<PAGE>
Janus Income Funds
1999 Semiannual Report
<TABLE>
<S> <C>
Janus Flexible Income Fund Janus Money Market Fund
Janus High-Yield Fund Janus Government Money Market Fund
Janus Federal Tax-Exempt Fund Janus Tax-Exempt Money Market Fund
Janus Short-Term Bond Fund
</TABLE>
[JANUS LOGO]
<PAGE>
Janus Income Funds
Table of Contents
<TABLE>
<S> <C>
To Our Shareholders..................... 1
Portfolio Manager's Commentary and
Schedule of Investments
Janus Flexible Income Fund......... 2
Janus High-Yield Fund.............. 8
Janus Federal Tax-Exempt Fund...... 13
Janus Short-Term Bond Fund......... 18
Janus Money Market Funds........... 22
Janus Government Money Market
Fund............................. 27
Janus Tax-Exempt Money Market
Fund............................. 29
Statements of Operations - Bond Funds... 32
Statements of Assets and Liabilities -
Bond Funds......................... 33
Statements of Changes in Net Assets -
Bond Funds......................... 34
Financial Highlights - Bond Funds....... 35
Statements of Operations - Money Market
Funds.............................. 37
Statements of Assets and Liabilities -
Money Market Funds................. 37
Statements of Changes in Net Assets -
Money Market Funds................. 38
Financial Highlights - Money Market
Funds.............................. 39
Notes to Schedules of Investments....... 43
Notes to Financial Statements........... 44
Explanation of Charts and Tables........ 47
Year 2000 Discussion.................... 49
</TABLE>
[JANUS LOGO]
<PAGE>
To Our Shareholders
[Tom Bailey Photo]
Tom Bailey
chairman
The past six months have been challenging for the fixed-income markets.
Financial turmoil in developing economies and the ensuing fear of a global
recession triggered a "dash for cash" last fall. Investors consequently fled to
the securities they perceived as the safest and most liquid, U.S. Treasury
bonds, and left the remainder of the bond market behind.
Near the end of 1998, however, the global outlook brightened in response to
three cuts in short-term interest rates by the Federal Reserve Board. The
perception that the Fed had headed off a potential recession in the U.S. helped
raise investors' tolerance for risk, and a steady stream of money began to flow
back into the markets. Investment-grade and high-yield bonds both responded
favorably to this turn of events, while yields on Treasury bonds softened.
As economic growth pushed onward, the higher returns offered by stocks prompted
many investors to once again bypass the majority of the bond market. However,
high-yield bonds were the exception. They correspond closely with stocks and
therefore participated in the stock market's recent advances, although to a
lesser extent.
Despite the economy's vigor, inflation remained under control. Much of this
restraint can be attributed to the positive influence technology has had on the
way companies do business. Not only has technology contributed to a rise in
productivity, it's also helped keep a lid on wage inflation. Additionally, the
Internet and the increasingly competitive and interdependent global marketplace
have kept raw material and consumer price inflation at bay.
In the midst of the volatility that has transpired, our income funds held their
ground during the period. Our performance was aided by the decision to invest in
only the highest-quality securities and strongest issuers within each asset
class, primarily here in the U.S.
Going forward, we expect economic growth to moderate slightly from its current
levels. The last few years have shown an acceleration in consumer spending
during the first quarter because of year-end bonuses and tax refunds, followed
by a slowdown in growth during the second and third quarters. This pattern will
likely continue in 1999, providing a supportive background for bonds. We're also
keeping a close eye on recent concerns regarding potential labor shortages and
increasing wages, which could lead to rising inflation and impact the economy.
Nonetheless, we are confident our fundamental, bottom-up analysis and intensive
research will enable us to find the best investment opportunities for your
money, regardless of where the market is headed.
Finally, I'd like to thank you for your continued confidence and investment with
Janus.
/s/ TOM BAILEY
Tom Bailey
Janus Income Funds / April 30, 1999 1
<PAGE>
Janus Flexible Income Fund
[Ronald Speaker Photo]
Ronald Speaker
portfolio manager
Janus Flexible Income Fund returned 3.70% for the six months ended April 30,
1999, compared with (0.12%) for the Lehman Brothers Government/Corporate Bond
Index.(1) This performance placed the Fund in the top quartile for the 12 months
ended April 30, 1999. Out of 36 general bond funds tracked by Lipper, Inc., a
leading mutual fund rating company, Janus Flexible Income Fund placed 5th.(2)
We continued to employ a flexible strategy, investing in a sampling of strong
opportunities from every corner of the fixed-income universe. This approach
enabled us to remain nimble in the face of market changes. One change in
particular was a dramatic recovery in the prices of corporate debt securities
during the last two months of 1998, a time when the U.S. stock market was
advancing sharply. The spreads, or differences in yield, between Treasury and
corporate securities narrowed considerably from peak levels during the August to
October credit crunch, as investors increasingly regained their confidence about
corporate business prospects. The Federal Reserve Board played an important role
in this process by lowering short-term interest rates again in November,
following cuts earlier in the fall.
Fears of an economic slowdown continued to abate in the first four months of
1999 as the U.S. economy, spurred by increasing consumer spending, low
unemployment and rising wages, helped push the Dow Jones Industrial Average up
through the 10,000-point barrier. In response to the strong performance of the
stock market, the price on the benchmark 10-year Treasury bond fell 5% and
yields rose from 4.7% to 5.35%.
In order to protect the Fund from these developments, we reduced our weighting
in Treasury securities, which were more vulnerable than corporates to the rise
in long-term interest rates we saw in the first quarter. Our new purchases in
the corporate sector focused on securities with intermediate-term maturities,
which are typically less volatile than longer-dated issues. In keeping with the
Fund's current emphasis on liquidity, our allocation of investment-grade bonds
increased and, at the end of April 1999, accounted for nearly 40% of the Fund.
Meanwhile, our weighting in high-yield bonds, after dipping to roughly 23%
around the end of 1998, ended the period at about 37%. We increased the Fund's
weighting in this sector in response to the ongoing strength in stocks, with
which the high-yield market tends to have a high correlation.
Areas that were well-represented in the Fund's holdings included
consumer-oriented industries such as cable and supermarkets. In the supermarket
industry, our Fred Meyer positions continued to do well, as did cable holdings
in Time Warner, TCI Communications and Jones Intercable. We also established a
significant new high-yield position in Charter Communications, a cable company
controlled by Microsoft co-founder Paul Allen. Charter and several of our other
cable holdings are all benefiting from new
<TABLE>
<CAPTION>
PORTFOLIO ASSET MIX April 30, 1999 October 31, 1998
- --------------------------------------------------------
<S> <C> <C>
Investment-Grade
Corporate Bonds 38.4% 32.7%
High-Yield/High-Risk
Corporate Bonds 37.3% 30.3%
U.S. Government Bonds 15.3% 25.4%
Foreign Non-Dollar Bonds 2.5% 2.1%
Preferred Stock 2.4% 1.6%
Cash & Cash Equivalents 4.1% 7.9%
- --------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FUND PROFILE April 30, 1999 October 31, 1998
- -------------------------------------------------------------------
<S> <C> <C>
Weighted Average Maturity 8.9 Yrs. 9.1 Yrs.
Average Modified Duration* 6.0 Yrs. 6.1 Yrs.
30-Day Average Yield** 6.57% 6.05%
Average Rating BBB+ A
- -------------------------------------------------------------------
</TABLE>
*A theoretical measure of price volatility.
**Yields will fluctuate.
(1) Both returns include reinvested dividends.
(2) A general bond fund is defined by Lipper, Inc. as "a fund that does not have
any quality or maturity restrictions. Intends to keep bulk of assets in
corporate and government debt issues." As of April 30, 1999, Janus Flexible
Income Fund ranked 1/11 of general bond funds for the 5 year period and 2/5
for the 10 year period. The ranking is based upon total return, including
reinvestment of dividends and capital gains for the stated period.
Past performance does not guarantee future results.
2 Janus Income Funds / April 30, 1999
<PAGE>
value-added services made possible by the applications of broadband technology,
which include high-speed Internet access, cable telephony and video-on-demand.
Meanwhile, our bonds in Qwest Communications, an operator of fiber-optic
telecommunications systems, also performed well. This company benefited from
merger and joint venture activity within the telecommunications industry. Moder-
ating our returns during the period were Treasuries, which experienced a decline
in prices when interest rates rose in the first quarter. In corporate issues,
SIG Capital Trust, a company that provides nonstandard auto and crop insurance,
was hurt by pricing pressure and uncooperative weather,
which caused its bonds to fall short of our expectations.
While Treasuries were the main drivers of our performance last summer, the
markets reversed during the period. As a result, the credit-sensitive and
high-yield sectors outperformed and investors seeking relative risk versus the
safety of Treasuries were rewarded.
Although we were somewhat surprised by the strength of the U.S. economy during
the first half of our fiscal year, I feel it will moderate as we head into this
all-important close of the century. For the remainder of the year, we hope to
take advantage of the higher yields currently being offered in the bond market
since interest rates have risen somewhat. Going forward, I assure you that we
still have a large universe of great companies to choose from, and finding those
companies remains our passion.
Thank you for your investment in Janus Flexible Income Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Flexible Income Fund and the Lehman Brothers Government/Corporate Bond
Index. Janus Flexible Income Fund is represented by a shaded area of blue. The
Lehman Brothers Government/Corporate Bond Index is represented by a solid black
line. The "y" axis reflects the value of the investment. The "x" axis reflects
the computation periods from inception, July 7, 1987 through April 30, 1999.
The lower right quadrant reflects the ending value of the hypothetical
investment in Janus Flexible Income Fund at $28,384 as compared to the Lehman
Brothers Government/Corporate Bond Index at $26,724.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 6.10%
Five Year, 9.67%
Ten Year, 9.23%
Since 7/7/87*, 9.22%
JANUS FLEXIBLE INCOME FUND - $28,384
Lehman Brothers
Government/Corporate
Bond Index - $26,724
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends.
Prior to 1994, the advisor voluntarily waived certain fund expenses for Janus
Flexible Income Fund. Without such waivers, yields and total returns would have
been lower. 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.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds - 75.7%
Automotive - Truck Parts and Equipment - 1.2%
$ 4,000,000 Dana Corp., 6.25%
notes, due 3/1/04............................$ 4,005,000
10,000,000 Federal-Mogul Corp., 7.50%
notes, due 1/15/09(+)..........................9,775,000
2,000,000 Safelite Glass Corp., 9.875%
senior subordinated notes, due 12/15/06(+).....1,920,000
15,700,000
Beverages - Non-Alcoholic - 1.1%
15,000,000 Coca-Cola Enterprises, Inc., 6.95%
debentures, due 11/15/26......................15,168,750
Beverages - Wine and Spirits - 0.7%
10,000,000 Joseph E. Seagram & Sons, Inc., 6.80%
company guaranteed notes, due 12/15/08........10,000,000
Brewery - 0.7%
10,000,000 Anheuser-Busch Companies, Inc., 5.65%
notes, due 9/15/08.............................9,725,000
Broadcast Services and Programming - 0.4%
$ 2,085,000 Digital Television Services, Inc., 12.50%
company guaranteed notes, due 8/1/07.........$ 2,314,350
3,000,000 Echostar DBS Corp., 9.375%
senior notes, due 2/1/09(+)....................3,127,500
5,441,850
Cable Television - 6.5%
3,000,000 Century Communications Corp., 8.75%
senior notes, due 10/1/07......................3,135,000
40,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09(+)...........41,000,000
11,000,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08.....................11,742,500
12,000,000 Lenfest Communications, Inc., 7.625%
senior notes, due 2/15/08.....................12,690,000
TCI Communications, Inc.:
4,500,000 6.375%, senior notes, due 5/1/03................4,567,500
13,000,000 6.875%, senior notes, due 2/15/06..............13,503,750
86,638,750
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 3
<PAGE>
Janus Flexible Income Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Casino Hotels - 1.3%
$ 4,000,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00...........$ 3,920,000
2,500,000 Station Casinos, Inc., 8.875%
senior subordinated notes, due 12/1/08.........2,587,500
10,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04........10,575,000
17,082,500
Casino Services - 0.7%
8,000,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04..............8,700,000
Cellular Telecommunications - 1.0%
10,000,000 360 degrees Communications Co., 6.65%
senior notes, due 1/15/08.....................10,200,000
2,740,000 Filtronic PLC, 10.00%
senior notes, due 12/1/05(+)...................2,870,150
13,070,150
Ceramic Products - 0.2%
2,000,000 Unifrax Investment Corp., 10.50%
senior notes, due 11/1/03......................2,037,500
Commercial Banks - 2.2%
11,000,000 Bank One Texas, 6.25%
subordinated notes, due 2/15/08...............10,931,250
7,000,000 City National Bank Corp., 6.375%
subordinated notes, due 1/15/08................6,860,000
7,000,000 First Union National Bank, 5.80%
subordinated notes, due 12/1/08................6,685,000
5,000,000 Hudson United Bancorp, 8.20%
subordinated debentures, due 9/15/06...........5,193,750
29,670,000
Computer Services - 0.4%
2,500,000 Cooperative Computing, 9.00%
senior subordinated notes, due 2/1/08..........2,243,750
3,600,000 Dialog Corp. PLC, 11.00%
senior subordinated notes, due 11/15/07........3,600,000
5,843,750
Computers - Micro - 2.3%
IBM Corp.:
22,000,000 5.375%, notes, due 2/1/09......................20,817,500
10,000,000 7.00%, debentures, due 10/30/25................10,350,000
31,167,500
Consulting Services - 1.4%
19,000,000 Comdisco, Inc., 5.95%
notes, due 4/30/02............................18,905,000
Distribution and Wholesale - 0.4%
5,000,000 Aviation Sales Co., 8.125%
company guaranteed notes, due 2/15/08..........5,050,000
Electric - Integrated - 1.0%
El Paso Electric Co.:
3,000,000 8.90%, first mortgage bonds, due
2/1/06.........................................3,382,500
9,000,000 9.40%, first mortgage bonds, due 5/1/11........10,406,250
13,788,750
Fiber Optics - 1.1%
$13,500,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 11/15/08(+)...............$ 14,613,750
Finance - Auto Loans - 2.1%
Ford Motor Credit Co.:
10,000,000 5.375%, notes, due 10/15/02.....................9,837,500
8,500,000 5.80%, senior notes, due 1/12/09................8,128,125
10,000,000 General Motors Acceptance Corp., 5.85%
senior unsubordinated notes, due 1/14/09.......9,562,500
27,528,125
Finance - Other Services - 4.7%
5,000,000 Arkwright CSN Trust, 9.625%
notes, due 8/15/26(+)..........................5,531,250
6,000,000 First American Capital Trust, 8.50%
company guaranteed notes, due 4/15/12..........6,630,000
5,000,000 Mellon Financial Co., 6.375%
subordinated notes, due 2/15/10................5,018,750
20,000,000 Newcourt Credit Group, Inc., 6.875%
notes, due 2/16/05(+).........................20,425,000
13,000 Ono Finance PLC, 13.00%
units, due 5/1/09(+)..........................12,902,500
5,000,000 SIG Capital Trust I, 9.50%
company guaranteed notes, due 8/15/27..........3,737,500
10,000,000 Veritas Capital Trust, 10.00%
company guaranteed notes, due 1/1/08...........8,975,000
63,220,000
Food - Diversified - 0.6%
8,000,000 Ralston Purina Co., 7.75%
debentures, due 10/1/15........................8,540,000
Food - Retail - 8.4%
2,000,000 Carrols Corp., 9.50%
senior subordinated notes, due 12/1/08(+)......2,045,000
Fred Meyer, Inc.:
25,000,000 7.15%, company guaranteed notes,
due 3/1/03....................................25,593,750
47,000,000 7.45%, company guaranteed notes,
due 3/1/08....................................49,232,500
9,000,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07...........9,495,000
4,000,000 Pantry, Inc., 10.25%
company guaranteed notes, due 10/15/07.........4,210,000
Safeway, Inc.:
4,800,000 5.875%, notes, due 11/15/01.....................4,806,000
12,000,000 6.50%, notes, due 11/15/08.....................12,030,000
4,000,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04.........4,410,000
111,822,250
Gambling - Non-Hotel Casinos - 0.5%
7,000,000 Isle of Capri Casinos, Inc., 8.75%
senior subordinated notes, due 4/15/09(+)......6,965,000
</TABLE>
See Notes to Schedules of Investments.
4 Janus Income Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Hotels and Motels - 0.5%
$ 2,510,000 Florida Panthers Holdings, Inc., 9.875%
senior subordinated notes, due 4/15/09(+)....$ 2,516,275
4,500,000 Marriott International, Inc., 6.625%
notes, due 11/15/03(+).........................4,477,500
6,993,775
Independent Power Producer - 0.6%
8,500,000 Calpine Corp., 7.75%
senior notes, due 4/15/09......................8,542,500
Internet Software - 0.4%
5,000,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08.......................5,487,500
Leisure, Recreation and Gaming - 0.4%
5,000,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05..........4,787,500
Life and Health Insurance - 0.9%
11,000,000 Delphi Financial Group, Inc., 8.00%
senior notes, due 10/1/03.....................11,398,750
Machinery - General Industrial - 0.4%
5,000,000 Tokheim Corp., 11.375%
senior subordinated notes, due 8/1/08(+).......5,087,500
Manufacturing - 0.6%
7,500,000 Day International Group, Inc., 11.125%
senior notes, due 6/1/05.......................7,931,250
Medical - Hospitals - 0.2%
3,000,000 Columbia/HCA Healthcare Corp., 8.36%
debentures, due 4/15/24........................2,850,000
Medical Products - 0.7%
8,500,000 Dade International, Inc., 11.125%
senior subordinated notes, due 5/1/06..........9,413,750
Multimedia - 4.7%
News America, Inc.:
10,000,000 6.625%, senior notes, due 1/9/08...............10,012,500
10,000,000 7.30%, debentures, due 4/30/28..................9,937,500
Time Warner, Inc.:
15,250,000 8.18%, notes, due 8/15/07......................16,908,438
10,000,000 6.95%, company guaranteed notes,
due 1/15/28....................................9,937,500
15,000,000 Walt Disney Co. (The), 6.75%
senior notes, due 3/30/06.....................15,581,250
62,377,188
Music/Clubs - 0.7%
6,000,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08...........6,210,000
7,900,000 V2 Music Holdings PLC, zero coupon
senior discount notes, due 4/15/08(+)..........3,495,750
9,705,750
Networking Products - 0.5%
$ 4,250,000 Candescent Technologies Corp., 7.00%
convertible senior subordinated debentures,
due 5/1/03(+)................................$ 3,740,000
2,000,000 Concentric Network Corp., 12.75%
senior notes, due 12/15/07.....................2,275,000
6,015,000
Oil Companies - Integrated - 0.4%
5,000,000 Pennzoil-Quaker State Co., 6.75%
notes, due 4/1/09..............................4,956,250
Optical Supplies - 0.4%
5,000,000 Bausch & Lomb, Inc., 6.75%
notes, due 12/15/04............................4,993,750
Paint and Related Products - 1.2%
10,500,000 Sherwin-Williams Co., 6.85%
notes, due 2/1/07.............................10,946,250
4,500,000 Temple-Inland, Inc., 6.75%
notes, due 3/1/09..............................4,426,875
15,373,125
Physical Therapy and Rehabilitation Centers - 0.7%
HEALTHSOUTH Corp.:
7,000,000 9.50%, senior subordinated notes,
due 4/1/01.....................................7,192,500
2,500,000 7.00%, senior notes, due 6/15/08................2,368,750
9,561,250
Property and Casualty Insurance - 0.7%
9,000,000 Orion Capital Corp., 7.25%
senior notes, due 7/15/05......................9,202,500
Protection - Safety - 0.4%
5,250,000 Protection One Alarm Monitoring, Inc., 7.375%
company guaranteed notes, due 8/15/05..........5,125,313
Radio - 0.2%
3,000,000 Chancellor Media Corp., 9.00%
company guaranteed notes, due 10/1/08..........3,210,000
Recreational Centers - 0.9%
11,500,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07.......11,773,125
Retail - Discount - 0.5%
6,700,000 Ames Department Stores, Inc., 10.00%
senior notes, due 4/15/06(+)...................6,633,000
Retail - Diversified - 0.1%
3,100,000 SpinCycle, Inc., zero coupon
senior discount notes, due 5/1/05..............1,410,500
Retail - Fabric Store - 0.2%
2,050,000 Jo-Ann Stores, Inc., 10.375%
senior subordinated notes, due 5/1/07(+).......2,019,250
Retail - Leisure Products - 0.7%
9,000,000 Selmer Co., Inc., 11.00%
senior subordinated notes, due 5/15/05.........9,607,500
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 5
<PAGE>
Janus Flexible Income Fund
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Retail - Restaurants - 1.6%
$10,000,000 McDonald's Corp., 6.375%
debentures, due 1/8/28.......................$ 9,637,500
4,500,000 Perkins Family Restaurant L.P., 10.125%
senior notes, due 12/15/07.....................4,815,000
3,000,000 Romacorp, Inc., 12.00%
company guaranteed notes, due 7/1/06...........2,932,500
3,500,000 Tricon Global Restaurants, Inc., 7.65%
senior notes, due 5/15/08......................3,618,125
21,003,125
Savings/Loan/Thrifts - 3.0%
12,000,000 Dime Bancorp, Inc., 6.375%
senior notes, due 1/30/01.....................11,970,000
Golden State Holdings, Inc.:
5,000,000 7.00%, senior notes, due 8/1/03.................4,993,750
10,000,000 7.125%, senior notes, due 8/1/05...............10,037,500
8,000,000 People's Bank Bridgeport, 7.20%
subordinated notes, due 12/1/06................7,990,000
5,000,000 St. Paul Bancorp, Inc., 7.125%
senior notes, due 2/15/04......................4,968,750
39,960,000
Super-Regional Banks - 0.6%
8,000,000 NationsBank Corp., 7.75%
subordinated notes, due 8/15/15................8,630,000
Telecommunication Equipment - 0.2%
3,000,000 Covad Communications Group, Inc., 12.50%
senior notes, due 2/15/09(+)...................3,045,000
Telecommunication Services - 6.9%
5,000,000 Bellsouth Telecommunication, Inc., 6.375%
debentures, due 6/1/28.........................4,756,250
5,000,000 Bresnan Communication Holding Co., 8.00%
senior notes, due 2/1/09(+)....................5,137,500
11,000,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05........12,265,000
5,000,000 Hyperion Telecommunications, Inc., 12.00%
senior subordinated notes, due 11/1/07(+)......5,262,500
5,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08.......................5,100,000
10,000,000 Logix Communication Enterprises, Inc., 12.25%
senior notes, due 6/15/08......................9,900,000
McLeodUSA, Inc.:
3,070,000 9.25%, senior notes, due 7/15/07................3,231,175
5,000,000 8.125%, senior notes, due 2/15/09(+)............4,962,500
7,670,000 NTL, Inc., zero coupon
senior notes, due 4/15/05......................7,363,200
2,700,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09(+)....................2,754,000
5,500,000 Pegasus Media Communications, 12.50%
notes, due 7/1/05..............................6,105,000
Telecommunication Services - (continued)
$12,000,000 RCN Corp., 10.00%
senior notes, due 10/15/07.................$ 12,450,000
10,000,000 RSL Communications PLC, 10.50%
company guaranteed notes, due 11/15/08........10,425,000
2,700,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08......................2,909,250
92,621,375
Telephone - Integrated - 2.5%
5,000,000 Esprit Telecom Group PLC, 11.50%
senior notes, due 12/15/07.....................5,475,000
12,000,000 GTE Northwest, Inc., 5.55%
debentures, due 10/15/08......................11,370,000
8,000,000 Nextlink Communications, Inc., 10.75%
senior notes, due 11/15/08(+)..................8,600,000
7,000,000 Qwest Communications International, Inc.
7.50%, senior notes, due 11/1/08(+)............7,332,500
32,777,500
Telephone - Long Distance - 2.5%
15,000,000 LCI International, Inc., 7.25%
senior notes, due 6/15/07.....................15,412,500
MCI WorldCom, Inc.:
5,000,000 6.40%, senior notes, due 8/15/05................5,037,500
8,000,000 7.75%, notes, due 4/1/07........................8,620,000
4,500,000 Viatel, Inc., 11.50%
senior notes, due 3/15/09(+)...................4,770,000
33,840,000
Television - 0.8%
10,000,000 Fox/Liberty Networks L.L.C., 8.875%
senior notes, due 8/15/07.....................10,925,000
Textile Products - 0.6%
7,500,000 Collins & Aikman Floorcovering, Inc., 10.00%
senior subordinated notes, due 1/15/07.........7,865,625
Transportation - Services - 0.2%
2,000,000 Atlantic Express Transportation Corp., 10.75%
company guaranteed notes, due 2/1/04...........2,055,000
Wire and Cable Products - 0.4%
5,000,000 Anixter International, Inc., 8.00%
company guaranteed notes, due 9/15/03..........5,131,250
Wireless Equipment - 0.5%
10,282,322 CAI Wireless Systems, Inc., zero coupon
senior notes, due 10/14/04.....................5,076,896
3,175,000 Metricom, Inc., 8.00%
convertible subordinated notes, due 9/15/03....1,984,375
7,061,271
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $999,423,271).................1,010,049,797
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
6 Janus Income Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Foreign Bonds - 2.5%
Machinery - General Industrial - 0.3%
EUR 4,000,000 Tokheim Corp., 11.375%
senior subordinated notes, due
8/1/08**(,+)...............................$ 4,274,134
Sovereign Debt - 0.8%
CAD 14,000,000 Canadian National Government, 6.00%
debentures, due 6/1/08**....................10,191,120
Telephone - Integrated - 0.7%
DEM 15,500,000 Esprit Telecom Group PLC, 11.50%
senior notes, due 12/15/07...................9,306,585
Telephone - Long Distance - 0.7%
EUR 8,000,000 Viatel, Inc., 11.50%
senior notes, due 3/15/09**(,+)..............8,971,450
- -----------------------------------------------------------------------
Total Foreign Bonds (cost $32,169,478).......................32,743,289
- -----------------------------------------------------------------------
Preferred Stock - 2.4%
Cable Television - 0.8%
49,980 Adelphia Communications Corp.
- Series D, convertible, 5.50%..............10,220,910
Networking Products - 0.8%
9,941 Concentric Network Corp.
- Series B, 13.50%..........................11,307,887
Savings/Loan/Thrifts - 0.8%
350,000 Chevy Chase Savings Bank, 13.00%.............10,500,000
- -----------------------------------------------------------------------
Total Preferred Stock (cost $30,131,743).....................32,028,797
- -----------------------------------------------------------------------
Warrants - 0%
Music/Clubs - 0%
7,900 V2 Music Holdings PLC
- expires 4/15/08*...................................0
Retail - Diversified - 0%
3,100 SpinCycle, Inc. - expires 5/1/05*.....................0
Telecommunication Services - 0%
3,450 MetroNet Communications Corp.
- expires 8/15/07*..............................17,250
2,700 Versatel Telecom B.V.
- expires 5/15/08*.............................189,000
- -----------------------------------------------------------------------
Total Warrants (cost $0)........................................206,250
- -----------------------------------------------------------------------
U.S. Government Agency - 0.7%
$ 10,000,000 Freddie Mac, 5.00%
debentures, due 1/15/04
(cost $9,820,372)........................$ 9,738,100
- -----------------------------------------------------------------------
U.S. Government Obligations - 14.6%
U.S. Treasury Notes:
80,000,000 6.625%, due 5/15/07..........................86,104,800
105,000,000 5.625%, due 5/15/08**.......................106,452,150
2,000,000 4.75%, due 11/15/08...........................1,909,980
- -----------------------------------------------------------------------
Total U.S. Government Obligations (cost $196,188,607).......194,466,930
- -----------------------------------------------------------------------
Short-Term Corporate Note - 2.5%
33,400,000 Associates Corp, N.A.
4.92%, 5/3/99
(amortized cost $33,390,871)................33,390,871
- -----------------------------------------------------------------------
Total Investments (total cost $1,301,124,342) - 98.4%.....1,312,624,034
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 1.6%..........................................21,353,466
- -----------------------------------------------------------------------
Net Assets - 100%........................................$1,333,977,500
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
Financial Futures - Short
1,250 Contracts U.S. Treasury - 10 year bond, expires
June 1999, principal amount
$143,578,125 value $143,359,375,
cumulative appreciation.....................$ 218,750
- -----------------------------------------------------------------------
</TABLE>
FORWARD CURRENCY CONTRACTS, OPEN AT APRIL 30, 1999
<TABLE>
<CAPTION>
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
- ---------------------------------------------------------------------
<S> <C> <C> <C>
Canadian Dollar 10/8/99 14,200,000 $ 9,750,069 ($ 570,990)
Euro 7/22/99 20,000,000 21,046,000 1,112,945
- ---------------------------------------------------------------------
Total $30,796,069 $ 541,955
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 7
<PAGE>
Janus High-Yield Fund
[Sandy R. Rufenacht Photo]
Sandy Rufenacht
portfolio manager
For the six months ended April 30, 1999, Janus High-Yield Fund posted a 10.30%
return, beating our benchmark, the Lehman Brothers High-Yield Bond Index, which
returned 8.25%.(1)
I'm pleased to report that the outlook for high-yield investments has improved
dramatically since my previous letter, thanks to proactive moves by the Federal
Reserve Board. Responding to last fall's extreme volatility, the Fed sought to
restore confidence in the financial markets by cutting interest rates a
quarter-point in November, one of three reductions in three consecutive months.
The result was a complete turnaround in investor sentiment, with the stock
market trending higher throughout the period. A strong stock market is positive
for high-yield bonds because the two tend to be closely correlated. Low
inflation and stronger-than-expected economic growth also gave a boost to both
equity and high-yield markets.
In the credit markets, spreads, or the differences between yields, narrowed
somewhat as investors felt confident enough to move out of Treasuries and back
into corporate debt. Interestingly, high-yield spreads did not return to levels
seen before the credit crunch that was caused by the Russian debt debacle. These
wider spreads played to our strength, allowing us to leverage our rigorous,
bottom-up discipline to find the overlooked bargains. First, we reduced our cash
levels and tried to boost the overall yield of the Fund by increasing holdings
of companies we viewed as underappreciated by the market. We also invested
selectively in convertible bonds, which is another way to capitalize on the
market's resilience.
Our cable companies continued to be among the Fund's top performers, offering a
reliable stream of recurring, domestically based revenue, as well as exciting
possibilities in broadband technology. Broadband will provide users with
telephony, digital video and high-speed Internet access over one platform.
Another important development in this industry is the rapid consolidation taking
place. One of our investments, Atlanta-based Rifkin Acquisition, is a perfect
example. The company recently received a takeover bid from the higher-rated
Charter Communications, increasing Rifkin's value.
Among our casino holdings, one highlight is Venetian Casino, which boosted the
Fund's performance as the project neared completion. This unique property is the
first casino in Las Vegas to cater to the business traveler, with larger hotel
rooms and better amenities than its competitors. The Venetian also enjoys an
ideal location, physically connected to the Sands Expo Center,
a convention facility that draws large weekday crowds. Directly across the
street are Treasure Island and Mirage, both of which have attractions
that bring in more than 50,000 tourists daily.
While weekdays at some Las Vegas casinos can be
<TABLE>
<CAPTION>
FUND PROFILE April 30, 1999 October 31, 1998
- -------------------------------------------------------------
<S> <C> <C>
Weighted Average Maturity 7.0 Yrs. 7.4 Yrs.
Average Modified Duration* 5.0 Yrs. 5.2 Yrs.
30-Day Average Yield** 8.29% 9.50%
30-Day Average Yield
Without Reimbursement** 8.27% NA
Average Rating B B
- -------------------------------------------------------------
</TABLE>
*A theoretical measure of price volatility.
**Yields will fluctuate.
(1) Both returns include reinvested dividends.
Past performance does not guarantee future results.
8 Janus Income Funds / April 30, 1999
<PAGE>
slow, management's strategy is to capitalize on this tremendous flow of foot
traffic. We are extremely gratified by the prospects for the Venetian and plan
to work closely with management up to and beyond the casino's opening.
While we were satisfied with the overall performance of the Fund, Navigator Gas
is one holding that disappointed us. After the company raised the money to build
five state-of-the-art transport ships, oil and gas prices declined and,
consequently, the need for the ships became questionable. As a result, we sold
our position at a loss.
Going forward, a healthy economy and a rising stock market are favorable for
high-yield investments. And with high-yield spreads distributed over a broader
range, there should be no shortage of undervalued securities to invest in as
1999 progresses. But strong stock market or not, our focus is on well-managed
businesses with U.S.-based revenues where management takes on significant equity
ownership in the company. By adding analyst Brent Olson to the fixed-income team
and thereby increasing our already intensive research effort, we're more
confident than ever that we'll continue to uncover these great investments.
Furthermore, we remain dedicated to personally visiting each and every holding
in the Fund.
In closing, I'd like to thank you for investing in Janus High-Yield Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus High-Yield Fund and the Lehman Brothers High-Yield Bond Index. Janus
High-Yield Fund is represented by a shaded area of blue. The Lehman Brothers
High-Yield Bond Index is represented by a solid black line. The "y" axis
reflects the value of the investment. The "x" axis reflects the computation
periods from inception, December 29, 1995 through April 30, 1999. The lower
right quadrant reflects the ending value of the hypothetical investment in Janus
High-Yield Fund at $15,197 as compared to the Lehman Brothers High-Yield Bond
Index at $13,280.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 0.97%
Since 12/29/95*, 13.38%
JANUS HIGH-YIELD FUND - $15,197
Lehman Brothers High-Yield
Bond Index - $13,280
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends.
Prior to December of 1997 and after October of 1998, the advisor voluntarily
waived certain fund expenses for Janus High-Yield Fund. Without such waivers,
yields and total returns would have been lower. 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.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds - 91.0%
Agricultural Operations - 1.0%
$3,000,000 Hines Horticulture, Inc., 11.75%
senior subordinated notes, due 10/15/05......$ 3,270,000
Broadcast Services and Programming - 0.7%
2,000,000 Digital Television Services L.L.C., 12.50%
company guaranteed notes, due 8/1/07...........2,220,000
Building - Residential and Commercial - 3.9%
2,000,000 D.R. Horton, Inc., 8.00%
company guaranteed notes, due 2/1/09...........1,980,000
1,750,000 Del Webb Corp., 10.25%
senior subordinated notes, due 2/15/10.........1,811,250
4,000,000 MDC Holdings, Inc., 8.375%
senior notes, due 2/1/08.......................4,000,000
3,000,000 Standard Pacific Corp., 8.50%
senior notes, due 4/1/09.......................3,000,000
2,000,000 Toll Corp., 8.00%
company guaranteed notes, due 5/1/09...........1,995,000
12,786,250
Cable Television - 11.8%
Adelphia Communications Corp.:
$4,000,000 9.875%, senior notes, due 3/1/07..............$ 4,430,000
4,250,000 7.875%, senior notes, due 5/1/09................4,260,625
8,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09(+)............8,200,000
2,000,000 Classic Cable, Inc., 9.875%
senior subordinated notes, due 8/1/08..........2,130,000
3,000,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06........3,367,500
2,000,000 Fundy Cable, Ltd., 11.00%
senior notes, due 11/15/05.....................2,185,000
4,000,000 Mediacom L.L.C., 7.875%
senior notes, due 2/15/11(+)...................4,000,000
3,000,000 Rifkin Acquisition Partners L.P., 11.125%
senior subordinated notes, due 1/15/06.........3,408,750
TeleWest Communications PLC:
2,500,000 zero coupon, debentures, due 10/1/07............2,221,875
7,000,000 zero coupon, senior discount notes,
due 4/15/09(+).................................4,716,250
38,920,000
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 9
<PAGE>
Janus High-Yield Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Casino Hotels - 3.4%
$5,000,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00...........$ 4,900,000
6,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04.........6,345,000
11,245,000
Casino Services - 2.0%
6,000,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04..............6,525,000
Cellular Telecommunications - 2.0%
3,000,000 Centennial Cellular Corp., 10.75%
senior subordinated notes, due 12/15/08(+).....3,255,000
3,308,000 Orange PLC, 8.00%
senior notes, due 8/1/08.......................3,398,970
6,653,970
Computer Services - 3.7%
2,000,000 Cooperative Computing, Inc., 9.00%
senior subordinated notes, due 2/1/08..........1,795,000
5,750,000 Globix Corp., 13.00%
senior notes, due 5/1/05.......................5,850,625
4,500,000 Splitrock Services, Inc., 11.75%
company guaranteed notes, due 7/15/08..........4,567,500
12,213,125
Containers - Paper and Plastic - 2.2%
3,000,000 Packaged Ice, Inc., 9.75%
company guaranteed notes, due 2/1/05...........3,037,500
3,000,000 Plastic Containers, Inc., 10.00%
senior notes, due 12/15/06.....................3,180,000
4,000,000 SF Holdings Group, Inc., zero coupon
senior notes, due 3/15/08......................1,220,000
7,437,500
Cosmetics and Toiletries - 0.9%
3,000,000 Playtex Family Products Corp., 9.00%
senior subordinated notes, due 12/15/03........3,090,000
Distribution and Wholesale - 3.1%
2,000,000 Aviation Sales Co., 8.125%
company guaranteed notes, due 2/15/08..........2,020,000
4,000,000 Core-Mark International, Inc., 11.375%
senior subordinated notes, due 9/15/03.........3,990,000
4,000,000 Herff Jones, Inc., 11.00%
senior subordinated notes, due 8/15/05.........4,345,000
10,355,000
Diversified Financial Services - 0.6%
2,000,000 Local Financial Corp., 11.00%
senior notes, due 9/8/04(+)....................2,070,000
Diversified Operations - 1.2%
4,000,000 High Voltage Engineering Corp., 10.50%
senior notes, due 8/15/04......................3,810,000
Electronics - Military - 0.9%
3,000,000 Condor Systems, Inc., 11.875%
company guaranteed notes, due 5/1/09(+)........2,970,000
Fiber Optics - 1.6%
$3,000,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 11/15/08(+)................$ 3,247,500
2,000,000 Northeast Optic Network, Inc., 12.75%
senior notes, due 8/15/08......................2,130,000
5,377,500
Finance - Other Services - 2.0%
3,880 Ono Finance PLC, 13.00%
units, due 5/1/09(+)...........................3,850,900
3,000,000 Veritas Capital Trust, 10.00%
company guaranteed notes, due 1/1/28...........2,692,500
6,543,400
Food - Retail - 2.4%
2,000,000 Carrols Corp., 9.50%
senior subordinated notes, due 12/1/08(+)......2,045,000
5,500,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04.........6,063,750
8,108,750
Gambling - Non-Hotel Casinos - 4.3%
5,000,000 Isle of Capri Casinos, Inc., 8.75%
senior subordinated notes, due 4/15/09(+)......4,975,000
6,250,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01...............6,375,000
3,000,000 Louisiana Casino Cruises, Inc., 11.00%
secured notes, due 12/1/05(+)..................3,037,500
14,387,500
Golf - 0.6%
2,000,000 True Temper Sports, Inc., 10.875%
senior subordinated notes, due 12/1/08(+)......1,855,000
Home Decorating Products - 1.5%
5,000,000 Frank's Nursery & Crafts, Inc., 10.25%
senior subordinated notes, due 3/1/08..........5,025,000
Hotels and Motels - 1.2%
4,000,000 HMH Properties, Inc., 7.875%
company guaranteed notes, due 8/1/08...........3,870,000
Internet Software - 3.9%
2,000,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08.......................2,195,000
3,000,000 PSINet, Inc., 10.00%
senior notes, due 2/15/08......................3,142,500
2,500,000 Rhythms NetConnections, Inc., 12.75%
senior notes, due 4/15/09(+)...................2,493,750
4,500,000 Verio, Inc., 11.25%
senior notes, due 12/1/08(+)...................5,017,500
12,848,750
Leisure, Recreation and Gaming - 1.4%
5,000,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05..........4,787,500
Manufacturing - 0.5%
1,800,000 Foamex L.P., 9.875%
company guaranteed notes, due 6/15/07..........1,620,000
</TABLE>
See Notes to Schedules of Investments.
10 Janus Income Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Medical Products - 0.6%
$2,000,000 Universal Hospital Services, Inc., 10.25%
senior notes, due 3/1/08......................$1,895,000
Music/Clubs - 1.8%
4,000,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08...........4,140,000
4,000,000 V2 Music Holdings PLC, zero coupon
senior discount notes, due 4/15/08(+)..........1,770,000
5,910,000
Printing - Commercial - 0.6%
2,000,000 World Color Press, Inc., 7.75%
senior subordinated notes, due 2/15/09(+)......1,980,000
Publishing - Periodicals - 1.3%
4,000,000 Transwestern Publishing Co. & TWP Capital
Corp. II, 9.625%, senior subordinated notes,
due 11/15/07...................................4,180,000
Radio - 1.0%
3,000,000 SFX Broadcasting, Inc., 10.75%
senior subordinated notes, due 5/15/06.........3,307,500
Real Estate Investment and Management - 1.3%
4,000,000 LNR Property Corp., 10.50%
senior subordinated notes, due 1/15/09.........4,160,000
Resorts and Theme Parks - 1.1%
2,000,000 Premier Parks, Inc., 9.25%
senior notes, due 4/1/06.......................2,095,000
2,000,000 Silverleaf Resorts, Inc., 10.50%
company guaranteed notes, due 4/1/08...........1,680,000
3,775,000
Retail - Discount - 0.6%
2,000,000 Pamida, Inc., 11.75%
senior subordinated notes, due 3/15/03.........1,995,000
Retail - Diversified - 0.6%
2,250,000 Eye Care Centers of America, Inc., 9.125%
company guaranteed notes, due 5/1/08...........1,954,688
Retail - Restaurants - 1.0%
3,000,000 Perkins Family Restaurant L.P., 10.125%
senior notes, due 12/15/07.....................3,210,000
Satellite Telecommunications - 0.4%
1,750,000 ICG Holdings, Inc., zero coupon
company guaranteed notes, due 5/1/06...........1,470,000
Special Purpose Acquisition Company - 0.9%
3,000,000 P&L Coal Holdings Corp., 9.625%
company guaranteed notes, due 5/15/08..........3,120,000
Steel Pipe and Tube - 0.2%
3,500,000 Steel Heddle Group, Inc., zero coupon
debentures, due 6/1/09...........................595,000
Telecommunication Equipment - 0.9%
3,000,000 Covad Communications Group, Inc., 12.50%
senior notes, due 2/15/09(+)...................3,045,000
Telecommunication Services - 14.1%
Allegiance Telecom, Inc.:
$1,750,000 zero coupon, senior discount notes,
due 2/15/08..................................$ 1,176,875
800,000 12.875%, senior notes, due 5/15/08................910,000
4,000,000 Bresnan Communications Group L.L.C., 8.00%
senior notes, due 2/1/09(+)....................4,110,000
4,000,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05.........4,460,000
5,000,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08..........5,587,500
4,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08.......................4,080,000
7,000,000 McLeodUSA, Inc., 9.25%
senior notes, due 7/15/07......................7,367,500
2,250,000 Nextel Partners, Inc., zero coupon
senior discount notes, due 2/1/09(+)...........1,448,437
NTL, Inc.:
4,000,000 zero coupon, senior notes, due 4/15/05..........3,840,000
4,000,000 10.00%, senior notes, due 2/15/07...............4,320,000
1,000,000 7.00%, convertible subordinated notes,
due 12/15/08(+)................................1,428,750
3,000,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09(+)....................3,060,000
3,000,000 RSL Communications PLC, 10.50%
company guaranteed notes, due 11/15/08.........3,127,500
4,500,000 Telegroup, Inc., zero coupon
senior discount notes, due 11/1/04(+)..........1,901,250
46,817,812
Telephone - Local - 1.9%
5,000,000 e.Spire Communications, Inc., zero coupon
senior discount notes, due 4/1/06..............3,537,500
3,000,000 MGC Communications, Inc., 13.00%
senior notes, due 10/1/04......................2,812,500
6,350,000
Television - 1.6%
2,000,000 Central European Media Enterprises, Ltd.
9.375%, senior notes, due 8/15/04..............1,815,000
3,000,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07.........3,382,500
5,197,500
Textile - Products - 1.8%
4,000,000 Collins & Aikman Floorcovering, Inc., 10.00%
senior subordinated notes, due 1/15/07.........4,195,000
2,000,000 Glenoit Corp., 11.00%
company guaranteed notes, due 4/15/07..........1,847,500
6,042,500
Transportation - Services - 1.2%
4,000,000 Atlantic Express Transportation Corp., 10.75%
company guaranteed notes, due 2/1/04...........4,110,000
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 11
<PAGE>
Janus High-Yield Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Wire and Cable Products - 1.0%
$3,000,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05........$ 3,176,250
Wireless Equipment - 0.3%
1,000,000 Advanced Radio Telecom Corp., 14.00%
senior notes, due 2/15/07........................858,750
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $306,159,232)...................301,139,245
- -----------------------------------------------------------------------
Foreign Bonds - 1.5%
GBP 5,000,000 NTL, Inc., zero coupon
senior notes, due 4/15/09 (cost $5,003,794)....4,890,679
- -----------------------------------------------------------------------
Preferred Stock - 2.5%
Cable Television - 1.0%
16,460 Adelphia Communications Corp.
- Series D, convertible, 5.50%.................3,366,070
Internet Software - 1.0%
65,655 PSINet, Inc. - Series C, convertible, 6.75%.....3,348,405
Telecommunication Services - 0.5%
22,095 Qwest Trends Trust, convertible, 5.75%(+).......1,640,554
- -----------------------------------------------------------------------
Total Preferred Stock (cost $7,497,216).......................8,355,029
- -----------------------------------------------------------------------
Warrants - 0.2%
Computer Services - 0.2%
4,000 Bell Technology Group, Ltd. - expires
5/1/05*.....................................$ 630,000
975 Splitrock Services, Inc. - expires 7/15/08*........82,875
712,875
Music/Clubs - 0%
4,000 V2 Music Holdings PLC - expires 4/15/08*(,+)............0
- -----------------------------------------------------------------------
Total Warrants (cost $48,750)...................................712,875
- -----------------------------------------------------------------------
Total Investments (total cost $318,708,992) - 95.2%.........315,097,828
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 4.8%..........................................16,021,760
- -----------------------------------------------------------------------
Net Assets - 100%..........................................$331,119,588
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
12 Janus Income Funds / April 30, 1999
<PAGE>
Janus Federal Tax-Exempt Fund
[Darrell W. Watters]
Darrell Watters
portfolio manager
Janus Federal Tax-Exempt Fund returned 1.65% for the six-month period ended
April 30, 1999. This compares with a 1.75% return for the Lehman Brothers
Municipal Bond Index.(1)
After experiencing extreme volatility last fall, the investment markets settled
down and returned to "business as usual" during the period. The Federal Reserve
Board had a central role in restoring investors' confidence, cutting short-term
interest rates again in November, following cuts in September and October.
Tax-free rates, which had been fairly stable even during the worst of the credit
crunch, continued that pattern right through the end of April.
The prospect of further rate cuts dimmed somewhat late in the period as it
became clear that U.S. economic growth was more robust than expected. However,
mild inflation domestically and generally sluggish growth abroad made it
unlikely that rates would rise significantly over the near term. At this time,
upward and downward pressures on interest rates seem roughly in balance.
As always, our overall strategy is to keep the Fund's average duration close to
that of its Index. Within that framework, we seek to maximize current income
while limiting price volatility. In addition, we've maintained the Fund's
exposure to Colorado double-tax-exempt bonds at roughly one-third of assets.
Doing so provides a steady stream of attractive opportunities that are close
enough for us to check on regularly, a compelling benefit when evaluating
municipal development projects. Another constant is the care with which we
analyze our positions for quality of management, location, parking, use patterns
and other relevant factors.
One position that did particularly well for us during the period was our Denver
West Metropolitan District bonds. Only a few years old, Denver West is a
thriving office park and retail development on Denver's west side. Denver West
was already one of the most successful real estate projects ever seen in
Colorado, and our position was helped further with the recent announcement that
the development would be sold. To replace that holding, we established a
significant position in the securities of Parker Jordan Metropolitan
District, a middle- to upper-middle-income housing development. This development
is situated in Douglas County, Colorado, currently one of the fastest-growing
counties in the nation. Before making the purchase, we had an opportunity to
talk with both the developers and the consultants who were brought in to advise
the municipality. We came away from those meetings extremely impressed with the
project's potential.
Going forward, my outlook for the Fund is positive. As I mentioned earlier, the
movement of interest rates is closely tied to inflation expectations, and
because inflation is currently muted, there seems to be no cause for rates to
rise. The only reason for concern on the inflation front might be the recent
surge in oil prices. We should
(continued on next page)
<TABLE>
<CAPTION>
FUND PROFILE April 30, 1999 October 31, 1998
- --------------------------------------------------------------
<S> <C> <C>
Weighted Average Maturity 12.5% 10.7%
Average Modified Duration* 8.2 Yrs. 6.7 Yrs.
30-Day Average
Yield** 4.70% 4.78%
30-Day Average Yield
Without Reimbursement** 4.11% 4.50%
Average Rating AA2 AA
- ---------------------------------------------------------------
</TABLE>
*A theoretical measure of price volatility.
**Yields will fluctuate.
<TABLE>
<CAPTION>
PORTFOLIO ASSET MIX April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Corporate Bonds 0.5% 0.5%
Essential Service Revenue Bonds 75.0% 80.0%
General Obligation Bonds 24.5% 19.5%
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Income Funds / April 30, 1999 13
<PAGE>
remember, however, that strength in oil prices depends to a considerable extent
on the ability of OPEC to limit production. Historically, OPEC has not been able
to maintain a united front on proposed production cuts. Therefore, the rise in
oil prices may be short-lived unless we see a pickup on the demand side of the
equation.
With respect to the surprisingly strong growth in the U.S. economy during the
first quarter of 1999, it's worth remembering that in the past several years,
the economy has had a pattern of surging in the first quarter and then leveling
off afterwards. It's therefore reasonable to expect some moderation in growth as
1999 progresses, which would also be a favorable influence on interest rates.
Finally, many observers are forecasting a slowdown in the economy, especially in
the technology area, because companies are postponing major spending projects
until more is known about the Year 2000 phenomenon. This, too, should help keep
inflation subdued.
Stable interest rates and strong economic growth should result in a steady
supply of new tax-free issuance. In turn, healthy supply has the effect of
insuring plenty of attractive investment opportunities for the Fund while
keeping a lid on price increases and exerting a mild upward influence on yields.
In conclusion, I'd like to thank you for your investment in Janus Federal
Tax-Exempt Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Federal Tax-Exempt Fund and the Lehman Brothers Municipal Bond Index.
Janus Federal Tax-Exempt Fund is represented by a shaded area of blue. The
Lehman Brothers Municipal Bond Index is represented by a solid black line. The
"y" axis reflects the value of the investment. The "x" axis reflects the
computation periods from inception, May 3, 1993 through April 30, 1999. The
lower right quadrant reflects the ending value of the hypothetical investment in
Janus Federal Tax-Exempt Fund at $13,958 as compared to the Lehman Brothers
Municipal Bond Index at $14,660.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 6.31%
Five Year, 6.66%
Since 5/3/99*, 5.73%
JANUS FEDERAL TAX-EXEMPT FUND - $13,958
Lehman Brothers
Municipal Bond Index - $14,660
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
advisor voluntarily waives a portion of the fund's expenses, but reserves the
right to change the level of waiver. Without such waivers, yields and total
returns would be lower. 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.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds - 0.5%
Gambling - Non-Hotel Casinos - 0.5%
$ 500,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01
(cost $512,413)................................$ 510,000
- -----------------------------------------------------------------------
Municipal Securities - 95.8%
Arizona - 2.6%
1,500,000 Phoenix, Series A, 4.50%, 7/1/15................1,441,875
1,500,000 Winslow Industrial Development Authority
Hospital Revenue, (Winslow Memorial
Hospital Project), 5.50%, 6/1/22...............1,470,000
2,911,875
California - 8.1%
1,000,000 California Educational Facilities Authority
Revenue, (Stanford University), Series P,
5.25%, 12/1/13.................................1,072,500
400,000 California Statewide Communities Development
Authority Certificates of Participation,
Variable Rate, 4.10%, 4/1/28.....................400,000
$3,000,000 California, 4.75%, 2/1/19......................$2,898,750
2,000,000 East Bay Municipal Utilities District Water
System Revenue (MBIA Insured),
6.00%, 6/1/12..................................2,155,000
300,000 Los Angeles Regional Airports Improvement
Corp. Lease Revenue, (American Airlines -
Los Angeles International), (Wachovia Bank
of Georgia Insured), Series G,
Variable Rate, 4.25%, 12/1/24....................300,000
1,000,000 M-S-R Public Power Agency Revenue (San Juan
Project), (MBIA Insured), Series E,
6.50%, 7/1/17..................................1,071,250
1,000,000 Metropolitan Water District of Southern
California Waterworks Revenue,
5.50%, 7/1/13..................................1,052,500
8,950,000
</TABLE>
See Notes to Schedules of Investments.
14 Janus Income Funds / April 30, 1999
<PAGE>
Janus Federal Tax-Exempt Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Colorado - 33.1%
$2,000,000 Adams County Pollution Control Revenue,
(Public Service of Colorado Project), Series A,
(MBIA Insured), 5.625%, 4/1/08................$2,117,500
985,000 Bachelor Gulch Metropolitan District,
6.80%, 12/1/06.................................1,040,406
500,000 Black Hawk, 5.70%, 12/1/12........................526,250
Black Hawk Device Tax Revenue:
500,000 6.00%, 12/1/11....................................523,125
650,000 5.50%, 2/1/12.....................................649,187
1,250,000 5.625%, 12/1/21.................................1,229,688
Boulder County Hospital Revenue,
(Longmont United Hospital Project):
1,000,000 5.50%, 12/1/12..................................1,016,250
1,000,000 5.60%, 12/1/17..................................1,011,250
1,000,000 Castle Rock Golf Enterprise Revenue,
6.50%, 12/1/16.................................1,045,000
Colorado Housing Financial Authority
(Single Family Program):
1,000,000 Series C-2, 7.10%, 5/1/15.......................1,105,000
1,000,000 Series B-3, 6.80%, 11/1/28......................1,116,250
1,000,000 Denver City and County Airport Revenue,
(MBIA Insured), Series D, 5.50%, 11/15/25......1,031,250
1,000,000 Denver Health and Hospital Revenue, Series A,
5.375%, 12/1/18..................................982,500
Denver West Metropolitan District:
590,000 Series B, 5.60%, 12/1/12..........................612,125
265,000 6.15%, 12/1/13....................................282,556
750,000 6.50%, 12/1/16....................................807,188
615,000 6.20%, 6/1/17.....................................646,519
775,000 Series B, 5.70%, 12/1/17..........................791,469
E-470 Public Highway Authority Revenue,
(MBIA Insured), Series A:
2,000,000 4.75%, 9/1/23...................................1,892,500
1,000,000 5.00%, 9/1/26.....................................978,750
Eaglebend Affordable Housing Corp.
Multifamily Revenue, (Housing Project):
1,000,000 Series A, 6.40%, 7/1/17.........................1,057,500
1,300,000 Series B, 7.40%, 7/1/21.........................1,340,625
1,000,000 Erie Water Enterprise Revenue, Series B,
6.00%, 12/1/17.................................1,118,750
2,000,000 Fort Collins Pollution Control Revenue,
(Anheuser-Busch Project), 6.00%, 9/1/31........2,140,000
1,000,000 Glenwood Springs Sales and Use Tax Revenue,
(MBIA Insured), 4.80%, 10/1/18...................965,000
Hyland Hills Metropolitan Parks and
Recreation District Special Revenue,
Series A:
850,000 6.20%, 12/15/06...................................846,812
410,000 6.10%, 12/15/09...................................423,325
500,000 6.75%, 12/15/15...................................545,000
1,000,000 Mountain Village Metropolitan District, San
Miguel County, 8.10%, 12/1/11..................1,136,687
1,835,000 Parker Jordan Metropolitan District, Series B,
6.10%, 12/1/17.................................1,818,944
115,000 Plains Metropolitan District, 5.85%, 12/1/05......116,308
$1,000,000 Pueblo County Pollution Control Revenue,
(Public Service of Colorado Project),
(AMBAC Insured), 5.10%, 1/1/19................$ 996,250
Sand Creek Metropolitan District:
1,000,000 7.125%, 12/1/16.................................1,047,500
1,000,000 6.625%, 12/1/17.................................1,006,250
100,000 Telluride Excise Tax Revenue, 5.75%, 12/1/12......106,375
Telluride Housing Authority Housing
Revenue (Shandoka Apartments Project):
100,000 7.50%, 6/1/12.....................................106,750
1,500,000 7.50%, 6/1/23...................................1,616,250
Upper Cherry Creek Metropolitan
District:
500,000 6.20%, 12/1/05....................................526,875
400,000 6.75%, 12/1/11....................................441,500
36,761,464
Florida - 2.5%
3,000,000 Orange County Tourist Development Tax
Revenue, (AMBAC Insured), Series A,
4.75%, 10/1/24.................................2,831,250
Georgia - 4.7%
1,000,000 Atlanta Airport Facilities Revenue, (AMBAC
Insured), 5.00%, 1/2/03........................1,038,750
1,000,000 Atlanta, (FGIC Insured), 5.00%, 12/1/20...........990,000
1,525,000 Burke County Development Authority Pollution
Control Revenue, (Georgia Power Company -
Plant Vogtle), Variable Rate, 4.20%, 7/1/24....1,525,000
1,400,000 Georgia Municipal Electric Authority Power
Revenue, (MBIA Insured), Series Y,
6.50%, 1/1/17..................................1,650,250
5,204,000
Illinois - 4.6%
1,500,000 Cook County, Series B, (MBIA Insured),
5.375%, 11/15/18...............................1,524,375
1,000,000 Metropolitan Pier and Exposition Authority
Hospitality Facilities Revenue, (McCormick
Place Convention Center Project),
7.00%, 7/1/26..................................1,213,780
2,000,000 Regional Transportation Authority, (FGIC
Authority Insured), 6.00%, 6/1/23..............2,270,000
100,000 Sauget Pollution Control Revenue, (Monsanto
Co. Project), Variable Rate, 4.15%, 5/1/28.......100,000
5,108,155
Iowa - 0.2%
200,000 Muscatine County Pollution Control Revenue,
(Monsanto Co. Project), Variable Rate,
4.15%, 10/1/07...................................200,000
Louisiana - 0.2%
200,000 East Baton Rouge Parish Pollution Control
Revenue, (Exxon Project), Variable Rate,
4.25%, 3/1/22....................................200,000
Massachusetts - 2.1%
2,100,000 Massachusetts Water Reservoir Authority,
(MBIA Insured), Series A, 6.50%, 12/1/19.......2,286,375
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 15
<PAGE>
Janus Federal Tax-Exempt Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Minnesota - 2.1%
$ 440,000 Maplewood Multifamily Revenue (Hazel Ridge
Project), Series B, 7.50%, 12/15/32............$ 442,750
2,000,000 Northern Municipal Power Agency Electric
System Revenue, (AMBAC Insured), Series B,
4.75%, 1/1/20..................................1,940,000
2,382,750
Mississippi - 0.7%
740,000 Harrison County School District State Aid
Capital Improvement, (FSA Insured),
6.25%, 8/1/02....................................796,425
Montana - 2.5%
Montana Health Facilities Authority
Facilities Revenue:
750,000 (St. Peter's Community Hospital Project),
5.50%, 6/1/11....................................777,187
1,000,000 (Kalispell Regional Hospital Project),
(AMBAC Insured), 5.00%, 7/1/18...................976,250
1,000,000 Montana State Board of Investments,
(Payroll Tax), (MBIA Insured),
6.875%, 6/1/20.................................1,068,750
2,822,187
Nebraska - 2.5%
2,800,000 Douglas County Nebraska Zoo
Facilities Revenue, (Henry Doorly Zoo
Aquarium Project), 6.00%, 6/1/03...............2,804,788
New Jersey - 1.1%
1,000,000 New Jersey Turnpike Authority Turnpike
Revenue, (FSA Insured), Series C,
6.50%, 1/1/16..................................1,183,100
New Mexico - 3.3%
1,500,000 New Mexico Financing Authority Revenue,
(Federal Highway Grant Anticipated),
(AMBAC Insured), Series A, 4.25%, 9/1/06.......1,496,250
2,000,000 University of New Mexico University Revenues,
Series A, 6.00%, 6/1/21........................2,226,980
3,723,230
New York - 8.2%
Long Island Power Authority Electric
System Revenue, Series A:
3,000,000 5.25%, 12/1/26..................................3,007,500
2,600,000 Series A, 5.50%, 12/1/29........................2,658,500
1,000,000 New York, Series E, 4.90%, 8/1/17.................972,500
1,000,000 New York State Dorm Authority Revenues,
(State University Educational Facilities),
Series A, 5.50%, 5/15/19.......................1,056,250
1,345,000 St. Lawrence County Industrial Development
Civic Facilities Revenue, (St. Lawrence
University Project), (MBIA Insured), Series A,
5.375%, 7/1/18.................................1,385,350
9,080,100
North Carolina - 2.7%
3,000,000 North Carolina, (Public School
Building), 4.60%, 4/1/14.......................2,962,500
North Dakota - 1.4%
$1,500,000 Grand Forks Senior Housing Revenue,
(4000 VY Square Project), 6.375%, 12/1/34.....$1,520,625
Ohio - 1.6%
400,000 Cuyahoga County Hospital Revenue, (University
Hospital - Cleveland), 4.60%, 1/1/16.............400,000
1,250,000 Toledo-Lucas County Port Authority Port
Revenue, (Cargill Income Project),
5.90%, 12/1/15.................................1,350,000
1,750,000
Oklahoma - 1.0%
1,000,000 Tulsa Industrial Authority Revenue (University
of Tulsa), (MBIA Insured), Series A,
6.00%, 10/1/16.................................1,131,250
Puerto Rico - 0.9%
1,000,000 Puerto Rico Commonwealth, 5.00%, 7/1/28...........971,250
Texas - 7.8%
Grapevine Industrial Development Corp.
Revenue, (American Airlines), (Morgan
Guaranty Insured):
100,000 Series A-3, Variable Rate, 4.25%, 12/1/24.........100,000
400,000 Series A-4, Variable Rate, 4.25%, 12/1/24.........400,000
300,000 Series B-2, Variable Rate, 4.25%, 12/1/24.........300,000
400,000 Series B-3, Variable Rate, 4.25%, 12/1/24.........400,000
Gulf Coast Waste Disposal Authority
Pollution Control Revenue, (Monsanto
Co.),
Variable Rate:
100,000 4.15%, 7/1/01.....................................100,000
100,000 4.15%, 4/1/13.....................................100,000
70,000 Harris County Health Facilities Development
Corp. Revenue, (St. Lukes Episcopal
Hospital), Series B, Variable Rate,
4.25%, 2/15/27....................................70,000
3,000,000 Houston Independent School District, Series A,
(PSF Insured), 4.75%, 2/15/26..................2,801,250
1,500,000 Katy Independent School District, Series A,
(PSF Insured), 4.75%, 2/15/27..................1,400,625
500,000 McGee Creek Authority Water Revenue, (MBIA
Insured), 6.00%, 1/1/23..........................566,875
1,000,000 Orange County Naval and Port District
Industrial Development Corp. Revenue,
(North Star Steel Texas Project),
6.375%, 2/1/17.................................1,095,000
300,000 Tarrant County Housing Financing Corp.
Revenue (Multifamily Housing -Remington
Project), (FNMA Insured), Variable
Rate, 4.00%, 2/15/28.............................300,000
1,000,000 Texas State Public Financial Authority, Series C,
4.70%, 10/1/03.................................1,033,750
8,667,500
</TABLE>
See Notes to Schedules of Investments.
16 Janus Income Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- ---------------------------------------------------------------------------------------------
<C> <S> <C>
Wisconsin - 0.9%
$ 1,000,000 Wisconsin, Series D, 4.25%, 5/1/05................................$ 1,010,000
Wyoming - 1.0%
1,000,000 Sweetwater County Pollution Control Revenue,
(Idaho Power Co.), Series A, 6.05%, 7/15/26..........................1,068,750
- ---------------------------------------------------------------------------------------------
Total Municipal Securities (cost $104,854,640)....................................106,327,574
- ---------------------------------------------------------------------------------------------
U.S. Government Obligation - 1.9%
10,000,000 Strip of U.S. Treasury Bond
6.875%, 8/15/25 (cost $2,352,870)....................................2,135,550
- ---------------------------------------------------------------------------------------------
Total Investments (total cost $107,719,923) - 98.2%...............................108,973,124
- ---------------------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities -1.8%........................1,983,218
- ---------------------------------------------------------------------------------------------
Net Assets - 100%................................................................$110,956,342
- ---------------------------------------------------------------------------------------------
</TABLE>
AMBAC - American Municipal Bond Assurance Corp.
FGIC - Financial Guaranty Insurance Corp.
FNMA - Federal National Mortgage Association Corp.
FSA - Financial Security Assurance Corp.
MBIA - Municipal Bond Insurance Association Corp.
PSF - Permanent School Fund
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 17
<PAGE>
Janus Short-Term Bond Fund
[Sandy R. Rufenacht Photo]
Sandy Rufenacht
portfolio manager
For the six months ended April 30, 1999, Janus Short-Term Bond Fund gained
1.68%, while its benchmark, the Lehman Brothers 1-3 Year Government/Corporate
Bond Index, returned 1.43%.(1)
Interest rates were fairly stable during the period, following the extreme
volatility of last summer and early fall. In response to a lack of liquidity and
investors' diminishing confidence in the markets, the Federal Reserve Board
reduced short-term interest rates by a quarter-point in November, making a total
of three cuts in three consecutive months. Investors were reassured by the Fed's
aggressive action, and the price of Treasury securities, which had been driven
down to extremely low levels by panic buying, rebounded. As a result, yields
ticked downward, and the spread, or difference in yield, between Treasuries and
investment-grade bonds returned to more normal levels.
High-yield spreads also recovered somewhat, although not nearly as much as
investment-grade spreads. For us, the wider spreads were a welcome development
because there was more upside potential in undervalued securities, enabling us
to leverage our in-depth research capabilities.
We maintained our flexible strategy during the period, investing a majority of
the Fund's assets in investment-grade bonds with maturities of one to
three years. We also held smaller positions in Treasuries, high-yield bonds and
cash equivalents. High-yield bonds, which involve higher credit risk than
investment-grade bonds, are attractive because they offer generous yields that
often enhance the overall performance of the Fund. And we've found that by
shifting our allocations among these different assets, we can respond
effectively to changes in interest rates.
Because of the strong correlation between high-yield bonds and equities, we
invest only in bonds of companies in which we can leverage the thorough research
of our outstanding team of equity analysts. We also look for situations in which
the security has a high probability of being called by the issuer, typically at
a profit.
One standout in this area of the market was Casino America, a company that owns
several successful casinos, mostly in the southeastern U.S. This company
refinanced its debt on more favorable terms and called our bonds at
a premium.
While I was satisfied with the overall performance of the Fund, some of our
holdings fell short of expectations. One in particular, Haynes International, a
manufacturing company, suffered from both merger integration concerns and its
exposure to the foundering economies of Southeast Asia. On a positive note,
Haynes is owned by
<TABLE>
<CAPTION>
FUND PROFILE April 30, 1999 October 31, 1998
- --------------------------------------------------------------------
<S> <C> <C>
Weighted Average Maturity 2.8 Yrs. 2.6 Yrs.
Average Modified Duration* 2.5 Yrs. 2.3 Yrs.
30-Day Average
Yield** 5.57% 4.89%
30-Day Average Yield
Without Reimbursement** 5.22% 4.44%
Average Rating A A+
- ------------------------------------------------------------------
</TABLE>
*A theoretical measure of price volatility.
**Yields will fluctuate.
<TABLE>
<CAPTION>
PORTFOLIO ASSET MIX April 30, 1999 October 31, 1998
- -----------------------------------------------------------------
<S> <C> <C>
Investment-Grade
Corporate Bonds 66.4% 60.2%
High-Yield/High-Risk
Corporate Bonds 14.9% 12.4%
U.S. Treasury Notes 13.2% 24.4%
Cash & Cash
Equivalents 5.5% 3.0%
- -----------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
Past performance does not guarantee future results.
18 Janus Income Funds / April 30, 1999
<PAGE>
Blackstone, a firm that has historically been willing to invest in its companies
to ensure their success. Therefore, we continue to hold a small position in
Haynes.
We are confident that as long as interest rates don't move too much in either
direction, Fund performance should remain solid. Currently, we believe the
prospects for stable interest rates are good. Strong growth in the U.S. economy,
which under some conditions might trigger a rise in interest rates, is being
offset by sluggish growth abroad and negligible inflation domestically. In
addition, some economists are predicting a slowdown in growth, especially in the
technology area, as we approach the year 2000.
With interest rates at current levels, our investment-grade and Treasury
holdings should hold their own. Meanwhile, the Fund's high-yield securities
should continue to add value as the improving fundamentals of those companies
result in higher prices for their high-yield debt. On the other hand, companies
experiencing a positive change in their basic business prospects are in a
stronger position to refinance their high-yield debt on better terms, in which
case our bonds will be called at a profit. Either scenario is favorable for the
Fund.
In conclusion, thank you for your investment in Janus Short-Term Bond Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Short-Term Bond Fund and the Lehman Brothers 1-3 Year
Government/Corporate Bond Index. Janus Short-Term Bond Fund is represented by a
shaded area of blue. The Lehman Brothers 1-3 Year Government/Corporate Bond
Index is represented by a solid black line. The "y" axis reflects the value of
the investment. The "x" axis reflects the computation periods from inception,
September 1, 1992 through April 30, 1999. The lower right quadrant reflects the
ending value of the hypothetical investment in Janus Short-Term Bond Fund at
$14,063 as compared to the Lehman Brothers 1-3 Year Government/Corporate Bond
Index at $14,440.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 5.05%
Five Year, 5.87%
Since 9/1/92*, 5.26%
JANUS SHORT-TERM BOND FUND - $14,063
Lehman Brothers 1-3 Year
Government/Corporate
Bond Index - $14,440
]
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
advisor voluntarily waives a portion of the fund's expenses, but reserves the
right to change the level of waiver. Without such waivers, yields and total
returns would be lower. 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.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Corporate Notes - 81.3%
Cable Television - 2.0%
$ 675,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06........$ 757,688
2,000,000 TCI Communications, Inc., 6.375%
senior notes, due 9/15/99......................2,007,500
2,765,188
Casino Hotels - 0.7%
500,000 Caesars World, Inc., 8.875%
senior subordinated notes, due 8/15/02...........502,500
500,000 Circus Circus Enterprises, Inc., 6.70%
debentures, due 11/15/03.........................475,000
977,500
Computers - Micro - 2.6%
3,500,000 IBM Corp., 6.375%
notes, due 6/15/00.............................3,535,000
Consulting Services - 0.6%
800,000 Comdisco, Inc., 5.95%
notes, due 4/30/02...............................796,000
Containers - Paper and Plastic - 1.5%
$ 490,000 Container Corp. of America, 11.25%
senior notes, due 5/1/04.......................$ 519,400
1,000,000 Plastic Containers, Inc., 10.00%
senior notes, due 12/15/06.....................1,060,000
500,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02................522,500
2,101,900
Distribution and Wholesale - 0.3%
350,000 Herff Jones, Inc., 11.00%
senior subordinated notes, due 8/15/05...........380,187
Diversified Financial Services - 2.7%
3,750,000 Associates Corp. N.A., 5.85%
senior notes, due 1/15/01......................3,764,062
Diversified Operations - 2.1%
3,000,000 Warner-Lambert Co., 5.75%
notes, due 1/15/03.............................2,996,250
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 19
<PAGE>
Janus Short-Term Bond Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Electric - Integrated - 3.6%
$1,500,000 Niagara Mohawk Power Corp., 6.50%
senior notes, due 7/1/99.......................$1,501,875
3,500,000 Southern Cal Edison Co., 5.875%
notes, due 1/15/01..............................3,504,375
5,006,250
Finance - Auto Loans - 6.0%
Ford Motor Credit Co.:
3,750,000 6.25%, notes, due 11/8/00.......................3,782,812
2,000,000 5.125%, notes, due 10/15/01.....................1,972,500
2,500,000 General Motors Acceptance Corp., 6.375%
notes, due 12/1/01..............................2,534,375
8,289,687
Finance - Credit Card - 1.1%
1,500,000 American Express Credit Corp., 6.125%
senior notes, due 11/15/01......................1,518,750
Finance - Investment Bankers/Brokers - 2.7%
3,750,000 Merrill Lynch & Co., Inc., 6.00%
notes, due 3/1/01...............................3,764,063
Finance - Leasing Companies - 1.1%
1,500,000 AT&T Capital Corp., 7.50%
company guaranteed notes, due 11/15/00.........1,535,850
Finance - Other Services - 5.4%
1,000,000 Mellon Financial Co., 6.30%
senior notes, due 6/1/00........................1,006,610
950,000 Newcourt Credit Group, Inc., 6.875%
notes, due 2/16/05(+).............................970,187
2,000,000 Racers-Kellogg, 5.75%
notes, due 2/2/01(+)...........................2,007,500
3,500,000 Sears Roebuck Acceptance Corp., 6.00%
notes, due 3/20/03..............................3,478,125
7,462,422
Food - Flour and Grain - 2.5%
3,500,000 Archer Daniels Midland Co., 6.25%
notes, due 5/15/03..............................3,539,375
Food - Retail - 3.8%
1,500,000 Fred Meyer, Inc., 7.15%
company guaranteed notes, due 3/1/03............1,535,625
2,250,000 Safeway, Inc., 5.875%
notes, due 11/15/01............................2,252,813
1,310,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04..........1,444,275
5,232,713
Gambling - Non-Hotel Casinos - 0.9%
675,000 Argosy Gaming Co., 13.25%
company guaranteed notes, due 6/1/04..............762,750
500,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01..................510,000
1,272,750
Hotels and Motels - 2.0%
$1,500,000 Host Marriott Travel Plaza, 9.50%
senior notes, due 5/15/05......................$1,561,875
1,250,000 Hyatt Equities L.L.C., 6.80%
notes, due 5/15/00(+)...........................1,260,937
2,822,812
Independent Power Producer - 0.7%
950,000 Calpine Corp., 7.75%
senior notes, due 4/15/09.........................954,750
Manufacturing - 0.7%
1,200,000 Foamex Capital Corp., 13.50%
company guaranteed notes, due 8/15/05.............981,000
Medical - Drugs - 1.9%
2,550,000 SmithKline Beecham PLC, 6.75%
company guaranteed notes, due 10/30/01.........2,613,750
Metal - Diversified - 0.3%
500,000 Haynes International, Inc., 11.625%
senior notes, due 9/1/04..........................448,750
Metal Processors and Fabricators - 0.8%
1,000,000 Fairfield Manufacturing Co., Inc., 11.375%
senior subordinated notes, due 7/1/01...........1,040,000
Money Center Banks - 4.4%
3,000,000 BankAmerica Corp., 6.65%
senior notes, due 5/1/01........................3,052,500
3,000,000 Chase Manhattan Corp., 5.50%
notes, due 2/15/01..............................2,985,000
6,037,500
Multimedia - 5.3%
3,750,000 Time Warner, Inc., 6.10%
pass-thru asset trust securities,
due 12/30/01(+).................................3,768,750
3,500,000 Walt Disney Co. (The), 6.375%
senior notes, due 3/30/01.......................3,548,125
7,316,875
Paint and Related Products - 1.5%
2,000,000 Sherwin-Williams Co., 6.25%
notes, due 2/1/00...............................2,007,500
Physical Therapy and Rehabilitation Centers - 1.5%
2,000,000 HEALTHSOUTH Corp., 9.50%
senior subordinated notes, due 4/1/01...........2,055,000
Pipelines - 1.8%
2,500,000 Enron Corp., 6.45%
notes, due 11/15/01............................2,528,125
Retail - Discount - 3.9%
1,750,000 TJX Companies, Inc., 6.625%
notes, due 6/15/00..............................1,765,312
3,500,000 Wal-Mart Stores, Inc., 6.50%
notes, due 6/1/03...............................3,596,250
5,361,562
</TABLE>
See Notes to Schedules of Investments.
20 Janus Income Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- ----------------------------------------------------------------------------------
<C> <S> <C>
Retail - Leisure Products - 0.4%
$ 500,000 Selmer Co., Inc., 11.00%
senior subordinated notes, due 5/15/05.....................$ 533,750
Special Purpose Entity - 1.5%
2,000,000 Golden State Holdings, Inc., 6.75%
senior notes, due 8/1/01...................................2,005,000
Super-Regional Banks - 2.7%
3,750,000 NationsBank Corp., 5.75%
senior notes, due 3/15/01..................................3,759,375
Telecommunication Equipment - 2.6%
3,500,000 Lucent Technologies, Inc., 6.90%
notes, due 7/15/01.........................................3,596,250
Telecommunication Services - 1.4%
750,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05.......................836,250
950,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08......................1,061,625
1,897,875
Telephone - Local - 3.6%
3,000,000 Southwestern Bell Communications Capital
Corp., 6.375%, notes, due 4/1/01...........................3,037,500
1,850,000 US WEST Communications, Inc., 6.375%
notes, due 10/15/02........................................1,875,438
4,912,938
Telephone - Long Distance - 2.6%
3,000,000 MCI WorldCom, Inc., 6.125%
senior notes, due 8/15/01..................................3,015,000
500,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07...........................576,875
3,591,875
Utility - Integrated - 1.3%
$ 1,800,000 PECO Energy Co., 5.625%
first mortgage notes, due 11/1/01......................$ 1,791,000
Wire and Cable Products - 0.8%
International Wire Group, Inc.:
350,000 11.75%, company guaranteed notes,
due 6/1/05...................................................370,563
650,000 11.75%, senior subordinated notes,
due 6/1/05...................................................688,188
1,058,751
- ----------------------------------------------------------------------------------
Total Corporate Notes (cost $112,583,963)..............................112,252,385
- ----------------------------------------------------------------------------------
U.S. Government Obligation - 13.2%
U.S. Treasury Note
19,000,000 4.25%, due 11/15/03 (cost $18,345,858)....................18,237,340
- ----------------------------------------------------------------------------------
Short-Term Corporate Note - 2.8%
Household Finance Corp.
3,900,000 4.88%, 5/3/99 (amortized cost $3,898,943)..................3,898,943
- ----------------------------------------------------------------------------------
Total Investments (total cost $134,828,764) - 97.3%....................134,388,668
- ----------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities -2.7%.............3,696,078
- ----------------------------------------------------------------------------------
Net Assets - 100%.....................................................$138,084,746
- ----------------------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 21
<PAGE>
Janus Money Market Funds
[Sharon S. Pichler Photo]
Sharon Pichler
portfolio manager -
Janus Money Market
Fund
Janus Tax-Exempt
Money Market Fund
[J. Eric Thorderson Photo]
J. Eric Thorderson
portfolio manager -
Janus Government
Money Market Fund
For the twelve months ended April 30, 1999, Janus Money Market Fund ranked 62nd
out of 316 funds in the U.S. Money Market category, as monitored by Lipper,
Inc., a leading mutual fund rating company.(1) During the same period, Janus
Government Money Market Fund ranked 35th out of 118 in the U.S. Government Money
Market category,(2) while Janus Tax-Exempt Money Market Fund ranked 14th out of
129 in the U.S. Tax-Exempt Money Market category.(3)
The markets underwent a dramatic shift away from the crisis mentality that
prevailed around the time of our last letter to you (November 1998). As we
anticipated, the Federal Reserve Board did cut short-term interest rates by
another quarter-point in November, bringing the total to three reductions in
three months. This aggressive easing of monetary policy was sufficient to
reassure investors in both the fixed-income and equity markets. In November and
December, spreads, or differences in yields, for the middle and long end of the
credit market narrowed substantially from their crisis peaks, while stocks
rallied strongly throughout the period. Much of this action occurred outside of
our investment universe, which focuses on debt instruments with maturities of
one year or less. However, there was some spillover into the short-term market,
and we took advantage of some of the bargains created by this volatility.
Since the end of 1998, it has become clear that, virtually alone among the
world's economies, the U.S. is still growing vigorously. Thus, while there
appears to be no need for the Fed to further reduce interest rates as a means of
stimulating economic growth, the lack of inflation domestically and economic
softness abroad would dictate not raising rates either. Either way, there seems
to be stability for the moment, at least with respect to interest rate
pressures.
Strategically, we extended the average maturity of our taxable and government
funds when last fall's market volatility resulted in higher yields at the longer
end of our investment spectrum. The average weighted maturity at the end of
April reflects our current feeling that interest rates should experience little
change over the short term. The average weighted maturity was 55 days for Janus
Money Market Fund, 22 days for Janus Government Money Market Fund, and 58 days
for Janus Tax-Exempt Money Market Fund.
In the tax-exempt area, instruments with shorter maturities are normally heavily
influenced by supply and demand. For the past several months, demand has
outstripped supply, keeping tax-exempt rates quite low relative to taxable
rates. We expect this situation to be relieved somewhat as we move into the
summer months, when issuance of municipal notes usually increases. At that
point, we expect to see some opportunities to purchase longer-term tax-exempt
paper at more favorable rates. Normally, we look for tax-exempt yields that are
at least 65% to 70% of the yields on comparable taxable securities. In addition,
when considering any position, whether taxable or tax-exempt, we depend on
in-depth credit analysis and careful examination of the potential risks and
rewards.
Right now, the Funds are positioned appropriately for a relatively stable
interest rate environment. Should the outlook change, we have the flexibility to
respond by adjusting the average maturity of our holdings. If 1998 taught us
anything, it's that flexibility is crucial to successfully navigating
these rapidly changing markets. That will certainly
be one of our guiding principles as we proceed through the remainder of 1999.
Thank you for your continued investment in Janus Money Market Funds.
(1) Lipper, Inc. defines a U.S. money market fund as one that invests "in
high-quality financial instruments rated in the top two grades with
dollar-denominated average maturities of less than 90 days" and that intends
"to keep constant net asset value." As of April 30, 1999, Janus Money Market
Fund ranked 46/274 U.S. money market funds for the 3-year period.
(2) Lipper, Inc. defines a U.S. government money market fund as one that
"invests principally in financial instruments issued or guaranteed by the
U.S. government, its agencies or instrumentalities, with dollar-weighted
average maturities of less than 90 days" and that intends "to keep constant
net asset value." As of April 30, 1999, Janus Government Money Market Fund
ranked 23/103 U.S. government money market funds for the 3-year period.
(3) Lipper, Inc. defines a tax-exempt money market fund as one that "invests in
high-quality municipal obligations with dollar-weighted average maturities
of less than 90 days" and that intends "to keep constant net asset value."
As of April 30, 1999, Janus Tax-Exempt Money Market Fund ranked 15/121 U.S.
tax-exempt money market funds for the 3-year period. Lipper rankings are
based on total return, including reinvestment of dividends and capital
gains.
An investment in the Fund(s) is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any over government agency. Although the Fund(s) seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund(s).
Past performance does not guarantee future results.
22 Janus Income Funds / April 30, 1999
<PAGE>
Janus Money Market Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Short-Term Corporate Notes - 11.8%
$100,000,000 Bank America Corp. 4.84%, 10/19/99..........$ 97,701,000
Bankers Trust Company, New York:
50,000,000 4.94%, 7/7/99.................................49,540,306
50,000,000 4.95%, 7/30/99................................49,381,250
50,000,000 4.94%, 10/15/99...............................48,854,194
50,000,000 4.94%, 10/29/99...............................48,758,139
50,000,000 Banque et Caisse D'Epargne de L'etat
4.83%, 11/15/99..............................48,671,750
50,000,000 Bear Stearns Companies, Inc.
4.86%, 5/27/99...............................49,824,500
BT Alex Brown, Inc.:
25,000,000 4.90%, 5/18/99................................24,942,153
25,000,000 4.92%, 6/18/99................................24,836,000
50,000,000 4.90%, 6/21/99................................49,652,917
50,000,000 4.90%, 7/6/99.................................49,550,833
Heller Financial, Inc.:
25,000,000 4.87%, 5/3/99.................................24,986,472
25,000,000 4.88%, 5/12/99................................24,962,722
HSBC America, Inc.:
25,000,000 5.41%, 5/24/99................................24,913,447
50,000,000 4.91%, 7/6/99.................................49,549,917
PHH Corp.:
50,000,000 4.89%, 5/3/99.................................49,993,208
55,000,000 4.92%, 5/4/99.................................54,977,450
- -----------------------------------------------------------------------
Total Short-Term Corporate Notes
(amortized cost $771,096,258)..............................771,096,258
- -----------------------------------------------------------------------
Taxable Variable Rate Demand Notes - 6.8%
10,110,000 Bannockburn Associates L.L.C.
4.95%, 4/1/27................................10,110,000
15,475,000 California HFA, 4.95%, 8/1/05(+)..............15,475,000
13,260,000 Community Health System, Inc. Series A,
5.05%, 10/1/03...............................13,260,000
15,510,000 Crouse Health Hospital, Inc.
4.98%, 7/1/17................................15,510,000
25,000,000 Crozer-Keystone Health Systems
4.98%, 12/15/21..............................25,000,000
36,530,000 Cuyahoga County, Ohio Continuing Care
Facilities Revenue, 4.99%, 2/1/29............36,530,000
9,100,000 Eagle County, Colorado Housing Facility
Revenue, (BC Housing L.L.C. Project),
Series A, 4.9025%, 6/1/27.....................9,100,000
20,000,000 Episcopal Health Services, Inc., New York
5.05%, 3/1/28................................20,000,000
15,000,000 Eufaula, Alabama Industrial Development
Board, (Chia Tai Project), 5.07%, 6/1/13.....15,000,000
12,600,000 Genesys Michigan Health System, Inc., Series A,
4.93%, 4/1/20................................12,600,000
8,400,000 H/M Partners L.L.C., 4.90%, 10/1/20............8,400,000
6,300,000 Jackson County, Alabama Industrial
Development Board Revenue, (Beaulieu
America Project), 5.00%, 7/1/10...............6,300,000
20,000,000 Lenexa, Kansas Industrial Revenue, (Labone,
Inc. Project), Series A, 4.98%, 9/1/09.......20,000,000
$ 59,000,000 Los Angeles, California Community
Redevelopment Agency, Series A,
5.00%, 12/1/18.............................$ 59,000,000
20,675,000 Louisiana Health Systems Corp. Revenue,
Series B, 4.96%, 10/1/22.....................20,675,000
34,805,000 Montgomery, Alabama BMC Special Care
Facilities Financing Authority, (Baptist
Medical Center), Series C, 4.90%, 11/15/29...34,805,000
10,000,000 Patrick Schaumburg Auto, 4.98%, 7/1/08........10,000,000
37,000,000 Racetrac Capital L.L.C., 4.90%, 4/1/18........37,000,000
25,000,000 Rehau, Inc., 5.04%, 10/1/19...................25,000,000
16,720,000 Rockland Financial, Ltd., 4.95%, 12/1/26......16,720,000
15,000,000 St. Francis Place, Ltd., 4.98%, 12/1/08(+)....15,000,000
15,000,000 T3 Holdings, Inc. (Ocean Spray Cranberries,
Inc.), 4.90%, 5/1/08.........................15,000,000
5,090,000 Union City, Tennessee Industrial Development
Board, (Cobank Limited L.L.C., Project),
5.00%, 1/1/25.................................5,090,000
- -----------------------------------------------------------------------
Total Taxable Variable Rate Demand Notes (cost
$445,575,000)..............................................445,575,000
- -----------------------------------------------------------------------
Floating Rate Notes - 25.5%
50,000,000 Abbey National Treasury Services
4.85%, 7/20/99(+)............................49,985,765
American Express Centurion:
35,000,000 4.9287%, 10/19/99.............................35,000,000
50,000,000 4.95%, 11/24/99...............................50,000,000
American Honda Finance Corp.:
25,000,000 4.975%, 7/27/99(+)............................25,000,000
80,000,000 4.98%, 8/16/99(+).............................80,000,000
25,000,000 4.9525%, 10/28/99(+)..........................24,996,302
75,000,000 4.97%, 10/28/99(+)............................75,000,000
30,000,000 4.9975%, 1/25/00(+)...........................29,989,167
25,000,000 4.98%, 3/23/00(+).............................24,995,622
58,000,000 Army and Air Force Exchange
5.00%, 5/24/99...............................58,000,000
Bayerische Landesbank, New York:
76,000,000 4.7909%, 5/10/99..............................75,997,540
75,000,000 4.93%, 12/7/99................................74,982,234
26,000,000 Chase Manhattan Corp.
4.96%, 1/20/00...............................25,986,909
CIT Group, Inc.:
100,000,000 4.80%, 7/21/99................................99,966,402
50,000,000 4.93%, 11/2/99................................49,995,040
100,000,000 5.00%, 2/14/00................................99,965,813
Countrywide Home Loan:
50,000,000 5.0037%, 8/30/99..............................50,000,000
50,000,000 5.00%, 10/6/99................................49,998,294
50,000,000 Crestar Bank, Richmond
5.00%, 1/28/00...............................49,996,364
100,000,000 Deutsche Bank, New York, 4.86%, 6/1/99........99,994,869
30,000,000 Eaton Corp., 5.125%, 4/17/00(+)...............30,000,000
50,000,000 Fleet National Bank, 4.94%, 12/6/99...........49,997,539
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 23
<PAGE>
Janus Money Market Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Floating Rate Notes - (continued)
$ 52,000,000 General Motors Acceptance Corp.
4.94%, 10/8/99............................$ 51,996,800
50,000,000 Generale Bank, New York
4.9062%, 10/27/99............................49,995,219
Morgan Guaranty Trust Co.:
40,000,000 4.905%, 6/7/99................................39,996,545
25,000,000 4.8562%, 9/27/99..............................24,995,047
100,000,000 4.95%, 11/29/99..............................100,000,000
PNC Bank N.A.:
25,000,000 4.9287%, 10/13/99.............................24,997,798
50,000,000 4.9487%, 10/13/99.............................50,000,000
25,000,000 4.9262%, 10/27/99.............................25,000,000
50,000,000 4.9871%, 11/3/99..............................50,000,000
35,000,000 Triangle Funding, Ltd. 5.04%, 10/15/99(+).....35,000,000
- -----------------------------------------------------------------------
Total Floating Rate Notes (cost $1,661,829,269)...........1,661,829,269
- -----------------------------------------------------------------------
Funding Agreements - 4.4%
160,000,000 General American Life Insurance Co.
(seven day demand), 5.12%, 12/31/05.........160,000,000
100,000,000 Prudential Funding Corp., (seven day demand)
4.9487%, 10/31/01...........................100,000,000
25,000,000 Transamerica Occidental Life Insurance Co.
(seven day demand), 4.90125%, 5/3/00.........25,000,000
- -----------------------------------------------------------------------
Total Funding Agreements (cost $285,000,000)................285,000,000
- -----------------------------------------------------------------------
Loan Participations - 3.9%
25,000,000 General Motors Acceptance Mortgage Corp.
4.9562%, 10/28/99............................24,983,671
232,485,000 Kamehameha Activities, 5.25%, 5/19/99........232,485,000
- -----------------------------------------------------------------------
Total Loan Participations (amortized cost $257,468,671).....257,468,671
- -----------------------------------------------------------------------
Certificates of Deposit - 14.0%
50,000,000 Bank of Nova Scotia, 5.12%, 2/16/00...........49,988,477
50,000,000 Banque Nationale de Paris, 4.96%, 12/22/99....49,987,575
25,000,000 Bayerische Landesbank, New York
5.72%, 5/6/99................................24,999,680
25,000,000 Canadian Imperial Bank of Canada Commerce
5.20%, 2/26/00...............................24,993,999
50,000,000 Chase Manhattan Bank USA, N.A.
5.685%, 8/3/99...............................50,112,581
Commerzbank A.G., New York:
30,000,000 5.02%, 2/4/00.................................29,993,365
30,000,000 5.07%, 2/9/00.................................29,993,249
25,000,000 5.31%, 3/1/00.................................24,993,973
30,000,000 5.09%, 4/12/00................................29,965,596
$ 25,000,000 Deutsche Bank, New York, 5.06%, 2/8/00......$ 24,992,525
HSBC Bank USA:
50,000,000 4.93%, 12/15/99...............................49,978,903
50,000,000 5.01%, 2/7/00.................................49,985,102
National Bank Canada, New York
17,000,000 5.76%, 6/10/99................................17,011,208
30,000,000 5.68%, 7/20/99................................29,996,220
25,000,000 4.81%, 7/23/99................................25,000,556
25,000,000 4.69%, 10/25/99...............................24,996,482
25,000,000 5.065%, 11/18/99..............................24,998,672
25,000,000 5.17%, 4/10/00................................24,990,901
Royal Bank of Canada, New York
50,000,000 5.07%, 1/31/00................................49,992,754
25,000,000 5.01%, 2/7/00.................................24,992,550
25,000,000 5.035%, 2/8/00................................24,991,589
145,000,000 5.12%, 3/21/00...............................144,922,924
30,000,000 Skandinaviska Enskilda Banken
5.16%, 4/26/00...............................29,985,715
25,000,000 Svenska Handelsbanken, New York
5.22%, 3/1/00................................24,993,968
25,000,000 UBS A.G. Stanford, 5.16%, 2/28/00.............24,992,008
- -----------------------------------------------------------------------
Total Certificates of Deposit (amortized cost
$911,850,572)..............................................911,850,572
- -----------------------------------------------------------------------
Promissory Notes - 13.7%
300,000,000 Goldman Sachs Group L.P., (same day put)
5.00%, 7/19/99..............................300,000,000
100,000,000 Goldman Sachs Group L.P., (seven day
demand), 5.05%, 12/3/99.....................100,000,000
100,000,000 Heller Financial, Inc. (seven day demand)
5.1175%, 1/12/00............................100,000,000
395,000,000 Lehman Brothers, Inc., (same day put)
4.1375%, 4/21/99.............................395,000,000
- -----------------------------------------------------------------------
Total Promissory Notes (cost $895,000,000)..................895,000,000
- -----------------------------------------------------------------------
Put Bonds - 1.3%
18,900,000 Bedford County, Virginia Industrial
Development Authority, Series 95D
5.00%, 6/9/99................................18,900,000
17,800,000 St. Joseph Health Systems of California,
Series A, 5.21%, 7/1/11......................17,800,000
44,745,723 West Labs, Series 1998 - 1, Class A
4.9125%, 2/25/00.............................44,745,723
- -----------------------------------------------------------------------
Total Put Bonds (cost $81,445,723)...........................81,445,723
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
24 Janus Income Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Bank Notes - 1.1%
$ 30,000,000 First Union National Bank
5.25%, 9/17/99..............................$30,000,000
18,000,000 Morgan Guaranty Trust Co.
5.75%, 10/8/99................................18,067,531
20,000,000 Toronto Dominion Bank, New York
5.71%, 5/24/99................................20,006,802
- -----------------------------------------------------------------------
Total Bank Notes (amortized cost $68,074,333)................68,074,333
- -----------------------------------------------------------------------
Repurchase Agreements - 17.6%
215,000,000 Barclays Capital, Inc.,
5.04%, dated 4/30/99, maturing 5/3/99,
to be repurchased at $215,090,300
collateralized by $8,875,000 in
American Express Master Trust,
5.60%-7.60%, 8/15/02-11/15/06; $500,000
in AT&T Universal Card Master Trust,
5.95%, 10/17/02; $10,000,000 in
BankBoston Commercial Loan Master,
5.40%, 2/16/06; $500,000 in BankBoston
Marine Asset Backed Trust, 6.82%,
4/15/13; $151,710,000 in BCI Home
Equity Loan, 5.06%-5.1775%, 3/29/24;
$3,500,000 in Capital Equipment
Receivables Trust, 6.28%, 6/15/00;
$3,000,000 in Capital One Master Trust,
5.02625%, 2/15/05; $2,305,000 in Case
Equipment Loan Trust, 5.83%, 2/15/05;
$7,770,000 in CIT Receivables Trust,
5.40%-6.50%, 4/15/11-12/15/11;
$5,305,000 in Citibank Credit Card
Master Trust I, 5.105%-6.35%,
8/15/02-1/15/10; $20,000,000 in
Daimler-Benz Vehicle Trust, 5.22%,
12/22/03; $1,250,000 in Deutsche
Floorplan Receivables Master Trust,
5.085%, 10/15/01; $23,160,000 in
Discover Card Master Trust I,
5.05125%-6.55%, 2/18/03-9/16/05;
$5,000,000 in First Bank Corporate Card
Master Trust, 6.40%, 2/15/03;
$6,555,000 in First USA Credit Card
Master Trust, 5.02875%-6.42%,
3/17/05-10/17/06; $2,840,000 in Fleet
Credit Card Master Trust, 4.96625%,
7/15/03; $900,000 in Ford Credit Auto
Loan Master Trust, 5.13%, 2/15/03;
$15,536,632 in Ford Credit Auto Owner
Trust, 5.81%, 3/15/02; $1,000,000 in
Illinois Power Special Purpose Trust,
5.54%, 6/25/09; $1,950,000 in Loop
Funding Master Trust, 5.18%, 12/26/06;
$900,000 in MBNA Master Credit Card
Trust, 5.25%, 2/15/06; $1,000,000 in
Mellon Bank Home Equity Loan Trust,
5.11625%, 4/15/26; $17,535,000
in Navistar Financial Corp. Owner
Trust, 5.94%-6.05%, 4/15/02-11/15/04;
$2,025,000 in Newcourt Receivables
Asset Trust, 6.24%-6.87%,
6/20/04-12/20/04; $10,000,000 in Nissan
Auto Receivables Grantor Trust, 5.45%,
4/15/04; $3,000,000 in Premier Auto
Trust, 6.35%, 4/6/02, $15,000,000 in
Providian Master Trust, 5.03625%,
12/15/05; $13,725,000 in Sears Credit
Account Master Trust, 7.00%-8.10%,
1/15/04-10/15/04; $10,145,000 in Toyota
Auto Leasing Trust, 5.45%, 3/25/03;
with respective values of $9,006,877,
$507,140, $10,000,000, $517,399,
$51,258,419, $3,192,759, $2,999,940,
$2,333,027, $2,653,597, $5,306,202,
$19,687,600, $1,250,375, $19,457,620,
$5,087,330, $6,677,754, $2,836,831,
$897,614, $15,639,795, $970,249,
$1,903,064, $884,770, $420,383,
$8,463,825, $366,612, $8,104,235,
$3,053,613, $14,977,620, $10,711,713
and $10,133,638............................$215,000,000
$150,000,000 Deutsche Bank Securities, Inc.,
5.04%, dated 4/30/99, maturing 5/3/99,
to be repurchased at $150,063,000
collateralized by $34,628,000 in
Deutsche Mortgage and Asset Receiving
Corp., 5.875%-5.17625%, 11/15/00; $32,951,000
in GE Capital Mortgage Services, Inc.,
9.8625%, 2/25/28; $32,500,000 in
Mortgage Capital Funding, Inc., 6.325%,
10/18/07; $21,550,854 in Nomura
Depositor Trust, 5.20625%, 1/15/03;
$34,510,000 in Residential Funding
Mortgage Securities, 10.3625%, 3/25/28;
with respective values of $34,628,000,
$32,293,031, $31,193,606,
$21,216,717 and $33,668,646.................150,000,000
160,000,000 HSBC Securities, Inc.,
5.05%, dated 4/30/99, maturing 5/3/99,
to be repurchased at $160,067,333
collateralized by $167,033,000 in U.S.
Treasury Bills, 4.32%-4.62%,
7/8/99-3/30/00; with a value of
$163,202,138................................160,000,000
300,000,000 JP Morgan Securities, Inc.,
5.08%, dated 4/30/99, maturing 5/3/99,
to be repurchased at $300,127,000
collateralized by $321,000,000 in TRW,
Inc., 5.46%-5.59%, 5/07/99-
6/28/99; with a value of $319,914,417.......300,000,000
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 25
<PAGE>
Janus Money Market Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Repurchase Agreements - (continued)
$325,000,000 NationsBank Corp.,
5.04%, dated 4/30/99, maturing 5/3/99,
to be repurchased at $325,136,500
collateralized by $135,883,000 in Bank
of America Mortgage Securities, 6.25%,
5/25/14; $18,272,000 in Citicorp
Mortgage Securities, Inc., 6.75%,
9/25/28; $9,945,000 in CMC Securities
Corp., 6.75%, 3/25/24; $32,000,000 in
CS First Boston Mortgage Securities
Corp., 5.96%, 12/15/07; $4,510,000 in
EQCC Home Equity Loan Trust,
6.45%-6.459%, 9/15/12-3/15/21;
$50,179,563 in Fannie Mae, 0%-15.34%,
1/25/08-8/25/26; $83,776,685 in Freddie
Mac, 0%-14.8333%, 3/15/11-12/15/28;
$33,886,000 in GE Capital Mortgage
Services, Inc., 6.50%-10.00%, 10/25/13-
12/25/23; $24,770,000 in Green Tree
Home Improvement Loan Trust,
6.80%-7.10%, 6/15/26-7/15/29;
$4,000,000 in Mellon Residential
Funding Corp., 6.50%, 2/25/28;
$1,000,000 in Merrill Lynch Mortgage
Investors, Inc., 7.24%, 4/25/28;
$9,906,000 in Morgan Stanley Capital,
5.91%, 11/15/31; $15,728,000 in
Mortgage Capital Funding, Inc.,
6.549%-7.35%, 7/15/05-5/18/08;
$3,358,000 in Nationslink Funding
Corp., 6.042%, 11/20/07; $16,927,000 in
PNC Mortgage Securities Corp., 6.50%,
12/25/28; $4,268,000 in Prudential Home
Mortgage Securities, 6.75%, 11/25/23;
$2,903,000 in Residential Funding
Mortgage Securities, 9.98895%,
10/25/08; $2,000,000 in The Money Store
Home Equity Trust, 8.40%, 2/15/24; with
respective values of $134,991,608,
$15,600,665, $9,872,899, $31,926,080,
$4,572,959, $17,151,431, $9,591,689,
$29,618,289, $24,408,496, $3,932,400,
$1,038,830, $9,840,224, $13,030,790,
$3,306,775, $16,089,655, $2,289,194,
$2,134,145 and $2,103,872................$ 325,000,000
- -----------------------------------------------------------------------
Total Repurchase Agreements (cost $1,150,000,000).........1,150,000,000
- -----------------------------------------------------------------------
Total Investments (total cost $6,527,339,826) - 100.1%....6,527,339,826
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.1%)............................................(4,915,865)
- -----------------------------------------------------------------------
Net Assets - 100%........................................$6,522,423,961
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
26 Janus Income Funds / April 30, 1999
<PAGE>
Janus Government Money Market Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Short-Term Corporate Notes - 5.4%
Private Export Funding Corp. (SLMA):
$45,000,000 4.68%-4.78%, 5/6/99..........................$ 44,970,604
10,000,000 4.81%, 5/27/99..................................9,965,261
25,000,000 4.85%, 6/15/99.................................24,848,438
17,600,000 4.81%, 6/28/99.................................17,463,610
5,000,000 4.76%, 9/15/99..................................4,909,428
4,836,000 4.80%, 10/29/99.................................4,719,291
- -----------------------------------------------------------------------
Total Short-Term Corporate Notes
(amortized cost $106,876,632)..............................106,876,632
- -----------------------------------------------------------------------
U.S. Government Agency Notes - 8.1%
Fannie Mae:
5,000,000 4.77%, 5/10/99..................................4,994,038
5,000,000 4.85%, 5/13/99..................................4,991,917
3,026,000 4.73%-4.85%, 6/4/99.............................3,012,377
10,000,000 5.265%, 7/16/99.................................9,888,850
5,000,000 6.35%, 8/10/99..................................5,015,586
5,000,000 4.48%, 9/29/99..................................4,906,044
3,010,000 4.775%, 11/12/99................................2,932,148
10,000,000 4.74%, 12/15/99.................................9,699,800
5,000,000 4.72%, 2/8/00...................................4,814,478
5,000,000 5.10%, 3/16/00..................................5,000,000
Federal Farm Credit Bank:
10,000,000 5.23%, 7/9/99...................................9,899,758
5,193,000 4.70%, 8/5/99...................................5,127,914
5,000,000 4.67%, 1/28/00..................................4,823,578
5,000,000 4.80%, 2/1/00...................................4,997,921
5,740,000 4.75%, 2/22/00..................................5,515,064
Federal Home Loan Bank System:
2,225,000 4.81%, 5/7/99...................................2,223,216
10,000,000 5.03%, 10/29/99................................10,000,000
5,000,000 4.52%, 1/7/00...................................4,842,428
5,000,000 4.66%, 2/7/00...................................4,817,483
5,000,000 4.79%, 2/17/00..................................4,805,739
5,000,000 4.95%, 2/24/00..................................4,988,600
6,140,000 5.05%, 2/25/00..................................6,140,000
10,000,000 5.10%, 3/3/00...................................9,994,464
10,000,000 5.16%, 3/8/00...................................9,999,173
5,000,000 5.01%, 4/28/00..................................4,997,173
Freddie Mac:
5,000,000 4.82%, 6/15/99..................................4,969,875
5,000,000 4.75%, 10/1/99..................................4,899,062
Sallie Mae
3,000,000 4.61%, 1/27/00..................................2,895,891
- -----------------------------------------------------------------------
Total U.S. Government Agency Notes
(amortized cost $161,192,577)..............................161,192,577
- -----------------------------------------------------------------------
U.S. Government Agency Variable Notes - 8.1%
Fannie Mae:
50,000,000 4.6875%, 7/28/99...............................49,986,499
10,000,000 4.82%, 9/17/99..................................9,997,715
Federal Farm Credit Bank:
10,000,000 4.73%, 6/22/99..................................9,998,746
20,000,000 4.85%, 12/28/99................................20,000,000
Federal Home Loan Bank System:
$ 15,000,000 4.7271%, 5/4/99..............................$ 14,999,867
10,000,000 4.897%, 8/12/99.................................9,998,343
10,000,000 4.82%, 1/19/00..................................9,997,880
15,000,000 4.80%, 4/5/00..................................14,993,172
5,000,000 4.917%, 4/7/00..................................4,998,169
5,000,000 4.967%, 4/24/00.................................4,998,570
5,000,000 4.997%, 4/28/00.................................4,998,016
Sallie Mae:
2,000,000 5.107%, 6/17/99.................................2,000,271
5,000,000 5.107%, 2/14/00.................................4,997,675
- -----------------------------------------------------------------------
Total U.S. Government Agency Variable Notes
(amortized cost $161,964,923)..............................161,964,923
- -----------------------------------------------------------------------
U.S. Government Guarantee Notes and Loans - 10.4%
Army and Air Force Exchange
12,000,000 5.025%, 5/21/99................................12,000,000
Malev Hungarian Airlines
(Export-Import Bank of the United States)
66,972,236 4.84%, 5/3/99..................................66,972,236
Washington Aircraft Hire
(Export-Import Bank of the United
129,370,641 States) 4.84%, 5/3/99........................129,370,641
- -----------------------------------------------------------------------
Total U.S. Government Guarantee Notes and Loans
(cost $208,342,877)........................................208,342,877
- -----------------------------------------------------------------------
Repurchase Agreements - 68.1%
67,600,000 ABN AMRO Securities, Inc., 4.90%,
dated 4/30/99, maturing 5/3/99, to be
repurchased at $67,627,603 collateralized by
$13,000,000 in Fannie Mae, 6.087%-6.437%,
4/24/25-9/23/25; $57,937,715 in Freddie
Mac, 5.3887%-6.125%, 1/15/08-1/15/29;
with respective values of $13,412,007 and
$55,801,592...................................67,600,000
375,000,000 ABN AMRO Securities, Inc., 4.96%,
dated 4/30/99, maturing 5/3/99, to be
repurchased at $375,155,000 collateralized
by $523,443,278 in Fannie Mae, 0%-8.50%,
11/25/08-11/1/38; $434,271,221 in Freddie
Mac, 0%-7.69%, 5/20/99-7/1/37; with
respective values of $191,470,403 and
$191,029,597.................................375,000,000
50,000,000 CS First Boston, Inc., 4.9875%, dated 4/30/99,
maturing 5/3/99, to be repurchased at
$50,020,781 collateralized by $45,136,000
in Fannie Mae, 6.00%-6.50%, 3/25/14-
11/25/28; $43,230,000 in Freddie Mac,
6.00%-7.00%, 2/15/14-2/15/29; with
respective values of $22,917,203 and
$28,247,872...................................50,000,000
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 27
<PAGE>
Janus Government Money Market Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Repurchase Agreements - (continued)
$495,000,000 Deutsche Bank Securities, Inc., 4.96%
dated 4/30/99, maturing 5/3/99, to be
repurchased at $495,204,600 collateralized
by $205,540,096 in Fannie Mae,
5.763%-9.012%, 8/25/23-5/20/28;
$344,561,603 in Freddie Mac, 6.00%-6.50%,
8/15/26-4/15/27; with respective values of
$167,408,162 and $337,491,838..............$ 495,000,000
130,000,000 Goldman, Sachs & Co., 4.50%
dated 4/30/99, maturing 5/3/99, to be
repurchased at $130,048,750 collateralized
by $99,156,000 in U.S. Treasury Note
11.75%, 2/15/10; with a value of
$132,600,856.................................130,000,000
44,100,000 HSBC Securities, Inc., 5.05%
dated 4/30/99, maturing 5/3/99, to be
repurchased at $44,118,559 collateralized by
$15,390,000 in Sallie Mae, 0%, 5/3/99;
$30,131,000 in U.S. Treasury Bills, 4.18%-
4.30%, 7/15/99-9/30/99; with respective
values of $15,383,844 and $29,602,021.........44,100,000
200,000,000 Morgan Stanley & Co., Inc., 5.03%
dated 4/30/99, maturing 5/3/99, to be
repurchased at $200,083,833 collateralized
by $530,571,420 in Fannie Mae,
5.862%-7.63%, 1/1/02-5/1/38 with a value
of $205,324,511..............................200,000,000
- -----------------------------------------------------------------------
Total Repurchase Agreements (cost $1,361,700,000).........1,361,700,000
- -----------------------------------------------------------------------
Total Investments (total cost $2,000,077,009) - 100.1%....2,000,077,009
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.1%)............................................(1,816,203)
- -----------------------------------------------------------------------
Net Assets - 100%........................................$1,998,260,806
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
28 Janus Income Funds / April 30, 1999
<PAGE>
Janus Tax-Exempt Money Market Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Municipal Securities - 94.1%
Alabama - 0.6%
$1,100,000 Athens Industrial Development Board Revenue,
(Coilplus Income Project), Variable Rate,
5.00%, 9/1/99................................$ 1,100,000
Arizona - 3.4%
1,000,000 Pinal County Industrial Development Authority
Hospital Revenue, (Casa Grande Regional
Medical Center), Variable Rate,
4.00%, 12/1/22.................................1,000,000
5,237,000 Tucson Industrial Development Authority
Multifamily Revenue, (Freedom Park
Apartment Project), Variable Rate,
5.70%, 12/1/07.................................5,237,000
6,237,000
California - 3.8%
1,000,000 California Higher Education Loan Authority,
Inc., Student Loan Revenue, Series A,
3.80%, 6/1/01..................................1,000,000
5,900,000 Hayward Housing Authority Multifamily
Revenue, (Huntwood Terrace Apartments),
Variable Rate, 5.10%, 3/1/27...................5,900,000
6,900,000
Colorado - 6.1%
1,585,000 Aurora Centretech Metropolitan District,
Series A, Variable Rate, 3.40%, 12/1/28........1,585,000
5,905,000 Denver City and County Multi-Family Housing
Revenue, (Ogden Residences Project),
Variable Rate, 4.35%, 12/1/09..................5,905,000
1,000,000 Dove Valley Metropolitan District, Arapahoe
County, Series B, 3.375%, 11/1/25..............1,000,000
1,000,000 Interstate South Metropolitan District, Series B,
3.375%, 11/1/14................................1,000,000
1,555,000 Stapleton Business Center Metropolitan District,
3.35%, 12/1/17.................................1,555,000
11,045,000
Florida - 6.2%
5,000,000 Gulf Breeze Healthcare Facilities Revenue,
(Heritage Healthcare Project), Variable Rate,
4.20%, 1/1/24(+)...............................5,000,000
5,000,000 Palm Beach County Educational Facilities
Authority Revenue, (Atlantic College Project),
Variable Rate, 4.05%, 12/1/12..................5,000,000
1,100,000 St. John's County Housing Financial Authority
Housing Revenue, (Multifamily), Variable
Rate, 3.95%, 2/15/28...........................1,100,000
200,000 Titusville Multi-Purpose Revenue, Variable Rate,
4.05%, 1/1/25....................................200,000
11,300,000
Georgia - 5.3%
200,000 Bartow County Development Authority
Pollution Control Revenue, (Georgia Power
Co. Plant Bowen Project), Variable Rate,
4.30%, 3/1/24....................................200,000
$3,300,000 Richmond County Development Authority
Pollution Control Revenue, (Monsanto Co.
Project), Variable Rate, 4.00%, 6/1/21.......$ 3,300,000
5,000,000 South Georgia Hospital Authority Revenue,
(Georgia Alliance Community Hospitals),
Series A, Variable Rate, 4.00%, 4/1/29.........5,000,000
1,000,000 Whitfield County Residential Care Facility
for the Elderly Authority, (Royal Oaks Senior
Living Community), Variable Rate,
4.00%, 11/1/25.................................1,000,000
9,500,000
Illinois - 7.3%
2,600,000 Chicago Metropolitan Water Reclamation
District - Greater Chicago, 4.70%, 12/1/99.....2,624,544
1,485,000 Chicago, (Emergency Telephone System),
4.50%, 1/1/00..................................1,496,588
1,395,000 Cook County School District (No. 069) Skokie,
3.15%, 12/1/99.................................1,395,000
1,000,000 Du Page Water Commission, 5.85%, 3/1/00.........1,021,960
3,000,000 Lombard Multifamily Housing (Clover Creek),
3.55%, 12/15/06................................3,000,000
2,400,000 Northlake Economic Development Revenue,
(Dominick's Foods), Subseries B, Variable
Rate, 4.35%, 1/1/02............................2,400,000
1,300,000 Sauget Pollution Control Revenue, (Monsanto
Co. Project), Variable Rate, 4.15%, 9/1/14.....1,300,000
13,238,092
Indiana - 1.1%
1,000,000 Indiana State University Revenue Building 3,
(Student Fee), Series E, 7.375%, 10/1/10.......1,057,671
1,000,000 Logansport Economic Development Revenue,
(Modine Manufacturing Co. Project), Variable
Rate, 3.60%, 1/1/08............................1,000,000
2,057,671
Iowa - 1.4%
2,500,000 Muscatine County Pollution Control Revenue,
(Monsanto Co. Project), Variable Rate,
4.15%, 10/1/07.................................2,500,000
Kansas - 1.9%
3,400,000 Wichita Revenue, (CSJ Health System of
Wichita), Variable Rate, 5.45%, 10/1/11........3,400,000
Louisiana - 0.6%
1,000,000 Louisiana Public Facilities Authority Revenue
Refunding, (River View), Variable Rate,
4.35%, 7/1/07..................................1,000,000
Massachusetts - 1.2%
2,000,000 Massachusetts Water Reservoir Authority,
Series A, 7.50%, 4/1/09........................2,117,587
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 29
<PAGE>
Janus Tax-Exempt Money Market Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Michigan - 4.6%
$6,300,000 Holland Economic Development Corp., (Thrifty
Holland, Inc.), Variable Rate, 4.20%, 3/1/13..$6,300,000
1,095,000 Huron Valley School District Refunding,
4.50%, 5/1/99..................................1,095,000
1,000,000 Kalamazoo City School District, Series C,
3.75%, 9/16/99.................................1,001,278
8,396,278
Minnesota - 4.2%
4,100,000 Golden Valley Industrial Development Revenue,
(Unicare Homes Project), Variable Rate,
4.20%, 9/1/14..................................4,100,000
600,000 New Brighton Industrial Development Revenue,
(Unicare Homes, Inc. Project), Variable Rate,
4.20%, 12/1/14...................................600,000
2,900,000 Robbinsdale Industrial Development Revenue,
(Unicare Homes, Inc. Project), Variable Rate,
4.20%, 10/1/14.................................2,900,000
7,600,000
Mississippi - 5.2%
500,000 Jackson, Series A, 5.30%, 5/1/00..................509,252
Mississippi Board of Trustees of
Institutions of Higher Learning:
1,095,000 Series B, 3.75%, 7/15/99(+).....................1,095,000
835,000 Series A, 3.15%, 1/15/00(+).......................835,000
7,000,000 Mississippi Business Financial Corp. Revenue,
(Mississippi College Project), Series B,
Variable Rate, 4.00%, 2/1/09...................7,000,000
9,439,252
Missouri - 1.3%
780,000 Kansas City Certificates of Participation,
3.60%, 9/28/99(+)................................780,000
1,400,000 Missouri Environmental Improvement and
Energy Reservoir Authority Pollution
Control Revenue, (Monsanto Co. Project),
Variable Rate, 4.10%, 6/1/23...................1,400,000
200,000 Missouri Health and Educational Facilities
Authority Educational Facilities Revenue,
Drury College), Series A, Variable Rate,
4.30%, 8/15/21...................................200,000
2,380,000
Nebraska - 0.9%
1,670,000 Grand Island Electric Revenue Refunding,
6.00%, 9/1/99..................................1,684,802
Nevada - 0.3%
585,000 Clark County Highway Improvement Revenue,
(Motor Vehicle Fuel Tax), 4.497%, 7/1/99.........585,872
New York - 1.3%
2,300,000 New York State Dormitory Authority Revenue,
(St. Francis Center at the Knolls), Variable
Rate, 4.30%, 7/1/23............................2,300,000
North Carolina - 0.2%
$ 400,000 Cumberland County Industrial Facilities and
Pollution Control Financing Authority
Revenue, (Monsanto Co. Project), Variable
Rate, 4.00%, 10/1/14..........................$ 400,000
Ohio - 3.3%
1,000,000 Champaign County Industrial Development
Revenue, (Allied-Signal Project), Variable
Rate, 4.15%, 11/1/07...........................1,000,000
2,000,000 Clinton County Hospital Revenue, (Ohio
Hospital Capital, Inc.), Variable Rate,
4.05%, 6/1/28..................................2,000,000
3,000,000 Hamilton County Health Systems Revenue,
(Franciscan Sisters of the Poor), Series A,
Variable Rate, 4.90%, 3/1/17...................3,000,000
6,000,000
Oklahoma - 1.0%
800,000 Oklahoma City Industrial and Cultural Facilities
Trust Revenue, (Oklahoma Christian College),
Variable Rate, 5.50%, 7/1/15.....................800,000
1,035,000 Tulsa County Home Financing Authority
Multifamily Housing Revenue, (Greenbriar
Project), Series B, Variable Rate,
4.15%, 3/15/05.................................1,035,000
1,835,000
Pennsylvania - 9.1%
1,000,000 Allegheny County Hospital Development
Authority Revenue, (South Hills Health
System), Variable Rate, 3.15%, 4/1/08..........1,000,000
1,180,000 Blair County Hospital Authority, (Altoona
Hospital Project), Series A, 3.75%, 7/1/99.....1,180,000
Dauphin County General Authority,
(Allied Health Pooled Financing
Program):
1,500,000 Series A, Variable Rate, 4.05%, 10/1/27.........1,500,000
5,800,000 Series B, Variable Rate, 4.05%, 10/1/27.........5,800,000
1,545,000 Erie County Hospital Authority Revenue,
(Hamot Health Foundation), Series A,
4.00%, 5/15/99.................................1,545,119
2,900,000 Pennsylvania Higher Educational Facilities
Authority Revenue, (CICU Financing
Program), Series B2, 2.95%, 11/1/99............2,900,000
1,200,000 Pennsylvania, Second Series, 5.00%, 10/15/99....1,208,816
1,300,000 Venango Industrial Development Authority,
(Pennzoil Co. Project), Variable Rate,
4.10%, 12/1/12.................................1,300,000
16,433,935
</TABLE>
See Notes to Schedules of Investments.
30 Janus Income Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Tennessee - 5.4%
Hamilton County Industrial Development
Board Industrial Development Revenue:
$ 200,000 (Komatsu America Manufacturing),
5.45%, 11/1/05.................................$ 200,000
5,000,000 (Tennessee Aquarium-IMAX), Variable Rate,
4.00%, 3/1/15..................................5,000,000
Montgomery County Public Building
Authority Pooled Financing Revenue:
1,100,000 (Montgomery County Loan), Variable Rate,
4.00%, 7/1/19..................................1,100,000
1,400,000 (Tennessee County), Variable Rate,
4.00%, 11/1/27.................................1,400,000
2,000,000 Signal Mountain Health Education, (Alexian
Village), Variable Rate, 3.30%, 1/1/28.........2,000,000
9,700,000
Texas - 1.3%
1,075,000 Longview Refunding and Improvement,
4.00%, 6/1/99..................................1,075,175
200,000 Metropolitan Higher Education Authority
(University of Dallas Project), Variable Rate,
4.95%, 12/1/04...................................200,000
1,000,000 Trinity River Authority Pollution Control
Revenue, (LaFarge Corp. Project),
Variable Rate, 3.70%, 6/1/02...................1,000,000
2,275,175
Utah - 0.3%
630,000 Springville Electric Revenue Refunding,
3.20%, 3/1/00....................................630,000
Virginia - 3.1%
Suffolk Redevelopment and Housing
Authority Multi-Family Housing Revenue:
2,883,000 (Rental-Windsor Potomac), Variable Rate,
4.30%, 12/1/07.................................2,883,000
338,000 Variable Rate, 3.80%, 12/1/07.....................338,000
2,300,000 Variable Rate, 4.30%, 12/1/07...................2,300,000
5,521,000
Washington - 5.9%
1,000,000 King County School District (No. 412)
Shoreline Refunding, 4.50%, 12/1/99............1,008,294
2,000,000 Washington Public Power Supply System
Nuclear Project (No. 3) Revenue, Series B,
7.25%, 7/1/15..................................2,090,707
Washington State Housing Finance
Commission Nonprofit Housing Revenue:
$ 300,000 (Emerald Heights Project), Variable Rate,
4.30%, 1/1/21................................$ 300,000
3,345,000 (Panorama City Project), Variable Rate,
4.50%, 1/1/27..................................3,345,000
1,400,000 Washington State Housing Finance Commission
Multifamily Mortgage Revenue, (Mills Plain
Crossing Project), 4.05%, 1/1/10...............1,400,000
2,550,000 Washington State Public Power Supply System
Nuclear Project (No. 1) Refunding Revenue,
7.15%, 7/1/02..................................2,616,800
10,760,801
Wisconsin - 4.5%
3,000,000 Brown Deer School District Tax and Revenue
Anticipation Promissory Notes,
3.60%, 10/28/99................................3,002,840
2,000,000 Mukwonago School District Tax and Revenue
Anticipation Promissory Notes,
3.98%, 8/27/99.................................2,001,431
2,295,000 Ripon School District Bond Anticipation Notes,
4.70%, 9/1/99..................................2,302,869
900,000 Wisconsin Health and Educational Facilities
Authority Revenue, (Alverno College
Project), 4.30%, 11/1/17.........................900,000
8,207,140
Wyoming - 3.3%
1,500,000 Campbell County School District (No. 1)
Gillette, Tax Anticipation Warrants,
4.00%, 6/25/99.................................1,500,434
4,400,000 Uinta County Pollution Control Revenue,
(Chevron U.S.A., Inc. Project), Variable Rate,
4.25%, 8/15/20.................................4,400,000
5,900,434
- -----------------------------------------------------------------------
Total Investments (total cost $170,445,039) - 94.1%.........170,445,039
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 5.9%..........................................10,762,718
- -----------------------------------------------------------------------
Net Assets - 100%..........................................$181,207,757
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 1999 31
<PAGE>
Statements of Operations - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Janus Federal Short-Term
For the six months ended April 30, 1999, (unaudited) Flexible Income High-Yield Tax-Exempt Bond
(all numbers in thousands) Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest $41,690 $14,125 $2,619 $4,015
Dividends 569 62 -- --
Foreign tax withheld -- -- -- --
Total Income 42,259 14,187 2,619 4,015
Expenses:
Advisory fees 3,461 1,137 295 429
Transfer agent fees and expenses 1,171 303 101 144
Registration fees 130 58 50 36
Postage and mailing expenses 44 17 6 9
Custodian fees 60 26 18 18
Printing expenses 62 15 13 13
Audit fees 5 26 10 7
Trustees' fees and expenses 1 3 1 1
Other expenses 22 11 4 7
Total Expenses 4,956 1,596 498 664
Expense and Fee Offsets (88) (36) (6) (6)
Net Expenses 4,868 1,560 492 658
Less: Excess Expense Reimbursement -- (36) (173) (229)
Net Expenses after Expense Reimbursement 4,868 1,524 319 429
Net Investment Income 37,391 12,663 2,300 3,586
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 4,473 (328) 85 (564)
Net realized gain/(loss) from foreign currency
transactions (193) (11) -- --
Net realized gain(loss) from futures transactions 3,551 -- 38 32
Change in unrealized appreciation/depreciation of
investments (2,812) 18,350 (913) (834)
Net Gain/(Loss) on Investments 5,019 18,011 (790) (1,366)
Net Increase in Net Assets Resulting from Operations $42,410 $30,674 $1,510 $2,220
</TABLE>
See Notes to Financial Statements.
32 Janus Income Funds / April 30, 1999
<PAGE>
Statements of Assets & Liabilities - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Janus Federal Short-Term
As of April 30, 1999, (unaudited) Flexible Income High-Yield Tax-Exempt Bond
(all numbers in thousands except net asset value per share) Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments at cost $1,301,124 $318,709 $107,720 $134,829
Investments at value $1,312,624 $315,098 $108,973 $134,389
Cash 79 4,254 22 60
Receivables:
Investments sold 33,747 35,568 -- --
Fund shares sold 5,413 2,297 741 1,730
Dividends -- 16 -- --
Interest 25,193 7,285 1,942 2,643
Other assets 11 4 1 1
Variation margin - Futures contract 1,367 -- 46 --
Forward currency contracts 542 -- -- --
Total Assets 1,378,976 364,522 111,725 138,823
Liabilities
Payables:
Investments purchased 37,624 31,686 -- --
Fund shares repurchased 5,926 1,192 680 654
Dividends 448 228 40 4
Advisory fee 621 194 1 34
Transfer agent fee 242 50 19 25
Accrued expenses 137 52 29 21
Total Liabilities 44,998 33,402 769 738
Net Assets $1,333,978 $331,120 $110,956 $138,085
Shares Outstanding, $0.01 Par Value (unlimited shares
authorized) 135,263 30,455 15,364 47,994
Net Asset Value Per Share $9.86 $10.87 $7.22 $2.88
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / April 30, 1999 33
<PAGE>
Statements of Changes in Net Assets - Bond Funds
<TABLE>
<CAPTION>
Janus
Janus Janus Federal
For the six months ended April 30, 1999, Flexible Income High-Yield Tax-Exempt
(unaudited) and for the fiscal year ended Fund Fund Fund
October 31 (all numbers in thousands) 1999 1998 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 37,391 $ 59,625 $ 12,663 $ 29,888 $ 2,300 $ 3,530
Net realized gain/(loss) from investment
transactions 7,831 13,197 (339) (1,034) 123 945
Change in unrealized net
appreciation/(depreciation) of
investments (2,812) (8,610) 18,350 (28,168) (913) 701
Net Increase in Net Assets Resulting from
Operations 42,410 64,212 30,674 686 1,510 5,176
Dividends and Distributions to
Shareholders:
Net investment income* (37,377) (59,616) (12,566) (29,888) (2,300) (3,530)
Net realized gain from investment
transactions* (12,257) (15,666) (128) (16,609) -- --
Net Decrease from Dividends and
Distributions (49,634) (75,282) (12,694) (46,497) (2,300) (3,530)
Capital Share Transactions:
Shares sold 527,512 693,045 254,165 498,190 54,885 72,196
Reinvested dividends and distributions 43,673 65,588 10,626 40,580 1,937 2,930
Shares repurchased (333,574) (371,073) (219,868) (526,164) (36,701) (47,202)
Net Increase/(Decrease) from Capital
Share Transactions 237,611 387,560 44,923 12,606 20,121 27,924
Net Increase/(Decrease) in Net Assets 230,387 376,490 62,903 (33,205) 19,331 29,570
Net Assets:
Beginning of period 1,103,591 727,101 268,217 301,422 91,625 62,055
End of period $1,333,978 $1,103,591 $ 331,120 $ 268,217 $110,956 $ 91,625
Net Assets Consist of:
Capital (par value and paid-in surplus)* $1,312,863 $1,075,251 $ 336,208 $ 291,286 $110,086 $ 89,965
Undistributed net investment
income/(loss)* 723 708 91 (6) -- --
Undistributed net realized gain/(loss)
from investments* 8,149 12,577 (1,568) (1,101) (383) (506)
Unrealized appreciation/(depreciation)
of investments 12,243 15,055 (3,611) (21,962) 1,253 2,166
Total Net Assets $1,333,978 $1,103,591 $ 331,120 $ 268,217 $110,956 $ 91,625
Transactions in Fund Shares:
Shares sold 53,190 69,152 23,939 43,131 7,559 9,960
Reinvested distributions 4,403 6,575 994 3,557 267 405
Total 57,593 75,727 24,933 46,688 7,826 10,365
Shares Repurchased (33,650) (37,113) (20,634) (46,003) (5,057) (6,525)
Net Increase/(Decrease) in Fund Shares 23,943 38,614 4,299 685 2,769 3,840
Shares Outstanding Beginning of Period 111,320 72,706 26,156 25,471 12,595 8,755
Shares Outstanding End of Period 135,263 111,320 30,455 26,156 15,364 12,595
Purchases and Sales of Investment
Securities:
(excluding short-term securities)
Purchases of securities $ 775,577 $1,189,828 $ 588,890 $1,125,306 $ 35,451 $161,215
Proceeds from sales of securities 443,427 1,005,118 537,837 1,151,400 19,827 131,902
Purchases of long-term U.S. government
obligations 128,376 367,064 30,495 41,042 6,137 25,207
Proceeds form sales of long-term U.S.
government obligations 203,821 210,399 36,025 36,070 3,909 28,292
<CAPTION>
Janus
For the six months ended April 30, 1999, Short-Term
(unaudited) and for the fiscal year ended Fund
October 31 (all numbers in thousands) 1999 1998
- ----------------------------------------- ---------------------
<S> <C> <C>
Operations:
Net investment income $ 3,586 $ 5,297
Net realized gain/(loss) from investment
transactions (532) 401
Change in unrealized net
appreciation/(depreciation) of
investments (834) (14)
Net Increase in Net Assets Resulting from
Operations 2,220 5,684
Dividends and Distributions to
Shareholders:
Net investment income* (3,577) (5,297)
Net realized gain from investment
transactions* -- --
Net Decrease from Dividends and
Distributions (3,577) (5,297)
Capital Share Transactions:
Shares sold 126,847 174,846
Reinvested dividends and distributions 3,282 4,807
Shares repurchased (131,593) (97,042)
Net Increase/(Decrease) from Capital
Share Transactions (1,464) 82,611
Net Increase/(Decrease) in Net Assets (2,821) 82,998
Net Assets:
Beginning of period 140,906 57,908
End of period $ 138,085 $ 140,906
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 141,475 $ 142,939
Undistributed net investment
income/(loss)* 10 1
Undistributed net realized gain/(loss)
from investments* (2,960) (2,428)
Unrealized appreciation/(depreciation)
of investments (440) 394
Total Net Assets $ 138,085 $ 140,906
Transactions in Fund Shares:
Shares sold 43,828 60,319
Reinvested distributions 1,134 1,658
Total 44,962 61,977
Shares Repurchased (45,465) (33,460)
Net Increase/(Decrease) in Fund Shares (503) 28,517
Shares Outstanding Beginning of Period 48,497 19,980
Shares Outstanding End of Period 47,994 48,497
Purchases and Sales of Investment
Securities:
(excluding short-term securities)
Purchases of securities $ 25,662 $ 99,607
Proceeds from sales of securities 14,608 40,081
Purchases of long-term U.S. government
obligations 31,378 64,672
Proceeds form sales of long-term U.S.
government obligations 47,753 43,995
</TABLE>
* See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
34 Janus Income Funds / April 30, 1999
<PAGE>
Financial Highlights - Bond Funds
<TABLE>
<CAPTION>
For a share outstanding during the six months
ended April 30, 1999, (unaudited) or through Janus Flexible Income Fund
each fiscal year or period ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.91 $10.00 $9.65 $9.55 $8.96 $10.03
Income from Investment Operations:
Net investment income .31 .67 .69 .73 .72 .74
Net gains/(losses) on securities (both
realized and realized) .05 .12 .37 .10 .59 (.86)
Total from Investment Operations .36 .79 1.06 .83 1.31 (.12)
Less Distributions:
Dividends (from net investment income) (.31) (.67) (.69) (.73) (.72) (.72)
Distributions (from capital gains) (.10) (.21) (.02) -- -- (.23)
Total Distributions (.41) (.88) (.71) (.73) (.72) (.95)
Net Asset Value, End of Period $9.86 $9.91 $10.00 $9.65 $9.55 $8.96
Total Return* 3.70% 8.14% 11.48% 9.01% 15.35% (1.26%)
Net Assets, End of Period (in thousands) $1,333,978 $1,103,591 $727,101 $603,655 $580,359 $377,345
Average Net Assets for the Period (in thousands) $1,214,578 $892,853 $656,422 $603,694 $450,001 $428,962
Ratio of Gross Expenses to Average Net
Assets**(1) 0.82% 0.84% 0.87% 0.88% 0.96% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.81% 0.82% 0.86% 0.87% 0.96% 0.93%
Ratio of Net Investment Income to Average Net
Assets** 6.21% 6.68% 7.10% 7.60% 7.91% 7.75%
Portfolio Turnover Rate** 116% 148% 207% 214% 250% 137%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the six months
ended April 30, 1999, (unaudited) or through Janus High-Yield Fund
each fiscal year or period ended October 31 1999 1998 1997 1996(2)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.25 $11.83 $11.12 $10.00
Income from Investment Operations:
Net investment income .44 .90 .97 .80
Net gains/(losses) on securities (both realized and
unrealized) .62 (1.02) .82 1.12
Total from Investment Operations 1.06 (.12) 1.79 1.92
Less Distributions:
Dividends (from net investment income) (.44) (.90) (.97) (.80)
Distributions (from capital gains) -- (.56) (.11) --
Total Distributions (.44) (1.46) (1.08) (.80)
Net Asset Value, End of Period $10.87 $10.25 $11.83 $11.12
Total Return* 10.30% (1.45%) 16.94% 19.71%
Net Assets, End of Period (in thousands) $331,120 $268,217 $301,422 $210,933
Average Net Assets for the Period (in thousands) $307,214 $380,942 $266,213 $88,126
Ratio of Gross Expenses to Average Net Assets**(1) 1.02%(3) 0.99% 1.03%(3) 1.01%(3)
Ratio of Net Expenses to Average Net Assets**(1) 1.00% 0.96% 1.00% 1.00%
Ratio of Net Investment Income to Average Net Assets** 8.31% 7.85% 8.45% 9.00%
Portfolio Turnover Rate** 409% 336% 404% 324%
</TABLE>
* Total return not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) See "Explanation of the Charts and Tables."
(2) Fiscal period December 29, 1995 (inception) to October 31, 1996.
(3) The ratio was 1.05% in 1999, 1.04% in 1997 and 1.18% in 1996 before waiver
of certain fees incurred by the Fund.
NA - Disclosure not required for prior periods.
See Notes to Financial Statements.
Janus Income Funds / April 30, 1999 35
<PAGE>
Financial Highlights - Bond Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding during the six months
ended April 30, 1999, (unaudited) or through Janus Federal Tax-Exempt Fund
each fiscal year or period ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $7.27 $7.09 $6.92 $6.88 $6.45 $7.30
Income from Investment Operations:
Net investment income .17 .34 .35 .36 .36 .36
Net gains/(losses) on securities (both realized and
unrealized) (.05) .18 .17 .04 .43 (.83)
Total from Investment Operations .12 .52 .52 .40 .79 (.47)
Less Distributions:
Dividends (from net investment income) (.17) (.34) (.35) (.36) (.36) (.36)
Distributions (from capital gains) -- -- -- -- -- (.02)
Total Distributions (.17) (.34) (.35) (.36) (.36) (.38)
Net Asset Value, End of Period $7.22 $7.27 $7.09 $6.92 $6.88 $6.45
Total Return* 1.65% 7.65% 7.72% 5.94% 12.60% (6.62%)
Net Assets, End of Period (in thousands) $110,956 $91,625 $62,055 $44,858 $32,593 $26,464
Average Net Assets for the Period (in thousands) $98,962 $74,133 $53,574 $36,312 $29,318 $28,384
Ratio of Gross Expenses to Average Net Assets**(1) 0.66%(2) 0.67%(2) 0.66%(2) 0.68%(2) 0.70%(2) NA
Ratio of Net Expenses to Average Net Assets**(1) 0.65% 0.65% 0.65% 0.65% 0.65% 0.65%(2)
Ratio of Net Investment Income to Average Net Assets** 4.69% 4.76% 5.00% 5.18% 5.43% 5.20%
Portfolio Turnover Rate** 52% 227% 304% 225% 164% 160%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the six months
ended April 30, 1999, (unaudited) or through Janus Short-Term Bond Fund
each fiscal year or period ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $2.91 $2.90 $2.86 $2.84 $2.87 $3.02
Income from investment operations:
Net investment income .08 .17 .17 .16 .18 .18
Net gains/(losses) on securities (both realized and
unrealized) (.03) .01 .04 .02 (.03) (.15)
Total from Investment Operations .05 .18 .21 .18 .15 .03
Less Distributions:
Dividends (from net investment income) (.08) (.17) (.17) (.16) (.18) (.17)
Distributions (from capital gains) -- -- -- -- -- (.01)
Total Distributions (.08) (.17) (.17) (.16) (.18) (.18)
Net Asset Value, End of Period $2.88 $2.91 $2.90 $2.86 $2.84 $2.87
Total Return* 1.68% 6.49% 7.70% 6.49% 5.55% 1.26%
Net Assets, End of Period (in thousands) $138,085 $140,906 $57,908 $40,784 $48,117 $54,285
Average Net Assets for the Period (in thousands) $133,070 $89,556 $48,421 $42,203 $47,383 $59,584
Ratio of Gross Expenses to Average Net Assets**(1) 0.66%(3) 0.67%(3) 0.67%(3) 0.67%(3) 0.66%(3) NA
Ratio of Net Expenses to Average Net Assets**(1) 0.65% 0.65% 0.65% 0.65% 0.65% 0.65%(3)
Ratio of Net Investment Income to Average Net Assets** 5.44% 5.91% 6.03% 5.57% 6.67% 6.08%
Portfolio Turnover Rate** 89% 101% 133% 486% 337% 346%
</TABLE>
* Total return not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) See "Explanation of Charts and Tables".
(2) The ratio was 1.02% in 1999, 0.99% in 1998, 1.11% in 1997, 1.14% in 1996,
1.31% in 1995 and 1.41% in 1994 before waiver of certain fees incurred by
the Fund.
(3) The ratio was 1.01% in 1999, 1.06% in 1998, 1.20% in 1997, 1.23% in 1996,
1.23% in 1995, and 1.15% in 1994 before waiver of certain fees incurred by
the Fund.
NA - Disclosure not required for prior periods.
See Notes to Financial Statements.
36 Janus Income Funds / April 30, 1999
<PAGE>
Statements of Operations - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Government Tax-Exempt
For the six months ended April 30, 1999, (unaudited) Money Market Money Market Money Market
(all numbers in thousands) Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest $177,247 $24,762 $3,031
177,247 24,762 3,031
Expenses:
Advisory fee for investor shares 782 102 56
Advisory fee for institutional shares 2,650 374 30
Advisory fee for service shares 16 20 4
Administrative fee for investor shares 3,910 509 282
Administrative fee for institutional shares 1,325 187 15
Administrative fee for service shares 8 10 2
Service fee for service shares 40 51 9
Audit fees 8 5 4
Trustees' fees and expenses 36 4 1
Total Expenses 8,775 1,262 403
Net Investment Income 168,472 23,500 2,628
Net Realized Gain on Investments 155 69 3
Net Increase in Net Assets Resulting from Operations $168,627 $23,569 $2,631
</TABLE>
Statements of Assets & Liabilities - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Government Tax-Exempt
As of April 30, 1999, (unaudited) Money Market Money Market Money Market
(all numbers in thousands except net asset value per share) Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments at amortized cost $6,527,340 $2,000,077 $170,445
Cash 50 86 5,270
Receivables:
Investments sold -- -- 8,702
Fund shares sold 27,867 1,087 1,615
Interest 35,645 1,885 1,128
Total Assets 6,590,902 2,003,135 187,160
Liabilities:
Payables:
Investments purchased 25,000 -- 5,200
Fund shares repurchased 28,712 1,815 658
Dividends and distributions 13,114 2,835 22
Advisory fee 630 85 16
Administrative fee 981 123 53
Service fees 5 12 --
Audit fee 8 4 3
Trustees' fees and expenses 28 -- --
Total Liabilities 68,478 4,874 5,952
Total Net Assets $6,522,424 $1,998,261 $181,208
Shares Outstanding, $0.01 Par Value (unlimited shares
authorized) 6,522,274 1,998,192 181,205
Net Asset Value Per Share $1.00 $1.00 $1.00
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / April 30, 1999 37
<PAGE>
Statements of Changes in Net Assets - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus Government
For the six months ended April 30, 1999, (unaudited) Money Market Money Market
and the fiscal year ended October 31 Fund Fund
(all numbers in thousands) 1999 1998 1999 1998
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 168,472 $ 261,256 $ 23,500 $ 24,976
Net realized gain/(loss) from investment
transactions 155 161 69 10
Net Increase in Net Assets Resulting from Operations 168,627 261,417 23,569 24,986
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares (35,524) (57,683) (4,460) (7,537)
Institutional Shares (132,175) (202,020) (18,118) (17,406)
Service Shares (773) (1,553) (922) (33)
Net realized gain/(loss) from investment
transactions:
Investor Shares (1) (42) -- (5)
Institutional Shares (4) (118) -- (5)
Service Shares -- (1) -- --
Net Decrease from Dividends and Distributions (168,477) (261,417) (23,500) (24,986)
Capital Share Transactions:
Shares sold:
Investor Shares 3,828,954 5,447,777 233,783 384,359
Institutional Shares 64,345,301 89,394,668 2,901,000 2,152,976
Service Shares 161,553 323,786 74,908 2,772
Reinvested dividends and distributions:
Investor Shares 33,717 54,458 4,264 7,176
Institutional Shares 32,561 60,862 2,004 3,884
Service Shares 779 1,560 14 28
Shares repurchased:
Investor Shares (3,624,891) (5,042,859) (230,279) (310,430)
Institutional Shares (64,605,939) (87,252,582) (2,004,252) (1,371,965)
Service Shares (158,213) (293,167) (19,929) (658)
Net Increase from Capital Share Transactions 13,822 2,694,503 961,513 868,142
Net Increase in Net Assets 13,972 2,694,503 961,582 868,142
Net Assets:
Beginning of period 6,508,452 3,813,949 1,036,679 168,537
End of period $ 6,522,424 $ 6,508,452 $ 1,998,261 $ 1,036,679
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 6,522,274 $ 6,508,452 $ 1,998,192 $ 1,036,679
Undistributed net realized gain/(loss) from
investments 150 -- 69 --
Total Net Assets $ 6,522,424 $ 6,508,452 $ 1,998,261 $ 1,036,679
Transactions in Fund Shares - Investor Shares
Shares sold 3,828,954 5,447,777 233,783 384,359
Reinvested dividends and distributions 33,717 54,458 4,264 7,176
Total 3,862,671 5,502,235 238,047 391,535
Shares Repurchased (3,624,891) (5,042,859) (230,279) (310,430)
Net Increase/(Decrease) in Fund Shares 237,780 459,376 7,768 81,105
Shares Outstanding Beginning of Period 1,492,023 1,032,647 213,239 132,134
Shares Outstanding End of Period 1,729,803 1,492,023 221,007 213,239
Transactions in Fund Shares - Institutional Shares
Shares sold 64,345,301 89,394,668 2,901,000 2,152,976
Reinvested dividends and distributions 32,561 60,862 2,004 3,884
Total 64,377,862 89,455,530 2,903,004 2,156,860
Shares Repurchased (64,605,939) (87,252,582) (2,004,252) (1,371,965)
Net Increase/(Decrease) in Fund Shares (228,077) 2,202,948 898,752 784,895
Shares Outstanding Beginning of Period 4,973,909 2,770,961 820,670 35,775
Shares Outstanding End of Period 4,745,832 4,973,909 1,719,422 820,670
Transactions in Fund Shares - Service Shares
Shares sold 161,553 323,786 74,908 2,772
Reinvested dividends and distributions 779 1,560 14 28
Total 162,332 325,346 74,922 2,800
Shares Repurchased (158,213) (293,167) (19,929) (658)
Net Increase/(Decrease) in Fund Shares 4,119 32,179 54,993 2,142
Shares Outstanding Beginning of Period 42,520 10,341 2,770 628
Shares Outstanding End of Period 46,639 42,520 57,763 2,770
<CAPTION>
Janus Tax-Exempt
For the six months ended April 30, 1999, (unaudited) Money Market
and the fiscal year ended October 31 Fund
(all numbers in thousands) 1999 1998
- ---------------------------------------------------- -----------------------
<S> <C> <C>
Operations:
Net investment income $ 2,628 $ 3,664
Net realized gain/(loss) from investment
transactions 3 26
Net Increase in Net Assets Resulting from Operations 2,631 3,690
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares (1,554) (2,879)
Institutional Shares (964) (678)
Service Shares (110) (107)
Net realized gain/(loss) from investment
transactions:
Investor Shares -- (21)
Institutional Shares -- (3)
Service Shares -- (2)
Net Decrease from Dividends and Distributions (2,628) (3,690)
Capital Share Transactions:
Shares sold:
Investor Shares 151,355 330,543
Institutional Shares 385,160 211,444
Service Shares 419 38,120
Reinvested dividends and distributions:
Investor Shares 1,480 2,765
Institutional Shares 794 589
Service Shares 108 110
Shares repurchased:
Investor Shares (137,528) (309,566)
Institutional Shares (367,441) (174,273)
Service Shares (17,168) (20,544)
Net Increase from Capital Share Transactions 17,179 79,188
Net Increase in Net Assets 17,182 79,188
Net Assets:
Beginning of period 164,026 84,838
End of period $ 181,208 $ 164,026
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 181,205 $ 164,026
Undistributed net realized gain/(loss) from
investments 3 --
Total Net Assets $ 181,208 $ 164,026
Transactions in Fund Shares - Investor Shares
Shares sold 151,355 330,543
Reinvested dividends and distributions 1,480 2,765
Total 152,835 333,308
Shares Repurchased (137,528) (309,566)
Net Increase/(Decrease) in Fund Shares 15,307 23,742
Shares Outstanding Beginning of Period 105,011 81,269
Shares Outstanding End of Period 120,318 105,011
Transactions in Fund Shares - Institutional Shares
Shares sold 385,160 211,444
Reinvested dividends and distributions 794 589
Total 385,954 212,033
Shares Repurchased (367,441) (174,273)
Net Increase/(Decrease) in Fund Shares 18,513 37,760
Shares Outstanding Beginning of Period 41,319 3,559
Shares Outstanding End of Period 59,832 41,319
Transactions in Fund Shares - Service Shares
Shares sold 419 38,120
Reinvested dividends and distributions 108 110
Total 527 38,230
Shares Repurchased (17,168) (20,544)
Net Increase/(Decrease) in Fund Shares (16,641) 17,686
Shares Outstanding Beginning of Period 17,696 10
Shares Outstanding End of Period 1,055 17,696
</TABLE>
See Notes to Financial Statements.
38 Janus Income Funds / April 30, 1999
<PAGE>
Financial Highlights - Money Market Funds
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999, Janus
(unaudited) or through each fiscal Money Market
year or period ended October 31 Fund
INVESTOR SHARES 1999 1998 1997 1996 1995(1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .02 .05 .05 .05 .04
Total from Investment Operations .02 .05 .05 .05 .04
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.05) (.05) (.05) (.04)
Total Dividends and Distributions (.02) (.05) (.05) (.05) (.04)
Net Asset Value at End of Period $1.00 $1.00 $1.00 $1.00 $1.00
Total Return* 2.29% 5.25% 5.23% 5.13% 3.95%
Net Assets at End of Period (in thousands) $1,729,836 $1,492,023 $1,032,647 $773,887 $643,219
Average Net Assets for the Period (in thousands) $1,576,791 $1,123,991 $883,052 $676,334 $461,311
Ratio of Expenses to Average Net Assets**(2) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3)
Ratio of Net Investment Income to Average Net Assets**(2) 4.54% 5.13% 5.09% 5.01% 5.56%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999, Janus Government
(unaudited) or through each fiscal Money Market
year or period ended October 31 Fund
INVESTOR SHARES 1999 1998 1997 1996 1995(1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .02 .05 .05 .05 .04
Total from Investment Operations .02 .05 .05 .05 .04
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.05) (.05) (.05) (.04)
Total Dividends and Distributions (.02) (.05) (.05) (.05) (.04)
Net Asset Value at End of Period $1.00 $1.00 $1.00 $1.00 $1.00
Total Return* 2.21% 5.12% 5.11% 5.03% 3.90%
Net Assets at End of Period (in thousands) $221,021 $213,239 $132,133 $117,408 $199,307
Average Net Assets for the Period (in thousands) $205,070 $150,525 $123,193 $112,059 $87,906
Ratio of Expenses to Average Net Assets**(2) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3)
Ratio of Net Investment Income to Average Net Assets**(2) 4.39% 5.01% 5.42% 4.91% 5.40%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period February 15, 1995 (inception) to October 31, 1995.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .70% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
Janus Income Funds / April 30, 1999 39
<PAGE>
Financial Highlights - Money Market Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999, Janus Tax-Exempt
(unaudited) or through each fiscal Money Market
year or period ended October 31 Fund
INVESTOR SHARES 1999 1998 1997 1996 1995(1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .01 .03 .03 .03 .02
Total from Investment Operations .01 .03 .03 .03 .02
Less Dividends and Distributions:
Dividends (from net investment income) (.01) (.03) (.03) (.03) (.02)
Total Dividends and Distributions (.01) (.03) (.03) (.03) (.02)
Net Asset Value at End of Period $1.00 $1.00 $1.00 $1.00 $1.00
Total Return* 1.38% 3.23% 3.20% 3.27% 2.40%
Net Assets at End of Period (in thousands) $120,320 $105,011 $81,268 $74,638 $67,479
Average Net Assets for the Period (in thousands) $113,959 $91,058 $75,929 $68,695 $57,366
Ratio of Expenses to Average Net Assets**(2) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3)
Ratio of Net Investment Income to Average Net
Assets**(2) 2.75% 3.16% 3.14% 3.22% 3.38%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999, Janus
(unaudited) or through each fiscal Money Market
year or period ended October 31 Fund
INSTITUTIONAL SHARES 1999 1998 1997 1996 1995(4)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .02 .06 .06 .05 .03
Total from Investment Operations .02 .06 .06 .05 .03
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.06) (.06) (.05) (.03)
Total Dividends and Distributions (.02) (.06) (.06) (.05) (.03)
Net Asset Value at End of Period $1.00 $1.00 $1.00 $1.00 $1.00
Total Return* 2.52% 5.72% 5.71% 5.61% 3.25%
Net Assets at End of Period (in thousands) $4,745,948 $4,973,909 $2,770,961 $1,705,610 $304,952
Average Net Assets for the Period (in thousands) $5,343,651 $3,620,872 $2,545,294 $874,431 $202,427
Ratio of Expenses to Average Net Assets**(2) 0.15%(5) 0.15%(5) 0.15%(5) 0.15%(5) 0.15%(5)
Ratio of Net Investment Income to Average Net
Assets**(2) 4.99% 5.58% 5.54% 5.41% 5.86%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period February 15, 1995 (inception) to October 31, 1995.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .70% before waiver of certain fees incurred by the fund.
(4) Fiscal period April 17, 1995 (inception) to October 31, 1995.
(5) The ratio was .35% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
40 Janus Income Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999, Janus Government
(unaudited) or through each fiscal Money Market
year or period ended October 31 Fund
INSTITUTIONAL SHARES 1999 1998 1997 1996 1995(1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .02 .05 .05 .05 .03
Total from Investment Operations .02 .05 .05 .05 .03
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.05) (.05) (.05) (.03)
Total Dividends and Distributions (.02) (.05) (.05) (.05) (.03)
Net Asset Value at End of Period $1.00 $1.00 $1.00 $1.00 $1.00
Total Return* 2.43% 5.59% 5.58% 5.50% 3.20%
Net Assets at End of Period (in thousands) $1,719,473 $820,670 $35,776 $59,490 $44,164
Average Net Assets for the Period (in thousands) $754,859 $321,174 $56,801 $53,398 $24,748
Ratio of Expenses to Average Net Assets**(2) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3)
Ratio of Net Investment Income to Average Net Assets**(2) 4.84% 5.42% 6.04% 5.34% 5.75%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999, Janus Tax-Exempt
(unaudited) or through each fiscal Money Market
year or period ended October 31 Fund
INSTITUTIONAL SHARES 1999 1998 1997 1996 1995(1)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .02 .04 .04 .04 .02
Total from Investment Operations .02 .04 .04 .04 .02
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.04) (.04) (.04) (.02)
Total Dividends and Distributions (.02) (.04) (.04) (.04) (.02)
Net Asset Value at End of Period $1.00 $1.00 $1.00 $1.00 $1.00
Total Return* 1.61% 3.67% 3.67% 3.74% 2.09%
Net Assets at End of Period (in thousands) $59,832 $41,319 $3,560 $1,947 $11,192
Average Net Assets for the Period (in thousands) $60,744 $18,859 $3,466 $1,754 $1,115
Ratio of Expenses to Average Net Assets**(2) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3)
Ratio of Net Investment Income to Average Net Assets**(2) 3.20% 3.60% 3.94% 3.82% 3.82%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period April 17, 1995 (inception) to October 31, 1995.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .35% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
Janus Income Funds / April 30, 1999 41
<PAGE>
Financial Highlights - Money Market Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999, Janus Janus Government
(unaudited) or through each fiscal Money Market Money Market
year or period ended October 31 Fund Fund
SERVICE SHARES 1999 1998 1997(1) 1999 1998 1997(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .02 .05 .05 .02 .05 .05
Total from Investment Operations .02 .05 .05 .02 .05 .05
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.05) (.05) (.02) (.05) (.05)
Total Dividends and Distributions (.02) (.05) (.05) (.02) (.05) (.05)
Net Asset Value at End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return* 2.39% 5.45% 5.14% 2.31% 5.33% 5.01%
Net Assets at End of Period (in thousands) $46,640 $42,520 $10,341 $57,767 $2,770 $628
Average Net Assets for the Period (in thousands) $32,599 $29,322 $913 $40,863 $639 $1,141
Ratio of Expenses to Average Net Assets**(2) 0.40%(3) 0.40%(3) 0.40%(3) 0.40%(3) 0.40%(3) 0.40%(3)
Ratio of Net Investment Income to Average Net
Assets**(2) 4.79% 5.30% 5.02% 4.55% 5.15% 5.23%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999,
(unaudited) or through each fiscal Janus Tax-Exempt
year or period ended October 31 Money Market
SERVICE SHARES 1999 1998 1997(1)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value at Beginning of Period $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income .01 .03 .03
Total from Investment Operations .01 .03 .03
Less Dividends and Distributions:
Dividends (from net investment income) (.01) (.03) (.03)
Total Dividends and Distributions (.01) (.03) (.03)
Net Asset Value at End of Period $1.00 $1.00 $1.00
Total Return* 1.48% 3.44% 3.22%
Net Assets at End of Period (in thousands) $1,056 $17,696 $10
Average Net Assets for the Period (in thousands) $7,150 $3,215 $10
Ratio of Expenses to Average Net Assets**(2) 0.40%(3) 0.40%(3) 0.40%(3)
Ratio of Net Investment Income to Average Net Assets**(2) 3.11% 3.32% 3.17%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period November 22, 1996 (inception) to October 31, 1997.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .60% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
42 Janus Income Funds / April 30, 1999
<PAGE>
Notes to Schedules of Investments
CAD Canadian Dollar
DEM German Deutschemark
EUR Euro
GBP British Pounds
*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 forward
currency contracts.
(+)Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
1) Variable Rate Notes. The interest rate, which is based on specific, or an
index of, market interest rates, is subject to change. Rates in the security
description are as of April 30, 1999.
2) Money market funds may hold securities with stated maturities of greater than
397 days when those securities have features that allow a fund to "put" back
the security to the issuer or to a third party within 397 days of
acquisition. The maturity dates shown in the security descriptions are the
stated maturity dates.
3) Repurchase Agreements held by a 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. In the event of
default on the obligation to repurchase, the fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. In
the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral or proceeds may be subject to
legal proceedings.
Janus Income Funds / April 30, 1999 43
<PAGE>
Notes to Financial Statements
The following section describes the organization and significant accounting
policies of the Funds and provides more detailed information about the schedules
and tables that appear throughout this report. In addition, the Notes explain
how the Funds operate and the methods used in preparing and presenting this
report.
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Janus Investment Fund (the "Trust") is registered under the Investment Company
Act of 1940 (the "1940 Act") as a no-load, open-end management investment
company. Four series of shares (the "Bond Funds") included in this report invest
primarily in income-producing securities, and three series of shares (the "Money
Market Funds") invest exclusively in high-quality money market instruments. Each
of the Money Market Funds offers three classes of shares.
"Investor Shares" are available to the general public, and "Institutional
Shares" are available only to investors that meet certain minimum account sizes.
"Service Shares" are available through banks and other financial institutions.
The following policies have been consistently followed by the Funds and are in
conformity with accounting principles generally accepted in the investment
company industry.
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a principal
exchange (U.S. or foreign) and on the NASDAQ National Market. Securities traded
on over-the-counter markets and listed securities for which no sales are
reported are valued at the latest bid price (or yield equivalent thereof)
obtained from one or more dealers making a market for such securities or by a
pricing service approved by the Funds' Trustees. Short-term investments maturing
within 60 days for the Bond Funds and all money market securities in the Money
Market Funds are valued at amortized cost, which approximates market value.
Foreign securities are converted to U.S. dollars using exchange rates at the
close of the New York Stock Exchange. When market quotations are not readily
available, securities are valued at fair value as determined in good faith by
the Funds' Trustees.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold.
Dividend income is recorded on the ex-dividend date. 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 Bond Funds may 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
contract is a commitment to purchase or sell a foreign currency at a future date
at a negotiated rate. The gain or loss arising from the difference between the
U.S. dollar cost of the original contract and the value of the foreign currency
in U.S. dollars upon closing of such contract is included in net realized gain
or loss on foreign currency transactions.
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 are also calculated on payables and receivables that are
denominated in foreign currencies. The payables and receivables are generally
related to security transactions and income.
Futures contracts are marked to market daily, and the variation margin is
recorded as an unrealized gain or loss. When a contract is closed, a realized
gain or loss is recorded equal to the difference between the opening and closing
value of the contract. Generally, open forward and futures contracts are marked
to market for federal income tax purposes at fiscal year-end.
Foreign-denominated assets and forward currency contracts may involve more risks
than domestic transactions, including currency risk, political and economic
risk, regulatory risk and market risk. 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 Bond Funds may enter into "futures contracts" and "options" on securities,
financial indexes, foreign currencies, forward contracts and interest rate swaps
and swap-related products. The Bond Funds intend to
44 Janus Income Funds / April 30, 1999
<PAGE>
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.
ADDITIONAL INVESTMENT RISK
Janus High-Yield Fund and Janus Flexible Income Fund may be invested in
lower-rated debt securities that have a higher risk of default or loss of value
because of changes in the economy or in their respective industry.
DIVIDEND DISTRIBUTIONS AND EXPENSES
Dividends are declared daily and distributed monthly. Each Bond Fund bears
expenses incurred specifically on its behalf as well as a portion of general
expenses.
FEDERAL INCOME TAXES
The Funds intend to distribute to shareholders all taxable investment income and
realized gains and otherwise comply with the Internal Revenue Code applicable to
regulated investment companies.
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.
2. INVESTMENT ADVISORY AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The advisory agreements with the Bond Funds spell out the fee that the Funds
must pay. Each of the Bond Funds is subject to the following schedule:
<TABLE>
<CAPTION>
Average
Daily Net Annual Rate Expense Limit
Fee Schedule Assets of Fund Percentage(%) Percentage(%)
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Flexible Income First $300 Million .65 1.00*
Fund Over $300 Million .55
- ----------------------------------------------------------------------------
Janus High-Yield Fund First $300 Million .75 1.00*
Over $300 Million .65
- ----------------------------------------------------------------------------
Janus Federal First $300 Million .60 .65*
Tax-Exempt Fund Over $300 Million .55
- ----------------------------------------------------------------------------
Janus Short-Term First $300 Million .65 .65*
Bond Fund Over $300 Million .55
- ----------------------------------------------------------------------------
</TABLE>
*Janus Capital will waive certain fees and expenses to the extent that net
expenses exceed the stated limits.
Each of the Money Market Funds pays Janus Capital .20% of average daily net
assets as an investment advisory fee. Janus Capital has agreed to reduce its
advisory fee for each of the Janus Money Market Funds to .10%. In addition, each
class of shares of each Money Market Fund pays Janus Capital an administrative
fee. This fee is .50%, .15%, and .40% of average daily net assets for the
Investor Shares, Institutional Shares, and Service Shares, respectively. Janus
Capital has agreed to reduce the administrative fee to .05% and .30% on the
Institutional Shares and Service Shares, respectively. All other expenses of the
Money Market Funds except Trustees fees and expenses, audit fees and interest
expenses, are paid by Janus Capital.
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 from each Bond Fund for transfer agent services
plus reimbursement of certain out-of-pocket expenses.
Officers and certain trustees of the Funds are also officers and/or directors of
Janus Capital; however, they receive no compensation from the Funds.
DST Systems, Inc. (DST), an affiliate of Janus Capital through a degree of
common ownership, provides fund accounting and shareholder accounting systems to
the Funds through Janus Capital and Janus Service. Fees paid to DST for the
period ended April 30, 1999, are noted below.
DST FEES
<TABLE>
<S> <C>
Janus Flexible Income Fund $88,067
Janus High-Yield Fund 35,151
Janus Federal Tax-Exempt Fund 16,135
Janus Short-Term Bond Fund 26,721
</TABLE>
Janus Income Funds / April 30, 1999 45
<PAGE>
Notes to Financial Statements (continued)
3. FEDERAL INCOME TAX
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.
Net capital loss carryovers noted below as of October 31, 1998, are available to
offset future realized capital gains and thereby reduce future taxable gains
distributions. These carryovers expire between October 31, 2002, and October 31,
2006. 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, 1999, are listed below. The federal tax cost for the
Money Market Funds is the same as listed in the Statement of Assets and
Liabilities.
<TABLE>
<CAPTION>
Net
Net Capital Loss Federal Tax Unrealized Unrealized Appreciation/
Carryovers Cost Appreciation (Depreciation) (Depreciation)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Janus Flexible Income Fund -- $1,301,519,256 $30,843,623 $(19,738,845) $ 11,104,778
Janus High-Yield Fund -- 319,027,628 5,975,232 (9,905,032) (3,929,800)
Janus Federal Tax-Exempt Fund $ (504,402) 107,721,551 1,981,143 (729,570) 1,251,573
Janus Short-Term Bond Fund (2,861,783) 135,091,852 414,929 (1,118,113) (703,184)
----------------------------------------------------------------------------------------------------------------------
</TABLE>
46 Janus Income Funds / April 30, 1999
<PAGE>
Explanation of Charts and Tables
1. PERFORMANCE OVERVIEWS
Performance overview graphs on the previous pages compare the performance of a
$10,000 investment in each Fund (from inception) to one or more widely used
market indexes through April 30, 1999.
When comparing the performance of a Fund with an index, keep in mind that market
indexes do not include brokerage commissions that would be incurred if you
purchased the individual securities in the index. They also do not include taxes
payable on dividends and interest or operating expenses incurred if you
maintained a portfolio invested in the index.
Average annual total returns are also 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,
then calculating the annual compounded percentage rate that would have produced
the same result had the rate of growth been constant throughout the period.
2. SCHEDULES OF INVESTMENTS
Following the performance overview section is each Fund's Schedule of
Investments. This schedule reports the industry concentrations and types of
securities held in each Fund's portfolio on the last day of the reporting
period. Securities are usually listed by type (common stock, corporate bonds,
U.S. government obligations, etc.) and by industry classification (banking,
communications, insurance, etc.).
The market value of each security is quoted as of 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
providing the percentage of securities invested in each country.
2A. FORWARD CURRENCY CONTRACTS
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.
3. STATEMENT OF OPERATIONS
This statement details the Funds' income, expenses, gains and losses on
securities and currency transactions, and appreciation or depreciation of
current portfolio holdings.
The first section in this statement, entitled "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, transfer agent fees,
shareholder servicing expenses, and printing and postage for mailing statements,
financial reports and prospectuses.
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. An unrealized gain (or loss) refers to the
change in net appreciation or depreciation of the Funds' portfolios during the
period. "Net Gain/(Loss) on Investments" is affected both by changes in the
market value of portfolio holdings and by gains (or losses) realized during the
reporting period.
4. STATEMENT OF ASSETS AND LIABILITIES
This statement is often referred to as the "balance sheet." It lists the assets
and liabilities of the Funds on the last day of the reporting 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
Janus Income Funds / April 30, 1999 47
<PAGE>
Explanation of Charts and Tables (continued)
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. Additionally, there may be other assets
and liabilities such as forward currency contracts.
The last line of this statement reports the Funds' net asset value (NAV) per
share on the last day of the reporting period. The NAV is calculated by dividing
the Funds' net assets (assets minus liabilities) by the number of shares
outstanding.
5. STATEMENT OF CHANGES IN NET ASSETS
This 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 is important to investors because it shows exactly what caused the Funds'
net asset size to change during the period.
The first section summarizes the information from the Statement of Operations
regarding changes in net assets because of the Funds' investment performance.
The Funds' net assets may 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
Fund's "Net Decrease from Dividends and Distributions" to the "Reinvested
dividends and distributions," you'll notice that dividend distributions had
little effect on each Fund's net assets. This is because the majority of Janus
investors reinvest their distributions.
The reinvestment of dividends is included under the money investors contribute
to the Funds through purchases or withdraw via redemptions. The Fund's net
assets will increase and decrease in value as investors purchase and redeem
shares from the Fund.
The section entitled "Net Assets Consist of" breaks down the components of the
Funds' net assets. Because Funds must distribute substantially all earnings,
you'll notice that a significant portion of net assets is shareholder capital.
6. FINANCIAL HIGHLIGHTS
This schedule provides a per-share breakdown of the components that affect the
Funds' net asset value (NAV) for 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 reporting period. The next line reports the Funds' net investment income
per share, which comprises 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 period.
Also included 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. These
arrangements include the use of brokerage commissions, uninvested cash balances
earning interest or balance credits. The Statement of Operations reflects total
expenses before any such 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 ratio of net investment income summarizes the income earned divided by the
average net assets of a Fund during the reporting period. Don't confuse this
ratio with a Fund's yield. The net investment income ratio is not a true measure
of a Fund's yield because it doesn't take into account the dividends distributed
to the Fund's investors.
The next ratio is the portfolio turnover rate, which measures the 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 Fund's
investments and the investment style of the portfolio manager. A 100% rate
implies that an amount equal to the value of the entire portfolio is turned over
in a year; a 50% rate means that an amount equal to the value of half the
portfolio is traded in a year; and a 200% rate means that an amount equal to the
value of the portfolio is sold every six months.
48 Janus Income Funds / April 30, 1999
<PAGE>
Year 2000 Discussion (unaudited)
Preparing for Year 2000 is a high priority for Janus Capital, which has
established a dedicated group to address this issue. Janus Capital has devoted
considerable internal resources and has engaged one of the foremost experts in
the field to help achieve Year 2000 readiness. Janus Capital does not anticipate
that Year 2000-related issues 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 readiness 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.
Janus Income Funds / April 30, 1999 49
<PAGE>
[JANUS LOGO]
100 Fillmore Street
Denver, Colorado 80206-4923
1-800-525-3713
Funds distributed by Janus Distributors, Inc. Member NASD.
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