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[JANUS LOGO]
Janus Global Life Sciences Fund
Janus Global Technology Fund
PROSPECTUS
NOVEMBER 24, 1998
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR
DISAPPROVED OF THESE SECURITIES OR PASSED ON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
<PAGE>
TABLE OF CONTENTS
RISK/RETURN SUMMARY
Janus Global Life Sciences Fund..................................... page 1
Janus Global Technology Fund........................................ page 3
Performance Information............................................. page 5
Fees and Expenses................................................... page 5
INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT STRATEGIES
AND RISKS
Investment Objective................................................ page 6
Principal Investment Strategies..................................... page 6
General Portfolio Policies.......................................... page 8
Risks............................................................... page 11
SHAREHOLDER'S MANUAL
Minimum Investments................................................. page 18
Types of Account Ownership.......................................... page 18
How to Open Your Janus Account...................................... page 20
How to Purchase Shares.............................................. page 21
How to Exchange Shares.............................................. page 23
How to Redeem Shares................................................ page 24
Shareholder Services and Account Policies........................... page 28
MANAGEMENT OF THE FUNDS
Investment Adviser.................................................. page 32
Portfolio Managers.................................................. page 32
OTHER INFORMATION
Size of the Funds................................................... page 34
Year 2000........................................................... page 34
DISTRIBUTIONS AND TAXES
Distributions....................................................... page 35
Taxes............................................................... page 36
GLOSSARY
Glossary of Investment Terms........................................ page 38
<PAGE>
RISK/RETURN SUMMARY
JANUS GLOBAL LIFE SCIENCES FUND
1. WHAT IS THE INVESTMENT OBJECTIVE OF JANUS GLOBAL LIFE SCIENCES FUND?
The Fund seeks long-term growth of capital.
2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS GLOBAL LIFE SCIENCES FUND?
The Fund invests primarily in equity securities of foreign and U.S. companies
selected for their growth potential. Under normal circumstances, it invests at
least 65% of its total assets in securities of companies that the portfolio
manager believes have a life science orientation and at least 25% of its total
assets, in the aggregate, in the following industry groups: health care;
pharmaceuticals; agriculture; cosmetics/personal care; and biotechnology.
The portfolio manager applies a "bottom up" approach in choosing investments. In
other words, he looks for companies with earnings growth potential one at a
time. If the portfolio manager is unable to find investments with earnings
growth potential, a significant portion of the Fund's assets may be in cash or
similar investments.
3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS GLOBAL LIFE SCIENCES FUND?
The biggest risk of investing in this Fund is that its returns may vary and you
could lose money. If you're considering investing in the Fund, keep in mind that
it is designed for long-term investors who can accept the risks of investing in
a portfolio with significant common stock holdings and concentrated exposure to
related industry groups.
The value of the Fund's portfolio may decrease if the value of an individual
company in the portfolio goes down. The value of the Fund's portfolio could also
decrease if the stock market goes down. If this occurs, the Fund's net asset
value (NAV) may also decrease. The Fund concentrates its investments in related
industry groups. Because of this, companies in its portfolio may share common
characteristics and react similarly to market developments. For example, many
companies with a life science orientation are highly regulated and may be
dependent upon certain types of technology. As a result, changes in government
funding or subsidies, new or anticipated legislative changes, or technological
advances could affect the value of such companies and, therefore, the Fund's
NAV. The Fund's returns may be more volatile than those of a less concentrated
portfolio. The Fund may have significant exposure to foreign markets. As a
result, its returns and NAV may be affected to a large degree by fluctuations in
currency exchange rates or political or economic conditions in a particular
country.
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The Fund is nondiversified. In other words, it may hold larger positions in a
smaller number of securities than a diversified fund. As a result, a single
security's increase or decrease in value may have a greater impact on the Fund's
share price.
An investment in this Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.
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JANUS GLOBAL TECHNOLOGY FUND
1. WHAT IS THE INVESTMENT OBJECTIVE OF JANUS GLOBAL TECHNOLOGY FUND?
The Fund seeks long-term growth of capital.
2. WHAT ARE THE MAIN INVESTMENT STRATEGIES OF JANUS GLOBAL TECHNOLOGY FUND?
The Fund invests primarily in equity securities of foreign and U.S. companies
selected for their growth potential. Under normal circumstances, it invests at
least 65% of its total assets in securities of companies that the portfolio
manager believes will benefit significantly from advances or improvements in
technology. These companies generally fall into two categories:
a. Companies that the portfolio manager believes have or will develop products,
processes or services that will provide significant technological
advancements or improvements; and
b. Companies that the portfolio manager believes rely extensively on technology
in connection with their operations or services.
The portfolio manager applies a "bottom up" approach in choosing investments. In
other words, he looks for companies with earnings growth potential one at a
time. If the portfolio manager is unable to find investments with earnings
growth potential, a significant portion of the Fund's assets may be in cash or
similar investments.
3. WHAT ARE THE MAIN RISKS OF INVESTING IN JANUS GLOBAL TECHNOLOGY FUND?
The biggest risk of investing in this Fund is that its returns may vary and you
could lose money. If you're considering investing in the Fund, keep in mind that
it is designed for long-term investors who can accept the risks of investing in
a portfolio with significant common stock holdings and exposure to a relatively
volatile market segment.
The value of the Fund's portfolio may decrease if the value of an individual
company in the portfolio goes down. The value of the Fund's portfolio could also
decrease if the stock market goes down. If this occurs, the Fund's NAV may also
decrease. Although the Fund does not concentrate its investments in specific
industries, it may invest in companies related in such a way that they react
similarly to certain market pressures. For example, competition among technology
companies may result in increasingly aggressive pricing of their products and
services,
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which may affect the profitability of companies in the Fund's portfolio. In
addition, because of the rapid pace of technological development, products or
services developed by companies in the Fund's portfolio may become rapidly
obsolete or have relatively short product cycles. As a result, the Fund's
returns may be considerably more volatile than the returns of a fund that does
not invest in similarly related companies. The Fund may have significant
exposure to foreign markets. As a result, its returns and NAV may be affected to
a large degree by fluctuations in currency exchange rates or political economic
conditions in a particular country.
The Fund is nondiversified. In other words, it may hold larger positions in a
smaller number of securities than a diversified fund. As a result, a single
security's increase or decrease in value may have a greater impact on the Fund's
share price.
An investment in this Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.
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PERFORMANCE INFORMATION
Although past performance of a fund is no guarantee of how it will perform in
the future, historical performance may give you some indication of the risk of
investing in the fund because it demonstrates how its returns have varied over
time. These Funds are recently organized and have a limited performance history.
FEES AND EXPENSES
SHAREHOLDER FEES, such as sales loads, redemption fees or exchange fees, are
charged directly to an investor's account. All Janus funds are no-load
investments, so you will not pay any shareholder fees when you buy or sell
shares of the Funds.
ANNUAL FUND OPERATING EXPENSES are paid out of a Fund's assets and include fees
for portfolio management, maintenance of shareholder accounts, shareholder
servicing, accounting and other services. You do not pay these fees directly
but, as the example below shows, these costs are borne indirectly by
shareholders.
THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY
AND HOLD SHARES OF THE FUNDS.
<TABLE>
<CAPTION>
MANAGEMENT TOTAL ANNUAL FUND
FEE OTHER OPERATING EXPENSES
EXPENSES(1)
<S> <C> <C> <C>
Janus Global Life Sciences
Fund 0.75% 0.50%() 1.25%
Janus Global Technology Fund 0.75% 0.50%() 1.25%
-------------------------------------
</TABLE>
(1) "Other Expenses" are based on the estimated expenses that the Funds
expect to incur in their initial fiscal year.
- ------------------------------------------------------------------------------
Example
This example is intended to help you compare the cost of investing in the
Funds with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in each of the Funds for the time periods
indicated then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and
that the Funds' operating expenses remain the same. Although your actual
costs may be higher or lower, based on these assumptions your costs would
be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
<S> <C> <C>
---------------------------
Janus Global Life Sciences Fund $127 $397
Janus Global Technology Fund $127 $397
</TABLE>
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INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT
STRATEGIES AND RISKS
This section takes a closer look at the investment objective of each of the
Funds, their principal investment strategies and certain risks of investing in
the Funds. Strategies and policies that are noted as "fundamental" cannot be
changed without a shareholder vote.
Please carefully review the "Risks" section of this Prospectus on pages 11-15
for a discussion of risks associated with certain investment techniques. We've
also included a Glossary with descriptions of investment terms used throughout
this Prospectus.
INVESTMENT OBJECTIVE
The investment objective of each Fund is long-term growth of capital. The Funds'
Trustees may change this objective without a shareholder vote and the Funds will
notify you of any changes that are material. If there is a material change in a
Fund's objective or policies, you should consider whether that Fund remains an
appropriate investment for you. There is no guarantee that either Fund will meet
its objective.
PRINCIPAL INVESTMENT STRATEGIES
JANUS GLOBAL LIFE SCIENCES FUND
Under normal circumstances, Janus Global Life Sciences Fund pursues its
objective by investing at least 65% of its total assets in securities of
companies that the portfolio manager believes have a life science orientation.
As a fundamental policy, the Fund normally invests at least 25% of its total
assets, in the aggregate, in the following industry groups: health care;
pharmaceuticals; agriculture; cosmetics/personal care; and biotechnology.
JANUS GLOBAL TECHNOLOGY FUND
Under normal circumstances, Janus Global Technology Fund pursues its objective
by investing at least 65% of its total assets in securities of companies that
the portfolio manager believes will benefit significantly
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from advances or improvements in technology. These companies generally fall into
two categories:
a. Companies that the portfolio manager believes have or will develop products,
processes or services that will provide significant technological
advancements or improvements; and
b. Companies that the portfolio manager believes rely extensively on technology
in connection with their operations or services.
THE FOLLOWING QUESTIONS ARE DESIGNED TO HELP YOU BETTER UNDERSTAND THE FUNDS'
PRINCIPAL INVESTMENT STRATEGIES.
1. HOW ARE COMMON STOCKS SELECTED?
Each of the Funds may invest substantially all of its assets in common stocks if
its portfolio manager believes that common stocks will appreciate in value. The
portfolio managers generally take a "bottom up" approach to selecting companies.
In other words, they seek to identify individual companies with earnings growth
potential that may not be recognized by the market at large. They make this
assessment by looking at companies one at a time, regardless of size, country of
organization, place of principal business activity, or other similar selection
criteria. Realization of income is not a significant investment consideration
and any income realized on the Funds' investments will be incidental to their
objectives.
2. ARE THE SAME CRITERIA USED TO SELECT FOREIGN SECURITIES?
Generally, yes. The portfolio managers seek companies that meet their selection
criteria, regardless of where a company is located. Foreign securities are
generally selected on a stock-by-stock basis without regard to any defined
allocation among countries or geographic regions. However, certain factors such
as expected levels of inflation, government policies influencing business
conditions, the outlook for currency relationships, and prospects for economic
growth among countries, regions or geographic areas may warrant greater
consideration in selecting foreign securities. There are no limitations on the
countries in which the Funds may invest and the Funds may at times have
significant foreign exposure.
3. WHAT DOES "LIFE SCIENCE ORIENTATION" MEAN?
Generally speaking, the "life sciences" relate to maintaining or improving
quality of life. So, for example, companies with a "life science
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orientation" include companies engaged in research, development, production or
distribution of products or services related to health and personal care,
medicine or pharmaceuticals. Life science oriented companies also include
companies that the portfolio manager believes have growth potential primarily as
a result of particular products, technology, patents or other market advantages
in the life sciences. Life sciences encompass a variety of industries, including
health care, nutrition, personal hygiene, medical diagnostics, nuclear and
biochemical research and development and health care facilities ownership and
operation.
4. HOW DOES JANUS GLOBAL TECHNOLOGY FUND'S INDUSTRY POLICY DIFFER FROM THAT OF
JANUS GLOBAL LIFE SCIENCES FUND?
Unlike Janus Global Life Sciences Fund, Janus Global Technology Fund will not
concentrate its investments in any particular industry or group of related
industries. As a result, its portfolio manager may have more flexibility to find
companies that he believes will benefit from advances or improvements in
technology in a number of industries. Nevertheless, the Fund may hold a
significant portion of its assets in industries such as: aerospace/defense;
biotechnology; computers; office/business equipment; semiconductors; software;
telecommunications; and telecommunications equipment.
GENERAL PORTFOLIO POLICIES
Unless otherwise stated, each of the following policies applies to each of the
Funds. The percentage limitations included in these policies and elsewhere in
this Prospectus apply at the time of purchase of the security. So, for example,
if a Fund exceeds a limit as a result of market fluctuations or the sale of
securities, it will not be required to dispose of any securities.
CASH POSITION
When a Fund's portfolio manager believes that market conditions are unfavorable
for profitable investing, or when he is otherwise unable to locate attractive
investment opportunities, the Fund's investments may be hedged to a greater
degree and/or its cash or similar investments may increase. In other words, the
Funds do not always stay fully invested in stocks. Cash and similar investments
generally are a residual - they represent the assets that remain after a
portfolio manager has committed available assets to desirable investment
opportunities. However, a portfolio
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manager may also temporarily increase a Fund's cash position to protect its
assets or maintain liquidity. Partly because the portfolio managers act
independently of each other, the cash positions of the Funds may vary
significantly. When a Fund's investments in cash or similar investments
increase, it may not participate in market advances or declines to the same
extent that it would if the Fund remained more fully invested in stocks.
OTHER TYPES OF INVESTMENTS
The Funds invest primarily in a global portfolio of equity securities, which may
include preferred stocks, common stocks, warrants and securities convertible
into common or preferred stocks, but they may also invest to a lesser degree in
other types of securities. These securities (which are described in the
Glossary) may include:
- - debt securities;
- - indexed/structured securities;
- - high-yield/high-risk debt securities (less than 35% of each Fund's assets);
- - options, futures and other types of derivatives for hedging purposes or for
non-hedging purposes such as seeking to enhance return; and
- - securities purchased on a when-issued, delayed delivery or forward commitment
basis.
ILLIQUID INVESTMENTS
Each Fund may invest up to 15% of its net assets in illiquid investments. An
illiquid investment is a security or other position that cannot be disposed of
quickly in the normal course of business. For example, some securities are not
registered under U.S. securities laws and cannot be sold to the U.S. public
because of SEC regulations (these are known as "restricted securities"). Under
procedures adopted by the Funds' Trustees, certain restricted securities may be
deemed liquid, and will not be counted toward this 15% limit.
FOREIGN SECURITIES
The Funds may invest without limit in foreign equity and debt securities. The
Funds may invest directly in foreign securities denominated in a foreign
currency and not publicly traded in the United States. Other ways of investing
in foreign securities include depositary receipts or shares, and passive foreign
investment companies.
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SPECIAL SITUATIONS
The Funds may invest in special situations from time to time. A special
situation arises when, in the opinion of a Fund's portfolio manager, the
securities of a particular issuer will be recognized and appreciate in value due
to a specific development with respect to that issuer. Developments creating a
special situation might include, among others, a new product or process, a
technological breakthrough, a management change or other extraordinary corporate
event, or differences in market supply of and demand for the security.
Investment in "special situations" may carry risk of loss to a Fund's
performance in the event that the anticipated development does not occur or does
not attract the expected attention.
PORTFOLIO TURNOVER
The Funds generally intend to purchase securities for long-term investment
although, to a limited extent, a Fund may purchase securities in anticipation of
relatively short-term price gains. Short-term transactions may also result from
liquidity needs, securities having reached a price or yield objective, changes
in interest rates or the credit standing of an issuer, or by reason of economic
or other developments not foreseen at the time of the investment decision. A
Fund may also sell one security and simultaneously purchase the same or a
comparable security to take advantage of short-term differentials in bond yields
or securities prices. Changes are made in a Fund's portfolio whenever its
portfolio manager believes such changes are desirable. Portfolio turnover rates
are generally not a factor in making buy and sell decisions.
Janus Global Technology Fund may invest in companies with relatively short
product cycles, for example, 6 to 9 months. Consequently, its portfolio turnover
may be more frequent than other growth funds. Increased portfolio turnover may
result in higher costs for brokerage commissions, dealer mark-ups and other
transaction costs and may also result in taxable capital gains. Higher costs
associated with increased portfolio turnover may offset gains in a Fund's
performance.
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RISKS
Because the Funds may invest substantially all of their assets in common stocks,
the main risk is the risk that the value of the stocks they hold might decrease
in response to the activities of an individual company or in response to general
market and/or economic conditions. If this occurs, a Fund's share price may also
decrease. The Funds' performance may also be affected by industry risk and risks
specific to certain types of investments, such as foreign securities, derivative
investments, non-investment grade debt securities or companies with relatively
small market capitalizations.
THE FOLLOWING QUESTIONS ARE DESIGNED TO HELP YOU BETTER UNDERSTAND SOME OF THE
RISKS OF INVESTING IN THE FUNDS.
1. WHAT IS "INDUSTRY RISK"?
Industry risk is the possibility that a group of related stocks will decline in
price due to industry-specific developments. Companies in the same or similar
industries may share common characteristics and are more likely to react
similarly to industry-specific market or economic developments. In the life
sciences, for example, many companies are subject to government regulation and
approval of their products and services, which may affect their price or
availability. In addition, the products and services offered by these companies
may quickly become obsolete in the face of scientific or technological
developments. The economic outlook of such companies may fluctuate dramatically
due to changes in regulatory or competitive environments. In technology-related
industries, competitive pressures may have a significant effect on the
performance of companies in which Janus Global Technology Fund may invest. In
addition, technology and technology-related companies often progress at an
accelerated rate, and these companies may be subject to short product cycles and
aggressive pricing which may increase their volatility.
Janus Global Life Sciences Fund invests in a concentrated portfolio, which may
result in greater exposure to related industries. As a result, the Fund may be
more volatile than a less concentrated portfolio. Although Janus Global
Technology Fund does not "concentrate" in a specific group of industries, it may
at times have significant exposure to companies in a variety of
technology-related industries.
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2. THE FUNDS MAY INVEST IN SMALLER OR NEWER COMPANIES. DOES THIS CREATE ANY
SPECIAL RISKS?
Particularly in the area of technology, many attractive investment opportunities
may be smaller, start-up companies offering emerging products or services.
Smaller or newer companies may suffer more significant losses as well as realize
more substantial growth than larger or more established issuers because they may
lack depth of management, be unable to generate funds necessary for growth or
potential development, or be developing or marketing new products or services
for which markets are not yet established and may never become established. In
addition, such companies may be insignificant factors in their industries and
may become subject to intense competition from larger or more established
companies. Securities of smaller or newer companies may have more limited
trading markets than the markets for securities of larger or more established
issuers, and may be subject to wide price fluctuations. Investments in such
companies tend to be more volatile and somewhat more speculative.
3. HOW DOES THE NONDIVERSIFIED STATUS OF THE FUNDS AFFECT THEIR RISK?
Diversification is a means of reducing risk by investing in a broad range of
stocks or other securities. A "nondiversified" fund has the ability to take
larger positions in a smaller number of issuers. Because the appreciation or
depreciation of a single stock may have a greater impact on the NAV of a
nondiversified fund, its share price can be expected to fluctuate more than a
comparable diversified fund. This fluctuation, if significant, may affect the
performance of a Fund.
4. I'VE HEARD A LOT ABOUT HOW THE CHANGE TO THE YEAR 2000 COULD AFFECT COMPUTER
SYSTEMS. DOES THIS CREATE ANY SPECIAL RISKS?
The portfolio managers carefully research each potential investment before
making an investment decision and, among other things, consider Year 2000
readiness when selecting portfolio holdings. However, there is no guarantee that
the information a portfolio manager receives regarding a company's Year 2000
readiness is completely accurate. If a company is not compliant with Year 2000
issues, the Fund's performance could suffer.
5. HOW COULD THE FUNDS' INVESTMENTS IN FOREIGN SECURITIES AFFECT THEIR
PERFORMANCE?
The Funds may invest without limit in foreign securities either indirectly
(e.g., depositary receipts) or directly in foreign markets. Investments in
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foreign securities, including those of foreign governments, may involve greater
risks than investing in domestic securities, because the Funds' performance may
depend on issues other than the performance of a particular company. These
issues include:
- - CURRENCY RISK. As long as a Fund holds a foreign security, its value will be
affected by the value of the local currency relative to the U.S. dollar. When
a Fund sells a foreign denominated security, its value may be worth less in
U.S. dollars even if the security increases in value in its home country. U.S.
dollar denominated securities of foreign issuers may also be affected by
currency risk.
- - POLITICAL AND ECONOMIC RISK. Foreign investments may be subject to heightened
political and economic risks, particularly in emerging markets which may have
relatively unstable governments, immature economic structures, national
policies restricting investments by foreigners, different legal systems, and
economies based on only a few industries. In some countries, there is the risk
that the government may take over the assets or operations of a company or
that the government may impose taxes or limits on the removal of a Fund's
assets from that country.
- - REGULATORY RISK. There may be less government supervision of foreign markets.
As a result, foreign issuers may not be subject to the uniform accounting,
auditing and financial reporting standards and practices applicable to
domestic issuers and there may be less publicly available information about
foreign issuers.
- - MARKET RISK. Foreign securities markets, particularly those of emerging market
countries, may be less liquid and more volatile than domestic markets. Certain
markets may require payment for securities before delivery and delays may be
encountered in settling securities transactions. In some foreign markets,
there may not be protection against failure by other parties to complete
transactions.
- - TRANSACTION COSTS. Transaction costs of buying and selling foreign securities,
including brokerage, tax and custody costs, are generally higher than those
involved in domestic transactions.
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6. ARE THERE SPECIAL RISKS ASSOCIATED WITH INVESTMENTS IN HIGH-YIELD/HIGH-RISK
SECURITIES?
High-yield/high-risk securities (or "junk" bonds) are debt securities rated
below investment grade by the primary rating agencies such as Standard & Poor's
Ratings Services and Moody's Investors Service, Inc. The value of lower quality
securities generally is more dependent on credit risk, or the ability of the
issuer to meet interest and principal payments, than investment grade debt
securities. Issuers of high-yield securities may not be as strong financially as
those issuing bonds with higher credit ratings and are more vulnerable to real
or perceived economic changes, political changes or adverse developments
specific to the issuer.
Please refer to the SAI for a description of bond rating categories.
7. HOW DO THE FUNDS TRY TO REDUCE RISK?
The Funds may use futures, options and other derivative instruments to "hedge"
or protect their portfolios from adverse movements in securities prices and
interest rates. The Funds may also use a variety of currency hedging techniques,
including forward currency contracts, to manage exchange rate risk. The Funds
believe the use of these instruments will benefit the Funds, however, a Fund's
performance could be worse than if the Fund had not used such instruments if a
portfolio manager's judgement proves incorrect. Risks inherent in the use of
derivative instruments include:
- - the risk that interest rates, securities prices and currency markets will not
move in the direction that the portfolio manager anticipates;
- - an imperfect correlation between the price of derivative instruments and
movements in the prices of the securities, interest rates or currencies being
hedged;
- - the fact that skills needed to use these strategies are different from those
needed to select portfolio securities;
- - inability to close out certain hedged positions to avoid adverse tax
consequences;
- - the possible absence of a liquid secondary market for any particular
instrument and possible exchange-imposed price fluctuation limits, either of
which may make it difficult or impossible to close out a position when
desired;
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- - leverage risk, that is, the risk that adverse price movements in an instrument
can result in a loss substantially greater than a Fund's initial investment in
that instrument (in some cases, the potential loss is unlimited); and
- - particularly in the case of privately-negotiated instruments, the risk that
the counterparty will fail to perform its obligations, which could leave a
Fund worse off than if it had not entered into the position.
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Shareholder's Manual
This section will help you become familiar with
the different types of accounts you can establish
with Janus. It also explains in detail the wide
array of services and features you can establish
on your account, as well as account policies and
fees that may apply to your account. Account
policies (including fees), services and features
may be modified or discontinued without
shareholder approval or prior notice.
[LOGO]
<PAGE>
MINIMUM INVESTMENTS*
<TABLE>
<S> <C>
TO OPEN A NEW ACCOUNT $2,500
TO OPEN A NEW RETIREMENT, EDUCATION OR UGMA/UTMA
ACCOUNT $ 500
TO OPEN A NEW ACCOUNT WITH AN AUTOMATIC INVESTMENT
PROGRAM $ 500**
TO ADD TO ANY TYPE OF AN ACCOUNT $ 100+
</TABLE>
------------------
* THE FUNDS RESERVE THE RIGHT TO CHANGE THE AMOUNT OF THESE MINIMUMS FROM
TIME TO TIME OR TO WAIVE THEM IN WHOLE OR IN PART FOR CERTAIN TYPES OF
ACCOUNTS.
** AN AUTOMATIC INVESTMENT PROGRAM REQUIRES A $100 MINIMUM AUTOMATIC
INVESTMENT PER MONTH UNTIL THE ACCOUNT BALANCE REACHES $2,500.
+ THE MINIMUM SUBSEQUENT INVESTMENT FOR IRA OR UGMA/UTMA ACCOUNTS IS $50.
HOW TO GET IN TOUCH WITH JANUS
If you have any questions while reading this Prospectus, please call one
of our Investor Service Representatives at 1-800-525-3713 Monday-Friday:
8:00 a.m.-8:00 p.m., and Saturday: 10:00 a.m.-4:00 p.m., New York time.
The Quick Address and Telephone Reference below includes other ways to get
in touch with Janus.
QUICK ADDRESS AND TELEPHONE REFERENCE
<TABLE>
<S> <C>
MAILING ADDRESS JANUS XPRESS
JANUS LINE(TM) 1-888-979-7737
P.O. BOX 173375 FOR 24-HOUR ACCESS TO ACCOUNT
DENVER, CO 80217-3375 AND FUND INFORMATION,
EXCHANGES AND PURCHASES,
FOR OVERNIGHT CARRIER AUTOMATED DAILY QUOTES ON
JANUS FUND SHARE PRICES, YIELDS AND
SUITE 101 TOTAL RETURNS.
3773 CHERRY CREEK NORTH DRIVE
DENVER, CO 80209-3811 TDD 1-800-525-0056
A TELECOMMUNICATIONS DEVICE
JANUS INTERNET ADDRESS FOR OUR HEARING- AND
JANUS.COM SPEECH-IMPAIRED SHAREHOLDERS.
JANUS LITERATURE
LINE 1-800-525-8983
TO REQUEST A PROSPECTUS,
SHAREHOLDER REPORTS OR
MARKETING MATERIALS.
</TABLE>
TYPES OF ACCOUNT OWNERSHIP
If you are investing for the first time, you will need to establish an account.
You can establish the following types of accounts by completing a New Account
Application. To request an application, call 1-800-525-3713.
- - INDIVIDUAL OR JOINT OWNERSHIP. Individual accounts are owned by one person.
Joint accounts have two or more owners.
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- - A GIFT OR TRANSFER TO MINOR (UGMA OR UTMA). An UGMA/UTMA account is a
custodial account managed for the benefit of a minor. To open an UGMA or UTMA
account, you must include the minor's Social Security number on the
application.
- - TRUST. An established trust can open an account. The names of each trustee,
the name of the trust and the date of the trust agreement must be included on
the application.
- - BUSINESS ACCOUNTS. Corporations and partnerships may also open an account. The
application must be signed by an authorized officer of the corporation or a
general partner of the partnership.
TAX-DEFERRED ACCOUNTS
If you are eligible, you may set up one or more tax-deferred accounts. A
tax-deferred account allows you to shelter your investment income and capital
gains from current income taxes. A contribution to certain of these plans may
also be tax deductible. Tax-deferred accounts include retirement plans and the
Education IRA. Distributions from these plans are generally subject to income
tax and may be subject to an additional tax if withdrawn prior to age 59 1/2 or
used for a nonqualifying purpose. Investors should consult their tax adviser or
legal counsel before selecting a tax-deferred account.
Investors Fiduciary Trust Company serves as custodian for the tax-deferred
accounts offered by the Funds. You will be charged an annual account maintenance
fee of $12 for each Fund account, up to a maximum of $24 for two or more Fund
accounts registered under the same taxpayer identification number. Each Janus
fund you own under your IRA account number is considered a separate "Fund
account." You may pay the fee by check or have it automatically deducted from
your account (usually in December). The Funds reserve the right to change the
amount of this fee or to waive it in whole or in part for certain types of
accounts.
The following plans require a special application. For an application and more
details about our Retirement Plans, call 1-800-525-3713.
- - REGULAR AND ROTH INDIVIDUAL RETIREMENT ACCOUNTS: Both types of IRAs allow most
individuals with earned income to contribute up to the lesser of $2,000
($4,000 for most married couples) or 100% of
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compensation annually. Please refer to the Janus IRA booklet for more complete
information regarding the different types of IRAs.
- - EDUCATION IRA: This plan allows individuals, subject to certain income
limitations, to contribute up to $500 annually on behalf of any child under
the age of 18. Please refer to the Janus IRA booklet for more complete
information regarding the Education IRA.
- - SIMPLIFIED EMPLOYEE PENSION PLAN: This plan allows small business owners
(including sole proprietors) to make tax-deductible contributions for
themselves and any eligible employee(s). A SEP requires an IRA (a SEP-IRA) to
be set up for each SEP participant.
- - PROFIT SHARING OR MONEY PURCHASE PENSION PLAN: These plans are open to
corporations, partnerships and sole proprietors to benefit their employees and
themselves.
- - SECTION 403(B)(7) PLAN: Employees of educational organizations or other
qualifying, tax-exempt organizations may be eligible to participate in a
Section 403(b)(7) Plan.
HOW TO OPEN YOUR JANUS ACCOUNT
Complete and sign the appropriate application. Please be sure to provide your
Social Security or taxpayer identification number on the application and make
your check payable to Janus. The Funds are available only to U.S. citizens or
residents, and your application will be returned if you do not meet these
criteria. Send all items to one of the following addresses:
For Overnight Carrier
- ---------------------
Janus
Suite 101
3773 Cherry Creek North Drive
Denver, CO 80209-3811
For All Other Inquiries
- -----------------------
Janus
P.O. Box 173375
Denver, CO 80217-3375
INVESTOR SERVICE CENTERS
Janus offers two Investor Service Centers for those individuals who would like
to conduct their investing in person. Our representatives will be happy to
assist you at either of the following locations Monday-Friday
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7:00 a.m. to 6:00 p.m. Mountain time and Saturday 9:00 a.m. to 1:00 p.m.
Mountain time:
100 Fillmore Street, Suite 100
Denver, CO 80206
3773 Cherry Creek North Drive, Suite 101
Denver, CO 80209
HOW TO PURCHASE SHARES
PAYING FOR SHARES
When you purchase shares, your request will be processed at the next NAV
calculated after your order is received and accepted. Please note the following:
- - Cash, credit cards, third party checks and credit card checks will not be
accepted.
- - All purchases must be made in U.S. dollars.
- - Checks must be drawn on a U.S. bank and made payable to Janus.
- - If a check does not clear your bank, the Funds reserve the right to cancel the
purchase.
- - If the Funds are unable to debit your predesignated bank account on the day of
purchase, they may make additional attempts or cancel the purchase.
- - The Funds reserve the right to reject any specific purchase request.
If your purchase is cancelled, you will be responsible for any losses or fees
imposed by your bank and losses that may be incurred as a result of any decline
in the value of the cancelled purchase. The Funds (or their agents) have the
authority to redeem shares in your account(s) to cover any such losses due to
fluctuations in share price. Any profit on such cancellation will accrue to the
Funds.
ONCE YOU HAVE OPENED YOUR JANUS ACCOUNT, THE MINIMUM AMOUNT FOR AN ADDITIONAL
INVESTMENT IS $100 ($50 FOR IRAS OR UGMA/UTMA ACCOUNTS). You may add to your
account at any time through any of the following options:
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BY MAIL
Complete the remittance slip attached at the bottom of your confirmation
statement. If you are making a purchase into a retirement account, please
indicate whether the purchase is a rollover or a current or prior year
contribution. Send your check and remittance slip or written instructions to one
of the addresses listed previously. You may also request a booklet of remittance
slips for non-retirement accounts.
BY TELEPHONE
This service allows you to purchase additional shares quickly and conveniently
through an electronic transfer of money. To purchase shares by telephone, call
an Investor Service Representative at 1-800-525-3713 during normal business
hours or call the Janus Xpress Line, 1-888-979-7737, for access to this option
24 hours a day. When you make an additional purchase by telephone, Janus will
automatically debit your predesignated bank account for the desired amount. To
establish the telephone purchase option on your new account, complete the
"Telephone Purchase of Shares Option" section on the application and attach a
"voided" check or deposit slip from your bank account. If your account is
already established, call 1-800-525-3713 to request the appropriate form. This
option will become effective ten days after the form is received.
BY WIRE
Purchases may also be made by wiring money from your bank account to your Janus
account. Call 1-800-525-3713 to receive wiring instructions.
BY WEB
You must pre-establish the "Telephone Purchase of Shares Option" to make a
purchase on our Web site at janus.com.
AUTOMATIC INVESTMENT PROGRAMS
Janus offers several automatic investment programs to help investors achieve
their financial goals as simply and conveniently as possible. You may open a new
account with a $500 initial purchase and $100 automatic subsequent investments.
- - AUTOMATIC MONTHLY INVESTMENT PROGRAM
You select the day each month that your money ($100 minimum) will be
electronically transferred from your bank account to your Fund account. To
establish this option, complete the "Automatic Monthly Investment
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Program" section on the application and attach a "voided" check or deposit
slip from your bank account. If your Fund account is already established, call
1-800-525-3713 to request the appropriate form.
- - PAYROLL DEDUCTION
If your employer can initiate an automatic payroll deduction, you may have all
or a portion of your paycheck ($100 minimum) invested directly into your Fund
account. To obtain information on establishing this option, call
1-800-525-3713.
- - SYSTEMATIC EXCHANGE
With a Systematic Exchange you determine the amount of money ($100 minimum)
you would like automatically exchanged from one Janus account to another on
any day of the month. For more information on how to establish this option,
call 1-800-525-3713.
HOW TO EXCHANGE SHARES
On any business day, you may exchange all or a portion of your shares into any
other available Janus fund.
IN WRITING
To request an exchange in writing, please follow the instructions for written
requests on page 26.
BY TELEPHONE
All accounts are automatically eligible for the telephone exchange option. To
exchange shares by telephone, call an Investor Service Representative at
1-800-525-3713 during normal business hours or call the Janus Xpress Line,
1-888-979-7737, for access to this option 24 hours a day.
BY SYSTEMATIC EXCHANGE
As noted above, you may establish a Systematic Exchange for as little as $100
per month on established accounts. You may establish a new account with a $500
initial purchase and subsequent $100 systematic exchanges. If the balance in the
account you are exchanging from falls below the systematic exchange amount, all
remaining shares will be exchanged and the program will be discontinued.
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BY WEB
Exchanges may also be made on our Web site at janus.com.
EXCHANGE POLICIES
- - Except for Systematic Exchanges, new accounts established by exchange must be
opened with $2,500 or the total account value if the value of the account you
are exchanging from is less than $2,500.
- - Exchanges between existing accounts must meet the $100 subsequent investment
requirement.
- - You may make four exchanges out of each Fund during a calendar year (exclusive
of Systematic Exchanges). Exchanges in excess of this limit may be subject to
an exchange fee or may result in termination of the exchange privilege.
- - The Funds reserve the right to reject any exchange request and to modify or
terminate the exchange privilege at any time. For example, the Funds may
reject exchanges from accounts engaged in or known to engage in trading in
excess of the limit above (including market timing transactions).
- - Exchanges between accounts will be accepted only if the registrations are
identical.
- - If the shares you are exchanging are held in certificate form, you must return
the certificate to your Fund prior to making any exchanges.
- - Be sure that you read the prospectus for the fund into which you are
exchanging.
- - An exchange represents the sale of shares from one fund and the purchase of
shares of another fund, which may produce a taxable gain or loss in a non-tax
deferred account.
HOW TO REDEEM SHARES
On any business day, you may redeem all or a portion of your shares. If the
shares are held in certificate form, the certificate must be returned with or
before your redemption request. Your transaction will be processed at the next
NAV calculated after your order is received and accepted.
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IN WRITING
To request a redemption in writing, please follow the instructions for written
requests noted on page 26.
BY TELEPHONE
Most accounts have the telephone redemption option, unless this option was
specifically declined on the application or in writing. This option enables you
to request redemptions daily from your account by calling 1-800-525-3713 by the
close of the regular trading session of the New York Stock Exchange ("NYSE")
normally 4:00 p.m. New York time. You may also use Janus Xpress Line,
1-888-979-7737, for access to this option 24 hours a day. Redemption requests
received through Janus Xpress Line will be processed at the NAV next calculated
after receipt and acceptance of the request. (There is a daily limit of $100,000
per account for redemptions payable by check).
BY WEB
Redemptions may also be made on our Web site at janus.com.
SYSTEMATIC REDEMPTION OPTION
The Systematic Redemption Option allows you to redeem a specific dollar amount
from your account on a regular basis. For more information or to request the
appropriate form, please call 1-800-525-3713.
PAYMENT OF REDEMPTION PROCEEDS
- - BY CHECK
Redemption proceeds will be sent to the shareholder(s) of record at the
address of record within seven days after receipt of a valid redemption
request.
- - BY ELECTRONIC TRANSFER
If you have established the electronic redemption option, your redemption
proceeds can be electronically transferred to your predesignated bank account
on the next bank business day after receipt of your redemption request (wire
transfer) or the second bank business day after receipt of your redemption
request (ACH transfer). Wire transfers will be charged an $8 fee per wire and
your bank may charge an additional fee to receive the wire. ACH transfers are
made free of charge. Wire redemptions are not available for retirement
accounts.
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If you would like to establish the electronic redemption option on an existing
account, please call 1-800-525-3713 to request the appropriate form.
IF THE SHARES BEING REDEEMED WERE PURCHASED BY CHECK, TELEPHONE, ON OUR WEB
SITE, OR THROUGH THE AUTOMATIC MONTHLY INVESTMENT PROGRAM, THE FUNDS MAY DELAY
THE PAYMENT OF YOUR REDEMPTION PROCEEDS FOR UP TO 15 DAYS FROM THE DAY OF
PURCHASE TO ALLOW THE PURCHASE TO CLEAR. Unless you provide alternate
instructions, your proceeds will be invested in Janus Money Market
Fund - Investor Shares during the 15 day hold period.
WRITTEN INSTRUCTIONS
To redeem or exchange all or part of your shares in writing, your request should
be sent to one of the addresses listed on page 20 and must include the following
information:
- - the name of the Fund(s),
- - the account number(s),
- - the amount of money or number of shares being redeemed,
- - the name(s) on the account,
- - the signature(s) of all registered account owners, and
- - your daytime telephone number.
SIGNATURE REQUIREMENTS BASED ON ACCOUNT TYPE
- - Individual, Joint Tenants, Tenants in Common: Written instructions must
be signed by each shareholder, exactly as the names appear in the account
registration.
- - UGMA or UTMA: Written instructions must be signed by the custodian
in his/her capacity as it appears in the account registration.
- - Sole Proprietor, General Partner: Written instructions must be signed
by an authorized individual in his/her capacity as it appears on the account
registration.
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- - Corporation, Association: Written instructions must be signed by the
person(s) authorized to act on the account. In addition, a certified copy of
the corporate resolution authorizing the signer to act must accompany the
request.
- - Trust: Written instructions must be signed by the trustee(s). If the
name(s) of the current trustee(s) does not appear in the account registration,
a certificate of incumbency dated within 60 days must also be submitted.
- - IRA: Written instructions must be signed by the account owner. If you
do not want federal income tax withheld from your redemption, you must state
that you elect not to have such withholding apply. In addition, your
instructions must state whether the distribution is normal (after age 59 1/2)
or premature (before age 59 1/2) and, if premature, whether any exceptions
such as death or disability apply with regard to the 10% additional tax on
early distributions.
SIGNATURE GUARANTEE
In addition to the signature requirements, A SIGNATURE GUARANTEE IS ALSO
REQUIRED if any of the following is applicable:
- - You request a redemption that exceeds $100,000.
- - You would like the check made payable to anyone other than the shareholder(s)
of record.
- - You would like the check mailed to an address which has been changed within 10
days of the redemption request.
- - You would like the check mailed to an address other than the address of
record.
THE FUNDS RESERVE THE RIGHT TO REQUIRE A SIGNATURE GUARANTEE UNDER OTHER
CIRCUMSTANCES OR TO REJECT OR DELAY A REDEMPTION ON CERTAIN LEGAL GROUNDS. FOR
MORE INFORMATION PERTAINING TO SIGNATURE GUARANTEES, PLEASE CALL 1-800-525-3713.
HOW TO OBTAIN A SIGNATURE GUARANTEE
A signature guarantee assures that a signature is genuine. The signature
guarantee protects shareholders from unauthorized account transfers. The
following financial institutions may guarantee signatures: banks, savings and
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loan associations, trust companies, credit unions, broker-dealers and member
firms of a national securities exchange. Call your financial institution to see
if they have the ability to guarantee a signature. A signature guarantee may not
be provided by a notary public.
If you live outside the United States, a foreign bank properly authorized to do
business in your country of residence or a U.S. consulate may be able to
authenticate your signature.
PRICING OF FUND SHARES
All purchases, redemptions and exchanges will be processed at the NAV next
calculated after your request is received and accepted by a Fund (or a Fund's
agent or authorized designee). A Fund's NAV is calculated at the close of the
regular trading session of the NYSE (normally 4:00 p.m. New York time) each day
that the NYSE is open. The NAV of Fund shares is not determined on days the NYSE
is closed (generally, New Year's Day, Martin Luther King Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and
Christmas). In order to receive a day's price, your order must be received by
the close of the regular trading session of the NYSE. Securities are valued at
market value or, if a market quotation is not readily available, at their fair
value determined in good faith under procedures established by and under the
supervision of the Trustees. Short-term instruments maturing within 60 days are
valued at amortized cost, which approximates market value. See the SAI for more
detailed information.
SHAREHOLDER SERVICES AND ACCOUNT POLICIES
JANUS XPRESS LINE(TM)
Janus Xpress Line, our electronic telephone service, offers you 24-hour access
by TouchTone(TM) telephone to obtain information on account balances, Fund
performance or dividends. You can also make exchanges, purchases, redemptions
and electronic transfers in existing accounts, request literature about any
Janus fund, or order duplicate statements. Janus Xpress Line is accessed by
calling 1-888-979-7737. Calls are limited to five minutes.
JANUS WEB SITE
Janus maintains a Web site located at janus.com. You can purchase, exchange and
redeem shares and access information such as your account
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balance and the Funds' NAVs through the Web site. In order to engage in
transactions on our Web site, you must authorize us to transmit account
information online and accept online instructions (see janus.com and follow the
procedures accordingly). You may also need to have bank account information,
wire instructions or other options established on your account. The Funds and
their agents will not be responsible for any losses resulting from unauthorized
transactions on our Web site when procedures designed for engaging in such
transactions are followed. In addition, you may request and/or download a
prospectus for any Janus fund.
ACCOUNT MINIMUMS
Due to the proportionately higher costs of maintaining small accounts, Janus
reserves the right to deduct a $10 minimum balance fee (or the value of the
account if less than $10) from accounts with values below the minimums described
on page 18 or close such accounts. This policy will apply to accounts
participating in the Automatic Monthly Investment Program only if your account
balance does not reach the required minimum initial investment or falls below
such minimum and you have discontinued monthly investments. This policy does not
apply to accounts that fall below the minimums solely as a result of market
value fluctuations. It is expected that, for purposes of this policy, accounts
will be valued in September, and the $10 fee will be assessed on the second
Friday of September of each year. You will receive notice before we charge the
$10 fee or close your account so that you may increase your account balance to
the required minimum.
TRANSACTIONS THROUGH PROCESSING ORGANIZATIONS
You may purchase or sell Fund shares through a broker-dealer, bank or other
financial institution, or an organization that provides recordkeeping and
consulting services to 401(k) plans or other employee benefit plans (a
"Processing Organization"). Processing Organizations may charge you a fee for
this service and may require different minimum initial and subsequent
investments than the Funds. Processing Organizations may also impose other
charges or restrictions different from those applicable to shareholders who
invest in the Funds directly. A Processing Organization, rather than its
customer, may be the shareholder of record of your shares. The Funds are not
responsible for the failure of any Processing Organization to carry out its
obligations to its customers. Certain Processing Organizations may receive
compensation from Janus Capital or
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<PAGE>
its affiliates and certain Processing Organizations may receive compensation
from the Funds for shareholder recordkeeping and similar services.
TAXPAYER IDENTIFICATION NUMBER
On the application or other appropriate form, you will be asked to certify that
your Social Security or taxpayer identification number is correct and that you
are not subject to backup withholding for failing to report income to the IRS.
If you are subject to the 31% backup withholding or you did not certify your
taxpayer identification number, the IRS requires the Funds to withhold 31% of
any dividends paid and redemption or exchange proceeds. In addition to the 31%
backup withholding, you may be subject to a $50 fee to reimburse the Funds for
any penalty that the IRS may impose.
SHARE CERTIFICATES
Most shareholders choose not to hold their shares in certificate form because
account transactions such as exchanges and redemptions cannot be completed until
the certificate has been returned to the Funds. The Funds will issue share
certificates upon written request only. Share certificates will not be issued
until the shares have been held for at least 15 days and will not be issued for
accounts that do not meet the minimum investment requirements. Share
certificates cannot be issued for retirement accounts. In addition, if the
certificate is lost, there may be a replacement charge.
INVOLUNTARY REDEMPTION
The Funds reserve the right to close an account if the shareholder is deemed to
engage in activities which are illegal or otherwise believed to be detrimental
to the Funds.
TELEPHONE TRANSACTIONS
You may initiate many transactions by telephone. The Funds and their agents will
not be responsible for any losses resulting from unauthorized transactions when
procedures designed to verify the identity of the caller are followed.
It may be difficult to reach an Investor Service Representative by telephone
during periods of unusual market activity. If you are unable to reach a
representative by telephone, please consider sending written instructions,
stopping by a Service Center, or, in the case of purchases, exchanges,
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redemptions and electronic transfers, calling the Janus Xpress Line or visiting
our Web site.
TEMPORARY SUSPENSION OF SERVICES
The Funds or their agents may, in case of emergency, temporarily suspend
telephone transactions and other shareholder services.
ADDRESS CHANGES
To change the address on your account, call 1-800-525-3713 or send a written
request signed by all account owners. Include the name of your Fund(s), the
account number(s), the name(s) on the account and both the old and new
addresses. Certain options may be suspended for 10 days following an address
change unless a signature guarantee is provided.
REGISTRATION CHANGES
To change the name on an account, the shares are generally transferred to a new
account. In some cases, legal documentation may be required. For more
information call 1-800-525-3713.
STATEMENTS AND REPORTS
Investors participating in an automatic investment program will receive
quarterly confirmations of all transactions. (Dividend information will be
distributed annually.) In addition, the Funds will send you an immediate
transaction confirmation statement after every non-systematic transaction.
The Funds produce financial reports, which include a list of each of the Fund's
portfolio holdings, semiannually and update their prospectus annually. To reduce
expenses, the Funds may choose to mail only one report or prospectus to your
household, even if more than one person in the household has a Fund account.
Please call 1-800-525-3713 if you would like to receive additional reports or
prospectuses.
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MANAGEMENT OF THE FUNDS
INVESTMENT ADVISER
Janus Capital Corporation, 100 Fillmore Street, Denver, Colorado 80206-4928, is
the investment adviser to the Funds and is responsible for the day-to-day
management of their investment portfolios and other business affairs.
Janus Capital began serving as investment adviser to Janus Fund at its inception
in 1970 and currently serves as investment adviser to all of the Janus funds, as
well as adviser or subadviser to other mutual funds and individual, corporate,
charitable and retirement accounts.
Janus Capital furnishes continuous advice and recommendations concerning the
Funds' investments. Janus Capital also furnishes certain administrative,
compliance and accounting services for the Funds, and may be reimbursed by the
Funds for its costs in providing those services. In addition, Janus Capital
employees serve as officers of the Trust and Janus Capital provides office space
for the Funds and pays the salaries, fees and expenses of all Fund officers and
those Trustees who are affiliated with Janus Capital.
The Funds pay Janus Capital a management fee which is calculated daily and paid
monthly. The advisory agreement with the Funds spells out the management fee and
other expenses that the Funds must pay. The Funds' management fee schedule is
set out below.
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS OF FUNDS ANNUAL RATE PERCENTAGE (%)
- ------------------------------------------------------------------------------
<S> <C>
FIRST $300 MILLION 0.75
NEXT $200 MILLION 0.70
OVER $500 MILLION 0.65
- ------------------------------------------------------------------------------
</TABLE>
PORTFOLIO MANAGERS
C. MIKE LU is Executive Vice President and portfolio manager of Janus Global
Technology Fund, which he has managed since inception. He joined Janus in 1991
as a research analyst and has consistently focused on companies in the
technology industry. Mr. Lu has a Bachelor of Arts in History and a Bachelor of
Arts in Economics from Yale University. He is a Chartered Financial Analyst.
THOMAS R. MALLEY is Executive Vice President and portfolio manager of Janus
Global Life Sciences Fund, which he has managed since inception. He joined Janus
in 1991 as a research analyst and has focused on
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companies in the health care, pharmaceutical and biotechnology industries. Mr.
Malley has a Bachelor of Science in Biology from Stanford University. He is a
Chartered Financial Analyst.
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OTHER INFORMATION
SIZE OF THE FUNDS
Although there is no present intention to do so, the Funds may discontinue sales
of their shares if management believes that continued sales may adversely affect
a Fund's ability to achieve its investment objective. If sales of a Fund are
discontinued, it is expected that existing shareholders of that Fund would be
permitted to continue to purchase shares and to reinvest any dividends or
capital gains distributions, absent highly unusual circumstances.
YEAR 2000
Preparing for Year 2000 is a high priority for Janus Capital, which has
established a dedicated group to address this issue. Janus Capital has entered
into a consulting arrangement with one of the foremost experts in Year 2000
compliance to help Janus Capital successfully achieve Year 2000 compliance.
Janus Capital does not anticipate that the move to Year 2000 will have a
material impact on its ability to continue to provide the Funds with service at
current levels; however, Janus Capital cannot make any assurances that the steps
it has taken to ensure Year 2000 compliance will be successful. In addition,
there can be no assurance that Year 2000 issues will not affect the companies in
which the Funds invest or worldwide markets and economies.
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DISTRIBUTIONS AND TAXES
DISTRIBUTIONS
TO AVOID TAXATION, THE INTERNAL REVENUE CODE REQUIRES EACH FUND TO DISTRIBUTE
NET INCOME AND ANY NET CAPITAL GAINS REALIZED ON ITS INVESTMENTS ANNUALLY. A
FUND'S INCOME FROM DIVIDENDS AND INTEREST AND ANY NET REALIZED SHORT-TERM
CAPITAL GAINS ARE PAID TO SHAREHOLDERS AS ORDINARY INCOME DIVIDENDS. NET
REALIZED LONG-TERM GAINS ARE PAID TO SHAREHOLDERS AS CAPITAL GAINS
DISTRIBUTIONS. DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS ARE NORMALLY DECLARED
AND PAID IN DECEMBER.
HOW DISTRIBUTIONS AFFECT A FUND'S NAV
Distributions are paid to shareholders as of the record date of the distribution
of a Fund, regardless of how long the shares have been held. Dividends and
capital gains awaiting distribution are included in each Fund's daily NAV. The
share price of a Fund drops by the amount of the distribution, net of any
subsequent market fluctuations. As an example, assume that on December 31, Janus
Global Life Sciences Fund declared a dividend in the amount of $0.25 per share.
If Janus Global Life Sciences Fund's share price was $10.00 on December 30, the
Fund's share price on December 31 would be $9.75, barring market fluctuations.
Shareholders should be aware that distributions from a taxable mutual fund are
not value-enhancing and may create income tax obligations.
"BUYING A DIVIDEND"
If you purchase shares of a Fund just before the distribution, you will pay the
full price for the shares and receive a portion of the purchase price back as a
taxable distribution. This is referred to as "buying a dividend." In the above
example, if you bought shares on December 30, you would have paid $10.00 per
share. On December 31, the Fund would pay you $0.25 per share as a dividend and
your shares would now be worth $9.75 per share. Unless your account is set up as
a tax-deferred account, dividends paid to you would be included in your gross
income for tax purposes, even though you may not have participated in the
increase in NAV of the Fund, whether or not you reinvested the dividends.
DISTRIBUTION OPTIONS
When you open an account, you must specify on your application how you want to
receive your distributions. You may change your distribution
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<PAGE>
option at any time by writing the Funds at one of the addresses on page 20 or
calling 1-800-525-3713. The Funds offer the following options:
1. REINVESTMENT OPTION. You may reinvest your income dividends and capital gains
distributions in additional shares. This option is assigned automatically if
no other choice is made.
2. CASH OPTION. You may receive your income dividends and capital gains
distributions in cash.
3. REINVEST AND CASH OPTION. You may receive either your income dividends or
capital gains distributions in cash and reinvest the other in additional
shares.
4. REDIRECT OPTION. You may direct your dividends or capital gains to purchase
shares of another Janus fund.
The Funds reserve the right to reinvest into your account undeliverable and
uncashed dividend and distribution checks that remain outstanding for six months
in shares of the applicable Fund at the NAV next computed after the check is
cancelled. Subsequent distributions may also be reinvested.
TAXES
As with any investment, you should consider the tax consequences of investing in
the Funds. Any time you sell or exchange shares of a Fund in a taxable account,
it is considered a taxable event. Depending on the purchase price and the sale
price, you may have a gain or a loss on the transaction. Any tax liabilities
generated by your transactions are your responsibility.
The following discussion does not apply to tax-deferred accounts, nor is it a
complete analysis of the federal tax implications of investing in the Funds. You
may wish to consult your own tax adviser. Additionally, state or local taxes may
apply to your investment, depending upon the laws of your state of residence.
TAXES ON DISTRIBUTIONS
Dividends and distributions of the Funds are subject to federal income tax,
regardless of whether the distribution is made in cash or reinvested in
additional shares of a Fund. Distributions may be taxable at different rates
depending on the length of time a Fund holds a security. In certain states,
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a portion of the dividends and distributions (depending on the sources of a
Fund's income) may be exempt from state and local taxes. Information regarding
the tax status of income dividends and capital gains distributions will be
mailed to shareholders on or before January 31st of each year. Account tax
information will also be sent to the IRS.
TAXATION OF THE FUND
Dividends, interest and some capital gains received by the Funds on foreign
securities may be subject to tax withholding or other foreign taxes. The Funds
may from year to year make the election permitted under section 853 of the
Internal Revenue Code to pass through such taxes to shareholders as a foreign
tax credit. If such election is not made, any foreign taxes paid or accrued will
represent an expense to the Funds which will reduce their investment income.
The Funds do not expect to pay any federal income or excise taxes because they
intend to meet certain requirements of the Internal Revenue Code. It is
important that the Funds meet these requirements so that any earnings on your
investment will not be taxed twice.
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GLOSSARY OF INVESTMENT TERMS
This glossary provides a more detailed description of some of the types of
securities and other instruments in which the Funds may invest. The Funds may
invest in these instruments to the extent permitted by their investment
objectives and policies. The Funds are not limited by this discussion and may
invest in any other types of instruments not precluded by the policies discussed
elsewhere in this Prospectus. Please refer to the SAI for a more detailed
discussion of certain instruments.
I. EQUITY AND DEBT SECURITIES
BONDS are debt securities issued by a company, municipality, government or
government agency. The issuer of a bond is required to pay the holder the amount
of the loan (or par value of the bond) at a specified maturity and to make
scheduled interest payments.
COMMERCIAL PAPER is a short-term debt obligation with a maturity ranging from 1
to 270 days issued by banks, corporations and other borrowers to investors
seeking to invest idle cash. The Funds may purchase commercial paper issued in
private placements under Section 4(2) of the Securities Act of 1933.
COMMON STOCKS are equity securities representing shares of ownership in a
company, and usually carry voting rights and earns dividends. Unlike preferred
stock, dividends on common stock are not fixed but are declared at the
discretion of the issuer's board of directors.
CONVERTIBLE SECURITIES are preferred stocks or bonds that pay a fixed dividend
or interest payment and are convertible into common stock at a specified price
or conversion ratio.
DEBT SECURITIES are securities representing money borrowed that must be repaid
at a later date. Such securities have specific maturities and usually a specific
rate of interest or an original purchase discount.
DEPOSITARY RECEIPTS are receipts for shares of a foreign-based corporation that
entitle the holder to dividends and capital gains on the underlying security.
Receipts include those issued by domestic banks (American Depositary Receipts),
foreign banks (Global or European Depositary Receipts) and broker-dealers
(depositary shares).
FIXED-INCOME SECURITIES are securities that pay a specified rate of return. The
term generally includes short- and long-term government, corporate and municipal
obligations that pay a specified rate of interest or
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coupons for a specified period of time and preferred stock, which pays fixed
dividends. Coupon and dividend rates may be fixed for the life of the issue or,
in the case of adjustable and floating rate securities, for a shorter period.
HIGH-YIELD/HIGH-RISK SECURITIES are securities that are rated below investment
grade by the primary rating agencies (e.g., BB or lower by Standard & Poor's and
Ba or lower by Moody's). Other terms commonly used to describe such securities
include "lower rated bonds," "noninvestment grade bonds" and "junk bonds."
MORTGAGE- AND ASSET-BACKED SECURITIES are shares in a pool of mortgages or other
debt. These securities are generally pass-through securities, which means that
principal and interest payments on the underlying securities (less servicing
fees) are passed through to shareholders on a pro rata basis. These securities
involve prepayment risk, which is the risk that the underlying mortgages or
other debt may be refinanced or paid off prior to their maturities during
periods of declining interest rates. In that case, the portfolio manager may
have to reinvest the proceeds from the securities at a lower rate. Potential
market gains on a security subject to prepayment risk may be more limited than
potential market gains on a comparable security that is not subject to
prepayment risk.
PASSIVE FOREIGN INVESTMENT COMPANIES ("PFICS") are any foreign corporations
which generate certain amounts of passive income or hold certain amounts of
assets for the production of passive income. Passive income includes dividends,
interest, royalties, rents and annuities. To avoid taxes and interest that the
Funds must pay if these investments are profitable, the Funds may make various
elections permitted by the tax laws. These elections could require that the
Funds recognize taxable income, which in turn must be distributed, before the
securities are sold and before cash is received to pay distributions.
PREFERRED STOCKS are equity securities that generally pay dividends at a
specified rate and have preference over common stock in the payment of dividends
and liquidation. Preferred stock generally does not carry voting rights.
REPURCHASE AGREEMENTS involve the purchase of a security by a Fund and a
simultaneous agreement by the seller (generally a bank or dealer) to repurchase
the security from the Fund at a specified date or upon demand.
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This technique offers a method of earning income on idle cash. These securities
involve the risk that the seller will fail to repurchase the security, as
agreed. In that case, a Fund will bear the risk of market value fluctuations
until the security can be sold and may encounter delays and incur costs in
liquidating the security.
REVERSE REPURCHASE AGREEMENTS involve the sale of a security by a Fund to
another party (generally a bank or dealer) in return for cash and an agreement
by the Fund to buy the security back at a specified price and time. This
technique will be used primarily to provide cash to satisfy unusually heavy
redemption requests, or for other temporary or emergency purposes.
U.S. GOVERNMENT SECURITIES include direct obligations of the U.S. government
that are supported by its full faith and credit. Treasury bills have initial
maturities of less than one year, Treasury notes have initial maturities of one
to ten years and Treasury bonds may be issued with any maturity but generally
have maturities of at least ten years. U.S. government securities also include
indirect obligations of the U.S. government that are issued by federal agencies
and government sponsored entities. Unlike Treasury securities, agency securities
generally are not backed by the full faith and credit of the U.S. government.
Some agency securities are supported by the right of the issuer to borrow from
the Treasury, others are supported by the discretionary authority of the U.S.
government to purchase the agency's obligations and others are supported only by
the credit of the sponsoring agency.
WARRANTS are securities, typically issued with preferred stocks or bonds, that
give the holder the right to buy a proportionate amount of common stock at a
specified price, usually at a price that is higher than the market price at the
time of issuance of the warrant. The right may last for a period of years or
indefinitely.
WHEN-ISSUED, DELAYED DELIVERY AND FORWARD TRANSACTIONS generally involve the
purchase of a security with payment and delivery at some time in the
future - i.e., beyond normal settlement. The Funds do not earn interest on such
securities until settlement and bears the risk of market value fluctuations in
between the purchase and settlement dates. New issues of stocks and bonds,
private placements and U.S. government securities may be sold in this manner.
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II. FUTURES, OPTIONS AND OTHER DERIVATIVES
FORWARD CONTRACTS are contracts to purchase or sell a specified amount of a
financial instrument for an agreed upon price at a specified time. Forward
contracts are not currently exchange traded and are typically negotiated on an
individual basis. The Funds may enter into forward currency contracts to hedge
against declines in the value of securities denominated in, or whose value is
tied to, a currency other than the U.S. dollar or to reduce the impact of
currency appreciation on purchases of such securities. It may also enter into
forward contracts to purchase or sell securities or other financial indices.
FUTURES CONTRACTS are contracts that obligate the buyer to receive and the
seller to deliver an instrument or money at a specified price on a specified
date. The Funds may buy and sell futures contracts on foreign currencies,
securities and financial indices including interest rates or an index of U.S.
government, foreign government, equity or fixed-income securities. The Funds may
also buy options on futures contracts. An option on a futures contract gives the
buyer the right, but not the obligation, to buy or sell a futures contract at a
specified price on or before a specified date. Futures contracts and options on
futures are standardized and traded on designated exchanges.
INDEXED/STRUCTURED SECURITIES are typically short- to intermediate-term debt
securities whose value at maturity or interest rate is linked to currencies,
interest rates, equity securities, indices, commodity prices or other financial
indicators. Such securities may be positively or negatively indexed (i.e., their
value may increase or decrease if the reference index or instrument
appreciates). Indexed/structured securities may have return characteristics
similar to direct investments in the underlying instruments and may be more
volatile than the underlying instruments. A Fund bears the market risk of an
investment in the underlying instruments, as well as the credit risk of the
issuer.
OPTIONS are the right, but not the obligation, to buy or sell a specified amount
of securities or other assets on or before a fixed date at a predetermined
price. The Funds may purchase and write put and call options on securities,
securities indices and foreign currencies.
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[JANUS LOGO]
1-800-525-3713
P.O. Box 173375
Denver, Colorado 80217-3375
janus.com
You can request other information, including a Statement of Additional
Information, free of charge, by contacting Janus at 1-800-525-3713 or visiting
our Web site at janus.com. Other information is also available from financial
intermediaries that sell shares of the Funds.
The Statement of Additional Information provides detailed information about the
Funds and is incorporated into this Prospectus by reference. You may review the
Funds' Statement of Additional Information at the Public Reference Room of the
SEC or get text only copies for a fee, by writing to or calling the Public
Reference Room, Washington, D.C. 20549-6009 (1-800-SEC-0330). You may obtain the
Statement of Additional Information for free from the SEC's Web site at
http://www.sec.gov.
Investment Company Act File No. 811-1879
