<PAGE>
Janus Equity Funds
1999 Semiannual Report
<TABLE>
<S> <C>
Janus Fund Janus Mercury Fund
Janus Balanced Fund Janus Olympus Fund
Janus Enterprise Fund Janus Overseas Fund
Janus Equity Income Fund Janus Special Situations Fund
Janus Global Life Sciences Fund Janus Twenty Fund
Janus Global Technology Fund Janus Venture Fund
Janus Growth and Income Fund Janus Worldwide Fund
</TABLE>
[JANUS LOGO]
<PAGE>
Janus Equity Funds
Table of Contents
<TABLE>
<S> <C>
To Our Shareholders..................... 1
Portfolio Manager's Commentary and Schedule of Investments
Janus Fund......................... 2
Janus Balanced Fund................ 6
Janus Enterprise Fund.............. 12
Janus Equity Income Fund........... 15
Janus Global Life Sciences Fund.... 20
Janus Global Technology Fund....... 23
Janus Growth and Income Fund....... 27
Janus Mercury Fund................. 32
Janus Olympus Fund................. 36
Janus Overseas Fund................ 40
Janus Special Situations Fund...... 45
Janus Twenty Fund.................. 48
Janus Venture Fund................. 52
Janus Worldwide Fund............... 56
Statements of Operations................ 61
Statements of Assets and Liabilities.... 64
Statements of Changes in Net Assets..... 66
Financial Highlights.................... 70
Notes to Schedules of Investments....... 77
Notes to Financial Statements........... 79
Explanation of Charts and Tables........ 82
Year 2000 Discussion.................... 84
</TABLE>
[JANUS LOGO]
<PAGE>
To Our Shareholders
[Tom Bailey Photo]
Tom Bailey
chairman
Global economic growth continued at a slower pace throughout the first half of
the fiscal year, impeded by lingering financial distress in emerging markets and
Japan, and a slowdown in Europe. At the height of this turmoil, fears of a U.S.
recession developed, prompting the Federal Reserve Board to intervene by cutting
interest rates three times between September 29 and November 17. This injected
liquidity back into the U.S. stock market, boosted investor sentiment and
sparked a worldwide trend toward lower interest rates, which contributed to the
stabilization of global equity markets.
Fueled by strong consumer confidence, the U.S. economy powered through recession
fears. Even political instability within the federal government proved incapable
of slowing its momentum. In this high-growth, low-interest-rate environment, the
stock market thrived. However, a closer look reveals that the market's gains
remained narrowly driven by only a handful of large-cap growth stocks. And
although pockets of opportunity were evident among smaller companies, overall,
they were again left behind.
Technology, one of the strongest growth areas in the economy, led this
discriminating market. Investor enthusiasm for these stocks was fed by a
significant increase in the popularity of the Internet, especially within the
business world. Without question, the Internet is changing the way companies do
business, offering them new distribution channels, increasing their productivity
and, in many cases, helping them gain a competitive edge.
In addition to being the biggest gainers during the period, technology stocks,
now nearly 20% of the overall market, were also the most volatile. Linked to
concerns about Year 2000-related spending fluctuations, they experienced wide
price swings that, at times, influenced the rest of the market.
Looking ahead, however, the three factors supporting U.S. stocks - interest
rates, inflation and economic growth - appear favorable. And while we still
haven't seen that "light at the end of the tunnel" in some emerging market
economies, generally there has been improvement. Meanwhile, Asia seems to have
bounced from the bottom, and Japan has embarked on an ambitious program of
fiscal reforms to move its economy.
But at Janus, the micro view takes precedence over macro events and short-term
market sentiment. We maintain our focus squarely on individual companies, using
intensive research to examine them from every possible perspective. It's an
ongoing process, and one I'm confident will continue to lead us to dominant
market franchises, regardless of the economic environment.
As always, I'd like to thank you for placing your trust in Janus.
/s/ TOM BAILEY
Tom Bailey
Janus Equity Funds / April 30, 1999 1
<PAGE>
Janus Fund
James Craig
portfolio manager
Janus Fund enjoyed another period of solid performance. For the six months ended
April 30, 1999, the Fund had a total return of 38.94%, beating the 22.31% return
of the S&P 500 Index.(1) This placed it in the top quartile, ranking it 39th out
of 254 capital appreciation funds tracked by Lipper, Inc., a leading mutual fund
rating company, for the 12 months ended April 30, 1999.(2)
Following the volatility associated with last fall's credit crunch, stocks
resumed their upward path during the period, fueled in part by three consecutive
Federal Reserve rate cuts toward year-end. Despite the impressive performance of
the S&P 500, however, most of the advance continued to be concentrated in a
relatively small group of large-cap stocks. The name of the game, once again,
was to identify the few stocks that were working, and we're pleased to report
that the Fund owned a number of them.
Our focus remained on high-quality companies serving dynamic growth industries,
including technology, cable, and certain niches in a variety of other areas. For
example, Cisco Systems - the Fund's largest holding at the end of the period -
gained in part as a result of euphoria surrounding the explosive growth of the
Internet. Cisco is the premier provider of hardware used to transmit data
signals over the Internet and other networks. The company is also being tapped
to set up systems allowing bundled transmissions of voice, video and data over
digital networks.
In the cable industry, Comcast and MediaOne Group were strong performers. Both
companies stand to benefit from upgrades to broadband technology that will allow
them to offer competitive Internet and telephone services in addition to cable
television. Late in the period, MediaOne Group received an additional boost to
its stock price when Comcast and AT&T each bid to acquire the company. We
believe recent developments like this support our thesis that the evolution of
the business is enabling cable companies to compete in large new communications
markets.
One new position for the Fund was Enron, an intriguing energy company in an
out-of-favor industry that's been somewhat overlooked by Wall Street. Enron
specializes in finding and capitalizing on inefficiencies in the way energy is
generated and distributed and is, therefore, uniquely positioned to benefit from
the rapidly deregulating electric and gas utility markets. The company's
wholesale electricity trading operations are particularly attractive. For
example, if a big regional utility in Michigan has excess generating capacity,
Enron might buy the electricity from the utility and sell it at a profit in
Florida or some other location where generating capacity is insufficient to meet
the area's needs.
Another new position was Sun Microsystems. With its UNIX-based operating system
and JAVA programming language, Sun appears positioned to make substantial
inroads into the lucrative enterprise software market. What we really like about
Sun is that there's already considerable development taking place utilizing
JAVA. Furthermore,
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 92.3% 91.8%
Foreign 7.6% 4.6%
European 2.2% 2.9%
Top 10 Equities (% of
Assets) 41.4% 44.4%
Number of Stocks 69 55
Cash & Cash Equivalents 7.7% 8.2%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Cable Television 9.7% 14.6%
Multimedia 7.8% 7.8%
Networking Products 6.4% 5.7%
Diversified Operations 6.3% 5.8%
Medical - Drugs 5.4% 10.3%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- ---------------------------------------------------------------------
<S> <C> <C>
Cisco Systems, Inc. 6.4% 5.7%
Time Warner, Inc. 6.3% 5.5%
Comcast Corp. - Special Class A 5.1% 5.4%
Tyco International, Ltd. 4.6% 4.2%
Charles Schwab Corp. 4.4% 2.0%
Sun Microsystems, Inc. 3.4% --
Linear Technology Corp. 2.9% 2.2%
American International Group, Inc. 2.8% --
Microsoft Corp. 2.8% 6.0%
Pfizer, Inc. 2.7% 3.6%
- ---------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A capital appreciation fund is defined by Lipper, Inc. as one that "aims at
maximum capital appreciation, frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The fund may take large cash positions." As of April 30, 1999,
Janus Fund ranked 18/100 of capital appreciation funds for the 5-year period
and 6/54 for the 10-year period. The ranking is based on total return,
including reinvestment of dividends and capital gains for the stated period.
Past performance does not guarantee future results.
2 Janus Equity Funds / April 30, 1999
<PAGE>
JAVA is now being taught in university computer science programs, which further
adds to its long-term viability.
Despite our successes, the Fund experienced some disappointments. While meeting
its earnings forecasts, Wind River Systems, a software company, fell victim to a
weak market for small-cap stocks. Also contributing to this stock's decline were
concerns about a potential slowdown in major software implementations until Year
2000 issues have been resolved. We eliminated the position at a loss. Newcourt
Credit Group, a finance company, was hurt in last fall's credit crunch and
didn't recover with the rest of the market. In the wake of this, investors
preferred higher-rated competitors. As a result, we substantially reduced our
Newcourt holdings.
Going forward, the "big three" background factors driving stock
prices - interest rates, inflation and economic growth - continue to appear
favorable. However, with a number of stocks at elevated valuations, meeting or
exceeding earnings forecasts will be crucial to further gains in share prices.
Our goal, as always, is to find those companies that can sustain strong earnings
growth and thus enable their stock prices to appreciate under any economic
condition.
We thank you for your continued confidence in Janus Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Fund and the S&P 500 Index. Janus Fund is represented by a shaded area
of green. The S&P 500 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, February 5, 1970, through April 30, 1999. The lower
right quadrant reflects the ending value of the hypothetical investment in Janus
Fund at $1,222,444 as compared to the S&P 500 Index at $456,373.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 33.28%
Five Year, 24.45%
Ten Year, 19.71%
since 2/5/70*, 17.87%
JANUS FUND - $1,222,444
S&P 500 Index - $456,373
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 92.3%
Advertising Sales - 0.2%
2,187,625 Outdoor Systems, Inc.*......................$ 55,100,805
Automotive - Truck Parts and Equipment - 0.6%
4,105,025 Federal-Mogul Corp.(#)........................180,107,972
Brewery - 0.8%
3,050,090 Anheuser-Busch Companies, Inc.................223,037,831
Broadcast Services and Programming - 3.1%
6,747,260 AT&T Corp./Liberty Media Group - Class A*.....430,981,233
7,286,923 Clear Channel Communications, Inc.*...........506,441,149
937,422,382
Cable Television - 9.7%
2,387,160 Adelphia Communications Corp. - Class
A*(,)(#).....................................162,923,670
944,300 Century Communications Corp. - Class A*........46,329,719
23,429,300 Comcast Corp. - Special Class A(#)..........1,539,012,144
7,306,694 Cox Communications, Inc. - Class A*...........579,968,836
7,154,867 MediaOne Group, Inc.*.........................583,568,840
2,911,803,209
Cellular Telecommunications - 1.5%
4,088,860 AirTouch Communications, Inc.*................381,797,302
1,365,640 Sprint Corp./PCS Group*........................57,868,995
439,666,297
Chemicals - Specialty - 0.3%
2,963,795 Cytec Industries, Inc.*(,)(#)...............$ 84,282,920
Circuits - 5.2%
15,225,430 Linear Technology Corp.(#)....................865,946,331
12,456,900 Maxim Integrated Products, Inc.*(,)(#)........697,586,400
1,563,532,731
Commercial Banks - 1.2%
9,664,830 Firstar Corp..................................290,548,952
112,325 M & T Bank Corp................................62,789,675
353,338,627
Commercial Services - 0.5%
3,042,710 Paychex, Inc..................................155,368,379
Computer Software - 2.8%
10,204,740 Microsoft Corp.*..............................829,772,921
Computers - Memory Devices - 0.9%
1,421,005 EMC Corp.*....................................154,800,732
1,763,480 VERITAS Software Corp.*.......................125,207,080
280,007,812
Computers - Micro - 4.0%
3,783,620 Apple Computer, Inc.*.........................174,046,520
16,904,040 Sun Microsystems, Inc.*.....................1,011,072,892
1,185,119,412
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 3
<PAGE>
Janus Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Cruise Lines - 0.3%
2,129,815 Carnival Corp...............................$ 87,854,869
Data Processing and Management - 0.4%
2,824,500 Automatic Data Processing, Inc................125,690,250
Diversified Financial Services - 0.5%
2,000,000 Citigroup, Inc................................150,500,000
Diversified Operations - 6.3%
192,980 Danaher Corp...................................12,821,109
4,767,200 General Electric Co...........................502,939,600
17,029,055 Tyco International, Ltd.....................1,383,610,719
1,899,371,428
Electronic Components - Semiconductors - 2.1%
6,073,385 Texas Instruments, Inc........................620,244,443
Finance - Credit Card - 2.0%
4,500,000 American Express Co...........................588,093,750
Finance - Investment Bankers/Brokers - 4.4%
11,938,360 Charles Schwab Corp.........................1,310,235,010
Finance - Mortgage Loan Banker - 0.8%
1,350,380 Fannie Mae.....................................95,792,581
2,027,630 Freddie Mac...................................127,233,782
223,026,363
Finance - Other Services - 0.7%
5,938,993 Newcourt Credit Group, Inc....................166,183,342
1,942,473 Newcourt Credit Group, Inc.
- New York Shares.............................54,874,862
221,058,204
Health Care Cost Containment - 0.1%
366,600 Healtheon Corp.*...............................16,588,650
Human Resources - 0.1%
888,518 Robert Half International, Inc.*(,)(#).........21,213,367
Internet Software - 1.0%
2,180,000 America Online, Inc.*.........................311,195,000
Medical - Biomedical and Genetic - 0.4%
2,045,985 Amgen, Inc.*..................................125,700,203
Medical - Drugs - 5.4%
2,986,350 Eli Lilly and Co..............................219,870,019
7,195,345 Pfizer, Inc...................................827,914,384
4,778,525 Pharmacia & Upjohn, Inc.......................267,597,400
5,931,995 Schering-Plough Corp..........................286,589,508
1,601,971,311
Medical - Wholesale Drug Distributors - 0.1%
376,300 Cardinal Health, Inc...........................22,507,444
Medical Information Systems - 0.5%
5,311,105 IMS Health, Inc...............................159,333,150
Medical Instruments - 0.7%
2,770,000 Medtronic, Inc................................199,266,875
Money Center Banks - 2.7%
20,325,160 Bank of New York Co., Inc.....................813,006,400
Multi-Line Insurance - 2.8%
7,101,802 American International Group, Inc..........$ 834,017,872
Multimedia - 7.8%
2,064,705 Meredith Corp.(#)..............................75,748,865
26,893,562 Time Warner, Inc............................1,882,549,340
8,981,420 Viacom, Inc. - Class B*.......................367,115,543
2,325,413,748
Networking Products - 6.4%
16,912,600 Cisco Systems, Inc.*........................1,929,093,438
Optical Supplies - 0.4%
1,224,320 Allergan, Inc.................................110,035,760
Pipelines - 2.3%
9,355,290 Enron Corp....................................703,985,572
Property and Casualty Insurance - 0.6%
1,355,755 Progressive Corp..............................194,550,843
Publishing - Periodicals - 1.1%
7,575,124 Wolters Kluwer N.V............................330,182,269
Radio - 0.8%
8,897,825 Infinity Broadcasting Corp. - Class A*(,)(#)..246,358,530
Retail - Building Products - 0.7%
3,607,950 Home Depot, Inc...............................216,251,503
Retail - Discount - 2.8%
6,827,365 Costco Companies, Inc.*.......................552,589,855
6,207,250 Wal-Mart Stores, Inc..........................285,533,500
838,123,355
Retail - Office Supplies - 0.5%
5,437,500 Staples, Inc.*................................163,125,000
Super-Regional Banks - 0.6%
2,076,795 Northern Trust Corp...........................193,401,534
Telecommunication Equipment - 1.1%
1,458,471 Nokia Oyj - Class A...........................112,792,951
3,075,075 Nokia Oyj (ADR) - Class A.....................228,132,127
340,925,078
Telephone - Long Distance - 2.6%
3,835,727 AT&T Corp.....................................193,704,214
7,268,725 MCI WorldCom, Inc.*...........................597,398,336
791,102,550
Television - 1.0%
5,140,674 Univision Communications, Inc. - Class
A*(,)(#).....................................297,516,508
Transportation - Air Freight - 1.5%
3,974,055 FDX Corp.*....................................447,329,566
- -----------------------------------------------------------------------
Total Common Stock (cost $16,648,620,807)................27,656,831,141
- -----------------------------------------------------------------------
Money Market - 0.7%
$195,000,000 Janus Government Money Market Fund 4.79%
(cost $195,000,000)..........................195,000,000
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
4 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Repurchase Agreement - 0.3%
$105,000,000 Deutsche Bank Securities, Inc., 4.96%,
dated 4/30/99, maturing 5/3/99, to be
repurchased at $105,043,400 collateralized
by $43,599,414 in Fannie Mae, 5.763%-
9.012%, 8/25/23-5/20/28; $73,088,825 in
Freddie Mac, 6.00%-6.50%, 8/15/26-4/15/27;
with respective values of $35,510,822 and
$71,589,178 (cost $105,000,000)...........$ 105,000,000
- -----------------------------------------------------------------------
Short-Term Corporate Notes - 1.0%
IBM Credit Corp.
100,000,000 4.80%, 6/18/99.................................99,360,000
JP Morgan Securities
100,000,000 4.80%, 5/10/99.................................99,880,000
UBS Financial, Inc.
100,000,000 4.78%, 7/6/99..................................99,114,000
- -----------------------------------------------------------------------
Total Short-Term Corporate Notes (cost $298,363,667)........298,354,000
- -----------------------------------------------------------------------
Time Deposits - 0.9%
SouthTrust Bank EDT
68,700,000 5.00%, 5/3/99..................................68,700,000
Sun Trust Bank EDT
195,000,000 5.00%, 5/3/99.................................195,000,000
- -----------------------------------------------------------------------
Total Time Deposits (cost $263,700,000).....................263,700,000
- -----------------------------------------------------------------------
U.S. Government Agencies - 3.7%
Fannie Mae:
100,000,000 4.69%, 7/19/99.................................99,003,000
100,000,000 4.65%, 8/5/99..................................98,783,000
50,000,000 4.73%, 8/16/99.................................49,318,500
50,000,000 4.70%, 8/18/99.................................49,305,500
100,000,000 4.69%, 8/19/99.................................98,599,000
100,000,000 4.70%, 9/1/99..................................98,430,000
100,000,000 4.65%, 9/16/99.................................98,235,000
50,000,000 4.65%, 9/17/99.................................49,111,000
100,000,000 4.66%, 10/19/99................................97,807,000
Federal Home Loan Bank System:
50,000,000 4.68%, 6/29/99.................................49,616,500
50,000,000 4.68%, 7/30/99.................................49,430,000
100,000,000 4.67%, 4/10/00.................................95,512,000
Freddie Mac:
90,500,000 4.69%, 6/11/99.................................90,009,389
50,000,000 4.76%, 7/9/99..................................49,566,000
50,000,000 4.71%, 7/16/99.................................49,521,000
- -----------------------------------------------------------------------
Total U.S. Government Agencies (cost $1,122,016,389)......1,122,246,889
- -----------------------------------------------------------------------
Total Investments (total cost $18,632,700,863) - 98.9%...29,641,132,030
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities -
1.1%.......................................................338,191,624
- -----------------------------------------------------------------------
Net Assets - 100%.......................................$29,979,323,654
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
Bermuda 4.7% $ 1,383,610,719
Canada 0.7% 221,058,204
Finland 1.2% 340,925,078
Netherlands 1.1% 330,182,268
United States(++) 92.3% 27,365,355,761
- ------------------------------------------------------------------------
Total 100.0% $29,641,132,030
</TABLE>
(++)Includes Short-Term Securities (85.6% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 5
<PAGE>
Janus Balanced Fund
Blaine Rollins
portfolio manager
For the six-month period ended April 30, 1999, Janus Balanced Fund returned
26.66%, while the S&P 500 Index gained 22.31% and the Lehman Brothers
Government/Corporate Bond Index increased (0.12%).(1) These results helped the
Fund achieve top-quartile performance for the 12 months ended April 30, 1999,
placing it 7th out of 422 balanced funds ranked by Lipper, Inc., a leading
mutual fund rating company.(2)
I believe the Fund's ongoing success reflects the skill and persistence of the
Janus research team, which continued to excel at finding companies with strong
growth potential, robust earnings and leading market positions. Many of these
companies were tapping into compelling growth trends in the financial services,
cable and media areas.
We were especially pleased with the standout performance of financial services
innovator Charles Schwab. Trading over Schwab's online site has grown
substantially in recent months, driving up its earnings growth. The online
trading business is particularly profitable because it does not require a live
person taking phone calls and processing orders. Schwab is well ahead of its
largest retail brokerage competitors in building out its Web offerings, giving
it a substantial advantage in this promising service area.
Meanwhile, recent developments have underscored the potential we have seen for
some time in the cable industry. Cable franchises such as Comcast and Time
Warner (via the Houston Industries convertible preferred stock), two companies
that contributed significantly to the Fund's strong performance, continue to
improve their business models while they prepare for the rollout of new
offerings, which include telephone services, cable-based Internet access and
digital cable. As more investors and telecommunications companies wake up to the
value of these cable networks, we anticipate seeing more deals akin to AT&T's
recently announced acquisition of MediaOne Group, another position in the Fund.
News of this acquisition boosted MediaOne Group's stock and also reaffirmed our
focus on the cable area. Because we believe consolidation will continue in this
industry, we've maintained fixed-income investment positions in a number of
smaller cable franchises, including Adelphia Communications and Classic Cable.
These companies offer solid fundamentals as well as the potential of being
acquired by a larger player.
Our excitement for the cable industry also contributed to our decision to add
Viacom, which owns such valuable cable brands as Showtime Networks, MTV and
Nickelodeon. We feel this powerful arsenal of branded content provides Viacom
with tremendous growth potential, particularly in international markets.
Nickelodeon is gaining audiences in Latin America, while MTV is as popular with
Asian teens as it is with kids in the U.S.
During the period, we continued to focus on Treasury and fixed-income bonds with
intermediate maturities. Additionally, we took advantage of recent dislocations
in the credit market to add a number of quality high-yield corporate and
convertible bonds that benefited our overall risk/return profile. As always, the
Janus fixed-income research team has excelled in identifying quality high-yield
and convertible opportunities.
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 31.0% 36.9%
Fixed-Income Securities
U.S. Treasury Notes 7.5% 9.9%
Investment-Grade
Corporate Bonds 18.3% 7.2%
High-Yield/High Risk
Corporate Bonds 25.2% 19.7%
Preferred Stock 15.1% 17.4%
Top 10
Equities/Preferred (%
of Assets) 23.2% 29.6%
Number of Stocks 53 47
Cash & Cash Equivalents 2.9% 8.9%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Cable Television 16.3% 18.4%
Multimedia 7.0% 2.8%
Electric - Integrated 6.4% 6.7%
Telecommunication Services 4.7% 2.0%
Finance - Investment
Bankers/Brokers 3.6% 1.7%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity/Preferred Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Houston Industries, Inc.,
convertible, 7.00% 6.4% 6.7%
Charles Schwab Corp. 3.2% 1.7%
MediaOne Group, Inc., convertible,
4.50% 2.8% 3.2%
Viacom Inc. - Class B 2.0% --
Royal Caribbean Cruises, Ltd.,
convertible, 7.25% 1.7% 3.4%
Comcast Corp. - Special Class A 1.7% 3.3%
Merrill Lynch & Co. Inc.,
convertible, 6.00% STRYPES (Cox
Communications, Inc.) 1.4% --
Cisco Systems, Inc. 1.4% 1.6%
Univision Communications,
Inc. - Class A 1.4% 1.1%
Bank of New York Co., Inc. 1.2% 1.4%
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A balanced fund is defined by Lipper, Inc. as "a fund whose primary
objective is to conserve principal by maintaining at all times a balanced
fund of both stocks and bonds. Typically the stock/bond ratio ranges around
60%/40%." As of April 30, 1999, Janus Balanced Fund ranked 5/177 for the
5-year period. Lipper's ranking is based on total return, including
reinvestment of dividends and capital gains for the stated period.
Past performance does not guarantee future results.
6 Janus Equity Funds / April 30, 1999
<PAGE>
While we were pleased with our overall results, there were a few positions that
underperformed during the period. For example, we view the recent performance of
longtime holding Dell Computer with caution. Dell traded lower after reporting a
slowdown in computer sales that suggests it may be losing ground to lower-price
competitors. We decided to trim our position in Dell in order to redeploy
capital in areas with better long-term growth potential. Additionally, we
decided to sell our position in Alza, a pharmaceutical company that invested
heavily in its sales force to market its new incontinence drug Ditropan. Sales
of Ditropan did not keep pace with expectations, which left us concerned about
the company's near-term outlook.
Going forward, we believe the U.S. economy will remain healthy, supported by the
ongoing consumer spending spree. However, lingering weakness in international
markets suggests that many companies may still find it difficult to meet their
earnings growth targets. For this reason, we remain committed to finding
companies that can grow their earnings in any kind of market environment.
As part of this commitment, I have personally met with half the companies in the
Fund since the beginning of the year, while our analysts have visited nearly all
the rest. This dedication to research gives us confidence that we can continue
to add value where it counts most - in the Fund's results.
Thank you for your continued investment in Janus Balanced Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Balanced Fund, the S&P 500 Index and the Lehman Brothers
Government/Corporate Bond Index. Janus Balanced Fund is represented by a shaded
area of green. The S&P 500 Index is represented by a solid black line. The
Lehman Brothers Government/Corporate Bond Index is represented by a solid gray
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 Balanced Fund at $32,069 as compared to the S&P 500 Index at
$37,463 and the Lehman Brothers Government/Corporate Bond Index at $15,872.
Average Annual Total Return
for the periods ended
One Year, 28.29%
Five Year, 20.83%
Since 9/1/92*, 19.12%
JANUS BALANCED FUND - $32,069
S&P 500 INDEX - $37,463
Lehman Brothers
Government/Corporate
Bond Index - $15,872
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 30.7%
Airlines - 0%
17,140 Ryanair Holdings PLC (ADR)*....................$ 767,014
Brewery - 0.5%
214,303 Heineken N.V...................................10,769,328
Broadcast Services and Programming - 0.5%
174,385 AT&T Corp./Liberty Media Group - Class A*......11,138,842
Cable Television - 1.7%
553,041 Comcast Corp. - Special Class A................36,327,881
Circuits - 1.6%
321,460 Linear Technology Corp.........................18,283,038
295,190 Maxim Integrated Products, Inc.*...............16,530,640
34,813,678
Commercial Banks - 0.8%
151,330 Carolina First Corp.............................4,085,910
206,475 Firstar Corp....................................6,207,155
12,475 M & T Bank Corp.................................6,973,525
17,266,590
Commercial Services - 0.6%
242,035 Paychex, Inc...................................12,358,912
Computer Software - 1.0%
227,640 Microsoft Corp.*..............................$18,509,978
232,575 Wind River Systems, Inc.*.......................3,488,625
21,998,603
Computers - Micro - 0.3%
127,910 Dell Computer Corp.*............................5,268,293
Cruise Lines - 0.8%
185,335 Carnival Corp...................................7,645,069
272,775 Royal Caribbean Cruises, Ltd...................10,075,627
17,720,696
Electronic Components - Semiconductors - 0.5%
108,420 Texas Instruments, Inc.........................11,072,393
Finance - Credit Card - 0.8%
131,255 American Express Co............................17,153,387
Finance - Investment Bankers/Brokers - 3.2%
625,240 Charles Schwab Corp............................68,620,090
Finance - Mortgage Loan Banker - 0.3%
96,930 Fannie Mae......................................6,875,972
Human Resources - 0.3%
222,687 Robert Half International, Inc.*................5,316,652
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 7
<PAGE>
Janus Balanced Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Instruments - Scientific - 0.7%
379,795 Dionex Corp.*.................................$15,571,594
Investment Management and Advisory Services - 0.4%
281,695 Affiliated Managers Group, Inc.*................8,186,761
Life and Health Insurance - 1.0%
323,944 Reinsurance Group of America, Inc..............13,848,606
334,160 StanCorp Financial Group, Inc.*.................8,040,725
21,889,331
Medical - Drugs - 1.6%
118,205 Pfizer, Inc....................................13,600,963
307,940 Pharmacia & Upjohn, Inc........................17,244,640
76,540 Schering-Plough Corp............................3,697,839
34,543,442
Medical Information Systems - 0.3%
181,600 IMS Health, Inc.................................5,448,000
Money Center Banks - 1.2%
637,775 Bank of New York Co., Inc......................25,511,000
Multimedia - 2.4%
230,360 Meredith Corp...................................8,451,333
1,027,655 Viacom, Inc. - Class B*........................42,005,398
50,456,731
Networking Products - 1.4%
269,460 Cisco Systems, Inc.*...........................30,735,280
Optical Supplies - 0.8%
59,600 Allergan, Inc...................................5,356,550
159,785 Bausch & Lomb, Inc.............................11,983,875
17,340,425
Pipelines - 1.1%
322,310 Enron Corp.....................................24,253,827
Property and Casualty Insurance - 1.5%
226,675 Mutual Risk Management, Ltd.....................8,811,991
158,630 Progressive Corp...............................22,763,405
31,575,396
Radio - 1.1%
176,345 Heftel Broadcasting Corp. - Class A*............9,588,759
481,180 Infinity Broadcasting Corp. - Class A*.........13,322,671
22,911,430
Retail - Discount - 0.5%
139,175 Costco Companies, Inc.*........................11,264,476
Retail - Internet - 1.2%
34,575 Amazon.com, Inc.*...............................5,949,061
99,915 eBay, Inc.*....................................20,794,809
26,743,870
Super-Regional Banks - 0.6%
130,945 Northern Trust Corp............................12,194,252
Telecommunication Equipment - 0.6%
178,590 Nokia Oyj (ADR) - Class A......................13,249,145
</TABLE>
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Television - 1.4%
516,957 Univision Communications, Inc. - Class A*....$ 29,918,885
- -----------------------------------------------------------------------
Total Common Stock (cost $470,054,909)......................659,262,176
- -----------------------------------------------------------------------
Corporate Bonds - 41.7%
Automotive - Truck Parts and Equipment - 1.2%
Federal-Mogul Co.:
$12,000,000 7.375%, notes, due 1/15/06(+)..................11,745,000
13,175,000 7.50%, notes, due 1/15/09(+)...................12,878,563
24,623,563
Brewery - 0.3%
6,350,000 Anheuser-Busch Companies, Inc., 5.65%
notes, due 9/15/08.............................6,175,375
Cable Television - 9.8%
Adelphia Communications Corp.:
10,295,000 9.25%, senior notes, due 10/1/02...............10,861,225
11,980,000 10.50%, senior notes, due 7/15/04..............13,387,650
12,380,000 8.375%, senior notes, due 2/1/08...............12,720,450
2,000,000 7.75%, senior notes, due 1/15/09(+).............1,995,000
52,200,000 7.875%, senior notes, due 5/1/09...............52,330,500
1,500,000 Century Communications Corp., 8.875%
senior notes, due 1/15/07......................1,586,250
56,700,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09(+)...........58,117,500
6,360,000 Classic Cable, Inc., 9.875%
senior subordinated notes, due 8/1/08..........6,773,400
11,000,000 Falcon Holdings Group L.P., 8.375%
debentures, due 4/15/10.......................11,192,500
6,000,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06........6,735,000
11,905,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08.....................12,708,588
4,000,000 Lenfest Communications, Inc., 7.625%
senior notes, due 2/15/08......................4,230,000
Mediacom L.L.C.:
11,500,000 8.50%, senior notes, due 4/15/08...............11,758,750
3,750,000 7.875%, senior notes, due 2/15/11(+)............3,750,000
2,635,000 Rifkin Acquisition Partners L.P., 11.125%
senior subordinated notes, due 1/15/06.........2,994,019
211,140,832
Casino Hotels - 0.1%
1,759,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06.........1,873,335
Cellular Telecommunications - 0.8%
16,160,000 Orange PLC, 8.00%
senior notes, due 8/1/08......................16,604,400
Commercial Banks - 0.3%
7,000,000 First Union National Bank, 5.80%
subordinated notes, due 12/1/08................6,685,000
Computer Services - 0.1%
1,980,000 Globix Corp., 13.00%
senior notes, due 5/1/05.......................2,014,650
</TABLE>
See Notes to Schedules of Investments.
8 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Computer Software - 0.5%
$ 6,857,000 Aspen Technology, Inc., 5.25%
convertible subordinated debentures,
due 6/15/05..................................$ 3,917,061
9,000,000 Wind River Systems, Inc., 5.00%
convertible subordinated notes, due 8/1/02.....7,503,750
11,420,811
Computers - Memory Devices - 0.4%
5,000,000 VERITAS Software Corp., 5.25%
convertible subordinated notes, due 11/1/04....8,787,500
Computers - Micro - 1.3%
8,175,000 Dell Computer Corp., 6.55%
senior notes, due 4/15/08......................8,205,656
IBM Corp.:
4,000,000 6.375%, notes, due 6/15/00......................4,040,000
16,175,000 5.375%, notes, due 2/1/09......................15,305,594
27,551,250
Cosmetics and Toiletries - 0.6%
3,050,000 AKI, Inc., 10.50%
senior notes, due 7/1/08.......................2,897,500
10,000,000 Procter and Gamble Co., 5.25%
notes, due 9/15/03.............................9,800,000
12,697,500
Cruise Lines - 0.5%
Royal Caribbean Cruises, Ltd.:
6,575,000 7.00%, senior notes, due 10/15/07...............6,525,688
3,866,000 6.75%, senior notes, due 3/15/08................3,769,350
10,295,038
Distribution and Wholesale - 0.2%
5,000,000 Aviation Sales Co., 8.125%
company guaranteed notes, due 2/15/08..........5,050,000
Diversified Operations - 2.5%
Tyco International Group S.A.:
17,124,000 6.125%, notes, due 11/1/08.....................16,695,900
37,312,000 6.125%, notes, due 1/15/09.....................36,332,560
53,028,460
Fiber Optics - 0.2%
4,775,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 11/15/08(+)..................5,168,938
Finance - Auto Loans - 1.6%
23,328,000 Ford Motor Credit Corp., 5.80%
senior notes, due 1/12/09.....................22,307,400
12,328,000 General Motors Acceptance Corp., 5.85%
senior unsubordinated notes, due 1/14/09......11,788,650
34,096,050
Finance - Investment Bankers/Brokers - 0.4%
8,000,000 Merrill Lynch & Co., Inc., 6.375%
notes, due 10/15/08............................7,970,000
Finance - Leasing Companies - 0.7%
15,000,000 AT&T Capital Corp., 7.50%
company guaranteed notes, due 11/15/00........15,358,500
Finance - Other Services - 1.2%
$24,320,000 Newcourt Credit Group, Inc., 6.875%
notes, due 2/16/05(+)........................$24,836,800
Food - Canned - 0.7%
15,500,000 Campbell Soup Co., 4.75%
notes, due 10/1/03............................14,880,000
Food - Retail - 0.5%
10,000,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08..........10,475,000
907,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07.............956,885
11,431,885
Hotels and Motels - 0.1%
2,705,000 HMH Properties, Inc., 7.875%
company guaranteed notes, due 8/1/08...........2,617,088
Human Resources - 0.2%
5,000,000 Interim Services, Inc., 4.50%
convertible subordinated notes, due 6/1/05.....3,962,500
Internet Software - 3.5%
3,070,000 America Online, Inc., 4.00%
convertible subordinated notes, due 11/15/02..32,849,000
Exodus Communications, Inc.:
15,365,000 5.00%, convertible subordinated notes,
due 3/15/06(+)................................31,479,044
3,634,000 11.25%, senior notes, due 7/1/08................3,988,315
7,300,000 MindSpring Enterprises, Inc., 5.00%
convertible subordinated notes, due 4/15/06....7,765,375
76,081,734
Leisure, Recreation and Gaming - 0.1%
2,706,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05..........2,590,995
Life and Health Insurance - 0.7%
10,000,000 AFLAC, Inc., 6.50%
senior notes, due 4/15/09(+)...................9,850,000
4,000,000 SunAmerica, Inc., 6.75%
notes, due 10/1/07.............................4,160,000
14,010,000
Multimedia - 4.3%
5,000,000 News America, Inc., 6.625%
senior notes, due 1/9/08.......................5,006,250
Paramount Communications, Inc.:
7,460,000 8.25%, debentures, due 8/1/22...................7,805,025
17,531,000 7.50%, debentures, due 7/15/23.................17,026,984
12,500,000 Time Warner, Inc., 8.11%
notes, due 8/15/06............................13,703,125
Viacom, Inc.:
39,107,000 7.75%, senior notes, due 6/1/05................41,453,420
968,000 7.625%, company guaranteed notes,
due 1/15/16....................................1,021,240
Walt Disney Co. (The):
3,400,000 6.375%, senior notes, due 3/30/01...............3,446,750
2,500,000 6.75%, senior notes, due 3/30/06................2,596,875
92,059,669
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 9
<PAGE>
Janus Balanced Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- --------------------------------------------------------------------------
<C> <S> <C>
Pipelines - 0%
$ 1,000,000 Enron Corp., 6.75%
notes, due 8/1/09...............................$ 1,010,000
Property and Casualty Insurance - 0.7%
16,121,000 Progressive Corp., 6.625%
senior notes, due 3/1/29.........................15,355,253
Retail - Building Products - 1.3%
11,050,000 Home Depot, Inc., 3.25%
convertible subordinated notes, due 10/1/01......27,887,438
Retail - Catalog Shopping - 0%
541,000 R.H. Donnelly, Inc., 9.125%
senior subordinated notes, due 6/1/08...............574,136
Retail - Internet - 1.3%
22,848,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures,
due 2/1/09(+)....................................28,874,160
Retail - Music Store - 0.5%
10,527,000 MTS, Inc., 9.375%
senior subordinated notes, due 5/1/05............10,434,889
Retail - Restaurants - 0.4%
6,000,000 McDonald's Corp., 5.35%
senior notes, due 9/15/08.........................5,692,500
Tricon Global Restaurants, Inc.:
552,000 7.45%, senior notes, due 5/15/05.....................562,350
2,619,000 7.65%, senior notes, due 5/15/08...................2,707,391
8,962,241
Super-Regional Banks - 0.2%
5,000,000 Wachovia Corp., 5.625%
subordinated notes, due 12/15/08..................4,731,250
Telecommunication Equipment - 0.4%
10,000,000 Lucent Technologies, Inc., 5.50%
notes, due 11/15/08...............................9,550,000
Telecommunication Services - 3.2%
7,010,000 Bresnan Communications Holding Co., 8.00%
senior notes, due 2/1/09(+).......................7,202,775
9,319,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05...........10,390,685
5,000,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08.............5,587,500
10,275,000 Hyperion Telecommunications, 12.00%
senior subordinated notes, due 11/1/07(+)........10,814,438
15,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08.........................15,300,000
McLeodUSA, Inc.:
1,685,000 9.25%, senior notes, due 7/15/07...................1,773,463
3,340,000 8.125%, senior notes, due 2/15/09(+)...............3,314,950
9,530,000 NTL, Inc., 7.00%
convertible subordinated notes, due 12/15/08(+)..13,615,988
67,999,799
Telephone - Integrated - 0.3%
Intermedia Communications, Inc.:
$ 4,539,000 8.50%, senior notes, due 1/15/08.................$ 4,516,305
1,670,000 8.60%, senior notes, due 6/1/08....................1,670,000
6,186,305
Telephone - Long Distance - 0.6%
10,000,000 MCI Worldcom, Inc., 6.40%
senior notes, due 8/15/05........................10,075,000
1,567,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07.................1,807,926
11,882,926
- --------------------------------------------------------------------------
Total Corporate Bonds (cost $856,451,799)......................896,460,270
- --------------------------------------------------------------------------
Foreign Bonds - 1.8%
Finance - Other Services - 0.3%
EUR 6,900 Ono Finance PLC, 13.00%
units, due 5/1/09(+)................................7,464,130
Telecommunication Services - 1.5%
GBP 9,126,000 COLT Telecom Group PLC, 2.00%
convertible bonds due, 3/29/06(+)...................9,606,614
GBP 22,000,000 NTL, Inc., zero coupon
senior notes, due 4/15/09..........................21,518,987
31,125,601
- --------------------------------------------------------------------------
Total Foreign Bonds (cost $39,255,903)..........................38,589,731
- --------------------------------------------------------------------------
Preferred Stock - 15.1%
Automotive - Truck Parts and Equipment - 0.8%
318,266 Federal-Mogul Financial Trust Corp.,
convertible, 7.00%...............................17,425,064
Cable Television - 4.8%
375,172 MediaOne Group, Inc., convertible, 4.50%..........60,402,692
138,710 MediaOne Group, Inc., convertible, 6.25%..........11,114,139
495,269 Merrill Lynch & Co., Inc., convertible, 6.00%
STRYPES (Cox Communications, Inc.)...............31,078,130
102,594,961
Cruise Lines - 1.7%
322,253 Royal Caribbean Cruises, Ltd.,
convertible, 7.25%...............................37,059,095
Electric - Integrated - 6.4%
1,159,375 Houston Industries, Inc., convertible, 7.00%.....136,806,250
Internet Software - 0.4%
163,210 PSINet, Inc. - Series C, convertible, 6.75%........8,323,710
Telephone - Long Distance - 1.0%
301,985 Qwest Trends Trust, convertible, 5.75%(+).........22,422,386
- --------------------------------------------------------------------------
Total Preferred Stock (cost $248,814,811)......................324,631,466
- --------------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
10 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Warrants - 0.3%
Computer Services - 0%
1,980 Bell Technology Group, Ltd. - expires
5/1/05*.....................................$ 311,850
Multimedia - 0.3%
473,205 Viacom, Inc. - expires 7/7/99*..................6,624,870
- -----------------------------------------------------------------------
Total Warrants (cost $6,863,641)..............................6,936,720
- -----------------------------------------------------------------------
U.S. Government Obligations - 7.5%
U.S. Treasury Notes:
$ 2,000,000 6.625%, due 4/30/02.............................2,078,020
15,000,000 6.50%, due 10/15/06............................15,972,150
19,000,000 6.625%, due 5/15/07............................20,449,890
23,275,000 6.125%, due 8/15/07............................24,310,272
49,000,000 5.625%, due 5/15/08............................49,677,670
52,000,000 4.75%, due 11/15/08............................49,659,480
- -----------------------------------------------------------------------
Total U.S. Government Obligations (cost $164,659,708).......162,147,482
- -----------------------------------------------------------------------
Short-Term Corporate Note - 2.1%
CIT Group Holdings, Inc.
45,100,000 4.90%, 5/3/99 (amortized cost $45,087,723).....45,087,723
- -----------------------------------------------------------------------
Total Investments (total cost $1,831,188,494) - 99.2%.....2,133,115,568
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 0.8%..........................................17,030,458
- -----------------------------------------------------------------------
Net Assets - 100%........................................$2,150,146,026
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
Bermuda 2.9% $ 61,840,451
Canada 1.2% 24,836,000
Finland 0.6% 13,249,145
Ireland -- 767,014
Netherlands 0.5% 10,769,328
United Kingdom 2.6% 55,194,131
United States(++) 92.2% 1,966,459,499
- -----------------------------------------------------------------------
Total 100.0% $2,133,115,568
</TABLE>
(++)Includes Short-Term Securities (92.6% excluding Short-Term Securities)
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>
British Pound 10/21/99 5,900,000 $9,484,250 $47,569
- ----------------------------------------------------------------------
Total $9,484,250 $47,569
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 11
<PAGE>
Janus Enterprise Fund
[James P. Goff Photo]
James Goff
portfolio manager
Janus Enterprise Fund showed banner performance during the six-month period
ended April 30, 1999, gaining a vigorous 57.55%. By comparison, the Standard &
Poor's 400 MidCap Index returned 18.86%.(1) These results placed the Fund 8th
out of 349 midcap funds tracked by Lipper, Inc., a leading mutual fund rating
company, for the 12-month period ended April 30, 1999.(2)
I attribute the sharp divergence between the Fund's returns and those of its
benchmark to differences in composition. While I adhere to my discipline of
investing in midcap stocks, I've concentrated the portfolio on quality growth
opportunities such as those in the technology, telecommunications, media, and
cable areas. This concentration, in addition to our ability to avoid some of the
market's numerous blowups, helped us outperform the rank and file of the midcap
market and also the broader equity universe.
One trend we are particularly excited about is the rapid growth of the Internet.
We believe the Internet has the potential to transform not only our economy, but
also our everyday lives. A tremendous investment opportunity in this area is
Internet auction site eBay. With 87% of all online auction listings and 97.5% of
all sales, eBay is clearly dominating this emerging market. Furthermore, this
company has strong growth prospects, especially in light of its recent
partnership with America Online (AOL), which gives it preferential access to the
roughly 18 million AOL subscribers. Consequently, many businesses needing to
target large audiences are doing so through eBay.
We also added a new position in Exodus Communications. As companies build out
their Web offerings, they need a secure way of storing computer platforms that
house their data. Exodus builds and maintains guarded, climate-controlled
bunkers that provide backup power systems and telecommunications networks to
ensure companies secure, sustained operations of their online systems. The
growth potential of this market is tremendous, and we are very excited about
Exodus' leadership position.
The explosion in Internet use is also driving growth in other areas, including
telecommunications. The rapid expansion in data communication and networking
needs is increasing demand for high-capacity broadband networks. This has
created opportunities for up-and-coming telecommunications providers such as
Metromedia Fiber Network and Nextlink Communications, two new positions in the
Fund that were also strong-performing holdings during the period. These
companies are incorporating the most up-to-date fiber-optic technology into
their new networks, giving them an advantage over traditional telephone
companies that are burdened by older, less-efficient equipment.
The buildout of broadband telecommunications networks is also benefiting a
number of our cable holdings. With their established broadband pipeline into the
home, cable franchises can provide the vital last-mile link between these new
fiber-optic networks and the end consumer. Additionally, companies are
leveraging their systems by generating more revenue streams through new services
such as high-speed Internet access and cable telephony. As the strategic value
of these cable networks gains recognition, we see it working to the advantage of
a number of our smaller cable holdings, including TCA Cable TV and Adelphia
Communications.
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 98.1% 96.4%
Foreign 7.1% 10.2%
Top 10 Equities (% of Assets) 41.0% 48.6%
Number of Stocks 48 43
Cash & Cash Equivalents 1.9% 3.6%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Retail - Internet 9.0% 0.4%
Telecommunication
Services 8.7% --
Radio 8.7% 13.5%
Internet Software 8.3% 3.3%
Cable Television 6.9% 2.0%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Apollo Group, Inc. - Class A 5.5% 7.6%
eBay, Inc. 4.9% --
Vitesse Semiconductor Corp. 4.6% 8.5%
Amazon.com, Inc. 4.1% 0.4%
Exodus Communications, Inc. 3.9% --
Heftel Broadcasting Corp. - Class A 3.8% 4.3%
Metromedia Fiber Network,
Inc. - Class A 3.8% --
Paychex, Inc. 3.7% 4.0%
VERITAS Software Corp. 3.4% 4.3%
NEXTLINK Communications, Inc. 3.3% --
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A midcap fund is defined by Lipper, Inc. as a "fund that by prospectus or
portfolio practice invests primarily in companies with market
capitalizations less than $5 billion at the time of purchase." As of April
30, 1999, Janus Enterprise Fund ranked 5/121 for the 5-year performance
period. The ranking is based on total return, including reinvestment of
dividends and capital gains for the stated period.
Past performance does not guarantee future results.
12 Janus Equity Funds / April 30, 1999
<PAGE>
While we were pleased with our overall performance, a few of our holdings
underperformed. An example is Apollo Group, which owns the University of
Phoenix, a nontraditional institution that caters to working adults. A cloud has
been lingering over this company regarding a negative Department of Education
(D.O.E.) review that failed to take into account the University's nontraditional
format. Following a rebuttal from the University, the D.O.E. conducted further
inquiry and is now expected to issue a retraction. Meanwhile, the company is
expanding into new markets, receiving approval to open facilities in
Pennsylvania and Maryland. Because we believe Apollo's business fundamentals are
still strong, we continue to hold its stock.
Looking ahead, we remain upbeat on prospects for the U.S. economy and are
beginning to see signs of improvement in Japan and the emerging market
economies. Nonetheless, we will continue to keep a close eye on inflationary
pressures, especially on labor costs, which we view to be the biggest risk to
the economy in this tight job market.
We'll also continue to apply Janus' exacting research standards and discipline
to finding growth companies with strong management and unique business models
that can withstand new competitors and economic cycles. Our goal is to find
earnings growth that lasts. Through this approach, I believe we can keep
producing impressive results for our investors.
Thank you for your investment in Janus Enterprise Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Enterprise Fund and the S&P MidCap 400 Index. Janus Enterprise Fund is
represented by a shaded area of green. The S&P MidCap 400 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 Enterprise Fund at $43,005 as compared to
the S&P MidCap 400 Index at $30,919.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 49.07%
Five Year, 24.93%
Since 9/1/92*, 24.49%
JANUS ENTERPRISE FUND - $43,005
S&P MidCap 400 Index - $30,919
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 98.1%
Advertising Sales - 0.9%
388,475 Outdoor Systems, Inc.*........................$ 9,784,714
Airlines - 1.0%
235,686 Ryanair Holdings PLC (ADR)*....................10,546,948
Audio and Video Products - 1.7%
181,615 Gemstar International Group, Ltd.*.............19,137,681
Broadcast Services and Programming - 3.2%
502,620 Clear Channel Communications, Inc.*............34,932,090
Cable Television - 6.9%
452,080 Adelphia Communications Corp. - Class A*.......30,854,460
956,720 Rogers Communications, Inc.*...................17,878,705
538,160 TCA Cable TV, Inc..............................26,807,095
75,540,260
Cellular Telecommunications - 2.5%
884,810 Crown Castle International Corp.*..............16,921,991
258,365 Sprint Corp./PCS Group*........................10,948,217
27,870,208
Circuits - 4.6%
1,093,695 Vitesse Semiconductor Corp.*...................50,651,750
Commercial Banks - 1.8%
647,380 Firstar Corp. ................................$19,461,861
Commercial Services - 3.7%
806,073 Paychex, Inc...................................41,160,103
Computer Data Security - 0.9%
85,410 VeriSign, Inc.*.................................9,822,150
Computer Services - 2.3%
524,225 CheckFree Holdings Corp.*......................25,162,800
Computers - Memory Devices - 3.4%
529,695 VERITAS Software Corp.*........................37,608,345
Fiber Optics - 5.0%
298,920 E-Tek Dynamics, Inc.*..........................12,853,560
494,855 Metromedia Fiber Network, Inc. - Class A*......41,691,534
54,545,094
Finance - Investment Bankers/Brokers - 1.7%
164,548 Charles Schwab Corp............................18,059,143
Human Resources - 0.8%
833,342 Capita Group PLC................................8,801,972
Internet Content - 0.4%
38,385 Inktomi Corp.*..................................4,596,604
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 13
<PAGE>
Janus Enterprise Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Internet Software - 8.3%
129,835 Concentric Network Corp.*.....................$10,841,222
481,730 Exodus Communications, Inc.*...................43,415,916
88,520 MindSpring Enterprises, Inc.*...................8,580,907
498,040 PSINet, Inc.*..................................25,151,020
50,315 Verio, Inc.*....................................3,572,365
91,561,430
Lasers - Systems and Components - 1.0%
89,700 Uniphase Corp.*................................10,887,337
Medical - Drugs - 4.4%
310,853 MedImmune, Inc.*...............................17,135,772
369,225 Sepracor, Inc.*................................31,199,512
48,335,284
Medical - Generic Drugs - 1.5%
416,085 Watson Pharmaceuticals, Inc.*..................16,851,442
Radio - 8.7%
392,655 Chancellor Media Corp.*........................21,546,943
769,515 Heftel Broadcasting Corp. - Class A*...........41,842,378
402,625 Jacor Communications, Inc.*....................32,310,656
95,699,977
Resorts and Theme Parks - 0.6%
197,870 Premier Parks, Inc.*............................6,838,882
Retail - Catalog Shopping - 0.6%
300,000 MSC Industrial Direct Co., Inc. - Class A*......6,468,750
Retail - Internet - 9.0%
264,335 Amazon.com, Inc.*..............................45,482,141
259,175 eBay, Inc.*....................................53,940,797
99,422,938
Retail - Restaurants - 1.8%
1,348,249 PizzaExpress PLC...............................19,862,964
Schools - 6.5%
2,448,641 Apollo Group, Inc. - Class A*..................60,603,865
426,425 ITT Educational Services, Inc.*................10,474,064
71,077,929
Telecommunication Services - 8.7%
285,940 Level 3 Communications, Inc.*..................25,752,471
625,070 McLeodUSA, Inc. - Class A*.....................35,042,987
371,965 MetroNet Communications Corp.*.................20,644,058
187,230 NTL, Inc.*.....................................14,276,288
95,715,804
Telephone - Integrated - 3.3%
498,710 NEXTLINK Communications, Inc.*..............$ 36,530,507
Television - 1.1%
209,250 Univision Communications, Inc. - Class A*......12,110,344
Therapeutics - 0.1%
16,865 QLT PhotoTherapeutics, Inc.*......................770,520
Wireless Equipment - 1.7%
494,650 American Tower Corp.*..........................10,480,397
146,540 RF Micro Devices, Inc.*.........................8,187,923
18,668,320
- -----------------------------------------------------------------------
Total Common Stock (cost $748,719,443)....................1,078,484,151
- -----------------------------------------------------------------------
Short-Term Corporate Note - 2.1%
CIT Group Holdings, Inc.
$23,200,000 4.90%, 5/3/99 (amortized cost $23,193,684).....23,193,684
- -----------------------------------------------------------------------
Total Investments (total cost $771,913,127) - 100.2%......1,101,677,835
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.2%)............................................(1,702,275)
- -----------------------------------------------------------------------
Net Assets - 100%........................................$1,099,975,560
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
Canada 3.6% $ 39,293,283
Ireland 0.9% 10,546,948
United Kingdom 2.6% 28,664,936
United States(++) 92.9% 1,023,172,668
- -----------------------------------------------------------------------
Total 100.0% $1,101,677,835
</TABLE>
(++)Includes Short-Term Securities (90.8% excluding Short-Term Securities)
See Notes to Schedules of Investments.
14 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Equity Income Fund
[Blaine Rollins Photo]
Blaine Rollins
portfolio manager
I'm pleased to report that for the six months ended April 30, 1999, Janus Equity
Income Fund returned 41.53%, outperforming the Standard & Poor's 500 Index,
which gained 22.31%.(1) Additionally, for the 12 months ended April 30, 1999,
the Fund achieved top-quartile performance, ranking an impressive 2nd out of 236
equity income funds tracked by Lipper, Inc., a leading mutual fund rating
company.(2)
Vigorous economic growth in the U.S. supported a strong domestic equity market
during the period. Meanwhile, slower growth abroad helped keep inflation in
check and interest rates low. In this environment, we continued to focus on
achieving the highest returns possible for our investors while minimizing risk.
We did this by investing in a mix of equity and income-producing securities of
companies that have maintained sound fundamentals and solid growth. Many of
these companies are capitalizing on powerful growth trends in the economy,
including robust consumer spending, the rising use of the Internet, and changes
in the global telecommunications industry.
In retailing, Costco, the membership-based discount retailer, was one of the
fastest-growing businesses in the Fund. Because of the tremendous volume of its
business, Costco can negotiate deep discounts from suppliers on everything from
bulk foods to computers. It then passes these discounts along to its customers,
creating tremendous loyalty and attracting more members to its existing stores.
We believe this is a compelling blueprint for growth, which the company is
carrying over into new geographic markets.
We also continued to benefit from the ongoing success of Cisco Systems. As the
leading supplier of networking equipment and architecture, this company has a
stake in two exciting developments currently helping to drive the economy - the
expansion of the Internet and the buildout of fiber-optic telecommunications
networks. In addition to having one of the best-managed companies in the
industry, we believe the long-term prospects for Cisco are strong.
The growth in networking and broadband telecommunications is also creating value
for our cable holdings, including Comcast and Cox Communications (via the
Merrill Lynch STRYPES convertible preferred stock). Cable networks are
increasingly viewed as vital pipelines that will allow the delivery of cable
telephony services, Internet access and expanded video offerings into consumers'
homes. Another company that is positioned to take advantage of these new
capabilities is Time Warner, which recently entered into an agreement with AT&T
to develop telephone services over its network. We were able to capitalize on
Time Warner's growth through our convertible bond position in Houston
Industries, which provided us upside movement with Time Warner's stock, in
addition to an attractive yield.
The Fund also benefited from several of its other convertible positions. These
helped boost the overall risk/return profile and gave us a way to leverage the
work Janus analysts have done in various areas of the economy. For example, we
recently uncovered some great opportunities in networking and
telecommunications, including Qwest Communications, a telecommunications company
that also builds fiber-optic networks for other communications providers, and
Exodus Communications, a company that provides secure storage facilities for
corporate networking platforms.
(continued on next page)
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 48.7% 61.6%
Fixed-Income Securities
Investment-Grade
Corporate Bonds 4.4% 0.7%
High-Yield/High-Risk
Corporate Bonds 21.8% 9.5%
Preferred Stock 24.3% 21.6%
Top 10
Equities/Preferred
(% of Assets) 31.8% 40.7%
Number of Stocks 58 42
Cash & Cash Equivalents 0.8% 6.6%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Cable Television 19.0% 15.1%
Internet Software 8.3% 1.0%
Electric - Integrated 6.0% 7.0%
Retail - Internet 5.0% --
Telecommunication
Services 4.6% --
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity/Preferred Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Houston Industries, Inc.,
convertible, 7.00% 6.0% 7.0%
MediaOne Group, Inc., convertible,
4.50% 4.7% 4.3%
Adelphia Communications
Corp. - Series D, convertible,
5.50% 3.9% --
Charles Schwab Corp. 2.9% 2.6%
Cisco Systems, Inc. 2.6% 2.2%
Bank of New York Co., Inc. 2.6% 4.3%
Univision Communications,
Inc. - Class A 2.4% 2.1%
Comcast Corp. - Special Class A 2.3% 4.8%
Merrill Lynch & Co., Inc.,
convertible, 6.00%, STRYPES (Cox
Communications, Inc.) 2.2% --
eBay, Inc. 2.2% --
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) An equity income fund is defined by Lipper, Inc. as "a fund which seeks
relatively high current income and growth of income through investing 60% or
more of its portfolio in equities." Lipper's ranking is based on total
return, including reinvestment of dividends and capital gains for the stated
period.
Past performance does not guarantee future results.
Janus Equity Funds / April 30, 1999 15
<PAGE>
In spite of its strong performance, the Fund did experience some
disappointments during the period. Robert Half International, a staffing agency,
suffered in reaction to investor perception that businesses will need fewer
temporary employees if the domestic economy slows in the coming months.
Nonetheless, we maintained our position in the company because of our belief
that the market overreacted to this fear and that Robert Half's strong business
fundamentals will eventually help it regain momentum.
Additionally, a number of our pharmaceutical holdings struggled against concerns
that the government could take a more active role in regulating drug prices. In
light of these pressures, we rotated out of more expensive pharmaceutical
stocks, such as Warner-Lambert, while raising our exposure to several
up-and-coming drug companies, like Pharmacia & Upjohn, that are developing
promising new products.
Our near-term outlook for the economy is that growth and moderate inflation will
persist here in the U.S. However, to ensure that we're invested in the best
companies no matter what the economy is doing, our analysts and I visit nearly
every company in the Fund. It's our belief that this hands-on, detailed approach
will continue to help us produce solid results for our investors now and in the
future.
I appreciate your confidence and your continued investment in Janus Equity
Income Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Equity Income Fund and the S&P 500 Index. Janus Equity Income Fund is
represented by a shaded area of green. The S&P 500 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, June 28, 1996, through
April 30, 1999. The lower right quadrant reflects the ending value of the
hypothetical investment in Janus Equity Income Fund at $24,724 as compared to
the S&P 500 Index at $20,884.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 40.72%
Since 6/28/96*, 37.56%
JANUS EQUITY INCOME FUND - $24,724
S&P 500 Index - $20,884
* The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 48.7%
Brewery - 1.0%
127,830 Heineken N.V. ................................$ 6,423,817
Cable Television - 3.3%
37,545 Adelphia Communications Corp. - Class A*........2,562,446
223,509 Comcast Corp. - Special Class A................14,681,747
75,000 TCA Cable TV, Inc. .............................3,735,937
20,980,130
Circuits - 2.5%
145,370 Linear Technology Corp. ........................8,267,919
133,490 Maxim Integrated Products, Inc.*................7,475,440
15,743,359
Commercial Banks - 1.7%
66,440 Carolina First Corp. ...........................1,793,880
150,450 Firstar Corp. ..................................4,522,903
7,485 M & T Bank Corp. ...............................4,184,115
10,500,898
Commercial Services - 0.8%
98,140 Paychex, Inc. ..................................5,011,274
Computer Software - 1.4%
84,365 Microsoft Corp.*................................6,859,929
127,545 Wind River Systems, Inc.*.......................1,913,175
8,773,104
Computers - Micro - 0.4%
54,580 Dell Computer Corp.*..........................$ 2,248,014
Cruise Lines - 1.4%
152,955 Carnival Corp. .................................6,309,394
62,918 Royal Caribbean Cruises, Ltd. ..................2,324,034
8,633,428
Data Processing and Management - 0.3%
34,110 Fiserv, Inc.*...................................1,997,567
Diversified Operations - 0.7%
56,395 Tyco International, Ltd. .......................4,582,094
Electronic Components - Semiconductor - 0.5%
32,895 Texas Instruments, Inc. ........................3,359,402
Finance - Credit Card - 0.8%
40,460 American Express Co. ...........................5,287,616
Finance - Investment Bankers/Brokers - 2.9%
166,102 Charles Schwab Corp. ..........................18,229,695
Finance - Mortgage Loan Banker - 0.4%
39,230 Fannie Mae......................................2,782,878
Human Resources - 0.3%
86,722 Robert Half International, Inc.*................2,070,488
Instruments - Scientific - 1.2%
187,315 Dionex Corp.*...................................7,679,915
</TABLE>
See Notes to Schedules of Investments.
16 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Equity Income Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Investment Management and Advisory Services - 0.4%
83,625 Affiliated Managers Group, Inc.*..............$ 2,430,352
Life and Health Insurance - 2.1%
204,057 Reinsurance Group of America, Inc. .............8,723,437
193,805 StanCorp Financial Group, Inc.*.................4,663,433
13,386,870
Medical - Drugs - 2.2%
42,515 Pfizer, Inc. ...................................4,891,882
105,365 Pharmacia & Upjohn, Inc. .......................5,900,440
62,000 Schering-Plough Corp. ..........................2,995,375
13,787,697
Medical Information Systems - 0.4%
89,510 IMS Health, Inc. ...............................2,685,300
Money Center Banks - 2.6%
402,260 Bank of New York Co., Inc. ....................16,090,400
Multimedia - 2.0%
66,825 Meredith Corp. .................................2,451,642
251,520 Viacom, Inc. - Class B*........................10,280,880
12,732,522
Networking Products - 2.6%
141,577 Cisco Systems, Inc.*...........................16,148,627
Optical Supplies - 1.3%
37,525 Allergan, Inc. .................................3,372,559
62,970 Bausch & Lomb, Inc. ............................4,722,750
8,095,309
Pipelines - 1.7%
140,960 Enron Corp. ...................................10,607,240
Property and Casualty Insurance - 3.0%
135,435 Mutual Risk Management, Ltd. ...................5,265,036
93,325 Progressive Corp. .............................13,392,137
18,657,173
Radio - 2.6%
158,205 Heftel Broadcasting Corp. - Class A*............8,602,397
288,040 Infinity Broadcasting Corp. - Class A*..........7,975,108
16,577,505
Retail - Discount - 1.1%
85,895 Costco Companies, Inc.*.........................6,952,127
Retail - Internet - 2.8%
21,165 Amazon.com, Inc.*...............................3,641,703
66,465 eBay, Inc.*....................................13,833,028
17,474,731
Super-Regional Bank - 1.0%
65,145 Northern Trust Corp. ...........................6,066,628
Telecommunication Equipment - 0.9%
10,722 Nokia Oyj - Class A...............................829,201
61,716 Nokia Oyj (ADR) - Class A.......................4,578,556
5,407,757
Television - 2.4%
263,158 Univision Communications, Inc. - Class A*....$ 15,230,269
- -----------------------------------------------------------------------
Total Common Stock (cost $221,900,140)......................306,634,186
- -----------------------------------------------------------------------
Corporate Bonds - 25.6%
Advertising Agencies - 0.7%
$ 2,000,000 Omnicom Group, 4.25%
convertible subordinated debentures, due
1/3/07.........................................4,650,000
Applications Software - 0.8%
13,145,000 Citrix Systems, Inc., zero coupon
convertible subordinated debentures,
due 3/22/19(+).................................4,962,237
Automotive - Truck Parts and Equipment - 1.2%
7,400,000 Federal-Mogul Corp., 7.50%
notes, due 1/15/09(+)..........................7,233,500
Cable Television - 4.0%
Adelphia Communications Corp.:
1,150,000 8.375%, senior notes, due 2/1/08................1,181,625
7,400,000 7.75%, senior notes, due 1/15/09(+).............7,381,500
5,000,000 7.875%, senior notes, due 5/1/09................5,012,500
9,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09(+)............9,225,000
2,111,000 Classic Cable, Inc., 9.875%
senior subordinated notes, due 8/1/08..........2,248,215
25,048,840
Casino Hotels - 0.3%
Station Casinos, Inc.:
150,000 10.125%, senior subordinated notes,
due 3/15/06......................................164,010
1,846,000 8.875%, senior subordinated notes,
due 12/1/08....................................1,910,610
2,074,620
Computer Services - 0.1%
591,000 Globix Corp., 13.00%
senior notes, due 5/1/05.........................601,343
Computer Software - 1.2%
4,647,000 Aspen Technology, Inc., 5.25%
convertible subordinated debentures,
due 6/15/05....................................2,654,599
5,815,000 Wind River Systems, Inc., 5.00%
convertible subordinated notes, due 8/1/02.....4,848,256
7,502,855
Computers - Memory Devices - 0.2%
750,000 VERITAS Software Corp., 5.25%
convertible subordinated notes, due 11/1/04....1,318,125
Diversified Operations - 1.4%
Tyco International Group S.A.:
7,187,000 6.125%, notes, due 11/1/08......................7,007,325
1,583,000 6.125%, notes, due 1/15/09......................1,541,446
8,548,771
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 17
<PAGE>
Janus Equity Income Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Fiber Optics - 0.3%
$2,000,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 11/15/08(+)................$ 2,165,000
Finance - Other Services - 1.2%
7,195,000 Newcourt Credit Group, Inc., 6.875%
notes, due 2/16/05(+)..........................7,347,894
Food - Retail - 0%
78,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07..............82,290
Hotel and Motels - 0%
236,000 HMH Properties, Inc., 7.875%
company guaranteed notes, due 8/1/08.............228,330
Human Resources - 0.4%
2,925,000 Interim Services, Inc., 4.50%
convertible subordinated notes, due 6/1/05.....2,318,062
Internet Software - 6.2%
1,315,000 America Online, Inc., 4.00%
convertible subordinated notes, due 11/15/02..14,070,500
Exodus Communications, Inc.:
6,510,000 5.00%, convertible subordinated notes,
due 3/15/06(+)................................13,337,362
5,527,000 11.25%, senior notes, due 7/1/08................6,065,882
5,306,000 MindSpring Enterprises, Inc., 5.00%
notes, due 4/15/06.............................5,644,257
39,118,001
Leisure, Recreation and Gaming - 0%
235,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05............225,012
Retail - Building Products - 1.2%
2,860,000 Home Depot, Inc., 3.25%
convertible subordinated notes, due 10/1/01....7,217,925
Retail - Catalog Shopping - 0%
47,000 R.H. Donnelly, Inc., 9.125%
senior subordinated notes, due 6/1/08.............49,879
Retail - Internet - 2.2%
6,577,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures,
due 2/1/09(+)..................................8,311,684
3,425,000 Beyond.com Corp., 7.25%
convertible subordinated notes, due
12/1/03(+).....................................5,561,344
13,873,028
Retail - Music Store - 0.1%
305,000 MTS, Inc., 9.375%
senior subordinated notes, due 5/1/05............302,331
Retail - Restaurants - 0.1%
448,000 Tricon Global Restaurants, Inc., 7.45%
senior notes, due 5/15/05........................456,400
Telecommunication Services - 2.8%
2,184,000 Bresnan Communications Holding Co., 8.00%
senior notes, due 2/1/09(+)....................2,244,060
7,400,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08.......................7,548,000
Telecommunication Services - (continued)
$2,000,000 McLeodUSA, Inc., 9.25%
senior notes, due 7/15/07....................$ 2,105,000
4,165,000 NTL, Inc., 7.00%
convertible subordinated notes, due
12/15/08(+)....................................5,950,744
17,847,804
Telephone - Integrated - 0.8%
Intermedia Communications, Inc. - Series B:
2,269,000 8.50%, senior notes, due 1/15/08................2,257,655
837,000 8.60%, senior notes, due 6/1/08...................837,000
2,000,000 NEXTLINK Communications, Inc., 10.75%
senior notes, due 11/15/08.....................2,150,000
5,244,655
Telephone - Long Distance - 0.4%
2,000,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07..............2,307,500
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $139,377,356)...................160,724,402
- -----------------------------------------------------------------------
Foreign Bond - 0.6%
GBP 3,651,000 COLT Telecom Group PLC, 2.00%
convertible bonds, due 3/29/06
(cost $3,981,846)(+)...........................3,843,277
- -----------------------------------------------------------------------
Preferred Stock - 24.3%
Automotive - Truck Parts and Equipment - 1.4%
163,895 Federal-Mogul Financing Trust Corp.,
convertible, 7.00%.............................8,973,251
Cable Television - 11.7%
120,000 Adelphia Communications Corp.
- Series D, convertible, 5.50%................24,540,000
182,519 MediaOne Group, Inc., convertible, 4.50%.......29,385,559
67,775 MediaOne Group, Inc., convertible, 6.25%........5,430,472
223,643 Merrill Lynch & Co., Inc., convertible, 6.00%
STRYPES (Cox Communications, Inc.)............14,033,598
73,389,629
Cruise Lines - 1.9%
103,645 Royal Caribbean Cruises, Ltd., convertible,
7.25%.........................................11,919,175
Electric - Integrated - 6.0%
319,050 Houston Industries, Inc., convertible, 7.00%...37,647,900
Internet Software - 2.1%
254,160 PSINet, Inc. - Series C, convertible, 6.75%....12,962,160
Telecommunication Services - 1.2%
102,765 Qwest Trends Trust, convertible, 5.75%(+).......7,630,301
- -----------------------------------------------------------------------
Total Preferred Stock (cost $127,884,098)...................152,522,416
- -----------------------------------------------------------------------
Warrants - 0%
591 Bell Technology Group, Ltd.
- expires 5/1/05* (cost $0).......................93,083
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
18 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Short-Term Corporate Note - 1.6%
Household Finance Corp.
$10,300,000 4.88%, 5/3/99 (amortized cost
$10,297,208)................................$ 10,297,208
- -----------------------------------------------------------------------
Total Investments - (total cost $503,440,648) - 100.8%......634,114,572
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.8%)............................................(4,846,019)
- -----------------------------------------------------------------------
Net Assets - 100%..........................................$629,268,553
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
Bermuda 2.9% $ 18,395,901
Canada 1.1% 7,347,894
Finland 0.9% 5,407,757
Netherlands 1.0% 6,423,817
United Kingdom 0.6% 3,843,277
United States(++) 93.5% 592,695,926
- ---------------------------------------------------------------------
Total 100.0% $634,114,572
</TABLE>
(++)Includes Short-Term Securities (91.8% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 19
<PAGE>
Janus Global Life Sciences Fund
[Tom Malley Photo]
Thomas Malley
portfolio manager
Janus Global Life Sciences Fund opened on December 31, 1998. Before going into
detail about its performance, I'd like to thank you for your investment in this
new fund.
During the four months since its inception, Janus Global Life Sciences Fund
returned 2.90%, while its benchmark, the S&P 500 Index, gained 9.05%.(1)
Relative to its peer group, however, the Fund performed well, surpassing the
(5.49%) average total return of health and biotechnology funds tracked by
Lipper, Inc., a leading mutual fund rating company.(2) I'd like to add that this
initial period does not begin to demonstrate the longer-term opportunities this
area of the global economy represents.
Our ability to capitalize on these opportunities is at the core of the Fund's
flexible mandate, which allows us to invest in a variety of companies across the
life sciences universe, including biotechnology, pharmaceuticals and healthcare.
Within this universe, we follow a bottom-up investment approach, identifying
individual companies that, above all, offer strong volume sales growth.
Additionally, we look for stable and visible earnings, dominant business
franchises, solid management teams, and high profit margins and returns on
invested capital. Most of our current holdings are located in the United States,
however, we've invested selectively in several foreign companies offering the
same combination of high-volume growth and solid fundamentals.
That said, the Fund opened during what has been a challenging few months for
life sciences stocks, which have struggled against uncertainty over recent
developments in Washington. In particular, there is a new Medicare benefit now
on the table that would help seniors pay for prescription drugs. While a
Medicare benefit would expand the overall consumption of pharmaceuticals, it
could also carry with it the threat of governmental price controls. We believe
this is unlikely, at least in the near term. However, even the prospect of such
controls has cast a shadow over a number of our pharmaceutical stocks.
One such position was Warner-Lambert, which also suffered from some safety
concerns over its diabetes drug, Rezulin, an important profit driver for the
company. These concerns recently led the Food and Drug Administration to require
additional labeling on the product. While we continue to monitor the situation
with Rezulin, we believe the company's fast-growing cholesterol-reducing drug,
Lipitor, should support healthy earnings going forward. Consequently, we
maintained a position in the company.
We were able to offset some of the weakness in our pharmaceutical stocks with
strong performance from our holdings in the fast-growing eye care business.
Among our best performers were those capitalizing on the success of laser
refractive eye surgery to correct vision impairments. This procedure offers
patients clear eyesight within one week, and with its tremendous word-of-mouth
appeal, demand is rising even faster than expected. Among the many reasons
doctors are attracted to this surgical technique is that it allows them to treat
more patients in less time, quickly recovering the cost of the required
equipment. One of our larger positions in this area of the market was Laser
Vision Centers, which runs outpatient centers devoted to laser refractive eye
surgery. The stock gained substantially from the success of this new technology.
We also benefited from our position in Allergan, a well-managed diversified life
sciences company with an impressive eye care unit. This company is scoring
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999
- -------------------------------------------------------
<S> <C>
Equities 95.6%
Foreign 12.2%
Top 10 Equities (% of Assets) 58.0%
Number of Stocks 28
Cash & Cash Equivalents 4.4%
- -------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999
- -------------------------------------------------------
Medical - Drugs 31.2%
Optical Supplies 14.8%
Therapeutics 11.7%
Medical Laser Systems 10.8%
Medical Instruments 10.4%
- -------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999
- -------------------------------------------------------------------
<S> <C>
QLT PhotoTherapeutics, Inc. 11.0%
Allergan, Inc. 7.9%
Bausch & Lomb, Inc. 6.9%
Laser Vision Centers, Inc. 6.1%
Tyco International, Ltd. 5.5%
Boston Scientific Corp. 4.9%
Schering-Plough Corp. 4.4%
Pfizer, Inc. 3.8%
Laser Center, Inc. (The) 3.8%
Guidant Corp. 3.7%
- -------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a health and biotechnology fund as, "a fund that
invests 65% of its equity portfolio in shares of companies engaged in health
care, medicine, and biotechnology."
Past performance does not guarantee future results.
20 Janus Equity Funds / April 30, 1999
<PAGE>
tremendous volume sales growth with Alphagan, its glaucoma treatment, and Botox,
its treatment for facial muscle spasms.
Another area we've emphasized is the medical device industry. Because only two
or three companies typically dominate each market segment, they are less
susceptible to price competition than the pharmaceutical area. Consequently, I
believe the medical device business offers better near-term growth potential
than the drug industry. Top-performing positions in this area included Guidant,
a worldwide manufacturer of pacemakers and devices used in cardiac and vascular
surgery, and Medtronic, a top-quality player across a number of different device
segments. We are excited about upcoming product launches by these companies,
including treatments for congestive heart failure, atrial fibrillation and
abdominal aortic aneurysms.
Looking forward, I'm convinced the healthcare industry will continue to
experience rapid growth, supported by demographic changes, product innovation,
and the expansion of existing drugs into new markets and applications.
As we look for opportunities in the life sciences area, we'll continue to follow
our flexible approach, seeking out companies that maintain high-volume sales
growth, generous profit margins and substantial returns on capital. By focusing
on these best-of-breed companies, I believe we can produce strong results over
time for our investors.
Thank you again for your investment in Janus Global Life Sciences Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Global Life Sciences Fund and the S&P 500 Index. Janus Global Life
Sciences Fund is represented by a shaded area of green. The S&P 500 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 31, 1998, through April 30, 1999. The lower right quadrant reflects
the ending value of the hypothetical investment in Janus Global Life Sciences
Fund at $10,290 as compared to the S&P 500 Index at $10,905.
Cumulative Total Return
for the period ended April 30, 1999
Since 12/31/98*, 2.90%
JANUS GLOBAL LIFE SCIENCES FUND - $10,290
S&P 500 Index - $10,905
*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
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>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 95.6%
Diversified Operations - 5.5%
132,025 Tyco International, Ltd. .....................$10,727,031
Medical - Biomedical and Genetic - 7.7%
96,335 Amgen, Inc.*....................................5,918,582
55,630 Biogen, Inc.*...................................5,288,327
293,010 Enzon, Inc.*....................................3,809,130
15,016,039
Medical - Drugs - 31.2%
117,910 American Home Products Corp. ...................7,192,510
52,065 Eli Lilly and Co. ..............................3,833,286
120,440 Forest Laboratories, Inc.*......................5,359,580
80,000 MedImmune, Inc.*................................4,410,000
64,730 Pfizer, Inc. ...................................7,447,996
88,115 Pharmacia & Upjohn, Inc. .......................4,934,440
433 Roche Holding A.G.**............................5,102,309
176,595 Schering-Plough Corp. ..........................8,531,746
30,000 Sepracor, Inc.*.................................2,535,000
86,380 SmithKline Beecham PLC (ADR)....................5,674,086
53,000 Takeda Chemical Industries**....................2,304,515
55,015 Warner-Lambert Co. .............................3,737,581
61,063,049
Medical - Generic Drugs - 1.2%
57,685 Watson Pharmaceuticals, Inc.*.................$ 2,336,242
Medical Instruments - 10.4%
224,155 Boston Scientific Corp.*........................9,540,597
134,865 Guidant Corp. ..................................7,240,565
48,515 Medtronic, Inc. ................................3,490,048
20,271,210
Medical Laser Systems - 10.8%
202,325 Laser Center, Inc. (The)*.......................7,429,121
283,665 Laser Vision Centers, Inc.*....................11,949,388
99,365 Summit Technology, Inc.*........................1,732,677
21,111,186
Medical Products - 2.3%
72,730 MiniMed, Inc.*..................................4,545,625
Optical Supplies - 14.8%
172,100 Allergan, Inc. ................................15,467,488
180,510 Bausch & Lomb, Inc. ...........................13,538,250
29,005,738
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 21
<PAGE>
Janus Global Life Sciences Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Therapeutics - 11.7%
100,000 Abgenix, Inc.*..............................$ 1,462,500
470,620 QLT PhotoTherapeutics, Inc.*...................21,501,451
22,963,951
- -----------------------------------------------------------------------
Total Common Stock (cost $180,973,969)......................187,040,071
- -----------------------------------------------------------------------
Short-Term Corporate Note - 0.9%
Associates Corp. N.A.
$1,700,000 4.92%, 5/3/99 (amortized cost $1,699,535).......1,699,535
- -----------------------------------------------------------------------
Total Investments (total cost $182,673,504) - 96.5%.........188,739,606
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities -3.5%..6,841,919
- -----------------------------------------------------------------------
Net Assets - 100%..........................................$195,581,525
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
Bermuda 5.7% $ 10,727,031
Japan 1.2% 2,304,515
Switzerland 2.7% 5,102,309
United Kingdom 3.0% 5,674,086
United States(++) 87.4% 164,931,665
- ---------------------------------------------------------------------
Total 100.0% $188,739,606
</TABLE>
(++)Includes Short-Term Securities (86.5% excluding Short-Term Securities)
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>
Japanese Yen 9/16/99 110,000,000 $ 921,834 $28,900
Swiss Franc 10/8/99 2,000,000 1,336,541 33,792
- ---------------------------------------------------------------------
Total $2,258,375 $62,692
</TABLE>
See Notes to Schedules of Investments.
22 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Global Technology Fund
[Mike Lu Photo]
Mike Lu
portfolio manager
I would like to express my deepest appreciation to the many investors who helped
launch Janus Global Technology Fund. Since its inception on December 31, 1998, I
am pleased to report that the Fund gained a robust 37.70%. In comparison, our
benchmark, the S&P 500 Index, returned 9.05% for the period ended April 30,
1999.(1) Meanwhile, the average total return for science and technology funds
tracked by Lipper, Inc., a leading mutual fund rating company, was 21.57%.(2)
I believe our strong performance reflects the rigorous research and analytical
standards that are hallmarks of the Janus investment style. Additionally, I
remain committed to the Fund's flexible charter that allows us to invest in the
obvious areas such as computer hardware, software and semiconductors, as well as
technology-driven businesses outside the traditional tech realm. We've
identified many of these opportunities in the areas of networking, Web
enablement and telecommunications - three of the fastest-growing segments in the
global economy.
We believe the Internet, along with corporate intranets and extranets, will
fundamentally change the way people conduct business. While we find these
opportunities exciting, we remain selective in our approach to Internet stocks.
In practice, this means seeking out companies we see as either underappreciated
by the market or that offer added value beyond their status as an Internet
company. For example, our enthusiasm for Web portal company Excite, a business
in which we see tremendous growth potential, stems in part from its MatchLogic
software division. MatchLogic tracks and reports the browsing and buying
behavior of Web users - information the company then sells to advertisers, who
use it to better target and personalize their marketing messages.
We have also invested in a number of companies that have a stake in making the
Internet more accessible and user-friendly. These "Web enablers" include
software, hardware and service providers. VERITAS Software, for instance, is a
storage management software company benefiting from both the dramatic increase
in the amount of data currently being generated, as well as the subsequent need
to store this data. This company provides storage management solutions across
principal platforms, including UNIX and Windows NT, and is the storage volume
manager of choice for many server hardware manufacturers.
Our Web enablement positions in the hardware business include Cisco Systems and
Sun Microsystems, both of which contributed significantly to the Fund's gains.
As the market leader in net-working technology, Cisco provides the "plumbing"
for the Internet. Sun Microsystems is also a leader in its market, building
robust servers that host networks and Web sites. Another strong performer was
Exodus Communications, one of our holdings in the Web service provider arena.
Exodus is a newer company that evolved to service the outsourcing needs of Web
portals and corporate intranets with round-the-clock Web hosting and broadband
connectivity solutions.
In the area of wireless communications, a number of our investments have been
overseas, predominantly in Europe. A standout in this group was wireless
equipment manufacturer Nokia. Nokia's ability to design and efficiently produce
innovative wireless handsets and infrastructure equipment remains peerless.
Despite our strong overall performance, a few of our software and service
stocks, including
(continued on next page)
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999
- -------------------------------------------------------
<S> <C>
Equities 81.9%
Foreign 12.5%
European 9.5%
Top 10 Equities (% of Assets) 29.9%
Number of Stocks 70
Cash, Cash Equivalents &
Fixed-Income Securities 18.1%
- -------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999
- -------------------------------------------------------
Internet Software 8.7%
Networking Products 8.7%
Electronic Components - Semiconductors 6.1%
Telecommunication Equipment 5.8%
Computers - Micro 4.6%
- -------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999
- -------------------------------------------------------------------
<S> <C>
Nokia Oyj (ADR) - Class A 4.2%
Sun Microsystems, Inc. 3.8%
VERITAS Software Corp. 3.3%
Cisco Systems, Inc. 3.1%
FORE Systems, Inc. 3.0%
Uniphase Corp. 2.8%
Exodus Communications, Inc. 2.6%
Texas Instruments, Inc. 2.5%
Verio, Inc. 2.4%
Sapient Corp. 2.2%
- -------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a science and technology fund as, "a fund that invests
65% of its equity portfolio in science and technology stocks."
Past performance does not guarantee future results.
Janus Equity Funds / April 30, 1999 23
<PAGE>
Sapient, underperformed on market concerns that preparations for Y2K may divert
corporate spending from application rollouts and system upgrades. Because we
believe these concerns are overblown and have confidence in Sapient's robust
business pipeline, we opportunistically added to our position. We were less
optimistic regarding the underperformance of Saville Systems, which provides
billing software for the telecommunications industry. Because of development
difficulties, a key product was significantly delayed. Since this reflects a
fundamental change in the company's outlook, we chose to sell our position.
Looking ahead, we remain very excited about the growth potential in the
technology area. The outlook for this rapidly evolving industry is based on
innovations that are under way right now or may take place in the near future.
For this reason, we continue to do everything possible to stay on top of new
developments. We read technical journals, attend trade shows, examine academic
research and, of course, place a huge emphasis on hands-on research. In
particular, I spend more than half my time on the road, talking face-to-face
with our companies' managements, competitors and suppliers, as well as the
end-users of their technology. Most important, we insist on investing in
companies that are stretching and breaking existing technological boundaries. By
design rather than coincidence, these same companies should also help drive the
performance of Janus Global Technology Fund.
In closing, I'd like to again thank you for your investment in Janus Global
Technology Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Global Technology Fund and the S&P 500 Index. Janus Global Technology
Fund is represented by a shaded area of green. The S&P 500 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 31, 1998,
through April 30, 1999. The lower right quadrant reflects the ending value of
the hypothetical investment in Janus Global Life Sciences Fund at $13,770 as
compared to the S&P 500 Index at $10,905.
Cumulative Total Return
for the period ended April 30, 1999
Since 12/31/98*, 37.70%
JANUS GLOBAL TECHNOLOGY FUND - $13,770
S&P 500 Index - $10,905
* The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 81.9%
Applications Software - 1.4%
63,750 Citrix Systems, Inc.*.........................$ 2,709,375
201,560 i2 Technologies, Inc.*..........................6,827,845
76,120 Webtrends Corp.*................................4,043,875
13,581,095
Cable Television - 0.5%
213,494 Le Groupe Videotron ltee. ......................4,368,668
Cellular Telecommunications - 4.1%
121,505 AirTouch Communications, Inc.*.................11,345,529
2,116,000 China Telecom, Ltd.*............................4,832,545
200,645 Orange PLC*.....................................2,733,075
192,300 Orange PLC (ADR)*..............................13,100,437
150,000 Sprint Corp./PCS Group*.........................6,356,250
38,367,836
Circuits - 2.4%
105,650 Maxim Integrated Products, Inc.*................5,916,400
356,485 Vitesse Semiconductor Corp.*...................16,509,711
22,426,111
Commercial Services - 1.4%
452,615 Whittman-Hart, Inc.*...........................12,786,374
Communications Software - 0.6%
125,900 Razorfish, Inc.*..............................$ 5,476,650
Computer Data Security - 1.9%
120,770 Check Point Software Technologies, Ltd.*........4,257,143
119,125 VeriSign, Inc.*................................13,699,375
17,956,518
Computer Services - 3.1%
24,580 CheckFree Holdings Corp.*.......................1,179,840
77,025 Electronic Data Systems Corp....................4,140,094
338,920 Sapient Corp.*.................................21,267,230
360,945 Technology Solutions Co.*.......................2,865,001
29,452,165
Computer Software - 1.4%
164,640 Microsoft Corp.*...............................13,387,290
Computers - Integrated Systems - 1.2%
40,000 Equant N.V. - New York Shares*..................3,570,000
131,705 Extreme Networks, Inc.*.........................7,301,396
10,871,396
Computers - Memory Devices - 3.8%
41,265 EMC Corp.*......................................4,495,306
437,845 VERITAS Software Corp.*........................31,086,995
35,582,301
</TABLE>
See Notes to Schedules of Investments.
24 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Global Technology Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Computers - Micro - 4.6%
35,230 IBM Corp. ....................................$ 7,369,676
600,535 Sun Microsystems, Inc.*........................35,919,500
43,289,176
Electronic Components - Semiconductors - 6.1%
400,445 Conexant Systems, Inc.*........................16,318,134
142,925 QLogic Corp.*...................................9,995,817
316,545 Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR)*.........................................7,597,080
235,720 Texas Instruments, Inc. .......................24,072,905
57,983,936
Electronic Measuring Instruments - 1.8%
353,430 Teradyne, Inc.*................................16,677,478
Fiber Optics - 2.8%
118,850 JDS Fitel, Inc.*................................7,181,727
232,685 Metromedia Fiber Network, Inc. - Class A*......19,603,711
26,785,438
Finance - Investment Bankers/Brokers - 0.2%
20,000 Charles Schwab Corp. ...........................2,195,000
Health Care Cost Containment - 0.8%
169,000 Healtheon Corp.*................................7,647,250
Internet Content - 3.4%
80,310 DoubleClick, Inc.*.............................11,228,342
278,570 NetGravity, Inc.*..............................11,264,674
84,645 VerticalNet, Inc.*..............................9,607,208
32,100,224
Internet Software - 8.2%
22,630 America Online, Inc.*...........................3,230,433
53,145 Covad Communications Group, Inc.*...............5,101,920
100,385 Excite, Inc.*..................................14,656,210
270,160 Exodus Communications, Inc.*...................24,348,170
148,475 PSINet, Inc.*...................................7,497,988
319,200 Verio, Inc.*...................................22,663,200
77,497,921
Lasers - Systems and Components - 2.8%
220,030 Uniphase Corp.*................................26,706,141
Machinery - General Industrial - 1.1%
187,500 Applied Materials, Inc.*.......................10,054,688
Network Software - 3.6%
338,210 Concord Communications, Inc.*..................15,134,898
20,470 Marimba, Inc.*..................................1,243,553
816,315 Novell, Inc.*..................................18,163,009
34,541,460
Networking Products - 8.7%
261,370 Cisco Systems, Inc.*...........................29,812,516
840,325 FORE Systems, Inc.*............................28,360,969
350,053 International Network Services*................13,301,995
217,705 Network Appliance, Inc.*.......................10,953,283
82,428,763
Retail - Internet - 3.3%
48,020 Amazon.com, Inc.*.............................$ 8,262,441
83,875 eBay, Inc.*....................................17,456,484
116,715 USinternetworking, Inc.*........................5,967,054
31,685,979
Rubber - Tires - 0.3%
1,045,880 Pirelli S.p.A. .................................3,198,871
Telecommunication Equipment - 5.8%
126,555 Lucent Technologies, Inc. ......................7,609,119
535,380 Nokia Oyj (ADR) - Class A......................39,718,504
199,515 Terayon Communication Systems, Inc.*............8,055,418
55,383,041
Telecommunication Services - 4.0%
135,000 COLT Telecom Group PLC*(,+).....................2,523,590
107,500 COLT Telecom Group PLC (ADR)*...................8,210,313
162,564 Energis PLC*....................................4,439,916
73,740 Level 3 Communications, Inc.*...................6,641,208
90,000 NTL, Inc.*......................................6,862,500
100,150 Qwest Communications International, Inc.*.......8,556,565
25,000 Telefonaktiebolaget L.M. Ericsson
(ADR) - Class B..................................675,000
37,909,092
Telephone - Integrated - 2.1%
110,500 NEXTLINK Communications, Inc.*..................8,094,125
613,718 Sonera Group Oyj...............................12,141,637
20,235,762
Transportation - Air Freight - 0.5%
46,165 FDX Corp.*......................................5,196,448
- -----------------------------------------------------------------------
Total Common Stock (cost $641,813,417)......................775,773,072
- -----------------------------------------------------------------------
Corporate Bonds - 1.3%
Applications Software - 0.1%
$ 3,000,000 Citrix Systems, Inc., zero coupon
convertible subordinated debentures,
due 3/22/19(+).................................1,132,500
Internet Content - 0.7%
4,000,000 DoubleClick, Inc., 4.75%
subordinated notes, due 3/15/06(+).............7,095,000
Internet Software - 0.5%
4,000,000 MindSpring Enterprises, Inc., 5.00%
convertible subordinated notes, due 4/15/06....4,255,000
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $10,734,927).....................12,482,500
- -----------------------------------------------------------------------
Short-Term Corporate Notes - 6.6%
Associates Corp. N.A.
45,000,000 4.92%, 5/3/99..................................44,987,700
Household Finance Corp.
17,600,000 4.88%, 5/3/99..................................17,595,228
- -----------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost
$62,582,928)................................................62,582,928
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 25
<PAGE>
Janus Global Technology Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies - 10.5%
Fannie Mae:
$50,000,000 4.73%, 6/18/99...............................$ 49,684,667
50,000,000 4.68%, 7/13/99.................................49,540,000
- -----------------------------------------------------------------------
Total U.S. Government Agencies (cost $99,210,167)............99,224,667
- -----------------------------------------------------------------------
Total Investments (total cost $814,341,439) - 100.3%........950,063,167
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.3%)............................................(3,212,250)
- -----------------------------------------------------------------------
Net Assets - 100%..........................................$946,850,917
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
Canada 1.2% $ 11,550,395
Finland 5.5% 51,860,141
Hong Kong 0.5% 4,832,545
Israel 0.4% 4,257,143
Italy 0.3% 3,198,871
Netherlands 0.4% 3,570,000
Sweden 0.1% 675,000
Taiwan 0.8% 7,597,080
United Kingdom 3.3% 31,007,331
United States(++) 87.5% 831,514,661
- ---------------------------------------------------------------------
Total 100.0% $950,063,167
</TABLE>
(++)Includes Short-Term Securities (70.5% excluding Short-Term Securities)
See Notes to Schedules of Investments.
26 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Growth and Income Fund
[David J. Corkins Photo]
David Corkins
portfolio manager
I am pleased to report that for the six months ended April 30, 1999, your
investment in Janus Growth and Income Fund returned 34.21%, compared with the
S&P 500 Index's gain of 22.31%.(1) As a result, the Fund earned a top-quartile
ranking for the 12-month period ended April 30, 1999, placing 11th out of 815
growth and income funds tracked by Lipper, Inc., a leading mutual fund rating
company.(2)
Our approach to managing the Fund is to emphasize the "growth" part of the
equation, although in a prudent way. This means, under most market conditions,
investing the majority of the Fund's assets in the common stock of companies we
feel are poised for rapid earnings growth. At the same time, we won't build a
position in a stock unless we've personally visited with the company's senior
management and the people running the day-to-day operations. We also avoid
making large bets on individual sectors, which explains the Fund's eclectic mix
of stocks. And finally, we balance our growth-oriented holdings with income-
producing investments, including dividend-paying stocks, convertible securities
and high-yield bonds.
It's a strategy that reaped substantial rewards during the period. Contributing
to these rewards was Comcast, a leading nationwide cable company. Many key cable
players, including Comcast, are nearing completion of infrastructure upgrades to
broadband technology, which will allow users to combine telephony, digital video
and high-speed Internet access over one platform. You might ask, "Are all these
additional services just pie-in-the-sky dreams?" This brings to mind the words
of noted football philosopher Bear Bryant, who once told a young player, "Son,
'potential' is a French word that means...you ain't worth a damn yet." Well, I
can tell you that early test market results for many of these services show
surprisingly high penetration rates of more than 30%. What's more, we have done
extensive research into these broadband cable opportunities and are enthusiastic
in our outlook for this business.
Several of our financial services stocks also gained during the period,
including American Express and American International Group (AIG). Both are new
positions in the Fund and continue to appreciate because of their success in
seeking out global opportunities. American Express is a great franchise that's
changed its strategy somewhat by focusing more on revenue growth, while AIG is
enjoying strong growth in Japan and other Asian countries because of
deregulation in the insurance industry.
Another noteworthy performer in the financial arena was Firstar Corp., a leading
regional bank serving the Midwest. Firstar management has a proven track record
in cost cutting, capital redeployment and revenue enhancement. With Firstar's
recently announced acquisition of Missouri-based Mercantile Bancorp, we're
confident that the union will create new opportunities and that management will
continue to execute its focused strategy.
(continued on next page)
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 81.1% 74.7%
Foreign 7.2% 5.6%
European 4.5% 4.2%
Fixed-Income Securities
Investment-Grade
Corporate Bonds 0.1% --
High-Yield/High-Risk
Corporate Bonds 3.7% 2.6%
Preferred Stock 6.6% 6.6%
Top 10
Equities/Preferred (%
of Assets) 30.4% 28.7%
Number of Stocks 79 72
Cash & Cash Equivalents 8.5% 16.1%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Cable Television 11.8% 12.5%
Medical - Drugs 6.3% 14.2%
Multimedia 5.7% 4.5%
Diversified Operations 4.8% 4.7%
Internet Software 4.6% 1.6%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity/Preferred Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
America Online, Inc. 4.2% 1.6%
Time Warner, Inc. 3.6% 3.8%
Cisco Systems, Inc. 3.5% 1.9%
Microsoft Corp. 3.5% 3.0%
Comcast Corp. - Special Class A 3.0% 3.7%
General Electric Co. 2.7% 2.7%
MCI WorldCom, Inc. 2.7% 2.4%
AT&T Corp./Liberty Media
Group - Class A 2.5% 0.8%
Enron Corp. 2.4% --
Nokia Oyj (ADR) - Class A 2.3% 0.5%
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a growth and income fund as one that "combines a growth
of earnings orientation and an income requirement for level and/or rising
dividend." As of April 30, 1999, Janus Growth and Income Fund ranked 2/319
for the 5-year period. The ranking is based on total return, including
reinvestment of dividends and capital gains for the stated period.
Past performance does not guarantee future results.
Janus Equity Funds / April 30, 1999 27
<PAGE>
Our technology weighting also remained a significant contributor to the Fund's
solid results, with notable gains by Cisco Systems, America Online and
Microsoft. Meanwhile, Dell Computer slowed early in 1999 after several years of
outstanding share-price growth. Although Dell is still a great company, its
once-formidable competitive edge may be fading. We consequently cut our position
in Dell, taking gains on the sale of these shares.
Among our disappointments were select pharmaceutical stocks, bruised by talk in
Washington about regulating Medicare drug costs. Any legislation in that area
would likely be a negative for drug company earnings. We either sold or reduced
our positions in drug companies with weakening fundamentals that may not be able
to hold up under these pressures, including Bristol Myers-Squibb and
Warner-Lambert. Nevertheless, we think many observers have overestimated this
factor's potential impact on the industry. Therefore, we continue to hold
substantial positions in a number of other stronger-performing drug companies,
including Pfizer and Pharmacia & Upjohn.
Going forward, while I view the economy with cautious optimism, I'd rather not
make economic forecasts. Our focus is on finding well-managed, high-quality
companies that can excel in a variety of economic environments.
Thank you once again for investing in Janus Growth and Income Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Growth and Income Fund and the S&P 500 Index. Janus Growth and Income
Fund is represented by a shaded area of green. The S&P 500 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 15, 1991, through
April 30, 1999. The lower right quadrant reflects the ending value of the
hypothetical investment in Janus Growth and Income Fund at $52,073 as compared
to the S&P 500 Index at $43,795.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 30.92%
Five Year, 28.22%
Since 5/15/91*, 23.03%
JANUS GROWTH & INCOME FUND - $52,073
S&P 500 Index - $43,795
* The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 81.1%
Advertising Sales - 0.7%
1,300,000 Outdoor Systems, Inc.*.......................$ 32,743,750
Automotive - Cars and Light Trucks - 0.7%
525,000 Ford Motor Co..................................33,567,188
Beverages - Non-Alcoholic - 0.7%
1,632,190 Pepsi Bottling Group, Inc......................34,378,002
Brewery - 1.0%
600,000 Anheuser-Busch Companies, Inc..................43,875,000
Broadcast Services and Programming - 2.5%
1,839,000 AT&T Corp./Liberty Media Group - Class A*.....117,466,125
Cable Television - 7.4%
401,545 Adelphia Communications Corp. - Class A*.......27,405,446
350,000 Cablevision Systems Corp.*.....................27,081,250
396,100 Century Communications Corp. - Class A*........19,433,656
2,100,000 Comcast Corp. - Special Class A...............137,943,750
1,000,000 Cox Communications, Inc. - Class A*............79,375,000
600,000 MediaOne Group, Inc.*..........................48,937,500
340,176,602
Cellular Telecommunications - 0.3%
295,145 Sprint Corp./PCS Group*........................12,506,769
Circuits - 0.6%
500,000 Maxim Integrated Products, Inc.*.............$ 28,000,000
Commercial Banks - 2.3%
3,100,000 Firstar Corp...................................93,193,750
200,000 Mercantile Bancorporation......................11,400,000
104,593,750
Commercial Services - 0.6%
560,100 Paychex, Inc...................................28,600,106
Computer Data Security - 0.6%
250,000 VeriSign, Inc.*................................28,750,000
Computer Software - 3.5%
1,975,000 Microsoft Corp.*..............................160,592,188
Computers - Memory Devices - 0.6%
235,000 EMC Corp.*.....................................25,600,313
Computers - Micro - 2.0%
675,000 Dell Computer Corp.*...........................27,801,563
1,075,000 Sun Microsystems, Inc.*........................64,298,438
92,100,001
Containers - Paper and Plastic - 0.5%
400,000 Sealed Air Corp.*..............................24,325,000
</TABLE>
See Notes to Schedules of Investments.
28 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Growth and Income Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Cruise Lines - 0.8%
1,000,000 Royal Caribbean Cruises, Ltd.................$ 36,937,500
Diversified Operations - 4.8%
1,200,000 General Electric Co...........................126,600,000
1,140,001 Tyco International, Ltd........................92,625,041
219,225,041
Electronic Components - Semiconductors - 1.9%
760,000 Intel Corp.....................................46,502,500
425,000 Texas Instruments, Inc.........................43,403,125
89,905,625
Finance - Credit Cards - 1.4%
500,000 American Express Co............................65,343,750
Finance - Investment Bankers/Brokers - 1.8%
750,000 Charles Schwab Corp............................82,312,500
Finance - Mortgage Loan Bankers - 0.9%
575,000 Fannie Mae.....................................40,789,062
Finance - Other Services - 0.7%
482,879 Newcourt Credit Group, Inc.....................13,511,793
606,805 Newcourt Credit Group, Inc.
- New York Shares.............................17,142,241
30,654,034
Food - Retail - 1.5%
1,260,000 Fred Meyer, Inc.*..............................68,197,500
Internet Content - 2.0%
225,000 At Home Corp. - Class A*.......................32,385,938
295,000 DoubleClick, Inc.*.............................41,244,688
165,000 Inktomi Corp.*.................................19,758,750
93,389,376
Internet Software - 4.5%
1,350,000 America Online, Inc.*.........................192,712,500
110,000 Excite, Inc.*..................................16,060,000
208,772,500
Medical - Drugs - 6.3%
575,000 Eli Lilly and Co. .............................42,334,375
750,000 Pfizer, Inc. ..................................86,296,875
1,350,000 Pharmacia & Upjohn, Inc. ......................75,600,000
775,000 Schering-Plough Corp. .........................37,442,188
725,000 Warner-Lambert Co. ............................49,254,688
290,928,126
Medical Instruments - 1.1%
675,000 Medtronic, Inc. ...............................48,557,812
Money Center Banks - 2.2%
400,000 Bank of America Corp...........................28,800,000
249,230 Bank of New York Co., Inc.......................9,969,200
850,000 Citigroup, Inc.................................63,962,500
102,731,700
Multi-Line Insurance - 2.6%
500,000 American Bankers Insurance Group, Inc.......$ 26,218,750
579,255 American International Group, Inc..............68,026,259
623,489 Assicurazioni Generali**.......................24,293,903
118,538,912
Multimedia - 5.7%
600,000 CBS Corp.*.....................................27,337,500
2,400,000 Time Warner, Inc..............................168,000,000
1,700,000 Viacom, Inc. - Class B*........................69,487,500
264,825,000
Networking Products - 3.5%
1,425,000 Cisco Systems, Inc.*..........................162,539,062
Optical Supplies - 0.6%
325,000 Allergan, Inc.*................................29,209,375
Pipelines - 2.4%
1,461,975 Enron Corp....................................110,013,619
Radio - 1.5%
420,000 Heftel Broadcasting Corp. - Class A*...........22,837,500
750,000 Infinity Broadcasting Corp. - Class A*.........20,765,625
333,310 Jacor Communications, Inc.*....................26,748,127
70,351,252
Retail - Building Products - 1.2%
900,000 Home Depot, Inc. ..............................53,943,750
Retail - Discount - 1.4%
800,000 Costco Companies, Inc.*........................64,750,000
Retail - Internet - 0.7%
47,800 Amazon.com, Inc.*...............................8,224,587
106,870 eBay, Inc.*....................................22,242,319
30,466,906
Retail - Office Products - 0.5%
725,000 Staples, Inc.*.................................21,750,000
Telecommunication Equipment - 2.3%
1,450,000 Nokia Oyj (ADR) - Class A.....................107,571,875
Telephone - Integrated - 1.2%
675,000 Century Telephone Enterprises, Inc.............27,168,750
2,856,012 Telecom Italia S.p.A.**........................30,260,616
57,429,366
Telephone - Long Distance - 2.7%
1,500,000 MCI WorldCom, Inc.*...........................123,281,250
Transportation - Air Freight - 0.9%
360,000 FDX Corp.*.....................................40,522,500
- -----------------------------------------------------------------------
Total Common Stock (cost $2,488,041,257)..................3,740,212,187
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 29
<PAGE>
Janus Growth and Income Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds - 3.8%
Cable Television - 0.7%
$ 3,000,000 Adelphia Communications Corp., 7.75%
senior notes, due 1/15/09(+).................$ 2,992,500
18,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09(+)...........18,450,000
1,249,000 Mediacom L.L.C., 8.50%
senior notes, due 4/15/08......................1,277,103
5,985,000 Rifkin Acquisition Partners L.P., 11.125%
senior subordinated notes, due 1/15/06.........6,800,456
29,520,059
Casino Hotels - 0.1%
4,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04.........4,230,000
Distribution and Wholesale - 0.1%
6,000,000 Aviation Sales Co., 8.125%
company guaranteed notes, due 2/15/08..........6,060,000
Food - Retail - 0.3%
10,000,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08..........10,475,000
4,000,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07...........4,220,000
14,695,000
Gambling - Non-Hotel Casinos - 0.1%
3,000,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01...............3,060,000
Hotels and Motels - 0.1%
4,000,000 Host Marriott Travel Plaza, 9.50%
senior notes, due 5/15/05......................4,165,000
Internet Software - 0.1%
2,785,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08.......................3,056,537
Leisure, Recreation and Gaming - 0.1%
4,000,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05..........3,830,000
Metal - Diversified - 0%
1,483,000 Haynes International, Inc., 11.625%
senior notes, due 9/1/04.......................1,330,992
Radio - 0.1%
3,000,000 Chancellor Media Corp., 8.125%
senior subordinated notes, due 12/15/07........3,022,500
Recreational Centers - 0%
2,000,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07........2,047,500
Resorts and Theme Parks - 0.1%
3,000,000 Sun International Hotels, Ltd., 9.00%
company guaranteed notes, due 3/15/07..........3,135,000
Retail - Diversified - 0%
2,000,000 Eye Care Centers of America, Inc., 9.125%
company guaranteed notes, due 5/1/08...........1,737,500
Retail - Internet - 1.0%
$36,395,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures,
due 2/1/09(+)...............................$ 45,994,181
Retail - Leisure Products - 0.1%
4,000,000 Selmer Co., Inc., 11.00%
senior subordinated notes, due 5/15/05.........4,270,000
Telecommunication Services - 0.8%
8,000,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08..........8,940,000
10,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08......................10,200,000
12,605,000 NTL, Inc., 7.00%
convertible subordinated notes,
due 12/15/08(+)...............................18,009,394
37,149,394
Telephone - Local - 0.1%
6,000,000 US WEST Communications, Inc., 5.625%
notes, due 11/15/08............................5,737,500
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $162,459,568)...................173,041,163
- -----------------------------------------------------------------------
Preferred Stock - 6.6%
Automotive - Cars and Light Trucks - 1.0%
18,934 Porsche A.G.**.................................46,071,992
Automotive - Truck Parts and Equipment - 0.4%
374,872 Federal - Mogul Financing Trust Corp.,
convertible, 7.00%............................20,524,242
Cable Television - 3.7%
65,500 Adelphia Communications Corp.
- Series D, convertible, 5.50%................13,394,750
556,000 MediaOne Group, Inc., convertible, 4.50%.......89,516,000
210,000 MediaOne Group, Inc., convertible, 6.25%.......16,826,250
100,000 Merrill Lynch & Co., Inc., convertible, 6.00%
STRYPES (Cox Communications, Inc.).............6,275,000
137,000 TCI Pacific Communications, Inc.
- Series A, convertible, 5.00%................43,745,813
169,757,813
Cruise Lines - 0.2%
71,000 Royal Caribbean Cruises, Ltd.,
convertible, 7.25%.............................8,165,000
Electric - Integrated - 0.9%
370,000 Houston Industries, Inc., convertible, 7.00%...43,660,000
Radio - 0.4%
162,417 Chancellor Media Corp., convertible, $3.00.....17,378,619
- -----------------------------------------------------------------------
Total Preferred Stock (cost $209,654,272)...................305,557,666
- -----------------------------------------------------------------------
Short-Term Corporate Note - 1.5%
CIT Group Holdings, Inc.
$69,600,000 4.90%, 5/3/99 (amortized cost $69,581,053).....69,581,053
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
30 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies - 6.4%
Fannie Mae:
$50,000,000 4.68%, 5/10/99..............................$ 49,941,500
50,000,000 4.62%, 5/21/99.................................49,871,667
50,000,000 4.70%, 8/13/99.................................49,338,000
50,000,000 4.69%, 8/19/99.................................49,299,500
50,000,000 4.66%, 10/18/99................................48,910,000
Freddie Mac
50,000,000 4.76%, 7/9/99..................................49,566,000
- -----------------------------------------------------------------------
Total U.S. Government Agencies (cost $296,859,778)..........296,926,667
- -----------------------------------------------------------------------
Total Investments (total cost $3,226,595,928) - 99.4%.....4,585,318,736
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 0.6%..........................................27,492,190
- -----------------------------------------------------------------------
Net Assets - 100%........................................$4,612,810,926
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
Bermuda 2.0% $ 92,625,041
Canada 0.7% 30,654,034
Finland 2.3% 107,571,875
Germany 1.0% 46,071,992
Italy 1.2% 54,554,519
United States(++) 92.8% 4,253,841,275
- -----------------------------------------------------------------------
Total 100.0% $4,585,318,736
</TABLE>
(++)Includes Short-Term Securities (84.8% excluding Short-Term Securities)
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>
Euro 7/15/99 26,000,000 $27,372,800 $2,231,840
Euro 7/22/99 26,900,000 28,306,870 3,267,640
Euro 7/28/99 14,600,000 15,357,740 1,808,940
Euro 8/5/99 11,100,000 11,669,430 1,347,540
Euro 8/12/99 11,500,000 12,084,200 744,100
- ---------------------------------------------------------------------
Total $94,791,040 $9,400,060
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 31
<PAGE>
Janus Mercury Fund
[Warren B. Lammert Photo]
Warren Lammert
portfolio manager
Janus Mercury Fund gained 63.94% for the six months ended April 30, 1999, while
the S&P 500 Index returned 22.31%.(1) These results helped the Fund achieve
top-quartile performance for the 12 months ended April 30, 1999, placing it 7th
out of 254 capital appreciation funds tracked by Lipper, Inc., a leading mutual
fund rating company.(2)
During the period, the U.S. economy continued to surprise most investors with
its resilience, easing concerns that last fall's crisis in developing economies
might spark a global recession. And while the persistence of solid economic
growth, low interest rates and benign inflation helped the stock market move
ahead, the gains remained narrowly driven.
Turning to the Fund, many of the same themes that contributed to its solid
performance in the latter half of 1998, particularly cable, wireless
telecommunications and the Internet, also supported its gains for the period. A
standout among our cable holdings was Denver-based United International
Holdings, which owns cable systems in Europe, Latin America and Australia. Early
in the year, United International completed a public offering of its European
subsidiary, helping to expose its vital assets to a broader range of European
and U.S. investors. In turn, the company's stock rose dramatically. Like some of
its U.S. cable brethren, United International is leveraging its broadband
networks to offer new services such as high-speed Internet access and cable
telephony, and we believe further upside exists for this stock.
With the rollout of these new services currently under way, many cable companies
are realizing the benefits of increasing their scale of operations through
acquisitions. Comcast and AT&T, two stocks that turned in solid results for us,
each recently announced its intention to acquire MediaOne Group, another cable
position in the Fund. Although MediaOne accepted AT&T's more generous offer,
Comcast walked away with two million additional cable subscribers. This
consolidation trend is further evidence that more people are recognizing the
potential for this business.
The wireless communications company Nokia was another stock that exhibited
strong performance for the Fund. Nokia continues to benefit from rapid cellular
subscriber growth and strong new product introductions in handsets and
infrastructure base-station equipment. Throughout the world, even in those
markets where cellular phone penetration is the highest, new subscriber growth
rates continue to show surprising strength, and we view Nokia's long-term
opportunity as significant and open-ended.
Our Internet holdings also aided the Fund's performance. Gains within this group
can be attributed in part to the growing popularity of e-commerce, which made a
debut as a mainstream activity during the 1998 holiday season. Leading e-tailer
Amazon.com, for example, saw its 1998 fourth-quarter sales increase 65% from the
third quarter of 1998 and 283% from the fourth quarter of 1997, which puts it on
a pace to show revenue per quarter exceeding $250 million. Amazon has
established a position as the leading Web seller of books, music and videos.
More recently, the company has taken several large steps to further extend its
brand across new product categories and cement its position as the leading
portal for commerce on the Web. Amazon increased its network reach by making
significant
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 94.3% 88.1%
Foreign 11.6% 6.8%
European 8.1% 6.4%
Top 10 Equities (% of Assets) 41.8% 42.1%
Number of Stocks 63 57
Cash, Cash Equivalents
& Fixed-Income
Securities 5.7% 11.9%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Retail - Internet 10.1% 1.4%
Internet Software 8.2% 2.9%
Cable Television 8.2% 18.7%
Broadcast Services and
Programming 6.0% 1.5%
Telecommunication Equipment 5.9% 4.6%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Amazon.com, Inc. 6.4% 0.7%
Nokia Oyj (ADR) - Class A 5.9% 4.3%
AT&T Corp./Liberty Media
Group - Class A 4.5% 0.9%
Time Warner, Inc. 4.0% 5.6%
Level 3 Communications, Inc. 3.8% --
Cisco Systems, Inc. 3.7% 4.0%
Enron Corp. 3.5% --
Tyco International, Ltd. 3.4% 2.1%
Medtronic, Inc. 3.4% --
eBay, Inc. 3.2% --
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A capital appreciation fund is defined by Lipper, Inc. as one that "aims at
maximum capital appreciation, frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The fund may take large cash positions." As of April 30, 1999,
Janus Mercury Fund ranked 7/100 of capital appreciation funds for the 5-year
period. Lipper's ranking is based on total return, including reinvestment of
dividends and capital gains for the stated period.
Past performance does not guarantee future results.
32 Janus Equity Funds / April 30, 1999
<PAGE>
investments in two emerging e-tailers, Drugstore.com and Pets.com, and took the
ultimate step to increase product breadth by launching its own online auction
site.
Our Internet-related positions were also helped by the growing accessibility and
affordability of Internet use. The recent introduction of Internet-ready cable
set-up boxes and the sub-$600 personal computer continue to drive online traffic
up and the price of access down.
Despite the Fund's solid results, one area of focus that lagged on a relative
basis was pharmaceuticals. Rotation in the stock market to more economically
sensitive names, combined with fundamental concern about price controls, put
pressure on the group. We also encountered company-specific disappointments with
Monsanto and Warner-Lambert and thus sold the positions. Nonetheless, from a
long-term point of view, I am still excited about continuing progress in this
industry. New drug discovery technologies should enable pharmaceutical companies
to expand their product pipelines and accelerate revenue growth over the next
five to 10 years, so we continue to carry significant positions in Pfizer and
Eli Lilly.
Looking ahead, the recent rise in interest rates is somewhat concerning to us.
However, the fundamental health of the U.S. economy, and especially the absence
of inflation, as well as the outstanding opportunities we see for many of our
companies, all support a positive outlook.
We appreciate your continued support and investment in Janus Mercury Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Mercury Fund and the S&P 500 Index. Janus Mercury Fund is represented
by a shaded area of green. The S&P 500 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 Mercury Fund at $50,154 as compared to the S&P 500 Index at
$34,435.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 67.24%
Five Year, 31.22%
Since 5/3/93*, 30.88%
JANUS MERCURY FUND - $50,154
S&P 500 Index - $34,435
*The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 94.3%
Advertising Sales - 1.2%
816,741 Lamar Advertising Co. - Class A*.............$ 27,462,916
1,679,284 Outdoor Systems, Inc.*.........................42,296,966
69,759,882
Advertising Services - 0.3%
645,200 Penton Media, Inc..............................15,323,500
Airlines - 0.8%
1,435,515 Southwest Airlines Co..........................46,743,957
Automotive - Truck Parts and Equipment - 0.8%
995,035 Federal-Mogul Corp.............................43,657,161
Broadcast Services and Programming - 6.0%
3,956,777 AT&T Corp./Liberty Media Group - Class A*.....252,739,131
151,035 TCI Music, Inc. - Class A*......................6,909,851
1,313,310 United International Holdings, Inc. - Class
A*............................................78,470,273
338,119,255
Cable Television - 8.2%
103,710 Adelphia Communications Corp. - Class A*........7,078,208
1,051,885 Cablevision Systems Corp.*.....................81,389,602
2,124,400 Comcast Corp. - Special Class A...............139,546,525
730,510 Cox Communications, Inc. - Class A*..........$ 57,984,231
2,132,950 MediaOne Group, Inc.*.........................173,968,734
459,967,300
Cellular Telecommunications - 1.1%
1,420,135 Sprint Corp./PCS Group*........................60,178,221
Circuits - 1.3%
572,285 Maxim Integrated Products, Inc.*...............32,047,960
869,165 Vitesse Semiconductor Corp.*...................40,253,204
72,301,164
Commercial Banks - 2.8%
765,365 Fifth Third Bancorp............................54,867,103
3,434,183 Firstar Corp..................................103,240,126
158,107,229
Computer Data Security - 0.9%
438,425 VeriSign, Inc.*................................50,418,875
Computer Services - 1.3%
112,330 CIBER, Inc.*....................................2,120,229
1,095,245 Sapient Corp.*.................................68,726,624
70,846,853
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 33
<PAGE>
Janus Mercury Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Computer Software - 2.1%
1,469,990 Microsoft Corp.*.............................$119,528,562
Computers - Integrated Systems - 0.8%
1,167,910 ASM Lithography Holding N.V. (ADR)*(,)**.......45,548,490
Computers - Memory Devices - 0.9%
448,610 EMC Corp.*.....................................48,870,452
Diversified Operations - 3.4%
2,359,761 Tyco International, Ltd.......................191,730,581
Electronic Components - Semiconductors - 2.0%
1,518,590 Conexant Systems, Inc.*........................61,882,543
479,665 Texas Instruments, Inc.........................48,985,788
110,868,331
Electronic Safety Devices - 0.6%
1,354,780 Pittway Corp. - Class A........................35,732,322
Finance - Credit Card - 1.0%
415,820 American Express Co............................54,342,476
Internet Content - 2.1%
412,585 DoubleClick, Inc.*.............................57,684,540
510,570 Inktomi Corp.*.................................61,140,758
118,825,298
Internet Software - 8.2%
745,951 America Online, Inc.*.........................106,484,505
873,060 Excite, Inc.*.................................127,466,760
815,280 Exodus Communications, Inc.*...................73,477,110
838,120 PSINet, Inc.*..................................42,325,060
872,195 Verio, Inc.*...................................61,925,845
286,260 Yahoo!, Inc.*..................................50,006,044
461,685,324
Machinery - General Industrial - 0.5%
555,260 Applied Materials, Inc.*.......................29,775,818
Medical - Biomedical and Genetic - 0.9%
1,076,490 Centocor, Inc.*................................47,769,244
Medical - Drugs - 3.0%
738,980 Eli Lilly and Co...............................54,407,402
854,960 Pfizer, Inc....................................98,373,835
183,480 Sepracor, Inc.*................................15,504,060
168,285,297
Medical Information Systems - 0.9%
1,593,025 IMS Health, Inc................................47,790,750
Medical Instruments - 4.3%
924,110 Guidant Corp.*.................................49,613,156
2,653,980 Medtronic, Inc................................190,920,686
240,533,842
Medical Products - 1.1%
942,680 MiniMed, Inc.*.................................58,917,500
Money Center Banks - 1.7%
2,376,515 Bank of New York Co., Inc......................95,060,600
Multimedia - 4.9%
3,171,985 Time Warner, Inc............................$ 222,038,950
1,221,065 Viacom, Inc. - Class B*........................49,911,032
271,949,982
Networking Products - 3.7%
1,805,073 Cisco Systems, Inc.*..........................205,891,139
Pipelines - 3.5%
2,590,830 Enron Corp....................................194,959,957
Property and Casualty Insurance - 0.8%
319,650 Progressive Corp...............................45,869,775
Retail - Discount - 0.9%
623,290 Costco Companies, Inc.*........................50,447,534
Retail - Internet - 9.6%
2,078,815 Amazon.com, Inc.*.............................357,686,106
853,180 eBay, Inc.*...................................177,568,088
535,254,194
Retail - Office Supplies - 0.8%
1,577,117 Staples, Inc.*.................................47,313,510
Telecommunication Equipment - 5.9%
4,446,540 Nokia Oyj (ADR) - Class A**...................329,877,686
Telecommunication Services - 4.2%
2,368,915 Level 3 Communications, Inc.*.................213,350,407
468,072 United Pan-Europe Communications N.V.*(,)**....24,239,974
855 United Pan-Europe Communications N.V.
(ADR)*(,)**.......................................43,552
237,633,933
Telephone - Integrated - 1.0%
16,280 NEXTLINK Communications, Inc.*..................1,192,510
5,248,911 Telecom Italia S.p.A.**........................55,614,360
56,806,870
Telephone - Long Distance - 0.8%
517,455 MCI WorldCom, Inc.*............................42,528,332
- -----------------------------------------------------------------------
Total Common Stock (cost $3,770,372,035)..................5,279,221,196
- -----------------------------------------------------------------------
Corporate Bonds - 0.5%
Amazon.com, Inc.:
$ 30,338,000 zero coupon, senior discount notes,
due 5/1/08....................................21,995,050
4,998,000 4.75%, convertible subordinated
debentures, due 2/1/09(+)......................6,316,223
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $24,080,241).....................28,311,273
- -----------------------------------------------------------------------
Short-Term Corporate Notes - 3.2%
CIT Group Holding, Inc.
28,700,000 4.90%, 5/3/99..................................28,692,187
Household Finance Corp.
100,000,000 4.88%, 5/3/99..................................99,972,889
</TABLE>
See Notes to Schedules of Investments.
34 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Short-Term Corporate Notes - (continued)
JP Morgan Securities
$50,000,000 4.82%, 7/7/99...............................$ 49,570,000
- -----------------------------------------------------------------------
Total Short-Term Corporate Notes (cost $178,216,548)........178,235,076
- -----------------------------------------------------------------------
U.S. Government Agencies - 2.6%
Fannie Mae:
50,000,000 4.68%, 7/13/99.................................49,540,000
50,000,000 4.69%, 8/19/99.................................49,299,500
50,000,000 4.66%, 10/19/99................................48,903,500
- -----------------------------------------------------------------------
Total U.S. Government Agencies (cost $147,700,694)..........147,743,000
- -----------------------------------------------------------------------
Total Investments (total cost $4,120,369,518) - 100.6%....5,633,510,545
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.6%)...........................................(31,365,303)
- -----------------------------------------------------------------------
Net Assets - 100%........................................$5,602,145,242
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
Bermuda 3.4% $ 191,730,581
Finland 5.9% 329,877,686
Italy 1.0% 55,614,360
Netherlands 1.2% 69,832,015
United States(++) 88.5% 4,986,455,903
- -----------------------------------------------------------------------
Total 100.0% $5,633,510,545
</TABLE>
(++)Includes Short-Term Securities (82.7% excluding Short-Term Securities)
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>
Euro 7/22/99 120,000,000 $126,276,000 $14,140,910
Euro 8/12/99 92,000,000 96,673,600 3,906,295
- ---------------------------------------------------------------------
Total $222,949,600 $18,047,205
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 35
<PAGE>
Janus Olympus Fund
[Claire Young Photo]
Claire Young
portfolio manager
Janus Olympus Fund gained 58.06% during the six-month period ended April 30,
1999, substantially outpacing its benchmark index, the S&P 500, which returned
22.31%.(1) For the 12 months ended April 30, 1999, the Fund ranked 9th out of
254 capital appreciation funds as tracked by Lipper, Inc., a mutual fund rating
company.(2)
Overall, I was gratified with the Fund's performance. Many of our companies'
fundamentals exceeded even our aggressive expectations. Our focus on growth
businesses with superior product offerings led us to some excellent investment
opportunities.
One such opportunity is the Internet, which is transforming the way business is
conducted. Internet companies are utilizing this medium to create new markets
and lower their costs. Broad-based consumer support for these alternative
businesses was evident by the record number of customers that service providers
have recently added and the $3.5 billion spent in e-commerce during the past
Christmas season.
America Online, the leading Internet and online service provider, continues to
gain subscribers at a phenomenal pace. The company is leveraging its commanding
share of online users by entering into marketing agreements with e-commerce
partners and advertisers. Discount broker Charles Schwab is utilizing the
Internet to provide consumers with instant access to account, stock and mutual
fund information at a much lower cost than full-service brokers. Two other
favorite holdings, Amazon.com, an online retailer, and eBay, a person-to-person
online trading community, are young companies building brand-name Internet
businesses with very little capital investment. Both are maniacally focused on
providing the finest customer experience by continually reengineering their Web
sites to add new features and improve ease-of-use.
Technological improvements are stimulating market demand in the data and
wireless industries by driving prices down and adding functionality. Despite
fears of a pause in general technology spending because of the Year 2000
transition, there are few signs of slowing in these areas. Companies continue to
build out their Web offerings and move their internal information systems onto
the Internet. Consumers are embracing new cellular pricing structures to receive
telephone service anytime, anywhere.
Cisco Systems is an excellent example of a company that is pushing the
technological envelope. The leader in computer networking technology, Cisco is
entering the $100 billion telecommunications equipment market with products to
assist service providers in migrating from a voice-only to an integrated
voice/video/data environment. Sun Microsystems, another strong performer,
manufactures the servers that house the majority of Internet Web sites. We also
saw significant gains with worldwide mobile phone and network supplier Nokia,
which is introducing innovative products with functionality well ahead of
competitive offerings.
The retail sector continues to impress us. Consumer spending remains robust,
fueled by low unemployment, significant real wage gains, and investment
appreciation from strong equity and housing markets. Tiffany, the premier
retailer of fine jewelry and gift items, is utilizing a smaller
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 85.4% 80.3%
Foreign 11.5% 7.4%
European 8.4% 7.4%
Top 10 Equities (% of
Assets) 32.5% 35.6%
Number of Stocks 59 49
Cash, Cash Equivalents
& Fixed-Income
Securities 14.6% 19.7%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Internet Software 7.7% 3.3%
Retail - Internet 6.0% --
Telecommunication
Services 5.9% 4.3%
Cable Television 5.8% 4.1%
Medical - Drugs 4.7% 11.8%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
America Online, Inc. 5.8% 3.3%
Cisco Systems, Inc. 3.9% 4.5%
Nokia Oyj (ADR) - Class A 3.9% 2.2%
eBay, Inc. 3.4% --
Sun Microsystems, Inc. 2.9% --
Time Warner, Inc. 2.8% 3.4%
Amazon.com, Inc. 2.6% --
Tiffany & Co. 2.4% --
Microsoft Corp. 2.4% 4.6%
Airtouch Communications, Inc. 2.4% --
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A capital appreciation fund is defined by Lipper, Inc. as one that "aims at
maximum capital appreciation, frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The fund may take large cash positions."
Past performance does not guarantee future results.
36 Janus Equity Funds / April 30, 1999
<PAGE>
format to open stores in new markets throughout the U.S., while enjoying strong
demand in its existing U.S. and Japanese stores. Costco, a membership warehouse
operator, is increasing same-store sales as it adds new services such as fresh
foods, pharmacies and gas stations to its stores.
While I was pleased with the performance of most of the Fund's holdings, a few
fell short of expectations. I sold our Dell Computer position as the sub-$1,000
personal computer began to impact the company's growth prospects. McKesson/HBO
Corporation was liquidated when the company announced it had improperly
accounted for some software sales. In addition, I trimmed our holding in
Warner-Lambert as safety concerns surfaced regarding its diabetes drug, Rezulin.
Going forward, I believe the U.S. economy will continue to show impressive
stamina and could strengthen as prospects in Asia and Latin America improve.
This strength may enhance the earnings potential of many cyclical companies,
which, in turn, should stimulate further capital spending. I am confident we
have identified companies that are poised to benefit from both the powerful
secular trends such as the Internet and the revolution in telecommunications, as
well as from a continued healthy economy. These investments should demonstrate
earnings power that is appreciated by the market in the future.
Thank you for your investment in Janus Olympus Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Olympus Fund and the S&P 500 Index. Janus Olympus Fund is represented
by a shaded area of green. The S&P 500 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 Olympus Fund at $30,116 as compared to the S&P
500 Index at $22,991.
Average Annual Total Return
for the periods ended April 30,1999
One Year, 63.04%
Since 12/29/95*, 39.15%
JANUS OLYMPUS FUND - $30,116
S&P 500 Index - $22,991
* 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
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>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 85.4%
Athletic Footwear - 0.9%
350,000 Nike, Inc. - Class B..........................$21,765,625
Broadcast Services and Programming - 1.5%
600,000 United International Holdings, Inc. - Class
A*............................................35,850,000
Cable Television - 3.7%
153,825 Adelphia Communications Corp. - Class A*.......10,498,556
825,000 Comcast Corp. - Special Class A................54,192,188
842,953 Le Groupe Videotron ltee.......................17,249,110
490,161 Rogers Communications, Inc. - Class B*..........9,188,581
91,128,435
Casino Hotels - 0.5%
592,735 Mirage Resorts, Inc.*..........................13,299,492
Cellular Telecommunications - 3.1%
620,000 AirTouch Communications, Inc.*.................57,892,500
1,200,000 Orange PLC*(,)**...............................16,345,735
74,238,235
Commercial Banks - 1.3%
1,080,000 Firstar Corp...................................32,467,500
Computer Data Security - 0.9%
188,440 VeriSign, Inc.*................................21,670,600
Computer Services - 1.4%
650,695 Paychex, Inc...................................33,226,113
Computer Software - 2.4%
720,000 Microsoft Corp.*..............................$58,545,000
Computers - Integrated Systems - 1.2%
328,400 Equant N.V. - New York Shares*.................29,309,700
Computers - Memory Devices - 3.2%
300,000 EMC Corp.*.....................................32,681,250
660,000 VERITAS Software Corp.*........................46,860,000
79,541,250
Computers - Micro - 2.9%
1,175,000 Sun Microsystems, Inc.*........................70,279,687
Diversified Financial Services - 1.2%
400,000 Citigroup, Inc.................................30,100,000
Diversified Operations - 2.0%
600,000 Tyco International, Ltd........................48,750,000
Electronic Components - Semiconductor - 2.8%
300,000 Applied Materials, Inc.*.......................16,087,500
700,000 Conexant Systems, Inc.*........................28,525,000
651,495 Galileo Technology, Ltd.*......................14,984,385
100,000 Texas Instruments, Inc.........................10,212,500
69,809,385
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 37
<PAGE>
Janus Olympus Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Finance - Mortgage Loan Banker - 0.9%
300,000 Fannie Mae...................................$ 21,281,250
Finance - Investment Bankers/Brokers - 2.4%
440,000 Charles Schwab Corp............................48,290,000
77,375 Knight/Trimark Group, Inc. - Class A*..........11,852,883
60,142,883
Food - Retail - 2.0%
600,000 Fred Meyer, Inc................................32,475,000
409,045 Whole Foods Market, Inc.*......................15,952,755
48,427,755
Internet Content - 1.2%
90,000 At Home Corp. - Class A*.......................12,954,375
125,000 DoubleClick, Inc.*.............................17,476,562
30,430,937
Internet Software - 7.7%
1,000,000 America Online, Inc.*.........................142,750,000
325,495 Excite, Inc.*..................................47,522,270
190,272,270
Lasers - Systems and Components - 1.6%
325,000 Uniphase Corp.*................................39,446,875
Medical - Drugs - 4.7%
353,765 Eli Lilly and Co...............................26,045,948
350,000 Pfizer, Inc....................................40,271,875
450,000 Schering-Plough Corp...........................21,740,625
400,000 Warner-Lambert Co..............................27,175,000
115,233,448
Medical Instruments - 1.2%
400,000 Medtronic, Inc.................................28,775,000
Money Center Banks - 1.5%
900,000 Bank of New York Co., Inc......................36,000,000
Multimedia - 2.8%
1,000,000 Time Warner, Inc...............................70,000,000
Networking Products - 3.9%
850,000 Cisco Systems, Inc.*...........................96,953,125
Radio - 1.7%
750,000 Chancellor Media Corp.*........................41,156,250
Retail - Apparel and Shoes - 0.4%
300,000 Nordstrom, Inc.................................10,556,250
Retail - Building Products - 1.0%
400,000 Home Depot, Inc................................23,975,000
Retail - Discount - 1.5%
450,985 Costco Companies, Inc.*........................36,501,598
Retail - Drug Store - 1.6%
800,000 CVS Corp.......................................38,100,000
Retail - Internet - 6.0%
375,000 Amazon.com, Inc.*..............................64,523,438
400,000 eBay, Inc.*....................................83,250,000
147,773,438
Retail - Jewelry - 2.4%
700,000 Tiffany & Co................................$ 58,800,000
Retail - Office Supplies - 0.9%
706,095 Staples, Inc.*.................................21,182,850
Schools - 0.9%
889,210 DeVry, Inc.*...................................23,452,914
Schools - Day Care - 0.2%
258,595 Bright Horizons Family Solutions, Inc.*.........5,559,792
Telecommunication Equipment - 3.9%
1,300,000 Nokia Oyj (ADR) - Class A......................96,443,750
Telecommunication Services - 3.7%
1,648,396 COLT Telecom Group PLC*(,)**...................30,813,897
300,000 COLT Telecom Group PLC (ADR)*(,)**.............22,912,500
300,000 Qwest Communications International, Inc.*......25,631,250
199,430 United Pan-Europe Communications N.V.*(,)**....10,327,851
570 United Pan-Europe Communications
N.V. (ADR)*(,)**..................................29,034
89,714,532
Telephone - Long Distance - 2.3%
700,000 MCI WorldCom, Inc.*............................57,531,250
- -----------------------------------------------------------------------
Total Common Stock (cost $1,362,655,691)..................2,097,692,189
- -----------------------------------------------------------------------
Corporate Bonds - 4.3%
Cable Television - 2.1%
$ 79,000,000 Charter Communications Holdings L.L.C.
9.92%, senior discount notes, due 4/1/11(+)...52,041,250
Telecommunication Services - 2.2%
21,000,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08.........23,467,500
30,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08......................30,600,000
54,067,500
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $102,176,948)...................106,108,750
- -----------------------------------------------------------------------
Short-Term Corporate Note - 4.9%
Associates Corp. N.A.
119,200,000 4.92%, 5/3/99
(amortized cost $119,167,419)................119,167,419
- -----------------------------------------------------------------------
U.S. Government Agencies - 4.0%
Fannie Mae:
50,000,000 4.73%, 6/4/99..................................49,774,278
50,000,000 4.66%, 10/18/99................................48,897,056
- -----------------------------------------------------------------------
Total U.S. Government Agencies (cost $98,674,000)............98,671,334
- -----------------------------------------------------------------------
Total Investments (total cost $1,682,674,058) - 98.6%.....2,421,639,692
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 1.4%..........................................34,571,786
- -----------------------------------------------------------------------
Net Assets - 100%........................................$2,456,211,478
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
38 Janus Equity Funds / April 30, 1999
<PAGE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
Bermuda 2.0% $ 48,750,000
Canada 1.1% 26,437,691
Finland 4.0% 96,443,750
Netherlands 1.6% 39,666,585
United Kingdom 2.9% 70,072,132
United States(++) 88.4% 2,140,269,534
- -----------------------------------------------------------------------
Total 100.0% $2,421,639,692
</TABLE>
(++)Includes Short-Term Securities (79.4% excluding Short-Term Securities)
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>
British Pound 10/8/99 23,300,000 $ 37,454,750 $ 134,555
British Pound 11/18/99 3,700,000 5,948,120 15,180
Euro 7/15/99 1,400,000 1,473,920 165,620
Euro 7/22/99 46,000,000 48,405,800 4,976,250
Euro 8/12/99 48,800,000 51,279,040 3,186,410
- ---------------------------------------------------------------------
Total $144,561,630 $8,478,015
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 39
<PAGE>
Janus Overseas Fund (closed to new investors)
[Helen Young Hayes Photo]
Helen Young Hayes
portfolio manager
[Laurence Chang]
Laurence Chang
portfolio manager
Janus Overseas Fund gained 19.72% during the six-month period ended April 30,
1999, while our benchmark, the Morgan Stanley Capital International EAFE Index,
rose 13.26%.(1)
We are pleased with our performance during what proved to be a volatile period
for international equities. Low inflation and widespread interest rate cuts
helped markets recoup much of their losses in the wake of last fall's global
financial turmoil, with Europe leading the rebound. However, markets there have
struggled more recently with softening economic growth, weakness in the new euro
currency and conflict in Yugoslavia. The European Central Bank responded to this
latest economic slowdown by cutting interest rates, a move that raised
expectations of improved growth later this year, while providing renewed support
for more economically sensitive stocks.
Offsetting the mixed economic picture in Europe were indications that the worst
may be over for economies in Asia and Latin America. Against this backdrop,
financial markets in the Far East and Brazil have started to rebound in recent
months, but still remain at historically low levels.
In navigating these crosscurrents, our aim has been to identify powerful growth
opportunities we believe transcend the fluctuations of individual economies. One
compelling area is in the growth of wireless communications. In markets from
Europe to China, cellular penetration continues to accelerate and exceed nearly
all expectations. Companies such as Germany's Mannesman, Hong Kong-based China
Telecom, and UK cellular giant Vodafone Group (soon to be merged with the U.S.
company Airtouch Communications) all performed well during the period.
Additionally, we see a new wave of opportunity in wireless data services.
Japan's NTT Mobile Communications, a company at the forefront of efforts to
develop this area of technology and one of our top-performing holdings during
the period, is beginning to provide services that allow customers to check their
e-mail or surf the Internet over cellular handsets. While these services are
just now being introduced to customers, interest is already high.
Growth trends in telecommunications and Internet applications also benefited the
semiconductor business. In addition, lower investment spending during the past
year has improved the balance of supply and demand in this industry, resulting
in improved pricing. Our holding in Netherlands-based Philips Electronics gained
from these trends, as the technology giant continued to shed non-core businesses
and focus on its more profitable semiconductor operations.
Another area of concentration within the Fund was pharmaceuticals. Rapid product
development continues to present promising investment opportunities in this area
of the market. New diabetes treatments, for example, increased our optimism for
both Japan's Takeda Chemical and the UK's SmithKline Beecham. We also have a
positive outlook for the Swiss pharmaceutical company Roche Holding, which is
currently launching a novel new treatment for obesity called Xenical. We are
optimistic about the near-term opportunities presented by these treatments, as
well as the
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 96.2% 85.7%
Foreign 92.9% 83.1%
Top 10 Equities (% of Assets) 27.5% 23.1%
Number of Stocks 120 146
Cash, Cash Equivalents
& Fixed-Income
Securities 3.8% 14.3%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Telecommunication Services 10.4% 5.9%
Telephone - Integrated 8.2% 5.4%
Cellular Telecommunications 7.6% --
Telecommunication Equipment 7.1% 5.0%
Medical - Drugs 6.9% 6.5%
- ----------------------------------------------------------
TOP 5 COUNTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Japan 14.9% 9.4%
United Kingdom 13.3% 16.6%
Netherlands 9.9% 7.8%
Germany 8.3% 7.9%
Finland 7.6% 5.8%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Nokia Oyj - Class A 4.3% 2.8%
Mannesmann A.G. 4.0% 3.1%
NTT Mobile Communication Network,
Inc. 3.7% 2.4%
Vivendi 2.7% 1.7%
Wolters Kluwer N.V. 2.5% 3.2%
COLT Telecom Group PLC 2.3% 1.8%
Tyco International, Ltd. 2.2% --
Nokia Oyj (ADR) - Class A 2.0% 1.7%
Rogers Communications, Inc. - Class B 1.9% --
Kao Corp. 1.9% 1.5%
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends. Net dividends reinvested are the
dividends that remain to be reinvested after foreign tax obligations have
been met. Such obligations vary from country to country.
Past performance does not guarantee future results.
40 Janus Equity Funds / April 30, 1999
<PAGE>
longer-term promise of the pharmaceutical industry, which continues to be driven
by an aging population and new drug development techniques.
While we were pleased with our overall results during the period, there were a
few positions that did not meet our expectations. For example, a number of our
European technology companies, including Cap Gemini and Getronics, have
struggled following a long period of strong performance. The near-term outlook
for software companies has been clouded by concerns over a potential Y2K-related
slowdown in corporate technology spending. However, we believe these companies
will have tremendous growth potential in 2000 and beyond, driven by the rise in
Internet use and e-commerce across Europe. Consequently, we have maintained our
positions in both of these companies.
Going forward, we remain optimistic on the outlook for the international economy
against a backdrop of continued moderate inflation, low interest rates, and
budding recoveries in Europe and parts of Asia. Likewise, Latin America also
seems to have bounced from the bottom.
While we continue to monitor macroeconomic trends, our focus, as always, is on
individual companies that combine strong franchises, compelling products and
forward-thinking management.
Thank you for your continued investment in Janus Overseas Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000
investment in Janus Overseas Fund and the Morgan Stanley Capital International
EAFE Index. Janus Overseas Fund is represented by a shaded area of green. The
Morgan Stanley Capital International EAFE 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 2, 1994, through April 30, 1999.
The lower right quadrant reflects the ending value of the hypothetical
investment in Janus Overseas Fund at $23,098 as compared to the Morgan Stanley
Capital International EAFE Index at $15,180.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 5.47%
Since 5/2/94*, 18.24%
JANUS OVERSEAS FUND - $23,098
Morgan Stanley Capital
International EAFE
Index - $15,180
* The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 93.0%
Advertising Agencies - 0%
69,085 WPP Group PLC**...............................$ 612,898
Airlines - 0%
42,209 SAS Sverige A.B. ................................416,530
Athletic Footwear - 0.3%
128,526 Adidas - Salomon A.G.**.......................12,672,832
Audio and Video Products - 1.3%
608,200 Sony Corp.**..................................56,814,290
Automotive - Cars and Light Trucks - 1.9%
189,814 DaimlerChrysler A.G.*(,)**....................18,766,095
111,335 DaimlerChrysler A.G. (ADR)*(,)**..............10,931,705
1,237,000 Honda Motor Co., Ltd.**.......................54,511,953
84,209,753
Automotive - Truck Parts and Equipment - 0%
16,743 Valeo S.A.**...................................1,417,066
Brewery - 1.0%
521,496 Heineken N.V.**...............................26,206,642
1,786,000 Kirin Brewery Co., Ltd.**.....................20,200,007
46,406,649
Broadcast Services and Programming - 1.4%
437,550 Grupo Televisa S.A. (GDR)...................$ 17,939,550
760,035 United International Holdings, Inc. - Class
A*...........................................45,412,091
63,351,641
Cable Television - 3.8%
3,293,697 Le Groupe Videotron ltee.(#)..................67,397,994
4,483,610 Rogers Communications, Inc. - Class B*........84,049,965
4,199,314 TeleWest Communications PLC*(,)**.............19,432,019
170,879,978
Cellular Telecommunications - 7.6%
229,765 AirTouch Communications, Inc.*................21,454,307
27,336,000 China Telecom, Ltd.*..........................62,430,270
48,098 MobilCom A.G.**...............................12,202,336
2,842 NTT Mobile Communication Network, Inc.**.....166,670,375
994,608 Orange PLC*(,)**..............................13,547,999
5,916,781 Telecom Italia Mobile S.p.A.**................35,667,669
1,589,867 Vodafone Group PLC**..........................29,310,224
341,283,180
Chemicals - Diversified - 0.1%
134,681 Hoechst A.G.**.................................6,390,511
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 41
<PAGE>
Janus Overseas Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Commercial Banks - 2.4%
1,273,332 Argentaria, Caja Postal y Banco
Hipotecario de Espana, S.A.**..............$ 29,987,040
15,614 Julius Baer Holding A.G. - Class B**..........50,920,167
211,783 Toronto-Dominion Bank.........................11,321,311
3,877,853 Unicredito Italiano S.p.A.**..................19,749,869
111,978,387
Computer Services - 3.2%
204,638 Atos S.A.*(,)**...............................17,536,305
288,080 Cap Gemini S.A.**.............................44,100,998
931,520 Getronics N.V.**..............................38,286,881
3,639,245 Logica PLC**..................................35,157,290
221,980 WM-Data A.B. - Class B.........................8,181,617
143,263,091
Computer Software - 0.7%
732,367 Tieto Corp. - Class B**.......................29,597,765
Computers - Integrated Systems - 1.9%
271,606 ASM Lithography Holding N.V.*(,)**............11,465,132
66,255 ASM Lithography Holding N.V. (ADR)*(,)**.......2,583,945
207,240 Equant N.V.*(,)**.............................18,833,608
152,195 Equant N.V. - New York Shares*(,)**...........13,583,404
1,676,000 Fujitsu, Ltd.**...............................28,714,657
1,304,248 SEMA Group PLC**..............................12,631,318
87,812,064
Cosmetics and Toiletries - 1.9%
3,299,000 Kao Corp.**...................................83,745,454
Distribution and Wholesale - 0.9%
309,100 Softbank Corp.**..............................41,148,992
Diversified Operations - 6.8%
4,832,830 Hays PLC**....................................53,769,057
5,588,250 Rentokil Initial PLC**........................32,602,953
1,197,155 Tyco International, Ltd.......................97,268,844
526,621 Vivendi**....................................123,183,829
306,824,683
Drug Delivery Systems - 0.7%
596,629 Elan Corp. PLC (ADR)*.........................30,726,394
Electronic Components - 2.1%
448,689 Koninklijke (Royal) Philips Electronics
N.V.**.......................................38,687,424
636,428 Koninklijke (Royal) Philips Electronics N.V.
- New York Shares**..........................54,335,041
93,022,465
Electronic Components - Semiconductors - 0.3%
423,465 Galileo Technology, Ltd.*......................9,739,695
68,000 Tokyo Electron, Ltd.**.........................3,873,951
13,613,646
Food - Catering - 1.1%
3,599,117 Compass Group PLC**...........................36,681,959
72,773 Sodexho Alliance S.A.**.......................11,956,623
48,638,582
Hotels and Motels - 0.3%
44,809 Accor S.A.**..................................11,827,762
Human Resources - 1.0%
3,748 Adecco S.A.**................................$ 1,893,138
3,936,167 Capita Group PLC**............................41,574,804
43,467,942
Investment Companies - 0.3%
77,358 Ratin A/S - B Shares..........................13,336,385
Investment Management and Advisory Services - 0.1%
661,208 Amvescap PLC**.................................7,047,725
Machinery - General Industrial - 4.0%
1,377,203 Mannesmann A.G.**............................181,544,371
Medical - Drugs - 6.9%
505,887 Glaxo Wellcome PLC**..........................14,971,084
56,609 Pharmacia & Upjohn, Inc. ......................3,149,887
703,645 Pharmacia & Upjohn, Inc. .....................39,404,120
5,283 Roche Holding A.G.**..........................62,252,879
182,811 Sanofi S.A.**.................................28,682,055
962,182 SmithKline Beecham PLC**......................12,734,500
704,895 SmithKline Beecham PLC (ADR)**................46,302,790
54,992 Synthelabo**..................................11,257,638
1,917,000 Takeda Chemical Industries**..................83,353,870
336,000 Yamanouchi Pharmaceutical Co., Ltd.**.........10,640,631
312,749,454
Metal Processors and Fabricators - 1.3%
1,326,935 Assa Abloy A.B. - Class B.....................58,057,869
Money Center Banks - 3.3%
7,417,450 Banca di Roma**...............................12,171,195
1,473,450 Banco Bilbao Vizcaya, S.A.*(,)**..............22,073,207
865,243 Banco Santander Central Hispanco, S.A.**......18,820,367
398,070 ING Groep N.V.**..............................24,552,447
1,437,726 Lloyds TSB Group PLC**........................23,160,403
135,537 UBS A.G.**....................................46,115,192
146,892,811
Mortgage Banks - 0.9%
469,059 Deutsche Pfandbriefbank A.G.**................39,203,185
Multi-Line Insurance - 2.3%
450,133 Aegon N.V.**..................................43,216,966
525,488 Assicurazioni Generali**......................20,475,349
109,201 Axa**.........................................14,117,721
41,314 Zurich Allied A.G.**..........................25,888,209
103,698,245
Multimedia - 1.7%
1,984,883 Publishing & Broadcasting, Ltd................13,361,464
1,503,823 Shaw Communications, Inc. - Class B...........61,957,664
75,319,128
Oil Companies - Integrated - 0.3%
56,727 Elf Aquitaine S.A.**...........................8,822,139
130,805 YPF S.A. (ADR).................................5,493,810
14,315,949
</TABLE>
See Notes to Schedules of Investments.
42 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Publishing - Periodicals - 2.6%
393,194 Talentum - Class B**.........................$ 5,282,961
2,545,900 Wolters Kluwer N.V.**........................110,969,938
116,252,899
Recycling - 0.3%
357,238 Tomra Systems A.S.A...........................14,222,926
Retail - Diversified - 1.0%
769,000 Ito-Yokado Co., Ltd.**........................47,224,418
Retail - Restaurants - 0.3%
1,883,796 TelePizza S.A.*(,)**..........................11,957,817
Security Services - 1.1%
3,518,656 Securitas A.B. - Class B......................52,293,830
Telecommunication Equipment - 7.1%
2,527,178 Nokia Oyj - Class A**........................195,442,943
1,213,120 Nokia Oyj (ADR) - Class A**...................89,998,340
577,057 Telefonaktiebolaget L.M. Ericsson - Class B*..15,196,937
787,267 Telefonaktiebolaget L.M. Ericsson (ADR)*......21,256,209
321,894,429
Telecommunication Services - 9.1%
465,993 BCE, Inc. ....................................21,278,847
14,321,072 Cable & Wireless Optus, Ltd.*.................32,270,680
5,532,266 COLT Telecom Group PLC*(,)**.................103,416,092
2,487,326 Energis PLC*(,)**.............................67,933,365
340,150 Global TeleSystems Group, Inc.*...............22,492,419
786,165 NTL, Inc.*....................................59,945,081
5,186 NTT Data Corp.**..............................41,058,268
300,720 STET Hellas Telecommunications S.A. (ADR)*.....8,119,440
1,035,949 United Pan-Europe Communications N.V.*(,)**...53,648,534
1,620 United Pan-Europe Communications N.V.
(ADR)*(,)**......................................82,519
410,245,245
Telephone - Integrated - 8.2%
1,991,056 British Telecommunications PLC**(,#)..........33,468,544
1,857 Nippon Telegraph & Telephone Corp.**..........20,225,141
687,839 Sonera Group Oyj**............................13,608,028
153,867 Swisscom A.G.**...............................56,596,543
475,310 Telecom Argentina Stet S.A. (ADR)*............16,398,195
6,273,984 Telecom Italia S.p.A.**.......................66,475,428
Telephone - Integrated - (continued)
454,280 Telefonica de Argentina S.A. (ADR).........$ 16,978,715
1,643,911 Telefonica S.A.*(,)**.........................77,132,731
94,057 Telefonica S.A. (ADR)*(,)**...................13,109,231
728,755 Telefonos de Mexico S.A. (ADR)................55,203,191
369,195,747
Travel Services - 0.6%
8,269 Kuoni Reisen A.G. - Class B**.................29,329,398
Water - 0.9%
225,976 Suez Lyonnaise des Eaux**.....................38,490,626
- -----------------------------------------------------------------------
Total Common Stock (cost $3,017,124,420)..................4,193,395,012
- -----------------------------------------------------------------------
Preferred Stock - 3.2%
Automotive - Cars and Light Trucks - 1.2%
23,189 Porsche A.G.**................................56,425,659
Diversified Financial Services - 0.7%
53,413 Marschollek, Lautenschlaeger und
Partner A.G.**...............................29,949,503
Telecommunication Services - 1.3%
641,105 Telecomunicacoes Brasileiras S.A. (ADR).......58,460,762
- -----------------------------------------------------------------------
Total Preferred Stock (cost $117,001,524)...................144,835,924
- -----------------------------------------------------------------------
Rights - 0%
1,643,911 Telefonica S.A.*(,)** (cost $0)................1,530,480
- -----------------------------------------------------------------------
U.S. Government Obligation - 0.3%
$12,200,000 U.S. Treasury Bill
4.30%, 7/22/99 (cost $12,076,345)............12,079,830
- -----------------------------------------------------------------------
Short-Term Corporate Note - 1.2%
Household Finance Corp.
56,000,000 4.88%, 5/3/99
(amortized cost $55,984,818).................55,984,818
- -----------------------------------------------------------------------
Total Investments - 97.7% (total cost $3,202,187,107).....4,407,826,064
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 2.3%.........................................103,502,188
- -----------------------------------------------------------------------
Net Assets - 100%........................................$4,511,328,252
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 43
<PAGE>
Janus Overseas Fund
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
Argentina 0.9% $ 38,870,720
Australia 1.0% 45,632,143
Bermuda 2.2% 97,268,843
Brazil 1.3% 58,460,762
Canada 5.6% 246,005,782
Denmark 0.3% 13,336,385
Finland 7.6% 333,930,036
France 7.1% 311,392,762
Germany 8.3% 368,168,716
Greece 0.2% 8,119,440
Hong Kong 1.4% 62,430,269
Ireland 0.7% 30,726,393
Israel 0.2% 9,739,695
Italy 3.5% 154,539,509
Japan 14.9% 658,182,007
Mexico 1.7% 73,142,741
Netherlands 9.9% 436,369,961
Norway 0.3% 14,222,925
Spain 4.0% 174,610,873
Sweden 4.5% 197,956,999
Switzerland 6.2% 272,995,525
United Kingdom 13.3% 584,355,038
United States(++) 4.9% 217,368,540
- -----------------------------------------------------------------------
Total 100.0% $4,407,826,064
</TABLE>
(++)Includes Short-Term Securities (3.4% excluding Short-Term Securities)
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>
British Pound 5/6/99 132,480,000 $213,147,072 $ 4,642,099
British Pound 5/13/99 22,000,000 35,393,600 994,400
British Pound 10/8/99 33,000,000 53,047,500 151,800
Euro 7/15/99 21,100,000 22,214,080 2,496,130
Euro 7/28/99 17,250,000 18,145,275 2,137,275
Euro 8/12/99 58,200,000 61,156,560 7,577,640
Euro 8/27/99 153,400,000 161,023,980 18,806,840
Japanese Yen 5/20/99 5,800,000,000 48,597,827 513,096
Japanese Yen 9/16/99 870,000,000 7,290,871 228,575
Japanese Yen 10/8/99 13,500,000,000 113,137,625 3,563,025
Japanese Yen 10/14/99 6,800,000,000 56,988,270 1,345,778
Japanese Yen 10/15/99 1,970,000,000 16,509,865 284,679
Japanese Yen 10/21/99 4,530,000,000 37,964,595 1,239,213
Japanese Yen 11/18/99 7,130,000,000 59,756,782 2,513,960
Swiss Franc 10/8/99 25,000,000 16,706,763 422,391
Swiss Franc 10/21/99 8,500,000 5,688,663 153,262
Swiss Franc 11/18/99 4,000,000 2,685,285 108,011
- -----------------------------------------------------------------------
Total $929,454,613 $ 47,178,174
</TABLE>
See Notes to Schedules of Investments.
44 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Special Situations Fund
[David C. Decker Photo]
David Decker
portfolio manager
For the first half of the fiscal year, November 1, 1998, through April 30, 1999,
Janus Special Situations Fund gained 41.19%, while the S&P 500 Index returned
22.31%.(1)
Contributing to this strong performance was our sizeable weighting in cable,
which continues to be an important theme in the Fund. Time Warner, Comcast and
TCA Cable TV represented most of our investment in this area, but a new
addition, Rogers Communications of Canada, also contributed to our results. A
recent visit to the company's Toronto headquarters led us to believe that the
significant disparity in valuations between this outstanding Canadian cable
operator and its U.S. counterparts is absolutely not justified.
With respect to the valuations of our U.S. cable investments, while they have
been strong performers over the last couple of years, we are still very
comfortable with our outlook for these businesses. AT&T's recent offer to buy
MediaOne Group for almost $5,000 per subscriber suggests to me that these
companies are still not yet fully valued by Wall Street.
I'd also like to highlight two other positions and explain how they fit within
the framework of the Fund. The first is Station Casinos, a casino operator with
properties in Las Vegas, Kansas City and St. Louis. We began buying this stock
last fall when it was selling for roughly four times free cash flow, which is
the cash a company generates less the capital it needs to run its business. Like
most of the companies that find their way into the Fund, there was plenty of
skepticism surrounding Station Casinos and its outlook. As a result, its stock
was attractively valued on a free cash flow basis. A lawsuit resulting from a
stalled merger, significant debt, and a general (and certainly legitimate)
concern about the increasing number of hotel rooms in Las Vegas in 1998 and
1999, all contributed to a depressed stock price. What wasn't well understood by
Wall Street was that because Station Casinos primarily serves the local
residents of Las Vegas rather than out-of-town visitors, room growth on the
strip doesn't negatively affect it. In addition, because Las Vegas is one of the
fastest-growing cities in the country, local population growth works in Station
Casinos' favor.
Also key to this investment was the fact that as Station Casinos' spending on
capacity expansion began to subside, substantial free cash flow was being freed
up to pay down its debt load. As investors have come to recognize this, they
have rewarded the company with a more respectable price that is the equivalent
of eight times free cash flow.
The second investment I'd like to highlight, Apple Computer, has actually been
in the Fund for the past year, but became a more meaningful position during the
market turmoil last fall. Apple's iMac personal computer has been extremely
successful, and we expect new product introductions later this year to follow
suit. The company's return on invested capital is accelerating, as is free cash
flow. And like Station Casinos, these changes taking place were not
well-recognized, providing us the opportunity to get into the stock before the
revaluation by Wall Street took place.
(continued on next page)
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 99.2% 98.6%
Foreign 14.3% 4.2%
Top 10 Equities (% of Assets) 52.7% 61.2%
Number of Stocks 43 36
Cash, Cash Equivalents &
Fixed-Income Securities 0.8% 1.4%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Cable Television 19.4% 21.9%
Multimedia 11.3% 13.6%
Automotive - Truck
Parts and Equipment 10.0% 10.3%
Television 5.8% 5.1%
Recreational Centers 4.7% 4.6%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Time Warner, Inc. 7.9% 9.0%
Federal-Mogul Corp. 6.9% 10.3%
Comcast Corp. - Special Class A 6.5% 6.1%
TCA Cable TV, Inc. 5.0% 3.8%
Bally Total Fitness Holding Corp. 4.7% 4.6%
Apple Computer, Inc. 4.7% 3.6%
Chancellor Media Corp. 4.4% 6.7%
SBS Broadcasting S.A. 4.3% 3.8%
Tyco International, Ltd. 4.3% 2.9%
Allergan, Inc. 4.0% 1.8%
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
Past performance does not guarantee future results. Investing in special
situation companies may entail greater risk.
Janus Equity Funds / April 30, 1999 45
<PAGE>
While overall performance in the Fund was solid, some holdings did not meet our
expectations. In particular, Federal-Mogul, one of our long-term and
extraordinarily profitable investments, declined as investors questioned the
company's ability to digest recent acquisitions. I have great confidence in CEO
Dick Snell's management team and believe we are now beginning to see the results
of this leadership. It therefore remains one of our largest positions.
In closing, I would like to thank you for your continued support of the Fund.
While I typically refrain from making projections about the market, I will say
that despite a modest pullback in April of some of the more highly valued large-
cap technology and Internet stocks, there is not a lot of room for error. As we
saw last fall, minor changes in perception can create significant volatility in
a highly valued market. Although certainly not immune from volatility, this
Fund's goal is to find unique and misunderstood companies that generate
substantial free cash flow. These companies, we believe, will create significant
value over time, while also providing a measure of safety in a difficult market.
Thank you again for your investment in Janus Special Situations Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Special Situations Fund and the S&P 500 Index. Janus Special
Situations Fund is represented by a shaded area of green. The S&P 500 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 31, 1996, through April 30, 1999. The lower right quadrant reflects
the ending value of the hypothetical investment in Janus Special Situations Fund
at $21,571 as compared to the S&P 500 Index at $18,700.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 23.79%
Since 12/31/96*, 39.11%
JANUS SPECIAL SITUATIONS FUND - $21,571
S&P 500 Index - $18,700
* The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 96.5%
Automotive - Truck Parts and Equipment - 10.0%
2,030,635 Exide Corp.(#)...............................$ 25,256,023
1,562,220 Federal-Mogul Corp.............................68,542,403
250,000 Tower Automotive, Inc.*.........................5,750,000
99,548,426
Broadcast Services and Programming - 4.6%
402,625 AT&T Corp./Liberty Media Group - Class A*......25,717,672
294,110 Clear Channel Communications, Inc.*............20,440,645
46,158,317
Cable Television - 19.4%
295,445 Adelphia Communications Corp. - Class A*.......20,164,121
107,325 Cablevision Systems Corp.*......................8,304,272
986,360 Comcast Corp. - Special Class A................64,791,523
270,000 MediaOne Group, Inc.*..........................22,021,875
1,533,780 Rogers Communications, Inc.*...................28,662,514
992,160 TCA Cable TV, Inc..............................49,421,970
193,366,275
Casino Hotels - 3.5%
1,250,000 Park Place Entertainment Corp.*................13,515,625
1,305,000 Station Casinos, Inc.*.........................21,450,937
34,966,562
Cellular Telecommunications - 1.9%
8,054,000 China Telecom, Ltd.*..........................$18,393,817
Chemicals - Specialty - 3.2%
1,117,735 Cytec Industries, Inc.*........................31,785,589
Circuits - 1.9%
100,000 Linear Technology Corp..........................5,687,500
240,000 Maxim Integrated Products, Inc.*...............13,440,000
19,127,500
Computers - Micro - 4.7%
1,009,180 Apple Computer, Inc.*..........................46,422,280
Consumer Products - 1.4%
824,200 Playtex Products, Inc.*........................13,599,300
Diversified Operations - 4.3%
521,283 Tyco International, Ltd........................42,354,244
Gambling - Non-Hotel Casinos - 0.1%
148,510 Isle of Capri Casinos, Inc.*......................993,161
Human Resources - 0.3%
276,423 Capita Group PLC**..............................2,919,650
Internet Software - 2.0%
135,000 Excite, Inc.*..................................19,710,000
Medical - Drugs - 0.3%
50,000 Pharmacia & Upjohn, Inc.........................2,800,000
</TABLE>
See Notes to Schedules of Investments.
46 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Special Situations Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Multimedia - 9.8%
165,000 Shaw Communications, Inc. - Class B...........$ 6,798,017
1,119,730 Time Warner, Inc...............................78,381,100
305,720 Viacom, Inc. - Class B*........................12,496,305
97,675,422
Music/Clubs - 1.9%
305,000 SFX Entertainment, Inc. - Class A*.............18,833,750
Oil Companies - Exploration and Production - 0.5%
1,653,075 Magnum Hunter Resources, Inc.*(,)(#)............5,269,177
Optical Supplies - 4.0%
447,980 Allergan, Inc..................................40,262,202
Pipelines - 2.3%
310,000 Enron Corp.....................................23,327,500
Printing - Commercial - 2.8%
432,600 Valassis Communications, Inc.*.................24,225,600
127,800 World Color Press, Inc.*........................3,266,887
27,492,487
Publishing - Periodicals - 2.6%
800,000 Playboy Enterprises, Inc.*.....................25,750,000
Radio - 4.4%
801,595 Chancellor Media Corp.*........................43,987,526
Real Estate Investment Trusts - 0%
100,000 Property Capital Trust.............................24,500
Recreational Centers - 4.7%
1,942,600 Bally Total Fitness Holding Corp.*(,)(#).......47,108,050
Retail - Restaurants - 0.1%
50,000 Foodmaker, Inc.*................................1,206,250
Television - 5.8%
60,000 Central European Media Enterprises, Ltd.
- Class A*.......................................491,250
1,347,500 SBS Broadcasting S.A.*(,)(#)...................42,446,250
250,000 Univision Communications, Inc. - Class A*......14,468,750
57,406,250
- -----------------------------------------------------------------------
Total Common Stock (cost $755,649,599)......................960,488,235
- -----------------------------------------------------------------------
Corporate Bonds - 0.5%
Casino Hotels - 0.3%
$3,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04.........3,172,500
Internet Software - 0.2%
2,000,000 MindSpring Enterprises, Inc., 5.00%
convertible subordinated notes, due 4/15/06....2,127,500
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $5,304,290).......................5,300,000
- -----------------------------------------------------------------------
Preferred Stock - 1.2%
97,000 Houston Industries, Inc., convertible, 7.00%
(cost $7,474,820)...........................$ 11,446,000
- -----------------------------------------------------------------------
Warrants - 1.5%
1,027,000 Viacom, Inc. - expires 7/7/99*
(cost $22,960,221)............................14,378,000
- -----------------------------------------------------------------------
Short-Term Corporate Note - 0.4%
Household Finance Corp.
$4,100,000 4.88%, 5/3/99 (amortized cost $4,098,888).......4,098,888
- -----------------------------------------------------------------------
Total Investments (total cost $795,487,818) - 100.1%........995,711,123
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.1%)..............................................(885,346)
- -----------------------------------------------------------------------
Net Assets - 100%..........................................$994,825,777
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- ---------------------------------------------------------------------
<S> <C> <C>
Bermuda 4.3% $ 42,845,494
Canada 3.6% 35,460,531
Hong Kong 1.8% 18,393,817
Luxembourg 4.3% 42,446,250
United Kingdom 0.3% 2,919,650
United States(++) 85.7% 853,645,381
- ---------------------------------------------------------------------
Total 100.0% $995,711,123
</TABLE>
(++)Includes Short-Term Securities (85.3% excluding Short-Term Securities)
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>
British Pound 5/13/99 1,000,000 $1,608,800 $40,990
British Pound 10/8/99 850,000 1,366,375 3,558
- ---------------------------------------------------------------------
Total $2,975,175 $44,548
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 47
<PAGE>
Janus Twenty Fund (closed to new investors)
[Scott W. Schoelzel Photo]
Scott Schoelzel
portfolio manager
I'd like to thank you for your continued commitment and confidence during what
has been a satisfying time for Janus Twenty Fund. For the six-month period ended
April 30, 1999, the Fund posted a gain of 50.52%, beating its comparative index,
the S&P 500, which returned 22.31%.(1) These results placed it in the top
quartile for the 12 months ended April 30, 1999, ranking it 8th out of 254
capital appreciation funds tracked by Lipper, Inc., a leading mutual fund rating
company.(2)
Before going into a discussion of the Fund's performance, I want to touch
briefly on its recent closing. Simply put, we closed the Fund because it was in
the best interests of our shareholders. With assets rapidly growing, we decided
to move proactively so we can protect our ability to seek out the best 20 to 30
business franchises in the world. I'm confident it was the right thing to do and
the right time to do it.
In our ongoing search for these top-tier companies, we'll stick with the
successful strategy that has guided the Fund's outstanding performance in the
past. Our focus is on brand-name companies with great business models, dominant
franchises and exceptional management. In other words, companies that are
providing more and more of the goods and services you and I use in our everyday
lives. Some of the areas we're concentrating on include telecommunications (in
particular, wireless communications), as well as cable, pharmaceuticals,
technology, financial services, media and retailing.
Without a doubt, the Internet is playing an increasingly significant role in our
everyday lives. Transforming the way people work, the way we buy things, the way
we entertain ourselves, the way business is being done - the Internet phenomenon
is nothing short of a revolution. Of course, in this rapidly changing
technological landscape, our emphasis on brand-name companies is particularly
important. That's because as time becomes a more valued commodity in our
fast-paced lives, consumers turn to the brands they know and trust.
Companies like America Online (AOL) and Microsoft, two of the Fund's top
holdings, certainly are proof of this. AOL, what I consider to be the first real
franchise in cyberspace, gained an incredible 353% over the past six months. And
despite the negative publicity surrounding the government's antitrust litigation
against Microsoft, its stock price has in fact doubled since the day the trial
started. Both of these dynamic companies have been excellent long-term
performers for us, adding substantially to the Fund's returns.
One of our favorite plays in the telecommunications arena, and one of the
largest holdings in the Fund, is Nokia, the Finnish leader in the cellular phone
equipment industry. Nokia's stock price has increased 65% during the past six
months. And with the number of cellular phone subscribers expected to more than
double in the next couple of years, we believe Nokia is poised to capitalize on
this incredible growth and further solidify its leadership position.
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ------------------------------------------------------------
<S> <C> <C>
Equities 78.8% 81.1%
Foreign 4.9% 7.0%
Top 20 Equities (% of Assets) 70.0% 79.1%
Top 10 Equities (% of Assets) 52.8% 59.6%
Number of Stocks 33 23
Cash, Cash Equivalents &
Fixed-Income Securities 21.2% 18.9%
- ------------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ------------------------------------------------------------
Internet Software 17.7% 7.4%
Computers - Micro 7.9% 11.4%
Medical - Drugs 6.1% 15.2%
Telecommunication Equipment 5.8% 7.0%
Computer Software 5.2% 9.3%
- ------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
America Online, Inc. 14.8% 7.4%
Microsoft Corp. 5.2% 7.3%
Cisco Systems, Inc. 5.1% 4.8%
Nokia Oyj (ADR) - Class A 4.9% 5.1%
Time Warner, Inc. 4.9% 5.8%
Dell Computer Corp. 4.8% 10.7%
MCI WorldCom, Inc. 3.8% 3.5%
American International Group, Inc. 3.3% 2.5%
Sun Microsystems, Inc. 3.1% --
Pfizer, Inc. 2.9% 5.6%
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A capital appreciation fund is defined by Lipper as one that "aims at
maximum capital appreciation, frequently by means of 100% or more portfolio
turnover, leveraging, purchasing unregistered securities, purchasing
options, etc. The fund may take large cash positions." As of April 30, 1999,
Janus Twenty Fund ranked 3/100 for the 5-year period, and 1/54 funds for the
10-year period. This ranking is based on total return, including
reinvestment of dividends and capital gains for the stated period.
Past performance does not guarantee future results.
48 Janus Equity Funds / April 30, 1999
<PAGE>
Despite the Fund's strong performance, a few stocks failed to meet our high
expectations. SAP, the German-based developer of business software systems, fell
on concerns over a potential Y2K-related slowdown in corporate software spending
and an overall weakening of the European economy. As a result, we sold our
position earlier this year at a loss. Some of our financial services holdings
were a disappointment as well, in particular, U.S. Bancorp. Although a
consistent performer for us, a couple of strategic missteps caused the stock to
stumble and we liquidated our position. And while one of our pharmaceutical
companies, Eli Lilly, declined on speculation surrounding potential regulatory
initiatives and increased competition, we remain optimistic on the long-term
prospects and, in fact, have increased our position in this firm.
Recently, it appears as though investors are beginning to weigh the risks of an
overheating economy, which has created some volatility in the markets. I believe
this volatility should be viewed as the rule, not the exception. But you can
rest assured that no matter what the market is doing, we'll continue to do what
we do best: stay focused on individual companies. With the invaluable efforts of
our terrific group of research analysts, I'm confident we will prevail. So
confident, in fact, that 100% of my own money is invested in the Fund alongside
yours.
Thank you for your continued investment in Janus Twenty Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Twenty Fund and the S&P 500 Index. Janus Twenty Fund is represented by
a shaded area of green. The S&P 500 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, April 30, 1985, through April 30, 1999. The
lower right quadrant reflects the ending value of the hypothetical investment in
Janus Twenty Fund at $161,170 as compared to the S&P 500 Index at $110,925.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 66.74%
Five Year, 35.68%
Ten Year, 25.96%
Since 4/30/85*, 21.96%
JANUS TWENTY FUND - $161,170
S&P 500 Index - $110,925
* The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 78.8%
Applications Software - 0.5%
1,631,377 Intuit, Inc.*...............................$ 140,502,344
Broadcast Services and Programming - 0.1%
250,000 AT&T Corp./Liberty Media Group - Class A*......15,968,750
Cable Television - 0.4%
1,501,500 Comcast Corp. - Special Class A................98,629,781
Computer Software - 5.2%
16,836,970 Microsoft Corp.*............................1,369,056,123
Computers - Memory Devices - 1.9%
4,686,650 EMC Corp.*....................................510,551,934
Computers - Micro - 7.9%
30,874,002 Dell Computer Corp.*........................1,271,622,957
13,579,845 Sun Microsystems, Inc.*.......................812,244,479
2,083,867,436
Diversified Operations - 2.8%
7,041,960 General Electric Co. .........................742,926,780
Finance - Credit Card - 1.2%
2,350,000 American Express Co. .........................307,115,625
Finance - Mortgage Loan Banker - 1.4%
5,100,445 Fannie Mae....................................361,812,817
Internet Content - 0.5%
840,470 At Home Corp. - Class A*....................$ 120,975,151
Internet Software - 17.7%
27,290,040 America Online, Inc.*.......................3,895,653,210
3,236,785 Excite, Inc.*(,)(#)...........................472,570,610
1,690,000 Yahoo!, Inc.*.................................295,221,875
4,663,445,695
Medical - Biomedical and Genetic - 0.4%
1,663,700 Amgen, Inc.*..................................102,213,569
Medical - Drugs - 6.1%
6,164,770 Eli Lilly and Co. ............................453,881,191
6,546,015 Pfizer, Inc. .................................753,200,851
5,796,895 Warner-Lambert Co. ...........................393,826,554
1,600,908,596
Multi-Line Insurance - 3.3%
7,392,220 American International Group, Inc. ...........868,123,836
Multimedia - 4.9%
18,325,848 Time Warner, Inc. ..........................1,282,809,360
Networking Products - 5.1%
11,744,610 Cisco Systems, Inc.*........................1,339,619,578
Retail - Apparel and Shoes - 0.7%
2,857,500 Gap, Inc. ....................................190,202,344
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 49
<PAGE>
Janus Twenty Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Retail - Building Products - 1.7%
7,460,170 Home Depot, Inc. ..........................$ 447,143,939
Retail - Discount - 1.8%
3,096,060 Costco Companies, Inc.*.......................250,587,356
4,935,140 Wal-Mart Stores, Inc. ........................227,016,440
477,603,796
Retail Internet - 2.5%
2,299,400 Amazon.com, Inc.*.............................395,640,513
1,240,625 eBay, Inc.*...................................258,205,078
653,845,591
Telecommunication Equipment - 5.8%
3,624,350 Lucent Technologies, Inc......................217,914,044
17,507,620 Nokia Oyj (ADR) - Class A...................1,298,846,559
1,516,760,603
Telecommunication Services - 2.7%
4,382,200 Level 3 Communications, Inc.*.................394,671,888
3,820,000 Qwest Communications International, Inc.*.....326,371,250
721,043,138
Telephone - Long Distance - 4.2%
2,049,141 AT&T Corp.....................................103,481,621
12,090,225 MCI WorldCom, Inc.*...........................993,665,368
1,097,146,989
- -----------------------------------------------------------------------
Total Common Stock (cost $11,020,210,184)................20,712,273,775
- -----------------------------------------------------------------------
Corporate Bonds - 1.7%
Cable Television - 0.7%
$191,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09.............195,775,000
Food - Retail - 0.3%
Fred Meyer, Inc.:
40,000,000 7.375%, company guaranteed notes,
due 3/1/05....................................41,250,000
25,000,000 7.45%, company guaranteed notes,
due 3/1/08....................................26,187,500
67,437,500
Telecommunication Services - 0.7%
190,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08.....................193,800,000
- -----------------------------------------------------------------------
Total Corporate Bonds (cost $444,617,388)...................457,012,500
- -----------------------------------------------------------------------
U.S. Government Obligation - 2.0%
$500,000,000 U.S. Treasury Note, 6.125%
due 11/15/27 (cost $538,503,363)...........$ 517,220,000
- -----------------------------------------------------------------------
Money Market - 2.2%
257,500,000 Janus Government Money Market Fund, 4.79%.....257,500,000
315,200,000 Janus Money Market Fund, 4.92%................315,200,000
- -----------------------------------------------------------------------
Total Money Market (cost $572,700,000)......................572,700,000
- -----------------------------------------------------------------------
Short-Term Corporate Notes - 4.9%
Associates Corp. N.A.
200,000,000 4.92%, 5/3/99.................................199,945,333
Ford Motor Credit Corp.
400,000,000 4.95%, 5/3/99.................................399,890,889
IBM Credit Corp.
50,000,000 4.80%, 6/18/99.................................49,680,000
JP Morgan Securities:
100,000,000 4.83%, 7/19/99.................................98,981,000
100,000,000 4.83%, 8/19/99.................................98,575,000
Norwest Financial Corp.
100,000,000 4.82%, 5/13/99.................................99,839,333
UBS Financial, Inc.:
100,000,000 4.78%, 6/8/99..................................99,495,444
100,000,000 4.78%, 6/11/99.................................99,455,611
100,000,000 4.78%, 7/6/99..................................99,114,000
50,000,000 4.83%, 8/10/99.................................49,346,500
- -----------------------------------------------------------------------
Total Short-Term Corporate Notes
(cost $1,294,216,986)....................................1,294,323,110
- -----------------------------------------------------------------------
Time Deposits - 1.9%
SouthTrust Bank EDT
112,400,000 5.00%, 5/3/99.................................112,400,000
Sun Trust Bank EDT
375,000,000 5.00%, 5/3/99.................................375,000,000
- -----------------------------------------------------------------------
Total Time Deposits (cost $487,400,000).....................487,400,000
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
50 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS (UNAUDITED)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
U.S. Government Agencies - 7.8%
Fannie Mae:
$100,000,000 4.67%, 5/5/99..............................$ 99,948,111
50,000,000 4.70%, 6/14/99.................................49,712,778
100,000,000 4.70%, 6/16/99.................................99,399,444
100,000,000 4.75%, 6/17/99.................................99,383,778
50,00,000 4.69%, 7/19/99.................................49,501,500
100,000,000 4.71%, 7/20/99.................................98,990,000
100,000,000 4.74%, 8/10/99.................................98,715,000
110,000,000 4.73%, 8/16/99................................108,500,700
100,000,000 4.70%, 8/18/99.................................98,611,000
100,000,000 4.70%, 9/1/99..................................98,430,000
100,000,000 4.65%, 9/17/99.................................98,222,000
100,000,000 4.67%, 10/15/99................................97,859,000
75,000,000 4.66%, 10/25/99................................73,296,750
100,000,000 4.68%, 11/4/99.................................97,600,000
100,000,000 4.65%, 12/21/99................................96,990,000
75,000,000 4.69%, 2/7/00..................................72,275,250
100,000,000 4.67%, 4/5/00..................................95,615,000
Federal Home Loan Bank Systems:
75,000,000 4.67%, 10/25/99................................73,282,500
100,000,000 4.70%, 1/21/00.................................96,559,000
50,000,000 4.71%, 4/17/00.................................47,710,000
Freddie Mac:
100,000,000 4.77%, 5/18/99.................................99,774,750
50,000,000 4.69%, 6/11/99.................................49,732,931
50,000,000 4.71%, 7/16/99.................................49,521,000
100,000,000 4.71%, 8/26/99.................................98,508,000
- -----------------------------------------------------------------------
Total U.S. Government Agencies (cost $2,047,687,435)......2,048,138,492
- -----------------------------------------------------------------------
Total Investments (total cost $16,405,335,356) - 99.3%...26,089,067,877
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 0.7%.........................................178,441,372
- -----------------------------------------------------------------------
Net Assets 100%.........................................$26,267,509,249
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
Finland 5.0% $ 1,298,846,559
United States(++) 95.0% 24,790,221,318
- ------------------------------------------------------------------------
Total 100.0% $26,089,067,877
</TABLE>
(++)Includes Short-Term Securities (80.3% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 51
<PAGE>
Janus Venture Fund (closed to new investors)
[James Craig Photo]
James Craig
portfolio manager
[William H. Bales Photo]
William Bales
portfolio manager
[Jonathan Coleman Photo]
Jonathan Coleman
portfolio manager
Janus Venture Fund gained impressively, appreciating 46.47% for the six-months
ended April 30, 1999. By comparison, the Russell 2000 Index returned 15.16%.(1)
These results earned the Fund a top-quartile rating for the 12 months ended
April 30, 1999, placing it 5th out of 676 small-company growth funds tracked by
Lipper, Inc., a leading mutual fund rating company.(2)
Given that the general market for small- and mid-cap stocks remained mostly
sluggish during the period compared to indexes like the S&P 500 and even the
NASDAQ Composite, we're especially pleased with the Fund's results. And while
small caps gave some indication of improved relative performance near the end of
the period, it's not yet clear whether this will be a temporary blip or the
beginning of a genuine trend.
Regardless of the macro environment affecting the small-cap market, we continued
to focus on individual companies in areas of the economy with the highest
potential for substantial, sustained growth. For the most part, these included
technology, telecommunications and cable. Within the technology group, an area
that has received significant investor interest over the last six months has
been the Internet. While we can say with reasonable assurance that Internet
usage will continue to grow dramatically, we are less certain exactly what form
that growth will take. Accordingly, we have favored infrastructure plays - or
companies that provide the services needed to facilitate traffic growth on the
Internet.
Globix, a company that specializes in "Web hosting," was a big winner for us. As
more and more businesses move toward establishing a Web presence, many lack the
expertise or resources to develop and maintain a site in-house. Globix provides
companies needing these services with a value-added, outsourced solution,
allowing them to utilize the Internet to implement their business strategies.
The ongoing move in the cable industry toward broadband technology also
presented numerous opportunities for the Fund. Broadband provides traditional
cable companies with the ability to offer a wider array of subscriber services,
such as cable telephony, high-speed Internet access and video-on-demand. Our
largest holding at the end of the period, TCA Cable TV, which primarily serves
college towns in the Southwest, saw its stock rise as investors continued to
anticipate the rollout of these expanded services. Another company capitalizing
on the growth of bandwidth technology, SDL, Inc., also made a positive
contribution to performance. SDL manufactures dense wave division multiplexing
(DWDM) lasers, which split existing fiber-optic cable into many strands. By
utilizing this technology, telecommunications companies can increase
transmission capacity by 60-fold, saving the time and money needed to lay new
fiber-optic lines.
We also saw nice gains in some of our entertainment stocks, notably SFX
Entertainment. After embarking on an aggressive consolidation strategy 12 months
ago, SFX now owns most of the major outdoor amphitheaters in the U.S. The
company is poised to drive incremental revenue through a fixed asset base,
dramatically improving its
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ----------------------------------------------------------
<S> <C> <C>
Equities 98.1% 90.0%
Foreign 6.2% 2.7%
Europe 1.5% 2.7%
Top 10 Equities (% of Assets) 27.0% 26.0%
Number of Stocks 112 94
Cash & Cash Equivalents 1.9% 10.0%
- ----------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ----------------------------------------------------------
Internet Software 10.4% 0.4%
Internet Content 8.4% 0.2%
Computer Services 6.5% 3.3%
Electronic Components -
Semiconductors 6.3% 1.6%
Cable Television 4.6% 5.1%
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- ---------------------------------------------------------------------
<S> <C> <C>
TCA Cable TV, Inc. 3.3% 2.7%
VerticalNet, Inc. 3.1% --
Verio, Inc. 3.0% --
Concentric Network Corp. 2.7% --
Exodus Communications, Inc. 2.6% --
Globix Corp. 2.6% --
DoubleClick, Inc. 2.6% --
SFX Entertainment, Inc. - Class A 2.4% 1.4%
GeoTel Communications Corp. 2.4% 1.5%
SDL, Inc. 2.3% 0.2%
- ---------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A small-cap fund is defined by Lipper, Inc. as "a fund that by prospectus or
portfolio practice invests primarily in companies with market
capitalizations less than $1 billion at the time of purchase." As of April
30, 1999, Janus Venture Fund ranked 23/134 for the 5-year period and 4/73
for the 10-year period. The ranking is based on total return, including
reinvestment of dividends and capital gains for the stated period.
Past performance does not guarantee future results.
52 Janus Equity Funds / April 30, 1999
<PAGE>
returns. To that end, SFX has negotiated ticketing contracts on more favorable
terms, signed sponsorship deals with major advertisers, and formed its own
merchandising company to control T-shirt sales at concerts. Moreover, when the
stock dipped last fall, the CEO purchased a substantial number of shares on the
open market, which gave us confidence that the business was being undervalued.
One weak spot for the Fund was its software holdings. Several underperformed on
fears that earnings would suffer if customers postponed major software
implementations until Year 2000 issues sorted themselves out. One example was
Wind River Systems, which performed poorly despite the company's ability to meet
its earnings forecasts. The stock also fell victim to the generally weak market
for small-cap stocks, and we liquidated the position at a loss.
Going forward, our process for determining attractiveness of an investment will
remain unchanged, regardless of the overall environment for small-cap
securities. There are always compelling opportunities in dynamic, fast-growing
companies. Our job is to find them on a stock-by-stock basis by carefully
evaluating the growth prospects, quality of management and sustainability of the
business models. We continue to be upbeat about opportunities we see and intent
upon delivering benchmark-beating results for our shareholders.
We thank you for your investment in Janus Venture Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Venture Fund and the Russell 2000 Index. Janus Venture Fund is
represented by a shaded area of green. The Russell 2000 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, April 30, 1985, through
April 30, 1999. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Venture Fund at $99,893 as compared to the
Russell 2000 Index at $48,768.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 31.46%
Five Year, 19.53%
Ten Year, 17.29%
Since 4/30/85*, 17.87%
JANUS VENTURE FUND - $99,893
Russell 2000 Index - $48,768
* 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
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>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 98.1%
Advertising Services - 3.9%
699,380 Lamar Advertising Co. - Class A*..............$23,516,652
363,637 Penton Media, Inc. .............................8,636,379
339,290 TMP Worldwide, Inc.*...........................22,817,252
54,970,283
Applications Software - 0.7%
150,240 New Era of Networks, Inc.*......................5,643,390
68,690 WebTrends Corp.*................................3,649,156
9,292,546
Beverages - Non-Alcoholic - 0%
2,212 Buenos Aires Embotelladora S.A..........................0
Broadcast Services and Programming - 0.9%
801,520 ACTV, Inc.*....................................12,724,130
Cable Television - 4.6%
380,022 Cogeco Cable, Inc.**............................7,697,998
760,044 Moffat Communications, Ltd.**..................10,177,015
923,950 TCA Cable TV, Inc..............................46,024,259
63,899,272
Cellular Telecommunications - 1.2%
333,175 WinStar Communications, Inc.*..................16,200,634
Circuits - 0.5%
500,000 SIPEX Corp.*..................................$ 7,000,000
Collectibles - 0.7%
271,825 Action Performance Companies, Inc.*.............9,208,072
Commercial Banks - 1.3%
69,440 Carolina First Corp.............................1,874,880
432,400 Investors Financial Services Corp. ............15,728,550
17,603,430
Commercial Services - 1.3%
297,900 Central Parking Corp............................9,439,706
121,725 Intraware, Inc.*................................3,727,828
150,000 NCO Group, Inc.*................................4,893,750
18,061,284
Communications Software - 0.6%
199,310 Razorfish, Inc.*................................8,669,985
Computer Data Security - 1.0%
247,975 Check Point Software Technologies, Ltd.*........8,741,119
100,345 ISS Group, Inc.*................................5,324,557
14,065,676
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 53
<PAGE>
Janus Venture Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Computer Graphics - 1.0%
500,000 Engineering Animation, Inc.*(,)(#)............$ 7,437,500
330,265 NVIDIA Corp.*...................................6,027,336
13,464,836
Computer Services - 6.5%
402,390 Checkfree Holding Corp.*.......................19,314,720
391,900 CIBER, Inc.*....................................7,397,113
226,405 Ecsoft Group PLC (ADR)*.........................3,933,787
774,685 Globix Corp.*(,)(#)............................36,313,358
193,235 Safeguard Scientifics, Inc.*...................15,652,035
423,925 Sykes Enterprises, Inc.*........................8,690,463
91,301,476
Computer Software - 1.1%
375,445 Brio Technology, Inc.*..........................5,256,230
361,195 Informatica Corp.*.............................10,203,759
15,459,989
Computers - Integrated Systems - 1.1%
112,515 Catapult Communications Corp.*..................1,751,015
256,425 Extreme Networks, Inc.*........................14,215,561
15,966,576
Consulting Services - 0.8%
166,050 Charles River Associates, Inc.*.................3,653,100
261,990 Professional Detailing, Inc.*...................7,532,213
11,185,313
Distribution and Wholesale - 1.7%
260,295 Aviation Sales Co.*............................10,411,800
471,067 Insight Enterprises, Inc.*.....................12,718,809
23,130,609
Drug Delivery Systems - 0.2%
79,910 Alkermes, Inc.*.................................2,137,593
Electric - Integrated - 0.2%
158,800 Avista Corp.....................................2,382,000
Electronic Components - Semiconductors - 6.3%
617,500 Alpha Industries, Inc.*........................21,766,875
675,000 ATMI, Inc.*....................................15,525,000
308,990 Galileo Technology, Ltd.*.......................7,106,770
121,410 hi/fn, Inc.*....................................6,556,140
300,000 SDL, Inc.*.....................................32,775,000
418,695 Zoran Corp.*....................................4,527,140
88,256,925
Electronic Safety Devices - 1.2%
642,774 Pittway Corp. - Class A........................16,953,164
Finance - Mortgage Loan Banker - 0.4%
310,895 Doral Financial Corp. ..........................5,479,524
Finance - Investment Bankers/Brokers - 0.6%
57,935 Knight/Trimark Group, Inc. - Class A*...........8,874,918
Food - Retail - 1.1%
384,090 Whole Foods Market, Inc.*......................14,979,510
Instruments - Controls - 0.5%
254,800 Mettler-Toledo International, Inc.*.............6,656,650
Instruments - Scientific - 1.2%
406,100 Dionex Corp.*................................$ 16,650,100
Insurance Brokers - 0.6%
151,550 E.W. Blanch Holdings, Inc.......................8,922,506
Internet Content - 8.4%
78,265 Critical Path, Inc.*............................7,787,368
258,640 DoubleClick, Inc.*.............................36,161,105
58,925 iVillage, Inc.*.................................4,655,075
187,565 Launch Media, Inc.*.............................4,736,016
316,285 Mediconsult.com, Inc.*..........................3,775,652
238,380 NetGravity, Inc.*...............................9,639,491
376,435 VerticalNet, Inc.*.............................42,725,372
106,605 Xoom.com, Inc.*.................................7,462,350
116,942,429
Internet Software - 10.4%
125,005 AppliedTheory Corp.*............................2,562,603
445,445 Concentric Network Corp.*......................37,194,657
404,610 Exodus Communications, Inc.*...................36,465,476
20,370 Net Perceptions, Inc.*............................537,259
201,370 pcOrder.com, Inc. - Class A*(,)(#).............12,447,183
141,830 Prodigy Communications Corp.*...................3,811,681
267,050 SoftNet Systems, Inc.*..........................8,712,506
586,925 Verio, Inc.*...................................41,671,675
24,055 Vignette Corp.*.................................2,285,225
145,688,265
Life and Health Insurance - 0.6%
348,435 StanCorp Financial Group, Inc.*.................8,384,217
Medical - Biomedical and Genetic - 2.3%
1,952,500 Enzon, Inc.*(,)(#).............................25,382,500
100,000 QIAGEN N.V.*....................................7,325,000
32,707,500
Medical - Drugs - 1.4%
420,245 ChiRex, Inc.*..................................10,926,370
163,500 MedImmune, Inc.*................................9,012,938
19,939,308
Medical - Outpatient and Home Medical Care - 0.8%
738,240 Apria Healthcare Group, Inc.*..................11,535,000
Medical Information Systems - 0.2%
115,225 InfoCure Corp.*.................................3,031,858
Medical Laser Systems - 0.4%
122,315 Laser Vision Centers, Inc.*.....................5,152,519
Medical Products - 1.3%
465,080 Henry Schein, Inc.*............................12,179,283
150,000 Osteotech, Inc.*................................5,418,750
17,598,033
Motorcycle and Motor Scooter Manufacturing - 0.2%
794,517 Ducati Motor Holding S.p.A.*....................2,367,864
Music/Clubs - 2.4%
550,000 SFX Entertainment, Inc. - Class A*.............33,962,500
Network Software - 0.1%
30,790 Marimba, Inc.*..................................1,870,493
</TABLE>
See Notes to Schedules of Investments.
54 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Pharmacy Services - 0.4%
279,775 Accredo Health, Inc.*.........................$ 6,190,022
Printing - Commercial - 1.9%
469,225 Valassis Communications, Inc.*.................26,276,600
Professional Sports - 0.4%
200,000 Championship Auto Racing Teams, Inc.*...........6,162,500
Property and Casualty Insurance - 0.4%
218,550 Philadelphia Consolidated Holding Corp.*........5,395,453
Publishing - Periodicals - 1.5%
646,245 Playboy Enterprises, Inc.*.....................20,801,011
Radio - 2.4%
504,775 Citadel Communications Corp.*..................14,133,700
286,335 Cox Radio, Inc. - Class A*.....................13,958,831
157,160 Entercom Communications Corp.*..................5,834,565
33,927,096
Recreational Centers - 0.4%
250,000 Bally Total Fitness Holding Corp.*..............6,062,500
Rental Auto/Equipment - 1.3%
659,808 Rent-Way, Inc.*................................17,979,768
Resorts and Theme Parks - 1.7%
700,000 Premier Parks, Inc.*...........................24,193,750
Retail - Discount - 1.0%
398,760 Ames Department Stores, Inc.*..................13,931,678
Retail - Internet - 1.5%
695,145 Beyond.com Corp.*..............................20,463,331
Retail - Office Supplies - 1.3%
958,820 School Specialty, Inc.*(,)(#)..................18,097,728
Retail - Restaurants - 0.4%
194,730 P.F. Chang's China Bistro, Inc.*................4,916,933
Satellite Telecommunications - 1.1%
300,000 Gilat Satellite Networks, Ltd.*................15,600,000
Schools - 1.4%
242,365 Career Education Corp.*.........................8,119,228
164,130 Corinthian Colleges, Inc.*......................2,687,629
600,000 EduTrek International, Inc.*(,)(#)..............3,075,000
239,655 ITT Educational Services, Inc.*.................5,886,526
19,768,383
Telecommunication Equipment - 4.2%
400,675 Com21, Inc.*...................................12,471,009
600,000 GeoTel Communications Corp.*...................33,750,000
317,705 Terayon Communication Systems, Inc.*...........12,827,339
59,048,348
Telecommunication Services - 0.6%
704,065 Hyperion Telecommunications, Inc. - Class A*....8,800,813
Telephone - Long Distance - 2.3%
700,000 Viatel, Inc.*..................................32,200,000
Therapeutics - 1.0%
60,175 Abgenix, Inc.*....................................880,059
276,000 QLT PhotoTherapeutics, Inc.*...................12,609,750
13,489,809
Travel Services - 0.9%
258,035 Pegasus Systems, Inc.*......................$ 12,063,136
Wireless Equipment - 2.3%
320,470 Advanced Radio Telecom Corp.*...................4,246,228
180,580 DSP Communications, Inc.*.......................4,920,805
423,630 RF Micro Devices, Inc.*........................23,670,326
32,837,359
- -----------------------------------------------------------------------
Total Common Stock (cost $915,373,793)....................1,370,883,205
- -----------------------------------------------------------------------
Short-Term Corporate Note - 2.7%
CIT Group Holdings, Inc.
$38,100,000 4.90%, 5/3/99 (amortized cost $38,089,628).....38,089,628
- -----------------------------------------------------------------------
Total Investments (total cost $953,463,421) - 100.8%......1,408,972,833
- -----------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other
Assets - (0.8%)...........................................(11,709,608)
- -----------------------------------------------------------------------
Net Assets - 100%........................................$1,397,263,225
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
Bermuda 0.3% $ 3,775,652
Canada 2.1% 30,484,763
Israel 2.2% 31,447,889
Italy 0.2% 2,367,864
Netherlands 0.5% 7,325,000
Switzerland 0.5% 6,656,650
United Kingdom 0.3% 3,933,787
United States(++) 93.9% 1,322,981,228
- -----------------------------------------------------------------------
Total 100.0% $1,408,972,833
</TABLE>
(++)Includes Short-Term Securities (91.2% excluding Short-Term Securities)
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 25,000,000 $17,165,614 ($407,530)
- ---------------------------------------------------------------------
Total $17,165,614 ($407,530)
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 55
<PAGE>
Janus Worldwide Fund
[Helen Young Hayes Photo]
Helen Young Hayes
portfolio manager
I am pleased to report that Janus Worldwide Fund gained 24.17% for the six-month
period ended April 30, 1999, outperforming its benchmark, the Morgan Stanley
Capital International World Index, which rose 17.29%.(1) These results earned
the Fund top-quartile performance for the 12-month period ended April 30, 1999,
placing it 28th out of 229 global funds tracked by Lipper, Inc., a leading
mutual fund rating company.(2)
During the past six months, international equity markets gained support from
global interest rate cuts and easing recession fears. While U.S. equities led
the way, stocks in Asia and Latin America showed renewed strength amid signs
that the worst may be over for economies in those regions. Meanwhile, European
markets were volatile, struggling against slower economic growth and pressure on
the new euro currency. However, a recent European Central Bank interest rate cut
has brightened the Continent's economic outlook.
I attribute the Fund's solid performance to our ability to find companies that
can generate robust earnings in a variety of economic conditions. Another
contributing factor was our decision last year to increase the Fund's weighting
in U.S. stocks. We believe many U.S. businesses are currently ahead of their
international competitors in terms of corporate productivity and technological
innovation. Networking equipment provider Cisco Systems and telecommunications
powerhouse MCI WorldCom, for instance, are market-leading franchises that are
driving the changes creating value in their industries. During the period, both
continued to reward us with impressive performance.
Additionally, we have taken a number of the powerful growth trends at work in
the U.S. economy and followed them abroad, looking for ways to capitalize on
similar changes in other markets. An example is the Internet, which has changed
the face of the U.S. economy and is rapidly beginning to affect economies around
the world. Businesses like Britain's COLT Telecom and Netherlands-based Equant
are developing new systems that allow users to access Internet, voice and data
services over a single network. By incorporating the latest technology, these
companies gained an advantage over traditional telephone companies encumbered by
higher-cost, fixed-line equipment. As a result, COLT Telecom and Equant are able
to offer better-quality, lower-priced services. Both of these positions
contributed to our gains during the period.
The strategic value of cable franchises is another concept we followed globally.
Because cable firms have already extended high-capacity networks into consumers'
homes, they are increasingly being seen as a vital connection in the delivery of
broadband services. In addition to U.S. operators Comcast and MediaOne Group, we
are identifying exciting opportunities in other countries, such as Canada's
Rogers Communications and Shaw Communications, and Britain's NTL.
<TABLE>
<CAPTION>
Portfolio Profile April 30, 1999 October 31, 1998
- ------------------------------------------------------------
<S> <C> <C>
Equities 94.0% 85.6%
Foreign 62.0% 60.7%
European 45.7% 52.1%
Top 10 Equities (% of
Assets) 28.9% 24.4%
Number of Stocks 136 155
Cash & Cash Equivalents 6.0% 14.4%
- ------------------------------------------------------------
TOP 5 INDUSTRIES April 30, 1999 October 31, 1998
- ------------------------------------------------------------
Medical - Drugs 8.6% 9.6%
Diversified Operations 8.2% 10.1%
Telephone - Integrated 8.7% 4.4%
Cellular
Telecommunications 6.6% 1.9%
Telecommunication Equipment 5.0% 4.0%
- ------------------------------------------------------------
TOP 5 COUNTRIES April 30, 1999 October 31, 1998
- ------------------------------------------------------------
United States 37.5% 39.4%
United Kingdom 7.6% 10.2%
Japan 7.5% 6.7%
Netherlands 7.1% 5.9%
France 6.0% 9.1%
- ------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Equity Holdings April 30, 1999 October 31, 1998
- -----------------------------------------------------------------------
<S> <C> <C>
Cisco Systems, Inc. 4.9% 3.5%
Tyco International, Ltd. 4.0% 2.9%
Microsoft Corp. 3.1% 2.8%
NTT Mobile Communication Network,
Inc. 3.0% 2.0%
Mannesmann A.G. 2.9% 2.9%
Time Warner, Inc. 2.6% 2.1%
Nokia Oyj - Class A 2.4% 1.9%
Vivendi 2.1% 1.7%
AT&T Corp. 2.0% --
Telecom Italia S.p.A. 1.9% 1.4%
- -----------------------------------------------------------------------
</TABLE>
(1) Both returns include reinvested dividends.
(2) A global fund is defined by Lipper, Inc. as one that "invests at least 25%
of its portfolio in securities traded outside the United States and may own
U.S. securities as well." As of April 30, 1999, Janus Worldwide Fund was
ranked 4/83 for the 5-year period. This ranking is based on total return,
including reinvested dividends and capital gains for the stated period.
Past performance does not guarantee future results.
56 Janus Equity Funds / April 30, 1999
<PAGE>
While we were pleased with the Fund's overall performance, a few of our holdings
did not meet our expectations. Cap Gemini and Getronics, two European
information technology firms, fell on concerns over a potential Y2K-related
slowdown in corporate software spending. However, we remain confident about
their long-term prospects, fueled by growth in Internet use and e-commerce, and
therefore have maintained our positions in both companies.
Likewise, some of our more defensive stocks, such as European pharmaceutical
companies Elan and Roche Holding, were hindered by investors' recent rotation
into more economically sensitive companies. However, we remain positive on the
long-term fundamentals in this industry as new drug development techniques
should continue to accelerate growth.
Going forward, we are generally optimistic on the outlook for the global
economy. Modest inflation and low interest rates are expected to support
moderate but continued growth in the U.S. and Europe. Meanwhile, prospects for
Asia and emerging markets appear brighter than they did six months ago. Even so,
it is still essential to own companies that can generate strong results in any
kind of economic environment.
Thank you for your continued investment in Janus Worldwide Fund.
PERFORMANCE OVERVIEW
[GRAPH]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Worldwide Fund and the Morgan Stanley Capital International World
Index. Janus Worldwide Fund is represented by a shaded area of green. The
Morgan Stanley Capital International World 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 15, 1991, through April 30, 1999.
The lower right quadrant reflects the ending value of the hypothetical
investment in Janus Worldwide Fund at $45,580 as compared to the Morgan Stanley
Capital International World Index at $27,736.
Average Annual Total Return
for the periods ended April 30, 1999
One Year, 14.70%
Five Year, 20.47%
Since 5/15/91*, 20.98%
JANUS WORLDWIDE FUND - $45,580
Morgan Stanley Capital
International World
Index - $27,736
* The Fund's inception date.
Source - Lipper, Inc. 1999.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Common Stock - 92.3%
Advertising Agencies - 0%
210,256 WPP Group PLC**..............................$ 1,865,318
Airlines - 0.1%
1,185,585 SAS Sverige A.B...............................11,699,691
Applications Software - 0.4%
978,416 Intuit, Inc.*.................................84,266,078
Athletic Footwear - 0.3%
539,947 Adidas - Salomon A.G.**.......................53,239,483
Audio and Video Products - 0.2%
482,400 Sony Corp.**..................................45,062,830
Automotive - Cars and Light Trucks - 1.1%
744,976 DaimlerChrysler A.G.*(,)**....................73,652,649
393,881 DaimlerChrysler A.G. (ADR)*(,)**..............38,674,191
2,176,000 Honda Motor Co., Ltd.**.......................95,891,681
208,218,521
Automotive - Truck Parts and Equipment - 0.3%
648,810 Valeo S.A.**..................................54,912,891
Brewery - 1.0%
2,162,391 Heineken N.V.**..............................108,666,235
6,484,000 Kirin Brewery Co., Ltd.**..................$ 73,335,300
182,001,535
Broadcast Services and Programming - 1.2%
784,795 AT&T Corp./Liberty Media Group - Class
A* ..........................................50,128,781
1,856,510 Clear Channel Communications, Inc.*..........129,027,445
1,327,265 Grupo Televisa S.A. (GDR).....................54,417,865
233,574,091
Cable Television - 2.8%
4,153,895 Comcast Corp. - Special Class A..............272,858,978
2,174,715 MediaOne Group, Inc.*........................177,375,192
4,565,834 Rogers Communications, Inc. - Class B*........85,591,340
535,825,510
Cellular Telecommunications - 6.6%
2,337,210 AirTouch Communications, Inc.*...............218,236,984
73,800,000 China Telecom, Ltd.*.........................168,545,284
9,900 NTT Mobile Communication Network, Inc.**.....580,589,977
3,918,025 Orange PLC*(,)**..............................53,369,166
2,605,160 Sprint Corp./PCS Group*......................110,393,655
13,860,425 Telecom Italia Mobile S.p.A...................83,553,717
2,945,601 Vodafone Group PLC**..........................54,304,054
1,268,992,837
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 57
<PAGE>
Janus Worldwide Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Chemicals - Diversified - 0.1%
586,390 Hoechst A.G.**.............................$ 27,823,758
Commercial Banks - 1.1%
4,310,830 Argentaria, Caja Postal y Banco
Hipotecario de Espana, S.A.**...............101,520,288
899,506 Toronto-Dominion Bank.........................48,085,014
10,795,404 Unicredito Italiano S.p.A.**..................54,980,891
204,586,193
Commercial Services - 0.6%
2,195,065 Paychex, Inc.................................112,085,507
Computer Services - 2.7%
781,340 Atos S.A.*(,)**...............................66,956,364
1,098,416 Cap Gemini S.A.**............................168,152,047
4,432,587 Getronics N.V.**.............................182,186,032
7,847,449 Logica PLC**..................................75,811,066
790,545 WM-Data A.B. - Class B........................29,137,475
522,242,984
Computer Software - 3.1%
7,316,750 Microsoft Corp.*.............................594,943,234
Computers - Integrated Systems - 1.5%
857,888 ASM Lithography Holding N.V.*(,)**............35,911,631
185,695 ASM Lithography Holding N.V. (ADR)*(,)**.......7,242,105
744,079 Equant N.V.*(,)**.............................67,620,596
505,210 Equant N.V. - New York Shares*(,)**...........45,089,993
6,082,800 Fujitsu, Ltd.**..............................104,215,700
2,583,613 SEMA Group PLC**..............................25,021,650
285,101,675
Computers - Memory Devices - 0.3%
484,190 EMC Corp.*....................................52,746,448
Computers - Micro - 0.6%
2,025,855 Sun Microsystems, Inc.*......................121,171,452
Cosmetics and Toiletries - 0.4%
714,000 Estee Lauder Companies, Inc. - Class A........71,489,250
Distribution and Wholesale - 0.2%
262,800 Softbank Corp.**..............................34,985,296
Diversified Operations - 8.2%
19,636,305 Hays PLC**...................................218,469,425
32,277,694 Rentokil Initial PLC**.......................188,314,437
9,384,158 Tyco International, Ltd......................762,462,838
1,703,843 Vivendi**....................................398,552,100
1,567,798,800
Drug Delivery Systems - 0.4%
1,458,570 Elan Corp. PLC (ADR)*.........................75,116,355
Electronic Components - 1.6%
1,743,211 Koninklijke (Royal) Philips Electronics
N.V.**......................................150,305,320
1,738,350 Koninklijke (Royal) Philips Electronics N.V.
- New York Shares**.........................148,411,631
298,716,951
Electronic Components - SemiConductors - 0.1%
261,000 Tokyo Electron, Ltd.**........................14,869,135
Finance - Credit Card - 0.8%
1,162,200 American Express Co........................$ 151,885,012
Food - Catering - 0.7%
13,011,095 Compass Group PLC**..........................132,608,209
Food - Retail - 0.7%
83,032 Carrefour S.A.**..............................65,883,027
536,259 Koninklijke Ahold N.V.........................19,941,908
769,475 Kroger Co.*...................................41,792,111
127,617,046
Hotels and Motels - 0.1%
39,256 Accor S.A.**..................................10,361,995
Human Resources - 0.4%
17,438 Adecco S.A.**..................................8,808,043
5,962,404 Capita Group PLC**............................62,976,437
71,784,480
Internet Content - 0.5%
616,880 At Home Corp. - Class A*......................88,792,165
Internet Software - 0.7%
617,165 America Online, Inc.*.........................88,100,304
116,380 Excite, Inc.*.................................16,991,480
115,750 Yahoo!, Inc.*.................................20,220,078
125,311,862
Investment Companies - 0.2%
321,341 Ratin A/S - B Shares..........................55,398,632
Investment Management and Advisory Services - 0.3%
4,623,050 Amvescap PLC**................................49,276,452
Machinery - General Industrial - 2.9%
4,261,387 Mannesmann A.G.**............................561,740,587
Medical - Drugs - 8.6%
896,240 American Home Products Corp...................54,670,640
2,654,750 Bristol-Myers Squibb Co......................168,742,547
2,208,428 Glaxo Wellcome PLC**..........................65,355,415
918,465 Pfizer, Inc..................................105,680,879
4,417,310 Pharmacia & Upjohn, Inc......................247,369,360
204,329 Pharmacia & Upjohn, Inc.......................11,369,451
1,274,039 Rhone-Poulenc S.A.**..........................60,654,360
22,298 Roche Holding A.G.**.........................262,751,220
460,093 Sanofi S.A.**.................................72,186,097
431,460 Sepracor, Inc.*...............................36,458,370
7,039,824 SmithKline Beecham PLC**......................93,172,226
1,210,530 SmithKline Beecham PLC (ADR)**................79,516,689
5,896,000 Takeda Chemical Industries**.................256,366,416
2,038,814 Warner-Lambert Co............................138,511,926
1,652,805,596
Medical Instruments - 0.3%
918,335 Medtronic, Inc................................66,062,724
Metal Processors and Fabricators - 1.1%
4,760,051 Assa Abloy A.B. - Class B(#).................208,268,240
Money Center Banks - 3.5%
9,087,321 Banca Commerciale Italiana**..................75,123,543
56,674,239 Banca di Roma**...............................92,996,002
</TABLE>
See Notes to Schedules of Investments.
58 Janus Equity Funds / April 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Money Center Banks - (continued)
5,462,694 Banco Bilbao Vizcaya, S.A.*(,)**............$ 81,834,590
3,311,475 Banco Santander Central Hispano, S.A.**.......72,029,662
1,486,331 ING Groep N.V.**..............................91,674,991
4,961,101 Lloyds TSB Group PLC**........................79,918,635
505,563 UBS A.G.**...................................172,013,064
665,590,487
Mortgage Banks - 0.8%
1,777,707 Deutsche Pfandbriefbank A.G.**...............148,577,846
Multi-Line Insurance - 2.0%
1,783,380 Aegon N.V.**.................................171,221,111
1,961,819 Assicurazioni Generali**......................76,441,190
407,328 Axa**.........................................52,660,170
143,034 Zurich Allied A.G.**..........................89,628,071
389,950,542
Multimedia - 3.2%
560,458 Shaw Communications, Inc. - Class B...........23,090,928
7,205,265 Time Warner, Inc.............................504,368,550
2,119,060 Viacom, Inc. - Class B*.......................86,616,578
614,076,056
Networking Products - 4.9%
8,239,408 Cisco Systems, Inc.*.........................939,807,475
Oil Companies - Integrated - 0.6%
239,455 Elf Aquitaine S.A.**..........................37,239,859
1,732,925 YPF S.A. (ADR)................................72,782,850
110,022,709
Pipelines - 0.4%
1,010,560 Enron Corp....................................76,044,640
Publishing - Periodicals - 1.7%
7,301,601 Wolters Kluwer N.V.**........................318,260,029
Radio - 0.2%
771,890 Chancellor Media Corp.*.......................42,357,464
Recycling - 0.2%
1,170,742 Tomra Systems A.S.A...........................46,611,436
Retail - Diversified - 0.3%
968,000 Ito-Yokado Co., Ltd.**........................59,445,041
Retail - Internet - 1.0%
507,355 Amazon.com, Inc.*.............................87,296,770
555,360 eBay, Inc.*..................................115,584,300
202,881,070
Security Services - 1.2%
15,812,424 Securitas A.B. - Class B(#)..................235,002,286
Telecommunication Equipment - 5.0%
5,848,800 Nokia Oyj - Class A**........................452,325,355
4,828,130 Nokia Oyj (ADR) - Class A**..................358,186,894
3,320,207 Telefonaktiebolaget L.M. Ericsson - Class B*..87,438,463
2,467,509 Telefonaktiebolaget L.M. Ericsson (ADR)*......66,622,743
964,573,455
Telecommunication Services - 2.1%
6,085,509 COLT Telecom Group PLC*(,)**(,+)..........$ 113,758,008
1,279,705 Level 3 Communications, Inc.*................115,253,432
1,029,705 NTL, Inc.*....................................78,515,006
13,066 NTT Data Corp.**.............................103,445,300
410,971,746
Telephone - Integrated - 7.5%
8,417,455 British Telecommunications PLC**(,)(#).......141,492,738
1,090,927 Deutsche Telekom A.G.**.......................43,049,817
5,353 Nippon Telegraph & Telephone Corp.**..........58,301,120
571,345 Swisscom A.G.**..............................210,156,511
1,505,170 Telecom Argentina Stet S.A. (ADR)*............51,928,365
35,012,914 Telecom Italia S.p.A.**......................370,976,155
1,799,810 Telefonica de Argentina S.A. (ADR)............67,267,899
6,902,770 Telefonica S.A.*(,)**........................323,879,762
333,629 Telefonica S.A. (ADR)*(,)**...................46,499,542
1,612,045 Telefonos de Mexico S.A. (ADR)...............122,112,409
1,435,664,318
Telephone - Long Distance - 3.7%
7,363,655 AT&T Corp....................................371,864,578
4,173,075 MCI WorldCom, Inc.*..........................342,974,602
714,839,180
Transportation - Air Freight - 0.8%
1,360,360 FDX Corp.*...................................153,125,523
Travel Services - 0.2%
10,549 Kuoni Reisen A.G. - Class B**.................37,416,352
Water - 0.8%
861,458 Suez Lyonnaise des Eaux**....................146,732,653
- -----------------------------------------------------------------------
Total Common Stock (cost $11,913,269,659)................17,677,199,131
- -----------------------------------------------------------------------
Preferred Stock - 1.7%
Automotive - Cars and Light Trucks - 0.5%
37,477 Porsche A.G.**................................91,192,567
Telephone - Integrated - 1.2%
2,563,565 Telecomunicacoes Brasileiras S.A. (ADR)......233,765,083
- -----------------------------------------------------------------------
Total Preferred Stock (cost $314,864,346)...................324,957,650
- -----------------------------------------------------------------------
Rights - 0%
6,902,770 Telefonica S.A.*(,)** (cost $0)................6,426,476
- -----------------------------------------------------------------------
Money Market - 0.5%
$ 85,000,000 Janus Government Money Market Fund
4.79% (cost $85,000,000).....................85,000,000
- -----------------------------------------------------------------------
Short-Term Corporate Notes - 1.3%
UBS Financial Corp.:
100,000,000 4.78%, 6/8/99.................................99,495,444
100,000,000 4.78%, 8/5/99.................................98,759,000
50,000,000 4.83%, 8/10/99................................49,346,500
- -----------------------------------------------------------------------
Total Short-Term Corporate Notes (cost $247,543,236)........247,600,944
- -----------------------------------------------------------------------
</TABLE>
See Notes to Schedules of Investments.
Janus Equity Funds / April 30, 1999 59
<PAGE>
Janus Worldwide Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
Time Deposits - 2.1%
SouthTrust Bank EDT
$109,300,000 5.00%, 5/3/99.............................$ 109,300,000
Sun Trust Bank EDT
300,000,000 5.00%, 5/3/99................................300,000,000
- -----------------------------------------------------------------------
Total Time Deposits (cost $409,300,000).....................409,300,000
- -----------------------------------------------------------------------
U.S. Government Agencies - 1.0%
Fannie Mae:
50,000,000 4.70%, 8/18/99................................49,305,500
50,000,000 4.70%, 9/1/99.................................49,215,000
50,000,000 4.66%, 10/22/99...............................48,884,000
Freddie Mac
50,000,000 4.73%, 9/9/99.................................49,163,000
- -----------------------------------------------------------------------
Total U.S. Government Agencies (cost $196,498,792)..........196,567,500
- -----------------------------------------------------------------------
U.S. Government Obligation - 0.3%
50,000,000 U.S. Treasury Bill
4.45%, 7/22/99 (cost $49,493,194)............49,507,500
- -----------------------------------------------------------------------
Total Investments (total cost $13,215,969,227) - 99.2%...18,996,559,201
- -----------------------------------------------------------------------
Cash, Receivables and Other Assets, net of
Liabilities - 0.8%.........................................150,843,774
- -----------------------------------------------------------------------
Net Assets - 100%.......................................$19,147,402,975
- -----------------------------------------------------------------------
</TABLE>
SUMMARY OF INVESTMENTS BY COUNTRY, APRIL 30, 1999
<TABLE>
<CAPTION>
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
Argentina 1.0% $ 191,979,113
Bermuda 4.0% 762,462,837
Brazil 1.2% 233,765,083
Canada 0.8% 156,767,282
Denmark 0.3% 55,398,631
Finland 4.3% 810,512,249
France 6.0% 1,134,291,561
Germany 5.5% 1,037,950,897
Hong Kong 0.9% 168,545,284
Ireland 0.4% 75,116,355
Italy 4.0% 754,071,498
Japan 7.5% 1,426,507,798
Mexico 0.9% 176,530,273
Netherlands 7.1% 1,342,866,945
Norway 0.2% 46,611,436
Spain 3.3% 632,190,319
Sweden 3.4% 649,538,350
Switzerland 4.1% 780,773,260
United Kingdom 7.6% 1,435,229,933
United States(++) 37.5% 7,125,450,097
- ------------------------------------------------------------------------
Total 100.0% $18,996,559,201
</TABLE>
(++)Includes Short-Term Securities (32.3% excluding Short-Term Securities)
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>
British Pound 5/6/99 297,360,000 $ 478,422,504 $ 10,419,494
British Pound 5/13/99 65,000,000 104,572,000 2,938,000
British Pound 10/8/99 87,000,000 139,852,500 400,200
Euro 7/15/99 68,200,000 71,800,960 8,068,060
Euro 7/28/99 49,900,000 52,489,810 6,182,610
Euro 8/12/99 222,500,000 233,803,000 28,969,500
Euro 8/27/99 390,600,000 410,012,820 47,887,560
Japanese Yen 5/20/99 12,000,000,000 100,547,228 1,061,578
Japanese Yen 9/16/99 18,994,000,000 159,175,646 4,990,301
Japanese Yen 10/8/99 15,500,000,000 129,898,755 5,402,495
Japanese Yen 10/14/99 25,500,000,000 213,706,014 5,046,667
Japanese Yen 10/21/99 4,006,000,000 33,573,105 1,095,869
Japanese Yen 11/18/99 8,000,000,000 67,048,283 2,820,713
Swiss Franc 10/8/99 118,000,000 78,855,921 1,993,685
- -----------------------------------------------------------------------
Total $2,273,758,546 $127,276,732
</TABLE>
See Notes to Schedules of Investments.
60 Janus Equity Funds / April 30, 1999
<PAGE>
Statements of Operations
<TABLE>
<CAPTION>
Janus
Global
Janus Janus Janus Life
For the six months ended April 30, 1999, (unaudited) Janus Balanced Enterprise Equity Income Sciences
(all numbers in thousands) Fund Fund Fund Fund Fund(1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest $ 38,510 $ 19,520 $ 426 $ 2,399 $ 280
Dividends 42,568 4,143 436 1,655 190
Foreign tax withheld (25) (23) -- (9) (8)
Total Investment Income 81,053 23,640 862 4,045 462
Expenses:
Advisory fees 84,271 4,710 2,696 1,512 377
Transfer agent fees and expenses 22,205 1,278 882 420 137
Registration fees 244 318 84 136 103
Postage and mailing expenses 931 70 85 37 17
Custodian fees 932 54 57 28 20
Printing expenses 1,273 71 73 37 35
Audit fees 59 13 15 13 4
Trustees' fees and expenses 38 4 5 3 3
Other expenses 146 15 13 11 3
Total Expenses 110,099 6,533 3,910 2,197 699
Expense and Fee Offsets (1,221) (114) (124) (32) (17)
Net Expenses 108,878 6,419 3,786 2,165 682
Net Investment Income/(Loss) (27,825) 17,221 (2,924) 1,880 (220)
Net Realized and Unrealized Gain/(Loss) on
Investments:
Net realized gain/(loss) from securities
transactions 2,704,352 52,959 136,620 19,009 (1,161)
Net realized gain/(loss) from foreign currency
transactions (14,080) -- 281 -- 1
Net realized gain/(loss) from futures contracts -- -- -- -- --
Change in net unrealized appreciation/(depreciation)
of investments 5,412,834 220,156 208,283 109,408 6,129
Net Gain/(Loss) on Investments 8,103,106 273,115 345,184 128,417 4,969
Net Increase/(Decrease) in Net Assets Resulting from
Operations $8,075,281 $290,336 $342,260 $130,297 $4,749
</TABLE>
(1) Period from December 31, 1998 (inception) to April 30, 1999.
See Notes to Financial Statements.
Janus Equity Funds / April 30, 1999 61
<PAGE>
Statements of Operations (continued)
<TABLE>
<CAPTION>
Janus Janus
Global Growth Janus
For the six months ended April 30, 1999, (unaudited) Technology and Income Mercury
(all numbers in thousands) Fund(1) Fund Fund
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest $ 1,659 $ 14,004 $ 6,497
Dividends 253 11,353 5,788
Foreign tax withheld (31) (159) (287)
Total Investment Income 1,881 25,198 11,998
Expenses:
Advisory fees 1,039 12,224 11,911
Transfer agent fees and expenses 325 3,837 3,832
Registration fees 130 280 502
Postage and mailing expenses 39 267 273
Custodian fees 26 174 137
Printing expenses 53 434 427
Audit fees 4 5 5
Trustees' fees and expenses -- 9 2
Other expenses 5 25 22
Total Expenses 1,621 17,255 17,111
Expense and Fee Offsets (29) (287) (413)
Net Expenses 1,592 16,968 16,698
Net Investment Income/(Loss) 289 8,230 (4,700)
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions (2,775) 147,187 648,919
Net realized gain/(loss) from foreign currency
transactions -- 1,053 2,796
Net realized gain/(loss) from futures contracts -- -- --
Change in net unrealized appreciation/(depreciation) of
investments 135,721 876,597 1,041,772
Net Gain/(Loss) on Investments 132,946 1,024,837 1,693,487
Net Increase/(Decrease) in Net Assets Resulting from
Operations $133,235 $1,033,067 $1,688,787
</TABLE>
(1) Period from December 31, 1998 (inception) to April 30, 1999.
62 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus
Janus Special Janus Janus Janus
Olympus Janus Situations Twenty Venture Worldwide
Fund Overseas Fund Fund Fund Fund
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 5,726 $ 5,139 $ 205 $ 89,807 $ 2,231 $ 28,846
2,094 15,748 781 27,426 481 55,184
(86) (1,975) -- (1,281) (3) (5,249)
7,734 18,912 986 115,952 2,709 78,781
5,261 14,139 3,029 59,433 4,107 54,465
1,633 3,868 1,074 16,758 1,145 15,009
258 133 15 2,371 37 518
94 134 122 728 131 483
76 1,587 39 549 62 4,085
144 215 112 1,190 126 661
6 6 18 27 6 35
4 13 5 50 (5) 34
14 50 16 54 15 152
7,490 20,145 4,430 81,160 5,624 75,442
(172) (191) (104) (1,021) (71) (1,128)
7,318 19,954 4,326 80,139 5,553 74,314
416 (1,042) (3,340) 35,813 (2,844) 4,467
146,670 18,963 147,122 480,419 234,792 96,068
805 (15,610) 12 5,759 (2) (30,002)
-- 6,888 -- -- -- 28,108
480,120 756,718 157,894 6,106,580 229,207 3,380,203
627,595 766,959 305,028 6,592,758 463,997 3,474,377
$628,011 $765,917 $301,688 $6,628,571 $461,153 $3,478,844
</TABLE>
Janus Equity Funds / April 30, 1999 63
<PAGE>
Statements of Assets & Liabilities
<TABLE>
<CAPTION>
Janus Janus Janus
As of April 30, 1999, (unaudited) Janus Balanced Enterprise Equity Income
(all numbers in thousands except net asset value per share) Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments at cost $18,632,701 $1,831,188 $ 771,913 $503,441
Investments at value $29,641,132 $2,133,116 $1,101,678 $634,115
Cash 1,535 3,628 1,680 1,425
Receivables:
Investments sold 457,244 12,133 12,275 4,876
Fund shares sold 89,678 22,045 19,592 6,445
Dividends 13,068 1,137 92 490
Interest 818 16,940 -- 2,603
Other assets 283 4 7 2
Forward currency contracts -- 48 -- --
Total Assets 30,203,758 2,189,051 1,135,324 649,956
Liabilities:
Payables:
Investments purchased 184,798 33,254 27,556 19,412
Fund shares repurchased 17,015 3,918 6,718 695
Advisory fees 16,239 1,120 579 351
Transfer agent fees and expenses 4,233 288 200 93
Accrued expenses 2,149 325 295 136
Forward currency contracts -- -- -- --
Total Liabilities 224,434 38,905 35,348 20,687
Net Assets $29,979,324 $2,150,146 $1,099,976 $629,269
Shares Outstanding, $0.01 Par Value (unlimited shares
authorized) 790,618 100,275 24,293 28,908
Net Asset Value Per Share $37.92 $ 21.44 $ 45.28 $ 21.77
<CAPTION>
Janus
Global Life
As of April 30, 1999, (unaudited) Sciences
(all numbers in thousands except net asset value per share) Fund
- ----------------------------------------------------------- -----------
<S> <C>
Assets:
Investments at cost $182,674
Investments at value $188,740
Cash 566
Receivables:
Investments sold 5,324
Fund shares sold 1,896
Dividends 60
Interest --
Other assets --
Forward currency contracts 63
Total Assets 196,649
Liabilities:
Payables:
Investments purchased 388
Fund shares repurchased 409
Advisory fees 119
Transfer agent fees and expenses 42
Accrued expenses 109
Forward currency contracts --
Total Liabilities 1,067
Net Assets $195,582
Shares Outstanding, $0.01 Par Value (unlimited shares
authorized) 19,008
Net Asset Value Per Share $ 10.29
</TABLE>
See Notes to Financial Statements.
64 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus Janus Janus
Global Growth Janus Janus Janus Special Janus Janus Janus
Technology and Income Mercury Olympus Overseas Situations Twenty Venture Worldwide
Fund Fund Fund Fund Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$814,341 $3,226,596 $4,120,370 $1,682,674 $3,202,187 $ 795,488 $16,405,335 $ 953,463 $13,215,969
$950,063 $4,585,319 $5,633,511 $2,421,640 $4,407,826 $ 995,711 $26,089,068 $1,408,973 $18,996,559
3,758 555 620 573 557 1,569 1,711 1,585 890
3,117 41,492 67,422 25,711 102,212 19,528 97,691 11,099 141,835
26,058 23,669 75,180 34,968 13,365 3,272 154,981 604 59,544
59 2,049 641 491 9,139 31 3,286 40 29,173
30 3,549 58 2,301 -- 176 26,736 -- 389
-- 28 23 8 48 9 116 30 157
-- 9,400 18,047 8,478 47,178 45 -- -- 127,277
983,085 4,666,061 5,795,502 2,494,170 4,580,325 1,020,341 26,373,589 1,422,331 19,355,824
33,780 47,099 179,196 32,104 56,554 23,044 72,664 22,904 173,713
1,780 2,061 9,631 3,846 8,398 1,583 12,548 608 19,719
437 2,478 2,809 1,277 2,457 536 13,929 766 10,195
117 788 819 403 666 182 3,744 215 2,786
120 824 902 329 922 170 3,195 167 2,008
-- -- -- -- -- -- -- 408 --
36,234 53,250 193,357 37,959 68,997 25,515 106,080 25,068 208,421
$946,851 $4,612,811 $5,602,145 $2,456,211 $4,511,328 $ 994,826 $26,267,509 $1,397,263 $19,147,403
68,760 139,408 178,368 71,600 210,871 48,485 409,361 20,671 372,778
$ 13.77 $ 33.09 $ 31.41 $ 34.30 $ 21.39 $ 20.52 $ 64.17 $ 67.60 $ 51.36
</TABLE>
Janus Equity Funds / April 30, 1999 65
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Janus Janus
For the six months ended April 30, 1999, (unaudited) Janus Balanced Enterprise
and for the fiscal year ended October 31 Fund Fund Fund
(all numbers in thousands) 1999 1998 1999 1998 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ (27,825) $ (825) $ 17,221 $ 12,539 $ (2,924) $ (3,669)
Net realized gain/(loss) from investment
transactions 2,690,272 589,663 52,959 5,846 136,901 79,005
Change in unrealized net
appreciation/(depreciation) of investments 5,412,834 2,210,595 220,156 49,716 208,283 (12,029)
Net Increase in Net Assets Resulting from Operations 8,075,281 2,799,433 290,336 68,101 342,260 63,307
Dividends and Distributions to Shareholders:
Net investment income* -- (149,577) (15,461) (10,977) -- --
Dividends (in excess of net investment income)* -- -- -- -- -- --
Net realized gain from investment transactions* (609,005) (3,125,216) (6,137) (34,067) (76,954) (34,480)
Net Decrease from Dividends and Distributions (609,005) (3,274,793) (21,598) (45,044) (76,954) (34,480)
Capital Share Transactions:
Shares sold 3,501,362 3,186,804 1,310,346 622,532 828,155 520,538
Reinvested dividends and distributions 593,074 3,186,148 21,105 44,048 75,136 33,924
Shares repurchased (2,302,650) (4,205,664) (280,092) (219,747) (627,620) (576,118)
Net Increase/(Decrease) from Capital Share
Transactions 1,791,786 2,167,288 1,051,359 446,833 275,671 (21,656)
Net Increase/(Decrease) in Net Assets 9,258,062 1,691,928 1,320,097 469,890 540,977 7,171
Net Assets:
Beginning of period 20,721,262 19,029,334 830,049 360,159 558,999 551,828
End of period $29,979,324 $20,721,262 $2,150,146 $ 830,049 $1,099,976 $ 558,999
Net Assets Consist of:
Capital (par value and paid-in surplus)* $16,338,492 $14,546,706 $1,789,292 $ 737,933 $ 636,967 $ 361,296
Undistributed net investment income/(loss)* (27,825) -- 5,925 4,165 (2,924) --
Undistributed net realized gain/(loss) from
investments* 2,660,554 579,287 52,957 6,135 136,170 76,223
Unrealized appreciation/(depreciation) of
investments 11,008,103 5,595,269 301,972 81,816 329,763 121,480
Total Net Assets $29,979,324 $20,721,262 $2,150,146 $ 830,049 $1,099,976 $ 558,999
Transactions in Fund Shares:
Shares sold 98,987 113,579 64,970 37,044 21,124 16,290
Reinvested distributions 17,907 130,632 1,059 2,868 2,196 1,154
Total 116,894 244,211 66,029 39,912 23,320 17,444
Shares repurchased (67,051) (151,587) (13,963) (13,233) (16,318) (18,034)
Net increase/(decrease) 49,843 92,624 52,066 26,679 7,002 (590)
Shares outstanding beginning of period 740,775 648,151 48,209 21,530 17,291 17,881
Shares outstanding end of period 790,618 740,775 100,275 48,209 24,293 17,291
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $10,161,932 $13,850,135 $1,266,296 $ 679,170 $ 782,795 $ 729,785
Proceeds from sales of securities 9,625,827 16,162,138 295,072 337,939 588,042 804,426
Purchases of long-term U. S. government
obligations -- -- 88,554 45,545 -- --
Proceeds from sales of long-term U. S.
government obligations -- -- -- 34,603 -- --
</TABLE>
(1) Period from December 31, 1998 (inception) to April 30, 1999.
* See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
66 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus Janus
Janus Global Life Janus Growth and Janus
Equity Income Sciences Global Technology Income Mercury
Fund Fund Fund Fund Fund
1999 1998 1999(1) 1999(1) 1999 1998 1999 1998
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,880 $ 543 $ (220) $ 289 $ 8,230 $ 8,295 $ (4,700) $ (6,863)
19,009 3,247 (1,160) (2,775) 148,240 220,260 651,715 243,921
109,408 13,912 6,129 135,721 876,597 104,949 1,041,772 204,681
130,297 17,702 4,749 133,235 1,033,067 333,504 1,688,787 441,739
(1,701) (233) -- -- (9,171) (3,592) -- --
-- -- -- -- -- -- -- (4,295)
(3,238) (5,097) -- -- (226,034) (184,658) (238,426) (196,658)
(4,939) (5,330) -- -- (235,205) (188,250) (238,426) (200,953)
428,586 224,385 234,734 941,356 1,280,931 1,412,356 2,617,799 1,556,825
4,805 5,387 -- -- 229,864 184,420 233,638 196,626
(130,262) (115,687) (43,901) (127,740) (514,925) (811,950) (1,067,730) (1,597,209)
303,129 114,085 190,833 813,616 995,870 784,826 1,783,707 156,242
428,487 126,457 195,582 946,851 1,793,732 930,080 3,234,068 397,028
200,782 74,325 -- -- 2,819,079 1,888,999 2,368,077 1,971,049
$ 629,269 $ 200,782 $195,582 $ 946,851 $4,612,811 $2,819,079 $ 5,602,145 $ 2,368,077
$ 478,936 $ 175,807 $190,833 $ 813,616 $3,098,607 $2,102,737 $ 3,427,962 $ 1,644,255
730 474 (220) 289 4,571 5,513 (4,700) --
18,930 3,236 (1,160) (2,775) 141,516 219,309 647,695 234,405
130,673 21,265 6,129 135,721 1,368,117 491,520 1,531,188 489,417
$ 629,269 $ 200,782 $195,582 $ 946,851 $4,612,811 $2,819,079 $ 5,602,145 $ 2,368,077
22,328 15,102 23,315 79,195 41,736 54,594 94,211 80,428
253 408 -- -- 7,968 8,105 9,764 12,167
22,581 15,510 23,315 79,195 49,704 62,699 103,975 92,595
(6,548) (7,952) (4,307) (10,435) (16,880) (31,457) (39,609) (84,267)
16,033 7,558 19,008 68,760 32,824 31,242 64,366 8,328
12,875 5,317 -- -- 106,584 75,342 114,002 105,674
28,908 12,875 19,008 68,760 139,408 106,584 178,368 114,002
$ 409,975 $ 228,057 $299,056 $ 724,542 $1,659,592 $2,442,458 $ 3,506,099 $ 2,114,889
101,620 128,268 116,922 69,214 819,498 2,149,033 1,972,260 2,337,255
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
</TABLE>
Janus Equity Funds / April 30, 1999 67
<PAGE>
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Janus Janus
For the six months ended April 30, 1999, (unaudited) Olympus Overseas
and for 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 (loss) $ 416 $ (1,635) $ (1,042) $ 22,744
Net realized gain/(loss) from investment
transactions 147,475 (4,017) 10,241 (174,093)
Change in unrealized net
appreciation/(depreciation) of investments 480,120 150,137 756,718 200,570
Net Increase in Net Assets Resulting from Operations 628,011 144,485 765,917 49,221
Dividends and Distributions to Shareholders:
Net investment income* -- -- (19,978) (16,883)
Dividends (in excess of net investment income)* -- (1,358) -- --
Net realized gain from investment transactions* -- (24,652) -- (89,374)
Net Decrease from Dividends and Distributions -- (26,010) (19,978) (106,257)
Capital Share Transactions:
Shares sold 1,375,289 663,265 1,595,431 4,151,239
Reinvested dividends and distributions -- 25,635 19,035 103,249
Shares repurchased (494,583) (475,532 (1,738,175) (3,513,551)
Net Increase/(Decrease) from Capital Share
Transactions 880,706 213,368 (123,709) 740,937
Net Increase/(Decrease) in Net Assets 1,508,717 331,843 622,230 683,901
Net Assets:
Beginning of period 947,494 615,651 3,889,098 3,205,197
End of period $2,456,211 $ 947,494 $ 4,511,328 $ 3,889,098
Net Assets Consist of:
Capital (par value and paid-in surplus)* $1,566,139 $ 685,433 $ 3,424,933 $ 3,548,643
Undistributed net investment income/(loss)* 416 -- (1,061) 19,959
Undistributed net realized gain/(loss) from
investments* 142,214 (5,261) (165,210) (175,453)
Unrealized appreciation/(depreciation) of
investments 747,442 267,322 1,252,666 495,949
Total Net Assets $2,456,211 $ 947,494 $ 4,511,328 $ 3,889,098
Transactions in Fund Shares:
Shares sold 44,504 32,029 78,704 220,566
Reinvested distributions -- 1,491 954 5,955
Total 44,504 33,520 79,658 226,521
Shares repurchased (16,570) (23,295) (85,402) (188,605)
Net increase/(decrease) 27,934 10,225 (5,744) 37,916
Shares outstanding beginning of period 43,666 33,441 216,615 178,699
Shares outstanding end of period 71,600 43,666 210,871 216,615
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $1,511,792 $ 915,583 $ 2,205,717 $ 4,221,837
Proceeds from sales of securities 687,317 881,598 1,893,353 3,834,004
Purchases of long-term U. S. government
obligations -- 47,700 -- --
Proceeds from sales of long-term U. S.
government obligations 47,725 -- -- --
<CAPTION>
Janus
Special
For the six months ended April 30, 1999, (unaudited) Situations
and for the fiscal year ended October 31 Fund
(all numbers in thousands) 1999 1998
- ---------------------------------------------------- -----------------------
<S> <C> <C>
Operations:
Net investment income (loss) $ (3,340) $ (3,487)
Net realized gain/(loss) from investment
transactions 147,134 (2,070)
Change in unrealized net
appreciation/(depreciation) of investments 157,894 9,074
Net Increase in Net Assets Resulting from Operations 301,688 3,517
Dividends and Distributions to Shareholders:
Net investment income* -- --
Dividends (in excess of net investment income)* -- --
Net realized gain from investment transactions* (2,186) (17,012)
Net Decrease from Dividends and Distributions (2,186) (17,012)
Capital Share Transactions:
Shares sold 241,012 904,751
Reinvested dividends and distributions 2,143 16,542
Shares repurchased (334,148) (455,258)
Net Increase/(Decrease) from Capital Share
Transactions (90,993) 466,035
Net Increase/(Decrease) in Net Assets 208,509 452,540
Net Assets:
Beginning of period 786,317 333,777
End of period $ 994,826 $ 786,317
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 654,053 $ 745,046
Undistributed net investment income/(loss)* (3,340) --
Undistributed net realized gain/(loss) from
investments* 143,845 (1,103)
Unrealized appreciation/(depreciation) of
investments 200,268 42,374
Total Net Assets $ 994,826 $ 786,317
Transactions in Fund Shares:
Shares sold 13,220 59,478
Reinvested distributions 127 1,221
Total 13,347 60,699
Shares repurchased (18,834) (30,431)
Net increase/(decrease) (5,487) 30,268
Shares outstanding beginning of period 53,972 23,704
Shares outstanding end of period 48,485 53,972
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 570,460 $1,255,119
Proceeds from sales of securities 659,237 810,438
Purchases of long-term U. S. government
obligations -- --
Proceeds from sales of long-term U. S.
government obligations -- --
</TABLE>
* See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
68 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus Janus Janus
Twenty Venture Worldwide
Fund Fund Fund
1999 1998 1999 1998 1999 1998
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 35,813 $ 31,052 $ (2,844) $ (3,380) $ 4,467 $ 61,934
486,178 84,283 234,790 88,939 94,174 (331,717)
6,106,580 2,427,694 229,207 (64,755) 3,380,203 1,260,143
6,628,571 2,543,029 461,153 20,804 3,478,844 990,360
(40,224) (16,587) -- (52) (61,988) (50,801)
-- -- -- (1,458) -- --
(86,763) (752,195) (89,623) (193,117) -- (676,334)
(126,987) (768,782) (89,623) (194,627) (61,988) (727,135)
11,305,485 5,456,699 86,491 172,993 5,612,431 8,757,202
124,417 754,471 86,300 188,622 60,058 706,814
(2,918,847) (2,601,617) (182,926) (404,265) (3,873,932) (6,153,476)
8,511,055 3,609,553 (10,135) (42,650) 1,798,557 3,310,540
15,012,639 5,383,800 361,395 (216,473) 5,215,413 3,573,765
11,254,870 5,871,070 1,035,868 1,252,341 13,931,990 10,358,225
$26,267,509 $11,254,870 $1,397,263 $1,035,868 $19,147,403 $13,931,990
$16,071,200 $ 7,560,146 $ 710,550 $ 720,685 $13,501,040 $11,702,483
26,624 31,035 (2,844) -- 4,447 61,968
485,953 86,537 234,456 89,289 (265,526) (359,700)
9,683,732 3,577,152 455,101 225,894 5,907,442 2,527,239
$26,267,509 $11,254,870 $1,397,263 $1,035,868 $19,147,403 $13,931,990
197,016 137,366 1,462 3,296 116,168 204,904
2,310 24,760 1,551 3,904 1,276 18,812
199,326 162,126 3,013 7,200 117,444 223,716
(51,839) (67,253) (3,139) (7,687) (80,234) (146,793)
147,487 94,873 (126) (487) 37,210 76,923
261,874 167,001 20,797 21,284 335,568 258,645
409,361 261,874 20,671 20,797 372,778 335,568
$ 6,693,766 $ 5,303,352 $ 839,942 $ 988,045 $ 6,951,222 $11,468,001
1,519,589 3,789,475 866,263 1,284,642 4,142,197 10,368,469
337,784 388,670 -- -- -- --
-- 188,367 -- -- -- --
</TABLE>
Janus Equity Funds / April 30, 1999 69
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $27.97 $29.36 $26.65 $23.37 $19.62 $20.81
Income from Investment Operations:
Net investment income (.04) (.02) .15 .31 .16 .17
Net gains/(losses) on securities (both
realized and unrealized) 10.81 3.70 5.69 4.23 3.99 (.03)
Total from Investment Operations 10.77 3.68 5.84 4.54 4.15 .14
Less Distributions:
Dividends (from net investment income) -- (.23) (.21) (.13) (.01) (.39)
Dividends (in excess of net investment
income) -- -- -- -- -- --
Distributions (from capital gains) (.82) (4.84) (2.92) (1.13) (.39) (.94)
Total Distributions (.82) (5.07) (3.13) (1.26) (.40) (1.33)
Net Asset Value, End of Period $37.92 $27.97 $29.36 $26.65 $23.37 $19.62
Total Return* 38.94% 15.12% 24.18% 20.31% 21.62% 0.75%
Net Assets, End of Period (in thousands) $29,979,324 $20,721,262 $19,029,334 $15,313,180 $11,962,970 $9,647,245
Average Net Assets for the Period (in
thousands) $26,130,740 $20,777,322 $17,515,216 $13,753,157 $10,559,806 $9,338,807
Ratio of Gross Expenses to Average Net
Assets**(1) 0.85% 0.87% 0.87% 0.86% 0.87% NA
Ratio of Net Expenses to Average Net
Assets**(l) 0.84% 0.86% 0.86% 0.85% 0.86% 0.91%
Ratio of Net Investment Income to Average Net
Assets** (0.21)% -- 0.85% 0.91% 1.25% 1.12%
Portfolio Turnover Rate** 80% 70% 132% 104% 118% 139%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Balanced Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.22 $16.73 $15.20 $13.72 $12.17 $12.23
Income from Investment Operations:
Net investment income .20 .33 .36 .33 .61 .27
Net gains/(losses) on securities (both realized
and unrealized) 4.35 2.00 2.88 2.22 1.52 (.09)
Total from Investment Operations 4.55 2.33 3.24 2.55 2.13 .18
Less Distributions:
Dividends (from net investment income) (.22) (.35) (.36) (.26) (.58) (.24)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) (.11) (1.49) (1.35) (.81) -- --
Total Distributions (.33) (1.84) (1.71) (1.07) (.58) (.24)
Net Asset Value, End of Period $21.44 $17.22 $16.73 $15.20 $13.72 $12.17
Total Return* 26.66% 15.48% 23.38% 19.39% 18.26% 1.51%
Net Assets, End of Period (in thousands) $2,150,146 $830,049 $360,159 $207,044 $124,545 $93,546
Average Net Assets for the Period (in thousands) $1,399,795 $536,524 $283,220 $158,607 $107,259 $86,361
Ratio of Gross Expenses to Average Net Assets**(1) 0.94% 1.03% 1.12% 1.23% 1.35% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.92% 1.01% 1.10% 1.21% 1.32% 1.42%
Ratio of Net Investment Income to Average Net
Assets** 2.48% 2.34% 2.63% 2.35% 2.52% 2.28%
Portfolio Turnover Rate** 45% 73% 139% 151% 185% 167%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See "Explanation of the Charts and Tables."
NA - Disclosure not applicable to prior year periods.
See Notes to Financial Statements.
70 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Enterprise Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $32.33 $30.86 $31.19 $27.14 $24.43 $21.87
Income from Investment Operations:
Net investment income (.08) -- -- -- .52 (.06)
Net gains (losses) on securities (both realized and
unrealized) 17.34 3.43 .95 5.85 3.09 3.18
Total from Investment Operations 17.26 3.43 .95 5.85 3.61 3.12
Less Distributions:
Dividends (from net investment income) (.04) -- -- -- (.52) (.02)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) (4.27) (1.96) (1.28) (1.80) (.38) (.54)
Total Distributions (4.31) (1.96) (1.28) (1.80) (.90) (.56)
Net Asset Value, End of Period $45.28 $32.33 $30.86 $31.19 $27.14 $24.43
Total Return* 57.55% 11.79% 3.31% 22.43% 15.46% 14.56%
Net Assets, End of Period (in thousands) $1,099,976 $558,999 $551,828 $732,003 $459,370 $370,028
Average Net Assets for the Period (in thousands) $774,749 $551,467 $613,784 $596,313 $407,791 $269,595
Ratio of Gross Expenses to Average Net Assets**(1) 1.02% 1.08% 1.07% 1.14% 1.26% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.99% 1.06% 1.04% 1.12% 1.23% 1.25%
Ratio of Net Investment Income to Average Net Assets** (0.76)% (0.67)% (0.61)% (0.78)% 0.02% (0.32)%
Portfolio Turnover Rate** 154% 134% 111% 93% 194% 193%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Equity Income Fund
through each fiscal year ended October 31 1999 1998 1997 1996(2)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.59 $13.98 $11.29 $10.00
Income from Investment Operations:
Net investment income .09 .05 .09 .07
Net gains (losses) on securities (both realized and
unrealized) 6.34 2.47 3.11 1.25
Total from Investment Operations 6.43 2.52 3.20 1.32
Less Distributions:
Dividends (from net investment income) (.10) (.03) (.12) (.03)
Dividends (in excess of net investment income) -- -- -- --
Distributions (from capital gains) (.15) (.88) (.39) --
Total Distributions (.25) (.91) (.51) (.03)
Net Asset Value, End of Period $21.77 $15.59 $13.98 $11.29
Total Return* 41.53% 19.21% 29.46% 13.20%
Net Assets, End of Period (in thousands) $629,269 $200,782 $74,325 $30,429
Average Net Assets for the Period (in thousands) $415,934 $133,613 $46,054 $21,424
Ratio of Gross Expenses to Average Net Assets**(1) 1.07% 1.21% 1.48% 1.79%
Ratio of Net Expenses to Average Net Assets**(1) 1.05% 1.18% 1.45% 1.71%
Ratio of Net Investment Income to Average Net Assets** 0.91% 0.41% 0.62% 3.09%
Portfolio Turnover Rate** 54% 101% 180% 325%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See "Explanation of the Charts and Tables."
(2) Fiscal period June 29, 1996 (inception) to October 31, 1996.
NA - Disclosure not applicable to prior periods.
See Notes to Financial Statements.
Janus Equity Funds / April 30, 1999 71
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Global Life Sciences Fund(2)
through each fiscal year ended October 31 1999
<S> <C>
Net Asset Value, Beginning of Period $10.00
Income from Investment Operations:
Net investment income (.01)
Net gains (losses) on securities (both realized and
unrealized) .30
Total from Investment Operations .29
Less Distributions:
Dividends (from net investment income) --
Dividends (in excess of net investment income) --
Distributions (from capital gains) --
Total Distributions --
Net Asset Value, End of Period $10.29
Total Return* 2.90%
Net Assets, End of Period (in thousands) $195,582
Average Net Assets for the Period (in thousands) $151,520
Ratio of Gross Expenses to Average Net Assets**(1) 1.39%
Ratio of Net Expenses to Average Net Assets**(1) 1.36%
Ratio of Net Investment Income to Average Net Assets** (0.44)%
Portfolio Turnover Rate** 223%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Global Technology Fund(2)
through each fiscal year ended October 31 1999
<S> <C>
Net Asset Value, Beginning of Period $10.00
Income from Investment Operations:
Net investment income --
Net gains/(losses) on securities (both realized and
unrealized) 3.77
Total from Investment Operations 3.77
Less Distributions:
Dividends (from net investment income) --
Dividends (in excess of net investment income) --
Distributions (from capital gains) --
Total Distributions --
Net Asset Value, End of Period $13.77
Total Return* 37.70%
Net Assets, End of Period (in thousands) $946,851
Average Net Assets for the Period (in thousands) $433,059
Ratio of Gross Expenses to Average Net Assets**(1) 1.13%
Ratio of Net Expenses to Average Net Assets**(1) 1.11%
Ratio of Net Investment Income to Average Net Assets** 0.20%
Portfolio Turnover Rate** 58%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See "Explanation of the Charts and Tables."
(2) Period from December 31, 1998 (inception) to April 30, 1999.
See Notes to Financial Statements.
72 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Growth and Income Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $26.45 $25.07 $20.05 $18.13 $14.69 $15.24
Income from Investment Operations:
Net investment income .21 .08 .01 .16 .11 .19
Net gains (losses) on securities (both realized and
unrealized) 8.53 3.72 6.98 4.01 3.43 (.31)
Total from Investment Operations 8.74 3.80 6.99 4.17 3.54 (.12)
Less Distributions:
Dividends (from net investment income) (.23) (.04) (.11) (.08) (.10) (.10)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) (1.87) (2.38) (1.86) (2.17) -- (.33)
Total Distributions (2.10) (2.42) (1.97) (2.25) (.10) (.43)
Net Asset Value, End of Period $33.09 $26.45 $25.07 $20.05 $18.13 $14.69
Total Return* 34.21% 16.73% 37.78% 25.56% 24.20% (0.76%)
Net Assets, End of Period (in thousands) $4,612,811 $2,819,079 $1,888,999 $1,033,183 $582,963 $489,942
Average Net Assets for the Period (in thousands) $3,730,758 $2,478,899 $1,415,563 $773,343 $498,442 $499,831
Ratio of Gross Expenses to Average Net Assets**(1) 0.93% 0.96% 0.98% 1.05% 1.19% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.92% 0.94% 0.96% 1.03% 1.17% 1.22%
Ratio of Net Investment Income/(Loss) to Average Net
Assets** 0.44% 0.33% 0.30% 0.70% 1.11% 1.26%
Portfolio Turnover Rate** 50% 95% 127% 153% 195% 123%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Mercury Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $20.77 $18.65 $18.20 $17.38 $14.12 $11.70
Income from Investment Operations:
Net investment income (.03) (.01) (.01) .14 .16 .02
Net gains (losses) on securities (both realized and
unrealized) 12.68 4.07 2.82 2.74 3.37 2.40
Total from Investment Operations 12.65 4.06 2.81 2.88 3.53 2.42
Less Distributions:
Dividends (from net investment income) -- -- (.08) -- (.16) --
Dividends (in excess of net investment income) -- (.04) -- -- -- --
Distributions (from capital gains) (2.01) (1.90) (2.28) (2.06) (.11) --
Total Distributions (2.01) (1.94) (2.36) (2.06) (.27) --
Net Asset Value, End of Period $31.41 $20.77 $18.65 $18.20 $17.38 $14.12
Total Return* 63.94% 24.75% 17.07% 18.18% 25.53% 20.68%
Net Assets, End of Period (in thousands) $5,602,145 $2,368,077 $1,971,049 $2,002,350 $1,520,768 $596,330
Average Net Assets for the Period (in thousands) $3,633,613 $2,103,414 $2,045,901 $1,838,593 $1,116,377 $257,726
Ratio of Gross Expenses to Average Net Assets**(1) 0.95% 0.97% 0.98% 1.02% 1.14% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.93% 0.94% 0.96% 1.00% 1.12% 1.33%
Ratio of Net Investment Income to Average Net Assets** (0.26)% (0.33)% 0.21% 0.45% 0.50% 0.25%
Portfolio Turnover Rate** 115% 105% 157% 177% 201% 283%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See "Explanation of the Charts and Tables."
NA - Disclosure not applicable to prior periods.
See Notes to Financial Statements.
Janus Equity Funds / April 30, 1999 73
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Olympus Fund
through each fiscal year ended October 31 1999 1998 1997 1996(2)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $21.70 $18.41 $14.86 $12.00
Income from Investment Operations:
Net investment income -- -- .04 .13
Net gains (losses) on securities (both realized and
unrealized) 12.60 4.05 3.64 2.73
Total from Investment Operations 12.60 4.05 3.68 2.86
Less Distributions:
Dividends (from net investment income) -- -- (.13) --
Dividends (in excess of net investment income) -- (.04) -- --
Distributions (from capital gains) -- (.72) -- --
Total Distributions -- (.76) (.13) --
Net Asset Value, End of Period $34.30 $21.70 $18.41 $14.86
Total Return* 58.06% 23.10% 24.98% 23.83%
Net Assets, End of Period (in thousands) $2,456,211 $947,494 $615,651 $432,375
Average Net Assets for the Period (in thousands) $1,570,603 $774,434 $517,424 $276,006
Ratio of Gross Expenses to Average Net Assets**(1) 0.96% 1.01% 1.06% 1.17%
Ratio of Net Expenses to Average Net Assets**(1) 0.94% 0.98% 1.03% 1.15%
Ratio of Net Investment Income to Average Net Assets** 0.05% (0.21)% 0.26% 1.64%
Portfolio Turnover Rate** 107% 123% 244% 303%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Overseas Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994(3)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.95 $17.94 $14.81 $11.58 $10.36 $10.00
Income from Investment Operations:
Net investment income (.10) .08 .04 .10 .12 (.02)
Net gains/(losses) on securities (both realized and
unrealized) 3.54 .54 3.39 3.34 1.10 .38
Total from Investment Operations 3.44 .62 3.43 3.44 1.22 .36
Less Distributions:
Dividends (from net investment income) -- (.10) (.04) (.11) -- --
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) -- (.51) (.26) (.10) -- --
Total Distributions -- (.61) (.30) (.21) -- --
Net Asset Value, End of Period $21.39 $17.95 $17.94 $14.81 $11.58 $10.36
Total Return* 19.72% 3.55% 23.56% 30.19% 11.78% 3.60%
Net Assets, End of Period (in thousands) $4,511,328 $3,889,098 $3,205,197 $772,630 $110,866 $64,065
Average Net Assets for the Period (in thousands) $4,324,947 $3,948,710 $2,093,370 $335,098 $77,668 $36,645
Ratio of Gross Expenses to Average Net Assets**(1) 0.94% 0.96% 1.03% 1.26% 1.76% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.93% 0.94% 1.01% 1.23% 1.73% 2.16%
Ratio of Net Investment Income to Average Net Assets** (0.05)% 0.58% 0.81% 0.73% 0.36% (0.64)%
Portfolio Turnover Rate** 94% 105% 72% 71% 188% 181%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See "Explanation of the Charts and Tables."
(2) Fiscal period from December 29, 1995 (inception) to October 31, 1996.
(3) Fiscal period from May 2, 1994 (inception) to October 31, 1994.
NA - Disclosure not applicable to prior periods.
See Notes to Financial Statements.
74 Janus Equity Funds / April 30, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Special Situations Fund
through each fiscal year ended October 31 1999 1998 1997(2)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $14.57 $14.08 $10.00
Income from Investment Operations:
Net investment income (.07) -- --
Net gains or (losses) on securities (both realized
and unrealized) 6.06 1.15 4.08
Total from Investment Operations 5.99 1.15 4.08
Less Distributions:
Dividends (from net investment income) -- -- --
Dividends (in excess of net investment income) -- -- --
Distributions (from capital gains) (.04) (.66) --
Total Distributions (.04) (.66) --
Net Asset Value, End of Period $20.52 $14.57 $14.08
Total Return* 41.19% 8.49% 40.80%
Net Assets, End of Period (in thousands) $994,826 $786,317 $333,777
Average Net Assets for the Period (in thousands) $878,163 $716,123 $168,215
Ratio of Gross Expenses to Average Net Assets**(1) 1.02% 1.08% 1.20%
Ratio of Net Expenses to Average Net Assets**(1) 0.99% 1.05% 1.18%
Ratio of Net Investment Income/(Loss) to Average Net
Assets** (0.77)% (0.49)% (0.08)%
Portfolio Turnover Rate** 131% 117% 146%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Twenty Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $42.98 $35.16 $31.90 $30.12 $24.24 $25.85
Income from Investment Operations:
Net investment income/(loss) .08 .12 (.09) .37 .01 .16
Net gains or (losses) on securities (both
realized and unrealized) 21.55 12.26 8.85 6.68 5.94 (1.07)
Total from Investment Operations 21.63 12.38 8.76 7.05 5.95 (.91)
Less Distributions:
Dividends (from net investment income) (.14) (.10) (.18) -- (.07) (.25)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) (.30) (4.46) (5.32) (5.27) -- (.45)
Total Distributions (.44) (4.56) (5.50) (5.27) (.07) (.70)
Net Asset Value, End of Period $64.17 $42.98 $35.16 $31.90 $30.12 $24.24
Total Return* 50.52% 40.58% 31.65% 27.59% 24.67% (3.52)%
Net Assets, End of Period (in thousands) $26,267,509 $11,254,870 $5,871,070 $3,937,444 $2,995,751 $2,742,812
Average Net Assets for the Period (in thousands) $18,455,056 $8,025,121 $4,989,616 $3,385,561 $2,716,278 $3,051,194
Ratio of Gross Expenses to Average Net Assets**(1) 0.89% 0.91% 0.93% 0.93% 1.00% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.88% 0.90% 0.91% 0.92% 0.99% 1.02%
Ratio of Net Investment Income/(Loss) to Average
Net Assets** 0.39% 0.39% 0.33% 0.67% 0.62% 0.57%
Portfolio Turnover Rate** 19% 54% 123% 137% 147% 102%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See "Explanation of the Charts and Tables."
(2) Fiscal period from December 31, 1996 (inception) to October 31, 1997.
NA - Disclosure not applicable to prior periods.
See Notes to Financial Statements.
Janus Equity Funds / April 30, 1999 75
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Venture Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 49.81 $ 58.84 $ 57.16 $ 59.53 $ 52.86 $ 53.25
Income from Investment Operations:
Net investment income (.14) (.09) .16 -- .05 .11
Net gains (losses) on securities
(both realized and unrealized) 22.34 0.43 6.80 5.09 9.49 4.40
Total from Investment Operations 22.20 0.34 6.96 5.09 9.54 4.51
Less Distributions:
Dividends (from net investment income) -- -- -- (.01) (.03) (.53)
Dividends (in excess of net investment income) -- (.07) -- -- -- --
Distributions (from capital gains) (4.41) (9.30) (5.28) (7.45) (2.84) (4.37)
Total Distributions (4.41) (9.37) (5.28) (7.46) (2.87) (4.90)
Net Asset Value, End of Period $67.60 $49.81 $58.84 $57.16 $59.53 $52.86
Total Return* 46.47% 1.07% 13.38% 9.28% 19.24% 9.23%
Net Assets, End of Period (in thousands) $1,397,263 $1,035,868 $1,252,341 $1,741,316 $1,753,201 $1,550,476
Average Net Assets for the Period (in thousands) $1,212,535 $1,174,220 $1,379,145 $1,822,801 $1,612,514 $1,562,521
Ratio of Gross Expenses to Average Net Assets**(1) 0.94% 0.94% 0.94% 0.89% 0.92% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.92% 0.93% 0.92% 0.88% 0.91% 0.96%
Ratio of Net Investment Income to Average Net
Assets** (0.47)% (0.29)% 0.11% (0.33)% 0.29% 0.27%
Portfolio Turnover Rate** 151% 90% 146% 136% 113% 114%
</TABLE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 1999 (unaudited) or Janus Worldwide Fund
through each fiscal year ended October 31 1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 41.52 $ 40.05 $ 34.60 $ 27.65 $ 27.00 $ 24.16
Income from Investment Operations:
Net investment income .01 1.26 (.08) .49 .81 .15
Net gains (losses) on securities
(both realized and unrealized) 10.01 3.01 7.73 7.79 1.39 3.34
Total from Investment Operations 10.02 4.27 7.65 8.28 2.20 3.49
Less Distributions:
Dividends (from net investment income) (.18) (1.35) (.15) (.26) (.54) (.27)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) -- (1.45) (2.05) (1.07) (1.01) (.38)
Total Distributions (.18) (2.80) (2.20) (1.33) (1.55) (.65)
Net Asset Value, End of Period $51.36 $41.52 $40.05 $34.60 $27.65 $27.00
Total Return* 24.17% 11.40% 23.34% 31.00% 8.89% 14.76%
Net Assets, End of Period (in thousands) $19,147,403 $13,931,990 $10,358,225 $4,467,185 $1,804,354 $1,587,120
Average Net Assets for the Period (in thousands) $16,880,334 $13,078,350 $7,783,669 $2,953,495 $1,622,142 $1,244,194
Ratio of Gross Expenses to Average Net
Assets**(1) 0.90% 0.92% 0.97% 1.02% 1.24% NA
Ratio of Net Expenses to Average Net Assets**(1) 0.89% 0.90% 0.95% 1.01% 1.23% 1.12%
Ratio of Net Investment Income to Average Net
Assets** 0.05% 0.47% 0.65% 0.73% 0.99% 0.42%
Portfolio Turnover Rate** 54% 86% 79% 80% 142% 158%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See "Explanation of the Charts and Tables."
NA - Disclosure not applicable to prior periods.
See Notes to Financial Statements.
76 Janus Equity Funds / April 30, 1999
<PAGE>
Notes to Schedules of Investments
EUR Euro
GBP British Pound
*Non-income-producing security
**A portion of this security has been segregated by the custodian to cover
segregation requirements on forward currency contracts.
(+)Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
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.
#The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following
is a summary of the transactions with each such affiliate for the period ended
April 30, 1999:
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 4/30/99
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Janus Fund
Adelphia Communications
Corp. - Class A 2,387,160 $124,989,388 -- -- -- -- $ 162,923,670
Cadence Design Systems,
Inc. -- -- 19,355,625 $ 477,538,412 $ 31,315,100 -- --
Chancellor Media Corp. -- -- 8,455,000 267,797,306 37,602,496 -- --
Comcast Corp. - Special
Class A 1,440,000 45,961,924 -- -- -- $1,055,923 1,539,012,144
Cytec Industries, Inc. -- -- 456,930 20,477,025 (11,196,965) -- 84,282,920
Federal-Mogul Corp. 27,000 1,040,548 397,610 24,925,753 (5,039,467) 22,128 180,107,972
Infinity Broadcasting
Corp. - Class A 9,141,225 208,035,129 243,400 5,846,273 54,467 -- 246,358,530
Linear Technology Corp.(1) -- -- 130,000 5,233,014 624,081 1,146,457 865,946,331
Maxim Integrated Products,
Inc. 200,000 7,110,240 -- -- -- -- 697,586,400
Meredith Corp. -- -- 1,607,200 62,414,779 (7,727,597) 482,826 75,748,865
Robert Half International,
Inc. 771,500 29,082,823 3,741,180 146,105,977 (54,151,077) -- 21,213,367
Univision Communications,
Inc. - Class A 922,785 36,325,500 -- -- -- -- 297,516,508
- ---------------------------------------------------------------------------------------------------------------------------------
$452,545,552 $1,010,338,539 $ (8,518,962) $2,707,334 $4,170,696,707
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Enterprise Fund
EduTrek International, Inc. 400,000 $ 2,467,575 600,000 $ 3,842,575 $ 57,425 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Mercury Fund
Ocean Rig A.S.A. -- -- 18,533,941 $ 24,702,588 $(20,074,556) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Overseas Fund
British Telecommunications
PLC 1,991,056 $ 33,873,268 -- -- -- -- $ 33,468,544
Le Groupe Videotron Itee 3,293,697 53,498,113 -- -- -- $ 32,583 67,397,994
- ---------------------------------------------------------------------------------------------------------------------------------
$ 87,371,381 -- -- $ 32,583 $ 100,866,538
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Special Situations
Fund
Bally Total Fitness Holding
Corp. 75,000 $ 1,657,263 30,000 $ 232,948 $ 457,041 -- $ 47,108,050
Exide Corp. 2,030,635 33,951,435 -- -- -- $ 55,370 25,256,023
Magnum Hunter Resources,
Inc. -- -- 100,000 600,000 (336,877) -- 5,269,177
SBS Broadcasting S.A. 42,500 1,315,626 -- -- -- -- 42,446,250
- ---------------------------------------------------------------------------------------------------------------------------------
$ 36,924,324 $ 832,948 $ 120,164 $ 55,370 $ 120,079,500
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Adjusted for 2 for 1 stock split 2/22/99
Janus Equity Funds / April 30, 1999 77
<PAGE>
Notes to Schedules of Investments (continued)
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 4/30/99
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Janus Twenty Fund
Excite, Inc. 3,236,785 $337,868,537 -- -- -- -- $472,570,610
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Venture Fund
EduTrek International, Inc. 600,000 $ 3,900,000 -- -- -- -- $ 3,075,000
Engineering Animation, Inc. 94,230 4,888,492 169,230 $ 8,955,387 $(5,721,258) -- 7,437,500
Enzon, Inc. 1,952,500 20,207,543 -- -- -- -- 25,382,500
Globix Corp. 774,685 19,322,329 -- -- -- -- 36,313,358
pcOrder.com, Inc. - Class A 201,370 8,914,899 -- -- -- -- 12,447,183
School Specialty, Inc. 564,900 10,645,945 -- -- -- -- 18,097,728
- ---------------------------------------------------------------------------------------------------------------------------------
$ 67,879,208 $ 8,955,387 $(5,721,258) -- $102,753,269
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Worldwide Fund
Assa Abloy A.B. - Class B 218,191 $ 9,548,509 119,574 $ 3,808,126 $ 1,152,407 -- $208,268,240
British Telecommunications PLC 8,417,455 143,202,821 -- -- -- -- 141,492,738
Cellular Communications
International, Inc. -- -- 894,952 44,992,145 14,256,982 -- --
Securitas A.B. - Class B -- -- -- -- -- $1,622,074 235,002,286
- ---------------------------------------------------------------------------------------------------------------------------------
$152,751,330 $48,800,271 $ 15,409,389 $1,622,074 $584,763,264
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
78 Janus Equity Funds / April 30, 1999
<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. Fourteen series of shares ("Equity Funds" or "Funds") included in this
report invest primarily in equity securities. Each Fund is diversified as
defined in the 1940 Act, with the exception of Janus Enterprise, Janus Olympus,
Janus Special Situations and Janus Twenty Funds, which are nondiversified.
Janus Global Life Sciences Fund and Janus Global Technology Fund began
operations on December 31, 1998. Organization costs were borne by Janus Capital
Corp. (Janus Capital).
The following policies have been consistently followed by the Funds and are in
conformity with accounting principles generally accepted in the investment
company industry.
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a principal
exchange (U.S. or foreign) and on the NASDAQ National Market. Securities traded
on over-the-counter markets and listed securities for which no sales are
reported are valued at the latest bid price obtained from one or more dealers
making a market for such securities or by a pricing service approved by the
Funds' Trustees. Short-term securities maturing within 60 days are valued at
amortized cost, which approximates market value. Foreign securities are
converted to U.S. dollars using exchange rates at the close of the New York
Stock Exchange. When market quotations are not readily available, securities are
valued at their fair value as determined in good faith by the Funds' Trustees.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold.
Dividend income is recorded on the ex-dividend date. Certain dividends from
foreign securities will be recorded as soon as the Trust is informed of the
dividend if such information is obtained subsequent to the ex-dividend date.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums. Gains and losses are determined on the identified cost
basis, which is the same basis used for federal income tax purposes.
FORWARD CURRENCY TRANSACTIONS AND FUTURES CONTRACTS
The Funds enter into forward currency contracts in order to reduce their
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to lock in the U.S. dollar cost of firm purchase and sale
commitments for securities denominated in foreign currencies. A forward currency
exchange contract is a commitment to purchase or sell a foreign currency at a
future date at a negotiated rate. The gain or loss arising from the difference
between the U.S. dollar cost of the original contract and the value of the
foreign currency in U.S. dollars upon closing of such contract is included in
net realized gain or loss from foreign currency transactions.
Forward currency contracts held by the Funds are fully collateralized by other
securities, which are denoted in the accompanying Schedule of Investments. Such
collateral is in the possession of the Funds' 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 resultant variation margin
is recorded as an unrealized gain or loss. When a contract is closed, a realized
gain or loss is recorded equal to the difference between the opening and closing
value of the contract. Generally, open forward and futures contracts are marked
to market (i.e., treated as realized and subject to distribution) for federal
income tax purposes at fiscal year-end.
Foreign-denominated assets and forward currency contracts may involve more risks
than domestic transactions, including currency risk, political and economic
risk, regulatory risk and market risk. Risks may arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
The Funds may enter into "futures contracts" and "options" on securities,
financial indexes and foreign currencies, forward contracts and interest rate
swaps and swap-related products. The Funds intend to use such derivative
instruments primarily to hedge or protect from adverse movements in securities
prices, currency rates or interest rates. The use of futures contracts and
options may involve risks such as the possibility of illiquid markets or
imperfect correlation between the value of the contracts and the underlying
securities, or that the counterparty will fail to perform its obligations.
Janus Equity Funds / April 30, 1999 79
<PAGE>
Notes to Financial Statements (continued)
ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
DIVIDEND DISTRIBUTIONS AND EXPENSES
Dividends for Janus Balanced, Janus Equity Income and Janus Growth and Income
Funds are declared and distributed quarterly, and capital gains (if any) are
distributed annually. The remaining eleven Equity Funds generally declare and
distribute dividends and capital gains (if any) annually. Each Fund bears
expenses incurred specifically on its behalf as well as a portion of general
expenses.
FEDERAL INCOME TAXES
The Funds intend to distribute to shareholders all taxable investment income and
realized gains and otherwise comply with the Internal Revenue Code applicable to
regulated investment companies.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
The advisory agreement with the Funds spells out the fees that the Funds must
pay for the period ended April 30, 1999. Each of the Funds was subject to the
following schedule:
<TABLE>
<CAPTION>
Average
Daily Net Annual Rate
Fee Schedule Assets of Fund Percentage(%)
- --------------------------------------------------------
<S> <C> <C>
Equity Funds First $300 .75
million .70
Next $200 million .65
Over $500 million
- --------------------------------------------------------
</TABLE>
Janus Service Corporation ("Janus Service"), a wholly owned subsidiary of Janus
Capital, receives an annual fee of 0.16% of average net assets per Fund, plus
$4.00 per shareholder account (excluding Janus, Janus Venture and Janus Overseas
Funds) for transfer agent services plus reimbursement of certain out-of-pocket
expenses (primarily postage and telephone charges).
Officers and certain trustees of the Funds are also officers and/or directors of
Janus Capital; however, they receive no compensation from the Funds.
DST Systems, Inc. (DST), an affiliate of Janus Capital through a degree of
common ownership, provides fund accounting and shareholder accounting systems to
the Funds. DST Securities, Inc., a wholly owned subsidiary of DST, is designated
as an introductory broker on certain portfolio transactions. Brokerage
commissions paid to DST Securities, Inc. serve to reduce transfer agent fees and
expenses. Brokerage commissions paid, fees reduced and the net fees paid to DST
for the year or period ended April 30, 1999, are noted below.
<TABLE>
<CAPTION>
DST Securities, Inc. Fund
Commissions Expense
Paid* Reduction* DST Fees
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Fund $264,233 $198,175 $1,505,519
Janus Balanced Fund 3,274 2,456 96,874
Janus Enterprise Fund -- -- 98,807
Janus Equity Income Fund -- -- 43,620
Janus Global Life Sciences Fund -- -- 23,133
Janus Global Technology Fund -- -- 36,677
Janus Growth and Income Fund 12,732 9,549 342,302
Janus Mercury Fund 53,103 39,827 317,477
Janus Olympus Fund 6,177 4,633 138,003
Janus Overseas Fund 5,354 4,015 222,051
Janus Special Situations Fund 6,688 5,016 163,066
Janus Twenty Fund 17,977 13,483 905,123
Janus Venture Fund -- -- 198,674
Janus Worldwide Fund 195,571 146,678 761,506
- ----------------------------------------------------------------------------------------------------------------------
*The difference between commissions paid to DST Securities, Inc. and expenses reduced constituted commissions paid to
an unaffiliated clearing broker.
</TABLE>
80 Janus Equity Funds / April 30, 1999
<PAGE>
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 further taxable gains
distributions. These carryovers expire 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
as follows:
<TABLE>
<CAPTION>
Net
Net Capital Loss Federal Tax Unrealized Unrealized Appreciation/
Carryovers Cost Appreciation (Depreciation) (Depreciation)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Janus Fund -- $18,641,630,992 $11,328,819,326 $(329,318,288) $10,999,501,038
Janus Balanced Fund -- 1,831,527,071 341,589,235 (40,000,738) 301,588,497
Janus Enterprise Fund -- 773,494,772 349,191,729 (21,008,666) 328,183,063
Janus Equity Income Fund -- 503,473,575 141,484,434 (10,843,437) 130,640,997
Janus Global Life Sciences
Fund -- 183,382,521 14,313,808 (8,956,723) 5,357,085
Janus Global Technology Fund -- 814,341,439 154,536,217 (18,814,489) 135,721,728
Janus Growth and Income Fund -- 3,235,488,683 1,400,234,746 (50,404,693) 1,349,830,053
Janus Mercury Fund -- 4,121,851,209 1,580,794,623 (69,135,287) 1,511,659,336
Janus Olympus Fund $ (3,168,252) 1,685,021,088 763,011,801 (26,393,197) 736,618,604
Janus Overseas Fund (185,573,334) 3,206,180,936 1,260,285,686 (58,640,558) 1,201,645,128
Janus Special Situations Fund -- 798,689,406 237,722,002 (40,700,285) 197,021,717
Janus Twenty Fund -- 16,405,335,356 9,862,233,069 (178,500,548) 9,683,732,521
Janus Venture Fund -- 953,779,257 502,317,174 (47,123,598) 455,193,576
Janus Worldwide Fund (355,430,675) 13,233,973,193 6,015,499,309 (252,913,301) 5,762,586,008
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Equity Funds / April 30, 1999 81
<PAGE>
Explanations 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,
82 Janus Equity Funds / April 30, 1999
<PAGE>
the receivable for securities sold but not yet settled, the receivable for
dividends declared but not yet received on stocks owned and the receivable for
Fund shares sold to investors but not yet settled. The Funds' liabilities
include payables for securities purchased but not yet settled, Fund shares
redeemed but not yet paid and expenses owed but not yet paid. 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 "Capital Share Transactions."
"Capital Shares" refers to 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.
Janus Equity Funds / April 30, 1999 83
<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.
84 Janus Equity Funds / April 30, 1999
<PAGE>
Janus Equity Funds / April 30, 1999 85
<PAGE>
[JANUS LOGO]
100 Fillmore Street
Denver, Colorado 80206-4923
1-800-525-3713
Funds distributed by Janus Distributors, Inc. Member NASD.
[RECYCLED PAPER LOGO]
