Fargo & Co. 4,296,809
- --------------------------------------------------------------------------------
Telephone - Local - 1.0%
48,925 Cincinnati Bell, Inc. 2,739,800
- --------------------------------------------------------------------------------
Television - 0.4%
44,025 Young Broadcasting Corp. - Class A* 1,166,662
- --------------------------------------------------------------------------------
Textile - Apparel - 0.2%
5,784 Wolford A.G. 596,076
- --------------------------------------------------------------------------------
Tobacco - 1.4%
102,275 Philip Morris Companies, Inc. 4,027,078
- --------------------------------------------------------------------------------
Transportation - Truck - 0.9%
136,025 Consolidated Freightways Corp.* 1,496,275
50,400 Roadway Express, Inc. 882,000
- --------------------------------------------------------------------------------
2,378,275
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 9
<PAGE>
JANUS BALANCED FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Travel Services - 0.3%
320 Kuoni Reisen A.G. - Class B $ 920,840
- --------------------------------------------------------------------------------
Total Common Stock (cost $137,271,428) 158,003,514
- --------------------------------------------------------------------------------
Corporate Bonds - 20.7%
- --------------------------------------------------------------------------------
Aerospace and Defense - 1.3%
$3,700,000 Lockheed Martin Corp., 6.55%
company guaranteed unsecured notes,
due 5/15/99 3,700,000
- --------------------------------------------------------------------------------
Building Products - Air and Heating - 0.2%
500,000 American Standard Companies, Inc., 11.375%
senior debentures, due 5/15/04 531,250
- --------------------------------------------------------------------------------
Commercial Banks - 3.8%
8,050,000 First Nationwide Escrow Corp., 10.625%
senior subordinated notes, due 10/1/03 8,573,250
2,000,000 First Nationwide Holdings, Inc., 9.125%
senior subordinated notes, due 1/15/03 2,015,000
- --------------------------------------------------------------------------------
10,588,250
- --------------------------------------------------------------------------------
Commerical Services - 0.4%
1,250,000 Quintiles Transnational Corp., 4.25%
subordinated notes, due 5/31/00+ 1,178,125
- --------------------------------------------------------------------------------
Computers - Mainframe - 1.4%
4,000,000 IBM Corp., 6.375%
global notes, due 6/15/00 3,965,000
- --------------------------------------------------------------------------------
Engineering - Research and Development - 2.0%
5,500,000 Intertek Finance PLC, 10.25%
senior subordinated notes, due 11/1/06 5,637,500
- --------------------------------------------------------------------------------
Finance - Consumer Loans - 1.1%
3,000,000 Household International Netherlands N.V., 6.00%
senior notes, due 3/15/99 2,970,000
- --------------------------------------------------------------------------------
Finance - Credit Card - 0.4%
1,000,000 Capital One Bank, 6.875%
notes, due 4/24/00 991,250
- --------------------------------------------------------------------------------
Finance - Leasing Companies - 1.8%
2,430,000 International Lease Finance Corp., 7.50%
notes, due 3/1/99 2,472,525
2,525,000 Ryder Trucks, Inc., 10.00%
senior subordinated notes, due 12/1/06 2,543,938
- --------------------------------------------------------------------------------
5,016,463
- --------------------------------------------------------------------------------
Food - Retail - 1.6%
4,000,000 Smith's Food & Drug Centers, Inc., 11.25%
senior subordinated notes, due 5/15/07 4,470,000
- --------------------------------------------------------------------------------
Medical Labs and Testing Services - 1.2%
2,930,000 Dade International, Inc., 11.125%
senior subordinated notes, due 5/1/06 3,201,025
- --------------------------------------------------------------------------------
Multimedia - 1.2%
3,400,000 Walt Disney Co. (The), 6.375%
senior notes, due 3/30/01 3,349,000
- --------------------------------------------------------------------------------
Paint and Related Products - 0.2%
500,000 Sherwin-Williams Co., 6.25%
notes,due 2/1/00 494,375
- --------------------------------------------------------------------------------
Recreational Vehicles - 0.3%
953,000 Outboard Marine Corp., 7.00%
debentures, due 7/1/02 881,525
- --------------------------------------------------------------------------------
Retail - Hypermarkets - 1.0%
2,710,000 Costco Companies, Inc., 5.75%
debentures, due 5/15/02 2,655,800
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 0.6%
1,800,000 Sears, Roebuck and Co., 6.50%
notes, due 6/15/00 1,782,000
- --------------------------------------------------------------------------------
Shipbuilding - 0.9%
Newport News Shipbuilding, Inc.:
$ 1,950,000 8.625% senior notes, due 12/1/06 $ 1,954,875
650,000 9.25% senior subordinated notes,
due 12/01/06 659,750
- --------------------------------------------------------------------------------
2,614,625
- --------------------------------------------------------------------------------
Television - 1.3%
3,700,000 Young Broadcasting Corp., 9.00%
senior subordinated notes, due 1/15/06 3,533,500
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $57,733,947) 57,559,688
- --------------------------------------------------------------------------------
U.S. Government Obligations - 15.3%
U.S. Treasury Notes:
15,950,000 6.375%, due 5/15/99 15,971,692
5,150,000 5.75%, due 10/31/00 5,033,863
7,000,000 5.625%, due 11/30/00 6,808,760
5,000,000 6.62%, due 4/30/02 5,010,938
6,650,000 6.25%, due 2/15/07 6,428,028
3,350,000 6.625%, due 2/15/27 3,207,156
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $42,562,637) 42,460,437
- --------------------------------------------------------------------------------
Preferred Stock - 4.6%
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.8%
39,500 Unocal Corp., 6.25% 2,152,750
- --------------------------------------------------------------------------------
Real Estate Investment and Managment - 0.8%
47,117 Insignia Financial Group, Inc., 6.50% + 2,132,044
- --------------------------------------------------------------------------------
Real Estate Investment Trust - 1.6%
136,275 Walden Residential Properties, Inc.,
Convertible, Series B, 9.16% 3,440,944
39,875 Walden Residential Properties, Inc., 9.20% 996,875
- --------------------------------------------------------------------------------
4,437,819
- --------------------------------------------------------------------------------
Telecommunication Equipment - 0.7%
46,725 QUALCOMM, Inc., 5.75% + 2,102,625
- --------------------------------------------------------------------------------
Telecommunication Services - 0.7%
32,935 Salomon, Inc. Exchangeable Notes,
(Cincinnati Bell, Inc.), 6.25% 1,856,711
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $13,906,423) 12,681,949
- --------------------------------------------------------------------------------
Warrants - 0%
39,875 Walden Residential Properties, Inc.
exp. 1/1/02 (cost $19,937) 54,828
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 2.7%
$ 5,000,000 AVCO Financial Service
5.60%, 7/24/97 4,933,750
2,700,000 General Electric Capital Corp.
5.62%, 5/1/97 2,700,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $7,634,667) 7,633,750
- --------------------------------------------------------------------------------
Total Investments (total cost $259,129,039) - 100.1% 278,394,166
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.1%) (262,643)
- --------------------------------------------------------------------------------
Net Assets - 100% $278,131,523
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 10
<PAGE>
JANUS BALANCED FUND April 30, 1997 (unaudited)
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Austria 0.2% $ 596,076
France 0.7% 2,066,047
Germany 1.6% 4,429,666
Israel 0.4% 957,906
Netherlands 2.4% 6,665,012
Switzerland 0.6% 1,616,357
United Kingdom 2.6% 7,268,076
United States++ 91.5% 254,795,026
- --------------------------------------------------------------------------------
Total 100.0% $278,394,166
================================================================================
++ Includes Short-Term Securities (88.8% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/28/97 1,850,000 $2,998,295 ($ 6,366)
British Pound 8/20/97 700,000 1,134,070 (18,056)
British Pound 9/25/97 220,000 356,224 (4,466)
French Franc 10/10/97 5,000,000 867,468 10,572
- --------------------------------------------------------------------------------
$5,356,057 ($18,316)
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 11
<PAGE>
JANUS ENTERPRISE FUND Portfolio Manager, James P. Goff
Performance
Janus Enterprise Fund was down 14.67% for the first half of our fiscal
year, October 31, 1996 to April 30, 1997. The Standard & Poor's MidCap 400 Index
gained 6.88%. All returns include reinvested dividends.
I am very disappointed with our results - to put it mildly. As a portfolio
manager, this is the most frustrating stretch I have yet encountered.
Unfortunately, the gains in large stocks have masked some very steep declines
among small- and mid-capitalization companies. A recent article in Barron's
magazine (May 5, 1997) calculated that over the last 12 months the performance
divergence between large, highly liquid stocks and smaller companies was the
worst since World War II. The market has placed a very high premium on
liquidity, supporting only the largest stocks in each capitalization category.
Stocks with high price-earnings multiples (P/Es) were especially hard hit,
even when they met or exceeded earnings estimates. Most of our companies are
actually thriving on a fundamental basis, but their prices came down anyway.
Historically, mid-cap earnings growth rates tend to far outpace those of larger
companies, and ultimately stock prices are driven by earnings growth. Given the
historical norm, the real value in the market is now in small- and mid-cap
equities.
Just as the period ended, the broad market experienced a dramatic rebound,
which has carried over into early May. But even if the breadth of the rally
proves temporary, I believe eventually earnings growth and business fundamentals
- - not size - will again be the primary drivers of share price.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 91.6% 97.0%
Foreign 17.9% 19.0%
Europe 15.8% 19.0%
Number of Stocks 54 37
Top 10 Stocks (% of Assets) 48.8% 53.4%
Cash & Cash Equivalents 8.3% 3.1%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
PizzaExpress PLC 8.0% 5.6%
Fastenal Co. 7.6% 8.4%
Wetherspoon (J.D.) PLC 7.1% 5.5%
Petco Animal Supplies, Inc. 4.7% 3.2%
Insignia Financial Group, Inc.
- Class A 4.2% 4.4%
Papa John's International, Inc. 3.7% 2.9%
Trigen Energy Corp. 3.7% 3.0%
HFS, Inc. 3.4% 7.6%
Wisconsin Central
Transportation Corp. 3.2% 3.6%
Apollo Group, Inc. - Class A 3.2% --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Retail - Restaurants 11.8% 8.5%
Retail - Building Products 7.6% 8.4%
Retail - Pubs 7.1% 5.5%
Retail - Miscellaneous
and Diversified 4.7% --
Real Estate Investment
and Management 4.2% --
- --------------------------------------------------------------------------------
Stock Highlights
Papa John's International was an example of my frustration this last six
months. Papa John's is a well-run pizza delivery chain which prides itself on
quality products and service. The company has reported quarterly earnings gains
of 56% and 48%, nicely exceeding our expectations for long-term growth of 35%
and Wall Street's estimates of 30%. In spite of its fundamental outperformance,
the stock has declined 25%.
In general, restaurants and wireless communications, two areas where the
Fund was heavily invested, drastically underperformed the general market. Our
three restaurant/pub companies achieved average earnings gains of 48% in the
most recent period, but underperformed due to the negative perception of the
restaurant group. PriCellular and CommNet also handily beat earnings estimates,
but their stock prices continued to be depressed, again due to poor market
perception, not to any deterioration in fundamentals. However, Paging Network
was sold at a loss when unexpectedly large investments in its new paging
product, VoiceNow, put our estimates in jeopardy.
The Fund's largest position is Fastenal, which sells nuts, bolts, power
tools and other industrial products. At Fastenal, the thesis for rapidly
accelerating growth remains intact. But the company experienced a temporary
setback, narrowly missing earnings, although revenues were up substantially.
Fastenal has recently expanded both its sales personnel and product lines, and
once these realize their potential, the company's earnings growth should step
up. Fastenal is well-capitalized, and was named one of the top three growth
companies by Financial World (January, 1997). Fastenal was the sole
non-technology related stock in the top five.
Although they struggled during the period, I am very enthusiastic about two
new positions, Boston Scientific and Sofamor Danek. Boston Scientific is the
leader in non-invasive medical equipment. The company is growing both internally
and through timely acquisitions, the most recent of which was Target
Therapeutics, a maker of cardiac catheters. Sofamor Danek dominates the market
for spinal implants. The FDA recently permitted the company to increase its
range of product applications, and so an array of new products, including a
minimally invasive camera, should help boost future revenues.
In addition to Paging Network, two direct marketers, Global DirectMail and
Viking Office Products, were sold at losses when increased competition in their
catalogue businesses caused them to miss earnings estimates.
Current Strategy and Outlook
In closing, I would like to stress that I do not take the Fund's recent
weak performance lightly. Yet even in difficult times, I remain committed to my
investment discipline - utilizing fundamental, intensive research to locate
dominant competitors with substantial earnings growth. Much of the mid-cap area
has already experienced a "bear market," and many companies appear highly
attractive on an absolute basis, and especially attractive in comparison to
larger companies.
Given their solid earnings trends, the vast majority of our holdings should
continue to meet or exceed expectations. As a result, I remain optimistic about
their prospects and about getting performance back to a level we can all be
proud of.
Thank you for your continued investment in Janus Enterprise Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 12
<PAGE>
JANUS ENTERPRISE FUND Portfolio Manager, James P. Goff
Performance Overview
GRAPHIC
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Enterprise Fund and the S&P 400 Index. Janus Enterprise Fund is
represented by a solid blue line. The S&P 400 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, September 1, 1992, through
April 30, 1997. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Enterprise Fund ($20,168) as compared to the
S&P 400 Index ($19,640). There is a legend in the upper left quadrant of the
graph which indicates Janus Enterprise Fund's one-year and since inception
(September 1, 1992) average annual total returns as -14.23% and 16.22%,
respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 89.6%
- --------------------------------------------------------------------------------
Cellular Telecommunications - 3.5%
322,975 CommNet Cellular, Inc.* $ 8,316,606
1,344,475 PriCellular Corp. - Class A*, # 9,999,533
- --------------------------------------------------------------------------------
18,316,139
- --------------------------------------------------------------------------------
Chemicals - Specialty - 1.4%
24,925 BetzDearborn, Inc. 1,595,200
162,100 Minerals Technologies, Inc. 5,693,763
- --------------------------------------------------------------------------------
7,288,963
- --------------------------------------------------------------------------------
Commercial Banks - 0.9%
8,975 First Empire State Corp. 2,889,950
27,475 Regions Financial Corp. 1,559,206
- --------------------------------------------------------------------------------
4,449,156
- --------------------------------------------------------------------------------
Commercial Services - 2.9%
268,350 Paychex, Inc. 12,562,134
180,300 Profit Recovery Group International, Inc. (The)* 2,569,275
- --------------------------------------------------------------------------------
15,131,409
- --------------------------------------------------------------------------------
Containers - Paper and Plastic - 3.1%
353,525 Sealed Air Corp.* 16,350,531
- --------------------------------------------------------------------------------
Diversified Financial Services - 0.6%
59,550 Associates First Capital Corp. - Class A 3,051,938
- --------------------------------------------------------------------------------
Diversified Operations - 0.3%
246,906 Rentokil Initial PLC** 1,620,544
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.6%
222,500 DepoTech Corp.* 3,254,063
- --------------------------------------------------------------------------------
Electric Products - Miscellaneous - 0.2%
17,550 Littelfuse, Inc.* 811,688
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 1.7%
244,775 Charles Schwab Corp. 8,964,884
- --------------------------------------------------------------------------------
Finance - Mortgage Loan Banker - 0.2%
33,625 Federal Agricultural Mortgage Corp. - Class C* $ 975,125
- --------------------------------------------------------------------------------
Finance - Other Services - 0.3%
81,300 Medallion Financial Corp. 1,443,075
- --------------------------------------------------------------------------------
Golf - 1.7%
425,025 Family Golf Centers, Inc.* 8,659,884
- --------------------------------------------------------------------------------
Hotels and Motels - 3.8%
166,650 Choice Hotels Holdings, Inc.* 2,333,100
296,900 HFS, Inc.* 17,591,325
- --------------------------------------------------------------------------------
19,924,425
- --------------------------------------------------------------------------------
Human Resources - 0.5%
61,400 Robert Half International, Inc.* 2,409,950
- --------------------------------------------------------------------------------
Independent Power Producer - 3.7%
783,325 Trigen Energy Corp. # 19,093,547
- --------------------------------------------------------------------------------
Life and Health Insurance - 3.5%
33,775 Nationwide Financial Services, Inc. - Class A* 895,038
250,200 Protective Life Corp. 11,071,350
113,575 UICI* 3,009,738
123,750 Western National Corp. 3,186,563
- --------------------------------------------------------------------------------
18,162,689
- --------------------------------------------------------------------------------
Medical - Drugs - 2.1%
213,700 Teva Pharmaceutical Industries, Ltd. (ADR) 10,845,275
- --------------------------------------------------------------------------------
Medical Instruments - 5.3%
252,725 Boston Scientific Corp.* 12,193,981
402,450 Sofamor Danek Group, Inc.* 15,695,550
- --------------------------------------------------------------------------------
27,889,531
- --------------------------------------------------------------------------------
Money Center Banks - 0.4%
233,024 Lloyds TSB Group PLC** 2,132,511
- --------------------------------------------------------------------------------
Multi-Line Insurance - 0.3%
27,400 Travelers Group, Inc. 1,517,275
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 13
<PAGE>
JANUS ENTERPRISE FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Pharmacy Services - 1.9%
401,475 Omnicare, Inc. $ 9,785,953
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 0.5%
35,275 Progressive Corp. 2,685,309
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 4.2%
1,242,650 Insignia Financial Group, Inc. - Class A*, # 21,746,375
- --------------------------------------------------------------------------------
Resorts and Theme Parks - 1.1%
194,550 Premier Parks, Inc.* 5,763,544
- --------------------------------------------------------------------------------
Retail - Building Products - 7.6%
1,021,950 Fastenal Co. 39,856,050
- --------------------------------------------------------------------------------
Retail - Catalog Shopping - 2.2%
522,850 Barnett, Inc.* 9,672,725
62,350 MSC Industrial Direct Co., Inc. - Class A* 1,917,263
- --------------------------------------------------------------------------------
11,589,988
- --------------------------------------------------------------------------------
Retail - Miscellaneous and Diversified - 4.7%
1,139,030 Petco Animal Supplies, Inc.*, # 24,346,766
- --------------------------------------------------------------------------------
Retail - Pubs - 7.1%
1,944,725 Wetherspoon (J.D.) PLC**, # 36,919,476
- --------------------------------------------------------------------------------
Retail - Restraurants - 11.8%
766,775 Papa John's International, Inc.* 19,744,456
3,725,517 PizzaExpress PLC+, **, # 41,771,115
- --------------------------------------------------------------------------------
61,515,571
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 0.4%
18,475 Affiliated Community Bancorp 461,875
26,575 FFVA Financial Corp. 564,719
22,550 First Defiance Financial Corp.* 287,513
29,050 Flushing Financial Corp. 537,425
6,049 IBS Financial Corp. 89,975
- --------------------------------------------------------------------------------
1,941,507
- --------------------------------------------------------------------------------
Schools - 3.3%
625,600 Apollo Group, Inc. - Class A* 16,813,000
15,550 Strayer Education, Inc. 400,413
- --------------------------------------------------------------------------------
17,213,413
- --------------------------------------------------------------------------------
Theaters - 1.4%
262,050 Regal Cinemas, Inc.* 7,140,863
- --------------------------------------------------------------------------------
Transportation - Railroad - 3.2%
516,600 Wisconsin Central Transportation Corp.* 16,918,650
- --------------------------------------------------------------------------------
Vitamins and Nutrition Products - 0.3%
140,050 Weider Nutrition International, Inc.* 1,540,550
- --------------------------------------------------------------------------------
Water Treatment Services - 2.9%
375,400 Culligan Water Technologies, Inc.* 15,344,475
- --------------------------------------------------------------------------------
X-Ray Equipment - 0%
5,600 Dentsply International, Inc. 277,200
- --------------------------------------------------------------------------------
Total Common Stock (cost $377,057,385) 466,878,292
- --------------------------------------------------------------------------------
Warrants - 2.1%
298,550 Littelfuse, Inc. - exp. 12/31/01*
(cost $4,522,249) 11,120,988
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 8.6%
$15,000,000 Avco Financial Services Co.
5.60%, 7/24/97 14,801,250
20,000,000 Coca-Cola Co.
5.50%, 5/5/97 19,987,778
10,200,000 General Electric Capital Corp.
5.62%, 5/1/97 10,200,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $44,991,778) 44,989,028
- --------------------------------------------------------------------------------
Total Investments (total cost $426,571,412) - 100.3% 522,988,308
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.3%) (1,460,543)
- --------------------------------------------------------------------------------
Net Assets - 100% $521,527,765
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Israel 2.1% $ 10,845,275
United Kingdom 15.8% 82,443,646
United States ++ 82.1% 429,699,387
- --------------------------------------------------------------------------------
Total 100.0% $522,988,308
- --------------------------------------------------------------------------------
++ Includes Short-Term Securities (73.5% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 5/27/97 9,000,000 $14,605,200 $ 513,000
British Pound 7/18/97 7,000,000 11,347,700 322,035
British Pound 7/24/97 18,000,000 29,176,200 463,480
British Pound 8/20/97 5,000,000 8,100,500 (128,975)
British Pound 9/11/97 4,597,000 7,445,301 (103,892)
- --------------------------------------------------------------------------------
$70,674,901 $1,065,648
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 14
<PAGE>
JANUS EQUITY INCOME FUND Portfolio Manager, Blaine P. Rollins
Performance
Janus Equity Income Fund returned 8.11% during the first half of our fiscal
year, October 31, 1996 to April 30, 1997. The Standard & Poor's 500 Index gained
14.71% for the same period. Both returns include reinvested dividends.
During the first half, investors continued to purchase a relatively narrow
selection of larger stocks, and neglected or sold companies whose shares were
not highly liquid. This accounts for much of the difference in returns between
the Fund and the Index, whose numbers were disproportionately driven by its
largest components. In the broader market, most stocks experienced a significant
decline, even those with strong fundamentals and earnings gains.
The market's narrow focus proved frustrating for those of us who invest in
companies based on their long-term profit potential - and not simply their
market capitalization.
- --------------------------------------------------------------------------------
Portfolio Asset Mix April 30, 1997 October 31, 1996
Equities 75.7% 88.0%
Fixed-Income Securities
U.S. Treasury Note 2.3% --
Investment-Grade Corp. Bonds 0.8% --
High-Yield Corporate Bonds 11.5% 5.1%
Preferred Stock 5.1% 3.3%
Number of Stocks 130 69
Top 10 Equities (% of Assets) 21.3% 32.4%
Cash & Cash Equivalents 4.6% 3.6%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Dionex Corp. 4.3% 5.1%
Nationwide Financial Services, Inc. 3.5% --
Robert Half International, Inc. 2.4% 2.1%
Associates First Capital Corp. 2.1% 0.6%
Philip Morris Companies, Inc. 1.8% --
Barclays PLC 1.6% 4.0%
UNUM Corp. 1.5% 4.1%
Unilever N.V. - N.Y. Shares 1.4% 1.6%
Cincinnati Bell, Inc. 1.4% 1.1%
E.I. du Pont de Nemours and Co. 1.3% --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Savings/Loan/Thrifts 9.7% 5.9%
Life and Health Insurance 9.0% 6.9%
Commercial Banks 6.3% 0.8%
Money Center Banks 5.5% 5.7%
Instruments - Scientific 4.9% 5.1%
- --------------------------------------------------------------------------------
Stock Highlights
Companies in the portfolio tend to share four major characteristics:
predictable earnings, shareholder-friendly management, the ability to generate
excellent cash flow, and a strong record of increasing profitability. During the
first half, I found attractive individual opportunities in financial and
technology stocks, and in several preferred and high-yield issues.
Among our equity holdings, Dionex and Associates First Capital continued to
post good numbers. Dionex dominates the market for ion chromatography equipment,
which uses color spectrum analysis to identify chemical components. The company
generates good cash flow and is repurchasing its own stock. Associates First
Capital is a conservative consumer lender that is ahead of our estimates in both
earnings and asset growth.
Other attractive holdings include Nationwide Financial Services and DuPont.
Nationwide, a newly public company that is a recent spin-off from Nationwide
Insurance, is one of the top three participants in the rapidly growing variable
annuity market. New senior management at DuPont is increasing returns by
lowering costs and fixing broken businesses. They are allocating capital to
high-return operations, restructuring divisions, and considering acquisitions
and divestitures.
Among our financial holdings, Barclays, the large U.K.-based financial
services company, was a standout. Barclays continues to gain greater share in
the British credit card market. In the U.S., small financial institutions are
also attractive. Many are selling shares to the public at very inexpensive
prices relative to their earnings potential and conservative capitalization. For
example, Roslyn Bancorp has an equity to asset ratio of nearly 30%. A typical
ratio is approximately 7%. Roslyn, as well as many other of these small banks
and thrifts, is distributing extra cash to shareholders as special dividends or
in the form of share buybacks. There is also a powerful wave of consolidation
underway. Over the last six months, acquisitions were initiated for two of our
holdings, Standard Financial and Gateway Bancorp.
During the first half, I took advantage of lower prices to build positions
in large technology companies that have established dominant positions in their
market sectors. These include chip-makers Intel and Texas Instruments,
Microsoft, the leader in PC operating software, and Cisco Systems, the leader in
computer networking equipment.
On the income side, Unocal and Royal Dutch Petroleum offer good dividends
plus capital appreciation. Both companies are focusing on the higher-margin
exploration and production side of the oil business rather than on lower-margin
refining and marketing operations. Smith's Food and Drug, a regional supermarket
chain, is an attractive high-yield security. Smith's recapitalized in mid-1996
and has prepaid $175 million of its debt, far ahead of schedule. Smith's is
well-managed and has a chance to benefit from industry consolidation as
better-capitalized supermarket chains attempt to prove their growth potential to
the stock market via acquisitions.
National Processing and Pegasus Communications were disappointments.
National lost a major national credit card processing account to First Data, and
Pegasus experienced slow subscriber growth in its satellite TV services.
Current Outlook
It appears that economic growth is not out-of-hand. Even if interest rates
should rise further, I do not believe it would appreciably affect our earnings
estimates, even on our financial holdings, which still should be able to achieve
bottom-line growth in the high teens. In the long run, buying high-quality
businesses at inexpensive prices remains the key to good performance, whatever
the market's short-term distortions.
Thank you for your continued investment in Janus Equity Income Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 15
<PAGE>
JANUS EQUITY INCOME FUND Portfolio Manager, Blaine P. Rollins
Performance Overview
GRAPHIC
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Equity Income Fund and the S&P 500 Index. Janus Equity Income Fund is
represented by a solid blue 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, June 28, 1996, through
April 30, 1997. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Equity Income Fund ($12,238) as compared to the
S&P 500 Index ($12,152). There is a legend in the upper left quadrant of the
graph which indicates Janus Equity Income Fund's inception (June 28, 1996)
average annual total return as 22.38%.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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 EQUITY INCOME FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 75.7%
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.3%
2,050 Thiokol Corp. $ 133,763
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 0.7%
10,450 Federal-Mogul Corp. 288,681
- --------------------------------------------------------------------------------
Casino Services - 0.2%
14,954 London Clubs International PLC** 93,418
- --------------------------------------------------------------------------------
Chemicals - Diversified - 2.8%
1,540 Akzo Nobel 198,418
6,584 BASF A.G. 253,982
10,810 BOC Group PLC** 165,844
5,525 E.I. du Pont de Nemours and Co. 586,341
- --------------------------------------------------------------------------------
1,204,585
- --------------------------------------------------------------------------------
Chemicals - Specialty - 0.3%
49,996 Victrex PLC** 132,102
- --------------------------------------------------------------------------------
Commercial Banks - 3.9%
4,900 Chester Bancorp, Inc. 72,275
8,000 Community Financial Corp. 114,000
3,500 First Savings Bancorp, Inc. 69,125
3,550 MBNA Corp. 117,150
4,700 Northern Trust Corp. 209,150
11,500 Southwest Bancorporation of Texas, Inc.* 238,625
9,150 Star Banc Corp. 388,875
4,300 State Street Corp. 338,625
11,125 Sterling Bancorp 178,000
- --------------------------------------------------------------------------------
1,725,825
- --------------------------------------------------------------------------------
Commercial Services - 1.1%
10,500 First USA Paymentech, Inc.* 253,312
112 SGS Societe Generale de Surveillance
Holding, S.A. 231,839
- --------------------------------------------------------------------------------
485,151
- --------------------------------------------------------------------------------
Computer Software - 1.2%
2,650 Microsoft Corp.* $ 321,975
4,050 Parametric Technology Co.* 183,262
- --------------------------------------------------------------------------------
505,237
- --------------------------------------------------------------------------------
Consumer Products - 0.3%
5,850 Gibson Greetings, Inc.* 119,925
- --------------------------------------------------------------------------------
Containers - Paper and Plastic - 0.9%
8,325 Sealed Air Corp.* 385,031
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 0.6%
4,200 Avon Products, Inc. 258,825
- --------------------------------------------------------------------------------
Diversified Financial Services - 2.1%
18,225 Associates First Capital Corp. - Class A 934,031
- --------------------------------------------------------------------------------
Diversified Operations - 2.6%
5,525 Minnesota Mining and Manufacturing Co. 480,675
3,175 Unilever N.V. - N.Y. Shares 623,094
- --------------------------------------------------------------------------------
1,103,769
- --------------------------------------------------------------------------------
Electric Products - 0.5%
4,900 UCAR International, Inc.* 205,800
- --------------------------------------------------------------------------------
Electronic Components - 2.1%
2,150 Intel Corp. 329,219
5,387 Philips Electronics N.V. 281,226
525 Philips Electronics N.V. - N.Y. Shares 28,087
3,100 Texas Instruments, Inc. 276,675
- --------------------------------------------------------------------------------
915,207
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 1.2%
14,500 Charles Schwab Corp. 531,062
- --------------------------------------------------------------------------------
Finance - Other Services - 1.0%
14,675 Equifax, Inc. 421,906
- --------------------------------------------------------------------------------
Food - Canned - 0.9%
7,325 Campbell Soup Co. 374,491
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 16
<PAGE>
JANUS EQUITY INCOME FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Food - Confectionary - 0.4%
2,725 Wrigley (Wm.) Jr., Co. $ 158,731
- --------------------------------------------------------------------------------
Gas - Distribution - 0.9%
15,897 Southern Union Co.* 379,541
- --------------------------------------------------------------------------------
Hotels and Motels - 0.2%
6,950 Extended Stay America, Inc.* 105,119
- --------------------------------------------------------------------------------
Human Resources - 2.6%
2,700 Manpower, Inc. 108,338
26,325 Robert Half International, Inc.* 1,033,256
- --------------------------------------------------------------------------------
1,141,594
- --------------------------------------------------------------------------------
Instruments - Controls - 0.2%
1,675 Parker Hannifin Corp. 83,331
- --------------------------------------------------------------------------------
Instruments - Scientific - 4.9%
38,900 Dionex Corp.* 1,901,238
3,400 Perkin-Elmer Corp. 246,925
- --------------------------------------------------------------------------------
2,148,163
- --------------------------------------------------------------------------------
Lasers - Systems and Components - 0.6%
17,000 Rofin-Sinar Technologies, Inc.* 252,875
- --------------------------------------------------------------------------------
Life and Health Insurance - 9.0%
8,275 AFLAC, Inc. 355,825
3,700 ALLIED Life Financial Corp. 58,275
2,425 Delphi Financial Group, Inc. - Class A* 86,087
4,350 Liberty Corp. 168,562
57,625 Nationwide Financial Services, Inc. - Class A* 1,527,063
7,100 Protective Life Corp. 314,175
3,725 Reinsurance Group of America 185,319
14,450 UICI* 382,925
8,625 UNUM Corp. 664,125
7,575 Western National Corp. 195,056
- --------------------------------------------------------------------------------
3,937,412
- --------------------------------------------------------------------------------
Machinery - Farm - 0.2%
2,100 Deere & Co. 96,600
- --------------------------------------------------------------------------------
Machinery - Pumps - 0.7%
13,850 Pfeiffer Vacuum Technology A.G. (ADR)* 322,012
- --------------------------------------------------------------------------------
Manufacturing - 0.7%
7,225 Roper Industries, Inc. 295,322
- --------------------------------------------------------------------------------
Medical - Drugs - 0.9%
5,114 Rhone-Poulenc - Class A** 172,004
1,350 SmithKline Beecham PLC (ADR)** 108,844
2,425 Teva Pharmaceutical Industries, Ltd. (ADR) 123,069
- --------------------------------------------------------------------------------
403,917
- --------------------------------------------------------------------------------
Medical - HMO - 0.6%
5,725 United Healthcare Corp. 278,378
- --------------------------------------------------------------------------------
Medical Labs and Testing Services - 0.2%
6,950 Covance, Inc.* 102,513
- --------------------------------------------------------------------------------
Metal - Aluminum - 0.3%
1,625 Reynolds Metals Co. 110,297
- --------------------------------------------------------------------------------
Money Center Banks - 5.5%
10,125 Bank of New York Co., Inc. 399,938
3,525 BankAmerica Corp. 411,984
38,756 Barclays PLC** 721,925
5,000 Citicorp 563,125
2,368 Deutsche Bank A.G. 124,986
18,200 Lloyds TSB Group PLC** 166,557
- --------------------------------------------------------------------------------
2,388,515
- --------------------------------------------------------------------------------
Multimedia - 0.5%
8,650 Meredith Corp. 203,275
- --------------------------------------------------------------------------------
Music/Clubs - 0.9%
23,000 Steinway Musical Instruments* $ 393,875
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.7%
1,675 Royal Dutch Petroleum Co. - N.Y. Shares 301,919
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 1.5%
5,675 Mercury General Corp. 351,850
3,875 Transatlantic Holdings, Inc. 320,656
- --------------------------------------------------------------------------------
672,506
- --------------------------------------------------------------------------------
Publishing - Books - 0.2%
690 Wolters Kluwer N.V. 81,782
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 0.4%
10,000 Insignia Financial Group, Inc. - Class A*,+ 175,000
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 1.9%
7,150 AMLI Residential Properties Trust 158,194
23,775 Innkeepers USA Trust 332,850
2,750 Mid-America Apartment Communities, Inc. 71,156
6,200 Redwood Trust, Inc. 291,400
- --------------------------------------------------------------------------------
853,600
- --------------------------------------------------------------------------------
Retail - Building Products - 0.7%
7,975 Fastenal Co. 311,025
- --------------------------------------------------------------------------------
Retail - Discount - 0.7%
11,150 Wal-Mart Stores, Inc. 314,988
- --------------------------------------------------------------------------------
Retail - Major Department Store - 0.4%
3,475 J.C. Penney Co., Inc. 165,931
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 9.7%
500 Advantage Bancorp, Inc. 18,750
5,425 BostonFed Bancorp, Inc. 82,731
2,500 Calumet Bancorp, Inc.* 88,125
3,000 Cameron Financial Corp. 49,500
8,000 Citizens First Financial Corp.* 120,000
500 Downey Financial Corp. 9,688
12,000 Empire Federal Bancorp, Inc. 159,000
3,000 FFLC Bancorp, Inc. 81,000
3,000 FFVA Financial Corp. 63,750
5,200 Financial Bancorp, Inc. 85,150
7,175 First Bell Bancorp, Inc. 104,934
7,050 First Defiance Financial Corp. 89,888
5,500 First Mutual Bancorp, Inc. 77,000
4,450 Flushing Financial Corp. 82,325
5,375 GA Financial, Inc. 84,656
4,000 Gateway Bancorp, Inc. 68,000
15,000 GS Financial Corp.* 210,937
8,875 HFNC Financial Corp. 159,750
3,400 Home Bancorp 68,425
25,675 Home Bancorp of Elgin, Inc. 385,125
4,000 Jacksonville Bancorp, Inc. 56,250
1,325 JSB Financial, Inc. 56,312
19,200 Klamath First Bancorp, Inc. 340,800
8,800 Little Falls Bancorp, Inc. 114,400
2,825 Long Island Bancorp, Inc. 96,050
2,625 Mechanics Savings Bank* 45,117
5,000 MFB Corp. 95,000
4,500 North Central Bancshares, Inc. 70,594
4,250 Ocean Financial Corp. 125,641
13,000 Park Bancorp, Inc.* 186,875
2,000 RCSB Financial, Inc. 59,500
6,900 Reliance Bancorp, Inc. 156,112
8,000 River Valley Bancorp* 114,000
21,550 Roslyn Bancorp, Inc.* 350,187
4,775 South Street Financial Corp. 76,997
4,050 Standard Financial, Inc. 92,644
5,000 Wayne Bancorp, Inc. 83,125
4,000 Wells Financial Corp.* 56,000
- --------------------------------------------------------------------------------
4,264,338
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 17
<PAGE>
JANUS EQUITY INCOME FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.3%
1,535 CLF - Dexia France** $ 142,023
- --------------------------------------------------------------------------------
Super-Regional Banks - 1.2%
2,000 Wells Fargo & Co. 533,500
- --------------------------------------------------------------------------------
Telephone - Local - 1.4%
10,925 Cincinnati Bell, Inc. 611,800
- --------------------------------------------------------------------------------
Television - 0.9%
15,550 Young Broadcasting Corp. - Class A* 412,075
- --------------------------------------------------------------------------------
Textile - Apparel - 0.3%
1,316 Wolford A.G. 135,622
- --------------------------------------------------------------------------------
Tobacco - 1.8%
19,750 Philip Morris Companies, Inc. 777,656
- --------------------------------------------------------------------------------
Transportation - Truck - 0.8%
19,425 Consolidated Freightways Corp.* 213,675
8,650 Roadway Express, Inc. 151,375
- --------------------------------------------------------------------------------
365,050
- --------------------------------------------------------------------------------
Travel Services - 0.8%
125 Kuoni Reisen A.G. - Class B 359,703
- --------------------------------------------------------------------------------
Total Common Stock (cost $30,484,462) 33,098,797
- --------------------------------------------------------------------------------
Corporate Bonds - 12.3%
- --------------------------------------------------------------------------------
Commercial Banks - 2.4%
$1,000,000 First Nationwide Escrow Corp., 10.625%
senior subordinated notes, due 10/1/03 1,065,000
- --------------------------------------------------------------------------------
Engineering - Research and Development - 2.5%
1,050,000 Intertek Finance PLC, 10.25% senior
subordinated notes, due 11/1/06 1,076,250
- --------------------------------------------------------------------------------
Finance - Leasing Company - 1.2%
500,000 Ryder Trucks, Inc., 10.00% senior
subordinated notes, due 12/1/06 503,750
- --------------------------------------------------------------------------------
Food - Retail - 1.8%
700,000 Smith's Food & Drug Centers, Inc., 11.25%
senior subordinated notes, due 5/15/07 782,250
- --------------------------------------------------------------------------------
Medical Labs and Testing Services - 0.7%
300,000 Dade International, Inc., 11.125% senior
subordinated notes, due 5/1/06 327,750
- --------------------------------------------------------------------------------
Recreational Vehicles - 0.3%
123,000 Outboard Marine Corp., 7.00% debentures,
due 7/1/02 113,775
- --------------------------------------------------------------------------------
Retail - Hypermarkets - 0.8%
372,000 Costco Companies, Inc., 5.75% debentures,
due 5/15/02 364,560
- --------------------------------------------------------------------------------
Shipbuilding - 0.9%
Newport News Shipbuilding, Inc.:
300,000 8.625% senior notes, due 12/1/06 300,750
100,000 9.25% senior subordinated notes, due 12/1/06 101,500
- --------------------------------------------------------------------------------
402,250
- --------------------------------------------------------------------------------
Television - 1.7%
800,000 Young Broadcasting Corp., 9.00% senior
subordinated notes, due 1/15/06 764,000
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $5,416,851) 5,399,585
- --------------------------------------------------------------------------------
U.S. Government Obligation - 2.3%
1,000,000 U.S. Treasury Note,
6.625%, 4/30/02 (cost $999,688) 1,002,188
- --------------------------------------------------------------------------------
Preferred Stock - 5.1%
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.9%
7,000 Unocal Corp., 6.25% 381,500
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 1.4%
13,208 Insignia Financial Group, Inc., 6.50% $ 597,662
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 1.3%
17,125 Walden Residential Properties, Inc.,
Convertible, Series B, 9.16% 432,406
5,350 Walden Residential Properties, Inc., 9.20% 133,750
- --------------------------------------------------------------------------------
566,156
- --------------------------------------------------------------------------------
Telecommunication Equipment - 0.6%
6,050 QUALCOMM, Inc., 5.75%+ 272,250
- --------------------------------------------------------------------------------
Telecommunication Services - 0.9%
7,690 Salomon, Inc. Exchangeable Notes,
(Cincinnati Bell, Inc.), 6.25% 433,524
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $2,451,537) 2,251,092
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 2.5%
AVCO Financial Service
$1,000,000 5.60%, 7/24/97 986,750
General Electric Capital Corp.
100,000 5.62%, 5/1/97 100,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $1,086,933) 1,086,750
- --------------------------------------------------------------------------------
U.S. Government Agency - 4.5%
Fannie Mae
2,000,000 8.91%, 6/23/97 (amortized cost $1,984,100) 1,984,100
- --------------------------------------------------------------------------------
Warrants - 0.0%
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 0.0%
5,350 Walden Residential Properties, Inc.
- exp. 1/1/02* (cost $2,675) 7,356
- --------------------------------------------------------------------------------
Total Investments (total cost $42,426,246) - 102.4% 44,829,868
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.4%) (1,047,039)
- --------------------------------------------------------------------------------
Net Assets - 100% $43,782,829
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Austria 0.3% $ 135,622
France 0.7% 314,027
Germany 1.5% 700,980
Israel 0.3% 123,069
Netherlands 3.4% 1,514,526
Switzerland 1.3% 591,542
United Kingdom 3.1% 1,388,689
United States++ 89.4% 40,061,413
- --------------------------------------------------------------------------------
Total 100.0% $44,829,868
================================================================================
++Includes Short-Term Securities (82.5% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/28/97 330,000 $ 534,831 ($1,136)
British Pound 8/20/97 200,000 324,020 (5,159)
British Pound 9/25/97 50,000 80,960 (1,015)
French Franc 10/10/97 750,000 130,120 1,586
- --------------------------------------------------------------------------------
$1,069,931 ($5,724)
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 18
<PAGE>
JANUS GROWTH AND INCOME FUND Portfolio Manager, Thomas F. Marsico
Performance
Janus Growth and Income Fund returned 11.53% for the first half of our
fiscal year, October 31, 1996 to April 30, 1997. The S&P 500 Index gained 14.71%
for the same period. Both returns include reinvested dividends.
The Fund posted solid returns, given the extremely narrow breadth of the
market, which has seen performance concentrated in a relatively few very large,
liquid stocks. The great majority of securities actually produced much weaker
results. The gap between the very large stock market favorites and the rest of
the equity universe is the widest it has been since World War II.
The powerful rally that occurred just as the half ended was broad-based,
however, so we may be witnessing a return to a more traditional, and more
rational, marketplace, where companies are judged on their individual merits,
not simply on their size, and where earnings and business fundamentals are the
long-term determinants of stock prices.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 95.8% 94.1%
Foreign 10.7% 7.5%
Europe 10.7% 7.5%
Top 10 Equities (% of Assets) 37.7% 32.8%
Number of Stocks 48 62
Fixed-Income Securities 1.4% 2.9%
Cash & Cash Equivalents 2.8% 3.0%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Lucent Technologies, Inc. 5.1% 4.5%
Citicorp 4.6% 2.9%
UAL Corp. 4.2% 2.8%
Eli Lilly and Co. 4.0% 2.5%
Federal Home Loan Mortgage Corp. 3.6% 1.9%
Wells Fargo and Co. 3.6% 4.1%
Fannie Mae 3.3% 2.0%
General Electric Co. 3.2% 2.8%
Volkswagen A.G. 3.1% --
Warner-Lambert Co. 3.0% --
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Medical - Drugs 10.9% 9.3%
Chemicals - Diversified 8.4% 6.2%
Automotive - Cars and Light Trucks 8.1% 0.8%
Finance - Mortgage Loan Banker 6.9% 3.9%
Money Center Banks 6.2% 5.5%
- --------------------------------------------------------------------------------
Stock Highlights
Financial stocks continued to produce good results. Citicorp, Wells Fargo,
Fannie Mae, Merrill Lynch, and Federal Home Loan Mortgage Corporation, are
increasing their margins and dominating their chosen markets. They are also
generating significant discretionary cash and using it to repurchase their own
shares.
Among our drug holdings, Warner-Lambert performed well during the period.
Warner-Lambert has recently brought two very exciting drugs to market and has
achieved sales well above expectations. Lipitor lowers cholesterol and has
already picked up a 13.5% market share in only a few months, an unprecedented
performance. Lipitor entered a hotly contested market, but has the advantage of
lowering cholesterol significantly more effectively than the competition and
being the only product to also reduce triglycerides. Warner-Lambert's other
drug, Rezulin, is an oral treatment for diabetes that eliminates the need for
injections in many patients and helps a significant number of others better
control their bodies' insulin.
Parametric Technology was increased during the quarter when the stock
dropped to where it was a year ago. Parametric is the largest and most rapidly
growing developer of computer-aided design and manufacturing software. The
company has a terrific long-term record of both earnings and revenue growth.
This past year revenues were up 41%, 72% of which was from existing customers.
Parametric sells mostly to large manufacturing/engineering firms who tend to
initially use Parametric's software on a specific project. As product acceptance
grows, however, the software is used on additional projects. Parametric's style
of market penetration affords it high earnings predictability. At current
prices, Parametric's P/E is historically very low, at approximately 20 times our
estimates.
The portfolio also contains three well-known German auto makers,
Volkswagen, BMW, and Porsche. Volkswagen and BMW are new to the portfolio and
have performed well. Volkswagen is experiencing good demand for its automobiles,
is streamlining its production, and cutting costs dramatically. Management has
vowed to triple pretax margins by the year 2000. BMW's U.S. sales have increased
by 25%, largely driven by the success of the company's new roadster, as well as
its luxury sedans. BMW hasn't increased prices in seven years, which gives it
more flexibility now to raise prices and improve profits. Porsche also has
dynamic new product offerings, and is rationalizing its operational costs. All
three companies are benefiting from the strong dollar.
DuPont, another new position, is in the midst of significant changes.
Senior management is increasing returns by lowering costs, allocating capital to
high-return segments of its business, and closely evaluating acquisitions and
divestitures.
I took losses during the first half in Trans World Airlines (TWA) and
Gateway 2000. TWA continued to have management problems, and we replaced Gateway
with other ideas we believe will better exploit PC demand.
Current Outlook
The business climate in the U.S. is still very positive. Companies are
increasingly dedicated to maintaining efficient operations and to building
shareholder value by generating a good return on capital. Corporate operations
are also extremely flexible, and this flexibility is reflected in the economy as
a whole, which is very responsive to changes in interest rates. Rate adjustments
such as the one we saw in March have held economic growth to a moderate pace and
kept inflation in check. As long as these conditions persist, I expect our
companies to generate strong earnings and good market returns for long-term
investors.
Thank you for your investment in Janus Growth and Income Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 19
<PAGE>
JANUS GROWTH AND INCOME FUND Portfolio Manager, Thomas F. Marsico
Performance Overview
GRAPHIC
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 blue 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, 1997. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Growth and Income Fund ($26,908) as compared to
the S&P 500 Index ($25,484). There is a legend in the upper left quadrant of the
graph which indicates Janus Growth and Income Fund's one-year, five-year and
since inception (May 15, 1991) average annual total returns as 21.00%, 16.21%
and 18.07%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 93.2%
- --------------------------------------------------------------------------------
Aerospace and Defense - 2.3%
300,000 Boeing Co. $29,587,500
- --------------------------------------------------------------------------------
Airlines - 4.2%
725,625 UAL Corp.* 53,968,359
- --------------------------------------------------------------------------------
Apparel Manufacturers - 1.6%
170,400 Gucci Group N.V. - N.Y. Shares* 11,821,500
231,250 St. John Knits, Inc. 8,874,219
- --------------------------------------------------------------------------------
20,695,719
- --------------------------------------------------------------------------------
Athletic Footwear - 2.8%
648,400 Nike, Inc. - Class B 36,472,500
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 5.9%
43,585 BMW A.G. ** 35,690,235
62,714 Volkswagen A.G. ** 39,873,829
- --------------------------------------------------------------------------------
75,564,064
- --------------------------------------------------------------------------------
Beverages - Non-Alcoholic - 3.0%
600,000 Coca-Cola Co. 38,175,000
- --------------------------------------------------------------------------------
Building and Construction - 0.7%
1,125,000 M.D.C. Holdings, Inc.# 9,281,250
- --------------------------------------------------------------------------------
Chemicals - Diversified - 8.4%
874,925 Cytec Industries, Inc.* 32,919,053
360,625 E.I. du Pont de Nemours and Co. 38,271,328
855,625 Monsanto Co. 36,577,969
- --------------------------------------------------------------------------------
107,768,350
- --------------------------------------------------------------------------------
Chemicals - Specialty - 1.1%
270,575 Praxair, Inc. 13,968,434
- --------------------------------------------------------------------------------
Commercial Services - 1.5%
575,796 First Data Corp. 19,864,962
- --------------------------------------------------------------------------------
Computer Software - 4.0%
148,000 Microsoft Corp.* $17,982,000
750,000 Parametric Technology Co.* 33,937,500
- --------------------------------------------------------------------------------
51,919,500
- --------------------------------------------------------------------------------
Computers - Micro - 2.6%
400,000 Dell Computer Corp.* 33,475,000
- --------------------------------------------------------------------------------
Diversified Operations - 5.9%
375,000 General Electric Co. 41,578,125
315,325 Textron, Inc. 35,119,322
- --------------------------------------------------------------------------------
76,697,447
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 3.0%
304,825 Applied Materials, Inc.* 16,727,272
200,000 KLA-Tencor Corp. * 8,900,000
149,250 Texas Instruments, Inc. 13,320,562
- --------------------------------------------------------------------------------
38,947,834
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 1.8%
290,250 Charles Schwab Corp. 10,630,406
131,850 Merrill Lynch & Co., Inc. 12,558,712
- --------------------------------------------------------------------------------
23,189,118
- --------------------------------------------------------------------------------
Finance - Mortgage Loan Banker - 6.9%
1,019,975 Fannie Mae 41,946,471
1,464,900 Federal Home Loan Mortgage Corp. 46,693,688
- --------------------------------------------------------------------------------
88,640,159
- --------------------------------------------------------------------------------
Food - Retail - 1.7%
502,500 Safeway, Inc.* 22,424,063
- --------------------------------------------------------------------------------
Food - Wholesale - 2.8%
604,775 Coca-Cola Enterprises, Inc. 36,513,291
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 20
<PAGE>
JANUS GROWTH AND INCOME FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical - Drugs - 10.7%
129,775 Bristol-Myers Squibb Co. $8,500,263
583,150 Eli Lilly & Co. 51,244,306
407,675 Pfizer, Inc. 39,136,800
400,000 Warner-Lambert Co. 39,200,000
- --------------------------------------------------------------------------------
138,081,369
- --------------------------------------------------------------------------------
Money Center Banks - 6.2%
530,000 Citicorp 59,691,250
377,108 Deutsche Bank A.G. ** 19,904,353
- --------------------------------------------------------------------------------
79,595,603
- --------------------------------------------------------------------------------
Multi-line Insurance - 1.2%
120,000 American International Group, Inc. 15,420,000
- --------------------------------------------------------------------------------
Oil and Gas Drilling - 1.8%
200,000 Diamond Offshore Drilling, Inc.* 12,875,000
175,000 Transocean Offshore, Inc. 10,609,375
- --------------------------------------------------------------------------------
23,484,375
- --------------------------------------------------------------------------------
Printers and Related Products - 1.5%
510,000 Electronics for Imaging, Inc.* 20,017,500
- --------------------------------------------------------------------------------
Retail - Diversified - 0.4%
175,500 Starbucks Corp.* 5,243,063
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 2.0%
800,000 Dime Community Bancorp, Inc.*,# 14,150,000
153,925 H.F. Ahmanson & Co. 5,868,391
289,200 HFNC Financial Corp. 5,205,600
- --------------------------------------------------------------------------------
25,223,991
- --------------------------------------------------------------------------------
Super-Regional Banks - 3.6%
173,683 Wells Fargo & Co. 46,329,940
- --------------------------------------------------------------------------------
Telecommunication Equipment - 5.1%
1,112,675 Lucent Technologies, Inc. 65,786,909
- --------------------------------------------------------------------------------
U. S. Government Agency - 0.5%
50,000 Student Loan Marketing Association 5,912,500
- --------------------------------------------------------------------------------
Total Common Stock (cost $992,864,316) 1,202,247,800
- --------------------------------------------------------------------------------
Corporate and Convertible Bonds - 1.4%
- --------------------------------------------------------------------------------
Building and Construction - 1.2%
$15,000,000 M.D.C. Holdings, Inc., 11.125%
notes, due 12/15/03 15,450,000
- --------------------------------------------------------------------------------
Medical - Drugs - 0.2%
5,000,000 Roche Holdings, Inc., zero coupon
notes, due 5/6/12 + 1,950,000
- --------------------------------------------------------------------------------
Total Corporate and Convertible Bonds (cost $15,826,169) 17,400,000
- --------------------------------------------------------------------------------
Preferred Stock - 2.6%
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 2.2%
22,059 Porsche A.G. ** 28,661,866
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 0.4%
178,000 Fidelity Federal Bank - Series A, 12.00% 5,162,000
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $22,129,063) 33,823,866
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 4.2%
General Electric Capital Corp.
$20,000,000 5.62%, 5/1/97 20,000,000
J.P. Morgan and Co.
34,100,000 5.60%, 5/1/97 34,100,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $54,100,000) 54,100,000
- --------------------------------------------------------------------------------
Total Investments (total cost $1,084,919,549) - 101.4% 1,307,571,666
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.4%) (17,887,489)
- --------------------------------------------------------------------------------
Net Assets - 100% $1,289,684,177
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Germany 9.5% $ 124,130,283
Netherlands 0.9% 11,821,500
Switzerland 0.1% 1,950,000
United States++ 89.5% 1,169,669,883
- --------------------------------------------------------------------------------
Total 100.0% $1,307,571,666
================================================================================
++Includes Short-Term Securities (85.3% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
German Deutschemark 5/12/97 94,000,000 $ 54,376,121 $ 1,236,111
German Deutschemark 6/17/97 102,000,000 59,164,733 859,948
- --------------------------------------------------------------------------------
$113,540,854 $ 2,096,059
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 21
<PAGE>
JANUS MERCURY FUND Portfolio Manager, Warren B. Lammert
Performance
For the first half of our fiscal year ended April 30, 1997, Janus Mercury
Fund was down 0.63%, compared to a gain of 14.71% for the S&P 500 Index. Both
returns include reinvested dividends.
Although a powerful market rebound began at the end of April, the first
half of fiscal 1997 proved to be a continuation of 1996. Investors remained
narrowly focused on a few large equity names, which outperformed the rest of the
market by an extreme margin. Size dominated investors' strategy to an almost
unprecedented degree, while business fundamentals and real earnings growth were
widely ignored.
To perform well this half, Janus Mercury Fund would have had to own only a
few popular stocks - and, far more often than not, these were not cheap. But
even large stocks came under pressure in mid-March, just before the Federal
Reserve Board raised interest rates.
The market's exclusivity caused price-earnings multiples outside the
blue-chip sector to become severely compressed, even though the vast majority of
our companies met or exceeded earnings expectations. Once stocks rebounded,
however, many of our weakest performers bounced back dramatically.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 76.9% 88.3%
Foreign 17.9% 14.6%
Europe 15.4% 11.9%
Top 10 Equity Holdings(% of Assets) 28.1% 34.6%
Number of Stocks 100 116
Cash & Cash Equivalents 23.1% 11.7%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Wells Fargo and Co. 3.8% 6.4%
Parametric Technology Co. 3.6% 1.1%
Rhone Poulenc Rorer, Inc. 3.0% --
HBO & Co. 3.0% 1.6%
Warner-Lambert Co. 2.8% --
Cincinnati Bell, Inc. 2.8% 2.1%
Volkswagen A.G 2.4% --
UNUM Corp. 2.4% 1.8%
Monsanto Co. 2.2% --
Nokia Corp. (ADR) - Class A 2.1% 0.2%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Medical - Drugs 9.2% 6.4%
Computer Software 6.0% 1.3%
Super-Regional Banks 5.2% 6.4%
Telecommunications Equipment 4.6% 0.6%
Life and Health Insurance 3.4% 3.0%
- --------------------------------------------------------------------------------
Review of the First Six Months
Depressed prices provided a good opportunity to increase exposure to
individual banking, financial services, medical companies, and selected
technology stocks. Technology has suffered from the strong U.S. dollar and fears
that it will have a short-term adverse effect on sales overseas. Networking
stocks also suffered from the perception that demand was slowing. The pessimism
was overdone, however, as evidenced by the group's recent rebound. Business
momentum in networking remains strong.
Smaller financial institutions are also especially attractive. Many are
overcapitalized and are distributing their extra cash to shareholders via
special dividends and share repurchases. A trend toward consolidation is also
taking place throughout the financial services industry.
Stock Highlights
Among our good performers this half were Volkswagen, which is streamlining
its product line and cutting costs, and drug maker Warner-Lambert, whose new
anti-cholesterol drug Lipitor has captured an unprecedented market share in just
a few months. Boston Scientific, the leader in non-invasive medical equipment,
purchased another of our holdings, Target Therapeutics. Target makes cardiac
catheters, and so is a natural fit in Boston Scientific's product line.
Technology holdings that were increased included Parametric Technology,
which develops design and manufacturing software, HBO & Co., a developer of
health care software, Aspen Technology, a leading supplier of chemical
engineering software, and Lucent Technologies, the leader in large networking
switches and other equipment. Finally, I purchased more shares of Nokia, a
Finnish telecommunication equipment maker. Nokia has a very strong position
within the international digital cellular market, and has straightened out
earlier production problems.
Among our outsourcing stocks, Cincinnati Bell, a local telephone service
provider, is continuing to benefit from very strong growth in its billing and
customer service. The company continues to buy back its own shares as well.
However, our credit card processors, which are a subset of outsourcing, did not
fare well. I trimmed First USA PaymenTech at a loss and sold National Processing
after it lost a large account to First Data.
Paging Network, which continued to experience delays in a new product
roll-out, was also sold at a loss, along with U.S. Satellite Broadcasting, where
direct TV subscriber growth came in below our estimates.
Current Outlook
The last six months has been a very frustrating period for those of us who
depend on earnings and business fundamentals not market capitalization - to
drive stock prices. The downside of the recent narrow market has been
disappointing performance. The upside is that the real value in equities - in
terms of earnings potential - is disproportionately situated in small- and
mid-cap names. I believe our companies are well-positioned to benefit once the
market resumes analyzing business fundamentals instead of liquidity.
Thank your for your investment in Janus Mercury Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 22
<PAGE>
JANUS MERCURY FUND Portfolio Manager, Warren B. Lammert
Performance Overview
GRAPHIC
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 blue 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, 1997. The
upper right quadrant reflects the ending value of the hypothetical investment in
Janus Mercury Fund ($20,815) as compared to the S&P 500 Index ($20,037). 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 0.14% and 20.11%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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 MERCURY FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 76.4%
- --------------------------------------------------------------------------------
Advertising Sales - 0.5%
437,084 Lamar Advertising Co.* $ 8,632,409
55,675 Universal Outdoor Holdings, Inc.* 1,517,144
- --------------------------------------------------------------------------------
10,149,553
- --------------------------------------------------------------------------------
Advertising Services - 0.5%
370,200 Outdoor Systems, Inc.* 10,273,050
- --------------------------------------------------------------------------------
Apparel Manufacturers - 1.0%
285,425 Gucci Group N.V. - N.Y. Shares* 19,801,359
- --------------------------------------------------------------------------------
Applications Software - 2.7%
390,550 HNC Software, Inc.* 10,349,575
238,175 JDA Software Group, Inc.* 6,013,919
639,375 Peoplesoft, Inc.* 26,534,063
212,750 Sapient Corp.* 7,632,406
- --------------------------------------------------------------------------------
50,529,963
- --------------------------------------------------------------------------------
Athletic Footwear - 0.8%
273,775 Nike, Inc. - Class B 15,399,844
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 2.4%
70,839 Volkswagen A.G.** 45,039,737
- --------------------------------------------------------------------------------
Building - Heavy Construction - 0.2%
256,750 Chicago Bridge & Iron Co.* 4,364,750
- --------------------------------------------------------------------------------
Cellular Telecommunications - 0.8%
334,225 Millicom International Cellular S.A.* 15,207,238
- --------------------------------------------------------------------------------
Chemicals - Diversified - 3.0%
113,997 Akzo Nobel** 14,687,718
993,725 Monsanto Co. 42,481,744
- --------------------------------------------------------------------------------
57,169,462
- --------------------------------------------------------------------------------
Commercial Banks - 0.6%
22,175 First Savings Bancorp, Inc. $ 437,956
130,775 State Street Corp. 10,298,531
- --------------------------------------------------------------------------------
10,736,487
- --------------------------------------------------------------------------------
Commercial Services - 1.7%
549,300 First USA Paymentech, Inc.* 13,251,863
378,475 IntelliQuest Information Group, Inc.*,# 6,150,219
132,275 META Group, Inc.* 2,248,675
598,375 TeleTech Holdings, Inc.* 10,621,156
- --------------------------------------------------------------------------------
32,271,913
- --------------------------------------------------------------------------------
Computer Services - 0.4%
151,675 CIBER, Inc.* 5,422,381
73,025 Intelligroup, Inc.* 721,122
90,175 Technology Solutions Co.* 2,378,366
- --------------------------------------------------------------------------------
8,521,869
- --------------------------------------------------------------------------------
Computer Software - 6.0%
708,750 Aspen Technologies, Inc.* 21,528,281
1,520,150 Parametric Technology Co.* 68,786,788
367,975 Synopsys, Inc.* 11,729,203
544,788 Wind River Systems* 12,530,113
- --------------------------------------------------------------------------------
114,574,385
- --------------------------------------------------------------------------------
Computers - Memory Devices - 0.8%
401,875 EMC Corp.* 14,618,203
- --------------------------------------------------------------------------------
Computers - Peripheral Equipment - 0.2%
75,400 U.S. Robotics Corp.* 3,817,125
- --------------------------------------------------------------------------------
Data Processing and Management - 1.4%
749,300 First Data Corp. 25,850,850
62,050 Indus Group, Inc.* 938,506
- --------------------------------------------------------------------------------
26,789,356
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 23
<PAGE>
JANUS MERCURY FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Diversified Financial Services - 1.4%
506,800 Associates First Capital Corp. - Class A $ 25,973,500
- --------------------------------------------------------------------------------
Diversified Operations - 2.1%
746,533 Metra Oy - Class B** 20,371,898
3,048,121 Rentokil Initial PLC** 20,006,089
- --------------------------------------------------------------------------------
40,377,987
- --------------------------------------------------------------------------------
Electric Products - Miscellaneous - 1.0%
463,100 UCAR International, Inc.* 19,450,200
- --------------------------------------------------------------------------------
Electronic Components - Miscellaneous - 1.2%
78,548 Philips Electronics N.V.** 4,100,561
336,025 Philips Electronics N.V. - N.Y. Shares** 17,977,338
- --------------------------------------------------------------------------------
22,077,899
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 2.3%
896,432 Analog Devices, Inc.* 23,979,556
112,225 ASM Lithography Holding N.V. (ADR)*,** 8,921,888
126,925 KLA - Tencor Corp.* 5,648,163
129,975 Micron Technology, Inc. 4,581,619
- --------------------------------------------------------------------------------
43,131,226
- --------------------------------------------------------------------------------
Electronic Safety Devices - 1.8%
657,600 Pittway Corp. - Class A 35,017,200
- --------------------------------------------------------------------------------
Fertilizers - 1.0%
240,109 Potash Corp. of Saskatchewan, Inc. 18,458,379
- --------------------------------------------------------------------------------
Finance - Auto Loans - 0.1%
137,125 AmeriCredit Corp.* 1,971,172
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.4%
226,325 Charles Schwab Corp. 8,289,153
- --------------------------------------------------------------------------------
Finance - Other Services - 0.6%
133,800 AMRESCO, Inc.* 1,948,463
332,225 Equifax, Inc. 9,551,469
- --------------------------------------------------------------------------------
11,499,932
- --------------------------------------------------------------------------------
Food - Miscellaneous and Diversified - 0.3%
109,691 Cultor Oy - Series l** 5,944,486
- --------------------------------------------------------------------------------
Life and Health Insurance - 3.4%
267,500 CompDent Corp.* 4,313,438
504,600 Nationwide Financial Services, Inc. - Class A* 13,371,900
582,375 UNUM Corp. 44,842,875
72,125 Western National Corp. 1,857,219
- --------------------------------------------------------------------------------
64,385,432
- --------------------------------------------------------------------------------
Medical - Biomedical and Genetic - 0.4%
190,575 Biochem Pharma, Inc.* 3,427,372
129,275 Protein Design Labs, Inc.* 3,248,034
- --------------------------------------------------------------------------------
6,675,406
- --------------------------------------------------------------------------------
Medical - Drugs - 9.2%
189,375 Glaxo Wellcome PLC (ADR)** 7,456,641
621,288 Rhone-Poulenc - Class A 20,896,340
511,500 Rhone-Poulenc Rorer, Inc. 36,891,938
590,330 SmithKline Beecham PLC** 9,497,276
254,125 SmithKline Beecham PLC (ADR)** 20,488,828
491,925 Teva Pharmaceutical Industries, Ltd. (ADR) 24,965,194
544,625 Warner-Lambert Co. 53,373,250
- --------------------------------------------------------------------------------
173,569,467
- --------------------------------------------------------------------------------
Medical Information Systems - 3.0%
1,074,225 HBO & Co. 57,471,038
- --------------------------------------------------------------------------------
Medical Instruments - 1.6%
257,533 Boston Scientific Corp.* 12,425,967
721,650 IDEXX Laboratories, Inc.* 9,381,450
212,675 Sofamor Danek Group, Inc.* 8,294,325
- --------------------------------------------------------------------------------
30,101,742
- --------------------------------------------------------------------------------
Money Center Banks - 2.1%
261,725 Bank of New York Co., Inc. $ 10,338,138
90,825 BankBoston Corp. 6,607,519
208,825 Citicorp 23,518,916
- --------------------------------------------------------------------------------
40,464,573
- --------------------------------------------------------------------------------
Multi-Line Insurance - 0.6%
214,275 Travelers Group, Inc. 11,865,478
- --------------------------------------------------------------------------------
Networking Products - 1.9%
483,725 Cisco Systems, Inc.* 25,032,769
742,000 Xylan Corp.* 11,037,250
- --------------------------------------------------------------------------------
36,070,019
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 0.6%
322,050 Triton Energy, Ltd.* 11,835,338
- --------------------------------------------------------------------------------
Pharmacy Services - 1.3%
974,950 Omnicare, Inc. 23,764,406
- --------------------------------------------------------------------------------
Real Estate Investment Trust - 0.3%
125,175 Redwood Trust, Inc. 5,883,225
- --------------------------------------------------------------------------------
Retail - Apparel and Shoes - 0.3%
338,100 Abercrombie & Fitch Co. - Class A*,# 4,944,713
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 1.7%
82,800 Ambanc Holding Co., Inc.* 1,128,150
64,595 Catskill Financial Corp. 928,553
149,800 First Defiance Financial Corp. 1,909,950
13,750 FSF Financial Corp. 228,594
312,875 Great Western Financial Corp. 13,140,750
129,275 Klamath First Bancorp, Inc. 2,294,631
64,700 North Central Bancshares, Inc. 1,014,981
64,700 Peekskill Financial Corp. 873,450
129,275 PFF Bancorp, Inc.* 1,842,169
81,675 Provident Financial Holdings, Inc.* 1,245,544
343,325 Roslyn Bancorp, Inc.* 5,579,031
76,575 TF Financial Corp. 1,311,347
- --------------------------------------------------------------------------------
31,497,150
- --------------------------------------------------------------------------------
Security Services - 0.4%
304,467 Securitas A.B. - Class B** 7,334,690
- --------------------------------------------------------------------------------
Super-Regional Banks - 5.2%
191,875 BankAmerica Corp. 22,425,391
66,425 Fleet Financial Group, Inc. 4,051,925
271,816 Wells Fargo & Co. 72,506,918
- --------------------------------------------------------------------------------
98,984,234
- --------------------------------------------------------------------------------
Telecommunications Equipment - 4.6%
547,650 Ascend Communications, Inc.* 25,054,988
362,100 Lucent Technologies, Inc. 21,409,163
626,150 Nokia Corp. (ADR) - Class A** 40,464,944
- --------------------------------------------------------------------------------
86,929,095
- --------------------------------------------------------------------------------
Telephone - Local - 2.8%
946,450 Cincinnati Bell, Inc. 53,001,200
- --------------------------------------------------------------------------------
Telephone - Long Distance - 1.0%
760,857 WorldCom, Inc.* 18,260,568
- --------------------------------------------------------------------------------
Television - 0.2%
149,350 Central European Media Enterprises, Ltd. (ADR)* 4,237,806
- --------------------------------------------------------------------------------
Transportation - Railroad - 0.6%
332,725 Wisconsin Central Transportation Corp.* 10,896,744
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,388,117,571) 1,449,627,752
- --------------------------------------------------------------------------------
Preferred Stock - 0.5%
- --------------------------------------------------------------------------------
Medical Products - 0.5%
328,600 Fresenius Medical Care A.G. (ADR)*,**
(cost $10,235,990) 9,652,625
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 24
<PAGE>
JANUS MERCURY FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 7.2%
$50,000,000 Deutsche Bank A.G.
5.45%, 5/2/97 $ 49,992,431
50,000,000 General Electric Capital Corp.
5.62%, 7/14/97 49,419,500
36,600,000 Household Finance Corp.
5.58%, 5/1/97 36,600,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $136,014,819) 136,011,931
- --------------------------------------------------------------------------------
Time Deposit - 4.8%
91,000,000 First Union Bank of North Carolina
5.6875%, 5/1/97 (cost $91,000,000) 91,000,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 10.5%
50,000,000 Fannie Mae
6.01%, 8/18/97 49,155,000
100,000,000 Federal Home Loan Bank System
5.28%, 5/1/97 100,000,000
50,000,000 Federal Home Loan Mortgage Association
5.72%, 7/25/97 49,345,000
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $198,522,444) 198,500,000
- --------------------------------------------------------------------------------
U.S. Government Obligations - 5.4%
U.S. Treasury Bills:
4,000,000 5.08%, 6/26/97 3,967,800
100,000,000 5.12%, 7/31/97 98,696,000
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (amortized cost $102,659,064) 102,663,800
- --------------------------------------------------------------------------------
Total Investments (total cost $1,926,549,888) - 104.8% 1,987,456,108
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (4.8%) (91,032,720)
- --------------------------------------------------------------------------------
Net Assets - 100% $1,896,423,388
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 1.1% $ 21,885,751
Finland 3.4% 66,781,328
France 1.0% 20,896,340
Germany 3.0% 58,930,168
Israel 1.3% 24,965,194
Italy 1.0% 19,801,359
Luxembourg 0.8% 15,207,238
Netherlands 2.3% 45,687,505
Sweden 0.4% 7,334,690
United Kingdom 2.9% 57,448,834
United States ++ 82.8% 1,648,517,701
- --------------------------------------------------------------------------------
Total 100.0% $1,987,456,108
================================================================================
++ Includes Short-Term Securities (56.4% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 5/27/97 3,500,000 $ 5,679,800 $ 199,500
British Pound 6/4/97 7,048,000 11,436,084 363,334
British Pound 7/15/97 4,000,000 6,484,800 253,320
British Pound 7/18/97 8,500,000 13,779,350 391,042
Dutch Guilder 9/25/97 25,000,000 12,987,688 336,408
Finnish Markka 5/27/97 55,000,000 10,618,581 1,654,096
Finnish Markka 7/15/97 16,000,000 3,101,076 355,768
Finnish Markka 7/28/97 28,892,000 5,605,526 515,401
Finnish Markka 9/11/97 11,057,000 2,153,052 31,910
Finnish Markka 10/22/97 6,000,000 1,172,241 8,164
German Deutschemark 8/11/97 10,500,000 6,115,674 188,613
German Deutschemark 8/13/97 16,000,000 9,320,208 281,803
German Deutschemark 10/23/97 2,000,000 1,171,508 22,649
Swedish Krona 5/27/97 20,000,000 2,554,735 481,778
Swedish Krona 7/18/97 26,000,000 3,328,852 448,845
- --------------------------------------------------------------------------------
$95,509,175 $5,532,631
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 25
<PAGE>
JANUS OLYMPUS FUND Portfolio Manager, Scott W. Schoelzel
Performance
For the first half of our fiscal year, October 31, 1996 to April 30, 1997,
Janus Olympus Fund returned 1.56%, versus a gain of 14.71% for the S&P 500
Index. All returns include reinvested dividends.
The last six months have been a tough period for those of us who invest in
small- to medium-capitalization issues and who believe earnings drive stock
prices. As the markets moved steadily higher, the desire for the predictability
and liquidity of the higher capitalization stocks has become more acute. Prices
of some large capitalization issues have been bid up to unprecedented levels,
while the valuations of some of the mid to smaller issues, even those whose
earnings exceeded expectations, have been bid down, almost indiscriminately. To
perform well you had to own the right larger-cap stocks - and these were often
expensive.
Although I adjusted the portfolio slightly toward larger companies during
the first half, my basic "barbell" strategy of both larger-cap and faster
growing (and thus higher P/E) mid-cap stocks remains unchanged. I am still
enthusiastic about financial services, telecommunications, technology, health
care, pharmaceuticals and biotechnology. I continue to believe these sectors
will benefit greatly from fundamental changes in economic and demographic
trends, both at home and abroad. Within these sectors, I try to identify
individual companies with outstanding fundamentals. Even though the short-term
risk may be higher with some of these companies than with the more mature
businesses in the portfolio, I remain convinced the long-term potential of this
barbell approach is much higher as well.
Portfolio Strategy
As I mentioned earlier, at one end of the barbell are large, stable
companies with seasoned management, such as Citicorp, Pfizer, BankAmerica,
Lucent Technologies, and Microsoft. All have numerous product lines and
powerful, secure global market franchises. On the other end of the barbell are
smaller, faster-growing companies such as Peoplesoft, Tellabs, and Dell
Computer, which have fewer product lines, higher P/Es, and are still building
market share. I also continue to run the portfolio in a fairly concentrated
manner, with between 30 and 45 positions.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 79.1% 85.0%
Foreign 19.2% 2.6%
Top 10 Equities (% of Assets) 50.4% 45.7%
Number of Stocks 176 51
Cash & Cash Equivalents 20.9% 13.7%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Microsoft Corp. 8.6% 3.2%
BankAmerica Corp. 6.3% --
Volkswagen A.G. 5.9% --
Citicorp 5.7% 3.5%
Warner-Lambert Co. 4.5% --
Pfizer, Inc. 4.3% --
Telecommunicacoes Brasilieras S.A. (ADR) 4.2% --
Eli Lilly and Co. 4.0% 1.2%
Dell Computer Co. 3.6% 1.4%
Nokia Corp. (ADR) - Class A 3.3% --
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Medical - Drugs 18.7% 2.7%
Computer Software 10.0% 4.9%
Super-Regional Banks 8.4% --
Money Center Banks 6.8% 3.4%
Automotive - Cars and Light Trucks 5.9% --
- --------------------------------------------------------------------------------
Stock Highlights
Drug stocks were among our better performers during the first half. These
included Eli Lilly, Warner-Lambert, Pfizer, and U.K.-based Schering-Plough.
Sales of Lilly's new drug Zyprexa, which treats schizophrenia, were well ahead
of expectations, and two other new products, Gemzar, for pancreatic cancer, and
Reopro, for acute cardiovascular disease, are also selling well. Warner-Lambert
has already achieved incredible market penetration with Lipitor, its new
anti-cholesterol drug, and with Rezulin, its new diabetes drug.
In the financial area, Citicorp continued to put up good numbers. The
breadth and depth of its foreign operations, plus the rationalization of its
lending policies and substantial stock repurchase program, make Citicorp a very
aggressive competitor and attractive investment.
We also own a number of exciting companies in the technology area. Dell
Computer is the most efficient competitor in the commercial PC market. Dell has
excellent cost and inventory controls. The company keeps only a twelve-day
supply of components on hand - the lowest in the industry - which has meant huge
cost savings as the price of PC components has steadily dropped. The global
opportunities for Dell are just now beginning to take shape, and the company is
also buying back its stock fairly aggressively. Lucent Technologies dominates
the large telecommunications switching equipment market, but its highly
competitive position in foreign markets is only now becoming better understood.
Microsoft remains, quite simply, a juggernaut in the software industry. The
company enjoys 91% gross margins and generates over $500 million in free cash
flow a month. It owns the global market in operating software for PCs and is
making aggressive inroads into the server market.
Among our weaker performers were two high-growth/higher-P/E stocks,
Peoplesoft, which markets human resources software, and Tellabs, a maker of
voice and data networking products. I also took losses in networking equipment
maker Cascade Communications, and in 3Com, a second tier player in the data
networking arena. IBM and HBO & Co., which develops health care management
systems, were sold at a profit when they reached my price targets.
Strategy Going Forward
Going forward, I intend to be both patient and opportunistic, and use
volatility to build positions. The portfolio contains some very exciting stocks,
many of which made strong recoveries in the rally that occurred as the period
ended. But more importantly, these companies have management teams and product
lines that should make them long-term industry leaders.
Thank you for your continued investment in Janus Olympus Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 26
<PAGE>
JANUS OLYMPUS FUND Portfolio Manager, Scott W. Schoelzel
Performance Overview
GRAPHIC
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 blue 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,
1997. The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Olympus Fund ($12,577) as compared to the S&P 500 Index
($13,378). There is a legend in the lower right quadrant of the graph which
indicates Janus Olympus Fund's one-year and since inception (December 29, 1995)
average annual total returns as 1.22% and 18.76%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 74.9%
- --------------------------------------------------------------------------------
Airlines - 2.1%
139,150 UAL Corp.* $ 10,349,281
- --------------------------------------------------------------------------------
Applications Software - 0.6%
75,275 Peoplesoft, Inc.* 3,123,913
- --------------------------------------------------------------------------------
Athletic Footwear - 1.1%
100,850 Nike, Inc. - Class B 5,672,812
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 5.9%
45,895 Volkswagen A.G.** 29,180,237
- --------------------------------------------------------------------------------
Computer Software - 10.0%
543,000 JBA Holdings PLC** 7,224,789
350,600 Microsoft Corp.* 42,597,900
- --------------------------------------------------------------------------------
49,822,689
- --------------------------------------------------------------------------------
Computers - Micro - 3.6%
215,000 Dell Computer Corp.* 17,992,788
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 2.1%
120,350 Gillette Co. 10,229,750
- --------------------------------------------------------------------------------
Data Processing and Management - 0.4%
55,000 i2 Technologies, Inc.* 2,090,000
- --------------------------------------------------------------------------------
Electronic Components - Miscellaneous - 1.4%
125,000 Philips Electronics N.V. - N.Y. Shares 6,687,500
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 1.5%
50,000 Intel Corp. 7,656,250
- --------------------------------------------------------------------------------
Life and Health Insurance - 0.9%
100,000 SunAmerica, Inc. 4,600,000
- --------------------------------------------------------------------------------
Medical - Drugs - 18.7%
80,000 American Home Products Corp. $ 5,300,000
75,000 Bristol-Myers Squibb Co. 4,912,500
224,300 Eli Lilly & Co. 19,710,362
75,000 Glaxo Wellcome PLC (ADR)** 2,953,125
220,500 Pfizer, Inc. 21,168,000
105,000 Schering-Plough Corp. 8,400,000
105,000 SmithKline Beecham PLC (ADR)** 8,465,625
225,950 Warner-Lambert Co. 22,143,100
- --------------------------------------------------------------------------------
93,052,712
- --------------------------------------------------------------------------------
Money Center Banks - 6.8%
250,700 Citicorp 28,235,088
574,392 Lloyds TSB Group PLC** 5,256,527
- --------------------------------------------------------------------------------
33,491,615
- --------------------------------------------------------------------------------
Multi-Line Insurance - 4.8%
80,000 American International Group, Inc. 10,280,000
240,000 Travelers Group, Inc. 13,290,000
- --------------------------------------------------------------------------------
23,570,000
- --------------------------------------------------------------------------------
Networking Products - 0.1%
9,475 Cisco Systems, Inc.* 490,331
- --------------------------------------------------------------------------------
Super-Regional Banks - 8.4%
266,975 BankAmerica Corp. 31,202,703
175,000 NationsBank Corp. 10,565,625
- --------------------------------------------------------------------------------
41,768,328
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 27
<PAGE>
JANUS OLYMPUS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Telecommunications Equipment - 6.1%
75,000 Advanced Fibre Communications* $ 2,990,625
100,000 Lucent Technologies, Inc. 5,912,500
250,000 Nokia Corp. (ADR) - Class A 16,156,250
136,200 Tellabs, Inc.* 5,430,975
- --------------------------------------------------------------------------------
30,490,350
- --------------------------------------------------------------------------------
Telephone - Integrated - 0.4%
25,000 Telefonica de Espana S.A. (ADR) 1,925,000
- --------------------------------------------------------------------------------
Total Common Stock (cost $318,878,026) 372,193,556
- --------------------------------------------------------------------------------
Preferred Stock - 4.2%
- --------------------------------------------------------------------------------
Telephone Integrated- 4.2%
180,000 Telecomunicacoes Brasileiras S.A. (ADR)
(cost $17,386,875) 20,655,000
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 13.3%
Bell Atlantic Corp.
$15,000,000 5.48%, 5/14/97 14,970,317
Coca-Cola Corp.
15,000,000 5.50%, 5/5/97 14,990,833
Household Finance Corp.
16,100,000 5.58%, 5/1/97 16,100,000
UBS Financial, Inc.
20,000,000 5.52%, 5/6/97 19,984,667
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $66,045,817) 66,045,817
- --------------------------------------------------------------------------------
U.S. Government Agencies - 12.0%
Fannie Mae:
20,000,000 5.345%, 5/20/97 19,943,581
15,000,000 5.72%, 7/10/97 14,837,550
Federal Home Loan Mortgage Corp.
25,000,000 8.61%, 5/30/97 24,888,500
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $59,678,532) 59,669,631
- --------------------------------------------------------------------------------
U.S. Government Obligation - 1.0%
5,000,000 U.S. Treasury Bills
5.26%, 6/26/97 (amortized cost $4,960,800) 4,960,800
- --------------------------------------------------------------------------------
Total Investments (total cost $466,950,050)- 105.4% 523,524,804
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets- (5.4%) (27,040,393)
- --------------------------------------------------------------------------------
Net Assets - 100% $496,484,411
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Brazil 3.9% $ 20,655,000
Finland 3.1% 16,156,250
Germany 5.6% 29,180,236
Netherlands 1.3% 6,687,500
Spain 0.4% 1,925,000
United Kingdom 4.0% 20,946,941
United States ++ 81.7% 427,973,877
- --------------------------------------------------------------------------------
Total 100.0% $523,524,804
================================================================================
++ Includes Short-Term Securities (56.7% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/18/97 2,250,000 $3,647,475 $4,838
British Pound 9/8/97 2,000,000 3,239,400 (25,800)
British Pound 9/12/97 2,000,000 3,239,200 (39,200)
German Deutschemark 5/12/97 26,300,000 15,213,744 171,172
German Deutschemark 6/17/97 12,000,000 6,960,557 125,360
German Deutschemark 10/9/97 7,000,000 4,095,723 54,147
- --------------------------------------------------------------------------------
$36,396,099 $290,517
================================================================================
See Notes to Schedule Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 28
<PAGE>
JANUS OVERSEAS FUND Portfolio Manager, Helen Young Hayes
Performance
Janus Overseas Fund gained 12.33% during the first half of our fiscal year,
October 31, 1996 to April 30, 1997. The Morgan Stanley International EAFE Index
(EAFE stands for Europe, Australasia, and the Far East) returned 1.57% for the
same period. Both returns include reinvested net dividends.(1)
For the 12 months, Janus Overseas Fund ranked in the top 2%, 6 out of 357,
of the international funds tracked by Lipper Analytical Services, Inc., a large
mutual fund rating company.(2)
Our research team continued to find many excellent individual investment
opportunities over the last six months, sometimes in out-of-the-way industries.
The Fund also owned a number of larger, better-known companies, especially in
Europe. Both helped us beat the EAFE Index.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 84.0% 73.6%
Foreign 83.0% 72.4%
Top 10 Equities (% of Assets) 18.5% 17.9%
Number of Stocks 223 190
Cash & Cash Equivalents 16.0% 26.4%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Volkswagen A.G 2.6% --
Rentokil Initial PLC 2.4% 3.7%
Deutsche Bank A.G 2.1% 0.8%
Philips Electronics N.V 2.0% 0.3%
Roche Holding A.G 1.9% 1.0%
Lloyds TSB Group PLC 1.9% 0.4%
BASF A.G 1.7% --
Nippon Telegraph
and Telephone Corp. 1.4% --
Koninklijke Ahrend N.V 1.3% --
Deutsche Pfandbrief
and Hypotheken Bank A.G. 1.2% --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Money Center Banks 7.7% 3.3%
Medical - Drugs 7.3% 5.3%
Diversified Operations 6.5% 9.9%
Computer Services 4.5% 5.6%
Automotive - Cars and Light Trucks 4.1% 1.0%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Countries April 30, 1997 October 31, 1996
United Kingdom 14.2% 15.0%
Germany 11.4% 7.2%
Switzerland 7.9% 4.6%
Netherlands 7.8% 4.4%
France 7.8% 2.7%
- --------------------------------------------------------------------------------
Stock Highlights
Volkswagen is new to the portfolio and has performed well. Sales are
growing at a good clip and the company is streamlining its product lines and
cutting costs dramatically. Volkswagen has vowed to triple its pretax margins
between now and the year 2000.
Two German banks, Deutsche Bank and DePfa Bank, and Ahrend NV , a
Netherlands-based distributor of office supplies throughout Europe, also
performed well. DePfa is the largest mortgage bank in Germany. Along with its
banking and other business services, DePfa offers software for property
managers, which allows mortgage and rent payments to be made electronically to
DePfa's bank, and speeds up the collection cycle. This contributes significantly
to DePfa's profitability and competitive edge. Deutsche Bank dominates the
commercial banking business in Germany and is working to enhance returns and
profitability by cutting costs and expanding into higher-return businesses.
Management at Ahrend is highly cost-conscious and has successfully boosted
the company's operating and profit margins. Ahrend is poised to gain market
share on the Continent and especially in Germany, where companies are
increasingly realizing the efficiency and cost benefits of outsourcing to a
single, preferred vendor.
Positions in Philips Electronics and Lloyds TSB were increased.
Netherlands-based Philips is embarking on its second round of restructuring, led
by an energetic new CEO. His immediate plans include refocusing the company
along key strategic lines, which will result in the spin-off of incongruous or
unprofitable divisions. Lloyd's is an extremely well-run British bank that is
enjoying the benefits of a merger between Lloyd's and TSB Group. As a result of
the merger, Lloyds TSB will be able to take approximately 10% out of the cost
base of the combined banks. Lloyds management is committed to increasing
shareholder value and is using discretionary cash to make strategic acquisitions
and to build the bank's higher-profit, retail financial services.
Finally, Capita Group is a somewhat unusual beneficiary of the huge
outsourcing wave in Britain. In their attempt to lower costs, municipalities and
other local authorities are outsourcing services and functions such as the
national driving test to private companies like Capita Group.
Among our disappointments during the first half were U.K.-based Stagecoach
Holdings and Dorling Kindersley. Stagecoach runs bus and train lines, both of
which were privatized under the Conservative government. The stock declined on
fears the Labor party would re-regulate the transportation industry.
Additionally, the company experienced some negative publicity due to short-term
glitches in its on-time performance. Dorling Kindersley specializes in
publishing children's educational books and interactive CD-ROMS. Unfortunately,
the number of major chain bookstores has increased substantially, while demand
has actually slowed slightly. Book retailers can return unsold books to printers
at cost, and the unexpected return of inventory hurt Dorling Kindersley's
results.
Current Outlook
With some exceptions, foreign markets continue to behave independently of
the U.S., and of each other. This diversity, in addition to the many attractive
individual companies we continue to identify worldwide, contributes to my
ongoing optimism about the potential of international investments. The broad
trend toward government deregulation, and a somewhat newer trend toward
profit-oriented, shareholder-friendly corporate management, should provide an
increasingly healthy climate for global equity markets for some time to come.
Thank you for your continued investment in Janus Overseas Fund.
- --------------------------------------------------------------------------------
(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) An International Fund is defined by Lipper 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 reinvested dividends and
capital gains for the stated period. Past performance is not predictive of
future results.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 29
<PAGE>
JANUS OVERSEAS FUND Portfolio Manager, Helen Young Hayes
Performance Overview
GRAPHIC
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Overseas Fund and the MSCI EAFE Index. Janus Overseas Fund is
represented by a solid blue line. The MSCI EAFE 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, 1997. The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Overseas Fund ($16,935) as compared to the MSCI EAFE Index
($11,658). 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 22.50% and 19.20%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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 OVERSEAS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 82.1%
- --------------------------------------------------------------------------------
Airlines - 0.2%
3,627 SwissAir A.G.*,** $ 3,175,453
- --------------------------------------------------------------------------------
Apparel Manufacturers - 0.7%
236,681 Adolfo Dominguez S.A.* 8,101,352
94,360 Gucci Group N.V. - N.Y. Shares* 6,546,225
- --------------------------------------------------------------------------------
14,647,577
- --------------------------------------------------------------------------------
Athletic Footwear - 0.7%
143,338 Adidas A.G.** 14,940,828
- --------------------------------------------------------------------------------
Audio and Video Products - 0.9%
244,500 Sony Corp.** 17,801,431
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 4.0%
11,584 BMW A.G.** 9,485,733
498,000 Honda Motor Co., Ltd.** 15,460,718
58,117 Mahindra & Mahindra, Ltd. (GDR)* 700,310
70,525 Tata Engineering & Locomotive Co., Ltd. 835,721
166,464 Tata Engineering & Locomotive Co., Ltd.
(GDR)*,+ 1,986,386
84,333 Volkswagen A.G.** 53,619,276
- --------------------------------------------------------------------------------
82,088,144
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 0.1%
612,553 LucasVarity PLC*,** 1,858,646
- --------------------------------------------------------------------------------
Brewery - 0.6%
836,800 Fomento Economico Mexicano S.A. de C.V. 3,924,862
133,784 Zaklady Piwowarskie w Zywcu S.A. 8,756,043
- --------------------------------------------------------------------------------
12,680,905
- --------------------------------------------------------------------------------
Broadcast Services and Programming - 0.6%
519,375 Grupo Televisa S.A. (GDR)* 12,010,547
- --------------------------------------------------------------------------------
Building - Heavy Construction - 0.4%
78,231 Cubiertas y Mzov S.A. 7,872,638
- --------------------------------------------------------------------------------
Building Products - Cement and Aggregates - 0.1%
5,519,000 HI Cement Corp.+ $ 1,841,758
- --------------------------------------------------------------------------------
Casino Services - 0.5%
1,537,385 London Clubs International PLC** 9,604,059
- --------------------------------------------------------------------------------
Cellular Telecommunications - 0.6%
106,000 Millicom International Cellular S.A.* 4,823,000
26,573 Telecel-Comunicacaoes Pessoais S.A.* 2,289,549
1,381,065 Telecom Italia Mobile S.p.A. 4,333,085
- --------------------------------------------------------------------------------
11,445,634
- --------------------------------------------------------------------------------
Chemicals - Diversified - 3.5%
163,388 Akzo Nobel**,+ 21,051,404
881,289 BASF A.G.** 33,996,124
1,051,638 BOC Group PLC** 16,133,897
- --------------------------------------------------------------------------------
71,181,425
- --------------------------------------------------------------------------------
Chemicals - Specialty - 1.3%
30,296 Ciba Specialty Chemicals A.G.*,** 2,611,304
31,732 Clariant A.G.** 18,176,419
11,756 SGL Carbon A.G.**, + 1,639,505
1,271,167 Victrex PLC** 3,358,731
- --------------------------------------------------------------------------------
25,785,959
- --------------------------------------------------------------------------------
Closed-End Funds - 0.3%
132,570 Polish National Investment Fund -
Privatisation Certificate* 5,763,434
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 30
<PAGE>
JANUS OVERSEAS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Commercial Banks - 1.4%
151,398 Banco Frances del Rio de la Plata S.A. (ADR) $ 4,598,714
57,117 BG Bank A/S 2,504,367
4,748,282 Credito Italiano S.p.A. 6,659,729
486,660 Equitable Banking Corp.* 1,900,870
48,580 Jyske Bank A/S 3,847,360
84,564 Nordbanken A.B.** 2,597,660
101,183 Sparbanken Sverige A.B. - Class A** 1,805,574
90,550 Sydbank A/S 4,231,301
- --------------------------------------------------------------------------------
28,145,575
- --------------------------------------------------------------------------------
Commercial Services - 0.5%
995,580 BTG PLC*,** 10,257,968
- --------------------------------------------------------------------------------
Computer Services - 4.5%
354,728 Cap Gemini Sogeti S.A.** 21,485,321
3,738,455 Capita Group PLC** 14,467,451
342,473 CMG PLC** 6,399,041
231,306 Delphi Group PLC** 3,096,366
397,895 Enator A.B.*,** 8,013,187
275,804 Getronics N.V.** 8,352,948
143,354 Group Axime*,** 17,242,645
381,180 Misys PLC** 7,653,971
7,016 Sligos S.A.** 992,948
69,329 WM-Data A.B. - Class B** 5,036,972
- --------------------------------------------------------------------------------
92,740,850
- --------------------------------------------------------------------------------
Computer Software - 1.9%
208,532 Ark A.S.A. 1,757,096
417,142 JBA Holdings PLC** 5,550,208
401,662 Merkantildata A.S.A. 7,332,900
594 NTT Data Corp.** 17,364,586
139,380 SEMA Group PLC** 2,708,242
64,348 TT Tieto Oy - Class B** 4,884,570
- --------------------------------------------------------------------------------
39,597,602
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 0.1%
26,000 Dassault Systemes S.A. (ADR)* 1,602,250
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 0.4%
570,000 Shiseido Co., Ltd.** 8,174,122
- --------------------------------------------------------------------------------
Diamonds and Precious Stones - 0.1%
27,806 De Beers Centenary A.G.** 1,000,555
- --------------------------------------------------------------------------------
Diversified Financial Services - 0.2%
34,834 Compagnie Bancaire S.A.** 4,595,693
- --------------------------------------------------------------------------------
Diversified Operations - 6.5%
369,603 Amer Group, Ltd.*,** 6,321,493
24,421 Barco N.V. 4,163,601
173,925 C.G. Smith, Ltd.** 1,005,255
342,000 First Pacific Co., Ltd. 408,377
59,743 Grupo Carso S.A. de C.V. - Series Al 344,070
2,005,848 Hays PLC** 17,786,875
806,000 Hutchison Whampoa, Ltd. 5,982,441
157,467 Kinnevik A.B. - Class B** 4,084,451
590,623 Lagardere S.C.A.** 18,276,165
390,138 Metra Oy - Class B** 10,646,351
7,420,729 Rentokil Initial PLC** 48,705,167
88,539 South African Breweries, Ltd.**,+ 2,608,478
13,319 Sulzer A.G.** 9,175,000
327,713 TI Group PLC** 2,804,966
- --------------------------------------------------------------------------------
132,312,690
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.2%
138,525 Elan Corp. PLC (ADR)* 4,709,850
- --------------------------------------------------------------------------------
Electric - Generation - 0%
658,650 Beijing Datang Power Generation Co., Ltd.* 342,227
- --------------------------------------------------------------------------------
Electric - Integrated - 1.2%
42,600 Centrais Electricas de Santa Catarina S.A.
(GDR)*,+ $ 6,059,850
95,100,000 Companhia de Eletricidade do Estado da Bahia* 7,555,858
193,725 Companhia Energetica de Minas Gerais (ADR) 8,741,841
56,575 Mosenergo (ADR)+ 2,206,425
- --------------------------------------------------------------------------------
24,563,974
- --------------------------------------------------------------------------------
Electric Products - 0.9%
13,927 Le Carbone-Lorraine**,+ 3,304,946
274,468 Siemens A.G.** 14,867,251
- --------------------------------------------------------------------------------
18,172,197
- --------------------------------------------------------------------------------
Electronic Components - 3.6%
333,135 Electrocomponents PLC** 2,135,152
774,758 Philips Electronics N.V.** 40,445,873
370,500 Philips Electronics N.V. - N.Y. Shares** 19,821,750
365,076 Pricer A.B. - Class B** 11,540,235
- --------------------------------------------------------------------------------
73,943,010
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 0.5%
24,865 ASM Lithography Holding N.V.*,**,+ 1,857,114
3,000 Rohm Co.** 232,606
99,300 SGS-Thomson Microelectronics N.V. - N.Y. Shares* 7,782,638
- --------------------------------------------------------------------------------
9,872,358
- --------------------------------------------------------------------------------
Engineering - Research and Development Services - 0.2%
27,593 VA Technologie A.G. 4,286,043
- --------------------------------------------------------------------------------
Film Processing - 0.2%
1,003 Fotolabo S.A.** 328,788
24,671 Grand Optical Photoservice** 3,673,360
- --------------------------------------------------------------------------------
4,002,148
- --------------------------------------------------------------------------------
Finance - Consumer Loans - 0.6%
1,366,099 Provident Financial PLC** 12,656,970
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.3%
521,000 Nomura Securities Co., Ltd.** 5,829,485
- --------------------------------------------------------------------------------
Finance - Other Services - 0%
1,784 Grupo Financiero Inbursa S.A. de C.V. - Class B 6,147
- --------------------------------------------------------------------------------
Food - Catering - 0.5%
1,000,389 Compass Group PLC**,+ 10,992,359
- --------------------------------------------------------------------------------
Food - Dairy Products - 0.6%
51,792 Koninklijke Nutricia Verenidge Bedrijven N.V.** 7,858,765
3,144,620 Parmalat Finanziaria S.p.A. 4,564,807
- --------------------------------------------------------------------------------
12,423,572
- --------------------------------------------------------------------------------
Food - Diversified - 1.0%
17,337 Hero A.G.**,+ 8,942,439
146,176 Raision Tehtaat Oy** 12,107,306
- --------------------------------------------------------------------------------
21,049,745
- --------------------------------------------------------------------------------
Food - Retail - 0%
13,103 Pao De Acucar S.A.+ 255,509
- --------------------------------------------------------------------------------
Healthcare Safety Devices - 0.1%
711,845 London International Group PLC** 2,084,847
- --------------------------------------------------------------------------------
Home Furnishings - 0.4%
503,962 Ekornes A.S.A. 3,715,598
36,372 Hunter Douglas N.V.** 2,968,599
213,385 Pagnossin S.p.A. 747,026
- --------------------------------------------------------------------------------
7,431,223
- --------------------------------------------------------------------------------
Hotels and Motels - 0.2%
9,900 EIH, Ltd.+ 157,113
31,119 Indian Hotels Co., Ltd.*, + 727,251
64,691 Sol Melia S.A.* 2,214,308
- --------------------------------------------------------------------------------
3,098,672
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 31
<PAGE>
JANUS OVERSEAS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Human Resources - 0.2%
308,483 Michael Page Group PLC** $ 2,737,978
9,686 Randstad Holdings N.V.** 870,101
- --------------------------------------------------------------------------------
3,608,079
- --------------------------------------------------------------------------------
Investment Companies - 0.3%
215,005 Bure Investment A.B.** 2,713,085
13,432 FIH A/S - Class B 321,983
32,520 Incentive A.B. - Class B** 2,134,703
- --------------------------------------------------------------------------------
5,169,771
- --------------------------------------------------------------------------------
Lasers - Systems and Components - 0.3%
393,025 Rofin-Sinar Technologies, Inc.* 5,846,247
- --------------------------------------------------------------------------------
Machinery - Construction and Mining - 0.1%
90,269 Atlas Copco A.B. - Class A** 2,232,134
- --------------------------------------------------------------------------------
Machinery - Farm - 0.3%
226,675 New Holland N.V.* 5,015,184
- --------------------------------------------------------------------------------
Machinery - General Industrial - 0.6%
1,218,531 Powerscreen International PLC** 12,011,420
- --------------------------------------------------------------------------------
Machinery - Pumps - 0.2%
201,550 Pfeiffer Vacuum Technology A.G. (ADR)* 4,686,037
- --------------------------------------------------------------------------------
Manufacturing - 0.1%
8,199 Azkoyen S.A. 1,229,218
- --------------------------------------------------------------------------------
Medical - Biomedical and Genetic - 0.1%
- --------------------------------------------------------------------------------
2,063 Ares-Serono Group - Class B** 2,769,453
- --------------------------------------------------------------------------------
Medical - Drugs - 7.3%
153,150 Eisai Co., Ltd.** 2,654,873
824,649 Glaxo Wellcome PLC** 16,237,546
18,374 Novartis A.G.** 24,217,057
449,259 Orion-Yhtyma Oy - Class B** 16,835,483
726,992 Rhone-Poulenc - Class A** 24,451,578
187,925 Rhone-Poulenc Rorer, Inc. 13,554,090
4,595 Roche Holding A.G.** 38,826,058
348,613 SmithKline Beecham PLC** 5,608,513
14,650 SmithKline Beecham PLC (ADR)** 1,181,156
74,000 Takeda Chemical Industries** 1,708,454
71,500 Teva Pharmaceutical Industries, Ltd. (ADR) 3,628,625
- --------------------------------------------------------------------------------
148,903,433
- --------------------------------------------------------------------------------
Medical - Wholesale Drug Distributors - 0.4%
37,064 Gehe A.G.** 2,465,704
290,525 Grupo Casa Autrey S.A. de C.V. (ADR) 5,047,872
- --------------------------------------------------------------------------------
7,513,576
- --------------------------------------------------------------------------------
Medical Products - 1.7%
123,085 Biocompatibles International PLC*,** 2,440,550
741,650 Fresenius Medical Care A.G. (ADR)* 21,785,969
317,217 Medical Invest Svenska A.B. - Class B*,**,# 10,310,420
- --------------------------------------------------------------------------------
34,536,939
- --------------------------------------------------------------------------------
Metal Processors and Fabricators - 1.1%
1,126,152 Assa-Abloy A.B. - Class B** 22,033,582
- --------------------------------------------------------------------------------
Money Center Banks - 7.7%
343,963 Banque Nationale de Paris** 14,674,660
713,335 Barclays PLC** 13,287,611
109,926 Credit Suisse Group** 12,384,456
802,136 Deutsche Bank A.G.** 42,337,859
177,776 ING Groep N.V.*,** 6,981,066
4,210,212 Lloyds TSB Group PLC** 38,528,589
217,000 Mitsui Trust and Banking Co., Ltd.** 1,237,862
17,841 Schweizensche Bankgesellschaft - Class B** 16,891,251
98,467 Skandinaviska Enskilda Banken - Class A** 1,004,062
53,171 Societe Generale** 5,958,124
412,000 Sumitomo Trust & Banking Co., Ltd.** 3,408,593
21,858 Unidanmark A/S - Class A 1,081,092
- --------------------------------------------------------------------------------
157,775,225
- --------------------------------------------------------------------------------
Mortgage Banks - 1.2%
463,007 Deutsche Pfandbrief & Hypothekenbank A.G.** $ 25,186,892
- --------------------------------------------------------------------------------
Motorcycle and Motor Scooter Manufacturing - 0%
22,320 Bajaj Auto, Ltd. (GDR)+ 716,472
- --------------------------------------------------------------------------------
Multi-line Insurance - 1.8%
3,429 Baloise Holdings, Ltd. - Class R*,** 7,237,629
216,131 Pohjola Insurance Group - Class B** 6,163,752
47,256 Sampo Insurance Co., Ltd. - Class A** 4,277,323
250,021 Skandia Forsakrings A.B.**7,234,059
36,517 Zurich Versicherungsgesellschaft** 11,995,238
- --------------------------------------------------------------------------------
36,908,001
- --------------------------------------------------------------------------------
Office Automation and Equipment - 0.9%
645,000 Canon, Inc.** 15,297,846
23,492 Oce-Van Der Grinten N.V.** 2,842,279
- --------------------------------------------------------------------------------
18,140,125
- --------------------------------------------------------------------------------
Office Furnishings - 1.3%
448,248 Koninklijke Ahrend N.V.**,# 27,151,108
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 0.5%
110,044 Elf Aquitaine S.A.** 10,671,851
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.6%
50,075 Lukoil Oil Co. (ADR) 2,804,200
317,500 YPF S.A. (ADR) 8,770,938
- --------------------------------------------------------------------------------
11,575,138
- --------------------------------------------------------------------------------
Oil Refining and Marketing - 0.4%
347,300 Bharat Petroleum Corp., Ltd. 3,739,629
320,300 Hindustan Petroleum Corp., Ltd.* 3,740,041
- --------------------------------------------------------------------------------
7,479,670
- --------------------------------------------------------------------------------
Photo Equipment and Supplies - 0.1%
44,286 Leica Camera A.G.*,**,+ 1,355,434
- --------------------------------------------------------------------------------
Pipelines - 0%
30,250 Gazprom (ADR)*,+ 464,338
- --------------------------------------------------------------------------------
Publishing - Books - 0.2%
27,909 Wolters Kluwer N.V.** 3,307,923
- --------------------------------------------------------------------------------
Publishing - Newspapers - 0.1%
86,777 Pearson PLC** 997,599
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 1.7%
6,592 Diligentia A.B.*,** 69,739
1,284,000 Mitisubishi Estate Co., Ltd.** 16,187,747
832,000 Mitsui Fudosan Co., Ltd.** 9,505,948
128,971 NK Cityfastigheter A.B.*,**,+ 904,137
802,026 Tornet Fastighets A.B.** 8,689,346
- --------------------------------------------------------------------------------
35,356,917
- --------------------------------------------------------------------------------
Recreational Vehicles - 0%
21,000 Yamaha Motor Co., Ltd.** 186,983
- --------------------------------------------------------------------------------
Recycling - 0.5%
537,716 Tomra Systems A.S.A. 10,420,863
- --------------------------------------------------------------------------------
Retail - Apparel and Shoe - 0%
16,659 Cortefiel S.A. 538,288
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 0%
65,000 Isetan Co.** 717,043
- --------------------------------------------------------------------------------
Retail - Diversified - 0.3%
81,553 Eurobike A.G.** 2,166,376
61,500 Ryohin Keikaku Co., Ltd.** 4,312,898
- --------------------------------------------------------------------------------
6,479,274
- --------------------------------------------------------------------------------
Retail - Pubs - 0.2%
183,206 Wetherspoon (J.D.) PLC** 3,478,060
- --------------------------------------------------------------------------------
Retail - Regional Department Stores - 0.3%
1,282,434 Harvey Nichols PLC**,+ 6,450,720
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 32
<PAGE>
JANUS OVERSEAS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Retail - Restaurants - 0.1%
41,078 Tele Pizza S.A.* $ 1,884,118
- --------------------------------------------------------------------------------
Rubber - Tires - 0.6%
230,036 Compagnie Generale des
Etablissements Michelin - Class B** 12,852,965
- --------------------------------------------------------------------------------
Security Services - 0.5%
190,765 Prosegur Companhia de Seguridad S.A. 2,069,913
372,584 Securitas A.B. - Class B** 8,975,646
- --------------------------------------------------------------------------------
11,045,559
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.6%
75,774 CLF-Dexia France** 7,010,854
48,719 Credit Communal Holding/Dexia+ 4,841,892
- --------------------------------------------------------------------------------
11,852,746
- --------------------------------------------------------------------------------
Telecommunication Equipment - 2.1%
72,479 Alcatel Alsthom** 8,059,607
387,215 Nokia A.B - Class A** 23,923,644
115,725 Nokia Corp. (ADR) - Class A** 7,478,728
134,895 Tandberg A.S.A.* 1,506,033
343,534 Tandberg Television A.S.A.* 2,749,896
- --------------------------------------------------------------------------------
43,717,908
- --------------------------------------------------------------------------------
Telecommunication Services - 3.3%
12,045,601 Freepages Group PLC*,** 7,818,077
187,914 SK Telecom Co., Ltd. (ADR) 1,785,179
1,153,089 Stet Societa' Finanziaria Telefonica S.p.A. 5,473,531
1,910,564 Telecom Italia S.p.A. 5,059,123
720,524 Telefonaktiebolaget L.M. Ericsson - Class B** 22,776,125
204,925 Telefonaktiebolaget L.M. Ericsson
(ADR) - Class B** 6,890,603
1,061,970 Telefonica del Peru S.A. - Class B 2,564,064
510,225 Telefonica del Peru S.A. (ADR) - Class B 12,245,400
63,280 Telinfo S.A.* 3,357,098
- --------------------------------------------------------------------------------
67,969,200
- --------------------------------------------------------------------------------
Telephone - Integrated - 2.0%
55,700 Portugal Telecom S.A. (ADR) 2,060,900
4,075 Nippon Telegraph & Telephone Corp.** 28,737,881
63,075 Telecom Argentina Stet S.A. (ADR) 3,153,750
191,425 Telefonica de Argentina S.A. (ADR) 6,364,881
- --------------------------------------------------------------------------------
40,317,412
- --------------------------------------------------------------------------------
Television - 0.1%
95,550 CanWest Global Communications Corp. 1,277,981
32,790 Central European Media Enterprises, Ltd. (ADR)* 930,416
- --------------------------------------------------------------------------------
2,208,397
- --------------------------------------------------------------------------------
Textile - Apparel - 0.4%
82,044 Wolford A.G. 8,455,134
- --------------------------------------------------------------------------------
Tobacco - 0.2%
451,000 PT Hanjaya Mandala Sampoerna 1,814,207
209,793 Souza Cruz S.A. 1,696,435
232,564 Swedish Match A.B.** 758,861
- --------------------------------------------------------------------------------
4,269,503
- --------------------------------------------------------------------------------
Traffic Management Systems - 0.1%
6,252,000 Shenzhen Expressway Co. - Class H*,+ 2,058,034
- --------------------------------------------------------------------------------
Transportation Services - 0.7%
62,504 Koninklijke Nedlloyd Groep N.V.** 1,434,176
1,381,191 Stagecoach Holdings PLC** 13,323,461
- --------------------------------------------------------------------------------
14,757,637
- --------------------------------------------------------------------------------
Travel Services - 0.3%
2,436 Kuoni Reisen A.G. - Class B** 7,009,896
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,527,004,513) 1,676,157,585
- --------------------------------------------------------------------------------
Preferred Stock - 1.9%
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 0.1%
1,042 Porsche A.G.** $ 1,353,899
- --------------------------------------------------------------------------------
Brewery - 0.1%
3,090,000 Companhia Cervejaria Brahma 2,102,053
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.3%
25,853 Fresenius A.G.** 5,815,064
- --------------------------------------------------------------------------------
Electric - Integrated - 0.4%
475,000 Centrais Electricas de Santa Catarina S.A. 669,933
182,208,000 Companhia Energetica de Minas Gerais 8,307,421
36,000,000 Companhia Paranaense de Energia-Copel 560,205
- --------------------------------------------------------------------------------
9,537,559
- --------------------------------------------------------------------------------
Medical Products - 0.1%
18,516 Fresenius Medical Care A.G.*,** 1,331,229
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.3%
27,671,000 Petroleo Brasileiro S.A. 5,827,999
- --------------------------------------------------------------------------------
Telephone - Integrated - 0.6%
113,425 Telecomunicacoes Brasileiras S.A.(ADR) 13,015,519
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $29,947,004) 38,983,322
- --------------------------------------------------------------------------------
Rights - 0%
- --------------------------------------------------------------------------------
Medical Products - 0%
25,853 Fresenius A.G.*,** (cost $0) 100,030
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 9.6%
$26,800,000 CIT Holdings
5.62%, 5/1/97 26,800,000
50,000,000 Deutsche Bank A.G.
5.47%, 5/7/97 49,954,417
50,000,000 General Electric Capital Corp.
5.46%, 5/6/97 49,962,083
20,000,000 Household Finance Corp.
5.58%, 5/1/97 20,000,000
50,000,000 IBM Corp.
5.49%, 5/15/97 49,893,250
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $196,609,750) 196,609,750
- --------------------------------------------------------------------------------
U.S. Government Agencies - 8.5%
Fannie Mae:
50,000,000 5.40%, 5/16/97 49,887,500
50,000,000 8.91%, 6/17/97 49,646,194
50,000,000 5.72%, 7/10/97 49,458,500
25,000,000 5.72%, 7/17/97 24,702,500
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $173,706,917) 173,694,694
- --------------------------------------------------------------------------------
Total Investments (total cost $1,927,268,184) - 102.1% 2,085,545,381
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.1%) (43,551,182)
- --------------------------------------------------------------------------------
Net Assets - 100% $2,041,994,199
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 33
<PAGE>
JANUS OVERSEAS FUND April 30, 1997 (unaudited)
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 1.1% $ 22,888,283
Austria 0.6% 12,741,177
Belgium 0.6% 12,362,591
Brazil 2.6% 54,792,623
Canada 0.1% 1,277,981
Denmark 0.6% 11,986,103
Finland 4.4% 92,638,650
France 7.8% 162,635,605
Germany 11.4% 238,063,626
Hong Kong 0.4% 8,791,079
India 0.6% 12,602,923
Indonesia 0.1% 1,814,207
Ireland 0.2% 4,709,850
Israel 0.2% 3,628,625
Italy 1.3% 26,837,301
Japan 7.1% 148,819,076
Luxembourg 0.2% 4,823,000
Mexico 1.0% 21,333,498
Netherlands 7.8% 162,903,556
Norway 1.3% 27,482,386
Peru 0.7% 14,809,464
Philippines 0.2% 3,742,628
Poland 0.7% 14,519,477
Portugal 0.2% 4,350,449
Russia 0.3% 5,474,963
South Africa 0.2% 4,614,288
South Korea 0.1% 1,785,179
Spain 1.2% 23,909,835
Sweden 6.2% 129,804,581
Switzerland 7.9% 163,740,441
United Kingdom 14.2% 295,957,155
United States++ 18.7% 389,704,781
- --------------------------------------------------------------------------------
Total 100.0% $2,085,545,381
================================================================================
++Includes Short-Term Securities (0.9% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/24/97 22,000,000 $ 35,659,800 $ 385,000
British Pound 7/28/97 26,000,000 42,138,200 (89,466)
Dutch Guilder 7/21/97 60,000,000 31,014,163 2,467,980
Dutch Guilder 7/24/97 60,000,000 31,020,577 1,905,750
Dutch Guilder 8/11/97 15,000,000 7,765,985 285,113
Finnish Markka 5/12/97 3,751,000 723,293 111,654
Finnish Markka 7/18/97 1,700,000 329,566 35,084
Finnish Markka 7/28/97 850,000 164,914 15,163
French Franc 7/18/97 4,000,000 689,953 65,517
French Franc 8/4/97 130,000,000 22,449,015 1,289,641
French Franc 8/11/97 80,000,000 13,821,461 499,544
French Franc 9/11/97 2,220,000 384,376 3,770
German Deutschemark 7/17/97 7,000,000 4,069,294 389,588
German Deutschemark 7/21/97 10,000,000 5,814,968 455,686
German Deutschemark 7/23/97 2,800,000 1,628,475 115,747
German Deutschemark 7/24/97 32,323,000 18,800,093 1,189,862
German Deutschemark 8/11/97 10,000,000 5,824,451 270,880
German Deutschemark 9/11/97 800,000 467,071 4,154
Japanese Yen 6/17/97 770,000,000 6,062,949 878,365
Japanese Yen 7/18/97 910,000,000 7,165,648 861,521
Japanese Yen 8/12/97 1,500,000,000 11,811,944 522,568
Japanese Yen 9/11/97 150,000,000 1,181,247 83,039
Japanese Yen 11/4/97 2,000,000,000 15,743,779 413,920
South African Rand 11/3/97 11,000,000 2,355,259 (248,786)
Swedish Krona 7/18/97 84,500,000 10,818,770 1,458,746
Swedish Krona 7/23/97 25,000,000 3,201,557 354,631
Swedish Krona 7/28/97 21,000,000 2,689,894 299,771
Swiss Franc 5/12/97 1,671,000 1,136,580 207,402
Swiss Franc 7/18/97 8,500,000 5,827,106 472,597
Swiss Franc 7/21/97 6,000,000 4,114,662 262,025
Swiss Franc 7/23/97 4,000,000 2,743,861 135,494
Swiss Franc 7/24/97 13,000,000 8,918,159 337,804
Swiss Franc 8/4/97 18,000,000 12,364,336 516,729
Swiss Franc 8/11/97 15,000,000 10,312,113 272,884
- --------------------------------------------------------------------------------
$329,213,519 $16,229,377
================================================================================
See Notes to Schedule of Investments
JANUS OVERSEAS FUND APRIL 30, 1997 SEMIANNUAL REPORT 34
<PAGE>
JANUS SPECIAL SITUATIONS FUND Portfolio Manager, David C. Decker
Performance
Janus Special Situations Fund opened on December 31, 1996. As of April 30,
1997, the end of the first fiscal period, the Fund gained 8.30%. The S&P 500
Index gained 8.81% for the same period. Both returns include reinvested
dividends.
I would like to thank you for your initial investment and confidence in
Janus Special Situations Fund, and to take a moment to outline my investment
philosophy. My approach is to find unique investment opportunities - special
situations that have been overlooked or not yet recognized by Wall Street. These
opportunities often hinge on a projected change, such as corporate
restructuring, new management, or better capital deployment. The challenge is to
find these companies early, because it is before they are well recognized that
special situations offer the most favorable risk-reward relationship.
Risk-reward is a very important aspect of the special situations strategy.
I want to identify companies that have significant upside potential and limited
downside risk. Companies that do not have high expectations built into their
valuations are often good candidates. When investors are not expecting a lot,
positive performance tends to be rewarded substantially more than poor
performance is penalized.
I also look for three basic qualities in companies: a solid business, the
ability to generate exceptional discretionary cash, also known as free cash
flow, and a high-quality management team that is committed to investing cash at
a very high rate of return. This last point is pivotal and is, I believe, the
most important question to answer before making an investment, because how
management reinvests the company's free cash flow can distinguish good companies
from the rest. The great companies recognize that reinvesting cash at the
highest reasonable rate of return is their primary responsibility to
shareholders, whether this is accomplished through acquisitions, capital
spending for growth, or share repurchase. Tyco International, and Allied Signal,
two outstanding multi-industry companies, have senior management that is
committed to reinvesting cash at the highest rate of return they can find. These
are the types of companies that dominate the portfolio.
Portfolio Profile April 30, 1997
- ---------------------------------------------------
Equities 99.3%
Foreign 11.2%
Europe 10.3%
Top 10 Equities (% of Assets) 41.5%
Number of Stocks 59
Cash & Cash Equivalents 0.7%
- ---------------------------------------------------
Top 10 Equity Holdings April 30, 1997
World Color Press 6.8%
Young Broadcasting Crop 5.1%
Heritage Media Corp. 4.7%
Samsonite Corp. 4.7%
Tyco International, Ltd. 3.9%
Federal-Mogul Corp. 3.3%
Fruit of the Loom, Inc. - Class A 3.3%
Gibson Greetings, Inc. 3.3%
Philips Electronics N.V. - N.Y. Shares 3.2%
Westinghouse Electric Corp. 3.2%
- ---------------------------------------------------
- ---------------------------------------------------
Top 5 Industries April 30, 1997
Diversified Operations 9.2%
Printing - Commercial 6.8%
Publishing - Newspapers 6.5%
Savings/Loan/Thrifts 5.6%
Life and Health Insurance 5.4%
- ---------------------------------------------------
Stock Highlights
Two companies in particular, Federal-Mogul and Heritage Media, impacted the
Fund's performance during the period, and are also good examples of the special
situations approach. Federal-Mogul, an automotive parts manufacturer and
distributor had been mismanaged for the last eight years, and its share price
reflected investors' lack of confidence in the company's ability to improve its
operations. However, the selection of a new CEO late last year was followed by
an aggressive restructuring plan. Investors are now recognizing that efficiently
run, Federal-Mogul can be an excellent company.
World Color Press, the Fund's largest position, has done everything right
but has been totally neglected, partly because it is in the unglamorous printing
industry. The company has far better growth potential than its competition,
which is not reflected in its market valuation.
Heritage Media fell out of favor last year following News Corp.'s decision
to compete directly with a division of Heritage, thereby damaging the pricing
environment. However, the stock fell far more than was warranted by the ongoing
fundamentals. I took a position in the belief that all the bad news was
reflected in the stock price. Ironically, News Corp. subsequently purchased
Heritage at an 80% premium to the market.
There were also some disappointments during the period. Young Broadcasting
declined significantly due to disruptions in its advertising revenue at a
recently acquired television station, KCAL in Los Angeles. I believe the
resulting sales shortfall was an isolated event, and is not representative of
the quality of KCAL. Overall, I am still very enthusiastic about Young
Broadcasting's future. Since the period ended, the stock price has recouped most
of its lost ground. However, manufacturing conglomerate Raychem was sold at a
loss after gross margin pressure proved to be more than I had anticipated.
Current Outlook and Strategy
I do not try to forecast the market any more than I would try to forecast
the weather - neither of which I can control. What I can do, is find unique
investment opportunities whose prospects are dependent primarily on internal
business factors. By sticking to this strategy, I believe we will be rewarded
over time, irrespective of the short-term vacillations of the market.
Thank you for your investment in Janus Special Situations Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 35
<PAGE>
JANUS SPECIAL SITUATIONS FUND Portfolio Manager, David C. Decker
Performance Overview
GRAPHIC
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Special Situations Fund and the S&P 500 Index. Janus Special Situations
Fund is represented by a solid blue 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 31, 1996,
through April 30, 1997. The upper right quadrant reflects the ending value of
the hypothetical investment in Janus Special Situations Fund ($10,830) as
compared to the S&P 500 Index ($10,881). There is a legend in the lower center
of the graph which indicates Janus Special Situations Fund's since inception
(December 31, 1996) average annual total return as 8.30%.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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 SPECIAL SITUATIONS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 98.4%
- --------------------------------------------------------------------------------
Advertising Sales - 2.5%
48,275 Lamar Advertising Co.* $ 953,431
80,000 Universal Outdoor Holdings, Inc.* 2,180,000
- --------------------------------------------------------------------------------
3,133,431
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.6%
10,000 AlliedSignal, Inc. 722,500
- --------------------------------------------------------------------------------
Apparel Manufacturers - 3.3%
115,000 Fruit of the Loom, Inc. - Class A* 4,140,000
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 1.3%
2,567 Volkswagen A.G. 1,632,110
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 3.3%
150,000 Federal-Mogul Corp. 4,143,750
- --------------------------------------------------------------------------------
Building and Construction Products - 0.5%
60,000 Schuller Corp.* 585,000
- --------------------------------------------------------------------------------
Chemicals - Diversified - 1.5%
50,000 Cytec Industries, Inc.* 1,881,250
- --------------------------------------------------------------------------------
Chemicals - Specialty - 0.6%
20,000 Goodrich (B.F.) Co. 797,500
- --------------------------------------------------------------------------------
Commercial Banks - 1.6%
25,000 State Street Corp. 1,968,750
- --------------------------------------------------------------------------------
Computer Services - 2.9%
110,000 Bell & Howell Co.* 2,598,750
276,423 Capita Group PLC** 1,069,730
- --------------------------------------------------------------------------------
3,668,480
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 1.9%
140,000 Wang Laboratories, Inc.* 2,432,500
- --------------------------------------------------------------------------------
Consumer Products - 3.3%
200,000 Gibson Greetings, Inc.* 4,100,000
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 1.9%
255,000 Playtex Products, Inc.* $ 2,358,750
- --------------------------------------------------------------------------------
Direct Marketing - 4.7%
320,000 Heritage Media Corp.* 5,840,000
- --------------------------------------------------------------------------------
Diversified Financial Services - 1.9%
45,000 Associates First Capital Corp. - Class A 2,306,250
- --------------------------------------------------------------------------------
Diversified Operations - 9.2%
80,000 Tyco International, Ltd. 4,880,000
12,150 Unilever N.V. - N.Y. Shares** 2,384,437
11,800 Viad Corp. 179,950
231,675 Westinghouse Electric Corp. 3,938,475
- --------------------------------------------------------------------------------
11,382,862
- --------------------------------------------------------------------------------
Electronic Components - 4.3%
25,000 Philips Electronics N.V.** 1,305,113
75,000 Philips Electronics N.V. - N.Y. Shares** 4,012,500
- --------------------------------------------------------------------------------
5,317,613
- --------------------------------------------------------------------------------
Human Resources - 1.0%
32,375 Robert Half International, Inc.* 1,270,719
- --------------------------------------------------------------------------------
Instruments - Scientific - 1.0%
25,000 Dionex Corp.* 1,221,875
- --------------------------------------------------------------------------------
Life and Health Insurance - 5.4%
57,000 ALLIED Life Financial Corp. 897,750
144,850 Nationwide Financial Services, Inc. - Class A* 3,838,525
25,000 UNUM Corp. 1,925,000
- --------------------------------------------------------------------------------
6,661,275
- --------------------------------------------------------------------------------
Machinery - Farm - 0.4%
20,000 AGCO Corp. 517,500
- --------------------------------------------------------------------------------
Machinery - Pumps - 0.9%
50,000 Pfeiffer Vacuum Technology A.G. (ADR)* 1,162,500
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 36
<PAGE>
JANUS SPECIAL SITUATIONS FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Manufacturing - 4.7%
140,000 Samsonite Corp.* $ 5,810,000
- --------------------------------------------------------------------------------
Medical Instruments - 1.9%
59,550 Sofamor Danek Group, Inc.* 2,322,450
- --------------------------------------------------------------------------------
Money Center Banks - 1.6%
6,525 BankAmerica Corp. 762,609
63,000 Barclays PLC** 1,173,529
- --------------------------------------------------------------------------------
1,936,138
- --------------------------------------------------------------------------------
Multi-Line Insurance - 2.4%
64,000 Horace Mann Educators Corp. 3,000,000
- --------------------------------------------------------------------------------
Office Automation and Equipment - 2.7%
55,000 Xerox Corp. 3,382,500
- --------------------------------------------------------------------------------
Printing - Commercial - 6.8%
350,000 World Color Press, Inc.* 8,400,000
- --------------------------------------------------------------------------------
Publishing - Newspapers - 6.5%
50,000 Central Newspapers, Inc. - Class A 2,693,750
72,025 Harte-Hanks Communications 1,962,681
340,000 Hollinger International, Inc. 3,400,000
- --------------------------------------------------------------------------------
8,056,431
- --------------------------------------------------------------------------------
Retail - Discount - 0.6%
25,000 Wal-Mart Stores, Inc. 706,250
- --------------------------------------------------------------------------------
Retail - Hypermarkets - 0.2%
9,000 Costco Companies, Inc.* 259,875
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 5.6%
59,725 BostonFed Bancorp, Inc. 910,806
50,250 Catskill Financial Corp. 722,344
82,350 Dime Community Bancorp, Inc.* 1,456,566
69,575 First Defiance Financial Corp. 887,081
28,250 GA Financial, Inc. 444,938
69,475 Home Bancorp of Elgin, Inc. 1,042,125
34,775 Little Falls Bancorp, Inc. 452,075
16,575 Mechanics Savings Bank* 284,883
43,550 Roslyn Bancorp, Inc.* 707,687
- --------------------------------------------------------------------------------
6,908,505
- --------------------------------------------------------------------------------
Soap and Cleaning Preparations - 0.6%
45,900 Dial Corp. 711,450
- --------------------------------------------------------------------------------
Super-Regional Banks - 1.1%
5,000 Wells Fargo & Co. 1,333,750
- --------------------------------------------------------------------------------
Telecommunication Equipment - 0.9%
25,000 Periphonics Corp.* 343,750
140,000 Shared Technologies Fairchild, Inc.* 787,500
- --------------------------------------------------------------------------------
1,131,250
- --------------------------------------------------------------------------------
Telephone - Local - 3.1%
70,000 Cincinnati Bell, Inc. 3,920,000
- --------------------------------------------------------------------------------
Television - 5.1%
240,000 Young Broadcasting Corp. - Class A* 6,360,000
- --------------------------------------------------------------------------------
Transportation - Truck - 0.6%
64,675 Consolidated Freightways Corp.* 711,425
- --------------------------------------------------------------------------------
Total Common Stock (cost $115,894,664) 122,194,639
- --------------------------------------------------------------------------------
Preferred Stock - 0.9%
10,000 Telecomunicacoes Brasileiras S.A. (ADR)
(cost $891,625) 1,147,500
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 0.9%
Household Finance Corp.
$1,100,000 5.58%, 5/1/97 (amortized cost $1,100,000) 1,100,000
- --------------------------------------------------------------------------------
Total Investments (cost $117,886,289) - 100.2% 124,442,139
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.2%) (200,097)
- --------------------------------------------------------------------------------
Net Assets - 100% $124,242,042
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Brazil 0.9% $ 1,147,500
Germany 2.3% 2,794,609
Netherlands 6.2% 7,702,050
United Kingdom 1.8% 2,243,258
United States++ 88.8% 110,554,722
- --------------------------------------------------------------------------------
Total 100.0% $124,442,139
================================================================================
++Includes Short-Term Securities (88.0% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 9/22/97 1,000,000 $1,619,300 ($26,900)
Dutch Guilder 9/22/97 7,100,000 3,687,737 20,777
- --------------------------------------------------------------------------------
$5,307,037 ($6,123)
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 37
<PAGE>
JANUS TWENTY FUND Portfolio Manager, Thomas F. Marsico
Performance
Janus Twenty Fund gained 9.85% during the first half of our fiscal year,
October 31, 1996 to April 30, 1997. The S&P 500 Index was up 14.71% for the
period. Both returns include reinvested dividends.
For the 12 months ended April 30, Janus Twenty Fund was ranked 13 out of
204 Capital Appreciation Funds (top 6%) tracked by Lipper Analytical Services, a
mutual fund rating company.(1)
Given the market's lack of breadth this last six months, and the volatility
late in the period, Janus Twenty Fund produced solid results. Investors had a
very narrow focus in the first half, with an elite group of larger
capitalization stocks continuing to outperform smaller stocks by an extreme
margin. According to one study, this has been the widest divergence in stock
performance in sixty years. To beat the Index, you had to own a few popular, and
often expensive, companies. Anything outside of this elite circle was frequently
pummeled by negative market sentiment.
As the first half came to an end, however, a powerful market rebound lifted
prices across the equity spectrum, so we may finally be returning to a market
powered by business fundamentals and earnings potential - the real drivers of
long-term stock performance.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 93.8% 97.4%
Foreign 2.2% 5.6%
Top 10 Equity Holdings (% of Assets) 63.7% 56.8%
Top 20 Equity Holdings (% of Assets) 91.8% 86.9%
Number of Stocks 23 28
Cash & Cash Equivalents 6.2% 2.6%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Citicorp 9.4% 6.4%
Monsanto Co. 7.9% 4.0%
Wells Fargo & Co. 7.5% 10.3%
UAL Corp. 7.3% 5.7%
Lucent Technologies, Inc. 7.2% 4.9%
Nike, Inc. - Class B 5.3% 4.6%
General Electric Co. 5.0% 3.0%
E.I. du Pont de Nemours and Co. 4.8% --
Fannie Mae 4.7% 2.0%
Eli Lilly & Co. 4.6% 2.9%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Medical - Drugs 13.2% 7.1%
Chemicals - Diversified 12.6% 4.0%
Money Center Banks 10.2% 12.7%
Super-Regional Banks 7.5% 10.3%
Transportation - Airlines 7.3% 5.7%
- --------------------------------------------------------------------------------
Stock Highlights
Technology stocks were under pressure for much of the period, although they
bounced back in the rally as the period ended. Our positions include Lucent
Technologies, the leading provider of large network switching equipment, Texas
Instruments, a large manufacturer of semiconductors, and Microsoft, the leading
developer and marketer of PC networking software.
Among our drug stocks, Monsanto is undergoing dramatic positive changes to
unlock earnings potential. The company continues to transform itself from a
slow-growth chemical company, whose profits were determined largely by the
general strength of the economy, into a high-margin drug and agri-business
company. Monsanto's gene-related research is transferable to both agriculture
and pharmaceuticals and can address specific threats to both plants and humans.
Products range from pest-resistant seeds to site-selective pain relief. Searle,
a division of Monsanto, also has a drug that could revolutionize the treatment
of arthritis.
Warner-Lambert has two very exciting drugs that have recently come to
market and achieved sales well above expectations. Lipitor lowers cholesterol
and has already picked up a 13.5% share of the market in only a few months, an
unprecedented performance. Lipitor is being marketed in a joint agreement with
Pfizer, but is going against competing products from Merck and Bristol-Myers
Squibb in a hotly contested marketplace. Lipitor has the advantage, however, of
lowering cholesterol significantly more effectively than the competition and
being the only product to also reduce triglycerides. Warner-Lambert's other
drug, Rezulin, is an oral treatment for diabetes that eliminates the need for
injections in many patients and helps a significant number of others better
control their bodies' insulin. Both drugs are potentially billion dollar revenue
generators and represent an enormous turnaround for Warner-Lambert, which has
the potential for 20%-plus sales growth into the year 2000.
New holding DuPont is also in the midst of significant changes. Senior
management is increasing returns by lowering costs, allocating capital to
high-return segments of its business, and closely evaluating acquisitions and
divestitures.
During the half, I sold athletic apparel maker Fila when it failed to meet
our earnings estimates, as well as Fluor, a large international engineering and
construction firm, when earnings projections had to be lowered.
Current Outlook
Despite the market's recent volatility, I remain very positive on the
business environment in the U.S. and on the potential of our companies. They are
lean and extremely flexible. Their productivity continues to grow, as does their
penetration of global markets. Even if interest rates move moderately higher,
these stocks should generate strong earnings and substantial returns.
Thank you for your investment in Janus Twenty 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." As of April 30,
1997, Janus Twenty Fund ranked 23/77 Capital Appreciation Funds for the
5-year period, and number one out of 56 funds for the 10-year period. 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 EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 38
<PAGE>
JANUS TWENTY FUND Portfolio Manager, Thomas F. Marsico
Performance Overview
GRAPHIC
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 blue 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, 1997.
The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Twenty Fund ($63,557) as compared to the S&P 500 Index
($62,280). 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 return as 23.43%, 15.26%, 15.93% and
16.66%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 93.8%
- --------------------------------------------------------------------------------
Aerospace and Defense - 3.3%
1,539,475 Boeing Co. $ 151,830,722
- --------------------------------------------------------------------------------
Apparel Manufacturers - 0.4%
299,993 Gucci Group N.V. - N.Y. Shares 20,812,014
- --------------------------------------------------------------------------------
Athletic Footwear - 5.3%
4,397,880 Nike, Inc. - Class B 247,380,750
- --------------------------------------------------------------------------------
Beverages - Non-Alcoholic - 2.0%
1,479,000 Coca-Cola Co. 94,101,375
- --------------------------------------------------------------------------------
Casino Hotels - 2.2%
5,007,425 Mirage Resorts, Inc.* 100,774,428
- --------------------------------------------------------------------------------
Chemicals - Diversified - 12.6%
2,086,950 E.I. du Pont de Nemours and Co. 221,477,569
8,573,050 Monsanto Co. 366,497,887
- --------------------------------------------------------------------------------
587,975,456
- --------------------------------------------------------------------------------
Computer Software - 1.0%
400,000 Microsoft Co.* 48,600,000
- --------------------------------------------------------------------------------
Data Processing and Management - 4.2%
5,674,546 First Data Corp. 195,771,837
- --------------------------------------------------------------------------------
Diversified Operations - 5.0%
2,078,400 General Electric Co. 230,442,600
- --------------------------------------------------------------------------------
Electronic Components - 1.7%
897,900 Texas Instruments, Inc. 80,137,575
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 3.3%
1,600,050 Merrill Lynch & Co., Inc. 152,404,763
- --------------------------------------------------------------------------------
Finance - Mortgage Loan Banker - 4.7%
5,352,975 Fannie Mae 220,141,097
- --------------------------------------------------------------------------------
Medical - Drugs - 13.2%
2,423,325 Eli Lilly & Co. $ 212,949,684
2,107,520 Pfizer, Inc. 202,321,920
2,022,450 Warner-Lambert Co. 198,200,100
- --------------------------------------------------------------------------------
613,471,704
- --------------------------------------------------------------------------------
Money Center Banks - 10.2%
400,000 Chase Manhattan Corp. 37,050,000
3,881,350 Citicorp 437,137,044
- --------------------------------------------------------------------------------
474,187,044
- --------------------------------------------------------------------------------
Office Automation and Equipment - 1.8%
2,711,125 Danka Business Systems PLC (ADR)# 82,858,758
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 0.9%
1,006,200 Great Western Financial Corp. 42,260,400
- --------------------------------------------------------------------------------
Super-Regional Banks - 7.5%
1,314,225 Wells Fargo & Co. 350,569,519
- --------------------------------------------------------------------------------
Telecommunication Equipment - 7.2%
5,702,375 Lucent Technologies, Inc. 337,152,922
- --------------------------------------------------------------------------------
Transportation - Airlines - 7.3%
4,574,100 UAL Corp.*, # 340,198,688
- --------------------------------------------------------------------------------
Total Common Stock (cost $3,731,577,997) 4,371,071,652
- --------------------------------------------------------------------------------
Corporate Bond - 0.3%
- --------------------------------------------------------------------------------
Building and Construction - 0.3%
$13,000,000 M.D.C. Holdings, Inc., 11.125%
notes, due 12/15/03 (cost $12,741,755) 13,390,000
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 39
<PAGE>
JANUS TWENTY FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Principal Amount Market Value
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 2.0%
CIT Holdings
$35,000,000 5.62%, 5/1/97 $ 35,000,000
Household Finance Corp.
7,700,000 5.58%, 5/1/97 7,700,000
UBS Financial, Inc.
50,000,000 5.50%, 5/5/97 49,969,444
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $92,669,445) 92,669,444
- --------------------------------------------------------------------------------
U.S. Government Agencies - 2.1%
Fannie Mae
50,000,000 5.345%, 5/20/97 49,858,951
Federal Home Loan Bank System
50,000,000 8.95%, 6/30/97 49,536,500
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $99,406,451) 99,395,451
- --------------------------------------------------------------------------------
Total Investments (total cost $3,936,395,648) - 98.2% 4,576,526,547
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 1.8% 83,218,598
- --------------------------------------------------------------------------------
Net Assets - 100% $4,659,745,145
- --------------------------------------------------------------------------------
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Netherlands 0.5% $ 20,812,014
United Kingdom 1.8% 82,858,758
United States++ 97.7% 4,472,855,775
- --------------------------------------------------------------------------------
Total 100.0% $4,576,526,547
================================================================================
++Includes Short-Term Securities (93.5% excluding Short-Term Securities)
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 40
<PAGE>
JANUS VENTURE FUND Portfolio Managers, William H. Bales, Jonathan D. Coleman,
James P. Craig, Thomas F. Marsico
Performance
Janus Venture Fund lost 10.07% during the first half of our fiscal year,
October 31, 1996 to April 30, 1997. The Russell 2000 Index gained 1.61% during
the same period. Both returns include reinvested dividends.
A new management team took over the Fund in January, and in the last four
months, we have made several substantial adjustments to the portfolio, which we
believe will improve performance. Our immediate strategy was to lower the
portfolio's concentration and to increase the cash position. In the table below,
you will see that cash exceeded 30% when the first half ended, and the top ten
equity holdings dropped significantly as a percentage of total assets. Our
objective was to broaden the portfolio to include a number of attractive new
companies, and to have cash available to take advantage of individual buying
opportunities in a very difficult market for small stocks.
Small stocks have been under pressure for almost a year now. At the end of
March, 56% of NASDAQ stocks were down more than 20% from their 1996-1997 peaks,
and the average decline was 33.3%. This was a challenging environment.
We intend to be patient putting cash to work. Our strategy is to build the
portfolio stock by stock, and to be opportunistic. We want to use volatility to
buy good companies at inexpensive prices.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 64.0% 97.8%
Foreign 3.5% 10.0%
Top 10 Equities (% of Assets) 16.0% 32.3%
Number of Stocks 172 177
Cash & Cash Equivalents 36.0% 2.2%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Equity Holdings April 30, 1997 October 31, 1996
Wisconsin Central Transportation 2.5% 6.9%
Fastenal Corp. 2.0% 4.6%
First Empire State Corp. 2.0% 1.1%
Protective Life Corp. 1.7% 1.0%
UICI 1.5% 0.6%
J.P. Foodservice, Inc. 1.5% 1.2%
Western National Corp. 1.3% --
Delta & Pine Land Corp. 1.2% --
Alaska Airgroup, Inc. 1.2% --
Nac Re Corp. 1.1% --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Savings/Loan/Thrifts 8.5% 0.5%
Life and Health Insurance 5.5% 2.5%
Commercial Banks 3.8% 1.1%
Property and Casualty Insurance 3.5% 0.4%
Transportation Railroad 2.5% 7.2%
- --------------------------------------------------------------------------------
Stock Highlights
During the first half, we increased the exposure to banking, insurance, and
technology stocks, and reduced restaurants, business services, wireless
communications, autos, and railroads. For example, Wisconsin Central had become
a very large position due to the stock's appreciation. Earnings potential,
though still good, is not as great as when we initiated the position five years
ago, so the holding was reduced. We also took profits in restaurant stocks Papa
John's International, J.D. Wetherspoon, and PizzaExpress. Credit card processor
National Processing, wireless companies Paging Network and CommNet Cellular,
auto parts distributor APS Holdings, and computer catalogue retailer Global
DirectMail were sold at losses.
We added quite a few new names to the portfolio. Some of the larger
positions include Western National Corporation, Delta & Pine Land Corp., Nac Re
Corp., and Alaska Air Group. Western National provides fixed-income annuities to
banks. Annuities are a fast-growing investment vehicle for a population that is
taking responsibility for financing its retirement. Delta & Pine has a new
variety of cotton seed that is significantly more pest-resistant than other
seeds. The new seed has just begun to penetrate a very large market. Nac Re is a
small, high-quality reinsurer. Reinsurers assume risk from insurance
underwriters. Nac Re's business lines are experiencing solid growth, and there
is also a trend toward consolidation in the industry: Nac Re's three closest
competitors have all recently been purchased. Alaska Air is doing an outstanding
job of utilizing its aircraft. Its planes fly full, and the company dominates
routes from the continental U.S.
In the area of technology, software developers Aspen Technology and Wind
River Systems have very exciting businesses. Aspen's products control and
optimize manufacturing processes at chemical and pharmaceutical plants. Aspen
has solid management and virtually no competition. Earnings are currently
growing at better than 30%. Wind River develops custom operating software for
microprocessors used in machines other than PCs. Wind River profits from its
development contracts and also receives royalties on sales of the final product,
which provides a recurring revenue stream.
Small financial institutions are another attractive area. Many small banks
and thrifts are selling shares to the public at very inexpensive prices relative
to their earnings potential and conservative capitalization. They are also
distributing excess cash to shareholders as special dividends or in the form of
share buybacks. There is a powerful wave of consolidation underway as well.
During the six months, an offer was made for Standard Financial, a new holding
in the portfolio.
Strategy Going Forward
Although we have made significant changes in the Fund's portfolio, we are
not altering the basic investment approach. We want to identify promising
individual businesses and purchase them at inexpensive prices. Intensive,
hands-on research is the key to this strategy. If we stick to our discipline, we
believe we can return performance to the level our shareholders expect.
Thank you for your continued investment in Janus Venture Fund.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 41
<PAGE>
JANUS VENTURE FUND Portfolio Managers, William H. Bales, Jonathan D. Coleman,
James P. Craig, Thomas F. Marsico
Performance Overview
GRAPHIC
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 blue 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, 1997. The upper right quadrant reflects the ending value of
the hypothetical investment in Janus Venture Fund ($53,522) as compared to the
Russell 2000 Index ($37,290). 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 return as -15.04%, 8.94%,
12.78% and 15.00%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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 VENTURE FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 64.0%
- --------------------------------------------------------------------------------
Advertising Sales - 0.5%
209,216 Lamar Advertising Co.* $ 4,132,016
55,375 Universal Outdoor Holdings, Inc.* 1,508,969
- --------------------------------------------------------------------------------
5,640,985
- --------------------------------------------------------------------------------
Advertising Services - 0.1%
21,500 Outdoor Systems, Inc.* 596,625
- --------------------------------------------------------------------------------
Agricultural Operations - 1.2%
581,867 Delta & Pine Land Co. 14,546,667
- --------------------------------------------------------------------------------
Applications Software - 1.0%
375,000 HNC Software, Inc.* 9,937,500
50,000 Sapient Corp.* 1,793,750
- --------------------------------------------------------------------------------
11,731,250
- --------------------------------------------------------------------------------
Breast Cancer Detection - 0.4%
270,000 Biopsys Medical, Inc.*,# 5,535,000
- --------------------------------------------------------------------------------
Building and Construction - 0.4%
600,000 M.D.C. Holdings, Inc. 4,950,000
- --------------------------------------------------------------------------------
Building and Construction Products - 0.1%
100,000 Dal-Tile International, Inc.* 1,300,000
- --------------------------------------------------------------------------------
Casino Hotels - 0.5%
70,000 Rio Hotel & Casino, Inc.* 971,250
165,500 Sun International Hotels, Ltd.* 5,027,063
- --------------------------------------------------------------------------------
5,998,313
- --------------------------------------------------------------------------------
Commercial Banks - 3.8%
50,000 Cape Cod Bank & Trust Co. 1,356,250
94,025 Chester Bancorp, Inc. 1,386,869
25,000 Chittenden Corp. 709,375
193,025 Community Financial Corp.# 2,750,606
74,900 First Empire State Corp. 24,117,800
45,675 First Savings Bancorp, Inc. 902,081
- --------------------------------------------------------------------------------
Commercial Banks - continued
75,000 Independent Bank Corp. $ 750,000
218,300 National Commerce Bancorporation 9,332,325
50,000 R&G Financial Corp. - Class B 1,162,500
42,500 Sandwich Co-Operative Bank 1,296,250
43,200 Vectra Banking Corp.* 826,200
- --------------------------------------------------------------------------------
44,590,256
- --------------------------------------------------------------------------------
Commercial Services - 1.5%
200,000 ABR Information Services, Inc.* 4,025,000
198,600 Central Parking Corp. 5,461,500
150,175 Cohr, Inc.* 3,341,394
100,000 META Group, Inc.* 1,700,000
135,475 Profit Recovery Group International, Inc. (The)* 1,930,519
100,000 TeleTech Holdings, Inc.* 1,775,000
- --------------------------------------------------------------------------------
18,233,413
- --------------------------------------------------------------------------------
Computer Services - 1.6%
80,000 Cambridge Technology Partners, Inc.* 2,130,000
200,950 CIBER, Inc.* 7,183,963
46,500 Claremont Technology Group, Inc.* 627,750
262,575 ECsoft Group PLC (ADR)* 2,494,463
225,637 Technology Solutions Co.* 5,951,176
- --------------------------------------------------------------------------------
18,387,352
- --------------------------------------------------------------------------------
Computer Software - 1.7%
272,350 Aspen Technologies, Inc.* 8,272,631
300,000 JBA Holdings PLC** 3,991,596
353,238 Wind River Systems* 8,124,463
- --------------------------------------------------------------------------------
20,388,690
- --------------------------------------------------------------------------------
Containers - Paper and Plastic - 0.9%
227,750 Sealed Air Corp.* 10,533,438
- --------------------------------------------------------------------------------
Data Processing and Management - 0.3%
250,000 Acxiom Corp.* 3,281,250
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 42
<PAGE>
JANUS VENTURE FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Distribution and Wholesale - 0.2%
270,000 ProSource, Inc.*, # $ 2,396,250
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.8%
236,900 Atrix Laboratories, Inc.* 2,635,513
470,000 DepoTech Corp.*, # 6,873,750
- --------------------------------------------------------------------------------
9,509,263
- --------------------------------------------------------------------------------
Educational Software - 0.9%
10,000 CBT Group PLC (ADR)* 486,250
400,000 Computer Learning Centers, Inc.*, # 10,650,000
- --------------------------------------------------------------------------------
11,136,250
- --------------------------------------------------------------------------------
Electric Products - 0.9%
220,000 Littelfuse, Inc.*, # 10,175,000
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 0.9%
147,385 ASM Lithography Holding N.V.*, + 11,007,875
- --------------------------------------------------------------------------------
Electronic Security Devices - 0.7%
151,762 Pittway Corp. - Class A 8,081,327
- --------------------------------------------------------------------------------
Energy Conversion and Technology Processes - 0.1%
87,125 Thermo Ecotek Corp.* 1,219,750
- --------------------------------------------------------------------------------
Extended Service Contracts - 0.2%
272,600 Warrantech Corp.* 2,691,925
- --------------------------------------------------------------------------------
Film Processing - 0.4%
15,541 Fotolabo S.A. 5,094,417
- --------------------------------------------------------------------------------
Filtration and Separations Products - 0.4%
269,900 Cuno, Inc.* 3,744,863
50,000 Memtec Ltd. (ADR) 1,156,250
- --------------------------------------------------------------------------------
4,901,113
- --------------------------------------------------------------------------------
Finance - Mortgage Loan Banker - 0.7%
297,200 First Financial Caribbean Corp. 8,098,700
- --------------------------------------------------------------------------------
Finance - Other Services - 0.2%
130,350 Medallion Financial Corp.# 2,313,713
- --------------------------------------------------------------------------------
Food - Wholesale - 1.5%
638,125 J.P. Foodservice, Inc.*, # 17,787,734
- --------------------------------------------------------------------------------
Health Care Cost - 0.3%
150,000 Envoy Corp.* 3,131,250
7,250 Pediatrix Medical Group, Inc.* 239,250
- --------------------------------------------------------------------------------
3,370,500
- --------------------------------------------------------------------------------
Hotels and Motels - 0.8%
403,223 Extended Stay America, Inc. 6,098,750
180,000 Suburban Lodges of America, Inc.* 2,902,500
- --------------------------------------------------------------------------------
9,001,250
- --------------------------------------------------------------------------------
Industrial Automation - Robot - 0.1%
25,000 PRI Automation, Inc.* 1,281,250
- --------------------------------------------------------------------------------
Instruments - Scientific - 0.8%
193,500 Dionex Corp.* 9,457,313
- --------------------------------------------------------------------------------
Lasers - Systems and Components - 0.1%
35,000 Cymer, Inc.* 1,439,375
- --------------------------------------------------------------------------------
Leisure and Recreation Products - 0%
10,100 Coleman Co., Inc.* 156,550
- --------------------------------------------------------------------------------
Life and Health Insurance - 5.5%
44,850 ALLIED Life Financial Corp. 706,388
75,900 Liberty Corp. 2,941,125
100,000 PennCorp Financial Group, Inc. 3,437,500
441,000 Protective Life Corp. 19,514,250
106,500 Reinsurance Group of America 5,298,375
678,950 UICI* 17,992,175
605,400 Western National Corp. 15,589,050
- --------------------------------------------------------------------------------
65,478,863
- --------------------------------------------------------------------------------
Linen Supply and Related Items - 0.2%
70,525 G & K Services, Inc. - Class A $ 2,045,225
- --------------------------------------------------------------------------------
Machinery - Pumps - 0.4%
179,725 Pfeiffer Vacuum Technology A.G. (ADR)*,** 4,178,606
- --------------------------------------------------------------------------------
Manufacturing - 0.3%
35,000 Roper Industries, Inc. 1,430,625
52,500 Samsonite Corp.* 2,178,750
- --------------------------------------------------------------------------------
3,609,375
- --------------------------------------------------------------------------------
Medical - Biomedical and Genetic - 1.7%
404,525 Immunex Corp.* 11,276,134
315,000 Protein Design Labs, Inc.* 7,914,375
35,000 QIAGEN N.V.* 1,216,250
- --------------------------------------------------------------------------------
20,406,759
- --------------------------------------------------------------------------------
Medical - Drugs - 0.5%
24,500 Algos Pharmaceuticals Corp.* 376,688
150,000 Guilford Pharmaceuticals, Inc.* 3,468,750
199,500 NaPro BioTherapeutics, Inc.* 1,546,125
- --------------------------------------------------------------------------------
5,391,563
- --------------------------------------------------------------------------------
Medical - Outpatient and Home Medical Care - 0.1%
50,000 OccuSystems, Inc. 1,031,250
- --------------------------------------------------------------------------------
Medical Instruments - 1.1%
184,600 MiniMed, Inc.* 4,568,850
214,425 Sofamor Danek Group, Inc.* 8,362,575
- --------------------------------------------------------------------------------
12,931,425
- --------------------------------------------------------------------------------
Medical Labs and Testing Service - 0.3%
250,000 Covance, Inc.* 3,687,500
- --------------------------------------------------------------------------------
Medical Products - 1.2%
62,359 Biocompatibles International PLC*,** 1,236,465
325,000 Henry Schein, Inc.* 9,018,750
157,600 Sterile Recoveries, Inc.* 2,758,000
165,000 Uroquest Medical Corp.* 907,500
- --------------------------------------------------------------------------------
13,920,715
- --------------------------------------------------------------------------------
Pharmacy Services - 0.2%
242,875 American Medserve Corp.* 2,641,266
- --------------------------------------------------------------------------------
Printers and Related Products - 1.6%
148,875 Electronics for Imaging, Inc.* 5,843,344
350,000 Encad, Inc.* 12,862,500
- --------------------------------------------------------------------------------
18,705,844
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 3.5%
225,900 Allied Group, Inc. 8,358,300
84,900 Executive Risk, Inc. 3,841,725
139,375 Foremost Corp. of America 7,404,297
200,000 Highlands Insurance Group, Inc.* 3,525,000
350,000 NAC Re Corp. 13,562,500
175,500 Philadelphia Consolidated Holding Corp.* 5,221,125
- --------------------------------------------------------------------------------
41,912,947
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 0.2%
152,300 Insignia Financial Group, Inc. - Class A* 2,665,250
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 0.5%
55,000 Golf Trust of America, Inc. 1,402,500
106,475 Mid-America Apartment Communities, Inc. 2,755,041
100,000 Walden Residential Properties, Inc. 2,200,000
- --------------------------------------------------------------------------------
6,357,541
- --------------------------------------------------------------------------------
Recycling - 0.3%
200,000 Philip Environmental, Inc.* 3,150,000
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 43
<PAGE>
JANUS VENTURE FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Resorts and Theme Parks - 1.0%
370,175 Premier Parks, Inc.*, # $ 10,966,434
80,000 Vistana, Inc.* 765,000
- --------------------------------------------------------------------------------
11,731,434
- --------------------------------------------------------------------------------
Retail - Apparel and Shoe - 0.5%
273,000 Stage Stores, Inc.* 5,664,750
- --------------------------------------------------------------------------------
Retail - Bedding - 0.4%
200,000 Linens `N Things, Inc.* 4,250,000
- --------------------------------------------------------------------------------
Retail - Building Products - 2.0%
608,008 Fastenal Co. 23,712,312
- --------------------------------------------------------------------------------
Retail - Catalog Shopping - 0.9%
360,000 MSC Industrial Direct Co., Inc. - Class A* 11,070,000
- --------------------------------------------------------------------------------
Retail - Diversified - 0.3%
113,810 Eurobike A.G.**, # 3,023,253
- --------------------------------------------------------------------------------
Retail - Home Furnishings - 0.2%
213,900 Rent-Way, Inc.* 2,219,213
- --------------------------------------------------------------------------------
Retail - Pubs - 0.7%
451,333 Wetherspoon (J.D.) PLC** 8,568,295
- --------------------------------------------------------------------------------
Retail - Restaurants - 1.4%
164,075 P.J. America, Inc.* 2,215,013
462,825 Papa John's International, Inc.*, # 11,917,744
220,803 PizzaExpress PLC** 2,475,680
- --------------------------------------------------------------------------------
16,608,437
- --------------------------------------------------------------------------------
Retirement and Aged Care - 1.1%
252,200 Karrington Health, Inc.* 2,774,200
412,775 Sunrise Assisted Living, Inc.* 9,958,197
- --------------------------------------------------------------------------------
12,732,397
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 8.5%
12,300 Advantage Bancorp, Inc. 461,250
89,850 Affiliated Community Bancorp, Inc. 2,246,250
150,000 Ambanc Holding Co., Inc.* 2,043,750
70,000 Bank Plus Corp.* 691,250
8,600 Calumet Bancorp, Inc.* 303,150
100,000 Cameron Financial Corp. 1,650,000
125,000 Catskill Financial Corp. 1,796,875
40,600 Citizens First Financial Corp.* 609,000
86,500 Community Federal Bancorp, Inc. 1,611,062
47,800 Dime Financial Corp. 902,225
50,550 Downey Financial Corp. 979,405
60,000 Empire Federal Bancorp, Inc.* 795,000
3,000 FCB Financial Corp. 62,250
129,400 FFVA Financial Corp. 2,749,750
200,000 First Bell Bancorp, Inc. 2,925,000
101,525 First Bergen Bancorp 1,383,277
110,000 First Colorado Bancorp, Inc. 1,760,000
177,350 First Defiance Financial Corp. 2,261,212
165,000 First Mutual Bancorp, Inc. 2,310,000
150,000 First Savings Bank of Washington Bancorp, Inc. 3,150,000
200,000 Flushing Financial Corp. 3,700,000
85,300 GA Financial, Inc. 1,343,475
43,550 HMN Financial, Inc.* 838,337
257,100 Home Bancorp of Elgin, Inc. 3,856,500
50,000 Home Port Bancorp, Inc. 950,000
76,676 IBS Financial Corp. 1,140,559
100,000 ISB Financial Corp. 2,250,000
191,500 ITLA Capital Corp.* 2,752,813
66,275 JSB Financial, Inc. 2,816,688
545,225 Klamath First Bancorp, Inc. 9,677,744
75,000 Lawrence Savings Bank* 721,875
64,325 Little Falls Bancorp, Inc. 836,225
46,650 Mechanics Savings Bank* 801,796
39,400 MFB Corp. 748,600
85,000 ML Bancorp, Inc. 1,381,250
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - continued
150,000 Norwich Financial Corp. $ 2,887,500
41,625 Park Bancorp, Inc.* 598,358
250,000 PFF Bancorp, Inc.* 3,562,500
75,000 Poughkeepsie Savings Bank, FSB 412,500
75,000 Provident Financial Holdings, Inc.* 1,143,750
66,200 PS Financial, Inc. 910,250
125,000 RCSB Financial, Inc. 3,718,750
43,325 River Valley Bancorp* 617,380
473,050 Roslyn Bancorp, Inc.* 7,687,062
30,000 Security Capital Corp. 2,670,000
145,000 South Street Financial Corp. 2,338,125
175,000 Standard Financial, Inc. 4,003,125
64,975 TF Financial Corp. 1,112,696
175,000 WesterFed Financial Corp. 3,259,375
25,000 Westwood Financial Corp. 425,000
50,000 Westwood Homestead Financial Corp. 637,500
- --------------------------------------------------------------------------------
100,490,439
- --------------------------------------------------------------------------------
Schools - 0.4%
504,500 Educational Medical, Inc.*, # 4,288,250
- --------------------------------------------------------------------------------
Therapeutics - 0.1%
50,000 Theragenics Corp.* 850,000
- --------------------------------------------------------------------------------
Transportation - Airlines - 1.4%
555,075 Alaska Air Group, Inc.* 13,807,491
125,000 Comair Holdings, Inc. 2,640,625
- --------------------------------------------------------------------------------
16,448,116
- --------------------------------------------------------------------------------
Transportation - Railroad - 2.5%
909,775 Wisconsin Central Transportation Corp.*, # 29,795,132
- --------------------------------------------------------------------------------
Water Treatment Services - 1.0%
275,000 Culligan Water Technologies, Inc.* # 11,240,625
- --------------------------------------------------------------------------------
Total Common Stock (cost $649,329,266) 755,639,576
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 13.9%
Credit Agricole U.S.A., Inc.
$50,000,000 5.25%, 5/5/97 49,970,833
Deutsche Bank A.G.
50,000,000 5.49%, 5/2/97 49,992,375
General Electric Capital Corp.
30,000,000 5.62%, 5/1/97 30,000,000
J.P. Morgan
34,700,000 5.60%, 5/1/97 34,700,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $164,663,208) 164,663,208
- --------------------------------------------------------------------------------
U.S. Government Agencies - 20.1%
Fannie Mae:
50,000,000 5.40%, 5/12/97 49,917,500
15,000,000 8.91%, 6/3/97 14,927,125
50,000,000 8.91%, 6/12/97 49,677,500
25,000,000 8.91%, 6/17/97 24,823,097
50,000,000 6.01%, 8/7/97 49,240,500
Federal Home Loan Discount Note
50,000,000 5.72%, 7/23/97 49,361,500
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $238,011,458) 237,947,222
- --------------------------------------------------------------------------------
Total Investments (total cost $1,052,003,932) - 98.0% 1,158,250,006
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 2.0% 23,987,772
- --------------------------------------------------------------------------------
Net Assets - 100% $1,182,237,778
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 44
<PAGE>
JANUS VENTURE FUND April 30, 1997 (unaudited)
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Australia 0.1% $ 1,156,250
Germany 0.6% 7,201,859
Ireland 0.1% 486,250
Netherlands 1.0% 11,007,874
Switzerland 0.4% 5,094,417
United Kingdom 1.4% 16,272,036
United States++ 96.4% 1,117,031,320
- --------------------------------------------------------------------------------
Total 100.0% $1,158,250,006
================================================================================
++Includes Short-Term Securities (61.7% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 5/27/97 1,700,000 $2,758,760 $ 96,900
British Pound 7/24/97 1,000,000 1,620,900 36,060
British Pound 9/11/97 1,925,000 3,117,730 (43,505)
- --------------------------------------------------------------------------------
$7,497,390 $ 89,455
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 45
<PAGE>
JANUS WORLDWIDE FUND Portfolio Manager, Helen Young Hayes
Performance
Janus Worldwide Fund gained 10.81% for the first half of our fiscal year
ended April 30, 1997, outperforming the Morgan Stanley Capital International
World Index, which returned 7.56%. Both returns include net dividends
reinvested.(1) For the 12 months ended April 30, 1997, Janus Worldwide Fund
ranked 12th out of 166 global funds (top 7%) tracked by Lipper Analytical
Services,(2) a large mutual fund rating company.
The ability to identify and invest in good individual businesses,
regardless of their geographic location, was the primary reason the Fund
outperformed the Morgan Stanley Index. The portfolio held large, stable,
high-quality companies whose products are familiar names internationally, along
with a variety of smaller and medium-sized stocks that were largely overlooked
by global investors.
I remain especially enthusiastic about opportunities in Europe, where a
wave of corporate restructuring, similar to that in the U.S., is on the rise in
a number of major industries, including pharmaceuticals, autos, and
manufacturing. The coming of the European Monetary Union (EMU) is also fueling
growth in software development and information technology (IT) as Europe
prepares for a single currency and standardized accounting. The updating of
computer systems to handle the year 2000 is also creating additional IT
opportunities.
In the U.S., I took advantage of the sell-off in stocks to build new
positions and add to existing holdings, especially in established, competitive
technology companies like Cisco Systems, the leader in computer networking
equipment, and Parametric Technology, which makes design and manufacturing
software.
- --------------------------------------------------------------------------------
Portfolio Profile April 30, 1997 October 31, 1996
Equities 92.3% 80.3%
Foreign 79.9% 71.0%
Europe 63.3% 56.3%
Number of Stocks 204 186
Top 10 Equities (% of Assets) 18.7% 22.1%
Cash & Cash Equivalents 7.7% 18.3%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 10 Holdings April 30, 1997 October 31, 1996
Rentokil Initial PLC 2.6% 4.5%
Volkswagen A.G 2.4% --
Roche Holding A.G 2.1% 1.3%
Hays PLC 1.9% 3.2%
Novartis A.G 1.8% --
Philips Electronics N.V
- N.Y. Shares 1.8% 0.8%
BASF A.G 1.6% --
Deutsche Bank A.G 1.6% 1.1%
Parametric Technology Co. 1.5% --
Nippon Telegraph
and Telephone Corp. 1.4% --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Industries April 30, 1997 October 31, 1996
Medical-Drugs 9.9% 6.6%
Diversified Operations 8.6% 12.1%
Money Center Banks 7.9% 5.3%
Chemicals-Diversified 4.3% 1.0%
Computer Services 4.3% 4.1%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Top 5 Countries April 30, 1997 October 31, 1996
United States 12.1% 10.5%
United Kingdom 12.1% 14.0%
Germany 11.4% 8.0%
Switzerland 8.8% 6.9%
France 8.5% 3.3%
- --------------------------------------------------------------------------------
Stock Highlights
Volkswagen is new to the portfolio and has performed well. The company is
experiencing good demand for its automobiles and is cutting costs dramatically.
Volkswagen has vowed to triple pretax margins between now and the year 2000.
Other good performers included Philips, Cap Gemini, and Telebras.
Netherlands-based Philips is embarking on its second round of restructuring, led
by an energetic new CEO. His immediate plans consist of refocusing the company
along key strategic lines, which will result in the spin-off of incongruous or
unprofitable divisions. French IT provider Cap Gemini has experienced tremendous
demand for its software as Europe approaches the onset of the EMU, as well as
for its year 2000 solutions. Among our emerging market holdings, Telebras
continues to stand out. A combination of economic growth and tremendous pent-up
demand for telephone service - just 8% of Brazil's population currently have
telephones - is driving revenues and profits.
Although the Fund performed well overall, it was not without
disappointments, including LucasVarity and Dorling Kindersley, both
British-based businesses. LucasVarity was the result of a merger between two
highly complementary auto parts companies, Lucas and Varity. After the merger,
management set extremely aggressive integration targets and then fell far short
of achieving them. Dorling Kindersley specializes in publishing, specifically
children's educational books and interactive CD-ROMS. Unfortunately, in the last
three years, the number of major chain bookstores has increased substantially,
nearly tripling capacity, while demand has actually slowed slightly. Book
retailers have the ability to return unsold books to printers at cost, and the
unexpected return of inventory negatively impacted Dorling Kindersley's results.
Current Outlook
Foreign equity markets are exhibiting a growing independence and diversity
that is very healthy. Fiscal restraint in the public and private sectors and the
proliferation of shareholder-friendly corporate managers has created a wealth of
solid growth companies around the globe. In this excellent investment
environment, our intensive, fundamental analysis of individual companies should
continue to uncover a wide range of exceptional opportunities.
Thank you for your continued investment in Janus Worldwide Fund.
- --------------------------------------------------------------------------------
(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." As of April 30, 1997, Janus Worldwide Fund was
ranked 5/197 (top 3%) of Global Funds for the 3-year period, and 2/43 (top
5%) for the 5-year period. 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.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 46
<PAGE>
JANUS WORLDWIDE FUND Portfolio Manager, Helen Young Hayes
Performance Overview
GRAPHIC
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Worldwide Fund and the Morgan Stanley Capital International World
Index. Janus Worldwide Fund is represented by a solid blue line. The Morgan
Stanley Capital International 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,
1997. The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Worldwide Fund ($29,593) as compared to the Morgan Stanley
Capital International World Index ($18,537). There is a legend in the upper left
quadrant of the graph which indicates Janus Worldwide Fund's one-year, five-year
and since inception (May 15, 1991) average annual total return as 18.48%, 18.56%
and 19.97%, respectively.
*The Fund's inception date
Source - Lipper Analytical Services, Inc. 1997.
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, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 90.0%
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.2%
153,125 Boeing Co. $ 15,101,953
- --------------------------------------------------------------------------------
Airlines - 0.3%
22,440 SwissAir A.G.*,** 19,646,310
- --------------------------------------------------------------------------------
Apparel Manufacturers - 0.6%
680,875 Gucci Group N.V. - N.Y. Shares* 47,235,703
- --------------------------------------------------------------------------------
Athletic Footwear - 1.3%
542,329 Adidas A.G.** 56,529,632
671,300 Nike, Inc. - Class B 37,760,625
- --------------------------------------------------------------------------------
94,290,257
- --------------------------------------------------------------------------------
Audio and Video Products - 1.1%
1,082,200 Sony Corp.** 78,792,266
47,150 Sony Corp. (ADR)** 3,459,631
- --------------------------------------------------------------------------------
82,251,897
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 4.4%
45,068 BMW A.G.** 36,904,612
2,320,000 Honda Motor Co., Ltd.** 72,025,834
621,367 Mahindra & Mahindra, Ltd. (GDR)* 7,487,472
853,300 Tata Engineering & Locomotive Co., Ltd. 10,111,605
1,474,654 Tata Engineering & Locomotive Co., Ltd. (GDR)* 17,581,158
279,498 Volkswagen A.G.** 177,706,012
- --------------------------------------------------------------------------------
321,816,693
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 0.1%
2,693,928 LucasVarity PLC*,** 8,174,083
- --------------------------------------------------------------------------------
Brewery - 0.2%
3,658,100 Fomento Economico Mexicano S.A. de C.V. 17,157,668
- --------------------------------------------------------------------------------
Broadcast Services and Programming - 0.7%
2,079,400 Grupo Televisa S.A. (GDR)* 48,086,125
- --------------------------------------------------------------------------------
Casino Services - 0%
42,998 London Clubs International PLC** $ 268,609
- --------------------------------------------------------------------------------
Cellular Telecommunications - 0.5%
197,700 Millicom International Cellular S.A.* 8,995,350
7,655,915 Telecom Italia Mobile S.p.A. 24,020,396
- --------------------------------------------------------------------------------
33,015,746
- --------------------------------------------------------------------------------
Chemicals - Diversified - 4.3%
649,312 Akzo Nobel**,+ 83,659,323
3,122,693 BASF A.G.** 120,459,727
3,556,815 BOC Group PLC** 54,567,528
253,400 E.I. du Pont de Nemours and Co. 26,892,075
801,275 Monsanto Co. 34,254,506
- --------------------------------------------------------------------------------
319,833,159
- --------------------------------------------------------------------------------
Chemicals - Specialty - 1.3%
115,463 Ciba Specialty Chemicals A.G.*,** 9,952,106
120,689 Clariant A.G.** 69,131,912
82,655 SGL Carbon A.G.**,+ 11,527,162
756,751 Victrex PLC** 1,999,519
- --------------------------------------------------------------------------------
92,610,699
- --------------------------------------------------------------------------------
Closed-End Funds - 0.2%
276,468 Polish National Investment Fund -
Privatisation Certificate* 12,019,348
- --------------------------------------------------------------------------------
Commercial Banks - 1.1%
456,775 Banco Frances del Rio de la Plata S.A. (ADR) 13,874,541
222,383 BG Bank A/S 9,750,665
21,110,085 Credito Italiano S.p.A. 29,608,066
620,964 Nordbanken A.B.** 19,074,940
702,707 Sparbanken Sverige A.B. - Class A** 12,539,552
- --------------------------------------------------------------------------------
84,847,764
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 47
<PAGE>
JANUS WORLDWIDE FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Commercial Services - 0.1%
89,525 Quintiles Transnational Corp.* $ 4,554,584
- --------------------------------------------------------------------------------
Computer Services - 4.3%
1,227,449 Cap Gemini Sogeti S.A.** 74,344,669
5,875,452 Capita Group PLC** 22,737,418
546,325 Computer Sciences Corp.* 34,145,313
801,262 Enator A.B.*,** 16,136,574
2,221,547 Getronics N.V.** 67,281,352
549,488 Group Axime *,**,# 66,092,516
894,317 Misys PLC** 17,957,595
7,825 Technology Solutions Co.* 206,384
309,410 WM-Data A.B. - Class B** 22,479,617
- --------------------------------------------------------------------------------
321,381,438
- --------------------------------------------------------------------------------
Computer Software - 3.1%
2,712,996 JBA Holdings PLC**,# 36,097,280
2,527 NTT Data Corp.**,# 73,872,575
2,374,200 Parametric Technology Co.* 107,432,550
472,415 SEMA Group PLC** 9,179,323
- --------------------------------------------------------------------------------
226,581,728
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 0.1%
172,200 Dassault Systemes S.A. (ADR)* 10,611,825
- --------------------------------------------------------------------------------
Computers - Mainframe - 0.6%
255,600 IBM Corp. 41,087,700
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 0.4%
2,108,000 Shiseido Co., Ltd.** 30,229,910
- --------------------------------------------------------------------------------
Dialysis Centers - 0.1%
387,550 Vivra, Inc.* 10,027,856
- --------------------------------------------------------------------------------
Diamonds and Precious Stones - 0.1%
236,915 De Beers Centenary A.G.** 8,525,010
- --------------------------------------------------------------------------------
Distribution and Wholesale - 0.2%
448,800 Ikon Office Solutions, Inc. 12,061,500
- --------------------------------------------------------------------------------
Diversified Financial Services - 0.5%
260,800 Associates First Capital Corp. - Class A 13,366,000
155,849 Compagnie Bancaire S.A.** 20,561,354
- --------------------------------------------------------------------------------
33,927,354
- --------------------------------------------------------------------------------
Diversified Operations - 8.6%
1,238,019 Amer Group, Ltd.*,**,# 21,174,419
152,264 Barco N.V. 25,959,891
5,612,000 First Pacific Co., Ltd. 6,701,205
1,275,465 Grupo Carso S.A. de C.V. - Series Al 7,345,610
16,100,310 Hays PLC** 142,769,644
2,952,000 Hutchison Whampoa, Ltd. 21,910,875
1,767,661 Kinnevik A.B. - Class B**,# 45,850,444
2,865,734 Lagardere S.C.A.** 88,676,916
490,000 Metra Oy - Class B** 13,371,453
29,078,936 Rentokil Initial PLC** 190,857,183
749,657 South African Breweries, Ltd.**,+ 22,085,901
61,281 Sulzer A.G.** 42,214,370
1,202,510 TI Group PLC** 10,292,542
- --------------------------------------------------------------------------------
639,210,453
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.5%
1,075,300 Elan Corp. PLC (ADR)* 36,560,200
- --------------------------------------------------------------------------------
Electric - Generation - 0.1%
2,639,000 Beijing Datang Power Generation Co., Ltd.* 1,371,194
148,000 Korea Electric Power Corp. 4,413,451
- --------------------------------------------------------------------------------
5,784,645
- --------------------------------------------------------------------------------
Electric - Integrated - 0.1%
6,000 BSES, Ltd. (GDR)*,+ 139,500
131,225 Mosenergo (ADR)+ 5,117,775
- --------------------------------------------------------------------------------
5,257,275
- --------------------------------------------------------------------------------
Electric Products - 1.3%
1,223,102 Siemens A.G.** $ 66,252,403
741,850 UCAR International, Inc.* 31,157,700
- --------------------------------------------------------------------------------
97,410,103
- --------------------------------------------------------------------------------
Electronic Components - 3.3%
1,295,362 Electrocomponents PLC** 8,302,325
1,969,943 Philips Electronics N.V.** 102,839,938
2,441,911 Philips Electronics N.V. - N.Y. Shares** 130,642,239
- --------------------------------------------------------------------------------
241,784,502
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 0.6%
100,508 ASM Lithography Holding N.V.*,**,+ 7,506,730
22,000 Rohm Co.** 1,705,776
456,725 SGS-Thomson Microelectronics N.V. - N.Y. Shares* 35,795,822
- --------------------------------------------------------------------------------
45,008,328
- --------------------------------------------------------------------------------
Engineering - Research and Development Services - 0.3%
156,994 VA Technologie A.G. 24,386,003
- --------------------------------------------------------------------------------
Film Processing - 0.1%
60,973 Grand Optical Photoservice** 9,078,504
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.3%
1,926,000 Nomura Securities Co., Ltd.** 21,550,071
- --------------------------------------------------------------------------------
Finance - Other Services - 0.3%
6,421,677 Grupo Financiero Inbursa S.A. de C.V. - Class B 21,963,989
- --------------------------------------------------------------------------------
Food - Catering - 0.6%
3,712,532 Compass Group PLC**,+ 40,793,617
- --------------------------------------------------------------------------------
Food - Dairy Products - 1.6%
551,769 Koninklijke Nutricia Verenidge Bedrijven N.V.** 83,723,798
24,139,086 Parmalat Finanziaria S.p.A. 35,040,889
- --------------------------------------------------------------------------------
118,764,687
- --------------------------------------------------------------------------------
Food - Diversified - 0.4%
396,053 Raision Tehtaat Oy** 32,803,845
- --------------------------------------------------------------------------------
Food - Retail - 0.2%
370,450 Disco S.A. (ADR)* 11,483,950
237,378 Pao De Acucar S.A.+ 4,628,871
- --------------------------------------------------------------------------------
16,112,821
- --------------------------------------------------------------------------------
Healthcare Safety Devices - 0.2%
5,641,993 London International Group PLC** 16,524,230
- --------------------------------------------------------------------------------
Home Furnishings - 0%
9,443 Hunter Douglas N.V.** 770,716
- --------------------------------------------------------------------------------
Hotels and Motels - 0.3%
120,075 EIH, Ltd.+ 1,905,590
262,100 HFS, Inc.* 15,529,425
321,010 Indian Hotels Co., Ltd.*,+,# 7,502,004
18,291 Sol Melia S.A.* 626,083
- --------------------------------------------------------------------------------
25,563,102
- --------------------------------------------------------------------------------
Human Resources - 0.1%
110,729 Randstad Holdings N.V.** 9,946,874
- --------------------------------------------------------------------------------
Investment Companies - 0.3%
1,081,229 Bure Investment A.B.** 13,643,713
180,577 Incentive A.B. - Class B** 11,853,575
- --------------------------------------------------------------------------------
25,497,288
- --------------------------------------------------------------------------------
Machinery - Construction and Mining - 0.2%
492,497 Atlas Copco A.B. - Class A** 12,178,260
- --------------------------------------------------------------------------------
Machinery - Farm - 0.2%
659,625 New Holland N.V.* 14,594,203
- --------------------------------------------------------------------------------
Machinery - General Industrial - 0%
185,192 Powerscreen International PLC** 1,825,492
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 48
<PAGE>
JANUS WORLDWIDE FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Machinery - Pumps - 0%
93,000 Pfeiffer Vacuum Technology A.G. (ADR)* $ 2,162,250
- --------------------------------------------------------------------------------
Medical - Biomedical and Genetic - 0.1%
7,527 Ares-Serono Group - Class B** 10,104,542
- --------------------------------------------------------------------------------
Medical - Drugs - 9.9%
1,436,900 Bristol-Myers Squibb Co. 94,116,950
1,895,950 Eisai Co., Ltd.** 32,866,514
3,789,640 Glaxo Wellcome PLC** 74,618,963
102,493 Novartis A.G.** 135,086,472
80,825 Pfizer, Inc. 7,759,200
2,819,302 Rhone-Poulenc - Class A** 94,824,128
722,875 Rhone-Poulenc Rorer, Inc. 52,137,359
18,203 Roche Holding A.G.** 153,808,646
2,253,755 SmithKline Beecham PLC** 36,258,589
218,575 SmithKline Beecham PLC (ADR)** 17,622,609
847,000 Takeda Chemical Industries** 19,554,878
282,150 Teva Pharmaceutical Industries, Ltd. (ADR) 14,319,113
- --------------------------------------------------------------------------------
732,973,421
- --------------------------------------------------------------------------------
Medical - HMO - 0.4%
603,425 United Healthcare Corp. 29,341,541
- --------------------------------------------------------------------------------
Medical - Wholesale Drug Distributors - 0.8%
449,013 Gehe A.G.** 29,870,845
1,672,925 Grupo Casa Autrey S.A. de C.V. (ADR) 29,067,072
- --------------------------------------------------------------------------------
58,937,917
- --------------------------------------------------------------------------------
Medical Instruments - 0.2%
288,825 Boston Scientific Corp.* 13,935,806
- --------------------------------------------------------------------------------
Medical Products - 1.3%
459,146 Biocompatibles International PLC*,** 9,104,026
2,926,125 Fresenius Medical Care A.G. (ADR)* 85,954,922
- --------------------------------------------------------------------------------
95,058,948
- --------------------------------------------------------------------------------
Metal Processors and Fabricators - 1.1%
4,161,377 Assa-Abloy A.B. - Class B**,# 81,418,884
- --------------------------------------------------------------------------------
Money Center Banks - 7.9%
234,975 Bank of New York Co., Inc. 9,281,513
307,700 BankAmerica Corp. 35,962,438
1,403,828 Banque Nationale de Paris** 59,892,192
2,401,677 Barclays PLC** 44,737,113
527,325 Citicorp 59,389,978
421,421 Credit Suisse Group** 47,478,030
2,179,818 Deutsche Bank A.G.** 115,054,220
8,526,046 Lloyds TSB Group PLC** 78,025,803
799,000 Mitsui Trust and Banking Co., Ltd.** 4,557,840
74,669 Schweizensche Bankgesellschaft - Class B** 70,694,068
1,450,504 Skandinaviska Enskilda Banken - Class A** 14,790,696
237,931 Societe Generale** 26,661,571
1,499,000 Sumitomo Trust & Banking Co., Ltd.** 12,401,653
85,142 Unidanmark A/S - Class A 4,211,107
- --------------------------------------------------------------------------------
583,138,222
- --------------------------------------------------------------------------------
Mortgage Banks - 1.3%
1,772,890 Deutsche Pfandbrief & Hypothekenbank A.G.** 96,442,579
- --------------------------------------------------------------------------------
Motorcycle and Motor Scooter Manufacturing- 0.1%
232,536 Bajaj Auto, Ltd. (GDR)+ 7,464,406
- --------------------------------------------------------------------------------
Multi-Line Insurance - 1.0%
12,069 Baloise Holdings, Ltd. - Class R*,** 25,474,174
152,833 Zurich Versicherungsgesellschaft** 50,203,145
- --------------------------------------------------------------------------------
75,677,319
- --------------------------------------------------------------------------------
Networking Products - 0.9%
1,224,450 Cisco Systems, Inc.* 63,365,288
124,675 Xylan Corp.* 1,854,541
- --------------------------------------------------------------------------------
65,219,829
- --------------------------------------------------------------------------------
Office Automation and Equipment - 1.6%
2,856,000 Canon, Inc.** $ 67,737,441
1,094,275 Danka Business Systems PLC (ADR) 33,443,780
156,113 Oce-Van Der Grinten N.V.** 18,887,994
- --------------------------------------------------------------------------------
120,069,215
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 0.7%
499,069 Elf Aquitaine S.A.** 48,398,732
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.8%
193,475 Lukoil Oil Co. (ADR) 10,834,600
1,673,575 YPF S.A. (ADR) 46,232,509
- --------------------------------------------------------------------------------
57,067,109
- --------------------------------------------------------------------------------
Pharmacy Services - 0.1%
212,625 Omnicare, Inc. 5,182,734
- --------------------------------------------------------------------------------
Pipelines - 0%
117,550 Gazprom (ADR)*,+ 1,804,393
- --------------------------------------------------------------------------------
Printers and Related Products - 0.3%
528,900 Electronics for Imaging, Inc.* 20,759,325
- --------------------------------------------------------------------------------
Publishing - Books - 0.8%
513,643 Wolters Kluwer N.V.** 60,879,699
- --------------------------------------------------------------------------------
Publishing - Newspapers - 0.1%
675,781 Pearson PLC** 7,768,860
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 1.3%
97,103 Diligentia A.B.*,** 1,027,284
4,806,000 Mitsubishi Estate Co., Ltd.** 60,590,627
3,077,000 Mitsui Fudosan Co., Ltd.** 35,156,011
- --------------------------------------------------------------------------------
96,773,922
- --------------------------------------------------------------------------------
Recreational Vehicles - 0%
329,000 Yamaha Motor Co., Ltd.** 2,929,398
- --------------------------------------------------------------------------------
Recycling - 0.5%
2,002,036 Tomra Systems A.S.A.# 38,799,185
- --------------------------------------------------------------------------------
Retail - Home Furnishings - 0.1%
298,300 Industrie Natuzzi S.p.A. (ADR) 6,637,175
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 0.1%
738,000 Isetan Co.** 8,141,201
- --------------------------------------------------------------------------------
Rubber - Tires - 0.7%
878,572 Compagnie Generale des
Etablissements Michelin - Class B** 49,089,079
- --------------------------------------------------------------------------------
Satellite Telecommunications - 0.2%
220,075 Globalstar Telecommunications, Ltd.* 11,663,975
- --------------------------------------------------------------------------------
Security Services - 1.5%
2,320,710 Prosegur Companhia de Seguridad S.A. 25,181,073
3,617,675 Securitas A.B. - Class B**,# 87,150,736
- --------------------------------------------------------------------------------
112,331,809
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.7%
246,814 CLF-Dexia France** 22,836,025
268,842 Credit Communal Holding/Dexia+ 26,718,607
- --------------------------------------------------------------------------------
49,554,632
- --------------------------------------------------------------------------------
Super-Regional Banks - 1.1%
309,316 Wells Fargo & Co. 82,510,043
- --------------------------------------------------------------------------------
Telecommunication Equipment - 2.1%
305,530 Alcatel Alsthom** 33,974,691
730,125 Lucent Technologies, Inc. 43,168,641
631,126 Nokia A.B - Class A** 38,993,411
661,175 Nokia Corp. (ADR) - Class A** 42,728,434
- --------------------------------------------------------------------------------
158,865,177
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 49
<PAGE>
JANUS WORLDWIDE FUND April 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Telecommunication Services - 2.7%
1,201,529 SK Telecom Co., Ltd. (ADR) $ 11,414,523
5,453,294 Stet Societa' Finanziaria Telefonica S.p.A. 25,885,922
9,035,617 Telecom Italia S.p.A. 23,926,074
1,182,148 Telefonaktiebolaget L.M. Ericsson - Class B** 37,368,291
1,181,200 Telefonaktiebolaget L.M. Ericsson (ADR) - Class 39,717,850
2,600,675 Telefonica del Peru S.A. (ADR) - Class B 62,416,200
- --------------------------------------------------------------------------------
200,728,860
- --------------------------------------------------------------------------------
Telephone - Integrated - 2.3%
15,025 Nippon Telegraph & Telephone Corp.** 105,959,916
503,600 Portugal Telecom S.A. (ADR) 18,633,200
313,500 Telecom Argentina Stet S.A. (ADR) 15,675,000
944,725 Telefonica de Argentina S.A. (ADR) 31,412,106
- --------------------------------------------------------------------------------
171,680,222
- --------------------------------------------------------------------------------
Television - 0.2%
874,425 CanWest Global Communications Corp.# 11,695,434
28,747 Central European Media Enterprises, Ltd. (ADR)* 815,696
- --------------------------------------------------------------------------------
12,511,130
- --------------------------------------------------------------------------------
Textile - Apparel - 0.2%
157,909 Wolford A.G. 16,273,484
- --------------------------------------------------------------------------------
Tobacco - 0.4%
4,404,500 PT Hanjaya Mandala Sampoerna 17,717,689
633,750 Souza Cruz S.A. 5,124,649
2,306,212 Swedish Match A.B.** 7,525,215
- --------------------------------------------------------------------------------
30,367,553
- --------------------------------------------------------------------------------
Transportation - Services - 0.7%
300,020 Koninklijke Nedlloyd Groep N.V.** 6,884,064
4,886,441 Stagecoach Holdings PLC** 47,136,354
- --------------------------------------------------------------------------------
54,020,418
- --------------------------------------------------------------------------------
Travel Services - 0.4%
9,568 Kuoni Reisen A.G. - Class B** 27,533,122
- --------------------------------------------------------------------------------
Total Common Stock (cost $5,844,648,723) 6,662,930,243
- --------------------------------------------------------------------------------
Preferred Stock - 2.3%
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 0.1%
6,489 Porsche A.G.** 8,431,336
- --------------------------------------------------------------------------------
Brewery - 0.2%
17,190,000 Companhia Cervejaria Brahma 11,693,944
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.5%
181,103 Fresenius A.G.** 40,735,141
- --------------------------------------------------------------------------------
Electric - Integrated - 0.3%
1,803,000 Centrais Electricas de Santa Catarina S.A. 2,542,925
430,898,000 Companhia Energetica de Minas Gerais 19,645,959
139,700,000 Companhia Paranaense de Energia-Copel 2,173,907
- --------------------------------------------------------------------------------
24,362,791
- --------------------------------------------------------------------------------
Medical Products - 0.1%
103,256 Fresenius Medical Care A.G.*,** 7,423,706
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.2%
71,282,000 Petroleo Brasileiro S.A. 15,013,242
- --------------------------------------------------------------------------------
Telephone - Integrated - 0.9%
554,100 Telecomunicacoes Brasileiras S.A. (ADR) 63,582,975
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $108,325,929) 171,243,135
- --------------------------------------------------------------------------------
Rights - 0%
181,103 Fresenius A.G.*,** (cost $0) 700,718
- --------------------------------------------------------------------------------
Money Market - 0%
$ 600,000 Janus Government Securities
Money Market Fund, 5.48% (cost $600,000) $ 600,000
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 2.8%
Deutsche Bank A.G.
50,000,000 5.49%, 5/2/97 49,992,375
Ford Motor Credit Corp.:
50,000,000 5.46%, 5/22/97 49,840,750
50,000,000 5.47%, 5/22/97 49,840,458
General Electric Capital Corp.:
50,000,000 5.62%, 5/1/97 49,801,750
7,900,000 5.49%, 5/27/97 7,900,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $207,375,333) 207,375,333
- --------------------------------------------------------------------------------
Time Deposit - 1.2%
91,000,000 First Union Bank 5.6875%, 5/1/97
(cost $91,000,000) 91,000,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 5.6%
Fannie Mae:
100,000,000 8.91%, 6/23/97 99,204,264
50,000,000 5.72%, 7/15/97 49,420,000
50,000,000 5.72%, 7/18/97 49,397,500
40,000,000 6.39%, 9/11/97 39,173,600
Federal Home Loan Bank:
50,000,000 8.34%, 5/12/97 49,920,861
50,000,000 8.34%, 5/16/97 49,891,250
50,000,000 8.61%, 5/30/97 49,791,160
25,000,000 9.25%, 6/20/97 24,810,764
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $411,674,785) 411,609,399
- --------------------------------------------------------------------------------
Total Investments (total cost $6,663,624,770) - 101.9% 7,545,458,828
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.9%) (139,500,292)
- --------------------------------------------------------------------------------
Net Assets - 100% $7,405,958,536
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 50
<PAGE>
JANUS WORLDWIDE FUND April 30, 1997 (unaudited)
Summary of Investments by Country
April 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 1.6% $ 118,678,106
Austria 0.5% 40,659,487
Belgium 0.7% 52,678,498
Brazil 1.6% 124,406,471
Canada 0.2% 11,695,434
Denmark 0.2% 13,961,771
Finland 2.0% 149,071,561
France 8.5% 640,838,025
Germany 11.4% 856,970,965
Hong Kong 0.4% 29,983,273
India 0.7% 52,191,734
Indonesia 0.2% 17,717,688
Ireland 0.5% 36,560,200
Israel 0.2% 14,319,112
Italy 1.9% 192,354,223
Japan 8.4% 631,531,542
Luxembourg 0.1% 8,995,350
Mexico 1.6% 123,620,465
Netherlands 8.4% 587,616,930
Norway 0.5% 38,799,185
Peru 0.8% 62,416,200
Poland 0.2% 12,019,348
Portugal 0.3% 18,633,200
Russia 0.2% 17,756,767
South Africa 0.4% 30,610,911
South Korea 0.2% 15,827,973
Spain 0.3% 25,807,155
Sweden 5.6% 422,755,632
Switzerland 8.8% 661,326,896
United Kingdom 12.1% 911,062,489
United States ++ 21.5% 1,624,592,237
- --------------------------------------------------------------------------------
Total 100% $7,545,458,828
- --------------------------------------------------------------------------------
++Includes Short-Term Securities ( 12.1% excluding Short-Term Securities)
Forward Currency Contracts
Open at April 30, 1997
- --------------------------------------------------------------------------------
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/24/97 75,000,000 $ 121,567,500 $ 1,312,500
British Pound 7/28/97 75,000,000 121,552,500 (258,075)
Dutch Guilder 7/21/97 220,000,000 113,718,598 9,049,259
Dutch Guilder 7/24/97 220,000,000 113,742,116 6,987,751
Dutch Guilder 8/11/97 60,000,000 31,063,940 1,140,451
Finnish Markka 5/12/97 4,520,000 871,577 134,544
Finnish Markka 7/18/97 8,500,000 1,647,830 175,422
French Franc 8/4/97 500,000,000 86,342,364 4,960,157
French Franc 8/11/97 325,000,000 56,149,686 2,029,398
French Franc 9/11/97 72,635,000 12,576,182 123,354
German Deutschemark 7/17/97 45,000,000 26,159,749 2,504,497
German Deutschemark 7/21/97 73,000,000 42,449,264 3,326,510
German Deutschemark 7/24/97 155,269,000 90,309,428 5,898,626
German Deutschemark 8/11/97 62,500,000 36,402,819 1,693,000
German Deutschemark 9/11/97 48,000,000 28,024,288 249,259
Japanese Yen 6/17/97 5,000,000,000 39,369,800 5,703,670
Japanese Yen 7/18/97 8,406,000,000 66,191,687 7,958,183
Japanese Yen 8/12/97 2,500,000,000 19,686,574 870,946
Japanese Yen 9/11/97 1,400,000,000 11,024,976 775,030
Japanese Yen 11/4/97 5,500,000,000 43,295,393 1,138,279
South African Rand 11/3/97 76,695,000 16,421,506 (1,734,604)
Swedish Krona 7/28/97 964,886,000 123,592,417 13,745,674
Swiss Franc 5/12/97 35,188,000 23,934,159 4,367,485
Swiss Franc 6/5/97 90,000,000 61,395,730 189,052
Swiss Franc 7/21/97 20,000,000 13,715,540 873,417
Swiss Franc 7/24/97 75,000,000 51,450,916 1,948,871
Swiss Franc 8/4/97 40,000,000 27,476,302 1,148,287
Swiss Franc 8/11/97 40,000,000 27,498,969 727,691
- --------------------------------------------------------------------------------
$1,407,631,810 $77,038,634
================================================================================
See Notes to Schedule of Investments
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 51
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the six months or period Janus Janus Janus Janus Growth Janus
ended April 30, 1997 (unaudited) Janus Balanced Enterprise Equity Income and Income Mercury
(all numbers in thousands) Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C> <C>
Interest $ 75,172 $ 3,404 $ 576 $ 150 $ 1,908 $ 5,837
Dividends 89,666 1,139 597 221 6,538 7,393
Foreign Tax Withheld (3,950) (33) (38) (7) (15) (483)
- ------------------------------------------------------------------------------------------------------------------------------
160,888 4,510 1,135 364 8,431 12,747
- ------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 52,675 943 2,351 162 4,055 6,804
Transfer agent fees and expenses 14,346 260 846 43 1,316 2,199
Registration fees 868 73 31 21 157 145
Postage and mailing expenses 1,462 55 172 10 190 222
Custodian fees 1,627 43 65 25 75 156
Printing expenses 556 14 28 2 88 84
Audit fees 20 3 5 6 5 5
Trustees' fees and expenses 114 1 5 -- 7 7
Other expenses 269 15 23 8 32 131
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses 71,937 1,407 3,526 277 5,925 9,753
- ------------------------------------------------------------------------------------------------------------------------------
Expense and fee offsets (1,492) (27) (110) (5) (131) (276)
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 70,445 1,380 3,416 272 5,794 9,477
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 90,443 3,130 (2,281) 92 2,637 3,270
- ------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain/(Loss) on Investments:
Net realized gain/(loss) from
securities transactions 1,086,936 5,911 (37,068) 802 36,773 85,136
Net realized gain/(loss) from
foreign currency transactions 77,386 521 (3,440) 114 709 1,109
Net realized gain/(loss) from
futures contracts -- -- -- -- -- 368
Change in net unrealized appreciation
or depreciation of investments (201,607) 4,767 (57,307) 1,388 79,488 (101,702)
- ------------------------------------------------------------------------------------------------------------------------------
Net gain/loss on investments 962,715 11,199 (97,815) 2,304 116,970 (15,089)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase/decrease in net assets
resulting from operations $ 1,053,158 $ 14,329 $ (100,096) $ 2,396 $ 119,607 $ (11,819)
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
For the six months or period Janus Janus Janus Janus Janus Janus
ended April 30, 1997 (unaudited) Olympus Overseas Special Situations Twenty Venture Worldwide
(all numbers in thousands) Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C> <C>
Interest $ 1,780 $ 5,160 $ 159 $ 5,147 $ 4,651 $ 15,809
Dividends 1,850 7,613 290 26,903 1,498 33,565
Foreign Tax Withheld (39) (996) (12) (60) (41) (3,692)
- ------------------------------------------------------------------------------------------------------------------------------
3,591 11,777 437 31,990 6,108 45,682
- ------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 1,690 4,443 251 14,330 5,083 19,070
Transfer agent fees and expenses 553 1,263 79 4,779 1,440 5,532
Registration fees 76 467 19 397 26 1,154
Postage and mailing expenses 69 149 22 461 148 439
Custodian fees 31 503 13 169 159 1,506
Printing expenses 7 48 12 181 59 201
Audit fees 3 7 3 9 8 13
Trustees' fees and expenses 2 8 1 29 17 42
Other expenses 14 22 7 67 44 74
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses 2,445 6,910 407 20,422 6,984 28,031
- ------------------------------------------------------------------------------------------------------------------------------
Expense and fee offsets (101) (143) (8) (525) (153) (561)
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,344 6,767 399 19,897 6,831 27,470
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 1,247 5,010 38 12,093 (723) 18,212
- ------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain/(Loss) on Investments:
Net realized gain/(loss) from
securities transactions (15,008) 11,989 (227) 338,666 91,734 108,457
Net realized gain/(loss) from
foreign currency transactions (288) 6,941 (8) (97) 2,309 55,447
Net realized gain/(loss) from
futures contracts (3,368) -- -- -- -- (605)
Change in net unrealized appreciation
or depreciation of investments 22,365 111,017 6,550 37,179 (236,420) 382,296
- ------------------------------------------------------------------------------------------------------------------------------
Net gain/loss on investments 3,701 129,947 6,315 375,748 (142,377) 545,595
- ------------------------------------------------------------------------------------------------------------------------------
Net increase/decrease in net assets
resulting from operations $ 4,948 $ 134,957 $ 6,353 $ 387,841 $ (143,100) $ 563,807
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
An Explanation of the Statement of Operations
This financial statement details the Funds' income, expenses, 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' portfolios. 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.
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
As of April 30, 1997 (unaudited) Janus Janus Janus Janus Growth Janus
(all numbers in thousands except Janus Balanced Enterprise Equity Income and Income Mercury
net asset value per share) Fund Fund Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C>
Investments at cost $13,875,533 $ 259,129 $ 426,571 $ 42,426 $ 1,084,920 $ 1,926,550
=========================================================================================================================
Investments at value $16,563,085 $ 278,394 $ 522,988 $ 44,830 $ 1,307,572 $ 1,987,456
Cash 1,557 512 505 520 510 677
Receivables:
Investments sold 460,777 5,412 2,322 1,010 20,811 22,918
Fund shares sold 13,213 2,936 520 178 3,270 1,816
Dividends 35,360 266 213 54 1,378 2,843
Interest 964 2,315 -- 184 630 14
Forward currency contracts 171 -- 1,066 -- 2,096 5,533
Other assets 83 -- 1 -- 5 6
- -------------------------------------------------------------------------------------------------------------------------
Total Assets 17,075,210 289,835 527,615 46,776 1,336,272 2,021,263
- -------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 335,699 10,931 4,483 2,897 44,280 120,408
Fund shares repurchased 14,609 452 931 25 1,126 2,854
Advisory fees 8,662 170 327 31 692 1,034
Transfer agent fee and expenses 2,566 51 198 9 232 419
Accrued expenses 2,185 81 148 25 258 125
Forward currency contracts -- 18 -- 6 -- --
- -------------------------------------------------------------------------------------------------------------------------
Total Liabilities 363,721 11,703 6,087 2,993 46,588 124,840
- -------------------------------------------------------------------------------------------------------------------------
Net Assets $16,711,489 $ 278,132 $ 521,528 $ 43,783 $ 1,289,684 $ 1,896,423
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 661,526 19,032 20,459 3,739 63,470 119,779
=========================================================================================================================
Net Asset Value Per Share $ 25.26 $ 14.61 $ 25.49 $ 11.71 $ 20.32 $ 15.83
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
As of April 30, 1997 (unaudited)
(all numbers in thousands except Olympus Overseas Special Situations Twenty Venture Worldwide
net asset value per share) Fund Fund Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C>
Investments at cost $ 466,950 $ 1,927,268 $ 117,886 $ 3,936,396 $ 1,052,004 $ 6,663,625
=========================================================================================================================
Investments at value $ 523,525 $ 2,085,545 $ 124,442 $ 4,576,527 $ 1,158,250 $ 7,545,459
Cash 1,682 524 594 2,023 1,804 582
Receivables:
Investments sold 3,284 13,170 5,183 166,873 28,600 56,481
Fund shares sold 1,173 31,499 471 20,458 139 42,406
Dividends 717 4,227 72 6,903 213 21,460
Interest -- -- -- 546 -- 18
Forward currency contracts 291 16,229 -- -- 89 77,039
Other assets (2) 3 -- 47 19 13
- -------------------------------------------------------------------------------------------------------------------------
Total Assets 530,670 2,151,197 130,762 4,773,377 1,189,114 7,743,458
- -------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 32,770 106,323 5,998 106,579 3,692 327,848
Fund shares repurchased 983 1,069 367 3,320 2,162 3,189
Advisory fees 288 1,028 78 2,399 687 3,781
Transfer agent fee and expenses 97 282 22 746 189 1,093
Accrued expenses 48 501 49 588 146 1,588
Forward currency contracts -- -- 6 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total Liabilities 34,186 109,203 6,520 113,632 6,876 337,499
- -------------------------------------------------------------------------------------------------------------------------
Net Assets $ 496,484 $ 2,041,994 $ 124,242 $ 4,659,745 $ 1,182,238 $ 7,405,959
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 33,188 125,193 11,478 158,852 25,327 205,828
=========================================================================================================================
Net Asset Value Per Share $ 14.96 $ 16.31 $ 10.82 $ 29.33 $ 46.68 $ 35.98
=========================================================================================================================
</TABLE>
(1) Period from December 31, 1996 (inception) to April 30, 1997 See Notes to
Financial Statements
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' net assets (assets minus liabilities) by the number of shares
outstanding.
See Notes to Financial Statements
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT PAGES 52 AND 53
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six months or period
ended April 30, 1997 (unaudited) Janus Janus Janus
or the year ended October 31, 1996 Janus Balanced Enterprise Equity Income
(all numbers in thousands) Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996 1997 1996(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) $ 90,443 $ 124,873 $ 3,130 $ 3,730 $ (2,281) $ (4,643) $ 92 $ 222
Net realized gain/(loss) from
investment transactions 1,164,322 1,668,694 6,432 18,941 (40,508) 36,335 916 950
Change in unrealized net appreciation
or depreciation of investments (201,607) 685,129 4,767 4,979 (57,307) 72,341 1,388 1,010
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 1,053,158 2,478,696 14,329 27,650 (100,096) 104,033 2,396 2,182
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions
to Shareholders from:
Net investment income* (120,830) (70,555) (3,079) (2,801) -- -- (215) (75)
Net realized gain from
investment transactions* (1,689,077) (581,254) (19,020) (7,702) (30,151) (30,845) (992) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease from dividends
and distributions (1,809,907) (651,809) (22,099) (10,503) (30,151) (30,845) (1,207) (75)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 1,769,806 3,005,157 124,065 116,988 190,249 588,531 32,486 40,622
Reinvested dividends and distributions 1,766,166 628,657 21,505 10,173 29,668 30,326 1,135 68
Shares repurchased (1,380,914) (2,110,491) (66,712) (61,809) (300,145) (419,412) (21,456) (12,368)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from
capital share transactions 2,155,058 1,523,323 78,858 65,352 (80,228) 199,445 12,165 28,322
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 1,398,309 3,350,210 71,088 82,499 (210,475) 272,633 13,354 30,429
Net Assets:
Beginning of period 15,313,180 11,962,970 207,044 124,545 732,003 459,370 30,429 --
End of Period $16,711,489 $15,313,180 $ 278,132 $ 207,044 $ 521,528 $ 732,003 $ 43,783 $ 30,429
====================================================================================================================================
Net Assets consist of:
Capital (par value and
paid-in surplus)* $12,764,120 $10,609,062 $250,965 $172,106 $465,783 $546,012 $40,487 $28,322
Undistributed net investment
income/(distribution in excess)* 143,610 173,997 1,621 1,570 (2,281) -- (4) 119
Undistributed net realized
gain/(loss) from investments* 1,116,166 1,640,921 6,300 18,889 (39,453) 31,206 902 978
Unrealized appreciation of
investments and foreign currency 2,687,593 2,889,200 19,246 14,479 97,479 154,785 2,398 1,010
- ------------------------------------------------------------------------------------------------------------------------------------
$16,711,489 $15,313,180 $278,132 $207,044 $521,528 $732,003 $43,783 $30,429
- ------------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 69,131 120,626 8,428 8,113 6,596 19,462 2,806 3,793
Reinvested distributions 71,795 27,285 1,520 733 1,027 1,105 103 6
- ------------------------------------------------------------------------------------------------------------------------------------
Total 140,926 147,911 9,948 8,846 7,623 20,567 2,909 3,799
Shares repurchased (54,104) (85,075) (4,534) (4,304) (10,630) (14,026) (1,865) (1,104)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) 86,822 62,836 5,414 4,542 (3,007) 6,541 1,044 2,695
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding
beginning of period 574,704 511,868 13,618 9,076 23,466 16,925 2,695 --
Shares outstanding
end of period 661,526 574,704 19,032 13,618 20,459 23,466 3,739 2,695
====================================================================================================================================
Purchases and Sales of
Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $10,099,258 $12,620,553 $164,342 $218,807 $235,068 $684,287 $35,772 $51,005
Proceeds from Sales of Securities 8,613,440 13,659,045 98,072 200,065 368,598 541,498 26,468 23,673
Purchases of Long-Term
U.S. Government Obligations -- 52,837 17,058 64,006 -- -- 1,000 --
Proceeds from Sales of Long-Term
U.S. Government Obligations -- 155,889 20,593 31,633 -- -- -- --
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
For the six months or period
ended April 30, 1997 (unaudited) Janus Janus Janus Janus
or the year ended October 31, 1996 Growth and Income Mercury Olympus Overseas
(all numbers in thousands) Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996(2) 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) $2,637 $5,418 $3,270 $8,219 $1,247 $3,766 $5,010 $2,438
Net realized gain/(loss) from
investment transactions 37,482 96,004 86,613 243,601 (18,664) (9,331) 18,930 14,966
Change in unrealized net appreciation
or depreciation of investments 79,488 64,283 (101,702) 31,715 22,365 34,500 111,017 53,555
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 119,607 165,705 (11,819) 283,535 4,948 28,935 134,957 70,959
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions
to Shareholders from:
Net investment income* (4,221) (3,323) (8,225) -- (3,648) -- (2,552) (1,175)
Net realized gain from
investment transactions* (97,951) (73,130) (250,204) (182,852) -- -- (15,609) (1,110)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease from dividends
and distributions (102,172) (76,453) (258,429) (182,852) (3,648) -- (18,161) (2,285)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 373,090 495,936 549,647 1,232,319 311,513 638,135 1,644,500 923,886
Reinvested dividends and distributions 99,788 74,420 252,800 176,985 3,545 -- 17,781 2,204
Shares repurchased (233,812) (209,388) (638,126) (1,028,405) (252,249) (234,695) (509,713) (333,000)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from
capital share transactions 239,066 360,968 164,321 380,899 62,809 403,440 1,152,568 593,090
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 256,501 450,220 (105,927) 481,582 64,109 432,375 1,269,364 661,764
Net Assets:
Beginning of period 1,033,183 582,963 2,002,350 1,520,768 432,375 -- 772,630 110,866
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period $1,289,684 $1,033,183 $1,896,423 $2,002,350 $496,484 $432,375 $2,041,994 $772,630
====================================================================================================================================
Net Assets consist of:
Capital (par value and
paid-in surplus)* $1,028,438 $789,372 $1,744,726 $1,580,406 $466,249 $403,440 $1,844,499 $691,931
Undistributed net investment
income/(distribution in excess)* 3,757 5,340 10,440 15,395 1,247 3,647 8,197 5,739
Undistributed net realized
gain/(loss) from investments* 32,748 93,217 74,839 238,429 (27,877) (9,212) 14,825 11,504
Unrealized appreciation of
investments and foreign currency 224,741 145,254 66,418 168,120 56,865 34,500 174,473 63,456
- ------------------------------------------------------------------------------------------------------------------------------------
$1,289,684 $1,033,183 $1,896,423 $2,002,350 $496,484 $432,375 $2,041,994 $772,630
====================================================================================================================================
Transactions in Fund Shares:
Shares sold 18,430 26,416 32,016 70,853 20,837 45,233 104,004 66,683
Reinvested distributions 5,160 4,445 15,284 11,034 242 -- 1,181 183
- ------------------------------------------------------------------------------------------------------------------------------------
Total 23,590 30,861 47,300 81,887 21,079 45,233 105,185 66,866
Shares repurchased (11,649) (11,490) (37,527) (59,376) (16,992) (16,132) (32,176) (24,253)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) 11,941 19,371 9,773 22,511 4,087 29,101 73,009 42,613
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding
beginning of period 51,529 32,158 110,006 87,495 29,101 -- 52,184 9,571
Shares outstanding
end of period 63,470 51,529 119,779 110,006 33,188 29,101 125,193 52,184
====================================================================================================================================
Purchases and Sales of
Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $981,531 $1,415,291 $1,380,185 $2,994,725 $620,522 $866,966 $1,331,291 $621,472
Proceeds from Sales of Securities 841,577 1,150,323 1,665,567 2,804,270 601,725 525,025 291,655 210,188
Purchases of Long-Term
U.S. Government Obligations -- -- -- -- -- -- -- --
Proceeds from Sales of Long-Term
U.S. Government Obligations -- -- -- -- -- -- -- --
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
For the six months or period
ended April 30, 1997 (unaudited) Janus Janus Janus Janus
or the year ended October 31, 1996 Special Situation Twenty Venture Worldwide
(all numbers in thousands) Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
1997(3) 1997 1996 1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) $38 $12,093 $2,660 $(723) $(6,056) $18,212 $21,418
Net realized gain/(loss) from
investment transactions (235) 338,569 656,509 94,043 155,853 163,299 289,321
Change in unrealized net appreciation
or depreciation of investments 6,550 37,179 152,559 (236,420) 10,400 382,296 374,380
- ----------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 6,353 387,841 831,728 (143,100) 160,197 563,807 685,119
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions
to Shareholders from:
Net investment income* -- (22,661) -- -- (185) (21,409) (17,455)
Net realized gain from
investment transactions* -- (663,308) (524,809) (155,030) (218,108) (285,338) (71,145)
- ----------------------------------------------------------------------------------------------------------------------------
Net decrease from dividends
and distributions -- (685,969) (524,809) (155,030) (218,293) (306,747) (88,600)
- ----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 134,226 1,048,480 1,058,035 56,054 142,893 3,211,028 2,938,234
Reinvested dividends and distributions -- 653,112 512,051 150,172 212,018 299,515 86,150
Shares repurchased (16,337) (681,163) (935,312) (467,174) (308,700) (828,829) (958,072)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) from
capital share transactions 117,889 1,020,429 634,774 (260,948) 46,211 2,681,714 2,066,312
- ----------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 124,242 722,301 941,693 (559,078) (11,885) 2,938,774 2,662,831
Net Assets:
Beginning of period -- 3,937,444 2,995,751 1,741,316 1,753,201 4,467,185 1,804,354
- ----------------------------------------------------------------------------------------------------------------------------
End of Period $124,242 $4,659,745 $3,937,444 $1,182,238 $1,741,316 $7,405,959 $4,467,185
============================================================================================================================
Net Assets consist of:
Capital (par value and
paid-in surplus)* $117,889 $3,670,495 $2,650,066 $984,483 $1,245,431 $6,272,633 $3,590,919
Undistributed net investment
income/(distribution in excess)* 38 35,515 46,083 (723) -- 61,363 64,560
Undistributed net realized
gain/(loss) from investments* (235) 313,625 638,364 92,151 153,138 113,362 235,401
Unrealized appreciation of
investments and foreign currency 6,550 640,110 602,931 106,327 342,747 958,601 576,305
- ----------------------------------------------------------------------------------------------------------------------------
$124,242 $4,659,745 $3,937,444 $1,182,238 $1,741,316 $7,405,959 $4,467,185
============================================================================================================================
Transactions in Fund Shares:
Shares sold 13,026 34,955 36,639 1,102 2,490 91,352 90,631
Reinvested distributions -- 23,127 19,948 2,884 3,919 8,941 3,033
- ----------------------------------------------------------------------------------------------------------------------------
Total 13,026 58,082 56,587 3,986 6,409 100,293 93,664
Shares repurchased (1,548) (22,668) (32,594) (9,122) (5,399) (23,577) (29,807)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) 11,478 35,414 23,993 (5,136) 1,010 76,716 63,857
- ----------------------------------------------------------------------------------------------------------------------------
Shares outstanding
beginning of period -- 123,438 99,445 30,463 29,453 129,112 65,255
Shares outstanding
end of period 11,478 158,852 123,438 25,327 30,463 205,828 129,112
============================================================================================================================
Purchases and Sales of
Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $163,571 $2,727,259 $4,729,450 $859,573 $2,393,103 $4,290,522 $3,434,902
Proceeds from Sales of Securities 46,562 2,602,536 4,542,826 1,659,908 2,522,326 1,559,886 2,161,421
Purchases of Long-Term
U.S. Government Obligations -- -- -- -- -- --
Proceeds from Sales of Long-Term
U.S. Government Obligations -- -- -- -- -- --
============================================================================================================================
</TABLE>
(1) Period from June 28, 1996 (inception) to October 31, 1996
(2) Period from December 29, 1995 (inception) to October 31, 1996
(3) Period from December 31, 1996 (inception) to April 30, 1997
* See Note 3 in Notes to Financial Statements
An Explanation of the Statement of Changes in Net Assets
This financial statement reports the increase or decrease in the Funds' net
assets during the reporting period. Changes in the Funds' 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 Funds' 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 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 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.
See Notes to Financial Statements
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT PAGES 54 AND 55
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $26.65 $23.37 $19.62 $20.81 $18.86 $18.27
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .12 .31 .16 .17 .26 .23
Net gains or (losses) on securities
(both realized and unrealized) 1.62 4.23 3.99 (.03) 2.88 1.46
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.74 4.54 4.15 .14 3.14 1.69
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.21) (.13) (.01) (.39) (.29) (.19)
Distributions (from capital gains) (2.92) (1.13) (.39) (.94) (.90) (.91)
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (3.13) (1.26) (.40) (1.33) (1.19) (1.10)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.26 $26.65 $23.37 $19.62 $20.81 $18.86
==================================================================================================================================
Total return* 6.83% 20.31% 21.62% 0.75% 17.41% 9.35%
==================================================================================================================================
Net assets, end of period
(in thousands) $16,711,489 $15,313,180 $11,962,970 $9,647,245 $9,098,000 $4,989,299
Average net assets for the
period (in thousands) $16,279,681 $13,753,157 $10,559,806 $9,338,807 $7,335,871 $3,870,923
Ratio of gross expenses to
average net assets**(2) 0.89% 0.86% 0.87% NA NA NA
Ratio of net expenses to
average net assets**(2) 0.87% 0.85% 0.86% 0.91% 0.92% 0.97%
Ratio of net investment income
to average net assets** 1.12% 0.91% 1.25% 1.12% 1.55% 1.54%
Portfolio turnover rate** 130% 104% 118% 139% 127% 153%
Average commission per share $0.0538 $.0558 NA NA NA NA
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Balanced Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993 1992(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.20 $13.72 $12.17 $12.23 $10.64 $10.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .17 .33 .61 .27 .19 --
Net gains or (losses) on securities
(both realized and unrealized) .79 2.22 1.52 (.09) 1.56 .64
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .96 2.55 2.13 .18 1.75 .64
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.20) (.26) (.58) (.24) (.16) --
Distributions (from capital gains) (1.35) (.81) -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.55) (1.07) (.58) (.24) (.16) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.61 $15.20 $13.72 $12.17 $12.23 $10.64
==================================================================================================================================
Total return* 6.73% 19.39% 18.26% 1.51% 16.54% 6.40%
==================================================================================================================================
Net assets, end of period
(in thousands) $278,132 $207,044 $124,545 $93,546 $72,547 $2,130
Average net assets for the
period (in thousands) $243,571 $158,607 $107,259 $86,361 $43,522 $563
Ratio of gross expenses to
average net assets**(2) 1.16% 1.23% 1.35% NA NA NA
Ratio of net expenses to
average net assets**(2) 1.14% 1.21% 1.32% 1.42% 1.70% 2.50%
Ratio of net investment income/(loss)
to average net assets** 2.59% 2.35% 2.52% 2.28% 2.15% (0.12%)
Portfolio turnover rate** 101% 151% 185% 167% 131% 130%
Average commission per share $.0483 $.0428 NA NA NA NA
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Enterprise Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993 1992(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $31.19 $27.14 $24.43 $21.87 $17.09 $15.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) (.11) -- .52 (.06) .04 --
Net gains or (losses) on securities
(both realized and unrealized) (4.31) 5.85 3.09 3.18 4.76 2.09
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (4.42) 5.85 3.61 3.12 4.80 2.09
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) -- -- (.52) (.02) (.02) --
Distributions (from capital gains) (1.28) (1.80) (.38) (.54) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.28) (1.80) (.90) (.56) (.02) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.49 $31.19 $27.14 $24.43 $21.87 $17.09
==================================================================================================================================
Total return* (14.67%) 22.43% 15.46% 14.56% 28.09% 13.93%*
==================================================================================================================================
Net assets, end of period
(in thousands) $521,528 $732,003 $459,370 $370,028 $239,334 $8,320
Average net assets for the
period (in thousands) $656,565 $596,313 $407,791 $269,595 $188,345 $1,560
Ratio of gross expenses to
average net assets**(2) 1.08% 1.14% 1.26% NA NA NA
Ratio of net expenses to
average net assets**(2) 1.05% 1.12% 1.23% 1.25% 1.36% 2.50%
Ratio of net investment income/(loss)
to average net assets** (0.70%) (0.78%) 0.02% (0.32%) 0.14% (0.81%)
Portfolio turnover rate** 76% 93% 194% 193% 201% 53%
Average commission per share $.0341 $.0333 NA NA NA NA
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Fiscal period from September 1, 1992 (inception) to October 31, 1992 *Total
return not annualized for periods of less than one full year.
(2) See "Explanation of the Financial Highlights" **Annualized for periods of
less than one full year.
NA - Disclosure not applicable to prior periods
See Notes to Financial Statements
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 56
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Growth and Income Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $20.05 $18.13 $14.69 $15.24 $12.95 $12.13
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .03 .16 .11 .19 .14 .17
Net gains or (losses) on securities
(both realized and unrealized) 2.18 4.01 3.43 (.31) 2.29 .80
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.21 4.17 3.54 (.12) 2.43 .97
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.08) (.08) (.10) (.10) (.14) (.15)
Distributions (from capital gains) (1.86) (2.17) -- (.33) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.94) (2.25) (.10) (.43) (.14) (.15)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.32 $20.05 $18.13 $14.69 $15.24 $12.95
==================================================================================================================================
Total return* 11.53% 25.56% 24.20% (0.76%) 18.81% 7.98%
==================================================================================================================================
Net assets, end of period
(in thousands) $1,289,684 $1,033,183 $582,963 $489,942 $518,963 $243,509
Average net assets for the
period (in thousands) $1,185,110 $773,343 $498,442 $499,831 $404,285 $156,815
Ratio of gross expenses to
average net assets**(3) 1.01% 1.05% 1.19% NA NA NA
Ratio of net expenses to
average net assets**(3) 0.99% 1.03% 1.17% 1.22% 1.28% 1.52%
Ratio of net investment income
to average net assets** 0.45% 0.70% 1.11% 1.26% 1.13% 1.61%
Portfolio turnover rate** 148% 153% 195% 123% 138% 120%
Average commission per share $.0668 $.0520 NA NA NA NA
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Mercury Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $18.20 $17.38 $14.12 $11.70 $10.00
- -------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .02 .14 .16 .02 (.01)
Net gains or (losses) on securities
(both realized and unrealized) (.03) 2.74 3.37 2.40 1.71
- -------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.01) 2.88 3.53 2.42 1.70
- -------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.08) -- (.16) -- -
Distributions (from capital gains) (2.28) (2.06) (.11) -- -
- -------------------------------------------------------------------------------------------------------------------
Total distributions (2.36) (2.06) (.27) -- -
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.83 $18.20 $17.38 $14.12 $11.70
===================================================================================================================
Total return* (0.63%) 18.18% 25.53% 20.68% 17.00%
===================================================================================================================
Net assets, end of period
(in thousands) $1,896,423 $2,002,350 $1,520,768 $596,330 $112,725
Average net assets for the
period (in thousands) $2,045,170 $1,838,593 $1,116,377 $257,726 $67,462
Ratio of gross expenses to
average net assets**(3) 0.96% 1.02% 1.14% NA NA
Ratio of net expenses to
average net assets**(3) 0.93% 1.00% 1.12% 1.33% 1.75%
Ratio of net investment income/(loss)
to average net assets** 0.32% 0.45% 0.50% 0.25% (0.40%)
Portfolio turnover rate** 157% 177% 201% 283% 151%
Average commission per share $.0423 $.0383 NA NA NA
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Overseas Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994(2)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period 14.81 $11.58 $10.36 $10.00
- ----------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) -- .10 .12 (.02)
Net gains or (losses) on securities
(both realized and unrealized) 1.80 3.34 1.10 .38
- ----------------------------------------------------------------------------------------------------
Total from investment operations 1.80 3.44 1.22 .36
- ----------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.04) (.11) -- --
Distributions (from capital gains) (.26) (.10) -- --
- ----------------------------------------------------------------------------------------------------
Total distributions (.30) (.21) -- --
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $16.31 $14.81 $11.58 $10.36
====================================================================================================
Total return* 12.33% 30.19% 11.78% 3.60%
====================================================================================================
Net assets, end of period
(in thousands) $2,041,994 $772,630 $110,866 $64,065
Average net assets for the
period (in thousands) $1,305,716 $335,098 $77,668 $36,645
Ratio of gross expenses to
average net assets**(3) 1.07% 1.26% 1.76% NA
Ratio of net expenses to
average net assets**(3) 1.05% 1.23% 1.73% 2.16%
Ratio of net investment income/(loss)
to average net assets** 0.77% 0.73% 0.36% (0.64%)
Portfolio turnover rate** 51% 71% 188% 181%
Average commission per share $.0380 $.0234 NA NA
- ----------------------------------------------------------------------------------------------------
</TABLE>
(1) Fiscal period from May 3, 1993 (inception) to October 31, 1993 *Total
return not annualized for periods of less than one full year.
(2) Fiscal period from May 2, 1994 (inception) to October 31, 1994 **Annualized
for periods of less than one full year. (3) See "Explanation of the
Financial Highlights"
NA - Disclosure not applicable to prior periods
See Notes to Financial Statements
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 57
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Twenty Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993 1992(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $31.90 $30.12 $24.24 $25.85 $22.75 $22.17
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .03 .37 .01 .16 .17 .09
Net gains or (losses) on securities
(both realized and unrealized) 2.90 6.68 5.94 (1.07) 3.31 .49
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.93 7.05 5.95 (.91) 3.48 .58
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.18) -- (.07) (.25) (.18) --
Distributions (from capital gains) (5.32) (5.27) -- (.45) (.20) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (5.50) (5.27) (.07) (.70) (.38) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $29.33 $31.90 $30.12 $24.24 $25.85 $22.75
==================================================================================================================================
Total return* 9.85% 27.59% 24.67% (3.52%) 15.39% 2.62%
==================================================================================================================================
Net assets, end of period
(in thousands) $4,659,745 $3,937,444 $2,995,751 $2,742,812 $3,748,796 $2,434,245
Average net assets for the period
(in thousands) $4,374,744 $3,385,561 $2,716,278 $3,051,194 $3,545,727 $2,221,065
Ratio of gross expenses to
average net assets**(3) 0.94% 0.93% 1.00% NA NA NA
Ratio of net expenses to
average net assets**(3) 0.92% 0.92% 0.99% 1.02% 1.05% 1.12%
Ratio of net investment income
to average net assets** 0.56% 0.67% 0.62% 0.57% 0.87% 1.27%
Portfolio turnover rate** 124% 137% 147% 102% 99% 79%
Average commission per share $.0533 $.0571 NA NA NA NA
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Venture Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993 1992(2)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $57.16 $59.53 $52.86 $53.25 $47.74 $45.96
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) (.03) -- .05 .11 .66 .17
Net gains or (losses) on securities
(both realized and unrealized) (5.17) 5.09 9.49 4.40 6.72 1.61
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (5.20) 5.09 9.54 4.51 7.38 1.78
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) -- (.01) (.03) (.53) (1.16) --
Distributions (from capital gains) (5.28) (7.45) (2.84) (4.37) (.71) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (5.28) (7.46) (2.87) (4.90) (1.87) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $46.68 $57.16 $59.53 $52.86 $53.25 $47.74
==================================================================================================================================
Total return* (10.07%) 9.28% 19.24% 9.23% 15.76% 3.87%
==================================================================================================================================
Net assets, end of period
(in thousands) $1,182,238 $1,741,316 $1,753,201 $1,550,476 $1,836,657 $1,544,531
Average net assets for the
period (in thousands) $1,506,148 $1,822,801 $1,612,514 $1,562,521 $1,792,532 $1,496,106
Ratio of gross expenses to
average net assets**(3) 0.94% 0.89% 0.92% NA NA NA
Ratio of net expenses to
average net assets**(3) 0.91% 0.88% 0.91% 0.96% 0.97% 1.07%
Ratio of net investment income/(loss)
to average net assets** (0.10%) (0.33%) 0.29% 0.27% 1.29% 1.32%
Portfolio turnover rate** 134% 136% 113% 114% 139% 124%
Average commission per share $.0360 $.0382 NA NA NA NA
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding
during the six months ended
April 30, 1997 (unaudited) Janus Worldwide Fund
or through each fiscal year
or period ended October 31 1997 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $34.60 $27.65 $27.00 $24.16 $18.95 $17.45
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .85 .49 .81 .15 .14 .16
Net gains or (losses) on securities
(both realized and unrealized) 2.73 7.79 1.39 3.34 5.29 1.39
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.58 8.28 2.20 3.49 5.43 1.55
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (1.05) (.26) (.54) (.27) (.22) --
Distributions (from capital gains) (1.15) (1.07) (1.01) (.38) -- (.05)
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (2.20) (1.33) (1.55) (.65) (.22) (.05)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $35.98 $34.60 $27.65 $27.00 $24.16 $18.95
==================================================================================================================================
Total return* 10.81% 31.00% 8.89% 14.76% 28.79% 9.20%
==================================================================================================================================
Net assets, end of period
(in thousands) $7,405,959 $4,467,185 $1,804,354 $1,587,120 $754,608 $160,672
Average net assets for the
period (in thousands) $5,848,815 $2,953,495 $1,622,142 $1,244,194 $379,259 $79,518
Ratio of gross expenses to
average net assets**(3) 0.97% 1.02% 1.24% NA NA NA
Ratio of net expenses to
average net assets**(3) 0.95% 1.01% 1.23% 1.12% 1.32% 1.73%
Ratio of net investment income
to average net assets** 0.63% 0.73% 0.99% 0.42% 0.92% 1.74%
Portfolio turnover rate** 59% 80% 142% 158% 124% 147%
Average commission per share $.0473 $.0311 NA NA NA NA
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Fiscal period June 1, 1992 to October 31, 1992 *Total return not annualized
for periods of less than one full year.
(2) Fiscal period August 1, 1992 to October 31, 1992 **Annualized for periods
of less than one full year. (3) See "Explanation of the Financial
Highlights"
NA - Disclosure not applicable to prior periods.
See Notes to Financial Statements
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 58
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Janus
For a share outstanding Janus Janus Special
during the six months ended Equity Income Olympus Situations
April 30, 1997 (unaudited) Fund Fund Fund
or through each fiscal year
or period ended October 31 1997 1996(1) 1997 1996(2) 1997(3)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.29 $10.00 $14.86 $12.00 $10.00
- -------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .03 .07 .04 .13 --
Net gains or (losses) on securities
(both realized and unrealized) .86 1.25 .19 2.73 .82
- -------------------------------------------------------------------------------------------------------------------
Total from investment operations .89 1.32 .23 2.86 .82
- -------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.08) (.03) (0.13) -- --
Distributions (from capital gains) (.39) -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Total distributions (.47) (.03) (0.13) -- --
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.71 $11.29 $14.96 $14.86 $10.82
===================================================================================================================
Total return* 8.11% 13.20% 1.56% 23.83% 8.30%
===================================================================================================================
Net assets, end of period
(in thousands) $43,783 $30,429 $496,484 $432,375 $124,242
Average net assets for the
period (in thousands) $33,676 $21,424 $454,783 $276,006 $91,325
Ratio of gross expenses to
average net assets**(4) 1.66% 1.79% 1.09% 1.17% 1.34%
Ratio of net expenses to
average net assets**(4) 1.63% 1.71% 1.04% 1.15% 1.32%
Ratio of net investment
income to average net assets** 0.55% 3.09% 0.55% 1.64% 0.13%
Portfolio turnover rate** 161% 325% 324% 303% 140%
Average commission per share $.0457 $.0350 $.0455 $.0336 $.0423
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Fiscal period June 28, 1996 (inception) to October 31, 1996
(2) Fiscal period December 29, 1995 (inception) to October 31, 1996
(3) Fiscal period December 31, 1996 (inception) to April 30, 1997
(4) 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.
NA - Disclosure not applicable to prior periods.
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 invest-
ment income per share which is comprised of dividends and interest income earned
on securities held by the Funds. Following is the total of gains, realized and
unrealized. 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 are the Funds' expense ratios, 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.
Expense ratios prior to any expense offset are part of disclosure
requirements imposed in 1996. Years prior to 1995 do not reflect this
information.
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' portfolios.
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 amount equal to the value of the portfolio is sold in an average of
six months.
The last item in 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.
See Notes to Financial Statements
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 59
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Adjustable Rate Preferred Stock Dividend Rates are as of 4/30/97
Repurchase Agreements held by the Fund are fully collateralized and such
collateral is in the possession of the Fund's custodian. The collateral is
evaluated daily to ensure its market value exceeds the current market value of
the repurchase agreements including accrued interest.
*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, 1997:
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 4/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Fund
<S> <C> <C> <C> <C> <C> <C> <C>
AGCO Corp. 100,000 $ 2,829,202 2,470,575 $ 57,382,887 $ 8,189,132 $ 60,748 $ 23,169,769
Associates First Capital Corp.-Class A 844,100 36,176,830 -- -- -- 1,008,590 261,013,688
Computer Sciences Corp. 360,000 28,695,793 402,125 32,652,897 (4,899,731) -- 313,298,437
Cytec Industries, Inc. -- -- 77,875 2,272,774 870,541 -- 129,833,528
Federal-Mogul Corp. 217,075 4,991,532 -- -- -- 630,684 72,847,125
Ikon Office Solutions, Inc.(1) 420,350 14,764,640 6,709,575 143,849,426 51,177,762 1,231,306 23,515,625
Meredith Corp. (2) 2,093,650 52,050,185 -- -- -- 99,145 49,200,775
Parametric Technology Co. 5,807,650 271,127,645 -- -- -- -- 292,426,994
Robert Half International, Inc. 820,975 29,915,896 851,000 30,337,324 5,781,721 -- 115,788,481
Triton Energy, Ltd. 40,000 1,860,882 631,850 34,197,004 (10,860,622) -- 49,343,306
Unisource Worldwide, Inc. (3) -- -- 3,582,112 140,623,848 (64,514,511) -- --
UNUM Corp. 50,000 3,464,025 1,282,375 67,698,047 29,920,059 2,966,896 369,478,725
Wang Laboratories, Inc. -- -- -- -- -- -- 36,921,875
Young Broadcasting Corp.- Class A -- -- 373,850 12,791,220 (2,274,968) -- 24,281,950
- ------------------------------------------------------------------------------------------------------------------------------------
445,876,630 521,805,427 13,389,383 5,997,369 1,761,120,278
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Enterprise Fund
APS Holding Corp.- Class A -- -- 1,000,000 21,028,843 (9,866,018) -- --
Insignia Financial Group, Inc.-Class A -- -- 257,350 2,522,889 3,045,463 -- 21,746,375
Petco Animal Supplies, Inc. (4) -- -- 6,350 187,160 (15,513) -- 24,346,766
PizzaExpress PLC -- -- 1,168,196 7,269,065 4,116,021 76,609 41,771,115
PriCellular Corp.- Class A -- -- 155,550 1,219,533 297,886 -- 9,999,533
Trigen Energy Corp. -- -- 216,675 4,444,313 1,168,236 60,240 19,093,547
Wetherspoon (J.D.) PLC -- -- 9,414 94,112 86,074 133,197 36,919,476
- ------------------------------------------------------------------------------------------------------------------------------------
-- 36,765,915 (1,167,851) 270,046 153,876,812
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Growth and Income Fund
Dime Community Bancorp, Inc. -- -- -- -- -- -- 14,150,000
M.D.C. Holdings, Inc. 1,003,000 8,793,100 -- -- -- 12,750 9,281,250
- ------------------------------------------------------------------------------------------------------------------------------------
8,793,100 -- -- 12,750 23,431,250
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Mercury Fund
Abercrombie & Fitch Co.- Class A 191,500 3,679,108 97,400 2,096,615 (835,323) -- 4,944,713
IntelliQuest Information Group, I 138,275 3,245,750 132,600 3,647,499 (1,260,779) -- 6,150,219
- ------------------------------------------------------------------------------------------------------------------------------------
6,924,858 5,744,114 (2,096,102) -- 11,094,932
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Overseas Fund
Koninklijke Ahrend N.V 448,248 25,928,052 -- -- -- -- 27,151,108
Medical Invest Svenska A.B. - Cla 317,217 12,037,829 -- -- -- -- 10,310,420
- ------------------------------------------------------------------------------------------------------------------------------------
37,965,881 -- -- -- 37,461,528
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Twenty Fund
Danka Business Systems PLC (ADR) 40,150 1,761,906 407,700 17,605,262 (5,635,673) 340,888 82,858,758
UAL Corp. 326,400 20,522,278 525,900 27,246,725 13,808,581 -- 340,198,688
- ------------------------------------------------------------------------------------------------------------------------------------
22,284,184 44,851,987 8,172,908 340,888 423,057,446
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 60
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 4/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Venture Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Analysts International Corp. -- -- 840,000 $ 6,898,275 $ 13,444,579 $ 74,943 --
APS Holding Corp. - Class A -- -- 1,057,500 21,009,469 (12,137,011) -- --
Biopsys Medical, Inc. 80,000 $ 2,140,195 299,700 5,880,837 2,065,204 -- $ 5,535,000
Coinmach Laundry Corp. 72,400 1,354,053 600,000 9,061,260 1,181,211 -- --
CommNet Cellular, Inc. -- -- 800,000 21,471,749 (149,777) -- --
Community Financial Corp. 193,025 2,979,936 -- -- -- -- 2,750,606
Computer Learning Centers, Inc. (5) 22,500 401,550 175,000 3,754,154 1,117,834 -- 10,650,000
Culligan Water Technologies, Inc. 247,200 9,299,311 1,007,900 36,544,741 2,330,515 -- 11,240,625
Dayton Superior Corp. 2,800 33,306 302,800 4,010,219 (909,757) -- --
DepoTech Corp. -- -- 130,000 3,464,036 (1,504,214) -- 6,873,750
Educational Medical, Inc. 35,000 377,188 120,500 1,241,455 31,815 -- 4,288,250
Eurobike A.G 70,202 1,769,110 213,576 4,970,734 697,337 -- 3,023,253
Family Golf Centers, Inc. 114,925 3,481,138 686,025 19,095,545 (2,646,514) -- --
Gildemeister Italiana S.p.A -- -- 2,277,688 8,253,259 (1,304,388) -- --
J. P. Foodservice, Inc. 1,236,800 28,075,449 1,527,225 33,265,882 7,651,556 -- 17,787,734
Labor Ready, Inc. 216,000 3,170,868 695,175 11,715,926 (5,752,961) -- --
Littelfuse, Inc. 57,000 2,535,503 398,925 11,814,265 6,898,467 -- 10,175,000
Medallion Financial Corp. 58,125 833,959 319,600 4,286,990 935,536 172,970 2,313,713
Minerals Technologies, Inc. -- -- 1,232,845 33,347,122 11,924,875 54,162 --
O'Reilly Automotive, Inc. 50,000 1,755,352 742,500 23,556,204 (255,805) -- --
Papa John's International, Inc. (6) 248,012 7,965,582 1,388,932 29,607,513 7,979,222 -- 11,917,744
Premier Parks, Inc. 122,675 3,794,078 471,900 12,379,853 2,356,770 -- 10,966,434
PriCellular Corp. - Class A -- -- 1,539,543 13,262,386 56,204 -- --
ProSource, Inc. 350,000 4,823,750 80,000 1,120,000 (274,974) -- 2,396,250
Recycling Industries, Inc. -- -- 1,354,000 5,585,250 (4,123,455) -- --
Styling Technology Corp. 250,000 2,571,880 250,000 2,571,880 241,776 -- --
Wisconsin Central Transportation Corp. -- -- 2,418,225 16,743,901 72,240,725 -- 29,795,131
- ------------------------------------------------------------------------------------------------------------------------------------
77,362,208 344,912,905 102,094,770 302,075 129,713,490
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Worldwide Fund
Amer Group, Ltd. 533,612 11,071,308 -- -- -- -- 21,174,419
Assa-Abloy A.B. - Class B 1,298,727 22,617,994 -- -- -- -- 81,418,884
CanWest Global Communications Corp. -- -- -- -- -- 90,002 11,695,434
Group Axime 249,087 27,320,008 54,660 3,947,139 3,041,281 -- 66,092,516
Indian Hotels Co., Ltd. -- -- -- -- -- -- 7,502,004
JBA Holdings PLC -- -- -- -- -- -- 36,097,280
Kinnevik A.B. - Class B -- -- 754,233 15,410,679 4,826,688 -- 45,850,444
NTT Data Corp. 530 13,545,507 -- -- -- 137,675 73,872,575
Securitas A.B. - Class B -- -- 3,149 33,052 50,609 1,115,347 87,150,735
Tomra Systems A.S.A 723,146 13,869,297 -- -- -- 84,752 38,799,185
- ------------------------------------------------------------------------------------------------------------------------------------
88,424,114 19,390,870 7,918,578 1,427,776 469,653,476
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Name change from Alco Standard Corp. effective 1/27/97
(2) Adjusted for 2 for 1 stock split 3/18/97
(3) Spin-off from Alco Standard Corp. on a 1 for 2 basis 1/2/97
(4) Merged with Pet Food Warehouse, Inc. at a ratio of .2174 to 1 effective
1/2/97
(5) Adjusted for 3 for 2 stock split 4/15/97
(6) Adjusted for 3 for 2 stock split 11/25/96
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 61
<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. Twelve 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, Janus
Olympus and Janus Twenty Funds, which are non-diversified. Janus Special
Situations Fund began operations on December 31, 1996. Organization costs were
borne by Janus Capital Corp. (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. Certain dividends from
foreign securities will be recorded as soon as the Trust is informed of the
dividend if such information is obtained subsequent to the ex-dividend date.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums. Gains and losses are determined on the identified cost
basis, which is the same basis used for federal income tax purposes.
Forward 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 from foreign currency transactions.
Forward currency contracts held by the Funds are fully collateralized by
other securities which are denoted in the accompanying schedule of investments.
Such collateral is in the possession of the Fund's custodian. The collateral is
evaluated daily to ensure its market value equals or exceeds the current market
value of the corresponding forward currency contracts.
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.
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, Janus Equity Income and Janus Growth and
Income Funds are declared and distributed quarterly and capital gains (if any)
are distributed annually. The remaining nine 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 invest-ment
income and realized gains and otherwise comply with the Internal Revenue Code
applicable to regulated investment companies.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 62
<PAGE>
NOTES TO FINANCIAL STATEMENTS
2. Investment Advisory Agreement and Other Transactions with Affiliates
The advisory agreement with the Funds spells out the expenses that the
Funds must pay for the period ended April 30, 1997. Each of the Funds was
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
- ---------------------------------------------------------
Effective July 1, 1997 Janus Capital will reduce the advisory fee on the
first $30 million of average daily net assets from 1.00% to .75%.
Janus Service Corporation (Janus Service), a wholly owned subsidiary of
Janus Capital, receives an annual fee of 0.16% of average net assets per fund,
plus $4.00 per shareholder account (excluding Janus and Venture Funds) for
transfer agent services plus reimbursement of certain out of pocket expenses
(primarily postage and telephone charges).
Officers and certain trustees of the Funds are also officers and/or
directors of Janus Capital; however, they receive no compensation from the
Funds.
DST Systems, Inc. (DST), an affiliate of Janus Capital through a degree of
common ownership, provides fund accounting and shareholder accounting systems to
the Funds. DST Securities Inc., a wholly owned subsidiary of DST, is designated
as an introductory broker on certain portfolio transactions. Brokerage
commissions paid to DST Securities, Inc. serve to reduce transfer agent fees and
expenses. Brokerage commissions paid, fees reduced, and the net fees paid to DST
for the year or period ended April 30, 1997, are noted below.
DST Securities, Inc. Fund
Commissions Expense
Paid* Reduction* DST Fees
- --------------------------------------------------------------------------------
Janus Fund $526,890 $395,168 $988,891
- --------------------------------------------------------------------------------
Janus Balanced Fund 1,431 1,073 47,653
- --------------------------------------------------------------------------------
Janus Enterprise Fund 28,611 21,458 143,760
- --------------------------------------------------------------------------------
Janus Equity Income Fund 458 344 13,515
- --------------------------------------------------------------------------------
Janus Growth and Income Fund 53,232 39,924 147,503
- --------------------------------------------------------------------------------
Janus Mercury Fund 34,700 26,025 398,683
- --------------------------------------------------------------------------------
Janus Olympus Fund 94 70 96,470
- --------------------------------------------------------------------------------
Janus Overseas Fund 6,985 5,239 119,509
- --------------------------------------------------------------------------------
Janus Special Situations Fund 1,651 1,239 11,867
- --------------------------------------------------------------------------------
Janus Twenty Fund 99,142 74,356 501,288
- --------------------------------------------------------------------------------
Janus Venture Fund 44,681 33,511 185,862
- --------------------------------------------------------------------------------
Janus Worldwide Fund 108,687 81,515 421,025
- --------------------------------------------------------------------------------
* The difference between commissions paid to DST Securities, Inc. and
expenses reduced constituted commissions paid to an unaffiliated clearing
broker.
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The funds have elected to treat gains and losses on forward currency contracts
as capital gains and losses. Other 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.
The net capital loss carryover noted below, as of October 31, 1996, is available
to offset future realized capital gains and thereby reduce future taxable gains
distributions, until October 31, 2004. 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, 1997, are as follows:
<TABLE>
<CAPTION>
at October 31, 1996 at April 30, 1997
------------------- --------------------------------------------------------------------
Net
Net Capital Loss Federal Tax Unrealized Unrealized Appreciation/
Carryovers Cost Appreciation (Depreciation) (Depreciation)
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Janus Fund -- $13,900,961,922 $ 2,893,404,508 ($ 231,281,206) $ 2,662,123,302
- -------------------------------------------------------------------------------------------------------------------------
Janus Balanced Fund -- 259,129,729 24,311,225 (5,046,788) 19,264,437
- -------------------------------------------------------------------------------------------------------------------------
Janus Enterprise Fund -- 427,620,438 112,874,355 (17,506,489) 95,367,866
- -------------------------------------------------------------------------------------------------------------------------
Janus Equity Income Fund -- 42,432,246 3,417,809 (1,020,187) 2,397,622
- -------------------------------------------------------------------------------------------------------------------------
Janus Growth and Income Fund -- 1,087,779,388 229,639,137 (9,846,859) 219,792,278
- -------------------------------------------------------------------------------------------------------------------------
Janus Mercury Fund -- 1,932,233,537 156,447,726 (101,225,164) 55,222,562
- -------------------------------------------------------------------------------------------------------------------------
Janus Olympus Fund $ (7,767,016) 469,390,977 56,397,446 (2,263,619) 54,133,827
- -------------------------------------------------------------------------------------------------------------------------
Janus Overseas Fund -- 1,927,875,894 200,375,958 (42,706,471) 157,669,487
- -------------------------------------------------------------------------------------------------------------------------
Janus Special Situations Fund -- 117,996,985 9,489,037 (3,043,883) 6,445,154
- -------------------------------------------------------------------------------------------------------------------------
Janus Twenty Fund -- 3,937,629,103 741,409,079 (102,511,635) 638,897,444
- -------------------------------------------------------------------------------------------------------------------------
Janus Venture Fund -- 1,052,834,126 140,165,880 (34,750,000) 105,415,880
- -------------------------------------------------------------------------------------------------------------------------
Janus Worldwide Fund -- 6,667,507,575 1,030,035,121 (152,083,868) 877,951,253
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 64
<PAGE>
THIS SPACE AVAILABLE FOR YOUR NOTES AND COMPUTATIONS
JANUS EQUITY FUNDS APRIL 30, 1997 SEMIANNUAL REPORT 65
<PAGE>
