Janus | Equity Funds
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1999 Annual Report
Janus Fund
Janus Balanced Fund
Janus Enterprise Fund
Janus Equity Income Fund
Janus Global Life Sciences Fund
Janus Global Technology Fund
Janus Growth and Income Fund
Janus Mercury Fund
Janus Olympus Fund
Janus Overseas Fund
Janus Special Situations Fund
Janus Twenty Fund
Janus Venture Fund
Janus Worldwide Fund
[LOGO] Janus
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Janus | Equity Funds
Table of Contents
To Our Shareholders ...................................... 1
Portfolio Manager's Commentary and Schedule of Investments
Janus Fund .......................................... 2
Janus Balanced Fund ................................. 6
Janus Enterprise Fund ............................... 11
Janus Equity Income Fund ............................ 14
Janus Global Life Sciences Fund ..................... 18
Janus Global Technology Fund ........................ 21
Janus Growth and Income Fund ........................ 25
Janus Mercury Fund .................................. 30
Janus Olympus Fund .................................. 34
Janus Overseas Fund ................................. 38
Janus Special Situations Fund ....................... 42
Janus Twenty Fund ................................... 45
Janus Venture Fund .................................. 48
Janus Worldwide Fund ................................ 52
Statements of Operations ................................. 56
Statements of Assets and Liabilities ..................... 58
Statements of Changes in Net Assets ...................... 60
Financial Highlights ..................................... 64
Notes to Schedules of Investments ........................ 71
Notes to Financial Statements ............................ 73
Explanations of Charts and Tables ........................ 76
Report of Independent Accountants ........................ 79
Year 2000 Discussion ..................................... 79
[LOGO] Janus
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To Our | Shareholders
[PHOTO]
Tom Bailey
chairman
It's not often that financial markets move from substantial lows to
record-breaking highs within a 12-month period. Yet, that's precisely what
happened to the global equity markets this past fiscal year.
After starting the period at depressed levels - a consequence of last fall's
worldwide credit crunch - the markets gained momentum late in 1998, spurred by a
succession of global interest rate cuts that helped stabilize economies
throughout the world. A rapidly expanding U.S. economy and robust corporate
earnings also aided the recovery, eventually turning it into a full-blown rally
that, in August, carried a number of stocks to record highs.
Despite the absence of inflation, aided in part by ongoing advances in
technology, the U.S. economy's torrid growth rate led to a general uneasiness
among investors late in the period, convincing them that higher prices could be
on the horizon. In turn, Federal Reserve policymakers raised short-term interest
rates by a quarter-point in June, then matched it with another hike in August -
two widely anticipated moves that had been discounted into most stock prices and
therefore had minimal impact on the market.
At this writing, opinions are split as to the need for additional rate hikes.
I'm in the camp that believes an economic slowdown would be positive for the
market, allowing company earnings to catch up with their price multiples. To
that extent, I was encouraged by the Fed's attempt to rein in growth and keep
inflation at bay.
Given the volatility we've seen during this fiscal year, I couldn't be more
pleased with the strong results posted by our funds. This performance clearly
demonstrates our success in continuing to identify dynamic, visionary companies
capable of growing in any economic environment.
In closing, I'd like to remind you that every decision we make at Janus is
driven by our goal of delivering superior performance across all our funds. With
this in mind, we recently announced several significant advancements for our
investment team, including the elevation of Jim Craig to full-time chief
investment officer and director of research, where he will oversee the ongoing
strengthening of our collective stock-picking. Given his expanded role, Jim will
relinquish his portfolio management responsibilities, entrusting Janus Fund to
Blaine Rollins who, in turn, will hand his management duties for Janus Equity
Income and Janus Balanced Funds over to Karen Reidy. Meanwhile, Jim will step
aside as co-portfolio manager of Janus Venture Fund with Jonathan Coleman and
Will Bales assuming full responsibility. I have every confidence that each of
these individuals is ready for this new chapter in their careers and believe
these changes will help Janus continue to deliver superior performance for many
years to come.
As always, thank you for your continued trust in Janus.
/s/ Tom
Tom Bailey
Past performance does not guarantee future results.
Janus Equity Funds / October 31, 1999 1
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Janus | Fund
[PHOTO]
James Craig
portfolio manager
Janus Fund returned an impressive 56.75% for the fiscal year ended October 31,
1999, well ahead of its benchmark, the S&P 500 Index, which returned 25.66%.(1)
These results enabled the Fund to maintain a top-quartile ranking for the
12-month period, placing it 50th out of 278 capital appreciation funds tracked
by Lipper, Inc., a leading mutual fund rating company.(2)
While the Fund's substantial gains can be attributed to our success in
identifying stocks that work in any economic environment, I believe these gains
also somewhat reflect an unusual reporting period. For example, consider that at
the start of the period the financial markets were in the depths of despair,
suffering from repercussions of the Russian debt debacle and the ensuing
worldwide credit crunch. However, following a succession of global interest rate
cuts near year-end 1998, the markets rallied. Further fueling the upswing were
strong corporate earnings, which helped propel the markets to much higher levels
despite a pair of rate hikes by the Federal Reserve toward the end of the
period.
Macroeconomic events notwithstanding, we held firm to our strategy of investing
in dynamic, visionary companies that are contributing to the overall growth of
the economy. That said, the Fund's largest weightings were in the technology,
cable and media groups.
Technology stocks were undisputedly the strongest performers for the Fund. As
businesses increasingly rely on Internet-related technologies to increase
production and reduce costs, names like Cisco Systems and Sun Microsystems, two
of the Fund's larger positions, continue to benefit. Cisco simply is the
Internet, and easily dominates the data communications equipment market.
Meanwhile, Sun's intense focus on optimizing computer systems for e-commerce has
enabled it to leapfrog its competition. Outside the Internet universe, our
winners included semiconductor companies Texas Instruments, Linear Technology
and Maxim Integrated Products. Advanced technologies and products developed by
these three companies are enabling the miniaturization of devices such as
computers, camcorders and wireless phones, while also making it possible to
transmit data and voice at faster speeds.
Other contributors to our overall gains were cable operators Comcast Corporation
and Cox Communications, companies that are fulfilling their promise to deliver a
variety of new services through a single platform. In effect, subscribers will
soon be able to shop on the Internet, receive live feeds from national sporting
events or choose from hundreds of channels - all through their cable connection.
Another company capitalizing on cable's resurgence is media conglomerate Time
Warner, one of the largest providers of programming and a sizeable position in
the Fund.
Several of our other media holdings also appreciated in value, particularly our
television and radio stocks. Take Univision Communications, for example, the
world's leading Spanish-language television network. Here in the U.S., the
Hispanic population is one of the fastest-growing audiences, prompting
advertisers to allocate more of their budgets to Univision. At the same time,
radio broadcasters are averaging an impressive 15% to 18% annual advertising
growth rate. While Clear Channel Communications and Infinity Broadcasting are
among those benefiting from this trend, they're also capitalizing on the
consolidation of this industry, helping our positions in both to rise
substantially.
Portfolio Profile October 31, 1999 October 31, 1998
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Equities 94.5% 91.8%
Foreign 8.7% 4.6%
European 4.8% 2.9%
Top 10 Equities (% of Assets) 40.9% 44.4%
Number of Stocks 62 55
Cash & Cash Equivalents 5.5% 8.2%
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Top 5 Industries October 31, 1999 October 31, 1998
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Cable Television 8.2% 14.6%
Diversified Operations 7.3% 5.8%
Multimedia 7.2% 7.8%
Computers - Micro 6.6% 2.5%
Circuits 5.7% 1.8%
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Top 10 Equity Holdings October 31, 1999 October 31, 1998
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Time Warner, Inc. 5.8% 5.5%
Comcast Corp. - Special Class A 5.7% 5.4%
Sun Microsystems, Inc. 5.5% --
Cisco Systems, Inc. 4.2% 5.7%
Tyco International, Ltd. 3.6% 4.2%
General Electric Co. 3.5% 1.6%
Texas Instruments, Inc. 3.3% 1.8%
Bank of New York Company, Inc. 3.3% 3.0%
American Express Co. 3.0% --
Linear Technology Corp. 3.0% 2.2%
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(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a capital appreciation fund 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 October 31,
1999, Janus Fund ranked 15/102 of capital appreciation funds for the 5-year
pseriod and 7/54 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 / October 31, 1999
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Unfortunately, not all of our stocks contributed to the Fund's solid returns.
One of our larger disappointments was McKesson HBOC, a provider of
pharmaceutical supply management and information technology for the healthcare
industry. McKesson's stock pulled back on news of accounting irregularities at
its software division, and we consequently liquidated our position at a loss.
Going forward, it remains to be seen whether the threat of inflation will call
for further interest rate increases - an uncertainty that could create near-term
volatility in the markets. For the most part, however, we believe stocks have
already discounted this fear and that the high-growth companies we focus on will
continue to produce strong results.
In closing, I'd like to comment on my recent decision to hand the reins of Janus
Fund over to my colleague Blaine Rollins. Blaine's track record as portfolio
manager of Janus Balanced and Janus Equity Income Funds speaks volumes about his
stock-picking abilities. Furthermore, having worked for many years with Blaine
in his position as assistant portfolio manager of Janus Fund, I can confidently
say he's more than qualified for this new responsibility. Meanwhile, my role
will be evolving, serving not only as chief investment officer, but also as
director of research, where I'll be in a position to more directly impact
performance for all our shareholders. It's been a pleasure working on your
behalf, and, as always, I thank you for your continued investment in Janus Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999. The upper
and lower right quadrants reflect the ending value of the hypothetical
investment in Janus Fund ($1,379,118) as compared to the S&P 500 Index
($468,858).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 56.75%
Five Year, 26.81%
Ten Year, 19.13%
Since 2/5/70*, 18.02%
Janus Fund - $1,379,118
S&P 500 Index - $468,858
*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
Shares or Principal Amount Market Value
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Common Stock - 94.5%
Audio and Video Products - 0.3%
1,090,505 Gemstar International Group, Ltd.* ..... $ 94,737,623
Automotive - Truck Parts and Equipment - 0.2%
3,585,095 Federal-Mogul Corp.# ................... 90,075,512
Brewery - 1.0%
4,970,390 Anheuser-Busch Companies, Inc. ......... 356,936,132
Broadcast Services and Programming - 3.7%
17,642,275 AT&T Corp./Liberty Media Group - Class A* 700,177,789
7,937,873 Clear Channel Communications, Inc.* .... 638,006,542
1,338,184,331
Cable Television - 8.2%
3,351,470 Adelphia Communications Corp. - Class A*,# 183,074,049
48,089,690 Comcast Corp. - Special Class A# ....... 2,025,778,191
15,913,388 Cox Communications, Inc. - Class A* .... 723,064,567
2,931,916,807
Cellular Telecommunications - 4.5%
5,290,550 Nextel Communications, Inc. - Class A* . 455,979,278
3,372 NTT Mobile Communications Network, Inc. 89,502,067
3,451,830 Sprint Corp./PCS Group* ................ 286,286,151
10,222,150 Vodafone AirTouch PLC (ADR) ............ 490,024,316
3,185,865 VoiceStream Wireless Corp.* ............ 314,604,169
1,636,395,981
Chemicals - Specialty - 0.1%
1,094,400 Cytec Industries, Inc.*,# .............. $ 28,249,200
Circuits - 5.7%
15,225,430 Linear Technology Corp.# ............... 1,064,828,511
12,481,900 Maxim Integrated Products, Inc.*,# ..... 985,289,981
2,050,118,492
Commercial Banks - 1.3%
9,964,830 Firstar Corp. .......................... 292,716,881
259,900 M&T Bank Corp. ......................... 128,780,450
628,490 State Street Corp. ..................... 47,843,801
469,341,132
Commercial Services - 0.8%
7,284,065 Paychex, Inc. .......................... 286,810,059
Computer Software - 1.7%
6,604,740 Microsoft Corp.* ....................... 611,351,246
Computers - Memory Devices - 0.1%
570,555 EMC Corp.* ............................. 41,650,515
Computers - Micro - 6.6%
3,546,425 Apple Computer, Inc.* .................. 284,157,303
2,952,370 Dell Computer Corp.* ................... 118,463,846
18,529,260 Sun Microsystems, Inc.* ................ 1,960,627,324
2,363,248,473
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 3
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Janus | Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
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Cosmetics and Toiletries - 0.5%
2,934,975 Colgate-Palmolive Co. .................. $ 177,565,987
Cruise Lines - 0.2%
1,573,800 Royal Caribbean Cruises, Ltd. .......... 83,509,763
Data Processing and Management - 0.9%
7,024,500 Automatic Data Processing, Inc. ........ 338,493,094
Distribution and Wholesale - 1.4%
6,403,832 Costco Wholesale Corp.* ................ 514,307,758
Diversified Financial Services - 0.7%
4,470,000 Citigroup, Inc. ........................ 241,938,750
Diversified Operations - 7.3%
9,275,085 General Electric Co. ................... 1,257,353,710
32,742,020 Tyco International, Ltd. ............... 1,307,634,424
2,564,988,134
Electronic Components - Semiconductors - 3.4%
13,234,160 Texas Instruments, Inc. ................ 1,187,765,860
Finance - Credit Card - 3.0%
7,051,110 American Express Co. ................... 1,085,870,940
Finance - Investment Bankers/Brokers - 2.6%
23,876,720 Charles Schwab Corp. ................... 929,699,785
Internet Software - 1.6%
4,400,000 America Online, Inc.* .................. 570,625,000
Life and Health Insurance - 0.7%
16,909,059 Prudential PLC** ....................... 264,836,285
Medical - Biomedical and Genetic - 1.1%
2,776,600 Genentech, Inc.* ....................... 404,689,450
Medical - Drugs - 2.7%
7,679,715 Pfizer, Inc. ........................... 303,348,743
4,666,235 Pharmacia & Upjohn, Inc. ............... 251,685,050
8,498,790 Schering-Plough Corp. .................. 420,690,105
975,723,898
Medical Instruments - 0.9%
9,738,160 Medtronic, Inc. ........................ 337,183,790
Money Center Banks - 3.3%
28,339,910 Bank of New York Company, Inc. ......... 1,186,733,731
Multi-Line Insurance - 2.8%
9,797,683 American International Group, Inc. ..... 1,008,548,994
Multimedia - 7.2%
29,544,687 Time Warner, Inc. ...................... 2,058,895,375
11,847,950 Viacom, Inc. - Class B* ................ 530,195,763
2,589,091,138
Networking Products - 4.2%
20,318,400 Cisco Systems, Inc.* ................... 1,503,561,600
Office Automation and Equipment - 0.5%
3,728,600 Pitney Bowes, Inc. ..................... 169,884,338
Optical Supplies - 0.5%
1,674,320 Allergan, Inc. ......................... 179,780,110
Pipelines - 2.9%
25,583,370 Enron Corp. ............................ 1,021,735,839
Property and Casualty Insurance - 0.6%
2,255,755 Progressive Corp. ...................... 208,798,322
Radio - 0.9%
8,897,825 Infinity Broadcasting Corp. - Class A*,# 307,531,077
Retail - Building Products - 0.8%
3,607,950 Home Depot, Inc. ....................... 272,400,225
Retail - Discount - 1.4%
8,996,715 Wal-Mart Stores, Inc. .................. $ 510,001,282
Retail - Office Supplies - 0.9%
13,968,945 Staples, Inc.* ......................... 309,935,966
Retail - Restaurants - 0.6%
4,886,560 McDonald's Corp. ....................... 201,570,600
Super-Regional Banks - 0.6%
2,076,795 Northern Trust Corp. ................... 200,540,517
Telecommunication Equipment - 4.6%
10,724,545 Lucent Technologies, Inc. .............. 689,052,016
2,028,280 Nokia Oyj .............................. 231,963,736
6,394,031 Nokia Oyj (ADR) ........................ 738,910,207
1,659,925,959
Telecommunication Services - 0.3%
1,550,000 NTL, Inc.* ............................. 116,831,250
Television - 1.2%
5,290,674 Univision Communications, Inc. - Class A*,# 450,037,957
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Total Common Stock (cost $20,675,932,398) ................. 33,873,122,902
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Short-Term Corporate Notes - 0.8%
Associates Corp. N.A.
$ 800,000 5.30%, 11/1/99 ....................... 800,000
Comerica Bank, Detroit
135,000,000 5.29%, 11/1/99 ....................... 135,000,000
JP Morgan Securities
50,000,000 4.82%, 12/10/99 ...................... 49,738,917
UBS Financial, Inc.
100,000,000 4.90%, 12/13/99 ...................... 99,428,333
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Total Short-Term Corporate Notes
(amortized cost $284,967,250) ........................... 284,967,250
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Time Deposits - 1.7%
SouthTrust Bank EDT
596,500,000 5.1875%, 11/1/99 (cost $596,500,000) . 596,500,000
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U.S. Government Agencies - 3.1%
Fannie Mae:
100,000,000 5.10%, 11/10/99 ...................... 99,872,500
100,000,000 4.80%, 11/26/99 ...................... 99,666,667
50,000,000 5.21%, 12/2/99 ....................... 49,775,681
100,000,000 4.88%, 12/8/99 ....................... 99,486,111
100,000,000 5.00%, 12/10/99 ...................... 99,458,333
50,000,000 4.74%, 12/15/99 ...................... 49,682,222
50,000,000 5.52%, 1/20/00 ....................... 49,392,000
100,000,000 5.52%, 1/26/00 ....................... 98,693,000
100,000,000 5.52%, 2/18/00 ....................... 98,334,000
50,000,000 5.54%, 4/24/00 ....................... 48,663,000
Federal Home Loan Bank System
100,000,000 4.67%, 4/10/00 ....................... 97,620,000
Freddie Mac:
100,000,000 4.80%, 11/4/99 ....................... 99,960,000
50,000,000 4.80%, 11/22/99 ...................... 49,860,000
75,000,000 5.10%, 12/8/99 ....................... 74,606,104
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Total U.S. Government Agencies (cost $1,115,329,229) ...... 1,115,069,618
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Total Investments (total cost $22,672,728,877) - 100.1% ... 35,869,659,770
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Liabilities, net of Cash, Receivables and Other Assets - (0.1%) (34,930,106)
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Net Assets - 100% ......................................... $ 35,834,729,664
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See Notes to Schedules of Investments.
4 Janus Equity Funds / October 31, 1999
<PAGE>
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
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Bermuda 3.6% $ 1,307,634,424
Finland 2.7% 970,873,943
Japan 0.3% 89,502,067
United Kingdom 2.1% 754,860,601
United States++ 91.3% 32,746,788,735
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Total 100.0% $ 35,869,659,770
++Includes Short-Term Securities (85.7% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 80,000,000 $ 131,544,000 $ 920,000
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Total $ 131,544,000 $ 920,000
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 5
<PAGE>
Janus | Balanced Fund
[PHOTO]
Blaine Rollins
portfolio manager
Janus Balanced Fund gained 29.89% for the fiscal year ended October 31, 1999,
outpacing the S&P 500 Index, which returned 25.66%.(1) This helped the Fund
achieve top-decile performance, ranking 7th out of 430 balanced funds tracked by
Lipper, Inc., a leading mutual fund rating company.(2)
The market, while trending upward, turned cautious during the year. Continued
strength in the U.S. economy created anxiety about a potential spike in
inflation, which in turn led to higher long-term interest rates. In this
uncertain environment, the Fund's fixed-income position, comprising about half
of the portfolio, underperformed. Our intermediate-maturity Treasury and
corporate bond holdings suffered in particular, declining nearly 10% in
principal value. On a positive note, we selectively added attractive high-yield
instruments, which helped to boost yield.
Our losses in the fixed-income markets were more than offset by excellent gains
on the equity side. For that, we have our team of outstanding research analysts
to thank. These are the individuals whose countless hours spent poring over
financial data and weeks on the road visiting our companies in person have
resulted in exceptionally satisfying performance.
Turning to a discussion of our holdings, even though the Fund is conservatively
positioned, we've been able to capture the extraordinary growth of the Internet
by investing in technology companies such as Cisco Systems and Exodus
Communications, among the most stable revenue producers in this fast-moving
industry. As the leading provider of networking equipment and architecture,
Cisco is benefiting both from the phenomenal expansion of the Web as well as
from the buildout of fiber-optic telecommunications networks nationwide. Our
convertible bonds in Exodus Communications, which supplies network management
solutions for "mission-critical" Internet operations, offered additional
stability. Both companies significantly enhanced the Fund's performance, and we
remain highly optimistic about their growth prospects going forward.
Although the financial services area experienced a setback, American Express has
enjoyed remarkable success transforming itself from a charge card company to one
that is uniquely positioned to leverage the Internet revolution. As one of the
strongest brands in the industry, American Express has continued to gain "wallet
share" by segmenting its customers and differentiating itself via new product
offerings. One of the most exciting of these is its recently introduced "Blue
Card," which has a "smart" computer chip imbedded in it containing personal data
and spending history. With its forward-thinking business model, we believe that
American Express is poised for tremendous growth as we head into the next
millennium.
In retailing, our positions in Home Depot and Costco were standout performers.
Home Depot recently launched a new subsidiary called Expo Design Center, an
innovative concept we believe has the potential to really take off. Basically,
Expo is a one-stop home remodeling center. Customers can select from the store's
various mini-kitchens and mini-bathrooms, then be paired with a contractor at
affordable prices. Currently, about a dozen stores are in place nationwide, with
plans to open 200
Portfolio Profile October 31, 1999 October 31, 1998
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Equities 36.9% 36.9%
Fixed-Income Securities
U.S. Treasury Notes 11.3% 9.9%
Investment-Grade
Corporate Bonds 17.7% 7.2%
High-Yield/High-Risk
Corporate Bonds 19.5% 19.7%
Preferred Stock 12.4% 17.4%
Top 10 Equities/Preferred
(% of Assets) 23.4% 29.6%
Number of Stocks 53 47
Cash & Cash Equivalents 2.2% 8.9%
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Top 5 Industries October 31, 1999 October 31, 1998
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Cable Television 13.7% 18.4%
Electric - Integrated 6.9% 6.7%
Multimedia 5.6% 2.8%
Telecommunication Services 5.0% 2.0%
Cruise Lines 3.8% 5.5%
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Top 10 Equity/Preferred Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) 6.9% 6.7%
Viacom, Inc. - Class B 3.3% --
Bank of New York Company, Inc. 2.1% 1.4%
Royal Caribbean Cruises, Ltd.
convertible, 7.25% 1.8% 3.4%
Charles Schwab Corp. 1.7% 1.7%
Comcast Corp. - Special Class A 1.6% 3.3%
Home Depot, Inc. 1.6% --
Univision Communications, Inc. - Class A 1.5% 1.1%
American Express Co. 1.5% --
Enron Corp. 1.4% --
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(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a balanced fund 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 October 31, 1999, Janus Balanced Fund ranked 4/206 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.
6 Janus Equity Funds / October 31, 1999
<PAGE>
within the next five years. Likewise, membership-based retailer Costco is also
adding more stores around the country as its volume discount pricing is
contributing to customer growth. We believe the long-term prospects for both
holdings are extremely strong.
Despite our solid performance, a few of our companies fell short of
expectations. Staffing agency Robert Half International suffered as an expanding
economy led to a shortage of temporary workers. The resulting competition for a
smaller pool of employees caused Robert Half's top-line growth to decline, and
we sold the position. Another disappointment was automotive supplier
Federal-Mogul. While we remain supportive of management, we feared that a
slowdown in the auto parts aftermarket would lead to a reduction in top-line
growth. Consequently, we decided to liquidate the stock and redeploy our assets
in other areas.
In conclusion, I want to emphasize that, as always, we are steadfastly focused
on finding companies with strong growth potential, robust earnings and leading
market positions. This strategy will also guide assistant portfolio manager
Karen Reidy, who will assume management responsibilities for the Fund at
year-end. Karen has proven an invaluable team member in the past, and we are
confident in her abilities to lead the Fund in the future.
Thank you for your investment in Janus Balanced Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31,
1999. The upper and lower right quadrants reflect the ending value of the
hypothetical investment in Janus Balanced Fund, ($32,888) as compared to the S&P
500 Index ($38,490) and the Lehman Brothers Government/Corporate Bond Index
($15,784).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 29.89%
Five Year, 21.18%
Since 9/1/92*, 18.08%
Janus Balanced Fund - $32,888
S&P 500 Index - $38,490
Lehman Brothers Government/
Corporate Bond Index - $15,784
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 36.9%
Brewery - 0.3%
128,805 Anheuser-Busch Companies, Inc. ......... $ 9,249,809
Broadcast Services and Programming - 0.5%
348,770 AT&T Corp./Liberty Media Group - Class A* 13,841,809
Cable Television - 2.0%
1,106,082 Comcast Corp. - Special Class A ........ 46,593,704
273,604 Cox Communications, Inc. - Class A* .... 12,431,882
59,025,586
Circuits - 1.6%
321,460 Linear Technology Corp. ................ 22,482,109
295,190 Maxim Integrated Products, Inc.* ....... 23,301,561
45,783,670
Commercial Banks - 0.7%
372,175 Carolina First Corp. ................... 7,699,370
206,475 Firstar Corp. .......................... 6,065,203
12,475 M&T Bank Corp. ......................... 6,181,362
19,945,935
Commercial Services - 0.5%
363,052 Paychex, Inc. .......................... 14,295,172
Cruise Lines - 1.3%
389,865 Carnival Corp. ......................... 17,348,993
407,775 Royal Caribbean Cruises, Ltd. .......... 21,637,561
38,986,554
Data Processing and Management - 1.0%
602,765 Automatic Data Processing, Inc. ........ $ 29,045,738
Distribution and Wholesale - 0.8%
311,535 Costco Wholesale Corp.* ................ 25,020,155
Diversified Operations - 1.0%
116,415 General Electric Co. ................... 15,781,508
343,350 Tyco International, Ltd. ............... 13,712,541
29,494,049
Electronic Components - Semiconductors - 0.7%
216,840 Texas Instruments, Inc. ................ 19,461,390
Finance - Credit Card - 1.5%
280,810 American Express Co. ................... 43,244,740
Finance - Investment Bankers/Brokers - 1.7%
1,250,480 Charles Schwab Corp. ................... 48,690,565
Instruments - Scientific - 0.6%
379,795 Dionex Corp.* .......................... 16,877,140
Life and Health Insurance - 2.8%
2,241,827 Prudential PLC** ....................... 35,112,370
1,041,990 Reinsurance Group of America, Inc. ..... 34,646,134
430,435 StanCorp Financial Group, Inc. ......... 10,922,288
80,680,792
Medical - Biomedical and Genetic - 0.7%
150,000 Genentech, Inc.* ....................... 21,862,500
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 7
<PAGE>
Janus| Balanced Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical - Drugs - 1.1%
307,940 Pharmacia & Upjohn, Inc. ............... $ 16,609,514
286,675 Schering-Plough Corp. .................. 14,190,413
30,799,927
Medical Instruments - 0.3%
285,090 Medtronic, Inc. ........................ 9,871,241
Money Center Banks - 2.1%
1,448,705 Bank of New York Company, Inc. ......... 60,664,522
Multimedia - 3.3%
2,175,280 Viacom, Inc. - Class B* ................ 97,343,780
Networking Products - 1.2%
485,030 Cisco Systems, Inc.* ................... 35,892,220
Optical Supplies - 0.4%
112,365 Allergan, Inc. ......................... 12,065,192
Pipelines - 1.4%
1,027,610 Enron Corp. ............................ 41,040,174
Radio - 1.6%
237,540 Hispanic Broadcasting Corp.* ........... 19,240,740
805,360 Infinity Broadcasting Corp. - Class A* . 27,835,255
47,075,995
Retail - Building Products - 1.6%
609,764 Home Depot, Inc. ....................... 46,037,182
Retail - Computer Equipment - 0.5%
415,340 Insight Enterprises, Inc.* ............. 15,523,333
Retail - Internet - 0.6%
69,150 Amazon.com, Inc.* ...................... 4,883,719
91,710 eBay, Inc.* ............................ 12,392,314
17,276,033
Retail - Office Supplies - 1.0%
1,300,290 Staples, Inc.* ......................... 28,850,184
Retail - Restaurants - 0.6%
462,780 McDonald's Corp. ....................... 19,089,675
Super-Regional Banks - 0.4%
130,945 Northern Trust Corp. ................... 12,644,377
Telecommunication Equipment - 1.6%
339,785 Lucent Technologies, Inc. .............. 21,831,186
212,100 Nokia Oyj (ADR) ........................ 24,510,806
46,341,992
Television - 1.5%
516,957 Univision Communications, Inc. - Class A* 43,973,655
- --------------------------------------------------------------------------------
Total Common Stock (cost $800,644,962) .................... 1,079,995,086
- --------------------------------------------------------------------------------
Corporate Notes - 34.7%
Advertising Sales - 0.5%
$ 11,877,000 Lamar Advertising Co., 5.25%
convertible notes, due 9/15/06 ....... 15,930,026
Automotive - Truck Parts and Equipment - 0.8%
Federal-Mogul Corp.:
12,000,000 7.375%, notes, due 1/15/06 ........... 11,010,000
13,175,000 7.50%, company guaranteed notes
due 1/15/09 .......................... 11,709,281
22,719,281
Broadcast Services and Programming - 0.8%
22,500,000 AT&T Corp./Liberty Media Group, 7.875%
notes, due 7/15/09+ .................. 22,584,375
Cable Television - 8.7%
Adelphia Communications Corp.:
$ 10,295,000 9.25%, senior notes, due 10/1/02 ..... $ 10,423,687
11,980,000 10.50%, senior notes, due 7/15/04 .... 12,519,100
12,380,000 8.375%, senior notes, due 2/1/08 ..... 11,606,250
2,000,000 7.75%, senior notes, due 1/15/09 ..... 1,807,500
52,200,000 7.875%, senior notes, due 5/1/09 ..... 47,241,000
1,500,000 Century Communications Corp., 8.875%
senior notes, due 1/15/07 ............ 1,443,750
62,183,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09 ..... 58,762,935
Cox Communcations, Inc.:
15,700,000 7.00%, notes, due 8/15/01 ............ 15,719,625
18,800,000 7.50%, notes, due 8/15/04 ............ 18,917,500
13,000,000 7.75%, notes, due 8/15/06 ............ 13,081,250
14,500,000 7.875%, notes, due 8/15/09 ........... 14,989,375
11,000,000 Falcon Holdings Group L.P., 8.375%
debentures, due 4/15/10 .............. 10,945,000
6,000,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 6,315,000
11,905,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 ............ 11,949,644
4,000,000 Lenfest Communications, Inc., 7.625%
senior notes, due 2/15/08 ............ 4,020,000
Mediacom L.L.C.:
11,500,000 8.50%, senior notes, due 4/15/08 ..... 10,695,000
3,750,000 7.875%, senior notes, due 2/15/11 .... 3,281,250
253,717,866
Casino Hotels - 0.1%
1,759,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 1,802,975
Cellular Telecommunications - 1.0%
2,160,000 Innova S. de R.L., 12.875%
senior notes, due 4/1/07 ............. 1,787,400
Orange PLC:
16,160,000 8.00%, senior notes, due 8/1/08 ...... 16,180,200
3,300,000 9.00%, senior notes, due 6/1/09+ ..... 3,407,250
8,750,000 Vodafone AirTouch PLC, 6.65%
notes, due 5/1/08 .................... 8,345,312
29,720,162
Computer Services - 0.1%
1,980,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ............. 1,744,875
Computers - Micro - 1.7%
8,375,000 Dell Computer Corp., 6.55%
senior notes, due 4/15/08 ............ 7,935,312
6,310,000 EMC Corp., 6.00%
convertible subordinated notes
due 5/15/04 .......................... 6,972,550
IBM Corp.:
4,000,000 6.375%, notes, due 6/15/00 ........... 4,010,000
16,500,000 5.375%, notes, due 2/1/09 ............ 14,870,625
16,200,000 Sun Microsystems, Inc., 7.65%
senior notes, due 8/15/09 ............ 16,524,000
50,312,487
Cosmetics and Toiletries - 0.4%
3,050,000 AKI, Inc., 10.50%
senior notes, due 7/1/08 ............. 2,931,813
10,000,000 Procter and Gamble Co., 5.25%
notes, due 9/15/03 ................... 9,525,000
12,456,813
See Notes to Schedules of Investments.
8 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Cruise Lines - 0.7%
$ 4,000,000 Carnival Corp., 6.15%
notes, due 4/15/08 ................... $ 3,695,000
Royal Caribbean Cruises, Ltd.:
11,300,000 7.00%, senior notes, due 10/15/07 .... 10,833,875
6,866,000 6.75%, senior notes, due 3/15/08 ..... 6,436,875
20,965,750
Diversified Operations - 2.4%
Tyco International Group S.A.:
18,750,000 6.875%, notes, due 9/5/02+ ........... 18,609,375
17,120,000 6.125%, company guaranteed notes
due 11/1/08 .......................... 15,622,000
35,300,000 6.125%, company guaranteed notes
due 1/15/09 .......................... 32,034,750
4,000,000 Warner-Lambert Co., 6.00%
notes, due 1/15/08 ................... 3,780,000
70,046,125
Food - Canned - 0.5%
15,500,000 Campbell Soup Co., 4.75%
notes, due 10/1/03 ................... 14,570,000
Food - Retail - 0.5%
10,000,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08 . 9,875,000
907,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 . 868,453
5,500,000 Safeway, Inc., 6.50%
notes, due 11/15/08 .................. 5,135,625
15,879,078
Internet Software - 1.4%
Exodus Communications, Inc.:
4,865,000 5.00%, convertible subordinated notes
due 3/15/06+ ......................... 18,639,031
3,634,000 11.25%, senior notes, due 7/1/08 ..... 3,697,595
18,200,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09+ ............ 18,609,500
40,946,126
Leisure, Recreation and Gaming - 0.1%
2,706,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 1,982,145
Life and Health Insurance - 0.4%
10,000,000 AFLAC, Inc., 6.50%
senior notes, due 4/15/09 ............ 9,350,000
4,000,000 SunAmerica, Inc., 6.75%
notes, due 10/1/07 ................... 3,940,000
13,290,000
Money Center Banks - 0.6%
17,000,000 HSBC Holdings PLC, 7.50%
subordinated notes, due 7/15/09 ...... 17,063,750
Multimedia - 2.3%
Paramount Communications, Inc.:
7,460,000 8.25%, debentures, due 8/1/22 ........ 7,338,775
17,550,000 7.50%, debentures, due 7/15/23 ....... 16,014,375
12,500,000 Time Warner, Inc., 8.11%
notes, due 8/15/06 ................... 12,984,375
Viacom, Inc.:
25,650,000 7.75%, senior notes, due 6/1/05 ...... 26,002,688
968,000 7.625%, company guaranteed notes
due 1/15/16 .......................... 948,640
Multimedia - (continued)
$ 3,400,000 Walt Disney Co. (The), 6.375%
senior notes, due 3/30/01 ............ $ 3,400,000
66,688,853
Pipelines - 0.2%
Enron Corp.:
2,000,000 6.75%, senior subordinated debentures
due 7/1/05 ........................... 1,930,000
3,000,000 7.125%, notes, due 5/15/07 ........... 2,917,500
1,000,000 6.75%, notes, due 8/1/09 ............. 940,000
5,787,500
Property and Casualty Insurance - 0.1%
2,000,000 Progressive Corp., 6.625%
senior notes, due 3/1/29 ............. 1,715,000
Radio - 0.6%
10,507,000 Clear Channel Communications, Inc., 2.625%
convertible senior notes, due 4/1/03 . 14,828,004
2,500,000 Susquehanna Media Co., 8.50%
senior subordinated notes, due 5/15/09+ 2,412,500
17,240,504
Retail - Building Products - 0.7%
20,000,000 Home Depot, Inc., 6.50%
notes, due 9/15/04+ .................. 19,875,000
Retail - Discount - 1.9%
Wal-Mart Stores, Inc.:
12,500,000 6.15%, senior notes, due 8/10/01 ..... 12,437,500
15,000,000 6.55%, senior notes, due 8/10/04 ..... 14,981,250
28,700,000 6.875%, senior notes, due 8/10/09 .... 28,843,500
56,262,250
Retail - Internet - 1.8%
49,460,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09 ........................... 52,242,125
Retail - Music Store - 0.3%
10,527,000 MTS, Inc., 9.375%
senior subordinated notes, due 5/1/05 7,645,234
Retail - Restaurants - 0.3%
7,000,000 McDonald's Corp., 5.35%
senior notes, due 9/15/08 ............ 6,300,000
Tricon Global Restaurants, Inc.:
552,000 7.45%, senior notes, due 5/15/05 ..... 533,370
2,619,000 7.65%, senior notes, due 5/15/08 ..... 2,501,145
9,334,515
Savings/Loan/Thrifts - 0.1%
5,187,000 Net.B@nk, Inc., 4.75%
convertible subordinated notes, due 6/1/04 4,493,239
Super-Regional Banks - 0.4%
8,000,000 Northern Trust Corp., 7.10%
subordinated notes, due 8/1/09 ....... 7,960,000
5,000,000 Wachovia Corp., 5.625%
subordinated notes, due 12/15/08 ..... 4,481,250
12,441,250
Telecommunication Equipment - 0.7%
21,800,000 Lucent Technologies, Inc., 5.50%
notes, due 11/15/08 .................. 19,810,750
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 9
<PAGE>
Janus | Balanced Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Telecommunication Services - 2.6%
$ 7,010,000 Bresnan Communications Group, 8.00%
senior notes, due 2/1/09 ............. $ 6,922,375
9,319,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 9,948,032
385,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08 388,850
NTL, Inc., 7.00%
34,909,000 convertible subordinated notes
due 12/15/08+ ........................ 59,039,846
76,299,103
Telephone - Integrated - 0.3%
10,177,000 NEXTLINK Communications, Inc., 10.75%
senior notes, due 6/1/09 ............. 10,304,213
Wireless Equipment - 1.7%
Nextel Communications, Inc.:
22,730,000 9.75%, senior discount notes
due 8/15/04 .......................... 23,070,950
13,850,000 4.75%, convertible senior notes
due 7/1/07+ .......................... 26,782,438
49,853,388
- --------------------------------------------------------------------------------
Total Corporate Notes (cost $1,014,860,255) ............... 1,015,724,758
- --------------------------------------------------------------------------------
Foreign Bonds - 2.5%
Cable Television - 1.1%
GBP
20,000,000 Telewest Communications PLC, 5.25%
convertible bonds, due 2/19/07**,+ ... 32,818,000
Finance - Other Services - 0.2%
EUR
6,900,000 Ono Finance PLC, 13.00%
company guaranteed notes, due 5/1/09+ 7,179,723
Telecommunication Services - 1.2%
EUR
9,126,000 COLT Telecom Group PLC, 2.00%
convertible bonds, due 3/29/06+ ...... 13,044,960
GBP
22,000,000 NTL, Inc., 9.75%
senior notes, due 4/15/09** .......... 20,486,636
33,531,596
- --------------------------------------------------------------------------------
Total Foreign Bonds (cost $71,643,861) .................... 73,529,319
- --------------------------------------------------------------------------------
Preferred Stock - 12.4%
Cable Television - 1.9%
92,950 Adelphia Communications Corp. - Series D
convertible, 5.50% ................... 15,766,644
437,500 Cox Communications, Inc.
convertible, 7.00% ................... 27,125,000
138,710 MediaOne Group, Inc., convertible, 6.25%
(Vodafone AirTouch PLC (ADR)) ........ 14,425,840
57,317,484
Cruise Lines - 1.8%
322,253 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ................... 51,560,480
Electric - Integrated - 6.9%
1,765,740 Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) .................. 202,618,665
Telecommunication Services - 1.2%
266,670 Omnipoint Corp., convertible, 7.00%
(VoiceStream Wireless Corp.) ......... 35,933,782
Telephone - Integrated - 0.6%
124,241 NEXTLINK Communications, Inc.
convertible, 6.50% ................... $ 17,486,921
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $280,233,411) ................. 364,917,332
- --------------------------------------------------------------------------------
Warrants - 0%
Finance - Other Services - 0%
6,900 Ono Finance PLC - expires 5/31/09*,+ ... 435,135
Internet Software - 0%
1,980 Bell Technology Group, Ltd. - expires 5/1/05* 311,850
- --------------------------------------------------------------------------------
Total Warrants (cost $0) .................................. 746,985
- --------------------------------------------------------------------------------
U.S. Government Obligations - 11.3%
U.S. Treasury Notes:
$ 40,000,000 5.625%, due 9/30/01 .................. 39,862,500
2,000,000 6.625%, due 4/30/02 .................. 2,034,600
30,000,000 5.625%, due 2/15/06 .................. 29,258,100
10,000,000 6.625%, due 5/15/07 .................. 10,252,200
35,000,000 6.125%, due 8/15/07 .................. 34,834,800
25,000,000 5.50%, due 2/15/08 ................... 23,954,250
190,000,000 6.00%, due 8/15/09 ................... 189,718,800
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $333,197,722) ..... 329,915,250
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 0.8%
Household Finance Corp.
23,900,000 5.30%, 11/1/99
(amortized cost $23,900,000) ......... 23,900,000
- --------------------------------------------------------------------------------
Total Investments (total cost $2,524,480,211) - 98.6% ..... 2,888,728,730
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 1.4% 41,040,378
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 2,929,769,108
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.8% $ 80,367,516
Finland 0.8% 24,510,806
Mexico 0.1% 1,787,400
United Kingdom 4.6% 133,586,700
United States++ 91.7% 2,648,476,308
- --------------------------------------------------------------------------------
Total 100.0% $ 2,888,728,730
++Includes Short-Term Securities (90.9% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 11,100,000 $ 18,251,730 $ 127,650
British Pound 4/20/00 5,900,000 9,700,780 141,600
- --------------------------------------------------------------------------------
Total $ 27,952,510 $ 269,250
See Notes to Schedules of Investments.
10 Janus Equity Funds / October 31, 1999
<PAGE>
Janus | Enterprise Fund
[PHOTO]
James Goff
portfolio manager
I'm pleased to report that the fiscal year ended October 31, 1999 was our best
ever. Janus Enterprise Fund returned 104.09% compared to the Standard & Poor's
MidCap 400 Index, which gained 21.07%.(1) This performance placed the Fund 14th
out of 398 mid cap funds ranked by Lipper, Inc., a leading mutual fund rating
company, giving it a top-decile ranking.(2)
Strong economic growth and only a modest increase in interest rates provided a
good backdrop for growth stock investing. After years of stock market fixation
on only the largest companies, the market broadened out and investors focused on
growth regardless of company size. Our focus on mid-sized, high-growth companies
that dominate their markets paid off handsomely.
A positive factor for the Fund has been the dramatic pace of innovation in the
U.S. This has led to the creation of many new companies for us to research and
invest in. Simply put, our mid cap growth fields are more fertile than ever.
A good example is photonics. Photonics utilizes a new technology called Dense
Wave Division Multiplexing (DWDM), which allows for more data traffic to be
carried over existing fiber-optic lines. DWDM expands capacity by sending
information over different wavelengths of light, creating up to 100 channels
where there used to be only one. Tremendous growth in data traffic, driven in
part by the Internet, is forcing many telecommunications companies to invest in
photonics equipment to carry this additional data.
Furthermore, the photonics industry has the combination we look for - rapid
growth, in excess of 50%, and high barriers to entry. There are no significant
upstarts in this area, and this means all of the growth accrues to the few
existing players. Our investment in this industry includes JDS Uniphase, which
more than tripled during the period but was sold due to an increase in its
market capitalization. Over the course of the year, we added SDL and E-Tek
Dynamics, which have also contributed substantially to the Fund's performance.
We significantly increased our weighting in wireless communications around the
middle of the fiscal year. Cellular usage is growing rapidly in the U.S. and
should accelerate further. Another exciting revenue opportunity in coming years
is wireless data, which will allow cell phone users to access the Internet from
anywhere. Companies such as VoiceStream Wireless, Western Wireless, Sprint PCS
and US Cellular boosted the Fund's performance and are poised to perform
strongly in the next millennium.
Not all of our investments are quite as glamorous. A continuing emphasis for us
is on companies that are leading players in their industry, fill an underserved
market niche, have few competitors and enjoy stable earnings. Long-time holding
Paychex fits that definition perfectly. The second-largest payroll processing
firm in the U.S., Paychex provides payroll and related services for small and
mid-sized
(continued on next page)
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 95.0% 96.4%
Foreign 4.2% 10.2%
Top 10 Equities (% of Assets) 37.7% 48.6%
Number of Stocks 55 43
Cash & Cash Equivalents 5.0% 3.6%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Cellular Telecommunications 11.6% 1.3%
Radio 9.8% 13.5%
Telecommunication Services 9.1% --
Electronic Components -
Semiconductors 6.6% --
Internet Software 5.5% 3.3%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Paychex, Inc. 5.0% 4.0%
SDL, Inc. 4.8% --
VERITAS Software Corp. 4.1% 4.3%
Vitesse Semiconductor Corp. 3.8% 8.5%
Exodus Communications, Inc. 3.7% --
McLeodUSA, Inc. - Class A 3.5% --
Apollo Group, Inc. - Class A 3.4% 7.6%
NEXTLINK Communications, Inc. 3.2% --
Hispanic Broadcasting Corp. 3.2% 4.3%
Metromedia Fiber Network, Inc. - Class A 3.0% --
- --------------------------------------------------------------------------------
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a midcap fund as one that "by prospectus or portfolio
practice invests primarily in companies with market capitalizations less
than $5 billion at the time of purchase." As of October 31, 1999, Janus
Enterprise Fund ranked 10/143 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 / October 31, 1999 11
<PAGE>
businesses. This company consistently grows its customer base and offers
incremental products that bolster revenues without significantly adding costs.
Year in and year out, Paychex has grown its earnings at a 35% rate. We used some
mid-year weakness in the stock to build Paychex into our largest position.
Another reason for the Fund's strong performance in fiscal 1999 was that our
list of disappointments was short. CheckFree Holdings, whose services allow
customers to pay bills online, was a stock that declined. While we still believe
electronic bill payment is a promising area, CheckFree suffered when several of
its large customers formed a joint venture to provide the same service.
Therefore, we sold our position at a loss. ITT Educational, which offers
technology-oriented programs, was also a drag on performance because of
lower-than-expected enrollment growth. Consequently, we decided to liquidate the
stock and move on to greener pastures.
Overall, this past fiscal year was extraordinary, with an investment environment
favorable to midcap growth stocks and strong research execution by the Janus
team of analysts. We urge you not to expect 100%+ returns every year, but we do
promise to continue our best efforts in identifying promising companies that can
generate exceptional long-term growth.
Thank you for your investment in Janus Enterprise Fund.
Performance Overview
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Enterprise Fund and the S&P 400 MidCap Index. Janus Enterprise Fund is
represented by a shaded area of green. The S&P 400 MidCap 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 October 31, 1999. The upper and lower right quadrants reflect the ending
value of the hypothetical investment in Janus Enterprise Fund ($55,706) as
compared to the S&P 400 MidCap Index ($31,495).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 104.09%
Five Year, 27.21%
Since 9/1/92*, 27.09%
Janus Enterprise Fund - $55,706
S&P MidCap 400 Index - $31,495
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 95.0%
Advertising Sales - 1.5
633,780 Lamar Advertising Co.* ................. $ 34,224,120
Audio and Video Products - 2.1%
552,685 Gemstar International Group, Ltd.* ..... 48,014,509
Cable Television - 1.2%
503,190 Adelphia Communications Corp. - Class A* 27,486,754
Cellular Telecommunications - 11.6%
2,605,710 Crown Castle International Corp.* ...... 50,159,918
510,055 Omnipoint Corp.* ....................... 42,143,294
166,630 Powertel, Inc.* ........................ 9,810,341
735,650 Rogers Cantel Mobile Communications, Inc.
- Class B* ........................... 21,103,959
451,440 Sprint Corp./PCS Group* ................ 37,441,305
93,755 Triton PCS, Inc. - Class A* ............ 3,304,864
125,375 United States Cellular Corp.* .......... 11,095,688
499,850 VoiceStream Wireless Corp.* ............ 49,360,188
892,030 Western Wireless Corp. - Class A* ...... 47,166,086
271,585,643
Circuits - 3.8%
1,907,350 Vitesse Semiconductor Corp.* ........... 87,499,681
Commercial Services - 5.0%
2,959,869 Paychex, Inc. .......................... 116,544,842
Computer Data Security - 2.0%
379,825 VeriSign, Inc.* ........................ 46,908,388
Computers - Integrated Systems - 0.5%
47,730 Brocade Communications Systems, Inc.* .. $ 12,839,370
Computers - Memory Devices - 4.1%
882,335 VERITAS Software Corp.* ................ 95,181,888
Electronic Components - Semiconductors - 6.6%
913,725 SDL, Inc.* ............................. 112,673,714
528,255 TriQuint Semiconductor, Inc.* .......... 42,260,400
154,934,114
Fiber Optics - 5.4%
839,640 E-Tek Dynamics, Inc.* .................. 55,941,015
2,108,830 Metromedia Fiber Network, Inc. - Class A* 69,723,192
125,664,207
Finance - Investment Bankers/Brokers - 1.0%
633,336 Charles Schwab Corp. ................... 24,660,521
Internet Content - 2.6%
340,830 DoubleClick, Inc.* ..................... 47,716,200
105,205 Internet Capital Group, Inc.* .......... 12,243,232
59,959,432
Internet Software - 5.5%
35,420 Commerce One, Inc.* .................... 6,065,675
995,885 Exodus Communications, Inc.* ........... 85,646,110
133,680 Proxicom, Inc.* ........................ 10,259,940
718,230 PSINet, Inc.* .......................... 25,856,280
127,828,005
See Notes to Schedules of Investments.
12 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical - Drugs - 4.7%
365,650 Gilead Sciences, Inc.* ................. $ 23,104,509
433,558 MedImmune, Inc.* ....................... 48,558,496
450,620 Sepracor, Inc.* ........................ 37,485,951
109,148,956
Medical - HMO - 0.7%
512,370 Healtheon Corp.* ....................... 16,908,210
Medical Instruments - 1.3%
397,335 MiniMed, Inc.* ......................... 30,122,960
Music/Clubs - 0.9%
588,865 SFX Entertainment, Inc.* ............... 20,573,471
Networking Products - 1.6%
131,055 Juniper Networks, Inc.* ................ 36,122,034
Radio - 9.8%
724,765 AMFM, Inc.* ............................ 50,733,550
480,320 Citadel Communications Corp.* .......... 23,205,460
541,593 Clear Channel Communications, Inc.* .... 43,530,537
41,905 Cox Radio, Inc. - Class A* ............. 2,933,350
683,300 Entercom Communications Corp.* ......... 34,036,881
917,920 Hispanic Broadcasting Corp.* ........... 74,351,520
228,791,298
Resorts and Theme Parks - 0.8%
635,690 Premier Parks, Inc. .................... 18,395,279
Retail - Internet - 3.5%
538,840 Amazon.com, Inc.* ...................... 38,055,575
317,970 eBay, Inc.* ............................ 42,965,696
81,021,271
Retail - Restaurants - 0.5%
792,718 PizzaExpress PLC ....................... 10,497,222
Schools - 3.4%
3,009,761 Apollo Group, Inc. - Class A* .......... 79,194,336
Telecommunication Services - 9.1%
1,149,380 AT&T Canada, Inc.* ..................... 37,067,505
271,095 Clearnet Communications, Inc. - Class A* 5,964,090
610,815 Level 3 Communications, Inc.* .......... 41,764,476
1,806,295 McLeodUSA, Inc. - Class A* ............. 80,605,914
617,116 NTL, Inc.* ............................. 46,515,119
211,917,104
Telephone - Integrated - 3.2%
1,265,280 NEXTLINK Communications, Inc. - Class A* 75,679,560
Television - 1.1%
313,315 Univision Communications, Inc. - Class A* 26,651,357
Therapeutics - 1.3%
692,910 QLT PhotoTherapeutics, Inc.* ........... 29,362,061
Wireless Telecommunications - 0.2%
91,845 RF Micro Devices, Inc.* ................ 4,741,498
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,445,712,996) .................. 2,212,458,091
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 3.8%
Household Finance Corp.
$ 88,400,000 5.30%, 11/1/99
(amortized cost $88,400,000) ......... $ 88,400,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 2.1%
Fannie Mae:
25,000,000 5.25%, 12/10/99 ...................... 24,857,813
25,000,000 5.50%, 1/20/00 ....................... 24,696,000
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $49,552,256) ......... 49,553,813
- --------------------------------------------------------------------------------
Total Investments (total cost $1,583,665,252) - 100.9% .... 2,350,411,904
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.9%) (20,714,315)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 2,329,697,589
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 3.7% $ 87,533,525
United Kingdom 0.5% 10,497,222
United States++ 95.8% 2,252,381,157
- --------------------------------------------------------------------------------
Total 100.0% $ 2,350,411,904
++Includes Short-Term Securities (90.0% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 13
<PAGE>
Janus | Equity Income Fund
[PHOTO]
Blaine Rollins
portfolio manager
For the fiscal year ended October 31, 1999, Janus Equity Income Fund gained
47.22%, comparing favorably with its benchmark index, the S&P 500, which
returned 25.66%.(1) This impressive performance earned the Fund a top-decile
ranking, placing it 2nd out of 241 equity income funds tracked by Lipper, Inc.,
a leading mutual fund rating company.(2)
The market, although on an upward trend, certainly experienced its fair share of
ups and downs over the past year. During the latter half, a robust U.S. economy,
tight labor markets and increasing wage pressures fueled fears that inflation
was on the rise. Two interest rate hikes did little to calm investors, and the
unsettling volatility continued, with bond markets suffering their worst year
since 1994. Against this backdrop, we were able to leverage our in-depth
research efforts to uncover strong pockets of growth, particularly in the
wireless telecommunications, cable and media industries. Additionally, while our
primary emphasis is on growth, we opportunistically added high-yield
fixed-income investments during the period to boost the Fund's yield and deploy
excess cash.
In today's highly competitive global marketplace, pricing power is often hard to
come by. Fortunately, many of our top positions possess this rare commodity.
Other holdings that do not enjoy such pricing advantages are benefiting by
helping customers improve productivity; we refer to these as "productivity
enablers." Our wireless telecommunications companies clearly fall into this
category. During the year, we boosted our exposure in this fast-growing area,
increasing our position in Nokia and adding new holdings VoiceStream Wireless
(through the Omnipoint convertible preferred stock), NEXTLINK Communications and
Nextel Communications. From servicing to hardware and handsets to
infrastructure, these businesses not only helped power performance, but are also
poised for phenomenal growth well into the next millennium.
Cable is another exciting area that continues to perform exceptionally well for
us. Once again, top holding Time Warner (via the Reliant Energy, Inc.
convertible preferred stock) was among our winners. Comcast and Cox
Communications are two others that added to our success during the period. Both
of these companies are benefiting from the growth in networking and broadband
telecommunications by providing the essential pipelines that allow cable
telephony services, Internet access and expanded video offerings to be delivered
using a single platform. With demand for these services only expected to rise,
we're confident our cable holdings will remain among our best performers for
some time to come.
A play on both cable and media, worldwide entertainment and media giant Viacom
is a relatively new position we added after the company's decision to exit its
less-profitable home video rental business, Blockbuster. Recently announced
plans to acquire CBS have also increased the attractiveness of the stock. By
merging with CBS, Viacom, which owns a number of other media properties
including MTV, Nickelodeon, VH1 and Paramount Studios, will gain valuable access
to radio and TV distribution. On top of that, CBS CEO Mel Karmizan is known for
his shrewd ability to cut costs and drive revenue growth, thereby
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 57.0% 61.6%
Fixed-Income Securities
Investment-Grade
Corporate Bonds 1.8% 0.7%
High-Yield/High-Risk
Corporate Bonds 14.3% 9.5%
Preferred Stock 21.8% 21.6%
Top 10 Equities/Preferred
(% of Assets) 35.3% 40.7%
Number of Stocks 51 42
Cash & Cash Equivalents 5.1% 6.6%
- --------------------------------------------------------------------------------
Top 5 Industries October 31,1999 October 31, 1998
- --------------------------------------------------------------------------------
Cable Television 12.1% 15.1%
Electric - Integrated 9.4% 7.0%
Telecommunication Services 5.7% --
Life and Health Insurance 5.1% --
Money Center Banks 4.4% 4.3%
- --------------------------------------------------------------------------------
Top 10 Equity/Preferred Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) 9.4% 7.0%
Bank of New York Company, Inc. 4.4% 4.3%
Omnipoint Corp., convertible, 7.00%
(VoiceStream Wireless Corp.) 3.5% --
Viacom, Inc. - Class B 2.9% --
Univision Communications, Inc. - Class A 2.9% 2.1%
American Express Co. 2.7% --
Adelphia Communications Corp. - Series D
convertible, 5.50% 2.6% --
Comcast Corp. - Special Class A 2.4% 4.8%
Enron Corp. 2.3% --
Prudential PLC 2.2% --
- --------------------------------------------------------------------------------
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines an equity income fund as "a fund which seeks
relatively high current income and growth of income through investing 60%
or more of its portfolio in equities." 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.
14 Janus Equity Funds / October 31, 1999
<PAGE>
building shareholder value. As a result, we believe this new combined
organization has an extremely bright, long-term future.
While we were pleased with our strong performance overall, the Fund did suffer
some disappointments. A shortage of temporary workers created by an expanding
economy, together with greater competition from market rivals, caused staffing
agency Robert Half International's top-line growth to decline, and we sold our
position. Automotive supplier Federal-Mogul is another holding that failed to
meet our expectations. Although we are still strong believers in the company, we
decided to liquidate the stock as decreased demand in the auto parts aftermarket
created uncertainty surrounding Federal-Mogul's potential top-line growth.
In closing, I want to reiterate that, as always, we are firmly focused on
finding high-quality, growth-oriented companies with outstanding management
teams that deploy capital in ways that earn higher returns. And as I turn over
fund management responsibilities to Karen Reidy at year-end, our investors can
expect a continuation of that same strategy. In her role as assistant portfolio
manager, Karen has already made significant contributions to the portfolio. As
such, we're tremendously confident in her abilities and know this transition
will be a seamless one.
Thank you for your investment in Janus Equity Income Fund.
Performance Overview
[GRAPHIC OMITTED]
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
October 31, 1999. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Equity Income Fund ($25,716) as compared to the
S&P 500 Index ($21,456).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 47.22%
Since 6/28/96*, 32.66%
Janus Equity Income Fund - $25,716
S&P 500 Index - $21,456
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 57.0%
Brewery - 0.7%
75,220 Anheuser-Busch Companies, Inc. ......... $ 5,401,736
Broadcast Services and Programming - 1.2%
232,025 AT&T Corp./Liberty Media Group - Class A* 9,208,492
Cable Television - 3.3%
37,545 Adelphia Communications Corp. - Class A* 2,050,896
447,018 Comcast Corp. - Special Class A ........ 18,830,633
111,270 Cox Communications, Inc. - Class A* .... 5,055,831
25,937,360
Circuits - 2.6%
145,370 Linear Technology Corp. ................ 10,166,814
133,490 Maxim Integrated Products, Inc.* ....... 10,537,367
20,704,181
Commercial Banks - 0.9%
145,450 Carolina First Corp. ................... 3,008,997
7,485 M&T Bank Corp. ......................... 3,708,818
6,717,815
Commercial Services - 0.8%
147,210 Paychex, Inc. .......................... 5,796,394
Cruise Lines - 1.7%
227,615 Carnival Corp. ......................... 10,128,867
62,918 Royal Caribbean Cruises, Ltd. .......... 3,338,586
13,467,453
Data Processing and Management - 1.5%
237,335 Automatic Data Processing, Inc. ........ $ 11,436,580
Distribution and Wholesale - 1.8%
174,490 Costco Wholesale Corp.* ................ 14,013,728
Diversified Operations - 2.0%
52,030 General Electric Co. ................... 7,053,317
221,720 Tyco International, Ltd. ............... 8,854,943
15,908,260
Electronic Components - Semiconductors - 0.7%
65,790 Texas Instruments, Inc. ................ 5,904,652
Finance - Credit Card - 2.7%
140,590 American Express Co. ................... 21,650,860
Finance - Investment Bankers/Brokers - 1.7%
332,204 Charles Schwab Corp. ................... 12,935,193
Instruments - Scientific - 1.1%
189,805 Dionex Corp.* .......................... 8,434,460
Life and Health Insurance - 5.1%
1,089,889 Prudential PLC** ....................... 17,070,267
391,145 Reinsurance Group of America, Inc. ..... 13,005,571
397,295 StanCorp Financial Group, Inc. ......... 10,081,361
40,157,199
Medical - Biomedical and Genetic - 0.7%
35,000 Genentech, Inc.* ....................... 5,101,250
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 15
<PAGE>
Janus | Equity Income Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical - Drugs - 1.4%
217,430 Schering-Plough Corp. .................. $ 10,762,785
Medical Instruments - 0.5%
123,290 Medtronic, Inc. ........................ 4,268,916
Money Center Bank - 4.4%
814,650 Bank of New York Company, Inc. ......... 34,113,469
Multimedia - 2.9%
512,320 Viacom, Inc. - Class B* ................ 22,926,320
Networking Products - 1.9%
204,104 Cisco Systems, Inc.* ................... 15,103,696
Pipelines - 2.3%
444,380 Enron Corp. ............................ 17,747,426
Radio - 3.3%
158,205 Hispanic Broadcasting Corp.* ........... 12,814,605
381,945 Infinity Broadcasting Corp. - Class A* . 13,200,974
26,015,579
Retail - Building Products - 1.3%
132,802 Home Depot, Inc. ....................... 10,026,551
Retail - Computer Equipment - 0.6%
124,790 Insight Enterprises, Inc.* ............. 4,664,026
Retail - Internet - 1.2%
42,330 Amazon.com, Inc.* ...................... 2,989,556
49,415 eBay, Inc.* ............................ 6,677,202
9,666,758
Retail - Office Supplies - 1.6%
551,090 Staples, Inc.* ......................... 12,227,309
Retail - Restaurants - 0.7%
137,885 McDonald's Corp. ....................... 5,687,756
Super - Regional Banks - 0.8%
65,145 Northern Trust Corp. ................... 6,290,564
Telecommunication Equipment - 2.7%
145,350 Lucent Technologies, Inc. .............. 9,338,738
10,722 Nokia Oyj .............................. 1,226,219
88,481 Nokia Oyj (ADR) ........................ 10,225,086
20,790,043
Television - 2.9%
263,158 Univision Communications, Inc. - Class A* 22,384,877
- --------------------------------------------------------------------------------
Total Common Stock (cost $333,238,070) .................... 445,451,688
- --------------------------------------------------------------------------------
Corporate Bonds - 14.3%
Advertising Agencies - 0.7%
$ 2,000,000 Omnicom Group, Inc., 4.25%
convertible subordinated debentures
due 1/3/07 ........................... 5,497,500
Advertising Sales - 1.3%
7,400,000 Lamar Advertising Co., 5.25%
convertible notes, due 9/15/06 ....... 9,925,250
Cable Television - 1.8%
Adelphia Communications Corp.:
7,400,000 7.75%, senior notes, due 1/15/09 ..... 6,687,750
5,000,000 7.875%, senior notes, due 5/1/09 ..... 4,525,000
3,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09 ..... 2,835,000
14,047,750
Casino Hotels - 0%
$ 154,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 $ 157,850
Computer Services - 0.1%
591,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ............. 520,819
Computers - Micro - 0.9%
6,310,000 EMC Corp., 6.00%
convertible subordinated notes
due 5/15/04 .......................... 6,972,550
Food - Retail - 0%
78,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 . 74,685
Internet Software - 1.9%
Exodus Communications, Inc.:
2,310,000 5.00%, convertible subordinated notes
due 3/15/06+ ......................... 8,850,187
3,000,000 11.25%, senior notes, due 7/1/08 ..... 3,052,500
3,000,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09+ ............ 3,067,500
14,970,187
Leisure, Recreation and Gaming - 0%
235,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 172,138
Radio - 1.1%
6,211,000 Clear Channel Communications, Inc., 2.625%
convertible senior notes, due 4/1/03 . 8,765,274
Retail - Internet - 2.2%
16,417,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09 ........................... 17,340,456
Retail - Music Stores - 0.2%
2,305,000 MTS, Inc., 9.375%
senior subordinated notes, due 5/1/05 1,674,006
Retail - Restaurants - 0.1%
448,000 Tricon Global Restaurants, Inc., 7.45%
senior notes, due 5/15/05 ............ 432,880
Satellite Telecommunications - 0.6%
5,375,000 Innova S. de R.L., 12.875%
senior notes, due 4/1/07 ............. 4,447,813
Savings/Loans/Thrifts - 0.2%
1,400,000 Net.B@nk, Inc., 4.75%
convertible subordinated notes
due 6/1/04 ........................... 1,212,750
Telecommunications Services - 2.2%
810,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09 ............. 781,650
9,752,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08+ ........................ 16,493,070
17,274,720
Wireless Equipment - 1.0%
4,160,000 Nextel Communications, Inc., 4.75%
convertible senior notes, due 7/1/07+ 8,044,400
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $97,607,630) .................. 111,531,028
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
16 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Foreign Bonds - 1.8%
Cable Television - 1.8%
GBP
8,515,000 Telewest Communications PLC, 5.25%
convertible bonds, due 2/19/07**,+
(cost $13,511,542) ................... $ 13,972,264
- --------------------------------------------------------------------------------
Preferred Stock - 21.8%
Cable Television - 5.2%
120,000 Adelphia Communications Corp. - Series D
convertible, 5.50% ................... 20,355,000
221,000 Cox Communications, Inc.
convertible, 7.00% ................... 13,702,000
67,775 MediaOne Group, Inc.
convertible, 6.25%
(Vodafone AirTouch PLC (ADR)) ........ 7,048,600
41,105,600
Cruise Lines - 2.1%
103,645 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ................... 16,583,200
Electric - Integrated - 9.4%
639,529 Reliant Energy, Inc.
convertible, 7.00% (Time Warner, Inc.) 73,385,953
Telecommunications Services - 3.5%
202,857 Omnipoint Corp.
convertible, 7.00%
(VoiceStream Wireless Corp.) ......... 27,334,981
Telephone - Integrated - 1.6%
87,931 NEXTLINK Communications, Inc.
convertible, 6.50% ................... 12,376,288
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $142,619,562) ................. 170,786,022
- --------------------------------------------------------------------------------
Warrants - 0%
Internet Software - 0%
591 Bell Technology Group, Ltd.
- expires 5/1/05* (cost $0) .......... 93,082
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 1.7%
Household Finance Corp.
$ 13,100,000 5.30%, 11/1/99
(amortized cost $13,100,000) ......... 13,100,000
- --------------------------------------------------------------------------------
Total Investments (total cost $600,076,804) - 96.6% ....... 754,934,084
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 3.4% 26,385,032
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 781,319,116
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 1.2% $ 8,854,943
Finland 1.5% 11,451,305
Mexico 0.6% 4,447,813
United Kingdom 4.1% 31,042,531
United States++ 92.6% 699,137,492
- --------------------------------------------------------------------------------
Total 100.0% $ 754,934,084
++Includes Short-Term Securities (90.9% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 5,150,000 $ 8,468,145 $ 59,225
- --------------------------------------------------------------------------------
Total $ 8,468,145 $ 59,225
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 17
<PAGE>
Janus | Global Life Sciences Fund
[PHOTO]
Thomas Malley
portfolio manager
Since its inception on December 31, 1998, Janus Global Life Sciences Fund
returned 19.70%, outpacing the 12.03% gain recorded by its benchmark, the S&P
500 Index.(1) These results also compare favorably against the 0.13%
year-to-date average total return for health and biotechnology funds tracked by
Lipper, Inc., a leading mutual fund rating company.(2)
While challenges in the healthcare arena were many and diverse, our flexible
mandate allowed us to sidestep much of the volatility during the period. We
continued to evaluate each investment on its own merits, focusing on companies
with strong revenue and unit volume growth, superior management, a dominant
business franchise and stable earnings.
Our exposure overseas remained modest despite the addition of a few unique and
fundamentally sound foreign companies. One such addition was Canada's QLT
PhotoTherapeutics, a company that develops and markets light-activated drugs for
the treatment of cancer, autoimmune disorders, cardiovascular disease and
ophthalmologic conditions. Visudyne, QLT's most promising product, stands
virtually alone as a treatment for a common form of age-related macular
degeneration, the leading cause of blindness in older adults. We believe
Visudyne will enjoy smooth sailing through the FDA approval process, and we look
for a strong commercial launch of the product during the first half of 2000.
Meanwhile, as many large-cap pharmaceutical companies have recently struggled to
develop compelling new products, research pipelines at a number of biotechnology
firms remain robust. Our team has identified several companies we believe
possess substantial upside related to new products, therefore, the Fund carries
a relatively high biotechnology weighting. One of our more notable performers in
this area was Amgen, which currently has two successful products on the market:
Epogen, an anti-anemia treatment, and Neupogen, a white blood cell stimulant.
We eliminated our exposure to laser refractive surgery companies, previously an
area of emphasis for the Fund. Our decision to do so came after a series of
discussions with eye surgeons that revealed the emergence of price competition
in the industry. We began trimming our positions in Laser Vision Centers and The
Laser Center before the market at large caught wind of the looming price war,
completely liquidating them well before the full impact of the related sell-off
was felt. While our confidence in the management teams of both companies remains
unshaken, we believe it will be difficult for them to grow their earnings in
this newly competitive environment. Consequently, we took this opportunity to
realize profits.
As mentioned earlier, a number of large drug companies have struggled to develop
new products to replace those suffering from an erosion of competitive position
or a looming patent expiration. Higher interest rates and an overhang related to
pending Medicare reform also pressured these stocks, convincing us to maintain a
relatively small weighting in them. One exception has been Schering-Plough, rare
among its peers because of a promising development program and the strong
continuing franchises enjoyed by its allergy treatment Claritin and cancer and
hepatitis treatment alpha interferon. Although Schering-Plough traded lower
during the period, we remain optimistic about the company's prospects.
Portfolio Profile October 31, 1999
- --------------------------------------------------------------------------------
Equities 82.6%
Foreign 11.0%
Top 10 Equities (% of Assets) 47.0%
Number of Stocks 39
Cash & Cash Equivalents 17.4%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999
- --------------------------------------------------------------------------------
Medical - Biomedical and Genetic 26.5%
Therapeutics 19.9%
Medical - Drugs 13.3%
Medical Products 7.0%
Optical Supplies 5.1%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999
- --------------------------------------------------------------------------------
QLT PhotoTherapeutics, Inc. 9.8%
Allergan, Inc. 5.1%
Biogen, Inc. 4.7%
Schering-Plough Corp. 4.5%
MiniMed, Inc. 4.4%
Enzon, Inc. 4.0%
Genetech, Inc. 4.0%
Gilead Sciences, Inc. 3.9%
Amgen, Inc. 3.6%
Medtronic, Inc. 3.0%
- --------------------------------------------------------------------------------
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a health and biotechnology fund as one 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.
18 Janus Equity Funds / October 31, 1999
<PAGE>
I'd also like to mention that consolidation appears to have picked up again
within the pharmaceutical industry. Following the announced merger between
Warner-Lambert and American Home Products, Pfizer made a counter-offer for
Warner-Lambert. While it's unclear how this scenario will play out,
consolidation can bring significant cost and revenue synergies, and we're doing
extensive analysis in order to be correctly positioned for this industry phase.
Among our more substantial disappointments was Boston Scientific, which declined
dramatically because of a slowdown in sales at its cardiac devices unit and the
cumulative impact of several product recalls. Although we still have a great
deal of confidence in management's long-term vision, weakening business
fundamentals and market conditions forced us to sell the stock.
In the coming months, we expect the continuing threat of inflation and higher
interest rates to keep markets volatile. Meanwhile, many of the specific
pressures working against healthcare stocks, such as pending legislative reform
and pipeline difficulties, have yet to be fully resolved. Nonetheless, we're
optimistic that our research efforts will continue to uncover individual
companies capable of outperforming the market. To that end, we've deepened our
bench through the addition of three new analysts, Bob Jackson, M.D., Chad
Hollingsworth and Andy Acker. We're extremely excited to have them on board.
In closing, I'd like to express my sincere thanks for your investment and
confidence in Janus Global Life Sciences Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999. The lower right quadrant reflects
the ending value of the hypothetical investment in Janus Global Life Sciences
Fund ($11,970) as compared to the S&P 500 Index ($11,203).
Cumulative Total Return
for the period ended October 31, 1999
Since 12/31/98*, 19.70%
Janus Global Life Sciences Fund - $11,970
S&P 500 Index - $11,203
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 82.6%
Instruments - Scientific - 1.8%
95,925 PE Corp./PE Biosystems Group ........... $ 6,223,134
Internet Content - 0.8%
63,945 CareInsite, Inc.* ...................... 2,797,594
Medical - Biomedical and Genetic - 26.5%
155,530 Amgen, Inc.* ........................... 12,403,517
218,190 Biogen, Inc.* .......................... 16,173,334
720,000 Cellegy Pharmaceuticals, Inc.*,+,#,s ... 5,961,600
475,855 Enzon, Inc.* ........................... 13,948,500
93,415 Genentech, Inc.* ....................... 13,615,236
46,960 Human Genome Sciences, Inc.* ........... 4,103,130
8,130 Immunex Corp.* ......................... 512,190
191,800 Invitrogen Corp.* ...................... 4,795,000
46,185 Millennium Pharmaceuticals, Inc.* ...... 3,238,723
680,575 Oxford GlycoSciences PLC** ............. 3,830,471
109,575 PE Corp./Celera Genomics Group ......... 4,287,122
49,495 Titan Pharmaceuticals, Inc.* ........... 417,614
200,000 Transkaryotic Therapies, Inc.*,+,s ..... 8,000,000
91,286,437
Medical - Drugs - 13.3%
86,210 Abbott Laboratories .................... $ 3,480,729
45,505 Bristol-Myers Squibb Co. ............... 3,495,353
60,000 Forest Laboratories, Inc.* ............. 2,752,500
20,795 MedImmune, Inc.* ....................... 2,329,040
87,940 Pfizer, Inc. ........................... 3,473,630
180,000 Priority Healthcare Corp.* ............. 3,611,250
312,985 Schering-Plough Corp. .................. 15,492,757
200,000 ViroPharma, Inc.* ...................... 4,175,000
88,480 Warner-Lambert Co. ..................... 7,061,810
45,872,069
Medical - Generic Drugs - 1.1%
103,665 Alpharma, Inc. - Class A ............... 3,647,712
Medical Information Systems - 1.5%
320,000 Allscripts, Inc.* ...................... 5,000,000
Medical Instruments - 3.0%
298,500 Medtronic, Inc. ........................ 10,335,563
Medical Products - 7.0%
86,080 Johnson & Johnson ...................... 9,016,880
199,255 MiniMed, Inc.* ......................... 15,106,020
24,122,900
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 19
<PAGE>
Janus | Global Life Sciences Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Optical Supplies - 5.1%
163,520 Allergan, Inc. ......................... $ 17,557,960
Pharmacy Services - 1.0%
98,990 Accredo Health, Inc.* .................. 3,266,670
Retail - Drug Store - 0.9%
74,405 CVS Corp. .............................. 3,231,967
Retail - Internet - 0.7%
70,030 Drugstore.com, Inc.* ................... 2,547,341
Therapeutics - 19.9%
90,000 Abgenix, Inc.* ......................... 3,993,750
183,700 BioMarin Pharmaceutical, Inc.* ......... 2,824,388
212,950 Gilead Sciences, Inc.* ................. 13,455,778
285,790 Pharmacyclics, Inc.* ................... 10,109,821
799,965 QLT PhotoTherapeutics, Inc.* ........... 33,898,517
236,460 Trimeris, Inc.* ........................ 4,256,280
68,538,534
- --------------------------------------------------------------------------------
Total Common Stock (cost $241,913,494) .................... 284,427,881
- --------------------------------------------------------------------------------
Repurchase Agreement - 9.0%
$ 31,000,000 ABN AMRO Securities, Inc., 5.34%
dated 10/29/99, maturing 11/1/99, to be
repurchased at $31,013,795 collateralized
by $25,545,712 in Fannie Mae, 5.75%-
7.577%, 2/1/09-11/1/30; $27,013,063
in Freddie Mac, 5.781%-11.34%,
5/1/00-9/1/29; $9,492,614 in Ginnie
Mae, 5.8312%-7.50%, 12/15/13-9/15/29;
with respective values of $9,714,990,
$13,413,120 and $8,491,890
(cost $31,000,000) ................... 31,000,000
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 4.6%
Household Finance Corp.
$ 16,000,000 5.30%, 11/1/99
(amortized cost $16,000,000) ......... $ 16,000,000
- --------------------------------------------------------------------------------
U.S. Government Agency - 7.2%
Fannie Mae
25,000,000 5.52%, 1/20/00 (cost $24,694,444) .... 24,696,000
- --------------------------------------------------------------------------------
Total Investments (total cost $313,607,938) - 103.4% ...... 356,123,881
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (3.4%) (11,687,382)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 344,436,499
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 9.5% $ 33,898,517
United Kingdom 1.1% 3,830,471
United States++ 89.4% 318,394,893
- --------------------------------------------------------------------------------
Total 100.0% $ 356,123,881
++Includes Short-Term Securities (69.3% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 1,125,000 $ 1,849,838 $ 12,938
- --------------------------------------------------------------------------------
Total $ 1,849,838 $ 12,938
See Notes to Schedules of Investments.
20 Janus Equity Funds / October 31, 1999
<PAGE>
Janus | Global Technology Fund
[PHOTO]
Mike Lu
portfolio manager
Since its inception on December 31, 1998, Janus Global Technology Fund returned
109.40%, outperforming our benchmark, the S&P 500 Index, which gained 12.03% for
the same 10-month period.(1) Our results also exceeded those of many of our
peers. The average total return for science and technology funds tracked by
Lipper, Inc., a leading mutual fund rating company, was 57.62%.(2)
In my letter to shareholders last April, I mentioned my excitement about the
compelling opportunities we continue to uncover in the Web enablement,
networking and telecommunications areas. Today, many of those same stocks remain
top holdings in the Fund, supporting our thesis of investing in companies that
enable the explosive growth of the Internet and intranets - whether they are
software, hardware, service, or "enabling" enablers.
For example, we continue to like the prospects of VERITAS Software, Cisco
Systems, Sun Microsystems and Nokia. VERITAS, a behind-the-scenes software
enabler, delivered significant gains from its growing recognition as the premier
developer of data storage and management software. Cisco Systems also produced
strong results, making headway as the end-to-end, integrated voice, video and
data network enabler of choice. Meanwhile, Sun Microsystems is creating critical
links with key telecom equipment players, has a formidable pipeline of new
product introductions, and is benefiting from the increasing number of servers
needed to process the exponentially growing volumes of Internet data. Finally,
Nokia continues to gain market share with its platform-based cellular handsets
and expansion into broadband wireless and wireline data access.
Sapient is a good example of a service enabler, providing consulting and
implementation expertise for Web enablement and e-commerce. We added to our
position last spring when Sapient experienced what we deemed an unwarranted
break in its share price due to Y2K-related fears of slowdowns in corporate
technology spending. Leveraging our ongoing tracking of industry trends and
active discussions with a multitude of chief information officers, chief
technology officers and corporate IT staff on the front lines, we came to the
conclusion that these fears were grossly exaggerated. While long-payback
projects such as enterprise resource planning and maintenance upgrades were
indeed being delayed, quick-payback Web-enablement developments - Sapient's
primary business focus - were proceeding at full steam. Thus, by piecing
together real-world market dynamics and gaining a better understanding of the
company's business drivers, we attained the necessary confidence to more than
double our position in Sapient and were rewarded when its stock rebounded.
Another impressive performer for the Fund was JDS Uniphase, an "enabling"
enabler that designs and manufactures a broad range of active and passive
optical components for the expanding fiber-optic telecommunications market. JDS
Uniphase was recently formed by the merger of JDS FITEL and Uniphase, both
holdings in the Fund prior to their marriage. Together, we believe JDS Uniphase
will enable leading telecommunications vendors such as Nortel Networks, Lucent
Technologies and CIENA - three other positions in the Fund - to significantly
increase the performance of their upcoming optical systems.
(continued on next page)
Portfolio Profile October 31, 1999
- --------------------------------------------------------------------------------
Equities 83.0%
Foreign 21.9%
European 10.8%
Top 10 Equities (% of Assets) 28.9%
Number of Stocks 90
Cash, Cash Equivalents &
Fixed-Income Securities 17.0%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999
- --------------------------------------------------------------------------------
Cellular Telecommunications 8.2%
Telecommunication Equipment 8.1%
Electronic Components - Semiconductors 7.8%
Fiber Optics 6.0%
Internet Software 5.9%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999
- --------------------------------------------------------------------------------
Nokia Oyj 4.3%
JDS Uniphase Corp. 4.3%
Sun Microsystems, Inc. 3.5%
VERITAS Software Corp. 3.2%
Texas Instruments, Inc. 2.6%
Sapient Corp. 2.5%
China Telecom, Ltd. 2.2%
Cisco Systems, Inc. 2.2%
Exodus Communications, Inc. 2.1%
Applied Materials, Inc. 2.0%
- --------------------------------------------------------------------------------
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a science and technology fund as one that "invests 65%
of its equity portfolio in science and technology stocks."
Past performance does not guarantee future results.
Janus Equity Funds / October 31, 1999 21
<PAGE>
In Asia, we took advantage of market pullbacks in April and May to substantially
but selectively increase the Fund's investments. Wireless service provider China
Telecom is a favorite, capturing close to 90% market share and growing
subscribers at an eye-opening rate of 500,000 per month. China Telecom is
bringing the promise of wireless voice and data to the masses at an affordable
five cents per minute. We also remain positive on Matsushita Communications, the
largest manufacturer of wireless handsets in Japan. This company is poised for
continued share gains as handset replacement demand in Japan accelerates because
of the popularity of narrow-band cellular data applications and as Japan becomes
the first country to transition to third-generation cellular networks.
Unfortunately, a few of our positions detracted from the Fund's overall
performance, including Excite@Home, which was created when Web portal company
Excite merged with broadband cable access provider @Home. We became shareholders
in this new company through our existing investment in Excite. Excite's
MatchLogic software division, which captures online buying and browsing data,
was particularly attractive. However, post-merger distractions over strategy and
rollout signaled a fundamental change in outlook, causing us to liquidate the
position.
In closing, I'd like to thank our shareholders for their continued confidence as
expressed by the rise in Fund assets. Our success in finding dynamic companies,
coupled with avoiding those with risky fundamentals, has produced the results I
believe you deserve.
Thank you again for your investment in Janus Global
Technology Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999. The upper and lower right quadrants reflect the ending
value of the hypothetical investment in Janus Global Technology Fund ($20,940)
as compared to the S&P 500 Index ($11,203).
Cumulative Total Return
for the period ended October 31, 1999
Since 12/31/98*, 109.40%
Janus Global Technology Fund - $20,940
S&P 500 Index - $11,203
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 83.0%
Applications Software - 2.1%
83,750 Citrix Systems, Inc.* .................. $ 5,370,469
826,560 i2 Technologies, Inc.* ................. 65,246,580
70,617,049
Cable Television - 0.3%
688,494 Le Groupe Videotron ltee ............... 9,829,610
Cellular Telecommunications - 8.2%
7,880,000 China Telecom, Ltd.*,** ................ 26,978,254
700,430 China Telecom, Ltd. (ADR)*,** .......... 47,279,025
950 NTT Mobile Communications Network, Inc.** 25,215,589
923,980 Orange PLC* ............................ 22,819,750
279,300 Orange PLC (ADR)* ...................... 34,772,850
1,164,175 Partner Communications Company, Ltd. ...
(ADR)* ............................... 18,335,756
505,000 Sprint Corp./PCS Group* ................ 41,883,437
428,760 Vodafone AirTouch PLC (ADR) ............ 20,553,682
350,000 VoiceStream Wireless Corp.* ............ 34,562,500
272,400,843
Circuits - 1.2%
105,650 Maxim Integrated Products, Inc.* ....... 8,339,747
712,970 Vitesse Semiconductor Corp.* ........... 32,707,499
41,047,246
Communications Software - 1.2%
560,585 Razorfish, Inc.* ....................... $ 41,343,144
Computer Data Security - 2.1%
348,302 Baltimore Technologies PLC* ............ 10,716,164
120,770 Check Point Software Technologies, Ltd.* 13,971,579
367,250 VeriSign, Inc.* ........................ 45,355,375
70,043,118
Computer Services - 4.5%
147,025 Electronic Data Systems Corp. .......... 8,600,963
28,600 Fujitsu Support and Service, Inc.** .... 8,029,701
67,400 HiQ International A.B.* ................ 1,922,623
180,024 Icon Medialab International A.B.* ...... 9,549,449
640,920 Sapient Corp.* ......................... 81,957,645
400,945 Technology Solutions Co.* .............. 8,219,372
807,615 Whittman-Hart, Inc.* ................... 31,042,702
149,322,455
Computer Software - 2.0%
344,545 Micromuse, Inc.* ....................... 36,823,247
334,640 Microsoft Corp.* ....................... 30,975,115
67,798,362
See Notes to Schedules of Investments.
22 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 2.0%
130,000 ASM Lithography Holding N.V. (ADR)* .... $ 9,441,250
125,245 Brocade Communications Systems, Inc.* .. 33,690,905
110,000 Equant N.V. - New York Shares* ......... 10,670,000
468,000 Fujitsu, Ltd.** ........................ 14,081,251
67,883,406
Computers - Memory Devices - 3.6%
162,530 EMC Corp.* ............................. 11,864,690
1,001,690 VERITAS Software Corp.* ................ 108,057,309
119,921,999
Computers - Micro - 4.5%
215,460 IBM Corp. .............................. 21,195,877
11,290,000 Legend Holdings, Ltd.** ................ 12,060,853
1,097,535 Sun Microsystems, Inc.* ................ 116,132,922
149,389,652
Distribution and Wholesale - 0.9%
70,400 Softbank Corp.** ....................... 29,209,646
Diversified Operations - 0.8%
329,090 Corning, Inc. .......................... 25,874,701
Electronic Components - 1.2%
863,000 NEC Corp.** ............................ 17,448,536
470,000 SCI Systems, Inc.* ..................... 23,206,250
40,654,786
Electronic Components - Semiconductors - 7.8%
225,225 Chartered Semiconductor (ADR)* ......... 7,474,655
420,445 Conexant Systems, Inc.* ................ 39,259,052
285,850 QLogic Corp.* .......................... 29,764,131
422,000 SDL, Inc.* ............................. 52,037,875
1,134,450 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)* ................. 39,280,331
964,010 Texas Instruments, Inc. ................ 86,519,898
85,000 Xilinx, Inc.* .......................... 6,683,125
261,019,067
Electronic Measuring Instruments - 1.9%
1,661,860 Teradyne, Inc.* ........................ 63,981,610
Entertainment Software - 0.1%
40,000 Electronic Arts, Inc.* ................. 3,232,500
Fiber Optics - 6.0%
559,000 CIENA Corp.* ........................... 19,704,750
859,625 JDS Uniphase Corp.* .................... 143,449,922
1,156,370 Metromedia Fiber Network, Inc. - Class A* 38,232,483
201,387,155
Internet Content - 1.5%
283,509 DoubleClick, Inc.* ..................... 39,691,260
169,290 VerticalNet, Inc.* ..................... 9,480,240
49,171,500
Internet Software - 5.7%
154,630 America Online, Inc.* .................. 20,053,578
240,000 BCE Emergis, Inc.* ..................... 6,200,286
825,320 Exodus Communications, Inc.* ........... 70,977,520
586,685 Portal Software, Inc.* ................. 38,354,532
637,475 PSINet, Inc.* .......................... 22,949,100
840,980 Verio, Inc.* ........................... 31,379,066
189,914,082
Life and Health Insurance - 0.4%
916,391 Prudential PLC ......................... 14,352,874
Machinery - General Industrial - 2.0%
729,500 Applied Materials, Inc.* ............... $ 65,518,219
Medical Information Systems - 0.4%
379,000 Healtheon Corp.* ....................... 12,507,000
Medical Instruments - 0.5%
190,000 Affymetrix, Inc.* ...................... 16,743,750
Network Software - 1.5%
513,210 Concord Communications, Inc.* .......... 26,654,844
1,111,315 Novell, Inc.* .......................... 22,295,757
48,950,601
Networking Products - 2.9%
993,180 Cisco Systems, Inc.* ................... 73,495,320
332,705 Network Appliance, Inc.* ............... 24,620,170
98,115,490
Pipelines - 0.6%
495,190 Enron Corp. ............................ 19,776,651
Retail - Internet - 1.2%
406,040 Amazon.com, Inc.* ...................... 28,676,575
83,875 eBay, Inc.* ............................ 11,333,609
40,010,184
Telecommunication Equipment - 8.1%
608,534 Lucent Technologies, Inc. .............. 39,098,309
223,000 Matsushita Communication Industrial
Company, Ltd.** ...................... 37,437,316
30,000 Nokia Oyj .............................. 3,430,942
1,220,380 Nokia Oyj (ADR) ........................ 141,030,164
688,245 Nortel Networks Corp. .................. 42,628,175
148,215 Terayon Communication Systems, Inc.* ... 6,484,406
270,109,312
Telecommunication Services - 4.5%
135,000 COLT Telecom Group PLC*,+ .............. 4,031,691
169,500 COLT Telecom Group PLC (ADR)* .......... 20,085,750
604,414 Energis PLC* ........................... 19,213,244
489,240 Level 3 Communications, Inc.* .......... 33,451,785
833,350 McLeodUSA, Inc. - Class A* ............. 37,188,244
391,250 NTL, Inc.* ............................. 29,490,469
281,870 Time Warner Telecom, Inc.* ............. 7,099,601
150,560,784
Telephone - Integrated - 2.2%
561,000 NEXTLINK Communications, Inc. - Class A* 33,554,813
1,263,718 Sonera Oyj ............................. 37,920,989
71,475,802
Telephone - Long Distance - 0.4%
375 Japan Telecom Company, Ltd.** .......... 12,864,119
Wireless Equipment - 0.7%
230,000 Motorola, Inc. ......................... 22,410,625
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,793,155,658) .................. 2,767,437,342
- --------------------------------------------------------------------------------
Corporate Bonds - 0.8%
Applications Software - 0.1%
$ 3,000,000 Citrix Systems, Inc., zero coupon
convertible subordinated debentures
due 3/22/19+ ......................... 1,526,250
Computer Services - 0.2%
6,000,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ............. 5,287,500
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 23
<PAGE>
Janus | Global Technology Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computers - Memory Devices - 0.3%
$ 8,000,000 VERITAS Software Corp., 1.856%
convertible discount notes, due 8/13/06 $ 11,100,000
Internet Content - 0.2%
4,000,000 DoubleClick, Inc., 4.75%
convertible subordinated notes
due 3/15/06+ ......................... 7,340,000
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $18,469,731) .................. 25,253,750
- --------------------------------------------------------------------------------
Preferred Stock - 0.5%
Internet Software - 0.2%
160,000 Verio, Inc., convertible, 6.75%+ ....... 7,460,000
Telecommunication Services - 0.3%
28,000 McLeodUSA, Inc. - Series A
convertible, 6.75% ................... 11,200,000
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $15,000,000) .................. 18,660,000
- --------------------------------------------------------------------------------
Repurchase Agreements - 4.6%
$150,600,000 ABN AMRO Securities, Inc., 5.34%
dated 10/29/99, maturing 11/1/99,
to be repurchased at $150,667,017
collateralized by $124,102,718 in
Fannie Mae, 5.75%-7.577%, 2/1/09-
11/1/30; $131,231,203 in Freddie Mac,
5.781%-11.34%, 5/1/00-9/1/29;
$46,115,732 in Ginnie Mae, 5.8312%-
7.50%, 12/15/13-9/15/29; with respective
values of $47,196,050, $65,161,802
and $41,254,148 ...................... 150,600,000
2,300,000 Deutsche Bank Securities, Inc., 5.425%
dated 10/29/99, maturing 11/1/99, to be
repurchased at $2,301,040 collateralized
by $574,292 in Fannie Mae, 5.75%-
7.00%, 8/25/07-1/25/29; $2,493,589 in
Freddie Mac, 0%-6.7312%, 3/15/14-
4/1/29; with respective values of
$455,261 and $1,890,739 .............. 2,300,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (cost $152,900,000) ........... 152,900,000
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 1.5%
Associates Corp. N.A
$ 50,000,000 5.30%, 11/1/99
(amortized cost $50,000,000) ......... $ 50,000,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 9.1%
Fannie Mae:
50,000,000 5.05%, 11/2/99 ....................... 49,992,986
25,000,000 5.05%, 11/5/99 ....................... 24,985,972
25,000,000 5.20%, 11/30/99 ...................... 24,895,278
25,000,000 5.25%, 12/10/99 ...................... 24,857,812
25,000,000 5.49%, 1/21/00 ....................... 24,692,250
50,000,000 5.51%, 2/2/00 ........................ 49,289,500
25,000,000 5.44%, 2/22/00 ....................... 24,568,250
Federal Home Loan Bank System:
30,000,000 5.01%, 12/13/99 ...................... 29,824,650
25,000,000 5.54%, 1/18/00 ....................... 24,704,750
Freddie Mac
25,000,000 5.21%, 11/4/99 ....................... 24,989,146
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $302,798,351) ........ 302,800,594
- --------------------------------------------------------------------------------
Total Investments (total cost $2,332,323,740) - 99.5% ..... 3,317,051,686
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.5% 17,462,426
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 3,334,514,112
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 1.8% $ 58,658,071
Finland 5.5% 182,382,096
Hong Kong 2.6% 86,318,131
Israel 1.0% 32,307,335
Japan 4.4% 144,286,158
Netherlands 0.6% 20,111,250
Singapore 0.2% 7,474,656
Sweden 0.3% 11,472,072
Taiwan 1.2% 39,280,331
United Kingdom 4.4% 146,546,006
United States++ 78.0% 2,588,215,580
- --------------------------------------------------------------------------------
Total 100.0% $ 3,317,051,686
++Includes Short-Term Securities (62.8% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Hong Kong Dollar
5/7/01 459,000,000 $ 58,226,563 ($ 411,258)
Japanese Yen 3/16/00 3,900,000,000 37,479,566 559,009
Japanese Yen 4/7/00 3,600,000,000 34,597,687 407,466
- --------------------------------------------------------------------------------
Total $ 130,303,816 $ 555,217
See Notes to Schedules of Investments.
24 Janus Equity Funds / October 31, 1999
<PAGE>
Janus | Growth and Income Fund
[PHOTO]
David Corkins
portfolio manager
I'm pleased to report that for the fiscal year ended October 31, 1999, your fund
gained 49.59%, substantially outperforming its benchmark, the S&P 500 Index,
which returned 25.66%.(1) This performance earned the Fund a top-decile ranking,
placing it 7th out of 872 growth and income funds tracked by Lipper, Inc., a
leading mutual fund rating company.(2)
Before further discussion about the Fund, I want to express my appreciation for
the outstanding research efforts of our team of analysts. Without question,
their diligence and hard work have resulted in a tremendously gratifying year.
That said, I'd like to reiterate that the Fund's emphasis is on growth, focusing
on well-managed, high-return businesses selling at attractive prices. Some of
these are well-known "blue-chip" companies. Others are less recognizable names,
which nonetheless show considerable future growth prospects. Balancing out the
Fund's growth component is our smaller position in income-producing investments,
including dividend-paying stocks, convertible securities and high-yield bonds.
On the equity side, the seemingly limitless potential of wireless
telecommunications continues to excite us. All indicators point to explosive
growth in the wireless market well into the next century, both in the United
States and around the world. To take advantage of this phenomenon, we increased
our holdings in leaders Nokia and Sprint PCS and added new positions Nextel
Communications and VoiceStream Wireless. Not only are we encouraged by the rapid
introduction of new applications that increase demand, such as wireless data
services, but the trend toward industry consolidation is also benefiting these
businesses. Individually and as a group, these stellar performers significantly
boosted the Fund's performance.
Another area we remain highly confident in is technology. Because of the short
product cycles typical of this fast-moving industry, we prefer to invest in
brand-name franchises such as Microsoft, America Online and Cisco Systems, which
continued to be strong performers for us. Newer holdings Sun Microsystems and
EMC Corporation were also winners. The leading manufacturer of Web servers, Sun
is beginning to put a dent in Microsoft's dominance of the computer operating
systems market by offering the cost-effective option of housing software and
data on a network rather than a personal computer. While Sun doesn't yet pose a
threat to Microsoft's preeminent position, we are very optimistic about Sun's
prospects going forward.
Like many of our standout names in the technology area, EMC Corporation, the
number one maker of mainframe computer disk memory hardware and software, is
benefiting from the extraordinary growth of the Internet. Every day, Internet
usage creates more and more data that must be properly stored. With the
resulting increase in data storage requirements, demand for EMC's products that
store, manage and protect data is also sharply rising. As a result, we remain
enthusiastic in our outlook for this business.
Cable is another high-growth industry that helped fuel the Fund's gains during
the year. AT&T Liberty Media was a noteworthy performer in this group. Led by
media visionary and former TCI chairman John Malone, Liberty Media has stakes in
about 100 cable channels, including Discovery Channel,
(continued on next page)
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 85.2% 74.7%
Foreign 8.4% 5.6%
European 5.5% 4.2%
Fixed-Income Securities
High-Yield/High-Risk
Corporate Bonds 2.5% 2.6%
Preferred Stock 4.6% 6.6%
Top 10 Equities (% of Assets) 31.2% 28.7%
Number of Stocks 76 72
Cash & Cash Equivalents 7.7% 16.1%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Cable Television 8.8% 12.5%
Telecommunication Equipment 5.4% 1.1%
Diversified Operations 5.0% 4.7%
Multimedia 4.8% 4.5%
Computers - Micro 4.3% 3.2%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Nokia Oyj (ADR) 3.8% 0.5%
Cisco Systems, Inc. 3.6% 1.9%
Sun Microsystems, Inc. 3.5% --
General Electric Co. 3.1% 2.7%
Comcast Corp. - Special Class A 3.1% 3.7%
AT&T Corp./Liberty Media
Group - Class A 3.0% --
Time Warner, Inc. 3.0% 3.8%
Microsoft Corp. 2.9% 3.0%
America Online, Inc. 2.7% 1.6%
Texas Instruments, Inc. 2.5% 0.3%
- --------------------------------------------------------------------------------
(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 dividends." As of October 31, 1999, Janus Growth and Income Fund
ranked 2/358 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 / October 31, 1999 25
<PAGE>
E!, QVC and USA Networks, not to mention numerous music and online properties.
We expect Liberty Media's ongoing diversification into some of the
fastest-growing cable and media companies to continue to enhance the Fund's
performance.
As for disappointments, we had a few, including financial services firm Newcourt
Credit Group. Although a well-run business, Newcourt's funding agreements with
various insurance companies were not as solid as we believed. Consequently,
Newcourt suffered disproportionately from the lingering effects of last year's
credit crunch, and we sold the stock at a loss. Automotive supplier
Federal-Mogul also proved a drag on performance. While we remain impressed with
management, softness in the auto parts aftermarket caused the stock to decline,
and we liquidated our position, reallocating our assets to more compelling
ideas.
Looking ahead, the key issue currently under debate is whether inflation is on
the horizon. Our take is that despite an economic expansion that will soon be
entering a record-breaking ninth year, the technological revolution is helping
maintain a healthy balance in the economy by boosting productivity and thereby
keeping inflation in check. Nevertheless, the gulf between stocks that are
powering the indexes to new highs and those that are lagging behind has grown
even wider. Accordingly, we will continue to adhere to our philosophy of owning
great companies worthy of their higher valuations as well as those whose stock
prices have yet to reflect exceptional fundamentals.
Thank you for your investment in Janus Growth and Income Fund.
Performance Overview
[GRAPHIC OMITTED]
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
October 31, 1999. The upper and lower right quadrants reflect the ending value
of the hypothetical investment in Janus Growth and Income Fund ($58,043) as
compared to the S&P 500 Index ($44,995).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 49.59%
Five Year, 30.27%
Since 5/15/91*, 23.10%
Janus Growth and Income Fund - $58,043
S&P 500 Index - $44,995
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 85.2%
Advertising Agencies - 0.4%
300,000 Omnicom Group, Inc. .................... $ 26,400,000
Advertising Sales - 1.1%
1,485,000 Outdoor Systems, Inc.* ................. 62,926,875
Aerospace and Defense - 0.5%
500,000 AlliedSignal, Inc. ..................... 28,468,750
Automotive - Cars and Light Trucks - 0.6%
600,000 Ford Motor Co. ......................... 32,925,000
Brewery - 1.5%
1,200,000 Anheuser-Busch Companies, Inc. ......... 86,175,000
Broadcast Services and Programming - 3.8%
4,425,000 AT&T Corp./Liberty Media Group - Class A* 175,617,188
600,000 Clear Channel Communications, Inc.* .... 48,225,000
223,842,188
Cable Television - 6.4%
850,000 Adelphia Communications Corp. - Class A* 46,431,250
500,000 Cablevision Systems Corp. - Class A* ... 33,781,250
4,250,000 Comcast Corp. - Special Class A ........ 179,031,250
2,482,170 Cox Communications, Inc. - Class A* .... 112,783,599
372,027,349
Cellular Telecommunications - 4.1%
870,390 Nextel Communications, Inc. - Class A* . $ 75,016,738
800,000 Sprint Corp./PCS Group* ................ 66,350,000
1,000,000 VoiceStream Wireless Corp.* ............ 98,750,000
240,116,738
Circuits - 0.7%
500,000 Maxim Integrated Products, Inc.* ....... 39,468,750
Commercial Banks - 2.1%
4,203,225 Firstar Corp. .......................... 123,469,734
Commercial Services - 0.8%
1,200,000 Paychex, Inc. .......................... 47,250,000
Computer Data Security - 1.1%
508,330 VeriSign, Inc.* ........................ 62,778,755
Computer Software - 2.9%
1,800,000 Microsoft Corp.* ....................... 166,612,500
Computers - Memory Devices - 2.4%
1,900,000 EMC Corp.* ............................. 138,700,000
Computers - Micro - 4.3%
1,150,000 Dell Computer Corp.* ................... 46,143,750
1,925,000 Sun Microsystems, Inc.* ................ 203,689,062
249,832,812
Containers - Paper and Plastic - 0.3%
350,000 Sealed Air Corp.* ...................... 19,381,250
See Notes of Schedules of Investments.
26 Janus Equity Funds / October 31, 1999
<PAGE>
Janus | Growth and Income Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Cruise Lines - 0.9%
1,000,000 Royal Caribbean Cruises, Ltd. .......... $ 53,062,500
Distribution and Wholesale - 1.1%
800,000 Costco Wholesale Corp.* ................ 64,250,000
Diversified Financial Services - 1.7%
1,850,000 Citigroup, Inc. ........................ 100,131,250
Diversified Operations - 5.0%
1,325,000 General Electric Co. ................... 179,620,312
2,800,000 Tyco International, Ltd. ............... 111,825,000
291,445,312
Electronic Components - Semiconductors - 3.1%
500,000 Intel Corp. ............................ 38,718,750
1,600,000 Texas Instruments, Inc. ................ 143,600,000
182,318,750
Entertainment Software - 0.1%
100,000 Electronic Arts, Inc.* ................. 8,081,250
Finance - Credit Card - 1.7%
635,000 American Express Co. ................... 97,790,000
Finance - Investment Bankers/Brokers - 1.0%
1,500,000 Charles Schwab Corp. ................... 58,406,250
Finance - Mortgage Loan Banker - 0.9%
750,000 Fannie Mae ............................. 53,062,500
Food - Retail - 0.9%
2,600,000 Kroger Co.* ............................ 54,112,500
Internet Content - 1.2%
3,365 Critical Path, Inc.* ................... 153,949
375,000 DoubleClick, Inc.* ..................... 52,500,000
165,000 Inktomi Corp.* ......................... 16,737,187
69,391,136
Internet Software - 3.0%
149,025 Akamai Technologies, Inc.* ............. 21,636,567
1,200,000 America Online, Inc.* .................. 155,625,000
177,261,567
Machinery - General Industrial - 0.8%
300,000 Mannesmann A.G.** ...................... 47,265,719
Medical - Biomedical and Genetic - 0.5%
200,000 Genentech, Inc.* ....................... 29,150,000
Medical - Drugs - 2.1%
1,200,000 Pfizer, Inc. ........................... 47,400,000
1,575,000 Schering-Plough Corp. .................. 77,962,500
125,362,500
Medical Instruments - 1.4%
2,300,000 Medtronic, Inc. ........................ 79,637,500
Money Center Banks - 0.5%
475,000 Republic New York Corp. ................ 30,014,063
Motion Pictures and Services - 0.1%
200,000 Ascent Entertainment Group, Inc.* ...... 3,475,000
Multi-Line Insurance - 1.5%
825,000 American International Group, Inc. ..... 84,923,437
Multimedia - 4.8%
2,500,000 Time Warner, Inc. ...................... 174,218,750
2,400,000 Viacom, Inc. - Class B* ................ 107,400,000
281,618,750
Networking Products - 3.6%
2,850,000 Cisco Systems, Inc.* ................... 210,900,000
Optical Supplies - 0.6%
325,000 Allergan, Inc. ......................... $ 34,896,875
Pipelines - 2.4%
3,450,000 Enron Corp. ............................ 137,784,375
Property and Casualty Insurance - 0.4%
250,000 Progressive Corp. ...................... 23,140,625
Radio - 1.4%
330,000 AMFM, Inc.* ............................ 23,100,000
450,000 Hispanic Broadcasting Corp.* ........... 36,450,000
650,000 Infinity Broadcasting Corp. - Class A* . 22,465,625
82,015,625
Retail - Building Products - 1.2%
950,000 Home Depot, Inc. ....................... 71,725,000
Retail - Internet - 0.2%
106,870 eBay, Inc.* ............................ 14,440,810
Retail - Office Supplies - 1.0%
2,500,000 Staples, Inc.* ......................... 55,468,750
Super - Regional Banks - 0%
50,000 Bank One Corp. ......................... 1,884,375
Telecommunication Equipment - 5.4%
700,000 Lucent Technologies, Inc. .............. 44,975,000
1,900,000 Nokia Oyj (ADR) ........................ 219,568,750
850,000 Nortel Networks Corp. .................. 52,646,875
317,190,625
Telecommunication Services - 1.7%
230,000 Allegiance Telecom, Inc.* .............. 15,870,000
1,900,000 McLeodUSA, Inc. - Class A* ............. 84,787,500
100,657,500
Telephone - Integrated - 1.8%
1,300,000 CenturyTel, Inc. ....................... 52,568,750
600,000 MCI WorldCom, Inc.* .................... 51,487,500
104,056,250
Toys - 0.2%
700,000 Mattel, Inc. ........................... 9,362,500
- --------------------------------------------------------------------------------
Total Common Stock (cost $3,269,798,965) .................. 4,974,658,995
- --------------------------------------------------------------------------------
Corporate Bonds - 2.5%
Cable Television - 0.4%
$ 3,000,000 Adelphia Communications Corp., 7.75%
senior notes, due 1/15/09 ............ 2,711,250
18,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09 ..... 17,010,000
1,249,000 Mediacom L.L.C., 8.50%
senior notes, due 4/15/08 ............ 1,161,570
20,882,820
Casino Hotels - 0.1%
4,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 3,150,000
Diversified Financial Services - 0.1%
4,000,000 General Electric Capital Corp., 6.52%
notes, due 10/8/02 ................... 4,000,000
Food - Retail - 0.2%
10,000,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08 . 9,875,000
4,000,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 . 3,830,000
13,705,000
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 27
<PAGE>
Janus | Growth and Income Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Gambling - Non-Hotel Casinos - 0.1%
$ 3,000,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01 ..... $ 3,000,000
Hotels and Motels - 0.1%
4,000,000 Host Marriott Travel Plaza, 9.50%
senior notes, due 5/15/05 ............ 4,190,000
Internet Software - 0%
2,785,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ............. 2,833,738
Radio - 0.1%
3,000,000 Chancellor Media Corp., 8.125%
senior subordinated notes, due 12/15/07 2,932,500
Recreational Centers - 0%
2,000,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07 1,890,000
Resorts and Theme Parks - 0%
3,000,000 Sun International Hotels, Ltd., 9.00%
company guaranteed notes, due 3/15/07 2,827,500
Retail - Internet - 0.7%
36,395,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09+ .......................... 38,442,218
Retail - Leisure Products - 0.1%
4,000,000 Selmer Company, Inc., 11.00%
senior subordinated notes, due 5/15/05 4,200,000
Telecommunication Services - 0.6%
8,000,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08 8,080,000
10,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08 ............. 9,250,000
14,332,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08+ ........................ 24,238,995
41,568,995
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $142,829,310) ................. 143,622,771
- --------------------------------------------------------------------------------
Preferred Stock - 4.6%
Automotive - Cars and Light Trucks - 0.9%
18,934 Porsche A.G.** ......................... 51,542,504
Cable Television - 2.0%
93,500 Adelphia Communications Corp. - Series D
convertible, 5.50% ................... 15,859,938
450,000 MediaOne Group, Inc., convertible, 4.50%
(Vodafone AirTouch PLC (ADR)) ........ 63,225,000
400,000 MediaOne Group, Inc., convertible, 6.25%
(Vodafone AirTouch PLC (ADR)) ........ 41,600,000
120,684,938
Cruise Lines - 0.2%
71,000 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ................... 11,360,000
Electric - Integrated - 0.8%
400,000 Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) .................. 45,900,000
Finance - Other Services - 0.7%
137,000 TCI Pacific Communications, Inc. - Series A
convertible, 5.00% (AT&T Corp.) ...... 39,456,000
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $180,152,392) ................. 268,943,442
- --------------------------------------------------------------------------------
Repurchase Agreement - 3.4%
$196,300,000 ABN AMRO Securities, Inc., 5.34%
dated 10/29/99, maturing 11/1/99,
to be repurchased at $196,387,354
collateralized by $161,762,042 in
Fannie Mae, 5.75%-7.577%, 2/1/09-
11/1/30; $171,053,686 in Freddie Mac,
5.781%-11.34%, 5/1/00-9/1/29;
$60,109,683 in Ginnie Mae, 5.8312%-
7.50%, 12/15/13-9/15/29; with respective
values of $61,517,827, $84,935,337 and
$53,772,836 (cost $196,300,000) ...... $ 196,300,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 3.8%
Fannie Mae:
50,000,000 4.775%, 11/12/99 ..................... 49,927,889
25,000,000 5.20%, 11/30/99 ...................... 24,895,278
50,000,000 5.21%, 12/6/99 ....................... 49,744,791
50,000,000 5.00%, 12/10/99 ...................... 49,724,292
50,000,000 5.35%, 2/9/00 ........................ 49,236,000
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $223,549,194) ........ 223,528,250
- --------------------------------------------------------------------------------
Total Investments (total cost $4,012,629,861) - 99.5% ..... 5,807,053,458
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.5% 29,831,993
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 5,836,885,451
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
28 Janus Equity Funds / October 31, 1999
<PAGE>
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.1% $ 119,905,000
Canada 0.9% 52,646,875
Finland 3.8% 219,568,750
Germany 1.7% 98,808,223
United States++ 91.5% 5,316,124,610
- --------------------------------------------------------------------------------
Total 100.0% $ 5,807,053,458
++Includes Short-Term Securities (84.3% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Euro 11/18/99 18,100,000 $ 19,046,630 $ 209,785
Euro 12/9/99 25,500,000 26,790,300 805,560
Euro 4/14/00 6,900,000 7,184,970 267,030
Euro 4/20/00 38,000,000 39,554,200 2,261,000
- --------------------------------------------------------------------------------
Total $ 92,576,100 $ 3,543,375
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 29
<PAGE>
Janus | Mercury Fund
[PHOTO]
Warren Lammert
portfolio manager
I'm pleased to report that Janus Mercury Fund returned 86.02% during the fiscal
year ended October 31, 1999, more than tripling the 25.66% gain registered by
its benchmark, the S&P 500 Index.(1) These impressive results earned the Fund a
top-decile ranking, placing it 17th out of 277 capital appreciation funds
tracked by Lipper, Inc., a leading mutual fund rating company.(2)
The fiscal year began with the Asian financial crisis in full swing. Meanwhile,
the U.S. economy remained resilient, continuing its longest run of peacetime
expansion in history. If anything, the American economy has been too resilient -
in recent months, the Federal Reserve has increased short-term rates twice in an
effort to cool the economy. There are still few signs of inflation at the
consumer level, however, and the Fed's recent actions appear more preemptive
than reactive.
Long-term interest rates rose steadily against this backdrop, keeping investors
on edge and stock prices volatile. Nonetheless, our research-intensive focus on
individual opportunities continued to pay dividends.
Our wireless holdings advanced as worldwide subscriber growth accelerated from
1998's already impressive 50% growth. We are especially excited about the
emergence of wireless data, the next visible driver of growth. Soon, wireless
subscribers around the world will be able to access airline schedules, stock
quotes, sport scores and even a modified Internet browser from their wireless
phones, compelling existing users to upgrade their equipment while attracting
new subscribers in even greater numbers. Nokia, a strong performer and currently
the Fund's largest holding, is perhaps the most obvious beneficiary. The
company's dominance of cellular handset manufacturing, combined with its other
businesses, most notably its strong share of the cellular base station market,
continue to bolster performance.
Booming demand for cellular services also benefited several of our technology
stocks. Microchip manufacturer Texas Instruments, whose digital signal
processing chips will power two-thirds of the nearly 300 million cellular phones
expected to be sold in 1999, was one of our best-performing stocks. Other
standouts included Linear Technology, ASM Lithography and Vitesse Semiconductor,
all of which have created a highly profitable niche in different areas of the
microchip industry.
Our investments in emerging "pure play" Internet leaders such as Yahoo!,
Amazon.com and DoubleClick also contributed to the Fund's strong performance.
The leading destination on the World Wide Web, Yahoo! has already achieved
impressive 35% operating margins. While Amazon.com and DoubleClick are in the
early stages of evolution in terms of profitability, we believe they too have
highly valuable business franchises and will deliver exceptional profits as
their models mature. A number of our more traditional technology holdings, such
as Cisco Systems, EMC Corp. and Sun Microsystems, also performed well, acting as
enablers of the Internet's growth by providing much of the Web's technical
infrastructure.
Cable has been another important theme for the Fund. Although a number of
high-profile mergers have reduced our overall cable weighting, we remain excited
about the opportunities that lie ahead, particularly as broadband services
become part of the
Portfolio Profile October 31,1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 95.0% 88.1%
Foreign 15.8% 6.8%
European 13.6% 6.4%
Top 10 Equities (% of Assets) 40.6% 42.1%
Number of Stocks 57 57
Cash & Fixed Income Securities 5.0% 11.9%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Telecommunication Equipment 8.8% 4.6%
Broadcast Services
and Programming 7.1% 1.5%
Retail - Internet 5.7% 1.4%
Cable Television 5.1% 18.7%
Electronic Components -
Semiconductors 4.5% --
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Nokia Oyj 8.8% 4.3%
AT&T Corp./Liberty Media Group - Class A 5.7% --
Amazon.com, Inc. 4.7% 0.7%
Time Warner, Inc. 4.1% 5.6%
Enron Corp. 3.8% --
Cisco Systems, Inc. 3.1% 4.0%
Schering-Plough Corp. 2.9% --
Comcast Corp. - Special Class A 2.7% 5.2%
EMC Corp. 2.6% --
Medtronic, Inc. 2.2% --
- --------------------------------------------------------------------------------
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a capital appreciation fund 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 October 31,
1999, Janus Mercury Fund ranked 4/96 of capital appreciation funds 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.
30 Janus Equity Funds / October 31, 1999
<PAGE>
consumer mainstream. The entire industry is transforming itself, measurably
improving the traditional video business while offering new value-added services
such as telephony, high-speed Internet access and interactive television. While
a number of cable stocks paused during the last half of the year as
consolidation cooled and legal battles surrounding the question of open access
were fought, our positions in Comcast, Cox Communications, Time Warner,
UnitedGlobalCom, NTL and AT&T Liberty Media traded higher.
Despite the Fund's strong overall performance, we did experience some
disappointments. Our positions in a number of large drug companies declined as a
result of rising interest rates and uncertainty surrounding Medicare reform.
Some of these companies also encountered product-related difficulties, including
Monsanto, Eli Lilly and Pfizer, and we chose to exit those positions. At the
same time, we have become more enthusiastic about opportunities for
Schering-Plough and the new formulation of its product Intron A. This treatment
for hepatitis C and cancer appears to retain impressive efficacy while
significantly reducing the troublesome side-effects of the current therapy. We
have also maintained significant positions in the medical devices companies
Medtronic and Minimed.
As we head into the year 2000, we are maintaining our focus on companies with
strong business models and outstanding growth opportunities. Intensive,
collaborative research to identify and understand these individual businesses
continues to define our investment process.
Thank you for your confidence and investment in Janus Mercury Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999.
The upper and lower right quadrants reflect the ending value of the hypothetical
investment in Janus Mercury Fund ($56,908) as compared to the S&P 500 Index
($35,378).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 86.02%
Five Year, 32.15%
Since 5/3/93*, 30.69%
Janus Mercury Fund - $56,908
S&P 500 Index - $35,378
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 95.0%
Advertising Sales - 1.5%
768,761 Lamar Advertising Co.* ................. $ 41,513,094
2,136,169 Outdoor Systems, Inc.* ................. 90,520,161
132,033,255
Broadcast Services and Programming - 7.1%
13,118,014 AT&T Corp./Liberty Media Group - Class A* 520,621,181
395,330 Liberty Digital, Inc. - Class A* ....... 12,354,062
1,228,360 UnitedGlobalCom, Inc. - Class A* ....... 106,867,320
639,842,563
Cable Television - 5.1%
1,509,790 Cablevision Systems Corp. - Class A* ... 102,005,187
5,705,280 Comcast Corp. - Special Class A ........ 240,334,920
2,728,430 Cox Communications, Inc. - Class A* .... 123,973,038
466,313,145
Cellular Telecommunications - 3.9%
1,162,425 Sprint Corp./PCS Group* ................ 96,408,623
11,791,360 Vodafone AirTouch PLC .................. 54,756,093
1,641,255 Vodafone AirTouch PLC (ADR) ............ 78,677,662
1,225,970 VoiceStream Wireless Corp.* ............ 121,064,537
350,906,915
Circuits - 1.6%
539,210 Maxim Integrated Products, Inc.* ....... $ 42,563,889
2,174,000 Vitesse Semiconductor Corp.* ........... 99,732,250
142,296,139
Commercial Banks - 2.4%
1,288,210 Fifth Third Bancorp .................... 95,086,001
4,154,518 Firstar Corp. .......................... 122,038,966
217,124,967
Computer Data Security - 1.0%
741,140 VeriSign, Inc.* ........................ 91,530,790
Computer Services - 1.8%
1,247,955 Sapient Corp.* ......................... 159,582,246
Computer Software - 2.8%
2,112,495 Microsoft Corp.* ....................... 195,537,818
279,910 Phone.com, Inc.* ....................... 57,521,505
253,059,323
Computers - Integrated Systems - 2.3%
1,627,405 ASM Lithography Holding N.V. (ADR)* .... 118,190,288
816,305 Comverse Technology, Inc.* ............. 92,650,618
210,840,906
Computers - Memory Devices - 2.6%
3,206,510 EMC Corp.* ............................. 234,075,230
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 31
<PAGE>
Janus | Mercury Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computers - Micro - 1.0%
835,885 Sun Microsystems, Inc.* ................ $ 88,447,082
Diversified Operations - 2.1%
4,832,245 Tyco International, Ltd. ............... 192,987,785
Electronic Components - Semiconductors - 4.5%
618,825 Broadcom Corp. - Class A* .............. 79,093,570
1,432,115 Conexant Systems, Inc.* ................ 133,723,738
2,142,035 Texas Instruments, Inc. ................ 192,247,641
405,064,949
Electronic Saftey Devices - 0.5%
1,337,055 Pittway Corp. - Class A ................ 44,122,815
Entertainment Software - 0.7%
778,910 Electronic Arts, Inc.* ................. 62,945,664
Fiber Optics - 1.7%
933,970 JDS Uniphase Corp.* .................... 155,856,244
Finance - Credit Card - 1.9%
1,144,650 American Express Co. ................... 176,276,100
Finance - Investment Bankers/Brokers - 0.9%
3,475,360 E*TRADE Group, Inc.* ................... 82,757,010
Instruments - Scientific - 0.4%
603,750 PE Corp./PE Biosystems Group ........... 39,168,281
Internet Content - 4.3%
1,310,530 DoubleClick, Inc.* ..................... 183,474,200
342,235 Inktomi Corp.* ......................... 34,715,463
956,605 Yahoo!, Inc.* .......................... 171,292,083
389,481,746
Internet Software - 3.4%
1,402,590 America Online, Inc.* .................. 181,898,391
1,337,525 Exodus Communications, Inc.* ........... 115,027,150
208,015 Verio, Inc.* ........................... 7,761,560
304,687,101
Machinery - General Industrial - 4.2%
2,145,080 Applied Materials, Inc.* ............... 192,654,998
1,185,550 Mannesmann A.G.** ...................... 186,786,242
379,441,240
Medical - Drugs - 2.9%
5,232,085 Schering-Plough Corp. .................. 258,988,207
Medical Instruments - 2.2%
5,879,420 Medtronic, Inc. ........................ 203,574,918
Medical Products - 1.2%
1,382,665 MiniMed, Inc.* ......................... 104,823,290
Multimedia - 4.1%
5,394,910 Time Warner, Inc. ...................... 375,957,791
Networking Products - 3.1%
3,781,001 Cisco Systems, Inc.* ................... 279,794,074
Pipelines - 3.8%
8,655,530 Enron Corp. ............................ 345,680,229
Retail - Building Products - 1.0%
1,173,695 Home Depot, Inc. ....................... 88,613,973
Retail - Internet - 5.5%
6,025,235 Amazon.com, Inc.* ...................... 425,532,222
566,730 eBay, Inc.* ............................ 76,579,391
502,111,613
Retail - Office Supplies - 1.2%
4,841,887 Staples, Inc.* ......................... $ 107,429,368
Telecommunication Equipment - 8.8%
77,399 Nokia Oyj** ............................ 8,851,717
6,816,255 Nokia Oyj (ADR)** ...................... 787,703,468
796,555,185
Telecommunication Services - 2.6%
2,424,380 Level 3 Communications, Inc.* .......... 165,766,982
975,631 NTL, Inc.* ............................. 73,538,187
239,305,169
Telephone - Integrated - 0.9%
1,395,320 NEXTLINK Communications, Inc. - Class A* 83,457,577
- --------------------------------------------------------------------------------
Total Common Stock (cost $6,266,378,760) .................. 8,605,132,890
- --------------------------------------------------------------------------------
Corporate Bond - 0.2%
Retail - Internet - 0.2%
$ 30,338,000 Amazon.com, Inc., zero coupon
senior discount notes, due 5/1/08
(cost $19,514,415) ................... 20,288,538
- --------------------------------------------------------------------------------
Repurchase Agreement - 1.9%
177,200,000 ABN AMRO Securities, Inc., 5.34%
dated 10/29/99, maturing 11/1/99,
to be repurchased at $177,278,854
collateralized by $146,022,587 in
Fannie Mae, 5.75%-7.577%, 2/1/09-
11/1/30; $154,410,154 in Freddie Mac,
5.781%-11.34%, 5/1/00-9/1/29;
$54,261,007 in Ginnie Mae, 5.8312%-
7.50%, 12/15/13-9/15/29; with respective
values of $55,532,139, $76,671,125
and $48,540,737 (cost $177,200,000) .. 177,200,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 2.5%
Fannie Mae:
25,000,000 4.80%, 11/26/99 ...................... 24,909,028
50,000,000 5.00%, 12/10/99 ...................... 49,724,292
25,000,000 5.50%, 1/18/00 ....................... 24,703,500
50,000,000 4.69%, 2/7/00 ........................ 49,251,000
25,000,000 5.54%, 2/14/00 ....................... 24,598,750
Freddie Mac
50,000,000 4.70%, 11/12/99 ...................... 49,928,194
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $223,104,222) ........ 223,114,764
- --------------------------------------------------------------------------------
Total Investments (total cost $6,686,197,397) - 99.6% ..... 9,025,736,192
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.4% 34,146,565
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 9,059,882,757
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
32 Janus Equity Funds / October 31, 1999
<PAGE>
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.1% $ 192,987,785
Finland 8.8% 796,555,185
Germany 2.1% 186,786,242
Netherlands 1.3% 118,190,288
United Kingdom 1.5% 133,433,755
United States++ 84.2% 7,597,782,937
- --------------------------------------------------------------------------------
Total 100.0% $ 9,025,736,192
++Includes Short-Term Securities (79.7% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Euro 12/9/99 313,000,000 $ 328,837,800 $ 8,509,555
Euro 4/7/00 160,850,000 167,557,445 7,433,498
- --------------------------------------------------------------------------------
Total $ 496,395,245 $ 15,943,053
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 33
<PAGE>
Janus | Olympus Fund
[PHOTO]
Claire Young
portfolio manager
Janus Olympus Fund gained 88.34% for our fiscal year ended October 31, 1999,
substantially outpacing its benchmark index, the S&P 500, which returned
25.66%.(1) For the period, the Fund achieved a top-decile ranking of 12th out of
278 capital appreciation funds tracked by Lipper, Inc., a leading mutual fund
rating company.(2)
Overall, I was gratified that many of the investment theses we have identified
over the past year have begun to bear fruit, as evidenced by the Fund's
performance. Our focus on leading growth companies enabled us to benefit from
several exciting industry trends.
Among the most dynamic industries today is the consumer-targeted electronic
commerce business. Despite its embryonic state, the area has already seen its
share of consolidation as companies attempt to gain scale in order to stay
competitive. Giant media players started swallowing second-tier portals, and the
largest e-commerce sites expanded their offerings to other competitive areas.
The market leaders continued to gain share of time spent online as well as
advertising dollars.
America Online, the leading Internet and online service provider, was one main
beneficiary of this trend. AOL maintained its share of new-user signings as well
as its potent pricing. Amazon.com, the premier online retailer, capitalized on
its loyal and growing customer base by introducing new categories of products
such as consumer electronics and toys. While the company invested heavily in its
warehouse capabilities to maintain excellent customer response times, it also
began growing high-return, low-investment areas such as auctions and electronic
malls.
Explosive Internet usage spurred corporations to accelerate their infrastructure
investments. In the area of communications, the increased traffic forced service
providers to boost network capacity. For corporations in general, technology
spending remained robust in order to stay abreast with the growth of consumers
and partners accessing their Web sites.
One company capitalizing on the increased capital expenditures is Sun
Microsystems. While continuing to benefit from its leading Web server position,
Sun expanded into the communications space with service provider offerings to
manage the convergence of voice, data and wireless traffic. JDS Uniphase, a
photonic component manufacturer, saw tremendous demand as telecommunications and
cable operators deployed its offerings to expand fiber-optic capacity by
dividing light into different wavelengths. In the area of corporate spending,
Veritas, a storage management software company, benefitted from the explosion of
data created by companies' computer systems. With its extensive original
equipment manufacturer relationships, Veritas is becoming the prime vendor of
backup, recovery and disk management systems for both UNIX and NT storage
solutions. Finally, as more business is transacted over the World Wide Web,
VeriSign, which enables secure electronic commerce over the Internet, continued
to experience accelerating demand for its consumer and enterprise digital
certificate services.
Another important area, worldwide wireless communications, also exceeded
expectations. In the United States, wireless penetration of 24% still lags many
European countries but is rising rapidly. Fragmented regional networks are being
consolidated into larger ones to offer seamless coverage. Carriers are
increasing capacity as mobile usage for voice grows and new applications, such
as wireless data transmission, appear on the horizon. New
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 89.5% 80.3%
Foreign 17.4% 7.4%
European 14.8% 7.4%
Top 10 Equities (% of Assets) 32.8% 35.6%
Number of Stocks 64 49
Cash & Cash Equivalents 10.5% 19.7%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Telecommunication Equipment 6.8% 2.2%
Cellular Telecommunications 6.2% 1.2%
Networking Products 4.9% 6.3%
Electronic Components -
Semiconductors 4.7% --
Internet Software 4.5% 3.3%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Nokia Oyj (ADR) 5.4% 2.2%
Sun Microsystems, Inc. 4.5% --
VERITAS Software Corp. 3.6% 2.1%
Cisco Systems, Inc. 3.3% 4.5%
JDS Uniphase Corp. 3.1% 1.2%
Tiffany & Co. 2.7% --
America Online, Inc. 2.7% 3.3%
Amazon.com, Inc. 2.6% --
Vodafone AirTouch Group PLC (ADR) 2.5% --
Time Warner, Inc. 2.4% 3.4%
- --------------------------------------------------------------------------------
(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." 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.
34 Janus Equity Funds / October 31, 1999
<PAGE>
handheld terminals are being introduced, not just for phone usage, but also to
surf the Web, receive messages and access computer networks.
Nokia, the leading mobile phone and network supplier, continued its aggressive
pace of innovation to create products that allow access to information anytime
or anywhere, whether for wireless LANs in the office or devices that combine
voice, data and video for consumers on the go. At the same time, Conexant
Systems and Texas Instruments benefitted from the semiconductor chips they
provide for these mobile communication devices. And on the service end, newly
merged Vodafone/AirTouch is poised to reap rewards from the introduction of data
products beginning next year.
Some of our investments, however, did not live up to expectations. McKesson/HBO
Corporation was sold when the company announced it had improperly accounted for
past software sales. Boston Scientific was liquidated as manufacturing
inefficiencies and product recalls cast a cloud over the company's prospects,
despite the efforts of a new CEO. Lastly, Warner-Lambert was sold as safety
concerns surfaced about its diabetes drug, Rezulin.
As we enter a new millennium, the U.S. economy continues to grow at a healthy
pace. Near-term fears of the Year 2000 will soon pass, and companies can focus
again on growth opportunities. If inflation remains benign, the market should
continue to reward companies that have superior growth and earnings
characteristics. I believe we are well positioned to benefit from the leadership
that our companies demonstrate.
Thank you for your continued investment in Janus Olympus Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31,
1999. The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Olympus Fund ($35,884) as compared to the S&P 500 Index
($23,621).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 88.34%
Since 12/29/95*, 39.46%
Janus Olympus Fund - $35,884
S&P 500 Index - $23,621
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 89.5%
Apparel Manufacturer - 0.9%
450,000 Gucci Group N.V. - New York Shares ..... $ 36,337,500
Audio and Video Products - 1.0%
434,195 Gemstar International Group, Ltd.* ..... 37,720,691
Broadcast Services and Programming - 3.1%
525,000 Clear Channel Communications, Inc.* .... 42,196,875
622,725 Grupo Televisa S.A. (GDR) .............. 26,465,812
600,000 UnitedGlobalCom, Inc. - Class A* ....... 52,200,000
120,862,687
Cable Television - 3.4%
1,650,000 Comcast Corp. - Special Class A ........ 69,506,250
1,405,065 Cox Communications, Inc. - Class A* .... 63,842,641
133,348,891
Cellular Telecommunications - 6.2%
592,000 Nextel Communications, Inc. - Class A* . 51,023,000
1,550,000 Orange PLC*,** ......................... 38,280,712
425,000 Powertel, Inc.* ........................ 25,021,875
2,000,000 Vodafone AirTouch PLC (ADR) ............ 95,875,000
316,045 VoiceStream Wireless Corp.* ............ 31,209,444
241,410,031
Commerical Banks - 0.9%
1,226,100 Firstar Corp. .......................... $ 36,016,687
Commerical Services - 1.0%
976,042 Paychex, Inc. .......................... 38,431,654
Computer Data Security - 1.7%
520,000 VeriSign, Inc.* ........................ 64,220,000
Computer Software - 1.8%
770,000 Microsoft Corp.* ....................... 71,273,125
Computers - Integrated Systems - 3.5%
500,000 ASM Lithography Holding N.V. (ADR)* .... 36,312,500
140,000 Brocade Communications Systems, Inc.* .. 37,660,000
224,985 Comverse Technology, Inc.* ............. 25,535,797
1,428,452 Psion PLC** ............................ 35,862,387
135,370,684
Computers - Memory Devices - 3.6%
1,300,000 VERITAS Software Corp.* ................ 140,237,500
Computers - Micro - 4.5%
1,650,000 Sun Microsystems, Inc.* ................ 174,590,625
Distribution and Wholesale - 0.9%
450,985 Costco Wholesale Corp. ................. 36,219,733
Diversified Operations - 1.2%
1,200,000 Tyco International, Ltd. ............... 47,925,000
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 35
<PAGE>
Janus | Olympus Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 4.7%
625,000 Conexant Systems, Inc.* ................ $ 58,359,375
800,000 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)* ................. 27,700,000
700,000 Texas Instruments, Inc. ................ 62,825,000
450,000 Xilinx, Inc.* .......................... 35,381,250
184,265,625
Fiber Optics - 4.2%
725,000 JDS Uniphase Corp.* .................... 120,984,375
187,795 Sycamore Networks, Inc.* ............... 40,375,925
161,360,300
Finance - Investment Bankers/Brokers - 0.9%
940,000 Charles Schwab Corp. ................... 36,601,250
Instruments - Scientific - 0.9%
550,000 PE Corp./PE Biosystems Group ........... 35,681,250
Internet Software - 4.5%
800,000 America Online, Inc.* .................. 103,750,000
223,005 Digital Island, Inc.* .................. 15,052,838
375,000 RealNetworks, Inc.* .................... 41,132,813
100,000 Vignette Corp.* ........................ 15,800,000
175,735,651
Machinery - General Industrial - 1.6%
700,000 Applied Materials, Inc.* ............... 62,868,750
Medical - Biomedical and Genetic - 3.5%
503,935 Amgen, Inc.* ........................... 40,188,816
500,000 Biogen, Inc.* .......................... 37,062,500
435,895 Enzon, Inc.* ........................... 12,777,172
317,530 Genentech, Inc.* ....................... 46,279,997
136,308,485
Medical - Drugs - 1.5%
900,000 Pfizer, Inc. ........................... 35,550,000
450,000 Schering-Plough Corp. .................. 22,275,000
57,825,000
Medical Instruments - 1.2%
1,400,000 Medtronic, Inc. ........................ 48,475,000
Money Center Banks - 1.5%
1,350,000 Bank of New York Company, Inc. ......... 56,531,250
Multimedia - 2.4%
1,350,000 Time Warner, Inc. ...................... 94,078,125
Networking Products - 4.9%
1,750,000 Cisco Systems, Inc.* ................... 129,500,000
220,000 Juniper Networks, Inc.* ................ 60,637,500
190,137,500
Retail - Apparel and Shoe - 2.0%
1,200,000 AnnTaylor Stores Corp.* ................ 51,075,000
700,000 Gap, Inc. .............................. 25,987,500
77,062,500
Retail - Building Products - 0.8%
400,000 Home Depot, Inc. ....................... 30,200,000
Retail - Drug Store - 1.0%
1,500,000 Walgreen Co. ........................... 37,781,250
Retail - Internet - 3.2%
1,450,000 Amazon.com, Inc.* ...................... 102,406,250
150,000 eBay, Inc.* ............................ 20,268,750
122,675,000
Retail - Jewelry - 2.7%
1,750,000 Tiffany & Co. .......................... $ 104,125,000
Retail - Office Supplies - 0.7%
1,280,000 Staples, Inc.* ......................... 28,400,000
Satellite Telecommunications - 1.3%
800,000 EchoStar Communications Corp.* ......... 49,500,000
Telecommunication Equipment - 6.8%
850,000 Lucent Technologies, Inc. .............. 54,612,500
1,800,000 Nokia Oyj (ADR) ........................ 208,012,500
262,625,000
Telecommunication Services - 3.2%
1,648,396 COLT Telecom Group PLC*,** ............. 49,228,325
300,000 COLT Telecom Group PLC (ADR)*,** ....... 35,550,000
527,104 United Pan-Europe Communications N.V.*,** 40,498,325
125,276,650
Telephone - Integrated - 2.3%
400,000 MCI WorldCom, Inc.* .................... 34,325,000
900,180 NEXTLINK Communications, Inc. - Class A* 53,842,016
88,167,016
- --------------------------------------------------------------------------------
Total Common Stock (cost $2,176,732,286) .................. 3,479,645,410
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 3.9%
Associates Corp N.A.
$153,500,000 5.30%, 11/1/99
(amortized cost $153,500,000) ........ 153,500,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 5.8%
Fannie Mae:
50,000,000 4.775%, 11/12/99 ..................... 49,927,889
50,000,000 4.96%, 11/15/99 ...................... 49,902,778
50,000,000 4.70%, 11/17/99 ...................... 49,895,556
50,000,000 5.52%, 1/20/00 ....................... 49,392,000
Federal Home Loan Bank System
25,000,000 5.50%, 2/28/00 ....................... 24,543,750
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $223,660,597) ........ 223,661,973
- --------------------------------------------------------------------------------
Total Investments (total cost $2,553,892,883) - 99.2% .... 3,856,807,383
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.8% 30,640,665
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 3,887,448,048
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
36 Janus Equity Funds / October 31, 1999
<PAGE>
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 1.2% $ 47,925,000
Finland 5.4% 208,012,500
Mexico 0.7% 26,465,812
Netherlands 2.9% 113,148,325
Taiwan 0.7% 27,700,000
United Kingdom 6.6% 254,796,424
United States++ 82.5% 3,178,759,322
- --------------------------------------------------------------------------------
Total 100.0% $ 3,856,807,383
++Includes Short-Term Securities (72.6% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 11/18/99 31,200,000 $ 51,286,560 ($ 453,610)
British Pound 4/7/00 39,800,000 65,443,140 448,638
Euro 12/9/99 12,500,000 13,132,500 243,964
Euro 4/20/00 39,400,000 41,011,460 2,344,300
- --------------------------------------------------------------------------------
Total $ 170,873,660 $ 2,583,292
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 37
<PAGE>
Janus | Overseas Fund (closed to new investors)
[PHOTO]
Helen Young Hayes
portfolio manager
[PHOTO]
Laurence Chang
portfolio manager
We are pleased to report that Janus Overseas Fund returned 41.77% for the
12-month period ended October 31, 1999, while our benchmark, the Morgan Stanley
Capital International EAFE Index, gained 23.03%.(1) This strong performance
placed the Fund 35th out of 589 international funds tracked by Lipper, Inc., a
leading mutual fund rating company.(2)
The current outlook for the global economy is in some respects the inverse of
one year ago. Last fall, investor concerns centered on the risk of global
deflation because of the ongoing recession in Japan and the economic implosion
in Asian emerging markets. Today, the Japanese economy has bottomed, and most of
the Asian emerging markets have seen a marked rebound in economic activity. With
growth in the U.S. remaining robust and European activity accelerating, interest
rates have moved up from last year's lows on heightened concerns over potential
inflation.
In this volatile environment, our strategy has remained consistent: focusing on
great individual international companies that can create shareholder value
regardless of short-term fluctuations in the economy. An increasingly rich area
for finding these companies has been in the converging world of technology and
telecommunications. In particular, we are excited about investment opportunities
being created by the ever-increasing demand for data delivery technologies such
as wireless and the Internet.
The Internet is creating new services and service providers. One of the Fund's
strongest performers has been Softbank, the Japanese company responsible for
funding leading Internet companies such as Yahoo! and E-Trade as well as
bringing these and other Internet businesses into Japan. As Internet content
becomes richer, demand for broadband connectivity also increases. Cable
companies such as NTL and Telewest in the UK, Dutch-based United Pan-European
Communications and Rogers Communications in Canada are particularly well
positioned with their high-capacity networks.
We have also found opportunities among technological enablers of the Internet,
such as Canadian telecom equipment giant Nortel Networks and the Canadian/U.S.
firm JDS Uniphase. These two lead the "photonics" revolution - the technology of
increasing network capacity by breaking down a fiber-optic strand into dozens of
different wavelengths, each carrying digital signals.
Silicon ultimately powers the Internet. As such, we have invested in
semiconductor leaders ST Microelectronics in France, Philips Electronics in the
Netherlands and Galileo Technologies in Israel. We are also positive about
companies that enable semiconductor manufacturers to continue to increase the
performance of their chips, such as Dutch technology company ASM Lithography.
Further down the silicon foodchain, we have invested in Taiwan Semiconductor
Manufacturing Company (TSMC), the world's leading semiconductor foundry. We
expect TSMC to continue to outpace overall industry growth because of the
ongoing trend toward the outsourcing of semiconductor fabrication.
The Internet is just now beginning to go mobile, creating new opportunities for
cellular phone service providers worldwide. Japan's NTT DoCoMo in particular has
emerged as the mobile data pioneer, with its new "I-mode" data service expected
to garner more than four million customers in the first year. Although DoCoMo
has been an extraordinarily strong performer, we've also been pleased by the
performance of the Fund's other investments in
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 94.3% 85.7%
Foreign 87.3% 83.1%
Top 10 Equities (% of Assets) 34.4% 23.1%
Number of Stocks 110 146
Cash & Cash Equivalents 5.7% 14.3%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Cellular Telecommunications 14.9% 5.0%
Telecommunication Services 10.9% 5.9%
Telecommunication Equipment 9.9% 5.0%
Diversified Operations 5.3% 7.9%
Computer Services 4.4% 5.1%
- --------------------------------------------------------------------------------
Top 5 Countries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Japan 19.2% 9.4%
United Kingdom 11.6% 16.6%
Netherlands 8.6% 7.8%
Canada 7.7% 0.8%
Finland 6.8% 5.8%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31,1999 October 31, 1998
- --------------------------------------------------------------------------------
NTT Mobile Communications Network, Inc. 7.9% 2.4%
Nokia Oyj 5.7% 4.5%
Mannesmann A.G 3.9% 3.1%
China Telecom, Ltd. 3.0% 0.4%
COLT Telecom Group PLC 2.9% 1.8%
Tyco International, Ltd. 2.6% --
Koninklijke (Royal) Philips Electronics N.V 2.3% 1.1%
Softbank Corp. 2.1% --
Vodafone AirTouch PLC 2.0% 0.5%
UnitedGlobalCom, Inc. 2.0% --
- --------------------------------------------------------------------------------
(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.
(2) Lipper, Inc. defines an international fund as one that "invests its assets
in securities with primary trading markets outside of the United States."
As of October 31, 1999, Janus Overseas Fund ranked 1/217 for the 5-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.
38 Janus Equity Funds / October 31, 1999
<PAGE>
leading-edge wireless operators. These include Finland's Sonera, Mannesmann in
Germany, Vodafone and Orange in the U.K, China Telecom and SK Telecom in Korea.
As these cellular companies upgrade their networks to accommodate both
accelerating subscriber growth and new data applications, leading telecom
equipment firms like Nokia in Finland and Sweden's Ericsson will also continue
to benefit. Nokia has been a notable performer as it continued to extend market
share in both its network infrastructure and cellular handset businesses. Adding
to our excitement for Nokia is our belief that new mobile applications, such as
wireless LANs and handsets designed for the upcoming era of high-speed mobile
Internet access, will further increase market opportunities.
Not all of our companies contributed to the Fund's strong performance, however.
Wolters Kluwer, a Dutch publisher and long-time holding, declined due to rising
expenses as the company undertook initiatives to adapt to the Internet and
online distribution. We consequently liquidated the position.
Looking ahead, when evaluating potential investments, we will remain focused on
the fundamentals of individual companies and carefully watch valuation levels.
Given the opportunities in the exciting businesses we have discussed in this
letter - and in the other dynamic parts of the global economy, such as business
services, healthcare, and financial services - we hope to continue to find
international companies that will provide compelling investment returns over the
long term.
Once again, thank you for your investment and confidence in Janus Overseas Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999. The lower right
quadrant reflects the ending value of the hypothetical investment in Janus
Overseas Fund ($27,353) as compared to the Morgan Stanley Capital International
EAFE Index ($16,201).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 41.77%
Five Year, 21.43%
Since 5/2/94*, 20.08%
Janus Overseas Fund - $27,353
Morgan Stanley
Capital International
EAFE Index - $16,201
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 90.6%
Apparel Manufacturers - 0.4%
28,014 Gucci Group N.V.** ..................... $ 2,242,169
245,520 Gucci Group N.V. - New York Shares** ... 19,825,740
22,067,909
Audio and Video Products - 1.4%
490,200 Sony Corp.** ........................... 76,376,471
Brewery - 0.4%
1,832,000 Kirin Brewery Company, Ltd.** .......... 20,960,205
Broadcast Services and Programming - 1.7%
740,700 Grupo Televisa S.A. (GDR) .............. 31,479,750
760,035 UnitedGlobalCom, Inc. - Class A* ....... 66,123,045
97,602,795
Cable Television - 3.4%
4,386,650 Le Groupe Videotron ltee.**,# .......... 62,628,085
257,835 Rogers Communications, Inc.*,** ........ 5,188,929
4,483,610 Rogers Communications, Inc. - Class B*,** 90,836,616
8,174,831 Telewest Communications PLC*,** ........ 35,010,749
193,664,379
Cellular Telecommunications - 14.9%
10,648,000 China Telecom, Ltd.*,** ................ $ 36,454,879
2,001,470 China Telecom, Ltd. (ADR)*,** .......... 135,099,225
16,715 NTT Mobile Communications
Network, Inc.** ...................... 443,661,648
1,171,990 Orange PLC*,** ......................... 28,944,911
2,073,390 Partner Communications Company,
Ltd. (ADR)* .......................... 32,655,893
4,495,080 Telecom Italia Mobile S.p.A.** ......... 28,134,718
866,130 Telesp Celular Participacoes S.A. (ADR)* 21,328,451
13,575,675 Vodafone AirTouch PLC** ................ 63,042,000
1,073,660 Vodafone AirTouch PLC (ADR)** .......... 51,468,576
840,790,301
Commerical Banks - 2.0%
1,273,332 Argentaria, Caja Postal y Banco Hipotecario
de Espana, S.A.** .................... 28,238,881
1,156,920 Banco Santander Central Hispano S.A.** . 12,001,730
536,936 Bipop - Carire S.p.A.** ................ 22,720,593
11,169 Julius Baer Holding A.G. - Class B** ... 33,608,073
3,877,853 UniCredito Italiano S.p.A.** ........... 18,121,084
114,690,361
Computer Data Security - 0.4%
620,424 Baltimore Technologies PLC*,** ......... 19,088,508
53,640 Check Point Software Technologies, Ltd* 6,205,477
25,293,985
See Notes to Schedules of Investments
Janus Equity Funds / October 31, 1999 39
<PAGE>
Janus | Overseas Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computer Services - 4.4%
517,376 Atos S.A.*,** .......................... $ 66,233,384
239,800 Cap Gemini S.A.** ...................... 36,294,018
465,829 CMG PLC** .............................. 18,150,352
1,711,420 Getronics N.V.** ....................... 85,262,551
2,574,401 Logica PLC** ........................... 39,201,825
245,142,130
Computer Software - 0.4%
580,393 Tietoenator Oyj** ...................... 20,130,728
Computers - Integrated Systems - 2.6%
339,813 ASM Lithography Holding N.V.*,** ....... 23,965,466
264,296 ASM Lithography Holding N.V. (ADR)*,** . 19,194,497
136,766 Equant N.V.*,** ........................ 13,296,681
152,195 Equant N.V. - New York Shares*,** ...... 14,762,915
1,732,000 Fujitsu, Ltd.** ........................ 52,112,664
1,894,765 SEMA Group PLC** ....................... 24,772,168
148,104,391
Computers - Micro - 0.4%
23,174,000 Legend Holdings, Ltd.** ................ 24,756,262
Diversified Operations - 5.3%
685,419 Bombardier, Inc.** ..................... 12,092,340
3,071,438 Hays PLC** ............................. 34,980,561
783,135 Seagram Company, Ltd. .................. 38,667,291
3,710,959 Tyco International, Ltd. ............... 148,206,425
878,590 Vivendi** .............................. 66,533,998
300,480,615
Electronic Components - 3.2%
728,685 Koninklijke (Royal) Philips Electronics N.V.** 74,673,726
526,508 Koninklijke (Royal) Philips Electronics N.V.
- New York Shares** .................. 54,723,925
2,567,000 NEC Corp.** ............................ 51,900,801
181,298,452
Electronic Components - Semiconductors - 2.6%
388,745 Chartered Semiconductor (ADR)* ......... 12,901,475
1,479,270 Galileo Technology, Ltd.* .............. 33,838,301
47,900 Rohm Company, Ltd.** ................... 10,717,368
317,476 STMicroelectronics N.V.** .............. 27,862,543
8,385 STMicroelectronics N.V.
- New York Shares** .................. 761,987
1,746,719 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)* ................. 60,480,145
146,561,819
Engineering - Research and Development - 0.4%
238,319 ABB, Ltd.*,** .......................... 24,008,058
Fiber Optics - 1.6%
546,251 JDS Uniphase Corp.* .................... 91,155,636
Food - Catering - 0.5%
2,648,369 Compass Group PLC** .................... 28,548,451
Food - Retail - 0.3%
90,686 Carrefour S.A.** ....................... 16,775,532
Human Resources - 0.6%
2,496,195 Capita Group PLC** ..................... 33,300,532
Internet Content - 2.4%
280,600 Softbank Corp.** ....................... 116,423,674
602,735 StarMedia Network, Inc.* ............... 17,328,631
133,752,305
Internet Software - 0.4%
167,370 Internet Initiative Japan, Inc.* ....... $ 8,996,138
112,451 Intershop Communications A.G.*,** ...... 14,064,803
23,060,941
Life and Health Insurance - 0.8%
2,818,347 Prudential PLC** ....................... 44,142,051
Machinery - General Industrial - 3.9%
1,377,203 Mannesmann A.G.** ...................... 216,981,631
Medical - Drugs - 2.3%
1,917,000 Takeda Chemical Industries, Ltd.** ..... 110,030,902
433,000 Yamanouchi Pharmaceutical Company, Ltd.** 19,625,231
129,656,133
Metal Processors and Fabricators - 1.2%
5,838,514 Assa Abloy A.B. - Class B .............. 64,846,998
Money Center Bank - 1.9%
1,473,450 Banco Bilbao Vizcaya S.A.*,** .......... 19,791,998
2,450,441 DBS Group Holdings, Ltd.** ............. 27,687,883
4,351,000 Fuji Bank, Ltd.** ...................... 59,619,847
107,099,728
Multimedia - 1.4%
1,128,382 Corus Entertainment, Inc. - Class B*,** 17,644,154
2,064,281 Shaw Communications, Inc. - Class B** .. 62,802,757
80,446,911
Oil Companies - Integrated - 0.6%
227,601 Total Fina S.A.** ...................... 30,739,774
Petrochemicals - 0.4%
2,047,798 Reliance Industries, Inc.*,+ ........... 25,239,110
Property and Casualty Insurance - 0.2%
678,000 Tokio Marine & Fire Insurance
Company, Ltd.** ...................... 8,868,049
Publishing - Newspapers - 0.6%
1,894,000 Singapore Press Holdings, Ltd.** ....... 32,442,364
Recycling - 0.2%
357,238 Tomra Systems A.S.A .................... 13,661,811
Retail - Diversified - 0.6%
404,000 Ito-Yokado Company, Ltd.** ............. 32,285,919
Retail - Internet - 0.2%
4,009,742 QXL, Ltd.*,** .......................... 13,586,844
Retail - Restaurants - 0.2%
1,883,796 TelePizza S.A.*,** ..................... 10,058,216
Security Services - 0.9%
3,518,656 Securitas A.B. - Class B ............... 52,107,843
Telecommunication Equipment - 9.9%
373,795 Comverse Technology, Inc.* ............. 42,425,732
41,000 Matsushita Communication Industrial
Company, Ltd.** ...................... 6,883,094
1,602,895 Nokia Oyj** ............................ 183,314,687
1,197,160 Nokia Oyj (ADR)** ...................... 138,346,802
1,601,780 Nortel Networks Corp. .................. 99,210,249
1,066,082 Telefonaktiebolaget L.M. Ericsson
- Class B ............................ 44,257,122
996,972 Telefonaktiebolaget L.M. Ericsson (ADR) 42,620,553
557,058,239
See Notes to Schedules of Investments.
40 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Telecommunication Services - 10.9%
1,993,740 Amdocs, Ltd.* .......................... $ 55,450,894
303,595 BCE, Inc.** ............................ 18,287,115
5,532,266 COLT Telecom Group PLC*,** ............. 165,217,694
152,260 Dacom Corp. ............................ 18,659,622
2,059,613 Energis PLC*,** ........................ 65,471,429
1,002,055 FirstCom Corp.* ........................ 11,085,233
564,253 NTL, Inc.* ............................. 42,530,570
3,291 NTT Data Corp.** ....................... 52,032,844
4,113,420 SK Telecom Company, Ltd. (ADR)* ........ 53,731,549
1,678,231 Sonera Oyj** ........................... 50,359,479
1,080,865 United Pan-Europe Communications N.V.*,** 83,044,755
615,871,184
Telephone - Integrated - 3.2%
1,857 Nippon Telegraph & Telephone Corp.** ... 28,470,666
2,702,819 Telefonica S.A.** ...................... 44,430,079
117,316 Telefonica S.A. (ADR)** ................ 5,858,468
926,515 Telefonos de Mexico S.A. (ADR) ......... 79,217,032
1,917,679 Versatel Telecom International N.V.** .. 23,783,803
181,760,048
Therapeutics - 0.6%
805,130 QLT PhotoTherapeutics, Inc.* ........... 34,117,384
Transportation - Air Freight - 0.9%
1,923,393 TNT Post Group N.V.** .................. 48,922,290
- --------------------------------------------------------------------------------
Total Common Stock (cost $3,211,887,297) .................. 5,108,414,785
- --------------------------------------------------------------------------------
Preferred Stock - 3.7%
Automotive - Cars and Light Trucks - 1.1%
23,189 Porsche A.G.** ......................... 63,125,548
Broadcast Services and Programming - 0.9%
811,940 UnitedGlobalCom, Inc., convertible, 7.00%+ 48,208,938
Diversified Financial Services - 0.6%
172,092 Marschollek, Lautenschlaeger und
Partner A.G.** ....................... 36,265,898
Telephone - Integrated - 1.1%
796,145 Telecomunicacoes Brasileiras S.A. (ADR) 61,999,792
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $173,932,576) ................. 209,600,176
- --------------------------------------------------------------------------------
Rights - 0%
743,166 Telewest Communications PLC*,**
(cost $0)` ........................... 670,704
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 5.4%
Associates Corp. N.A.
$202,200,000 5.30%, 11/1/99 ....................... 202,200,000
CIT Holding Corp.
100,000,000 5.26%, 11/1/99 ....................... 100,000,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes
(amortized cost $302,200,000) ........................... 302,200,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 1.9%
Fannie Mae:
85,000,000 4.775%, 11/12/99 ..................... 84,877,671
25,000,000 5.54%, 2/14/00 ....................... 24,598,750
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $109,473,713) ........ 109,476,421
- --------------------------------------------------------------------------------
Total Investments (total cost $3,797,493,586) - 101.6% .... 5,730,362,086
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.6%) (90,381,990)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 5,639,980,096
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.6% $ 148,206,424
Brazil 1.5% 83,328,243
Canada 7.7% 441,474,918
Finland 6.8% 392,151,696
France 3.8% 216,576,704
Germany 5.8% 330,437,880
Hong Kong 3.4% 196,310,366
India 0.4% 25,239,110
Israel 1.2% 66,494,194
Italy 1.2% 68,976,395
Japan 19.2% 1,098,965,521
Mexico 1.9% 110,696,782
Netherlands 8.6% 492,323,047
Norway 0.2% 13,661,811
Singapore 1.0% 60,130,247
South Korea 1.3% 72,391,171
Spain 2.1% 120,379,372
Sweden 3.6% 203,832,516
Switzerland 1.0% 57,616,131
Taiwan 1.1% 60,480,145
United Kingdom 11.6% 665,597,364
United States++ 14.0% 805,092,049
- --------------------------------------------------------------------------------
Total 100.0% $ 5,730,362,086
++Includes Short-Term Securities (6.9% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 12/9/99 71,000,000 $ 116,723,999 ($ 2,183,719)
Canadian Dollar 11/18/99 14,300,000 9,725,906 112,550
Canadian Dollar 4/7/00 63,700,000 43,466,394 110,019
Euro 12/3/99 153,400,000 161,238,740 1,595,360
Euro 4/14/00 116,000,000 120,790,800 4,489,200
Euro 4/20/00 17,600,000 18,319,840 1,047,200
Hong Kong Dollar
5/7/01 1,067,000,000 135,354,560 (1,002,003)
Japanese Yen 11/18/99 9,630,000,000 92,527,559 (8,935,982)
Japanese Yen 12/3/99 5,800,000,000 55,729,256 (7,395,922)
Japanese Yen 4/14/00 6,800,000,000 65,351,877 539,596
Japanese Yen 4/20/00 800,000,000 7,688,530 102,666
Singapore Dollar 7/16/01 28,000,000 17,671,190 (351,495)
Swiss Franc 12/3/99 17,000,000 11,221,122 73,915
- --------------------------------------------------------------------------------
Total $ 855,809,773 ($11,798,615)
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 41
<PAGE>
Janus | Special Situations Fund
[PHOTO]
David Decker
portfolio manager
Janus Special Situations Fund returned 56.54% for the period ending October 31,
1999, versus a 25.66% gain by the S&P 500 Index.(1) This strong performance
earned the Fund a top-quartile ranking, placing it 52nd out of 278 capital
appreciation funds tracked by Lipper, Inc., a leading mutual fund rating
company.(2)
As Janus Special Situations Fund approaches its third year of existence, I want
to take a moment to discuss once again what a "special situation" is and what it
is we're trying to achieve.
I'm often asked whether Janus Special Situations is a growth fund or a value
fund. My answer is, "Both." This is because I believe the Fund should not be
confined to a limiting category. The goal of this fund is to uncover companies
whose valuations, from our perspective, are not being properly recognized by
Wall Street. In so doing, we hope to provide a portfolio of stocks that has an
attractive risk/reward relationship.
While this does in fact lead us to stocks that have been beaten up and might
rightly be considered "value," it also leads us to stocks with price-to-earnings
(P/E) valuations that might suggest "growth." The reason for this is that
whether a stock is considered growth or value is typically determined using
price to trailing earnings (P/E) as the primary metric for classification.
However, while P/E is a good tool for approximating value, it is not the only
tool, and there are often opportunities that can be missed if P/E alone is used
to determine what is cheap and what is not.
Take, for example, Maxim Integrated Products and Linear Technology, two leaders
in analog semiconductor manufacturing. When considering these stocks for the
Fund, looking only at the P/E multiples could have led us to the conclusion that
neither was undervalued. But analog semiconductor manufacturing is a very
specialized and unique business, one that generates 70% gross margins, huge cash
flows and enormous returns on invested capital (ROIC). The economics of these
two companies' businesses are extraordinary and cannot be captured using P/E
alone as a tool for valuation. However, digging deeper into each company and
focusing on free cash flow and ROIC helped us conclude both were in fact
dramatically undervalued.
Essentially, we're looking for companies that may actually be undervalued, even
though it isn't entirely obvious. Yet, in order to uncover these kinds of
companies, we need to look at valuation from many different angles and identify
those businesses we believe are undergoing change or have financial
characteristics that are not being recognized by Wall Street.
Looking at some of the individual stocks in the Fund, there were some excellent
performers such as Apple (up 116%), Station Casinos (up 118%), Park Place
Entertainment (up 32%), and China Telecom Hong Kong (up 38%). Unfortunately,
there were also a few stocks that dramatically underperformed and had a negative
impact on our overall returns. I'd like to talk about a couple of them.
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 98.9% 98.6%
Foreign 17.9% 4.2%
Top 10 Equities (% of Assets) 54.4% 61.2%
Number of Stocks 41 36
Cash, Cash Equivalents
& Fixed-Income Securities 1.1% 1.4%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Multimedia 14.9% 13.6%
Cable Television 13.1% 21.9%
Computers - Micro 8.5% 3.6%
Casino Hotels 7.7% --
Cellular Telecommunications 6.6% --
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Apple Computer, Inc. 8.5% 3.6%
Time Warner, Inc. 7.4% 9.0%
Viacom, Inc. - Class B 7.4% --
Comcast Corp. - Special Class A 6.1% 6.1%
China Telecom, Ltd. 5.2% --
SBS Broadcasting S.A 4.1% 3.8%
Bally Total Fitness Holding Corp. 4.1% 4.6%
Cox Communications, Inc. - Class A 4.0% --
Park Place Entertainment Corp. 4.0% --
Staples, Inc. 3.6% --
(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a capital appreciation fund 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. Investing in special
situation companies may entail greater risks.
42 Janus Equity Funds / October 31, 1999
<PAGE>
First, Federal-Mogul, which has been an important position in the Fund since its
inception, declined during the period. The company's recent acquisition of
Cooper Automotive did not go as smoothly as anticipated, which forced
Federal-Mogul to reduce its earnings and cash flow projections. Nonetheless,
when we value the company, we believe it is worth substantially more than what
it's currently selling for. While it may take some time for the company to
regain investor confidence, we certainly won't be selling our position at a
fraction of what it's worth. Another poor performer was Tyco International,
which lost nearly a quarter of its value in October because of a negative report
that questioned the accounting practices of the firm. We have followed Tyco at
Janus for about six years and are highly confident the assumptions made in the
article were misleading.
The dramatic volatility in these and many other stocks over the last few months
highlights a market driven more by psychology and momentum than by valuation.
Changing market psychology can and does provide unique opportunities for the
Fund. Unfortunately, there are those occasions when we already own a particular
company, and it works to our disadvantage. While we obviously don't always
succeed in limiting the downside of stocks in the Fund, rest assured that an eye
toward downside risk is a primary factor in our stock selection process. I am
very enthusiastic about the future of the companies that currently make up your
Fund, and I thank you for your continued support.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999. The upper right quadrant reflects the ending value of
the hypothetical investment in Janus Special Situations Fund ($23,915) as
compared to the S&P 500 Index ($19,212).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 56.54%
Since 12/31/96*, 36.04%
Janus Special Situations Fund - $23,915
S&P 500 Index - $19,212
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 98.9%
Automotive - Truck Parts and Equipment - 4.3%
2,137,235 Exide Corp.# ........................... $ 18,967,961
1,288,020 Federal-Mogul Corp. .................... 32,361,502
51,329,463
Broadcast Services and Programming - 3.4%
1,038,110 AT&T Corp./Liberty Media Group - Class A* 41,199,991
Cable Television - 13.1%
1,747,720 Comcast Corp. - Special Class A ........ 73,622,705
1,050,248 Cox Communications, Inc. - Class A* .... 47,720,643
1,733,780 Rogers Communications, Inc.* ........... 34,892,322
156,235,670
Casino Hotels - 7.5%
3,617,200 Park Place Entertainment Corp.* ........ 47,475,750
1,750,000 Station Casinos, Inc.* ................. 42,328,125
89,803,875
Cellular Telecommunications - 6.6%
2,336,000 China Telecom, Ltd. *,** ............... 7,997,614
808,620 China Telecom, Ltd. (ADR) *,** ......... 54,581,850
70,000 VoiceStream Wireless Corp.* ............ 6,912,500
255,000 WinStar Communications, Inc.* .......... 9,897,188
79,389,152
Chemicals - Specialty - 2.4%
1,113,010 Cytec Industries, Inc.* ................ $ 28,729,571
Circuits - 2.2%
100,000 Linear Technology Corp. ................ 6,993,750
240,000 Maxim Integrated Products, Inc.* ....... 18,945,000
25,938,750
Commercial Services - 1.1%
441,965 Iron Mountain, Inc.* ................... 13,369,441
Computers - Micro - 8.5%
1,264,405 Apple Computer, Inc.* .................. 101,310,451
Containers - Paper and Plastic - 0.2%
244,400 Ivex Packaging Corp.* .................. 2,306,525
Diversified Operations - 2.7%
822,566 Tyco International, Ltd. ............... 32,851,230
Internet Software - 1.8%
500,000 EarthLink Network, Inc.* ............... 21,031,250
Machinery - Construction and Mining - 0.3%
128,000 Terex Corp.* ........................... 3,384,000
Money Center Banks - 0.9%
980,000 DBS Group Holdings, Ltd. ............... 11,073,160
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 43
<PAGE>
Janus | Special Situations Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Multimedia - 14.9%
55,000 Corus Entertainment, Inc. - Class B* ... $ 860,018
1,274,730 Time Warner, Inc. ...................... 88,832,747
1,974,770 Viacom, Inc. - Class B* ................ 88,370,957
178,063,722
Office Automation and Equipment - 0.7%
187,210 Pitney Bowes, Inc. ..................... 8,529,756
Oil Companies - Exploration and Production - 0.5%
1,653,075 Magnum Hunter Resources, Inc.*,# ....... 5,682,445
Optical Supplies - 2.9%
322,980 Allergan, Inc. ......................... 34,679,978
Petrochemicals - 1.9%
1,848,031 Reliance Industries, Inc.*,+ ........... 22,776,982
Pipelines - 3.0%
904,080 Enron Corp. ............................ 36,106,695
Printing - Commercial - 1.3%
358,800 Valassis Communications, Inc.* ......... 15,428,400
Publishing - Periodicals - 2.0%
950,000 Playboy Enterprises, Inc. - Class B*,# . 24,343,750
Real Estate Investment Trusts - 0%
1,666 Property Capital Trust, Inc. ........... 937
Recreational Centers - 4.1%
2,022,600 Bally Total Fitness Holding Corp.*,# ... 48,668,813
Retail - Office Supplies - 3.6%
1,950,000 Staples, Inc.* ......................... 43,265,625
Retail - Restaurants - 2.0%
1,000,000 Jack in the Box, Inc.* ................. 24,062,500
Telecommunication Services - 1.1%
295,280 McLeodUSA, Inc. - Class A* ............. 13,176,870
Television - 5.9%
1,347,500 SBS Broadcasting S.A.*,# ............... 49,352,187
250,000 Univision Communications, Inc. - Class A* 21,265,625
70,617,812
- --------------------------------------------------------------------------------
Total Common Stock (cost $904,251,327) .................... 1,183,356,814
- --------------------------------------------------------------------------------
Corporate Bond - 0.2%
Casino Hotels - 0.2%
$ 3,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04
(cost $3,153,641) .................... 2,362,500
- --------------------------------------------------------------------------------
Preferred Stock - 0.9%
Electric - Integrated - 0.9%
97,000 Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) (cost $7,474,820) 11,130,750
- --------------------------------------------------------------------------------
Warrants - 0%
Oil Companies - Exploration and Production - 0%
551,025 Magnum Hunter Resources, Inc.
- expires 7/1/02 (cost $0)* .......... 172,195
- --------------------------------------------------------------------------------
Commercial Paper - 0.3%
Household Finance Corp.
$ 3,600,000 5.30%, 11/1/99
(amortized cost $3,600,000) .......... 3,600,000
- --------------------------------------------------------------------------------
Total Investments (total cost $918,479,788) - 100.3% ...... 1,200,622,259
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.3%) (3,643,762)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 1,196,978,497
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.7% $ 32,851,230
Canada 3.0% 35,752,340
Hong Kong 5.2% 62,579,464
India 1.9% 22,776,982
Luxembourg 4.1% 49,352,187
Singapore 0.9% 11,073,160
United States++ 82.2% 986,236,896
- --------------------------------------------------------------------------------
Total 100.0% $ 1,200,622,259
++Includes Short-Term Securities (81.8% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Hong Kong Dollar 5/7/01 355,500,000 $ 45,097,044 ($ 401,353)
- --------------------------------------------------------------------------------
Total $ 45,097,044 ($ 401,353)
See Notes to Schedules of Investments.
44 Janus Equity Funds / October 31, 1999
<PAGE>
Janus | Twenty Fund (closed to new investors)
[PHOTO]
Scott Schoelzel
portfolio manager
First and foremost, I would like to thank each of you for your continued support
and confidence. Janus Twenty Fund had another strong fiscal year, gaining 63.51%
versus a 25.66% return posted by the S&P 500 Index.(1) These results placed us
36th out of 278 capital appreciation funds tracked by Lipper, Inc., a leading
mutual fund rating company.(2)
In last year's letter, I suggested that investors begin to reset their
expectations with respect to the types of returns they should anticipate from
the stock market. This is where we will begin this year's letter. Annual gains
of 50%, 60% or 70% are complete aberrations. While no one is more enthusiastic
than I am about prospects for the "new economy" and the profound effects it will
have on the way we live, learn and work, let's get real. The returns we've
enjoyed these past few years just aren't sustainable. To put things in
perspective, the historical annual average return for the market is about 11%.
But an annual return of 15% compounded will double your investment in just five
years. Naturally, we'll work hard to do better, but I think it's important to
realistically set, or reset, your expectations going forward.
As we embarked on the 1999 chapter of our investment journey, I was a little
wary. Coming off a 73% calendar year return in 1998, the last thing I wanted to
do was go through the classic "first-to-worst" cycle that vexes so many
portfolio managers.
My anxiety was well-founded early on. In the second quarter, the portfolio came
under intense pressure as investors began to rethink some of the fundamental
assumptions supporting many of the themes in the Fund. I must admit that my own
confidence wavered some during this period, and, in retrospect, I made some
decisions that now seem foolish. As usual, it was our analysts who distinguished
themselves during this tumultuous period and convinced me that the sky was
indeed not falling and to summon my courage to hang in there. I trimmed our
position in America Online only to see it go lower and then meaningfully higher
later in the year. While our analysts had a firm grasp of the fundamentals, I
now believe I became too focused on some of the shorter-term issues. However,
despite my attempts to separate shareholders from their money in AOL, our
largest holding, we did have the good sense to hold on to the bulk of the
position, and in the aggregate it has performed marvelously.
I also lightened some of our holdings in the pharmaceutical area as the
pipelines at Eli Lilly and Warner-Lambert began to show signs of maturing. While
the longer-term prospects still look promising, I felt we could do better
investing elsewhere.
During the year, we initiated new positions in Sprint PCS and Sun Microsystems
that have proven to be wonderful investments. With Microsoft being hampered by
the weight of the antitrust trial and the slower-than-expected release of its
new server-based operating system, Windows 2000, Sun has seized the opportunity
to establish itself as the server and software vendor of choice among "dot.com"
and
(continued on next page)
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 83.4% 81.1%
Foreign 14.7% 7.0%
Top 20 Equities (% of Assets) 72.7% 79.1%
Top 10 Equities (% of Assets) 52.0% 59.6%
Number of Stocks 37 23
Cash & Fixed-Income Securities 16.6% 18.9%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Computers - Micro 9.7% 11.4%
Telecommunication Equipment 8.7% 7.0%
Internet Software 8.7% 7.4%
Cellular Telecommunications 7.4% --
Networking Products 6.2% 4.8%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
America Online, Inc. 8.0% 7.4%
Nokia Oyj (ADR) 7.7% 5.1%
Cisco Systems, Inc. 6.2% 4.8%
Sun Microsystems, Inc. 6.2% --
Microsoft Corp. 5.5% 7.3%
Time Warner, Inc. 4.3% 5.8%
General Electric Co. 4.0% 3.9%
Dell Computer Corp. 3.5% 10.7%
Sprint Corp./PCS Group 3.5% --
EMC Corp. 3.1% 1.5%
- --------------------------------------------------------------------------------
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a capital appreciation fund 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 October 31,
1999, Janus Twenty Fund ranked 2/96 for the 5-year period, and 1/55 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.
Janus Equity Funds / October 31, 1999 45
<PAGE>
telecom companies. Meanwhile, Sprint PCS, with its all-digital wireless network,
is keenly poised to benefit from the explosion of wireless data and Internet
services. Also in the wireless area, we added to our already sizable position in
Nokia, the world's leading supplier of cellular phones, and remain very
optimistic on our outlook for the entire wireless industry.
Prospects for the financial services industry also excite us, and we expect our
exposure in this area to increase in the months ahead. We're particularly
enthusiastic about a recent compromise on legislation that would overhaul the
Glass-Steagall Act and set the stage for a number of business combinations in
the financial services arena. Our positions in financial giants AIG and American
Express added meaningfully to the performance of Janus Twenty Fund this year,
and we expect even more from this group in 2000.
In closing, I would again like to thank you for your continued confidence in
Janus Twenty Fund. The road ahead is filled with tremendous opportunity, and,
together with our outstanding analytical staff, I'm confident that we will
navigate our investment journey successfully.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999.
The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Twenty Fund ($175,085) as compared to the S&P 500 Index
($113,964).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 63.51%
Five Year, 36.93%
Ten Year, 24.33%
Since 4/30/85*, 21.82%
Janus Twenty Fund - $175,085
S&P 500 Index - $113,964
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 83.4%
Audio and Video Products - 1.5%
600,000 Gemstar International Group, Ltd.* ..... $ 52,125,000
2,411,500 Sony Corp. ............................. 375,727,987
427,852,987
Broadcast Services and Programming - 1.1%
2,700,000 AT&T Corp./Liberty Media Group - Class A* 107,156,250
2,778,330 Clear Channel Communications, Inc.* .... 223,308,274
330,464,524
Cellular Telecommunications - 7.4%
3,529,110 Nextel Communications, Inc. - Class A* . 304,165,168
12,023,390 Sprint Corp./PCS Group* ................ 997,189,908
20,768,095 Vodafone AirTouch PLC .................. 96,441,779
15,468,730 Vodafone AirTouch PLC (ADR) ............ 741,532,244
2,139,329,099
Computer Software - 5.5%
17,136,970 Microsoft Corp.* ....................... 1,586,240,786
Computers - Memory Devices - 3.1%
12,323,660 EMC Corp.* ............................. 899,627,180
Computers - Micro - 9.7%
25,465,952 Dell Computer Corp.* ................... 1,021,821,324
16,972,515 Sun Microsystems, Inc.* ................ 1,795,904,243
2,817,725,567
Distribution and Wholesale - 0.8%
2,762,385 Costco Wholesale Corp.* ................ 221,854,045
Diversified Operations - 4.0%
8,441,960 General Electric Co. ................... 1,144,413,203
Electronic Components - 1.9%
7,458,780 Solectron Corp.* ....................... $ 561,273,195
Electronic Components - Semiconductors - 0.8%
2,447,570 Texas Instruments, Inc. ................ 219,669,408
Finance - Credit Card - 2.0%
3,682,000 American Express Co. ................... 567,028,000
Finance - Mortgage Loan Banker - 1.1%
4,400,445 Fannie Mae ............................. 311,331,484
Internet Content - 1.5%
776,200 Critical Path, Inc.* ................... 35,511,150
2,166,920 Yahoo!, Inc.* .......................... 388,014,113
423,525,263
Internet Software - 8.7%
365,975 Akamai Technologies, Inc.* ............. 53,134,995
17,836,446 America Online, Inc.* .................. 2,313,164,091
153,400 Exodus Communications, Inc.* ........... 13,192,400
1,304,080 Internap Network Services Corp.* ....... 120,464,390
2,499,955,876
Medical - Biomedical and Genetic - 1.0%
2,213,700 Amgen, Inc.* ........................... 176,542,575
733,135 Genentech, Inc.* ....................... 106,854,426
283,397,001
Medical - Drugs - 2.3%
16,788,045 Pfizer, Inc. ........................... 663,127,777
Multi-Line Insurance - 3.1%
8,721,345 American International Group, Inc. ..... 897,753,451
Multimedia - 4.3%
17,768,678 Time Warner, Inc. ...................... 1,238,254,748
See Notes to Schedules of Investments
46 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Networking Products - 6.2%
24,306,160 Cisco Systems, Inc.* ................... $ 1,798,655,840
Retail - Building Products - 2.4%
8,980,430 Home Depot, Inc. ....................... 678,022,465
Retail - Discount - 1.5%
7,635,140 Wal-Mart Stores, Inc. .................. 432,816,999
Retail - Internet - 1.6%
6,453,440 Amazon.com, Inc.* ...................... 455,774,200
Telecommunication Equipment - 8.7%
19,257,620 Nokia Oyj (ADR) ........................ 2,225,458,711
4,396,810 Nortel Networks Corp. .................. 272,327,419
2,497,786,130
Telecommunication Services - 1.4%
5,788,195 Level 3 Communications, Inc.* .......... 395,767,833
Telephone - Integrated - 1.8%
6,150,630 Telefonos de Mexico S.A. (ADR) ......... 525,878,865
- --------------------------------------------------------------------------------
Total Common Stock (cost $13,285,804,001) ................. 24,017,525,926
- --------------------------------------------------------------------------------
Corporate Bonds - 1.5%
Cable Television - 0.7%
$191,000,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09 ..... 180,495,000
Food - Retail - 0.2%
Fred Meyer, Inc.:
40,000,000 7.375%, company guaranteed notes
due 3/1/05 ........................... 39,550,000
25,000,000 7.45%, company guaranteed notes
due 3/1/08 ........................... 24,687,500
64,237,500
Telecommunication Services - 0.6%
190,000,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08 ............. 175,750,000
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $444,647,793) ................. 420,482,500
- --------------------------------------------------------------------------------
Money Market - 0.9%
266,200,000 Janus Government Money Market Fund
5.35% (cost $266,200,000) ............ 266,200,000
- --------------------------------------------------------------------------------
Repurchase Agreements - 1.6%
250,000,000 Deutsche Bank Securities, Inc., 5.425%
dated 10/29/99, maturing 11/1/99, to be
repurchased at $250,113,021 collateralized
by $62,423,077 in Fannie Mae, 5.75%-
7.00%, 8/25/07-1/25/29; $271,042,303
in Freddie Mac, 0%-6.7312%, 3/15/14-
4/1/29; with respective values of
$49,484,887 and $205,515,113 ......... 250,000,000
200,000,000 Morgan Stanley & Co., Inc., 5.30%
dated 10/29/99, maturing 11/1/99, to be
repurchased at $200,088,333 collateralized
by $47,874,286 in Fannie Mae, 5.06%-
6.50%, 10/18/00-10/25/28; $204,187,782
in Freddie Mac, 0%-569.4117%, 11/17/99-
10/15/24; with respective values of
$45,403,303 and $158,600,663 ......... 200,000,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (cost $450,000,000) ........... 450,000,000
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 0.9%
JP Morgan Securities
$ 50,000,000 4.82%, 12/10/99 ...................... $ 49,738,917
UBS Financial, Inc.
100,000,000 4.90%, 12/13/99 ...................... 99,428,333
Wells Fargo & Co.
100,000,000 5.95%, 3/3/00 ........................ 97,931,500
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (cost $247,134,333) ...... 247,098,750
- --------------------------------------------------------------------------------
Time Deposits - 4.5%
PNC Bank
103,100,000 5.22%, 11/1/99 ....................... 103,100,000
SouthTrust Bank EDT
700,000,000 5.19%, 11/1/99 ....................... 700,000,000
Sun Trust Bank EDT
500,000,000 5.22%, 11/1/99 ....................... 500,000,000
- --------------------------------------------------------------------------------
Total Time Deposits (cost $1,303,100,000) ................. 1,303,100,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 7.4%
Fannie Mae:
150,000,000 5.05%, 11/2/99 ....................... 149,978,958
100,000,000 4.68%, 11/4/99 ....................... 99,961,000
100,000,000 5.05%, 11/5/99 ....................... 99,943,889
100,000,000 4.775%, 11/12/99 ..................... 99,855,778
100,000,000 4.96%, 11/15/99 ...................... 99,807,111
75,000,000 4.79%, 11/19/99 ...................... 74,813,250
100,000,000 4.80%, 11/26/99 ...................... 99,640,278
100,000,000 5.21%, 12/2/99 ....................... 99,551,361
100,000,000 5.00%, 12/10/99 ...................... 99,458,333
100,000,000 5.11%, 12/13/99 ...................... 99,400,000
100,000,000 4.65%, 12/21/99 ...................... 99,354,167
100,000,000 5.52%, 1/26/00 ....................... 98,693,000
75,000,000 4.69%, 2/7/00 ........................ 73,876,500
100,000,000 4.67%, 4/5/00 ........................ 97,616,000
75,000,000 4.75%, 4/10/00 ....................... 73,155,000
75,000,000 5.23%, 5/11/00 ....................... 72,783,750
Federal Home Loan Bank Systems:
100,000,000 5.19%, 11/19/99 ...................... 99,740,500
100,000,000 5.54%, 1/18/00 ....................... 98,819,000
100,000,000 4.70%, 1/21/00 ....................... 98,773,000
50,000,000 4.71%, 4/17/00 ....................... 48,714,000
Freddie Mac:
50,000,000 4.76%, 11/19/99 ...................... 49,881,000
100,000,000 4.89%, 12/10/99 ...................... 99,470,250
100,000,000 5.07%, 12/17/99 ...................... 99,349,611
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $2,133,859,049) ...... 2,132,635,736
- --------------------------------------------------------------------------------
Total Investments (total cost $18,130,745,176) - 100.2% 28,837,042,912
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.2%) (43,930,768)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 28,793,112,144
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 1.0% $ 272,327,419
Finland 7.7% 2,225,458,711
Japan 1.3% 375,727,987
Mexico 1.8% 525,878,865
United Kingdom 2.9% 837,974,023
United States++ 85.3% 24,599,675,907
- --------------------------------------------------------------------------------
Total 100.0% $ 28,837,042,912
++Includes Short-Term Securities (70.1% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 47
<PAGE>
Janus | Venture Fund (closed to new investors)
[PHOTO]
James Craig
portfolio manager
[PHOTO]
William Bales
portfolio manager
[PHOTO]
Jonathan Coleman
portfolio manager
For the 12 months ended October 31, 1999, Janus Venture Fund gained 94.42%,
substantially outpacing its benchmark, the Russell 2000 Index, which returned
14.87% for the same period.(1) These results earned the Fund a top-decile
ranking, placing it 15th out of 735 small company growth funds tracked by
Lipper, Inc., a leading mutual fund rating company.(2)
We're pleased to deliver such exceptional results for our shareholders given the
volatile environment small- and mid-cap markets have seen this past year. This
challenging environment favored our company-focused stock-picking approach, and
our intensive research enabled us to pull ahead by uncovering young, high-growth
businesses we believe will someday be dominant global franchises.
Among the many things we look for when researching companies are defining
products and services capable of propelling those businesses to the top spots
within their respective markets. An example is software developer Phone.com, one
of our biggest winners during the period. Phone.com's software connects wireless
phone subscribers to the Internet, offering them mobile access to applications
as diverse as e-mail or directions to the nearest McDonald's. Cell phone
manufacturers have embraced Phone.com's solution; as a result, Phone.com is
designed into over 90% of the Internet-enabled handsets that will reach the
market over the next year. As demand for mobile Internet access increases,
Phone.com should benefit.
Other rapidly growing names we've identified in the Internet area include
Commerce One, Exodus Communications, Globix and Verio. In our opinion, one of
the most exciting opportunities created by the advent of the Internet is
business-to-business e-commerce. Commerce One's software enables businesses to
create a global marketplace for the procurement of goods. The software can
dramatically reduce purchasing costs, creating margin expansion opportunities
for customers. This innovative service has resulted in robust fundamental growth
for Commerce One and a stellar runup in its stock. We also saw a surge in the
number of businesses moving to establish a Web presence during the period.
Exodus and Globix continue to win the business of large companies that want
premium Web hosting services. For small and mid-size businesses' hosting needs,
Verio has emerged as the leader.
We were also pleased with the performance of our radio companies, concentrating
on those with the opportunity to consolidate niche markets. While most of the
mergers in this industry have taken place in the top 50 U.S. markets, Citadel
Communications has purchased commercial stations in small to midsize markets
with formats that include country, rock and oldies. By concentrating on these
smaller markets, Citadel faces less aggressive competition for acquisitions.
Meanwhile, Radio One Inc. is capitalizing on a potentially large but currently
fragmented niche that focuses on formats catering to African-American listeners.
The consolidation of this niche within the top 30 U.S. markets has contributed
to Radio One's rapid growth.
Among our healthcare holdings, Enzon was a huge success. This stock appreciated
on news of a promising new treatment for Hepatitis C, a growing health crisis
garnering an increasing amount of public attention. With Enzon's PEG-Intron A,
patients will be able to reduce their dosage to one injection a week versus the
current therapy, which requires three
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 99.7% 90.0%
Foreign 6.3% 2.7%
European 1.4% 2.7%
Top 10 Equities (% of Assets) 26.1% 26.0%
Number of Stocks 132 94
Cash & Cash Equivalents 0.3% 10.0%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Internet Software 21.7% 0.4%
Electronic Components
- Semiconductors 8.7% 1.6%
Radio 7.6% 3.4%
Medical - Biomedical
and Genetic 4.6% 0.8%
Internet Content 4.5% 0.2%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
SDL, Inc. 4.0% 0.2%
Enzon, Inc. 3.1% --
Commerce One, Inc. 2.7% --
QLT PhotoTherapeutics, Inc. 2.5% --
Phone.com, Inc. 2.5% --
Verio, Inc. 2.3% --
RF Micro Devices, Inc. 2.3% --
Exodus Communications, Inc. 2.3% --
Verticalnet, Inc. 2.3% --
Liberate Technologies, Inc. 2.1% --
- --------------------------------------------------------------------------------
(1) Both returns include reinvested dividends.
(2) Lipper, Inc. defines a small-cap fund as "one that by prospectus or
portfolio practice invests primarily in companies with market
capitalizations less than $1 billion at the time of purchase." As of
October 31, 1999, Janus Venture Fund ranked 11/262 for the 5-year period
and 5/72 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.
48 Janus Equity Funds / October 31, 1999
<PAGE>
injections weekly. Enzon will file for approval from the FDA before year-end,
and we expect the treatment to be on the market in the second half of 2000.
Because the drug delivers improved efficacy and better quality of life to
patients, we expect Enzon to capture a significant share of the existing $1
billion alpha interferon market.
Despite the Fund's strong performance, we did experience a few disappointments
during the period, including software developer Engineering Animation. We sold
our position at a loss after learning through our conversations with management
that sales were not meeting our expectations. We also sold Sipex, an integrated
semiconductor manufacturer, which was hurt by the delay of a new product launch.
As you're probably aware, Jim Craig has assumed a new role as director of
research at Janus. While he'll continue to be involved with the Fund, Jim has
decided to relinquish his management responsibilities so he can share his
expertise across the entire fund family. Meanwhile, little will change with
regard to the day-to-day operation of Janus Venture Fund. In the last 12 months
we've compiled a team of four analysts working full time on small-cap research,
allowing us to sift through more ideas in order to find the undiscovered
small-cap gems. As always, we remain committed to finding individual companies
with great growth opportunities capable of delivering the performance our
shareholders deserve.
Thank you for your continued investment in Janus Venture Fund.
Performance Overview
[GRAPHIC OMITTED]
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
October 31, 1999. The upper and lower right quadrants reflect the ending value
of the hypothetical investment in Janus Venture Fund ($132,594) as compared to
the Russell 2000 Index ($48,644).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 94.42%
Five Year, 23.75%
Ten Year, 18.78%
Since 4/30/85*, 19.51%
Janus Venture Fund - $132,594
Russell 2000 Index - $48,644
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 99.7%
Advertising Sales - 2.0%
699,380 Lamar Advertising Co.* ................. $ 37,766,520
Advertising Services - 1.1%
339,290 TMP Worldwide, Inc.* ................... 21,184,419
Applications Software - 1.8%
358,860 Intertrust Technologies Corp.* ......... 19,557,870
70,630 Quest Software, Inc.* .................. 5,208,962
157,520 SilverStream Software, Inc.* ........... 8,210,730
32,977,562
Broadcast Services and Progamming - 1.4%
801,520 ACTV, Inc.* ............................ 12,674,035
256,455 TiVo, Inc.* ............................ 10,995,508
115,495 World Wrestling Federation
Entertainment, Inc.* ................. 2,786,317
26,455,860
Cable Television - 1.1%
652,081 Cogeco Cable, Inc.** ................... 9,642,234
760,044 Moffat Communications, Ltd.** .......... 11,109,488
20,751,722
Cellular Telecommunications - 0.7%
333,175 WinStar Communications, Inc.* .......... 12,931,355
Collectibles - 0.4%
328,270 Action Performance Companies, Inc.* .... $ 6,678,243
Commercial Banks - 0.9%
432,400 Investors Financial Services Corp.* .... 15,998,800
Commercial Services - 0.4%
297,900 Central Parking Corp. .................. 7,987,444
Communications Software - 1.9%
483,760 Razorfish, Inc.* ....................... 35,677,300
Computer Graphics - 0.3%
257,460 NVIDIA Corp.* .......................... 5,696,302
Computer Services - 1.1%
64,935 Breakway Solutions, Inc.* .............. 3,453,730
391,900 CIBER, Inc.* ........................... 6,392,869
163,260 ECsoft Group PLC (ADR)* ................ 2,204,010
274,220 Tanning Technology Corp.* .............. 9,631,977
21,682,586
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 49
<PAGE>
Janus | Venture Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computer Software - 4.5%
105,745 Active Software, Inc.* ................. $ 3,826,647
99,185 Bluestone Software, Inc.* .............. 3,657,447
375,445 Brio Technology, Inc.* ................. 9,104,541
215,835 Broadbase Software, Inc.* .............. 9,820,492
189,300 BSQUARE Corp.* ......................... 7,489,181
66,220 Cysive, Inc.* .......................... 3,811,789
68,000 E.piphany, Inc.* ....................... 5,848,000
328,950 Informatica Corp.* ..................... 23,766,637
148,355 Jacada, Ltd.* .......................... 2,151,147
81,245 Kana Communications, Inc.* ............. 6,834,736
70,375 NetIQ Corp.* ........................... 3,215,258
68,035 Vitria Technology, Inc.* ............... 4,486,058
84,011,933
Computers - Integrated Systems - 0%
27,695 Vixel Corp.* ........................... 886,240
Consulting Services - 0.4%
261,990 Professional Detailing, Inc.* .......... 6,549,750
Distribution and Wholesale - 0.3%
635,885 Brightpoint, Inc.* ..................... 4,987,723
Electric - Integrated - 0.5%
535,560 Avista Corp. ........................... 9,640,080
Electronic Components - Semiconductors - 8.7%
617,500 Alpha Industries, Inc.* ................ 34,116,875
675,000 ATMI, Inc.* ............................ 18,182,813
617,980 Galileo Technology, Ltd.* .............. 14,136,293
65,875 Kopin Corp.* ........................... 2,766,750
197,810 QuickLogic Corp.* ...................... 3,634,759
600,000 SDL, Inc.* ............................. 73,987,500
100,405 Silicon Image, Inc.* ................... 4,436,646
142,555 TriQuint Semiconductor, Inc.* .......... 11,404,400
162,666,036
Electronic Safety Devices - 1.1%
642,774 Pittway Corp. - Class A ................ 21,211,542
Finance - Mortgage Loan Broker - 0.2%
310,895 Doral Financial Corp. .................. 3,983,342
Food - Retail - 0.7%
384,090 Whole Foods Market, Inc.* .............. 13,059,060
Instruments - Controls - 0.6%
379,325 Mettler-Toledo International, Inc.* .... 11,308,627
Instruments - Scientific - 1.0%
406,100 Dionex Corp.* .......................... 18,046,069
Insurance Brokers - 0.5%
151,550 E. W. Blanch Holdings, Inc. ............ 9,812,863
Internet Content - 4.5%
173,195 Critical Path, Inc.* ................... 7,923,671
183,210 DoubleClick, Inc.* ..................... 25,649,400
19,324 Internet Capital Group, Inc.* .......... 2,248,830
250,110 internet.com L.L.C.* ................... 5,002,200
126,175 Launch Media, Inc.* .................... 1,372,153
752,870 VerticalNet, Inc.* ..................... 42,160,720
84,356,974
Internet Software - 21.7%
461,110 AppNet, Inc.* .......................... $ 20,087,104
296,795 Commerce One, Inc.* .................... 50,826,144
890,890 Concentric Network Corp.* .............. 22,829,056
495,670 Exodus Communications, Inc.* ........... 42,627,620
91,540 F5 Networks, Inc.* ..................... 12,701,175
774,685 Globix Corp.*,# ........................ 27,888,660
140,760 Interspeed, Inc.* ...................... 1,557,158
133,300 Interwoven, Inc.* ...................... 10,447,388
68,870 Keynote Systems, Inc.* ................. 3,124,976
586,735 Liberate Technologies, Inc.* ........... 39,971,322
17,530 Liquid Audio, Inc.* .................... 617,933
329,385 NaviSite, Inc.* ........................ 15,481,095
277,440 Netcentives, Inc.* ..................... 4,647,120
229,255 pcOrder.com, Inc.*,# ................... 11,348,122
222,815 Phone.com, Inc.* ....................... 45,788,482
211,510 Portal Software, Inc.* ................. 13,827,466
150,875 Scient Corp.* .......................... 18,689,641
257,895 Software.com, Inc.* .................... 17,359,557
1,173,850 Verio, Inc.* ........................... 43,799,278
403,619,297
Life and Health Insurance - 0.5%
348,435 StanCorp Financial Group, Inc. ......... 8,841,538
Medical - Biomedical and Genetic - 4.6%
1,952,500 Enzon, Inc.*,# ......................... 57,232,656
520,220 Invitrogen Corp.* ...................... 13,005,500
101,515 PE Corp./Celera Genomics Group* ........ 3,971,774
200,000 QIAGEN N.V.* ........................... 10,675,000
84,884,930
Medical - Drugs - 2.2%
454,705 ChiRex, Inc.* .......................... 12,845,416
163,500 MedImmune, Inc.* ....................... 18,312,000
310,415 Priority Healthcare Corp.* ............. 6,227,701
131,755 ViroPharma, Inc.* ...................... 2,750,386
40,135,503
Medical - Outpatient and Home Medical Care - 0.8%
901,270 Apria Healthcare Group, Inc.* .......... 14,251,332
Medical Information Systems - 0.2%
278,930 InfoCure Corp.* ........................ 4,393,148
Motorcycle and Motor Scooter Manufacturing - 0.1%
794,517 Ducati Motor Holding S.p.A.* ........... 2,260,554
Multimedia - 0.3%
82,570 Ackerley Group, Inc.* .................. 1,377,887
105,665 Martha Stewart Living Omnimedia, Inc.
- Class A* ........................... 3,896,397
5,274,284
Music/Clubs - 1.9%
2,604,200 Corporacion Interamericana de
Entretenimiento S.A. - Series B* ..... 7,029,231
825,000 SFX Entertainment, Inc.* ............... 28,823,438
35,852,669
Networking Products - 2.3%
112,320 Emulex Corp.* .......................... 17,514,900
67,490 Foundry Networks, Inc.* ................ 12,789,355
45,815 JNI Corp.* ............................. 2,448,239
173,445 Marimba, Inc.* ......................... 4,943,183
145,660 Paradyne Networks, Inc.* ............... 4,424,423
42,120,100
See Notes to Schedules of Investments.
50 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Pharmacy Services - 0.7%
381,810 Accredo Health, Inc.* .................. $ 12,599,730
Printing - Commercial - 1.6%
703,837 Valassis Communications, Inc.* ......... 30,264,991
Professional Sports - 0.6%
503,535 Championship Auto Racing Teams, Inc.* .. 11,549,834
Publishing - Periodicals - 1.0%
715,475 Playboy Enterprises, Inc. - Class B* ... 18,334,047
Radio - 7.6%
709,955 Citadel Communications Corp.* .......... 34,299,701
286,335 Cox Radio, Inc. - Class A* ............. 20,043,450
565,810 Cumulus Media, Inc. - Class A* ......... 20,298,434
286,910 Entercom Communications Corp.* ......... 14,291,704
307,475 Radio One, Inc.* ....................... 15,335,316
461,995 Radio Unica Corp.* ..................... 13,224,607
912,720 Spanish Broadcasting System, Inc. - Class A* 24,301,170
141,794,382
Recreational Centers - 0.3%
250,000 Bally Total Fitness Holding Corp.* ..... 6,015,625
Rental Auto/Equipment - 0.5%
514,538 Rent-Way, Inc.* ........................ 8,554,194
Resorts and Theme Parks - 1.1%
700,000 Premier Parks, Inc. .................... 20,256,250
Retail - Computer Equipment - 0.9%
471,067 Insight Enterprises, Inc.* ............. 17,606,129
Retail - Consumer Electronics - 0.1%
73,335 REX Stores Corp.* ...................... 2,099,214
Retail - Discount - 1.1%
654,090 Ames Department Stores, Inc.* .......... 20,726,477
Retail - Internet - 0.8%
695,145 Beyond.com Corp.* ...................... 6,430,091
143,685 Calico Commerce, Inc.* ................. 8,944,391
15,374,482
Retail - Office Supplies - 0.8%
958,820 School Specialty, Inc.*,# .............. 14,202,521
Retail - Restaurants - 0.2%
194,730 P.F. Chang's China Bistro, Inc.* ....... 4,186,695
Schools - 0.5%
242,365 Career Education Corp.* ................ 5,332,030
154,730 Corinthian Colleges, Inc.* ............. 3,017,235
500,000 EduTrek International, Inc.*,# ......... 406,250
8,755,515
Telecommunication Equipment - 1.5%
117,130 Ditech Communications Corp.* ........... 10,292,799
74,290 Efficient Networks, Inc.* .............. 3,157,325
317,705 Terayon Communication Systems, Inc.* ... 13,899,594
27,349,718
Telecommunication Services - 2.0%
704,065 Adelphia Business Solutions, Inc.* ..... 19,977,844
210,290 CapRock Communications Corp.* .......... 6,058,981
530,900 Splitrock Services, Inc.* .............. 11,613,437
37,650,262
Telephone - Integrated - 1.3%
700,000 Viatel, Inc.* .......................... 23,362,500
Television - 0.8%
401,610 Acme Communications, Inc.* ............. $ 14,457,960
Therapeutics - 2.6%
33,840 Abgenix, Inc.* ......................... 1,501,650
1,084,170 QLT PhotoTherapeutics, Inc.* ........... 45,941,704
47,443,354
Travel Services - 0.6%
258,035 Pegasus Systems, Inc.* ................. 11,030,996
Wireless Equipment - 2.4%
847,260 RF Micro Devices, Inc.* ................ 43,739,797
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,009,596,518) .................. 1,855,296,380
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 1.0%
Household Finance Corp.
$ 19,000,000 5.30%, 11/1/99
(amortized cost $19,000,000) ......... 19,000,000
- --------------------------------------------------------------------------------
U.S. Government Agency - 1.4%
Fannie Mae
25,000,000 4.88%, 12/8/99
(amortized cost $24,869,986) ......... 24,869,986
- --------------------------------------------------------------------------------
Total Investments (total cost $1,053,466,504) - 102.1% .... 1,899,166,366
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.1%) (38,811,114)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 1,860,355,252
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 3.5% $ 66,693,426
Israel 0.8% 16,287,440
Italy 0.1% 2,260,554
Mexico 0.4% 7,029,231
Netherlands 0.6% 10,675,000
Switzerland 0.6% 11,308,627
United Kingdom 0.1% 2,204,010
United States++ 93.9% 1,782,708,078
- --------------------------------------------------------------------------------
Total 100.0% $ 1,899,166,366
++Includes Short-Term Securities (91.6% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Canadian Dollar 4/7/00 23,000,000 $ 15,694,302 $ 39,724
- --------------------------------------------------------------------------------
Total $ 15,694,302 $ 39,724
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 51
<PAGE>
Janus | Worldwide Fund
[PHOTO]
Helen Young Hayes
portfolio manager
[PHOTO]
Laurence Chang
portfolio manager
Janus Worldwide Fund returned 42.33% for the 12-month period ended October 31,
1999, while our benchmark, the Morgan Stanley Capital International World Index,
gained 24.91%.(1) This strong performance placed the Fund 20th out of 238 global
funds tracked by Lipper, Inc., a leading mutual fund rating company.(2)
Our results were achieved despite a volatile global economic environment. Japan,
struggling through a multiyear recession, has at long last begun to show signs
of economic recovery. More important, Japanese corporations have started to
restructure, phasing out non-core businesses, reducing excess capacity and being
more disciplined in allocating capital. In the Asian emerging markets, economic
activity has bounced back far more vigorously than initially expected from last
fall's crisis. Reflecting these changes, the Fund has been able to find an
increasing number of investment opportunities in these areas. On the other hand,
stronger-than-anticipated economic growth globally drove up interest rates in
the U.S. and Europe, creating uncertainty in these markets.
Alan Greenspan recently commented that the "defining characteristic of the wave
of technological innovation sweeping over the U.S. economy is the role of
information." We believe this comment is increasingly apt outside the U.S. as
well. As we continue to evolve into an information-driven, networked global
economy, and as the Internet, entertainment and communications converge, we are
finding exciting opportunities among global companies leading these changes.
Beneficiaries of the Internet revolution include U.S.-based America Online, the
world's largest Internet service provider, and Amazon.com, the leading online
retailer, both of which gained impressively during the period. We are also
pleased with our position in Softbank, a Japanese firm that provides funding for
companies such as Yahoo! and E-Trade. More interesting, Softbank has brought
these and other Internet businesses into Japan. Given relatively high
distribution costs for goods and services in most countries outside the U.S., we
believe the Internet, as a distribution channel, could ultimately have a deeper
impact overseas.
Enhanced Internet content is also driving demand for broadband connectivity.
Cable companies such as Time Warner and Comcast in the U.S. and NTL in the UK
are particularly well positioned to meet this demand with their high-capacity
networks. The Internet, deregulation and the digitalization of broadcast media
have opened new revenue opportunities for these companies, from telephone
services to high-speed Internet access to e-commerce offerings.
The exploding volume of data - doubling every six to seven months - has created
enormous opportunities for the leading companies that provide the Internet
infrastructure. Cisco Systems, with its dominance in routing technology; Sun
Microsystems, with its increasing share in Web servers; and EMC Corp., which
builds high-end data storage systems, are three U.S. businesses with unique
franchises. Several international companies are also helping enable the
Internet, including Canadian telecom equipment giant Nortel Networks.
Other enablers of the Internet include silicon chipmakers such as global leaders
Texas Instruments in the U.S. and STMicroelectronics in France, both of which
rewarded us with strong gains. We also benefited from our positions in companies
that provide
Portfolio Profile October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Equities 92.0% 85.6%
Foreign 61.4% 60.7%
European 35.0% 52.1%
Top 10 Equities (% of Assets) 35.2% 24.4%
Number of Stocks 112 155
Cash & Cash Equivalents 8.0% 14.4%
- --------------------------------------------------------------------------------
Top 5 Industries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
Cellular Telecommunications 13.0% 1.9%
Telecommunication Equipment 9.3% 4.0%
Diversified Operations 5.7% 10.1%
Networking Products 5.1% 3.5%
Medical - Drugs 4.3% 9.6%
- --------------------------------------------------------------------------------
Top 5 Countries October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
United States 38.8% 39.4%
Japan 15.7% 6.7%
United Kingdom 7.5% 10.2%
Netherlands 6.7% 5.9%
Finland 5.9% 4.3%
- --------------------------------------------------------------------------------
Top 10 Equity Holdings October 31, 1999 October 31, 1998
- --------------------------------------------------------------------------------
NTT Mobile Communication Network, Inc. 6.7% 2.0%
Nokia Oyj 5.4% 3.6%
Cisco Systems, Inc. 5.1% 3.5%
Tyco International, Ltd. 3.3% 2.9%
Mannesmann A.G 2.9% 2.9%
Microsoft Corp. 2.6% 2.8%
Time Warner, Inc. 2.6% 2.1%
China Telecom, Ltd. 2.4% 0.1%
Koninklijke (Royal) Philips Electronics N.V 2.2% 1.1%
Vodafone AirTouch PLC 2.0% 0.3%
- --------------------------------------------------------------------------------
(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.
(2) Lipper, Inc. defines a global fund 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 October 31, 1999, Janus Worldwide Fund ranked
3/66 for the 5-year period. The ranking is based on total return, including
reinvested dividends and capital gains for the stated period.
Past performance does not guarantee future results.
52 Janus Equity Funds / October 31, 1999
<PAGE>
semiconductor manufacturers with the technology to continually improve the
performance of their chips, including Dutch technology company ASM Lithography.
Japan's NTT DoCoMo was yet another extraordinary performer for the Fund. Known
as the mobile data pioneer, DoCoMo is capitalizing on the fact that the Internet
is going mobile. The company's "I-mode" data service enables cellular phone
users to access the Internet through their wireless handsets. Other wireless
holdings that impressed us were Mannesmann in Germany and Sprint PCS and
AirTouch Communications (now part of Vodafone), two U.S.-based businesses. As
these companies upgrade their networks to accommodate both accelerating
subscriber growth and new data applications, telecom equipment companies like
Nokia in Finland and Sweden's Ericsson continue to benefit. Nokia has been a
particularly strong performer, as the company increased market share in both its
network infrastructure and cellular handset businesses.
Despite the Fund's strong performance, we did have a few disappointments. Among
them was Wolters Kluwer, a Dutch publisher and long-time holding in the
portfolio that declined due to rising expenses as the company undertook
initiatives to adapt to the Internet and online distribution. We thus liquidated
our position in the stock.
By taking a broad approach in viewing the dramatic changes in the global
economy, yet still retaining our philosophy of building the Fund on a
company-by-company basis, we are confident we will be able to continue
identifying compelling ideas in a rapidly changing marketplace.
Once again, thank you for your investment and confidence in Janus Worldwide
Fund.
Performance Overview
[GRAPHIC OMITTED]
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 October 31, 1999. The
upper and lower right quadrants reflect the ending value of the hypothetical
investment in Janus Worldwide Fund ($52,245) as compared to the Morgan Stanley
Capital International World Index ($28,974).
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 42.33%
Five Year, 22.78%
Since 5/15/91*, 21.57%
Janus Worldwide Fund - $52,245
Morgan Stanley Capital
International World Index - $28,974
*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
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 90.6%
Apparel Manufacturers - 0.4%
9,471 Gucci Group N.V.** ..................... $ 758,035
1,099,900 Gucci Group N.V. - New York Shares** ... 88,816,925
89,574,960
Audio and Video Products - 1.0%
1,608,900 Sony Corp.** ........................... 250,677,486
Brewery - 0.4%
7,414,000 Kirin Brewery Company, Ltd.** .......... 84,824,761
Broadcast Services and Programming - 2.2%
6,239,300 AT&T Corp./Liberty Media Group - Class A* 247,622,219
1,856,510 Clear Channel Communications, Inc.* .... 149,216,991
2,968,225 Grupo Televisa S.A. (GDR) .............. 126,149,562
522,988,772
Cable Television - 2.6%
8,307,790 Comcast Corp. - Special Class A ........ 349,965,653
1,123,870 Rogers Communications, Inc.*,** ........ 22,617,884
5,046,697 Rogers Communications, Inc. - Class B*,** 102,244,592
34,998,710 Telewest Communications PLC*,** ........ 149,890,690
624,718,819
Cellular Telecommunications - 13.0%
46,178,000 China Telecom, Ltd.*,** ................ $ 158,096,674
6,201,255 China Telecom, Ltd. (ADR)*,** .......... 418,584,712
680,850 Nextel Communications, Inc. - Class A* . 58,680,759
60,811 NTT Mobile Communications
Network, Inc.** ...................... 1,614,089,649
4,936,343 Orange PLC*,** ......................... 121,914,016
1,940,130 Sprint Corp./PCS Group* ................ 160,909,532
19,509,625 Telecom Italia Mobile S.p.A.** ......... 122,110,797
26,865,650 Vodafone AirTouch PLC** ................ 124,757,282
7,405,525 Vodafone AirTouch PLC (ADR)** .......... 355,002,355
3,134,145,776
Commercial Banks - 1.7%
4,310,830 Argentaria, Caja Postal y Banco Hipotecario
de Espana, S.A.** .................... 95,601,945
4,946,147 Banco Santander Central Hispano, S.A.** 51,310,654
2,327,525 Bipop - Carire S.p.A.** ................ 98,489,856
3,999,830 Firstar Corp. .......................... 117,495,006
10,795,404 UniCredito Italiano S.p.A.** ........... 50,446,581
413,344,042
Commercial Services - 0.6%
3,902,337 Paychex, Inc. .......................... 153,654,519
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 53
<PAGE>
Janus | Worldwide Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computer Services - 3.5%
781,340 Atos S.A.*,** .......................... $ 100,025,498
1,194,038 Cap Gemini S.A.** ...................... 180,719,084
786,155 Electronic Data Systems Corp. .......... 45,990,068
7,254,959 Getronics N.V.**,# ..................... 361,440,389
7,835,756 Logica PLC** ........................... 119,319,382
790,545 WM-Data A.B. - Class B ................. 33,154,395
840,648,816
Computer Software - 2.6%
6,893,485 Microsoft Corp.* ....................... 638,078,205
Computers - Integrated Systems - 2.4%
887,151 ASM Lithography Holding N.V.*,** ....... 62,566,728
686,510 ASM Lithography Holding N.V. (ADR)*,** . 49,857,789
715,475 Equant N.V.*,** ........................ 69,560,000
505,210 Equant N.V. - New York Shares*,** ...... 49,005,370
8,149,800 Fujitsu, Ltd.** ........................ 245,212,349
7,329,546 SEMA Group PLC** ....................... 95,826,523
572,028,759
Computers - Memory Devices - 1.0%
3,420,330 EMC Corp.* ............................. 249,684,090
Computers - Micro - 1.8%
2,612,370 Dell Computer Corp.* ................... 104,821,346
1,012,220 IBM Corp. .............................. 99,577,142
2,239,735 Sun Microsystems, Inc.* ................ 236,991,960
441,390,448
Diversified Operations - 5.7%
15,317,428 Hays PLC** ............................. 174,449,954
2,596,850 Seagram Company, Ltd. .................. 128,219,469
19,580,971 Tyco International, Ltd. ............... 782,015,029
3,797,333 Vivendi** .............................. 287,565,013
1,372,249,465
Electronic Components - 3.2%
3,179,656 Koninklijke (Royal) Philips Electronics N.V.** 325,842,800
1,999,705 Koninklijke (Royal) Philips Electronics N.V.
- New York Shares** .................. 207,844,338
11,238,000 NEC Corp.** ............................ 227,215,116
760,902,254
Electronic Components - Semiconductors - 1.6%
208,800 Rohm Company, Ltd.** ................... 46,717,879
1,425,233 STMicroelectronics N.V.** .............. 125,082,261
36,410 STMicroelectronics N.V. - New York Shares** 3,308,759
2,339,160 Texas Instruments, Inc. ................ 209,939,610
385,048,509
Engineering - Research and Development - 0.4%
1,047,030 ABB, Ltd.*,** .......................... 105,476,933
Fiber Optics - 0.8%
1,116,200 JDS Uniphase Corp.* .................... 186,265,875
Finance - Credit Card - 0.9%
1,460,325 American Express Co. ................... 224,890,050
Food - Catering - 0.6%
13,011,095 Compass Group PLC** .................... 140,254,854
Food - Retail - 0.7%
892,153 Carrefour S.A.** ....................... 165,034,744
Human Resources - 0.3%
5,357,670 Capita Group PLC** ..................... 71,474,088
Internet Content - 0.7%
435,400 Softbank Corp.** ....................... 180,651,703
Internet Software - 1.1%
2,111,265 America Online, Inc.* .................. 273,804,680
Life and Health Insurance - 0.8%
12,267,567 Prudential PLC** ....................... 192,139,425
Machinery - General Industrial - 3.1%
574,400 Applied Materials, Inc.* ............... $ 51,588,300
4,452,960 Mannesmann A.G.** ...................... 701,574,513
753,162,813
Medical - Biomedical and Genetic - 0.5%
798,115 Genentech, Inc.* ....................... 116,325,261
Medical - Drugs - 4.3%
2,989,065 Pfizer, Inc. ........................... 118,068,067
1,840,372 Sanofi-Synthelabo S.A.*,** ............. 81,144,849
4,212,575 Schering-Plough Corp. .................. 208,522,462
797,285 Sepracor, Inc.* ........................ 66,324,146
5,896,000 Takeda Chemical Industries, Ltd.** ..... 338,415,336
1,740,314 Warner-Lambert Co. ..................... 138,898,811
1,888,000 Yamanouchi Pharmaceutical Company, Ltd.** 85,571,446
1,036,945,117
Medical Instruments - 0.8%
5,870,265 Medtronic, Inc. ........................ 203,257,926
Metal Processors and Fabricators - 1.0%
20,944,224 Assa Abloy A.B. - Class B# ............. 232,622,557
Money Center Banks - 1.9%
5,462,694 Banco Bilbao Vizcaya S.A.** ............ 73,377,195
2,696,045 Bank of New York Company, Inc. ......... 112,896,884
19,053,000 Fuji Bank, Ltd.** ...................... 261,074,914
447,348,993
Multimedia - 3.1%
9,005,000 Time Warner, Inc. ...................... 627,535,937
2,543,100 Viacom, Inc. - Class B* ................ 113,803,725
741,339,662
Networking Products - 5.1%
16,478,816 Cisco Systems, Inc.* ................... 1,219,432,384
Oil Companies - Integrated - 1.0%
1,821,929 Total Fina S.A.** ...................... 246,069,594
Pipelines - 0.5%
2,941,290 Enron Corp. ............................ 117,467,769
Property and Casualty Insurance - 0.2%
3,005,000 Tokio Marine & Fire Insurance
Company, Ltd.** ...................... 39,304,553
Radio - 0.3%
1,015,290 AMFM, Inc.* ............................ 71,070,300
Recycling - 0.2%
1,170,742 Tomra Systems A.S.A .................... 44,772,549
Retail - Diversified - 0.3%
968,000 Ito-Yokado Company, Ltd.** ............. 77,358,341
Retail - Internet - 0.5%
1,768,385 Amazon.com, Inc.* ...................... 124,892,191
Retail - Office Supplies - 0.5%
5,030,575 Staples, Inc.* ......................... 111,615,883
Security Services - 1.0%
15,812,424 Securitas A.B. - Class B# .............. 234,166,486
Telecommunication Equipment - 9.3%
1,597,385 Comverse Technology, Inc.* ............. 181,303,198
1,276,415 Lucent Technologies, Inc. .............. 82,009,664
5,968,408 Nokia Oyj** ............................ 682,575,492
5,342,530 Nokia Oyj (ADR)** ...................... 617,396,123
4,681,270 Nortel Networks Corp. .................. 289,946,161
5,278,588 Telefonaktiebolaget L.M. Ericsson - Class B 219,134,284
3,668,559 Telefonaktiebolaget L.M. Ericsson (ADR) 156,830,897
2,229,195,819
See Notes to Schedules of Investments.
54 Janus Equity Funds / October 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Telecommunication Services - 3.5%
8,585,186 COLT Telecom Group PLC*,**,+ ........... $ 256,391,257
1,229,875 Korea Telecom Corp. (ADR)* ............. 43,353,094
2,197,343 NTL, Inc.* ............................. 165,624,729
13,066 NTT Data Corp.** ....................... 206,581,933
3,813,854 Sonera Oyj** ........................... 114,444,138
700,000 United Pan-Europe Communications N.V.*,** 53,782,228
840,177,379
Telephone - Integrated - 2.5%
9,528 Nippon Telegraph & Telephone Corp.** ... 146,078,893
2,959,720 Telefonos de Mexico S.A. (ADR) ......... 253,056,060
11,571,516 Telefonica S.A.** ...................... 190,217,463
416,137 Telefonica S.A. (ADR)** ................ 20,780,841
610,133,257
Transportation - Air Freight - 0.9%
8,326,383 TNT Post Group N.V.** .................. 211,784,965
Water - 0.1%
2,295,775 Azurix Corp.* .......................... 32,284,336
- --------------------------------------------------------------------------------
Total Common Stock (cost $13,639,666,092) ................. 21,814,680,168
- --------------------------------------------------------------------------------
Preferred Stock - 1.4%
Automotive - Cars and Light Trucks - 0.4%
37,477 Porsche A.G.** ......................... 102,020,620
Telephone - Integrated - 1.0%
3,066,295 Telecomunicacoes Brasileiras S.A. (ADR) 238,787,723
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $360,581,857) ................. 340,808,343
- --------------------------------------------------------------------------------
Rights - 0%
3,181,700 Telewest Communications PLC*,** (cost $0) 2,871,468
- --------------------------------------------------------------------------------
Money Market - 0.7%
$185,000,000 Janus Government Money Market Fund
5.35% (cost $185,000,000) ............ 185,000,000
- --------------------------------------------------------------------------------
Repurchase Agreements - 3.7%
540,100,000 Deutsche Bank Securities, Inc., 5.425%
dated 10/29/99, maturing 11/1/99, to be
repurchased at $540,344,170 collateral-
ized by $134,858,815 in Fannie Mae,
5.75%-7.00%, 8/25/07-1/25/29;
$585,559,792 in Freddie Mac, 0%-
6.7312%, 3/15/14-4/1/29; with respective
values of $106,907,150 and $443,994,850 540,100,000
350,000,000 Morgan Stanley & Co., Inc., 5.30%
dated 10/29/99, maturing 11/1/99, to be
repurchased at $350,154,583 collateralized
by $83,780,000 in Fannie Mae, 5.06%-
6.50%, 10/18/00-10/25/28; $357,328,619
in Freddie Mac, 0%-569.4117%, 11/17/99-
10/15/24; with respective values of
$79,455,780 and $277,551,160 ......... 350,000,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (cost $890,100,000) ........... 890,100,000
- --------------------------------------------------------------------------------
Time Deposit - 1.1%
SouthTrust Bank EDT
264,000,000 5.25%, 11/1/99 (cost $264,000,000) ... 264,000,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 2.8%
Fannie Mae:
100,000,000 4.72%, 11/12/99 ...................... 99,855,778
100,000,000 5.02%, 11/22/99 ...................... 99,707,167
100,000,000 5.21%, 12/6/99 ....................... 99,493,472
100,000,000 4.88%, 12/8/99 ....................... 99,498,444
75,000,000 5.50%, 1/18/00 ....................... 74,110,500
50,000,000 5.52%, 2/14/00 ....................... 49,197,500
Federal Home Loan Bank System
100,000,000 5.50%, 2/22/00 ....................... 98,267,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - (continued)
Freddie Mac
$ 50,000,000 5.15%, 11/15/99 ...................... $ 49,899,861
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $670,029,583) ........ 670,029,722
- --------------------------------------------------------------------------------
Total Investments (total cost $16,009,377,532) - 100.3% ... 24,167,489,701
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.3%) (76,169,055)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 24,091,320,646
- --------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 3.2% $ 782,015,029
Brazil 1.0% 238,787,723
Canada 2.2% 543,028,105
Finland 5.9% 1,414,415,753
France 4.4% 1,060,558,782
Germany 3.3% 803,595,133
Hong Kong 2.4% 576,681,387
Italy 1.1% 271,047,233
Japan 15.7% 3,803,774,358
Mexico 1.6% 379,205,622
Netherlands 6.7% 1,609,650,586
Norway 0.2% 44,772,548
South Korea 0.2% 43,353,093
Spain 1.8% 431,288,098
Sweden 3.6% 875,908,617
Switzerland 0.4% 105,476,932
United Kingdom 7.5% 1,804,291,293
United States++ 38.8% 9,379,639,409
- --------------------------------------------------------------------------------
Total 100.0% $ 24,167,489,701
++Includes Short-Term Securities (30.5% excluding Short-Term Securities)
Forward Currency Contracts, Open at October 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 12/9/99 174,000,000 $ 286,056,000 ($ 5,616,352)
Canadian Dollar 11/18/99 11,700,000 7,957,560 92,087
Canadian Dollar 4/7/00 31,300,000 21,357,898 54,060
Euro 12/3/99 390,600,000 410,559,660 4,062,240
Euro 4/14/00 414,500,000 431,618,850 16,041,152
Euro 4/20/00 168,200,000 175,079,380 10,007,900
Hong Kong Dollar
5/7/01 3,012,000,000 382,088,038 (3,023,443)
Japanese Yen
11/18/99 18,000,000,000 172,948,708 (17,796,376)
Japanese Yen 12/3/99 12,000,000,000 115,301,908 (15,301,908)
Japanese Yen 3/16/00 1,500,000,000 14,415,218 91,553
Japanese Yen 4/14/00 25,500,000,000 245,069,537 2,023,486
Japanese Yen 4/20/00 14,000,000,000 134,549,274 1,796,655
South Korean Won
7/16/01 15,500,000,000 12,884,456 53,775
Swiss Franc 12/3/99 31,000,000 20,462,046 13,395
- --------------------------------------------------------------------------------
Total $ 2,430,348,533 ($ 7,501,776)
See Notes to Schedules of Investments.
Janus Equity Funds / October 31, 1999 55
<PAGE>
Statements of | Operations
<TABLE>
<CAPTION>
Janus Janus Janus
For the fiscal year or period ended October 31, 1999 Janus Balanced Enterprise Equity Income
(all numbers in thousands) Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C>
Interest $ 107,379 $ 53,300 $ 2,061 $ 5,017
Dividends 94,923 10,867 1,047 5,377
Foreign tax withheld (358) (60) (7) (27)
- -----------------------------------------------------------------------------------------------------------------------
201,944 64,107 3,101 10,367
- -----------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 188,515 13,100 7,724 4,084
Transfer agent fees and expenses 49,476 3,574 2,334 1,165
Registration fees 1,057 759 414 278
Postage and mailing expenses 1,929 155 175 83
Custodian fees 1,969 181 126 79
Printing expenses 2,730 204 215 100
Audit fees 85 20 24 19
Trustees' fees and expenses 94 11 12 5
Other expenses 293 33 29 25
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 246,148 18,037 11,053 5,838
- -----------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (2,776) (284) (378) (83)
- -----------------------------------------------------------------------------------------------------------------------
Net Expenses 243,372 17,753 10,675 5,755
- -----------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) (41,428) 46,354 (7,574) 4,612
- -----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments:
Net realized gain/(loss) from
securities transactions 4,531,480 45,205 164,109 20,373
Net realized gain/(loss) from
foreign currency transactions (15,914) (1,008) 278 (448)
Net realized gain/(loss)
from futures contracts -- -- -- --
Change in net unrealized appreciation or
depreciation of investments and foreign currency 7,602,574 282,705 645,267 133,653
- -----------------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments 12,118,140 326,902 809,654 153,578
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net
Assets Resulting from Operations $ 12,076,712 $ 373,256 $ 802,080 $ 158,190
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus Janus Janus
Global Global Growth Janus
Life Sciences Technology and Income Mercury
Fund(1) Fund(1) Fund Fund
- -----------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C>
Interest $ 1,028 $ 8,646 $ 32,259 $ 16,616
Dividends 461 970 23,396 11,059
Foreign tax withheld (8) (53) (224) (286)
- -----------------------------------------------------------------------------------------------------------------------
1,481 9,563 55,431 27,389
- -----------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 1,422 7,159 28,839 34,580
Transfer agent fees and expenses 477 2,246 8,831 10,717
Registration fees 183 816 623 1,624
Postage and mailing expenses 59 201 535 623
Custodian fees 44 157 367 388
Printing expenses 87 282 778 979
Audit fees 17 12 15 15
Trustees' fees and expenses 5 10 19 13
Other expenses 14 59 52 49
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 2,308 10,942 40,059 48,988
- -----------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (52) (178) (606) (973)
- -----------------------------------------------------------------------------------------------------------------------
Net Expenses 2,256 10,764 39,453 48,015
- -----------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) (775) (1,201) 15,978 (20,626)
- -----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments:
Net realized gain/(loss) from
securities transactions (7,916) 32,102 295,165 873,669
Net realized gain/(loss) from
foreign currency transactions 8 (1) 7,072 10,621
Net realized gain/(loss)
from futures contracts -- -- -- --
Change in net unrealized appreciation or
depreciation of investments and foreign currency 42,529 985,283 1,306,446 1,866,065
- -----------------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments 34,621 1,017,384 1,608,683 2,750,355
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net
Assets Resulting from Operations $ 33,846 $ 1,016,183 $ 1,624,661 $ 2,729,729
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus
Janus Janus Special Janus
Olympus Overseas Situations Twenty
Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C>
Interest $ 18,240 $ 10,395 $ 580 $ 227,098
Dividends 4,336 34,332 1,609 54,990
Foreign tax withheld (95) (4,500) (1) (1,713)
- -----------------------------------------------------------------------------------------------------------------------
22,481 40,227 2,188 280,375
- -----------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 15,148 30,154 6,903 144,063
Transfer agent fees and expenses 4,671 7,954 2,347 41,139
Registration fees 694 106 91 3,612
Postage and mailing expenses 296 246 227 1,682
Custodian fees 226 3,101 116 1,311
Printing expenses 438 354 285 2,460
Audit fees 13 19 24 42
Trustees' fees and expenses 10 22 12 105
Other expenses 30 158 34 129
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 21,526 42,114 10,039 194,543
- -----------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (482) (460) (237) (2,294)
- -----------------------------------------------------------------------------------------------------------------------
Net Expenses 21,044 41,654 9,802 192,249
- -----------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) 1,437 (1,427) (7,614) 88,126
- -----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments:
Net realized gain/(loss) from
securities transactions 184,613 222,112 180,611 1,696,305
Net realized gain/(loss) from
foreign currency transactions 3,753 (24,762) 20 5,760
Net realized gain/(loss)
from futures contracts -- 6,888 -- --
Change in net unrealized appreciation or
depreciation of investments and foreign currency 1,038,175 1,425,059 239,367 7,129,143
- -----------------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments 1,226,541 1,629,297 419,998 8,831,208
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net
Assets Resulting from Operations $ 1,227,978 $ 1,627,870 $ 412,384 $ 8,919,334
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus Janus
Venture Worldwide
Fund Fund
- -----------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C>
Interest $ 4,188 $ 70,055
Dividends 862 123,129
Foreign tax withheld (17) (13,309)
- -----------------------------------------------------------------------------------------------------------------------
5,033 179,875
- -----------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 9,179 122,952
Transfer agent fees and expenses 2,543 33,501
Registration fees 98 1,284
Postage and mailing expenses 298 962
Custodian fees 137 8,433
Printing expenses 272 1,395
Audit fees 16 50
Trustees' fees and expenses -- 70
Other expenses 33 351
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 12,576 168,998
- -----------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (129) (2,474)
- -----------------------------------------------------------------------------------------------------------------------
Net Expenses 12,447 166,524
- -----------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) (7,414) 13,351
- -----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments:
Net realized gain/(loss) from
securities transactions 305,991 897,252
Net realized gain/(loss) from
foreign currency transactions (273) (82,872)
Net realized gain/(loss)
from futures contracts -- 28,109
Change in net unrealized appreciation or
depreciation of investments and foreign currency 619,845 5,623,223
- -----------------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments 925,563 6,465,712
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net
Assets Resulting from Operations $ 918,149 $ 6,479,063
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Period from December 31, 1998 (inception) to October 31, 1999.
See Notes to Financial Statements.
56 and 57 Janus Equity Funds / October 31, 1999
<PAGE>
Statements of | Assets & Liabilities
<TABLE>
<CAPTION>
Janus Janus
As of October 31, 1999 Janus Janus Equity Global
(all numbers in thousands except Janus Balanced Enterprise Income Life Sciences
net asset value per share) Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C>
Investments at cost $ 22,672,729 $ 2,524,480 $ 1,583,665 $ 600,077 $ 313,608
Investments at value $ 35,869,660 $ 2,888,729 $ 2,350,412 $ 754,934 $ 356,124
Cash 735 -- 1,592 556 589
Receivables:
Investments sold 178,472 64,490 9,573 22,237 6,059
Fund shares sold 69,236 15,640 50,541 6,003 2,362
Dividends 14,234 1,548 323 1,020 24
Interest 260 23,214 -- 1,840 14
Other assets 145 2 3 1 --
Forward currency contracts 920 269 -- 59 13
- --------------------------------------------------------------------------------------------------------------------
Total Assets 36,133,662 2,993,892 2,412,444 786,650 365,185
- --------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Due to custodian -- 10,368 -- -- --
Investments purchased 231,426 43,878 67,874 -- 18,668
Fund shares repurchased 42,434 7,265 13,071 4,577 1,640
Advisory fees 18,407 1,554 1,126 434 217
Transfer agent fees and expenses 4,252 373 258 94 48
Accrued expenses 2,413 685 417 226 176
Forward currency contracts -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total Liabilities 298,932 64,123 82,746 5,331 20,749
- --------------------------------------------------------------------------------------------------------------------
Net Assets $ 35,834,730 $ 2,929,769 $ 2,329,698 $ 781,319 $ 344,436
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 837,703 134,478 39,728 34,612 28,781
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 42.78 $ 21.79 $ 58.64 $ 22.57 $ 11.97
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus Janus
As of October 31, 1999 Global Growth Janus Janus Janus
(all numbers in thousands except Technology and Income Mercury Olympus Overseas
net asset value per share) Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C>
Investments at cost $ 2,332,324 $ 4,012,630 $ 6,686,197 $ 2,553,893 $ 3,797,494
Investments at value $ 3,317,052 $ 5,807,053 $ 9,025,736 $ 3,856,807 $ 5,730,362
Cash 612 581 -- 320 721
Receivables:
Investments sold 22,003 47,978 207,905 35,969 35,946
Fund shares sold 65,174 22,969 70,207 26,835 40,492
Dividends 230 2,538 417 392 5,293
Interest 515 3,045 79 -- --
Other assets -- 12 9 4 20
Forward currency contracts 555 3,543 15,943 2,583 --
- --------------------------------------------------------------------------------------------------------------------
Total Assets 3,406,141 5,887,719 9,320,296 3,922,910 5,812,834
- --------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Due to custodian -- -- 1,557 -- --
Investments purchased 59,638 39,064 227,478 22,119 150,081
Fund shares repurchased 9,214 7,024 23,797 10,156 6,862
Advisory fees 1,564 3,022 4,629 1,961 2,917
Transfer agent fees and expenses 339 766 1,147 461 673
Accrued expenses 872 958 1,805 765 522
Forward currency contracts -- -- -- -- 11,799
- --------------------------------------------------------------------------------------------------------------------
Total Liabilities 71,627 50,834 260,413 35,462 172,854
- --------------------------------------------------------------------------------------------------------------------
Net Assets $ 3,334,514 $ 5,836,885 $ 9,059,883 $ 3,887,448 $ 5,639,980
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 159,134 158,427 254,168 95,129 222,517
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 20.95 $ 36.84 $ 35.65 $ 40.87 $ 25.35
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus
As of October 31, 1999 Special Janus Janus Janus
(all numbers in thousands except Situations Twenty Venture Worldwide
net asset value per share) Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments at cost $ 918,480 $ 18,130,745 $ 1,053,467 $ 16,009,378
Investments at value $ 1,200,622 $ 28,837,043 $ 1,899,166 $ 24,167,490
Cash 1,595 2,063 1,570 562
Receivables:
Investments sold 1,594 15,469 8,900 178,615
Fund shares sold 4,312 32,314 556 117,486
Dividends 16 2,619 35 20,042
Interest 169 12,805 -- 1,345
Other assets 4 62 23 62
Forward currency contracts -- -- 40 --
- --------------------------------------------------------------------------------------------------------------------
Total Assets 1,208,312 28,902,375 1,910,290 24,485,602
- --------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Due to custodian -- -- -- --
Investments purchased 7,414 38,520 47,994 339,608
Fund shares repurchased 2,511 48,022 640 29,352
Advisory fees 669 14,887 953 12,446
Transfer agent fees and expenses 153 3,829 248 3,014
Accrued expenses 186 4,005 100 2,359
Forward currency contracts 401 -- -- 7,502
- --------------------------------------------------------------------------------------------------------------------
Total Liabilities 11,334 109,263 49,935 394,281
- --------------------------------------------------------------------------------------------------------------------
Net Assets $ 1,196,978 $ 28,793,112 $ 1,860,355 $ 24,091,321
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 52,623 412,990 20,736 409,242
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 22.75 $ 69.72 $ 89.71 $ 58.87
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
58 and 59 Janus Equity Funds / October 31, 1999
<PAGE>
Statements of | Changes in Net Assets
<TABLE>
<CAPTION>
Janus
Janus Balanced
For the fiscal year or period ended October 31 Fund Fund
(all numbers in thousands) 1999 1998 1999 1998
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (41,428) $ (825) $ 46,354 $ 12,539
Net realized gain/(loss) from investment transactions 4,515,566 589,663 44,197 5,846
Change in unrealized net appreciation or depreciation
of investments and foreign currency 7,602,574 2,210,595 282,705 49,716
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 12,076,712 2,799,433 373,256 68,101
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- (149,577) (40,851) (10,977)
Dividends (in excess of net investment income)* -- -- -- --
Net realized gain from investment transactions* (609,005) (3,125,216) (6,137) (34,067)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (609,005) (3,274,793) (46,988) (45,044)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 7,220,120 3,186,804 2,469,162 622,532
Reinvested dividends and distributions 593,074 3,186,148 45,775 44,048
Shares repurchased (4,167,433) (4,205,664) (741,485) (219,747)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 3,645,761 2,167,288 1,773,452 446,833
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 15,113,468 1,691,928 2,099,720 469,890
Net Assets:
Beginning of period 20,721,262 19,029,334 830,049 360,159
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 35,834,730 $ 20,721,262 $ 2,929,769 $ 830,049
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 18,192,467 $ 14,546,706 $ 2,511,385 $ 737,933
Undistributed net investment income/(loss)* -- -- 9,728 4,165
Undistributed net realized gain/(loss) from investments* 4,444,420 579,287 44,135 6,135
Unrealized appreciation of investments and foreign currency 13,197,843 5,595,269 364,521 81,816
- ---------------------------------------------------------------------------------------------------------------------------------
$ 35,834,730 $ 20,721,262 $ 2,929,769 $ 830,049
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 193,574 113,579 119,933 37,044
Reinvested distributions 17,907 130,632 2,232 2,868
- ---------------------------------------------------------------------------------------------------------------------------------
Total 211,481 244,211 122,165 39,912
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (114,553) (151,587) (35,896) (13,233)
Net Increase/(Decrease) in Fund Shares 96,928 92,624 86,269 26,679
Shares Outstanding, Beginning of Period 740,775 648,151 48,209 21,530
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 837,703 740,775 134,478 48,209
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 19,647,972 $ 13,850,135 $ 2,551,827 $ 679,170
Proceeds from sales of securities 16,875,185 16,162,138 981,564 337,939
Purchases of long-term U.S. government obligations -- -- 417,749 45,545
Proceeds from sales of long-term U.S. government obligations -- -- 204,699 34,603
<CAPTION>
Janus Janus
Enterprise Equity Income
For the fiscal year or period ended October 31 Fund Fund
(all numbers in thousands) 1999 1998 1999 1998
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (7,574) $ (3,669) $ 4,612 $ 543
Net realized gain/(loss) from investment transactions 164,387 79,005 19,925 3,247
Change in unrealized net appreciation or depreciation
of investments and foreign currency 645,267 (12,029) 133,653 13,912
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 802,080 63,307 158,190 17,702
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- -- (4,016) (233)
Dividends (in excess of net investment income)* -- -- -- --
Net realized gain from investment transactions* (76,954) (34,480) (3,238) (5,097)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (76,954) (34,480) (7,254) (5,330)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 2,596,427 520,538 843,424 224,385
Reinvested dividends and distributions 75,297 33,924 7,039 5,387
Shares repurchased (1,626,151) (576,118) (420,862) (115,687)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 1,045,573 (21,656) 429,601 114,085
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Net Assets: 1,770,699 7,171 580,537 126,457
Beginning of period 558,999 551,828 200,782 74,325
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 2,329,698 $ 558,999 $ 781,319 $ 200,782
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 1,406,869 $ 361,296 $ 605,409 $ 175,807
Undistributed net investment income/(loss)* -- -- 916 474
Undistributed net realized gain/(loss) from investments* 156,083 76,223 20,076 3,236
Unrealized appreciation of investments and foreign currency 766,746 121,480 154,918 21,265
- ---------------------------------------------------------------------------------------------------------------------------------
$ 2,329,698 $ 558,999 $ 781,319 $ 200,782
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 57,208 16,290 41,541 15,102
Reinvested distributions 2,196 1,154 358 408
- ---------------------------------------------------------------------------------------------------------------------------------
Total 59,404 17,444 41,899 15,510
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (36,967) (18,034) (20,162) (7,952)
Net Increase/(Decrease) in Fund Shares 22,437 (590) 21,737 7,558
Shares Outstanding, Beginning of Period 17,291 17,881 12,875 5,317
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 39,728 17,291 34,612 12,875
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 1,962,882 $ 729,785 $ 830,115 $ 228,057
Proceeds from sales of securities 1,098,630 804,426 428,601 128,268
Purchases of long-term U.S. government obligations -- -- -- --
Proceeds from sales of long-term U.S. government obligations -- -- -- --
<CAPTION>
Janus Global Janus Global Janus
Life Sciences Technology Growth and Income
For the fiscal year or period ended October 31 Fund Fund Fund
(all numbers in thousands) 1999(1) 1999(1) 1999 1998
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (775) $ (1,201) $ 15,978 $ 8,295
Net realized gain/(loss) from investment transactions (7,908) 32,101 302,237 220,260
Change in unrealized net appreciation or depreciation
of investments and foreign currency 42,529 985,283 1,306,446 104,949
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 33,846 1,016,183 1,624,661 333,504
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- -- (15,193) (3,592)
Dividends (in excess of net investment income)* -- -- -- --
Net realized gain from investment transactions* -- -- (226,033) (184,658)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions -- -- (241,226) (188,250)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 453,475 3,012,815 2,509,768 1,412,356
Reinvested dividends and distributions -- -- 235,700 184,420
Shares repurchased (142,885) (694,484) (1,111,097) (811,950)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 310,590 2,318,331 1,634,371 784,826
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Net Assets: 344,436 3,334,514 3,017,806 930,080
Beginning of period -- -- 2,819,079 1,888,999
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 344,436 $ 3,334,514 $ 5,836,885 $ 2,819,079
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 309,815 $ 2,318,332 $ 3,737,108 $ 2,102,737
Undistributed net investment income/(loss)* -- -- 6,219 5,513
Undistributed net realized gain/(loss) from investments* (7,908) 30,899 295,592 219,309
Unrealized appreciation of investments and foreign currency 42,529 985,283 1,797,966 491,520
- ---------------------------------------------------------------------------------------------------------------------------------
$ 344,436 $ 3,334,514 $ 5,836,885 $ 2,819,079
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 41,355 204,154 78,387 54,594
Reinvested distributions -- -- 8,139 8,105
- ---------------------------------------------------------------------------------------------------------------------------------
Total 41,355 204,154 86,526 62,699
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (12,574) (45,020) (34,683) (31,457)
Net Increase/(Decrease) in Fund Shares 28,781 159,134 51,843 31,242
Shares Outstanding, Beginning of Period -- -- 106,584 75,342
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 28,781 159,134 158,427 106,584
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 675,905 $ 2,115,807 $ 3,132,952 $ 2,442,458
Proceeds from sales of securities 426,077 320,204 1,708,174 2,149,033
Purchases of long-term U.S. government obligations -- -- -- --
Proceeds from sales of long-term U.S. government obligations -- -- -- --
<CAPTION>
Janus
Mercury
For the fiscal year or period ended October 31 Fund
(all numbers in thousands) 1999 1998
Operations:
<S> <C> <C>
Net investment income/(loss) $ (20,626) $ (6,863)
Net realized gain/(loss) from investment transactions 884,290 243,921
Change in unrealized net appreciation or depreciation
of investments and foreign currency 1,866,065 204,681
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 2,729,729 441,739
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- --
Dividends (in excess of net investment income)* -- (4,295)
Net realized gain from investment transactions* (238,426) (196,658)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (238,426) (200,953)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 6,569,208 1,556,825
Reinvested dividends and distributions 233,638 196,626
Shares repurchased (2,602,343) (1,597,209)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 4,200,503 156,242
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Net Assets: 6,691,806 397,028
Beginning of period 2,368,077 1,971,049
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 9,059,883 $ 2,368,077
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 5,844,758 $ 1,644,255
Undistributed net investment income/(loss)* -- --
Undistributed net realized gain/(loss) from investments* 859,643 234,405
Unrealized appreciation of investments and foreign currency 2,355,482 489,417
- ---------------------------------------------------------------------------------------------------------------------------------
$ 9,059,883 $ 2,368,077
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 218,371 80,428
Reinvested distributions 9,763 12,167
- ---------------------------------------------------------------------------------------------------------------------------------
Total 228,134 92,595
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (87,968) (84,267)
Net Increase/(Decrease) in Fund Shares 140,166 8,328
Shares Outstanding, Beginning of Period 114,002 105,674
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 254,168 114,002
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 8,242,717 $ 2,114,889
Proceeds from sales of securities 4,442,546 2,337,255
Purchases of long-term U.S. government obligations -- --
Proceeds from sales of long-term U.S. government obligations -- --
</TABLE>
(1) Period from December 31, 1998, (inception) to October 31, 1999.
* See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
60 and 61 Janus Equity Funds / October 31, 1999
<PAGE>
Statements of | Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Janus Janus
Olympus Overseas
For the fiscal year ended October 31 Fund Fund
(all numbers in thousands) 1999 1998 1999 1998
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 1,437 $ (1,635) $ (1,427) $ 22,744
Net realized gain/(loss) from investment transactions 188,366 (4,017) 204,238 (174,093)
Change in unrealized net appreciation or depreciation
of investments and foreign currency 1,038,175 150,137 1,425,059 200,570
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 1,227,978 144,485 1,627,870 49,221
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- -- (18,532) (16,883)
Dividends (in excess of net investment income)* -- (1,358) (1,446) --
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 2,851,976 663,265 3,443,778 4,151,239
Reinvested dividends and distributions -- 25,635 19,035 103,249
Shares repurchased (1,140,000) (475,532) (3,319,823) (3,513,551)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 1,711,976 213,368 142,990 740,937
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 2,939,954 331,843 1,750,882 683,901
Net Assets:
Beginning of period 947,494 615,651 3,889,098 3,205,197
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 3,887,448 $ 947,494 $ 5,639,980 $ 3,889,098
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 2,397,409 $ 685,433 $ 3,689,899 $ 3,548,643
Undistributed net investment income/(loss)* 1,437 -- -- 19,959
Undistributed net realized gain/(loss) from investments* 183,105 (5,261) 29,073 (175,453)
Unrealized appreciation of investments and foreign currency 1,305,497 267,322 1,921,008 495,949
- ---------------------------------------------------------------------------------------------------------------------------------
$ 3,887,448 $ 947,494 $ 5,639,980 $ 3,889,098
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 86,347 32,029 160,426 220,566
Reinvested distributions -- 1,491 954 5,955
- ---------------------------------------------------------------------------------------------------------------------------------
Total 86,347 33,520 161,380 226,521
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (34,884) (23,295) (155,478) (188,605)
Net Increase/(Decrease) in Fund Shares 51,463 10,225 5,902 37,916
Shares Outstanding, Beginning of Period 43,666 33,441 216,615 178,699
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 95,129 43,666 222,517 216,615
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities
(excluding short-term securities):
Purchases of securities $ 3,323,040 $ 915,583 $ 4,367,373 $ 4,221,837
Proceeds from sales of securities 1,821,501 881,598 4,003,772 3,834,004
Purchases of long-term U.S. government obligations 47,700 -- -- --
Proceeds from sales of long-term U.S. government obligations 49,518 -- -- --
<CAPTION>
Janus Janus
Special Situations Twenty
For the fiscal year ended October 31 Fund Fund
(all numbers in thousands) 1999 1998 1999 1998
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (7,614) $ (3,487) $ 88,126 $ 31,052
Net realized gain/(loss) from investment transactions 180,631 (2,070) 1,702,065 84,283
Change in unrealized net appreciation or depreciation
of investments and foreign currency 239,367 9,074 7,129,143 2,427,694
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 412,384 3,517 8,919,334 2,543,029
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- -- (40,224) (16,587)
Dividends (in excess of net investment income)* -- -- -- --
Net realized gain from investment transactions* (2,186) (17,012) (86,763) (752,195)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (2,186) (17,012) (126,987) (768,782)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 632,584 904,751 14,534,172 5,456,699
Reinvested dividends and distributions 2,143 16,542 124,417 754,471
Shares repurchased (634,264) (455,258) (5,912,694) (2,601,617)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 463 466,035 8,745,895 3,609,553
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 410,661 452,540 17,538,242 5,383,800
Net Assets: 786,317 333,777 11,254,870 5,871,070
Beginning of period
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 1,196,978 $ 786,317 $ 28,793,112 $ 11,254,870
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 745,509 $ 745,046 $ 16,306,041 $ 7,560,146
Undistributed net investment income/(loss)* -- -- 79,074 31,035
Undistributed net realized gain/(loss) from investments* 169,728 (1,103) 1,701,702 86,537
Unrealized appreciation of investments and foreign currency 281,741 42,374 10,706,295 3,577,152
- ---------------------------------------------------------------------------------------------------------------------------------
$ 1,196,978 $ 786,317 $ 28,793,112 $ 11,254,870
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 31,126 59,478 248,644 137,366
Reinvested distributions 128 1,221 2,310 24,760
Total 31,254 60,699 250,954 162,126
Shares Repurchased (32,603) (30,431) (99,838) (67,253)
Net Increase/(Decrease) in Fund Shares (1,349) 30,268 151,116 94,873
Shares Outstanding, Beginning of Period 53,972 23,704 261,874 167,001
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 52,623 53,972 412,990 261,874
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities
(excluding short-term securities):
Purchases of securities $ 1,036,996 $ 1,255,119 $ 13,075,264 $ 5,303,352
Proceeds from sales of securities 1,035,768 810,438 6,885,818 3,789,475
Purchases of long-term U.S. government obligations -- -- 337,784 388,670
Proceeds from sales of long-term U.S. government obligations -- -- 504,968 188,367
<CAPTION>
Janus Janus
Venture Worldwide
For the fiscal year ended October 31 Fund Fund
(all numbers in thousands) 1999 1998 1999 1998
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (7,414) $ (3,380) $ 13,351 $ 61,934
Net realized gain/(loss) from investment transactions 305,718 88,939 842,489 (331,717)
Change in unrealized net appreciation or depreciation
of investments and foreign currency 619,845 (64,755) 5,623,223 1,260,143
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 918,149 20,804 6,479,063 990,360
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- (52) (61,988) (50,801)
Dividends (in excess of net investment income)* -- (1,458) -- --
Net realized gain from investment transactions* (89,623) (193,117) -- (676,334)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (89,623) (194,627) (61,988) (727,135)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 166,902 172,993 11,534,834 8,757,202
Reinvested dividends and distributions 86,300 188,622 60,059 706,814
Shares repurchased (257,241) (404,265) (7,852,637) (6,153,476)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (4,039) (42,650) 3,742,256 3,310,540
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 824,487 (216,473) 10,159,331 3,573,765
Net Assets: 1,035,868 1,252,341 13,931,990 10,358,225
Beginning of period
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 1,860,355 $ 1,035,868 $ 24,091,321 $ 13,931,990
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 716,645 $ 720,685 $ 15,444,738 $ 11,702,483
Undistributed net investment income/(loss)* -- -- 11,268 61,968
Undistributed net realized gain/(loss) from investments* 297,970 89,289 484,853 (359,700)
Unrealized appreciation of investments and foreign currency 845,740 225,894 8,150,462 2,527,239
- ---------------------------------------------------------------------------------------------------------------------------------
$ 1,860,355 $ 1,035,868 $ 24,091,321 $ 13,931,990
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 2,581 3,296 226,979 204,904
Reinvested distributions 1,550 3,904 1,277 18,812
- ---------------------------------------------------------------------------------------------------------------------------------
Total 4,131 7,200 228,256 223,716
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (4,192) (7,687) (154,582) (146,793)
Net Increase/(Decrease) in Fund Shares (61) (487) 73,674 76,923
Shares Outstanding, Beginning of Period 20,797 21,284 335,568 258,645
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 20,736 20,797 409,242 335,568
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities
(excluding short-term securities):
Purchases of securities $ 1,329,844 $ 988,045 $ 15,664,200 $ 11,468,001
Proceeds from sales of securities 1,332,811 1,284,642 11,860,384 10,368,469
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.
62 and 63 Janus Equity Funds / October 31, 1999
<PAGE>
Financial | Highlights
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 27.97 $ 29.36 $ 26.65 $ 23.37 $ 19.62
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- (.02) .15 .31 .16
Net gains or (losses) on securities
(both realized and unrealized) 15.63 3.70 5.69 4.23 3.99
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 15.63 3.68 5.84 4.54 4.15
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- (.23) (.21) (.13) (.01)
Dividends (in excess of net investment income) -- -- -- -- --
Distributions (from capital gains) (.82) (4.84) (2.92) (1.13) (.39)
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.82) (5.07) (3.13) (1.26) (.40)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 42.78 $ 27.97 $ 29.36 $ 26.65 $ 23.37
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 56.75% 15.12% 24.18% 20.31% 21.62%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 35,834,730 $ 20,721,262 $ 19,029,334 $ 15,313,180 $ 11,962,970
Average Net Assets for the Period (in thousands) $ 28,993,305 $ 20,777,322 $ 17,515,216 $ 13,753,157 $ 10,559,806
Ratio of Gross Expenses to Average Net Assets(1) 0.85% 0.87% 0.87% 0.86% 0.87%
Ratio of Net Expenses to Average Net Assets(1) 0.84% 0.86% 0.86% 0.85% 0.86%
Ratio of Net Investment Income/(Loss)
to Average Net Assets (0.14%) -- 0.85% 0.91% 1.25%
Portfolio Turnover Rate 63% 70% 132% 104% 118%
<CAPTION>
For a share outstanding throughout Janus Balanced Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 17.22 $ 16.73 $ 15.20 $ 13.72 $ 12.17
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .42 .33 .36 .33 .61
Net gains or (losses) on securities
(both realized and unrealized) 4.69 2.00 2.88 2.22 1.52
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 5.11 2.33 3.24 2.55 2.13
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.43) (.35) (.36) (.26) (.58)
Dividends (in excess of net investment income) -- -- -- -- --
Distributions (from capital gains) (.11) (1.49) (1.35) (.81) --
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.54) (1.84) (1.71) (1.07) (.58)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.79 $ 17.22 $ 16.73 $ 15.20 $ 13.72
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 29.89% 15.48% 23.38% 19.39% 18.26%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,929,769 $ 830,049 $ 360,159 $ 207,044 $ 124,545
Average Net Assets for the Period (in thousands) $ 1,953,809 $ 536,524 $ 283,220 $ 158,607 $ 107,259
Ratio of Gross Expenses to Average Net Assets(1) .92% 1.03% 1.12% 1.23% 1.35%
Ratio of Net Expenses to Average Net Assets(1) .91% 1.01% 1.10% 1.21% 1.32%
Ratio of Net Investment Income/(Loss)
to Average Net Assets 2.37% 2.34% 2.63% 2.35% 2.52%
Portfolio Turnover Rate 64% 73% 139% 151% 185%
</TABLE>
(1) See "Explanation of the Charts and Tables."
See Notes to Financial Statements.
64 Janus Equity Funds / October 31, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Enterprise Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 32.33 $ 30.86 $ 31.19 $ 27.14 $ 24.43
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- -- -- -- .52
Net gains or (losses) on securities
(both realized and unrealized) 30.61 3.43 .95 5.85 3.09
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 30.61 3.43 .95 5.85 3.61
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- -- (.52)
Dividends (in excess of net investment income) -- -- -- -- --
Distributions (from capital gains) (4.30) (1.96) (1.28) (1.80) (.38)
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (4.30) (1.96) (1.28) (1.80) (.90)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 58.64 $ 32.33 $ 30.86 $ 31.19 $ 27.14
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 104.09% 11.79% 3.31% 22.43% 15.46%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,329,698 $ 558,999 $ 551,828 $ 732,003 $ 459,370
Average Net Assets for the Period (in thousands) $ 1,126,839 $ 551,467 $ 613,784 $ 596,313 $ 407,791
Ratio of Gross Expenses to Average Net Assets(1) 0.98% 1.08% 1.07% 1.14% 1.26%
Ratio of Net Expenses to Average Net Assets(1) 0.95% 1.06% 1.04% 1.12% 1.23%
Ratio of Net Investment Income/(Loss)
to Average Net Assets (0.67%) (0.67%) (0.61%) (0.78%) 0.02%
Portfolio Turnover Rate 98% 134% 111% 93% 194%
<CAPTION>
For a share outstanding throughout Janus Equity Income Fund
each fiscal year or period ended October 31 1999 1998 1997 1996(2)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 15.59 $ 13.98 $ 11.29 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .14 .05 .09 .07
Net gains or (losses) on securities
(both realized and unrealized) 7.17 2.47 3.11 1.25
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 7.31 2.52 3.20 1.32
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.15) (.03) (.12) (.03)
Dividends (in excess of net investment income) -- -- -- --
Distributions (from capital gains) (.18) (.88) (.39) --
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.33) (.91) (.51) (.03)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 22.57 $ 15.59 $ 13.98 $ 11.29
- ------------------------------------------------------------------------------------------------------------------------------
Total Return* 47.22% 19.21% 29.46% 13.20%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 781,319 $ 200,782 $ 74,325 $ 30,429
Average Net Assets for the Period (in thousands) $ 571,009 $ 133,613 $ 46,054 $ 21,424
Ratio of Gross Expenses to Average Net Assets**(1) 1.02% 1.21% 1.48% 1.79%
Ratio of Net Expenses to Average Net Assets**(1) 1.01% 1.18% 1.45% 1.71%
Ratio of Net Investment Income/(Loss)
to Average Net Assets** 0.81% 0.41% 0.62% 3.09%
Portfolio Turnover Rate** 81% 101% 180% 325%
</TABLE>
(1) See "Explanation of the Charts and Tables."
(2) Fiscal period June 29, 1996 (inception) to October 31, 1996.
*Total return not annualized for periods of less than one full year.
**Annualized for periods of less than one full year.
See Notes to Financial Statements.
Janus Equity Funds / October 31, 1999 65
<PAGE>
Financial | Highlights (continued)
Janus Global
For a share outstanding throughout Life Sciences Fund
the period ended October 31 1999(2)
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 10.00
- --------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --
Net gains or (losses) on securities
(both realized and unrealized) 1.97
- --------------------------------------------------------------------------------
Total from Investment Operations 1.97
- --------------------------------------------------------------------------------
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 $ 11.97
- --------------------------------------------------------------------------------
Total Return* 19.70%
- --------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 344,436
Average Net Assets for the Period (in thousands) $ 227,552
Ratio of Gross Expenses to Average Net Assets**(1) 1.21%
Ratio of Net Expenses to Average Net Assets**(1) 1.19%
Ratio of Net Investment Income/(Loss)
to Average Net Assets** (0.41%)
Portfolio Turnover Rate** 235%
Janus Global
For a share outstanding throughout Technology Fund
the period ended October 31 1999(2)
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 10.00
- --------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --
Net gains or (losses) on securities
(both realized and unrealized) 10.95
- --------------------------------------------------------------------------------
Total from Investment Operations 10.95
- --------------------------------------------------------------------------------
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 $ 20.95
- --------------------------------------------------------------------------------
Total Return* 109.40%
- --------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 3,334,514
Average Net Assets for the Period (in thousands) $ 1,265,552
Ratio of Gross Expenses to Average Net Assets**(1) 1.04%
Ratio of Net Expenses to Average Net Assets**(1) 1.02%
Ratio of Net Investment Income/(Loss)
to Average Net Assets** (0.11%)
Portfolio Turnover Rate** 31%
(1) See "Explanation of the Charts and Tables."
(2) Fiscal period from December 31, 1998 (inception) to October 31, 1999.
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
See Notes to Financial Statements.
66 Janus Equity Funds / October 31, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Growth and Income Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 26.45 $ 25.07 $ 20.05 $ 18.13 $ 14.69
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .26 .08 .01 .16 .11
Net gains or (losses) on securities
(both realized and unrealized) 12.27 3.72 6.98 4.01 3.43
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 12.53 3.80 6.99 4.17 3.54
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.27) (.04) (.11) (.08) (.10)
Dividends (in excess of net investment income) -- -- -- -- --
Distributions (from capital gains) (1.87) (2.38) (1.86) (2.17) --
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (2.14) (2.42) (1.97) (2.25) (.10)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 36.84 $ 26.45 $ 25.07 $ 20.05 $ 18.13
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 49.59% 16.73% 37.78% 25.56% 24.20%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 5,836,885 $ 2,819,079 $ 1,888,999 $ 1,033,183 $ 582,963
Average Net Assets for the Period (in thousands) $ 4,375,277 $ 2,478,899 $ 1,415,563 $ 773,343 $ 498,442
Ratio of Gross Expenses to Average Net Assets(1) 0.92% 0.96% 0.98% 1.05% 1.19%
Ratio of Net Expenses to Average Net Assets(1) 0.90% 0.94% 0.96% 1.03% 1.17%
Ratio of Net Investment Income/(Loss)
to Average Net Assets 0.37% 0.33% 0.30% 0.70% 1.11%
Portfolio Turnover Rate 43% 95% 127% 153% 195%
<CAPTION>
For a share outstanding throughout Janus Mercury Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.77 $ 18.65 $ 18.20 $ 17.38 $ 14.12
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- (.01) (.01) .14 .16
Net gains or (losses) on securities
(both realized and unrealized) 16.89 4.07 2.82 2.74 3.37
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 16.89 4.06 2.81 2.88 3.53
- ------------------------------------------------------------------------------------------------------------------------------
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 $ 35.65 $ 20.77 $ 18.65 $ 18.20 $ 17.38
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 86.02% 24.75% 17.07% 18.18% 25.53%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 9,059,883 $ 2,368,077 $ 1,971,049 $ 2,002,350 $ 1,520,768
Average Net Assets for the Period (in thousands) $ 5,258,427 $ 2,103,414 $ 2,045,901 $ 1,838,593 $ 1,116,377
Ratio of Gross Expenses to Average Net Assets(1) 0.93% 0.97% 0.98% 1.02% 1.14%
Ratio of Net Expenses to Average Net Assets(1) 0.91% 0.94% 0.96% 1.00% 1.12%
Ratio of Net Investment Income/(Loss)
to Average Net Assets (0.39%) (0.33%) 0.21% 0.45% 0.50%
Portfolio Turnover Rate 89% 105% 157% 177% 201%
</TABLE>
(1) See "Explanation of the Charts and Tables."
See Notes to Financial Statements.
Janus Equity Funds / October 31, 1999 67
<PAGE>
Financial | Highlights (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Olympus Fund
each fiscal year or period ended October 31 1999 1998 1997 1996(1)
- ------------------------------------------------------------------------------------------------------------------------------
<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 .02 -- .04 .13
Net gains or (losses) on securities
(both realized and unrealized) 19.15 4.05 3.64 2.73
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 19.17 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 $ 40.87 $ 21.70 $ 18.41 $ 14.86
- ------------------------------------------------------------------------------------------------------------------------------
Total Return* 88.34% 23.10% 24.98% 23.83%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 3,887,448 $ 947,494 $ 615,651 $ 432,375
Average Net Assets for the Period (in thousands) $ 2,268,894 $ 774,434 $ 517,424 $ 276,006
Ratio of Gross Expenses to Average Net Assets**(2) 0.95% 1.01% 1.06% 1.17%
Ratio of Net Expenses to Average Net Assets**(2) 0.93% 0.98% 1.03% 1.15%
Ratio of Net Investment Income/(Loss)
to Average Net Assets** 0.06% (0.21%) 0.26% 1.64%
Portfolio Turnover Rate** 91% 123% 244% 303%
<CAPTION>
For a share outstanding throughout Janus Overseas Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 17.95 $ 17.94 $ 14.81 $ 11.58 $ 10.36
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- .08 .04 .10 .12
Net gains or (losses) on securities
(both realized and unrealized) 7.49 .54 3.39 3.34 1.10
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 7.49 .62 3.43 3.44 1.22
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.08) (.10) (.04) (.11) --
Dividends (in excess of net investment income) (.01) -- -- -- --
Distributions (from capital gains) -- (.51) (.26) (.10) --
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.09) (.61) (.30) (.21) --
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 25.35 $ 17.95 $ 17.94 $ 14.81 $ 11.58
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 41.77% 3.55% 23.56% 30.19% 11.78%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 5,639,980 $ 3,889,098 $ 3,205,197 $ 772,630 $ 110,866
Average Net Assets for the Period (in thousands) $ 4,577,552 $ 3,948,710 $ 2,093,370 $ 335,098 $ 77,668
Ratio of Gross Expenses to Average Net Assets(2) 0.92% 0.96% 1.03% 1.26% 1.76%
Ratio of Net Expenses to Average Net Assets(2) 0.91% 0.94% 1.01% 1.23% 1.73%
Ratio of Net Investment Income/(Loss)
to Average Net Assets (0.03%) 0.58% 0.81% 0.73% 0.36%
Portfolio Turnover Rate 92% 105% 72% 71% 188%
</TABLE>
(1) Fiscal period from December 29, 1995 (inception) to October 31, 1996.
(2) See "Explanation of the Charts and Tables."
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
See Notes to Financial Statements.
68 Janus Equity Funds / October 31, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Special Situations Fund
each fiscal year or period ended October 31 1999 1998 1997(1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 14.57 $ 14.08 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- -- --
Net gains or (losses) on securities
(both realized and unrealized) 8.22 1.15 4.08
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 8.22 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 $ 22.75 $ 14.57 $ 14.08
- ------------------------------------------------------------------------------------------------------------------------------
Total Return* 56.54% 8.49% 40.80%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,196,978 $ 786,317 $ 333,777
Average Net Assets for the Period (in thousands) $ 1,000,549 $ 716,123 $ 168,215
Ratio of Gross Expenses to Average Net Assets**(2) 1.00% 1.08% 1.20%
Ratio of Net Expenses to Average Net Assets**(2) 0.98% 1.05% 1.18%
Ratio of Net Investment Income/(Loss)
to Average Net Assets** (0.76%) (0.49%) (0.08%)
Portfolio Turnover Rate** 104% 117% 146%
<CAPTION>
For a share outstanding throughout Janus Twenty Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 42.98 $ 35.16 $ 31.90 $ 30.12 $ 24.24
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .21 .12 (.09) .37 .01
Net gains or (losses) on securities
(both realized and unrealized) 26.97 12.26 8.85 6.68 5.94
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 27.18 12.38 8.76 7.05 5.95
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.14) (.10) (.18) -- (.07)
Dividends (in excess of net investment income) -- -- -- -- --
Distributions (from capital gains) (.30) (4.46) (5.32) (5.27) --
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.44) (4.56) (5.50) (5.27) (.07)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 69.72 $ 42.98 $ 35.16 $ 31.90 $ 30.12
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 63.51% 40.58% 31.65% 27.59% 24.67%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 28,793,112 $ 11,254,870 $ 5,871,070 $ 3,937,444 $ 2,995,751
Average Net Assets for the Period (in thousands) $ 22,206,982 $ 8,025,121 $ 4,989,616 $ 3,385,561 $ 2,716,278
Ratio of Gross Expenses to Average Net Assets(2) 0.88% 0.91% 0.93% 0.93% 1.00%
Ratio of Net Expenses to Average Net Assets(2) 0.87% 0.90% 0.91% 0.92% 0.99%
Ratio of Net Investment Income/(Loss)
to Average Net Assets 0.40% 0.39% 0.33% 0.67% 0.62%
Portfolio Turnover Rate 40% 54% 123% 137% 147%
</TABLE>
(1) Fiscal period from December 31, 1996 (inception) to October 31, 1997.
(2) See "Explanation of the Charts and Tables."
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
See Notes to Financial Statements.
Janus Equity Funds / October 31, 1999 69
<PAGE>
Financial | Highlights (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Venture Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 49.81 $ 58.84 $ 57.16 $ 59.53 $ 52.86
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- (.09) .16 -- .05
Net gains or (losses) on securities
(both realized and unrealized) 44.31 .43 6.80 5.09 9.49
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 44.31 .34 6.96 5.09 9.54
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- (.01) (.03)
Dividends (in excess of net investment income) -- (.07) -- -- --
Distributions (from capital gains) (4.41) (9.30) (5.28) (7.45) (2.84)
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (4.41) (9.37) (5.28) (7.46) (2.87)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 89.71 $ 49.81 $ 58.84 $ 57.16 $ 59.53
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 94.42% 1.07% 13.38% 9.28% 19.24%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,860,355 $ 1,035,868 $ 1,252,341 $ 1,741,316 $ 1,753,201
Average Net Assets for the Period (in thousands) $ 1,350,642 $ 1,174,220 $ 1,379,145 $ 1,822,801 $ 1,612,514
Ratio of Gross Expenses to Average Net Assets(1) 0.93% 0.94% 0.94% 0.89% 0.92%
Ratio of Net Expenses to Average Net Assets(1) 0.92% 0.93% 0.92% 0.88% 0.91%
Ratio of Net Investment Income/(Loss)
to Average Net Assets (0.55%) (0.29%) 0.11% (0.33%) 0.29%
Portfolio Turnover Rate 104% 90% 146% 136% 113%
<CAPTION>
For a share outstanding throughout Janus Worldwide Fund
each fiscal year ended October 31 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 41.52 $ 40.05 $ 34.60 $ 27.65 $ 27.00
- ------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .02 1.26 (.08) .49 .81
Net gains or (losses) on securities
(both realized and unrealized) 17.51 3.01 7.73 7.79 1.39
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 17.53 4.27 7.65 8.28 2.20
- ------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.18) (1.35) (.15) (.26) (.54)
Dividends (in excess of net investment income) -- -- -- -- --
Distributions (from capital gains) -- (1.45) (2.05) (1.07) (1.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.18) (2.80) (2.20) (1.33) (1.55)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 58.87 $ 41.52 $ 40.05 $ 34.60 $ 27.65
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 42.33% 11.40% 23.34% 31.00% 8.89%
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 24,091,321 $ 13,931,990 $ 10,358,225 $ 4,467,185 $ 1,804,354
Average Net Assets for the Period (in thousands) $ 18,892,896 $ 13,078,350 $ 7,783,669 $ 2,953,495 $ 1,622,142
Ratio of Gross Expenses to Average Net Assets(1) 0.89% 0.92% 0.97% 1.02% 1.24%
Ratio of Net Expenses to Average Net Assets(1) 0.88% 0.90% 0.95% 1.01% 1.23%
Ratio of Net Investment Income/(Loss)
to Average Net Assets 0.07% 0.47% 0.65% 0.73% 0.99%
Portfolio Turnover Rate 68% 86% 79% 80% 142%
</TABLE>
(1) See "Explanation of the Charts and Tables."
See Notes to Financial Statements.
70 Janus Equity Funds / October 31, 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.
s Securities are valued at fair value determined in good faith under procedures
established by and under the supervision of the Trustees.
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 October 31, 1999:
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 10/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Fund
Adelphia Communications Corp.
<S> <C> <C> <C> <C> <C> <C> <C>
- Class A(1) 3,351,471 $ 177,265,469 1 $ 46 ($ 11) -- $ 183,074,049
Cadence Design Systems, Inc. -- -- 19,355,625 477,538,412 31,315,100 -- --
AMFM, Inc.(2) -- -- 8,455,000 267,797,306 99,049,602 -- --
Comcast Corp. - Special
Class A(3) 2,771,090 91,567,187 -- -- -- $1,055,923 2,025,778,191
Cytec Industries, Inc. -- -- 2,326,325 66,561,213 (6,639,292) -- 28,249,200
Federal-Mogul Corp. 27,000 1,040,548 917,540 55,157,019 (18,006,427) 42,183 90,075,512
Infinity Broadcasting Corp.
- Class A 9,141,225 208,035,129 243,400 5,846,273 54,467 -- 307,531,077
Linear Technology Corp.(4) -- -- 130,000 5,233,014 624,081 2,364,492 1,064,828,511
Maxim Integrated Products, Inc. 225,000 8,951,590 -- -- -- -- 985,289,981
Meredith Corp. -- -- 3,691,905 114,223,914 11,198,499 608,734 --
Robert Half International, Inc. 771,500 29,082,823 5,414,073 166,460,181 (34,009,305) -- --
Univision Communications, Inc.
- Class A 1,072,785 48,747,000 -- -- -- -- 450,037,957
- ------------------------------------------------------------------------------------------------------------------------------------
$ 564,689,746 $1,158,817,378 $ 83,586,714 $4,071,332 $5,134,864,478
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Enterprise Fund
EduTrek International, Inc. 400,000 $ 2,467,575 600,000 $ 3,842,575 $ 57,425 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Global Life
Sciences Fund
Cellegy Pharmaceuticals, Inc. 720,000 $ 4,500,000 -- -- -- -- $ 5,961,600
- ------------------------------------------------------------------------------------------------------------------------------------
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 1,991,056 $ 33,873,268 ($ 2,988,603) $ 250,708 --
Le Groupe Videotron Itee 4,386,650 70,719,261 -- -- -- 99,125 $ 62,628,085
- ------------------------------------------------------------------------------------------------------------------------------------
$ 104,592,529 33,873,268 ($ 2,988,603) $ 349,833 $ 62,628,085
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Adelphia Communications Corp. - Class A acquired Century Communications
Corp., effective 10/4/99.
(2) Name change from Chancellor Media Corp. to AMFM, Inc., effective 7/14/99.
(3) Adjusted for 2-for-1 stock split 5/6/99.
(4) Adjusted for 2-for-1 stock split 2/22/99.
Janus Equity Funds / October 31, 1999 71
<PAGE>
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 10/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Special Situations Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Bally Total Fitness Holding Corp. 155,000 $ 3,916,927 30,000 $ 232,948 $ 457,041 -- $ 48,668,813
Exide Corp. 2,137,235 35,505,206 -- -- -- $ 140,727 18,967,961
Magnum Hunter Resources, Inc. -- -- 100,000 600,000 (336,877) -- 5,682,445
Playboy Enterprises, Inc. 950,000 23,847,658 -- -- -- -- 24,343,750
SBS Broadcasting S.A.(5) 42,500 1,315,626 -- -- -- -- 49,352,187
- ------------------------------------------------------------------------------------------------------------------------------------
$ 64,585,417 $ 832,948 $ 120,164 $ 140,727 $147,015,156
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Twenty Fund
Excite, Inc. 827,000 $ 78,404,958 827,000 $ 78,404,958 $ 37,747,635 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Venture Fund
EduTrek International, Inc. 600,000 $ 3,900,000 100,000 $ 650,000 ($ 573,846) -- $ 406,250
Engineering Animation, Inc. 94,230 4,888,492 669,230 24,907,500 (14,233,138) -- --
Enzon, Inc. 1,952,500 20,207,543 -- -- -- -- 57,232,656
Globix Corp. 774,685 19,322,329 -- -- -- -- 27,888,660
pcOrder.com, Inc. - Class A 229,255 9,756,820 -- -- -- -- 11,348,122
School Specialty, Inc. 608,820 11,481,304 -- -- -- -- 14,202,521
- ------------------------------------------------------------------------------------------------------------------------------------
$ 69,556,488 $ 25,557,500 ($14,806,984) -- $111,078,209
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Worldwide Fund
Assa Abloy A.B. - Class B 2,776,784 $ 25,302,812 119,574 $ 3,808,126 $ 1,152,407 $1,412,010 $232,622,557
British Telecommunications PLC 8,417,455 143,202,821 8,417,455 143,202,821 (12,633,752) 1,059,902 --
Cellular Communications
International, Inc. -- -- 894,952 44,992,145 14,256,982 -- --
Getronics N.V 4,280,086 175,935,008 310,822 15,826,342 (297,861) 1,027,827 361,440,389
Securitas A.B. - Class B -- -- -- -- -- 1,622,074 234,166,486
Tecnost SpA 2,173,238 3,592,859 11,742,900 15,819,599 13,626,132 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 348,033,500 $223,649,033 $ 16,103,908 $5,121,813 $828,229,432
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(5) Name change from Scandinavian Broadcasting System S.A. to SBS Broadcasting
S.A., effective 12/28/98.
See Notes to Financial Statements.
72 Janus Equity Funds / October 31, 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 Global Life Sciences Fund, Janus Global Technology Fund,
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 or exposed to 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.
INITIAL PUBLIC OFFERINGS
The Funds may invest in initial public offerings (IPOs). IPOs and other
investment techniques may have a magnified performance impact on a fund
with a small asset base. The Funds may not experience similar performance
as their assets grow.
Janus Equity Funds / October 31, 1999 73
<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 October 31, 1999. Each of the Funds was
subject to the following schedule:
Average Daily Net Annual Rate
Fee Schedule Assets of Fund Percentage (%)
-----------------------------------------------------
Equity Funds First $300 Million .75
Next $200 Million .70
Over $500 Million .65
-----------------------------------------------------
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.
The Funds' expenses may be reduced by voluntary brokerage credits from an
unaffiliated broker. Such credits are included in Expense and Fee Offsets
in the Statement of Operations. Brokerage commissions paid to the
unaffiliated broker reduce certain transfer agent fees and expenses.
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 October
31, 1999, are noted below.
DST Securities, Inc. Fund
Commissions Expense
Paid* Reduction* DST Fees
- --------------------------------------------------------------------------------
Janus Fund $ 460,621 $ 345,465 $2,484,100
Janus Balanced Fund 3,274 2,456 203,702
Janus Enterprise Fund 917 688 242,389
Janus Equity Income Fund -- -- 121,077
Janus Global Life Sciences Fund -- -- 78,126
Janus Global Technology Fund -- -- 234,277
Janus Growth and Income Fund 33,857 25,393 643,452
Janus Mercury Fund 77,757 58,318 876,775
Janus Olympus Fund 6,177 4,633 426,795
Janus Overseas Fund 5,354 4,015 441,958
Janus Special Situations Fund 24,048 18,036 322,088
Janus Twenty Fund 58,260 43,695 4,255,046
Janus Venture Fund 878 659 322,810
Janus Worldwide Fund 197,404 148,053 1,352,663
- --------------------------------------------------------------------------------
* The difference between commissions paid to DST Securities, Inc. and expenses
reduced constituted commissions paid to an unaffiliated clearing broker.
74 Janus Equity Funds / October 31, 1999
<PAGE>
3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
generally accepted accounting principles. These differences are due to
differing treatments for items such as deferral of wash sales, foreign
currency transactions, net operating losses, and capital loss
carryforwards. Permanent items identified in the period ended October 31,
1999, have been reclassified among the components of net assets as follows:
Undistributed Undistributed
Net Investment Net Realized Paid-In
Income Gains and Losses Capital
- --------------------------------------------------------------------------------
Janus Fund $ 41,427,852 $(41,427,852) --
Janus Balanced Fund 60,084 (60,084) --
Janus Enterprise Fund 7,573,624 (7,573,624) --
Janus Equity Income Fund (153,688) 153,688 --
Janus Global Life Sciences Fund 774,640 30 (774,670)
Janus Global Technology Fund 1,201,168 (1,201,168) --
Janus Growth and Income Fund (78,684) 78,684 --
Janus Mercury Fund 20,626,305 (20,626,305) --
Janus Olympus Fund (452) 452 --
Janus Overseas Fund 1,446,066 287,859 (1,733,925)
Janus Special Situations Fund 7,613,638 (7,612,433) (1,205)
Janus Twenty Fund 137,466 (137,466) --
Janus Venture Fund 7,413,950 (7,413,950) --
Janus Worldwide Fund (2,063,070) 2,063,070 --
- --------------------------------------------------------------------------------
The Funds have elected to treat gains and losses on forward currency
contracts as capital gains and losses. Other foreign currency gains and
losses on debt instruments are treated as ordinary income for federal
income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The net capital loss carryover noted below as of October 31, 1999 is
available to offset future realized capital gains and thereby reduce
further taxable gains distributions. This carryover expires October 31,
2007. The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investment securities for federal income
tax purposes as of October 31, 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 -- $22,678,664,531 $13,530,433,577 $ (339,438,338) $13,190,995,239
Janus Balanced Fund -- 2,524,803,367 434,245,810 (70,320,447) 363,925,363
Janus Enterprise Fund -- 1,595,207,699 802,648,570 (47,444,365) 755,204,205
Janus Equity Income Fund -- 600,854,053 170,757,747 (16,677,716) 154,080,031
Janus Global Life Sciences Fund $ (5,781,052) 315,721,894 50,662,148 (10,260,161) 40,401,987
Janus Global Technology Fund -- 2,338,013,226 1,008,938,377 (29,899,917) 979,038,460
Janus Growth and Income Fund -- 4,019,469,034 1,852,618,478 (65,034,054) 1,787,584,424
Janus Mercury Fund -- 6,707,652,660 2,436,276,046 (118,192,514) 2,318,083,532
Janus Olympus Fund -- 2,555,186,086 1,328,159,562 (26,538,265) 1,301,621,297
Janus Overseas Fund -- 3,812,236,967 1,982,199,206 (64,074,087) 1,918,125,119
Janus Special Situations Fund -- 924,339,373 351,237,478 (74,954,592) 276,282,886
Janus Twenty Fund -- 18,137,146,828 10,775,411,493 (75,515,409) 10,699,896,084
Janus Venture Fund -- 1,054,410,116 891,819,777 (47,063,527) 844,756,250
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Worldwide Fund has elected to pass through to shareholders foreign
taxes under Section 853. Foreign taxes paid and foreign source income for
Janus Worldwide Fund are $13,303,460 and $100,197,989, respectively.
Janus Equity Funds / October 31, 1999 75
<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 October 31, 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.
76 Janus Equity Funds / October 31, 1999
<PAGE>
4. STATEMENT OF ASSETS AND LIABILITIES
This statement is often referred to as the "balance sheet." It lists the
assets and liabilities of the Funds on the last day of the reporting
period.
The Funds' assets are calculated by adding the value of the securities
owned, the receivable for securities sold but not yet settled, the
receivable for dividends 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.
Janus Equity Funds / October 31, 1999 77
<PAGE>
Explanations of | Charts and Tables (continued)
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.
The ratio of net investment income/(loss) 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.
78 Janus Equity Funds / October 31, 1999
<PAGE>
Report of | Independent Accountants
To the Trustees and Shareholders
of Janus Investment Fund
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Janus Fund, Janus Balanced Fund,
Janus Enterprise Fund, Janus Equity Income Fund, Janus Global Life Sciences
Fund, Janus Global Technology Fund, Janus Growth and Income Fund, Janus Mercury
Fund, Janus Olympus Fund, Janus Overseas Fund, Janus Special Situations Fund,
Janus Twenty Fund, Janus Venture Fund, and Janus Worldwide Fund (fourteen of the
portfolios constituting the Janus Investment Fund, hereafter referred to as the
"Funds") at October 31, 1999, and the results of each of their operations, the
changes in each of their net assets and the financial highlights for each of the
periods indicated, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards, which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
/s/ PricewaterhouseCoopers LLP
Denver, Colorado
December 2, 1999
Year 2000 | Discussion (unaudited)
Preparing for Year 2000 is a high priority for Janus Capital, which has
established a dedicated group to address this issue. Janus Capital has devoted
considerable internal resources and has engaged one of the foremost experts in
the field to help achieve Year 2000 readiness. Janus Capital does not anticipate
that Year 2000-related issues will have a material impact on its ability to
continue to provide the Funds with service at current levels; however, Janus
Capital cannot make any assurances that the steps it has taken to ensure Year
2000 readiness will be successful. In addition, there can be no assurance that
Year 2000 issues will not affect the companies in which the Funds invest or
worldwide markets and economies.
Janus Equity Funds / October 31, 1999 79
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80 Janus Equity Funds / October 31, 1999
<PAGE>
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Janus Equity Funds / October 31, 1999 81
<PAGE>
[LOGO] Janus
100 Fillmore Street
Denver, Colorado 80206-4923
1-800-525-3713
Funds distributed by Janus Distributors, Inc. Member NASD.
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