Janus | Income Funds
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2000 SEMIANNUAL REPORT
Janus Flexible Income Fund Janus Money Market Fund
Janus High-Yield Fund Janus Government Money Market Fund
Janus Federal Tax-Exempt Fund Janus Tax-Exempt Money Market Fund
Janus Short-Term Bond Fund
[LOGO] JANUS
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<PAGE>
Janus | Income Funds
TABLE OF CONTENTS
To Our Shareholders ......................................... 1
Portfolio Managers' Commentaries and Schedules of Investments
Janus Flexible Income Fund ............................. 2
Janus High-Yield Fund .................................. 7
Janus Federal Tax-Exempt Fund .......................... 11
Janus Short-Term Bond Fund ............................. 15
Janus Money Market Fund ................................ 18
Janus Government Money Market Fund ..................... 24
Janus Tax-Exempt Money Market Fund ..................... 25
Statements of Operations - Bond Funds ....................... 28
Statements of Assets and Liabilities -
Bond Funds ............................................. 29
Statements of Changes in Net Assets -
Bond Funds ............................................. 30
Financial Highlights - Bond Funds ........................... 31
Statements of Operations -
Money Market Funds ..................................... 33
Statements of Assets and Liabilities -
Money Market Funds ..................................... 34
Statements of Changes in Net Assets -
Money Market Funds ..................................... 35
Financial Highlights - Money Market Funds ................... 36
Notes to Schedules of Investments ........................... 41
Notes to Financial Statements ............................... 42
Explanation of Charts and Tables ............................ 45
[LOGO] JANUS
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To Our | Shareholders
[PHOTO]
James Craig
chief investment officer
Every so often, there's an event, often economic in nature, that takes the wind
right out of the market's sails. In 1994, there was the Mexican currency crisis.
In 1997, we had the Asian currency crisis. Both times, the fixed-income markets
experienced enormous volatility, not unlike the uncertainty of the past six
months. The point is, we tend to think of these events like the flu, meaning
they typically originate elsewhere. This time, however, the turmoil was a
product of circumstances - a highly unusual set of circumstances - right here at
home.
Our record economic expansion, now in its ninth year, has seen a budget deficit
transform into a budget surplus, enabling the government to pay off some $200
billion of its long-term debt before 2001. This in turn led to an announcement
in January that the Treasury Department's long-awaited buyback program would
soon go into effect and that new debt issuance would be significantly scaled
back.
Going on the assumption that tighter supplies would boost the value of Treasury
bonds already in circulation, investors declared open season on the longer end
of the market, pushing up prices on 10-year and 30-year bonds while yields
headed downward. When the dust settled, long-term rates had fallen below those
of shorter issues, a rare occurrence commonly referred to as the inversion of
the yield curve.
Meanwhile, economic growth, fueled by tight labor markets and the "wealth
effect" created by stock market gains, had continued at a rapid pace, with the
GDP hitting 7.3% in the fourth quarter. Bowing to inflation concerns, the
Federal Reserve Board took measured steps, raising short-term interest rates by
0.25% on three separate occasions. Whether these and two previous rate hikes
last summer are enough to slow growth to a more sustainable level still waits to
be seen. Our expectation is that rates likely have further to go and that
volatility in the bond market, as well as the equity market, may be a fixture
for the near future.
In light of these developments, we have taken a defensive posture in
anticipation that dislocations between Treasury and corporate yields will create
selected opportunities going forward. That said, few if any of our investment
decisions are based solely on economic developments, no matter how
unprecedented. As always, we aim to add value through rigorous fundamental
analysis, focusing on each issuer's merits one at a time.
In closing, I'd like to thank you for your continued confidence in Janus.
/s/ Jim Craig
James Craig
Past performance does not guarantee future results.
Janus Income Funds / April 30, 2000 1
<PAGE>
Janus | Flexible Income Fund
[PHOTO]
Ronald Speaker
portfolio manager
Janus Flexible Income Fund returned 0.59% for the six-month period ended April
30, 2000, compared with 1.51% for its benchmark, the Lehman Brothers
Government/Corporate Bond Index.(1)
In what has been one of the more difficult periods for the bond market in recent
history, the Fund's performance was clearly not up to expectations. Much of this
had to do with a confluence of events surrounding the broader economy. First
off, the U.S. continued to register robust economic growth, coupled with
record-low unemployment levels, substantial wage gains and a surge in energy
prices. Fearing renewed inflationary pressures, Federal Reserve Chairman Alan
Greenspan raised short-term interest rates in three 0.25% moves, which severely
hindered bond prices.
During the period, a significant event occurred that affected the corporate
bonds we typically emphasize. The U.S. Treasury Department announced its
intentions to utilize the federal budget surplus to buy back outstanding
Treasury debt, primarily in the long end of the maturity spectrum. This part of
the yield curve, 20 to 30 years in maturity, happens to be the most volatile,
and few investors were overweighted in these securities going into the buybacks.
The impact of this program was twofold. First, it caused an inversion of the
yield curve whereby safer two-year notes rose in yield from 5.78% to 6.67% while
30-year bonds declined in yield from 6.16% to 5.91%. Our position was in the
intermediate range, between five and 10 years, and thus we underperformed as
yields on those maturities rose while only yields on 30-year bonds declined.
The second effect was a change in the relationship of corporate bonds to
Treasury bonds, often referred to as the "spread." While the Treasury Department
was buying back debt in the 30-year part of the curve, corporations continued to
sell debt. As a result, Treasuries became more scarce and corporate bonds more
plentiful, causing spreads to widen and corporate debt to underperform
Treasuries of comparable maturity. The current spread of corporate bonds is at
historic levels and offers value to corporate bond investors. Whether this value
is realized depends on the appetite of the overall bond market and its
preference for Treasuries or corporate bonds going forward. That said, several
of our shorter-maturity investment-grade bonds outperformed, namely HealthSouth,
Safeway and Cox Communications. These bonds provided stability in a difficult
market environment.
On the downside, one notable disappointment was Conseco, a diversified insurance
and consumer finance company. Despite the upgrading of its debt from
below-investment grade to investment grade, what had been a strong performer for
us experienced an abrupt about-face. The company decided to sell its consumer
finance division, Green Tree Financial, after realizing its capital base would
not support the business following several asset writedowns. These and other
fundamental weaknesses proved insurmountable, and we liquidated the position.
In turn, the high-yield market proved difficult, as shifting risk preferences,
volatile equity markets, rising defaults and oversupply worked against price
stability. Despite this uncertainty, Hard Rock Hotel
Portfolio Asset Mix April 30, 2000 October 31, 1999
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Investment-Grade
Corporate Bonds/Warrants 43.4% 48.3%
High-Yield/High-Risk
Corporate Bonds 27.2% 26.7%
U.S. Treasury Notes 13.2% 9.5%
Foreign Dollar/
Non-Dollar Bonds 4.5% 4.5%
Preferred Stock 1.8% 1.6%
Cash & Cash Equivalents 9.9% 9.4%
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Fund Profile April 30, 2000 October 31, 1999
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Weighted Average Maturity 6.7 Yrs. 7.9 Yrs.
Average Modified Duration* 4.7 Yrs. 5.3 Yrs.
30-Day Average Yield** 8.08% 7.48%
Average Rating BBB- BBB+
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* A theoretical measure of price volatility.
** Yield will fluctuate.
(1) Both returns include reinvested dividends.
Past performance does not guarantee future results.
2 Janus Income Funds / April 30, 2000
<PAGE>
and Venetian Casinos in Las Vegas, two credits previously cited as
disappointments, demonstrated the confidence of our convictions. Hard Rock
returned to more normal levels of profitability following a management change
and an expansion program that temporarily hurt existing business. Venetian made
an impressive turnaround to strong operating profits following a
less-than-auspicious grand opening. Bookings and average room rates have risen
dramatically as it becomes the hotel of choice for highly desirable convention
business.
After such a tumultuous period, we have recently found ourselves in a more
reasonable position. As signs of economic slowdown begin to emerge, the Federal
Reserve is most likely at the latter stages of its tightening program.
Consequently, the short-end of the yield curve now offers more income potential
than at any other time in the last five years. Likewise, the investment-grade
market is experiencing a 12-year high in spreads, providing tremendous
opportunity for long-term holders of corporate bonds. Furthermore, the
double-digit yields of the high-yield market may prove enticing should stocks
continue to trade within a narrow range. Taken together, the bond market has
done a swift job of discounting the uncertainty, and the potential for recovery
is certainly compelling. Given that, we will maintain our conservative stance,
investing in select corporate bonds to capitalize on these historic spreads, as
well as shorter-term securities with attractive yields.
In closing, we'd like to thank you for continued investment in Janus Flexible
Income Fund.
Performance Overview
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Flexible Income Fund and the Lehman Brothers Government/Corporate Bond
Index. Janus Flexible Income Fund is represented by a shaded area of blue. The
Lehman Brothers Government/Corporate Bond Index is represented by a solid black
line. The "y" axis reflects the value of the investment. The "x" axis reflects
the computation periods from inception, July 7, 1987, through April 30, 2000.
The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Flexible Income Fund ($28,032) as compared to the Lehman
Brothers Government/Corporate Bond Index ($26,979).
Average Annual Total Return
for the periods ended April 30, 2000
One Year, (1.29%)
Five Year, 8.10%
Ten Year, 10.02%
Since 7/7/87*, 8.36%
Janus Flexible Income Fund - $28,032
Lehman Brothers
Government/Corporate
Bond Index - $26,979
*The Fund's inception date.
Source - Lipper, Inc. 2000.
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.
Investing in high-yield/high-risk securities may entail greater risk.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 73.9%
Automotive - Cars and Light Trucks - 1.3%
$ 14,750,000 DaimlerChrysler N.A. Holding Corp., 7.20%
company guaranteed notes, due 9/1/09 ..... $ 14,344,375
Beverages - Wine and Spirits - 0.8%
10,000,000 Joseph E. Seagram & Sons, Inc., 6.80%
company guaranteed notes, due 12/15/08 ... 9,062,500
Broadcast Services and Programming - 3.0%
35,000,000 AT&T Corp./Liberty Media Group, 7.875%
bonds, due 7/15/09 ....................... 33,468,750
Cable Television - 3.1%
3,000,000 Comcast UK Cable Partners, Ltd.
zero coupon, debentures, due 11/15/07 .... 2,842,500
5,000,000 Diamond Cable Communications PLC
zero coupon, senior discount notes
due 12/15/05 ............................. 4,700,000
11,000,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 ................ 10,601,250
Lenfest Communications, Inc.:
4,500,000 10.50%, senior subordinated notes
due 6/15/06 .............................. 4,950,000
12,000,000 7.625%, senior notes, due 2/15/08 ........ 11,460,000
34,553,750
Casino Hotels - 1.4%
$ 4,000,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 ....... $ 3,840,000
5,000,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 ... 5,100,000
7,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 ... 6,825,000
15,765,000
Casino Services - 0.8%
8,000,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04 ........ 8,720,000
Cellular Telecommunications - 1.4%
3,000,000 Nuevo Grupo Iusacell S.A. de C.V., 14.25%
senior notes, due 12/1/06+ ............... 3,135,000
10,000,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09+ .............. 10,150,000
4,444,000 Winstar Communications, Inc., 14.75%
senior discount notes, due 4/15/10+ ...... 1,988,690
15,273,690
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 3
<PAGE>
Janus | Flexible Income Fund
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Commercial Banks - 1.0%
$ 7,000,000 City National Bank, 6.375%
subordinated notes, due 1/15/08 .......... $ 6,090,000
5,000,000 Hudson United Bancorp, Inc., 8.20%
subordinated debentures, due 9/15/06 ..... 4,968,750
11,058,750
Commercial Services - 1.2%
13,000,000 Cendant Corp., 7.75%
notes, due 12/1/03 ....................... 12,756,250
Computer Services - 2.2%
2,500,000 Cooperative Computing, Inc., 9.00%
senior subordinated notes, due 2/1/08 .... 550,000
16,000,000 Electronic Data Systems Corp., 7.125%
notes, due 10/15/09 ...................... 15,780,000
8,000 Equinix, Inc., 13.00%
units, due 12/1/07+ ...................... 8,320,000
24,650,000
Computers - Micro - 0.8%
10,000,000 IBM Corp., 7.00%
debentures, due 10/30/25 ................. 9,337,500
Containers - Paper and Plastic - 0.3%
3,000,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02 ........ 3,015,000
Cosmetics and Toiletries - 3.0%
35,000,000 Procter & Gamble Co., 6.875%
unsubordinated notes, due 9/15/09 ........ 33,818,750
Cruise Lines - 0.4%
5,000,000 Royal Caribbean Cruises, Ltd., 7.00%
senior notes, due 10/15/07 ............... 4,418,750
Diversified Financial Services - 2.1%
General Electric Capital Corp.:
8,000,000 7.00%, notes, due 2/3/03 ................. 7,920,000
6,000,000 7.25%, notes, due 5/3/04 ................. 5,962,500
10,000,000 IBM Credit Corp., 7.00%
notes, due 1/28/02 ....................... 9,937,500
23,820,000
Diversified Operations - 0.5%
5,000,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09 ................. 5,137,500
Electric - Generation - 0.3%
3,648,589 Caithness Coso Funding Corp., 6.80%
secured notes, due 12/15/01 .............. 3,561,935
Electric - Integrated - 0.9%
9,000,000 El Paso Electric Co., 9.40%
first mortgage bonds, due 5/1/11 ......... 9,573,750
Fiber Optics - 0.4%
4,000,000 Williams Communications Group, Inc.
10.875%, senior notes, due 10/1/09 ....... 4,020,000
Finance - Auto Loans - 2.2%
Ford Motor Credit Co.:
10,000,000 7.25%, notes, due 1/15/03 ................ 9,912,500
15,000,000 7.375%, notes, due 10/28/09 .............. 14,531,250
24,443,750
Finance - Other Services - 1.3%
$ 5,000,000 Arkwright CSN Trust, 9.625%
notes, due 8/15/26+ ...................... $ 5,068,750
6,000,000 First American Capital Trust, 8.50%
company guaranteed notes, due 4/15/12 .... 5,842,500
3,500,000 Ono Finance PLC, 13.00%
company guaranteed notes, due 5/1/09+ .... 3,570,000
14,481,250
Food - Retail - 7.7%
25,000,000 Fred Meyer, Inc., 7.15%
company guaranteed notes, due 3/1/03 ..... 24,187,500
20,000,000 Kroger Co., 8.05%
company guaranteed notes, due 2/1/10 ..... 19,350,000
10,000,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 ..... 9,300,000
Safeway, Inc.:
15,000,000 5.875%, notes, due 11/15/01 .............. 14,587,500
7,500,000 7.50%, notes, due 9/15/09 ................ 7,200,000
11,000,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 ................ 10,917,500
85,542,500
Internet Software - 2.0%
4,270,000 Digital Island, Inc., 6.00%
convertible subordinated notes
due 2/15/05 .............................. 2,652,738
4,750,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ................. 4,809,375
15,714,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09 ................. 13,828,320
21,290,433
Leisure, Recreation and Gaming - 0.7%
8,500,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 .... 7,522,500
Life and Health Insurance - 1.0%
11,000,000 Delphi Financial Group, Inc., 8.00%
senior notes, due 10/1/03 ................ 10,601,250
Medical - Hospitals - 0.4%
5,000,000 Columbia/HCA Healthcare Corp., 8.36%
debentures, due 4/15/24 .................. 4,525,000
Medical Products - 0.6%
7,500,000 Dade International, Inc. - Series B, 11.125%
senior subordinated notes, due 5/1/06 .... 6,900,000
Multimedia - 3.0%
10,000,000 News America, Inc., 6.625%
senior notes, due 1/9/08 ................. 8,950,000
Time Warner, Inc.:
15,250,000 8.18%, notes, due 8/15/07 ................ 15,402,500
10,000,000 6.95%, company guaranteed notes
due 1/15/28 .............................. 8,675,000
33,027,500
Networking Products - 0.8%
7,000,000 Candescent Technologies Corp., 7.00%
convertible senior subordinated
debentures, due 5/1/03+ .................. 5,600,000
3,000,000 Concentric Network Corp., 12.75%
senior notes, due 12/15/07 ............... 3,210,000
8,810,000
See Notes to Schedules of Investments.
4 Janus Income Funds / April 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Oil Companies - Integrated - 0.7%
$ 8,500,000 Chevron Corp., 6.625%
notes, due 10/1/04 ....................... $ 8,245,000
Optical Supplies - 0.7%
8,000,000 Bausch & Lomb, Inc., 6.75%
notes, due 12/15/04 ...................... 7,630,000
Paint and Related Products - 0.9%
10,500,000 Sherwin-Williams Co., 6.85%
notes, due 2/1/07 ........................ 10,066,875
Physical Therapy and Rehabilitation Centers - 0.8%
HEALTHSOUTH Corp.:
7,000,000 9.50%, senior subordinated notes
due 4/1/01 ............................... 6,903,750
2,500,000 7.00%, senior notes, due 6/15/08 ......... 2,043,750
8,947,500
Pipelines - 0.4%
5,000,000 Enron Corp., 7.375%
bonds, due 5/15/19 ....................... 4,581,250
Recreational Centers - 0.8%
9,500,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07 .. 8,692,500
Retail - Discount - 2.6%
30,000,000 Wal-Mart Stores, Inc., 6.875%
senior notes, due 8/10/09 ................ 28,912,500
Retail - Leisure Products - 0.8%
9,000,000 Selmer Company, Inc., 11.00%
senior subordinated notes, due 5/15/05 ... 9,315,000
Retail - Restaurants - 0.6%
4,500,000 Perkins Family Restaurants L.P., 10.125%
senior notes, due 12/15/07 ............... 4,342,500
3,000,000 Romacorp, Inc., 12.00%
company guaranteed notes, due 7/1/06 ..... 2,400,000
6,742,500
Savings/Loan/Thrifts - 3.5%
Dime Bancorp, Inc.:
12,000,000 6.375%, senior notes, due 1/30/01 ........ 11,880,000
10,000,000 7.00%, senior notes, due 7/25/01 ......... 9,875,000
Golden State Holdings, Inc.:
5,000,000 7.00%, senior notes, due 8/1/03 .......... 4,581,250
10,000,000 7.125%, senior notes, due 8/1/05 ......... 8,775,000
4,000,000 People's Bank, 7.20%
subordinated notes, due 12/1/06 .......... 3,875,000
38,986,250
Telecommunication Services - 12.5%
$ 3,000,000 Adelphia Business Solutions, Inc., 12.00%
senior subordinated notes, due 11/1/07 ... $ 3,022,500
7,000,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09 ................. 6,545,000
Cox Communications, Inc.:
20,000,000 6.375%, notes, due 6/15/00 ............... 19,975,000
7,500,000 7.875%, notes, due 8/15/09 ............... 7,246,875
11,000,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ... 10,450,000
15,000,000 Global Crossing Holdings, Ltd., 9.50%
senior notes, due 11/15/09+ .............. 14,625,000
20,000,000 Level 3 Communications, Inc., 11.00%
senior notes, due 3/15/08+ ............... 19,350,000
NTL, Inc.:
9,045,000 12.75%, senior notes, due 4/15/05 ........ 9,293,738
4,000,000 zero coupon, senior notes, due 2/1/06 .... 3,680,000
10,500,000 Pegasus Media Communications, 12.50%
senior subordinated notes, due 7/1/05 .... 11,156,250
20,000,000 Qwest Communications International, Inc.
7.50%, senior notes, due 11/1/08 ......... 19,150,000
16,000,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09 ................. 14,800,000
139,294,363
Telephone - Integrated - 1.7%
7,000,000 GTE Northwest, Inc., 5.55%
debentures, due 10/15/08 ................. 6,011,250
8,000,000 NEXTLINK Communications, Inc., 12.50%
senior notes, due 4/15/06 ................ 8,360,000
4,000,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08** .............. 4,060,000
18,431,250
Telephone - Long Distance - 0.5%
5,500,000 Viatel, Inc., 11.50%
senior notes, due 3/15/09 ................ 4,730,000
Television - 1.5%
15,000,000 Fox/Liberty Networks L.L.C., 8.875%
senior notes, due 8/15/07 ................ 14,925,000
2,085,000 Pegasus Communications Corp., 12.50%
senior notes, due 8/1/07 ................. 2,168,400
17,093,400
Textile - Products - 0.7%
7,500,000 Collins & Aikman Floorcovering, Inc.
10.00%, senior subordinated notes
due 1/15/07 .............................. 7,303,125
Transportation - Services - 0.2%
2,000,000 Atlantic Express Transportation Corp.
10.75%, company guaranteed notes
due 2/1/04 ............................... 1,800,000
Wire and Cable Products - 0.4%
5,000,000 Anixter International, Inc., 8.00%
company guaranteed notes, due 9/15/03 .... 4,912,500
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $853,586,387) ................... 819,184,446
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 5
<PAGE>
Janus | Flexible Income Fund
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Foreign Bonds - 1.0%
Internet Software - 0.2%
EUR 3,000,000 Exodus Communications, Inc., 10.75%
senior notes, due 12/15/09** ............. $ 2,706,415
Telecommunication Services - 0.8%
GBP 2,000,000 Jazztel PLC, 13.25%
senior notes, due 12/15/09+ .............. 1,822,502
EUR 7,750,000 Level 3 Communications, Inc.
10.75%, senior notes, due 3/15/08**,+ .... 6,779,707
8,602,209
--------------------------------------------------------------------------------
Total Foreign Bonds (cost $12,747,391) ...................... 11,308,624
--------------------------------------------------------------------------------
Preferred Stock - 1.8%
Networking Products - 1.0%
11,352 Concentric Network Corp.
- Series B, 13.50% ....................... 11,579,040
Savings/Loan/Thrifts - 0.8%
350,000 Chevy Chase Savings Bank, 13.00% ............ 8,793,750
--------------------------------------------------------------------------------
Total Preferred Stock (cost $20,133,743) .................... 20,372,790
--------------------------------------------------------------------------------
Warrants - 0.2%
Finance - Other Services - 0.1%
5,000 Ono Finance PLC - expires 5/31/09*,+ ........ 700,000
Retail - Diversified - 0%
3,100 SpinCycle, Inc. - expires 5/1/05* ........... 0
Telecommunication Services - 0.1%
2,700 Versatel Telecom B.V. - expires 5/15/08*,** . 1,404,000
--------------------------------------------------------------------------------
Total Warrants (cost $0) .................................... 2,104,000
--------------------------------------------------------------------------------
U.S. Government Obligations - 13.2%
U.S. Treasury Notes:
$ 25,000,000 6.25%, due 8/31/00 ....................... 25,000,000
119,250,000 6.50%, due 2/15/10 ....................... 121,581,338
--------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $148,228,238) ....... 146,581,338
--------------------------------------------------------------------------------
Repurchase Agreement - 6.4%
70,700,000 ABN AMRO Securities, Inc., 5.90% dated
4/28/00, maturing 5/1/00, to be
repurchased at $70,734,761
collateralized by $32,596,289 in Fannie
Mae, 6.00%- 7.1562%, 12/25/08-2/25/30;
$7,132,269 in Federal Home Loan Bank
System, 6.74%, 7/6/09; $27,454,097 in
Freddie Mac, 6.00%-7.7775%,
12/15/07-12/15/28; $16,397,086 in Ginnie
Mae, 6.40%- 7.50%, 4/20/22-2/16/30; with
respective values of $27,205,360,
$6,898,582, $23,756,607 and $14,253,451
(cost $70,700,000) ....................... 70,700,000
--------------------------------------------------------------------------------
U.S. Government Agency - 3.0%
Federal Home Loan Bank System
32,700,000 5.60%, 5/1/00
(amortized cost $32,700,000) ............. 32,700,000
--------------------------------------------------------------------------------
Total Investments (total cost $1,138,095,759) - 99.5% ....... 1,102,951,198
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.5% 5,959,446
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 1,108,910,644
--------------------------------------------------------------------------------
Forward Currency Contracts, Open at April 30, 2000
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
--------------------------------------------------------------------------------
Euro 6/9/00 250,000 $ 227,975 $ 13,775
Euro 9/22/00 12,000,000 11,020,800 559,320
--------------------------------------------------------------------------------
Total $ 11,248,775 $ 573,095
See Notes to Schedules of Investments.
6 Janus Income Funds / April 30, 2000
<PAGE>
Janus | High-Yield Fund
[PHOTO]
Sandy Rufenacht
portfolio manager
For the six months ended April 30, 2000, Janus High-Yield Fund posted a 6.20%
return, beating its benchmark, the Lehman Brothers High-Yield Bond Index, which
returned 0.08%.(1) These results earned the Fund a top-decile ranking for the
12-month period ended April 30, 2000, placing it 32nd out of 347 high current
yield funds tracked by Lipper, Inc., a leading mutual fund rating company.(2)
The threat of higher interest rates and a choppy stock market combined to take
their toll on the high-yield market. Renewed inflation fears set the stage for
this challenging environment as overheated economic growth, record-low
unemployment levels, inflated stock values and surging energy prices pointed to
further rate hikes. At the same time, the Treasury Department's announced
buyback in January of longer-term government debt caused wider-than-usual
spreads, or differences in yields, between Treasuries and corporate bonds,
pushing Treasury prices up while corporates headed lower.
Another issue facing the high-yield market was the question of oversupply. Prior
to the year 2000 transition, corporations flooded the market with new supply in
a rush to meet their financing needs before year-end. Liquidity, too, was a
consideration as investors sold their bond inventory to raise cash. Taken
together, oversupply and shrinking demand hurt the performance of high-yield
bonds.
Against this backdrop, we took steps to insulate the Fund by raising our cash
position along with our weighting in yield-to-call bonds. These holdings trade
close to their call price, generating generous coupon payments until they are
retired. Diamond Cable Communications, for example, fit the profile, not only
boosting the Fund's income but maintaining its value as well. We also profited
from favorable investments in convertible bonds, realizing added capital
performance from issues such as telecom provider Level 3 Communications and
Exodus Communications, the leading player in Web-hosting services.
Our standouts for the period, however, were two positions that had previously
been underperformers. Venetian Casino and Hard Rock Hotel, two premier Las Vegas
destinations, serve to demonstrate the persistence of our research. Venetian ran
into problems when delays in its grand opening generated negative reports. The
misperceptions, most notably a supposed lack of traffic, continued even after
the complex had worked out its kinks. We knew otherwise and flew out to Las
Vegas, armed with counting devices and video cameras. Our findings clearly
dispelled the negative sentiment and have since been confirmed by Wall Street
analysts.
The story behind Hard Rock Hotel is similar and no less compelling. The bonds
had traded lower after a recent hotel expansion temporarily hurt casino traffic
and gaming revenues. Yet even after the hotel doubled in size, significantly
upgrading its amenities, the bonds continued to languish - again on erroneous
reports that traffic was down. Our research revealed that the hotel was in fact
overbooked by 60%, a key data point that has since led to its impressive
performance.
(continued on next page)
Fund Profile April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Weighted Average Maturity 5.4 Yrs. 6.0 Yrs.
Average Modified Duration* 3.9 Yrs. 4.2 Yrs.
30-Day Average Yield** 9.04% 9.76%
30-Day Average Yield
Without Reimbursement** 9.01% 9.74%
Average Rating B B-
--------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) Both returns include reinvested dividends.
(2) A high current yield fund is defined by Lipper, Inc. as "a fund that aims
at high (relative) current yield from fixed income securities, has no
quality or maturity restrictions, and tends to invest in lower grade debt
issues." The ranking is based upon total return, including reinvestment of
dividends and capital gains for the stated period.
Past performance does not guarantee future results.
Janus Income Funds / April 30, 2000 7
<PAGE>
Unfortunately, we had our share of disappointments, namely Cumulus Media, which
owns nearly 300 radio stations in the Midwest. Cumulus declined after a trade
publication reported on speculation of accounting irregularities at the company.
A meeting with Cumulus management revealed that the company's cash flow was
secure, with sufficient collateral in the form of radio station assets to retire
our holdings if necessary. We're confident the company's business remains
strong, so much so, that we used the pullback as an opportunity to bolster our
position.
Cable provider Galaxy also disappointed, falling victim to rising interest
rates. Fundamentally, Galaxy benefits from stable cash flows and the growing
demand for single-platform premium services, such as digital cable, telephony
and high-speed Internet access. This bodes well for the company, and therefore
we have maintained our position.
Going forward, we are increasingly encouraged by developments that indicate a
softening of supply. That said, all eyes will remain fixed on the economy and
the Federal Reserve. It appears as though the Fed is determined to slow both the
economy and the stock market. Should the central bank succeed, it could very
well signal more uncertainty for the high-yield market. Meanwhile, many
high-yield credits are trading at attractive valuations and yielding in excess
of 12%. Should stock market volatility continue, or even intensify, investors
may view high-yield bonds with newfound interest. In any case, we'll continue to
employ our rigorous company-by-company research, digging for the overlooked and
unrecognized that often allows us to capitalize on the market's inefficiencies.
In closing, I'd like to thank you for your continued investment in Janus
High-Yield Fund.
Performance Overview
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus High-Yield Fund and the Lehman Brothers High-Yield Bond Index. Janus
High-Yield Fund is represented by a shaded area of blue. The Lehman Brothers
High-Yield Bond Index is represented by a solid black line. The "y" axis
reflects the value of the investment. The "x" axis reflects the computation
periods from inception, December 29, 1995, through April 30, 2000. The upper and
lower right quadrants reflects the ending value of the hypothetical investment
in Janus High-Yield Fund ($15,574) as compared to the Lehman Brothers High-Yield
Bond Index ($12,811).
Average Annual Total Return
for the periods ended April 30, 2000
One Year, 2.39%
Since 12/29/95*, 10.75%
Janus High-Yield Fund - $15,574
Lehman Brothers
High-Yield Bond Index - $12,811
*The Fund's inception date.
Source - Lipper, Inc. 2000.
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.
Investing in high-yield/high-risk securities may entail greater risk.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 79.3%
Agricultural Operations - 1.1%
$ 3,000,000 Hines Horticulture, Inc., 11.75%
senior subordinated notes, due 10/15/05 .. $ 2,947,500
Building - Residential and Commercial - 0.5%
1,500,000 MDC Holdings, Inc., 8.375%
senior notes, due 2/1/08 ................. 1,286,250
Cable Television - 10.2%
4,000,000 Classic Cable, Inc., 10.50%
senior subordinated notes, due 3/1/10+ ... 3,940,000
3,000,000 Diamond Cable Communications PLC
zero coupon, senior discount notes
due 12/15/05 ............................. 2,820,000
3,000,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 .. 3,060,000
2,000,000 Fundy Cable, Ltd., 11.00%
senior notes, due 11/15/05 ............... 2,130,000
Cable Television - (continued)
Telewest Communications PLC:
$ 3,000,000 zero coupon, debentures, due 10/1/07 ..... $ 2,820,000
5,250,000 9.875%, senior notes, due 2/1/10+ ........ 5,145,000
United Pan-Europe Communications N.V.:
5,000,000 11.25%, senior notes, due 2/1/10+ ........ 4,650,000
3,000,000 11.50%, senior notes, due 2/1/10+ ........ 2,760,000
27,325,000
Casino Hotels - 6.1%
3,000,000 Majestic Star Casino L.L.C., 10.875%
company guaranteed notes, due 7/1/06 ..... 2,790,000
5,000,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 ....... 4,800,000
3,000,000 Station Casinos, Inc., 10.125%,
senior subordinated notes, due 3/15/06 ... 3,060,000
6,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 ... 5,850,000
16,500,000
See Notes to Schedules of Investments.
8 Janus Income Funds / April 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Casino Services - 2.4%
$ 6,000,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04 ........ $ 6,540,000
Cellular Telecommunication - 1.3%
3,500,000 Nextel Communications, Inc., 9.375%
senior notes, due 11/15/09 ............... 3,342,500
Computer Services - 2.1%
2,000,000 Cooperative Computing, Inc., 9.00%
senior subordinated notes, due 2/1/08 .... 440,000
5,000,000 Splitrock Services, Inc., 11.75%
company guaranteed notes, due 7/15/08 .... 5,300,000
5,740,000
Containers - Paper and Plastic - 3.7%
4,000,000 SF Holdings Group, Inc., zero coupon
senior discount notes, due 3/15/08 ....... 2,130,000
Stone Container Corp.:
3,000,000 10.75%, first mortgage notes, due 10/1/02 3,015,000
2,750,000 11.50%, senior notes, due 10/1/04 ........ 2,846,250
2,000,000 Sweetheart Cup Companies, Inc., 9.625%
senior notes, due 9/1/00 ................. 1,990,000
9,981,250
Distribution and Wholesale - 1.5%
4,000,000 Herff Jones, Inc., 11.00%
senior subordinated notes, due 8/15/05 ... 4,160,000
Diversified Operations - 1.5%
4,000,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09 ................. 4,110,000
Fiber Optics - 2.9%
6,000,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 12/15/09 ............... 5,715,000
2,000,000 NorthEast Optic Network, Inc., 12.75%
senior notes, due 8/15/08 ................ 1,940,000
7,655,000
Food - Retail - 1.2%
3,250,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 ................ 3,225,625
Gambling - Non-Hotel Casinos - 1.7%
1,500,000 Horseshoe Gaming Holding Corp., 8.625%
company guaranteed notes, due 5/15/09 .... 1,406,250
3,000,000 Louisiana Casino Cruises, Inc., 11.00%
notes, due 12/1/05 ....................... 3,030,000
4,436,250
Hotels and Motels - 0.9%
2,500,000 Host Marriott Travel Plazas, Inc., 9.50%
senior notes, due 5/15/05 ................ 2,581,250
Internet Software - 5.9%
3,000,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ................. 3,037,500
6,250,000 Globix Corp., 12.50%
senior notes, due 2/1/10+ ................ 5,500,000
PSINet, Inc.:
1,500,000 11.50%, senior notes, due 11/1/08 ........ 1,335,000
2,000,000 11.00%, senior notes, due 8/1/09 ......... 1,760,000
4,000,000 Verio, Inc., 13.50%
senior notes, due 6/15/04 ................ 4,210,000
15,842,500
Leisure, Recreation and Gaming - 3.4%
$ 10,250,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 .... $ 9,071,250
Manufacturing - 0.9%
3,000,000 Packaged Ice, Inc., 9.75%
company guaranteed notes, due 2/1/05 ..... 2,430,000
Music/Clubs - 1.5%
4,000,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08 ..... 4,000,000
Oil Companies - Exploration and Production - 1.1%
3,000,000 Forest Oil Corp., 10.50%
company guaranteed notes, due 1/15/06 .... 3,045,000
Quarrying - 0.7%
2,000,000 Oglebay Norton Co., 10.00%
senior subordinated notes, due 2/1/09 .... 1,840,000
Radio - 2.8%
3,500,000 Cumulus Media, Inc., 10.375%
company guaranteed notes, due 7/1/08 ..... 3,176,250
4,000,000 Radio One, Inc., 7.00%
company guaranteed notes, due 5/15/04 .... 4,240,000
7,416,250
Telecommunication Services - 13.5%
3,000,000 Alaska Communications Systems, Inc.
9.375%, company guaranteed notes
due 5/15/09 .............................. 2,745,000
1,500,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09 ................. 1,402,500
4,000,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ... 3,800,000
2,000,000 ITC DeltaCom, Inc., 11.00%
senior notes, due 6/1/07 ................. 2,000,000
Level 3 Communications, Inc.:
9,000,000 11.00%, senior notes, due 3/15/08+ ....... 8,707,500
13,000,000 zero coupon, senior discount notes
due 3/15/10+ ............................. 6,727,500
6,000,000 NTL, Inc., zero coupon
senior notes, due 2/1/06 ................. 5,520,000
2,000,000 RCN Corp., 10.00%
senior notes, due 10/15/07 ............... 1,795,000
4,000,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09 ................. 3,700,000
36,397,500
Telephone - Integrated - 3.5%
4,000,000 NEXTLINK Communications, Inc., 12.50%
senior notes, due 4/15/06 ................ 4,180,000
Versatel Telecom B.V.:
3,250,000 13.25%, senior notes, due 5/15/08 ........ 3,298,750
2,000,000 11.875%, senior notes, due 7/15/09 ....... 1,960,000
9,438,750
Telephone - Long Distance - 0.8%
2,000,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07 ........ 2,137,500
Television - 2.5%
2,000,000 Pegasus Communications Corp., 12.50%
senior notes, due 8/1/07 ................. 2,080,000
4,250,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 ... 4,590,000
6,670,000
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 9
<PAGE>
Janus | High-Yield Fund
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Textile - Products - 1.3%
$ 3,500,000 Collins & Aikman Floorcovering, Inc.
10.00%, senior subordinated notes
due 1/15/07 .............................. $ 3,408,125
Theaters - 0.4%
1,750,000 AMC Entertainment, Inc., 9.50%
senior subordinated notes, due 2/1/11 .... 953,750
Transportation Services - 1.0%
3,000,000 Atlantic Express Transportation Corp.
10.75%, company guaranteed notes
due 2/1/04 ............................... 2,700,000
Wire and Cable Products - 1.2%
3,000,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05 .... 3,105,000
Wireless Equipment - 1.7%
4,750,000 Nextel Partners, Inc., 11.00%
senior notes, due 3/15/10+ ............... 4,655,000
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $221,365,916) ................... 212,941,250
--------------------------------------------------------------------------------
Foreign Bond - 0.9%
EUR 2,750,000 Versatel Telecom International N.V., 11.25%
senior notes, due 3/30/10+
(cost $2,642,167) ........................ 2,468,351
--------------------------------------------------------------------------------
Preferred Stock - 0.5%
Radio - 0.5%
1,262 Cumulus Media, Inc. - Series A, 13.75%
(cost $1,349,524) ........................ 1,239,915
--------------------------------------------------------------------------------
Repurchase Agreement - 9.2%
$ 24,600,000 ABN AMRO Securities, Inc., 5.90% dated
4/28/00, maturing 5/1/00, to be
repurchased at $24,612,095
collateralized by $11,341,849 in Fannie
Mae, 6.00%- 7.1562%, 12/25/08-2/25/30;
$2,481,666 in Federal Home Loan Bank
System, 6.74%, 7/6/09; $9,552,628 in
Freddie Mac, 6.00%-7.7775%,
12/15/07-12/15/28; $5,705,351 in Ginnie
Mae, 6.40%-7.50%, 4/20/22-2/16/30; with
respective values of $9,466,080,
$2,400,355, $8,266,090 and $4,959,475
(cost $24,600,000) ....................... 24,600,000
--------------------------------------------------------------------------------
Short-Term Corporate Notes - 7.4%
Penzoil Corp.
10,000,000 6.30%, 5/17/00 ........................... 9,972,000
Union Pacific Corp.
10,000,000 6.45%, 5/2/00 ............................ 9,998,208
--------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $19,970,208) 19,970,208
--------------------------------------------------------------------------------
Total Investments (total cost $269,927,815) - 97.3% ......... 261,219,724
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 2.7% 7,306,612
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 268,526,336
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
10 Janus Income Funds / April 30, 2000
<PAGE>
Janus | Federal Tax-Exempt Fund
[PHOTO]
Darrell Watters
portfolio manager
Janus Federal Tax-Exempt Fund returned 2.16% for the six-month period ended
April 30, 2000. This compares with a 2.63% return for its benchmark, the Lehman
Brothers Municipal Bond Index.(1)
Uncertainty in the bond market, particularly the scope of the Treasury
Department's announced buyback in January of longer-term government debt, has
had a negative impact on the performance of tax-exempt securities. With long
bonds already in short supply, news of the program increased investor demand,
driving up prices dramatically. However, as yields dipped below shorter issues,
inverting the yield curve, longer issues still in circulation became even more
valuable. While we believe the extent of the buyback will be less than reports
indicate, there's simply no compelling reason to bet against the government.
By the same token, the broader landscape also had bond investors concerned. A
robust economy kept the Federal Reserve on inflation watch, and renewed fears,
heightened by rising energy prices, tight labor markets and the "wealth effect"
of elevated stock prices, prompted Fed Chairman Alan Greenspan to raise
short-term interest rates in November, February and March. An improving picture
overseas and the resulting boost to global economic growth could set the stage
for yet another rate hike when the Federal Reserve meets in May.
Turning to the Fund, we took steps to upgrade its overall credit quality in
response to increases in market risk. Traditionally, we've focused on
higher-rated, investment-grade issues with an average duration approaching that
of the Fund's index, but we were willing to explore the lower rungs of that
ladder. In light of recent economic developments, we've gone back to emphasizing
higher-quality, more liquid issues in which safety of principal is a primary
consideration. At the same time, we've maintained a smaller position in
financially sound, nonrated bonds, which offer opportunities for higher yields
and are typically less sensitive to rising interest rates. For these securities,
we tend to stay close to home, concentrating on Colorado double-tax-exempt bonds
and other credits in the Rocky Mountain region. By doing so, we can tap into the
area's strong economy and still maintain regular onsite contact, a compelling
benefit when evaluating municipal development projects.
One bond in particular that worked well for us was Sand Creek Metropolitan
District. Close to Denver International Airport, this local improvement
district, consisting of hotels, low-rise office buildings and warehouses, is
growing beyond all expectations. On top of that, the district is positioned to
begin paying down debt nearly a year and a half earlier than originally planned.
Land values, as well, are way ahead of projections, in the realm of 20%. As with
any local, nonrated issue, we deal only with the most reputable local brokerages
with long histories of successful tax-exempt offerings. Beyond that, we stay in
close touch with project managers, committee planners and builders, in addition
to patronizing the project's businesses in order to get a sense of the consumer
experience.
(continued on next page)
Portfolio Asset Mix April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Corporate Bonds -- 1.6%
Essential Service Revenue Bonds 71.1% 78.4%
General Obligation Bonds 25.0% 20.0%
--------------------------------------------------------------------------------
Fund Profile April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Weighted Average Maturity 18.9 Yrs. 13.9 Yrs.
Average Modified Duration* 10.5 Yrs. 7.9 Yrs.
30-Day Average Yield** 5.32% 5.48%
30-Day Average Yield
Without Reimbursement** 4.56% 5.22%
Average Rating AA2 AA2
--------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) Both returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Income Funds / April 30, 2000 11
<PAGE>
Regular contact, however, may not overcome short-term weakness in a particular
group. Such was the case with Boulder County Hospital Revenue Development, one
of our healthcare and hospital credits. Although its Longmont United Hospital
project is an excellent facility in a fast-growing tri-county area, the
hospital's administrators are taking on additional debt in order to help cover
fixed costs. We question this move as hospitals have little or no pricing power,
which limits their ability to increase fees. For now, we have maintained the
position, but with a watchful eye.
Going forward, I believe we still have a way to go with respect to the interest
rate environment. Rates are still low and therefore continue to accommodate
economic growth. Even when you consider the housing market, which can account
for nearly 20% of gross domestic product, I see no reason why mortgages just
north of 8% would slow the economy. Add other major purchases into the mix, cars
for example, and the case gets even stronger. Given that, I'm convinced rates
will rise, and, as a result, I'm approaching the near term with caution. The
Fund has built up a sizable cash position that, offered the right conditions, we
would prefer to put to work. But until we get a better sense of the rate
picture, I believe it would be in our shareholders' best interests to hold back
in anticipation of better opportunities ahead.
In closing, I'd like to thank you for your continued investment in Janus Federal
Tax-Exempt Fund.
Performance Overview
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Federal Tax-Exempt Fund and the Lehman Brothers Municipal Bond Index.
Janus Federal Tax-Exempt Fund is represented by a shaded area of blue. The
Lehman Brothers Municipal Bond Index is represented by a solid black line. The
"y" axis reflects the value of the investment. The "x" axis reflects the
computation periods from inception, May 3, 1993, through April 30, 2000. The
upper and lower right quadrants reflect the ending value of the hypothetical
investment in Janus Federal Tax-Exempt Fund ($13,465) as compared to the Lehman
Brothers Municipal Bond Index ($14,526).
Average Annual Total Return
for the periods ended April 30, 2000
One Year, (3.56%)
Five Year, 5.01%
Since 5/3/93*, 4.35%
Janus Federal Tax-Exempt Fund - $13,465
Lehman Brothers
Municipal Bond
Index - $14,526
*The Fund's inception date.
Source - Lipper, Inc. 2000.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Municipal Securities - 96.1%
Arizona - 1.1%
$ 1,000,000 Winslow Industrial Development Authority
Hospital Revenue, (Winslow Memorial
Hospital Project), 5.50%, 6/1/22 ......... $ 768,750
California - 1.5%
1,000,000 California Educational Facilities Authority
Revenue, (Stanford University), Series P
5.25%, 12/1/13 ........................... 1,003,750
100,000 California Statewide Communities
Development Authority Certificates
of Participation, Variable Rate
5.95%, 4/1/28 ............................ 100,000
1,103,750
Colorado - 39.8%
$ 3,000,000 Adams County Pollution Control Revenue
(Public Service of Colorado Project)
Series A, (MBIA Insured), 5.625%, 4/1/08 . $ 3,033,750
875,000 Bachelor Gulch Metropolitan District
6.80%, 12/1/06 ........................... 891,406
510,000 Black Hawk, 5.70%, 12/1/12 .................. 511,912
Black Hawk Device Tax Revenue:
30,000 6.00%, 12/1/03 ........................... 29,962
25,000 6.10%, 12/1/07 ........................... 24,813
50,000 6.00%, 12/1/09 ........................... 49,000
500,000 6.00%, 12/1/11 ........................... 500,625
650,000 5.50%, 12/1/12 ........................... 576,062
1,250,000 5.625%, 12/1/21 .......................... 1,012,500
1,000,000 Boulder County Hospital Revenue
(Longmont United Hospital Project)
5.60%, 12/1/17 ........................... 863,750
1,000,000 Castle Rock Golf Enterprise Revenue
6.50%, 12/1/16 ........................... 968,751
See Notes to Schedules of Investments.
12 Janus Income Funds / April 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Colorado - (continued)
Central Platte Valley Metropolitan District
(ACA Insured):
$ 1,000,000 5.15%, 12/1/13 ........................... $ 928,750
500,000 5.30%, 12/1/18 ........................... 450,000
Colorado Housing Finance Authority
(Single Family Program):
1,000,000 Series C-2, 7.10%, 5/1/15 ................ 1,032,500
930,000 Series B-3, 6.80%, 11/1/28** ............. 981,150
1,000,000 Series B-3, 6.50%, 10/1/29 ............... 1,032,500
1,000,000 Deer Creek Metropolitan District
7.15%, 12/1/12 ........................... 1,000,000
1,000,000 Denver Health and Hospital Authority
Healthcare Revenue
Series A, 5.375%, 12/1/18 ................ 815,000
Denver West Metropolitan District:
265,000 6.15%, 12/1/13 ........................... 265,994
750,000 6.50%, 6/1/16 ............................ 759,375
615,000 6.20%, 6/1/17 ............................ 607,312
2,000,000 E-470 Public Highway Authority Revenue
(MBIA Insured), Series A, 4.375%, 9/1/23 . 1,670,000
1,260,000 Eaglebend Affordable Housing Corp.
Multifamily Revenue, (Housing Project)
Series B, 7.40%, 7/1/21 .................. 1,217,475
1,000,000 Erie Water Enterprise Revenue, Series B
6.00%, 12/1/17 ........................... 1,066,250
20,000 Grand Lake Sales Tax Revenue, 5.50%
10/15/08 ................................. 18,225
25,000 Gunnison Valley Hospital Revenue, 5.20%
7/1/08 ................................... 22,438
Hyland Hills Metropolitan Parks and
Recreation District Special Revenue
Series A:
850,000 5.00%, 12/15/06 .......................... 839,375
500,000 6.75%, 12/15/15 .......................... 511,875
1,000,000 Mountain Village Metropolitan District, San
Miguel County, 8.10%, 12/1/11 ............ 1,076,094
1,835,000 Parker Jordan Metropolitan District
Series B, 6.10%, 12/1/17 ................. 1,656,087
65,000 Plains Metropolitan District, 5.85%, 12/1/05 65,670
Sand Creek Metropolitan District:
1,000,000 7.125%, 12/1/16 .......................... 973,750
1,000,000 6.625%, 12/1/17 .......................... 921,250
10,000 South Suburban Parks and Recreation
District Golf Course and Ice Arena
Facilities, 5.30%, 11/1/01 ............... 10,000
100,000 Telluride Excise Tax Revenue, 5.75%
12/1/12 .................................. 100,500
Telluride Housing Authority Housing
Revenue, (Shandoka Apartments Project):
100,000 7.50%, 6/1/12 ............................ 103,000
1,500,000 7.50%, 6/1/23 ............................ 1,548,750
Upper Cherry Creek Metropolitan District:
500,000 6.20%, 12/1/05 ........................... 501,875
400,000 6.75%, 12/1/11 ........................... 417,000
29,054,726
Georgia - 2.1%
1,400,000 Georgia Municipal Electric Authority Power
Revenue, (MBIA Insured), Series Y
6.50%, 1/1/17 ............................ 1,526,000
Illinois - 6.3%
$ 1,500,000 Cook County, Series B, (MBIA Insured)
5.375%, 11/15/18 ......................... $ 1,423,125
1,000,000 Metropolitan Pier and Exposition Authority
Hospitality Facilities Revenue
(McCormick Place Convention Center
Project), 7.00%, 7/1/26 .................. 1,132,500
2,000,000 Regional Transportation Authority
(FGIC Insured), 6.00%, 6/1/23 ............ 2,037,500
4,593,125
Maine - 3.2%
2,500,000 Maine Turnpike Authority Turnpike Revenue
(FGIC Insured), 5.50%, 7/1/30 ............ 2,337,500
Massachusetts - 1.1%
1,000,000 Massachusetts Turnpike Authority
Metropolitan Highway System Revenue
Series A, (AMBAC Insured), 5.00%, 1/1/39 . 835,000
Minnesota - 2.9%
440,000 Maplewood Multifamily Revenue, (Hazel
Ridge Project), Series B, 7.50%, 12/15/32 402,050
2,000,000 Northern Municipal Power Agency Electric
System Revenue, Series B, (AMBAC
Insured), 4.75%, 1/1/20 .................. 1,705,000
2,107,050
Mississippi - 1.0%
740,000 Harrison County School District State Aid
Capital Improvement, (FSA Insured)
6.25%, 8/1/02 ............................ 762,200
Missouri - 4.7%
Missouri Health and Educational
Facilities Authority:
400,000 Health Facilities Revenue
(Cox Health System), Variable Rate
5.80%, 6/1/15 ............................ 400,000
3,000,000 Educational Facilities Revenue
(Washington University), Series C
Variable Rate, 5.80%, 3/1/40 ............. 3,000,000
3,400,000
Montana - 1.4%
1,000,000 Montana State Board of Investment Workers
Compensation Program, (MBIA Insured)
6.875%, 6/1/20 ........................... 1,039,101
New Jersey - 6.7%
New Jersey State Turnpike Authority
Turnpike Revenue:
1,000,000 Series C, (FSA Insured), 6.50%, 1/1/16 ... 1,103,750
2,000,000 Series A, 5.50%, 1/1/25 .................. 1,912,500
2,000,000 Series A, (MBIA Insured), 5.50%, 1/1/30 .. 1,900,000
4,916,250
New Mexico - 4.7%
1,500,000 New Mexico Finance Authority Revenue
(Federal Highway Grant Anticipation)
Series A, (AMBAC Insured), 4.25%, 9/1/06 . 1,400,625
2,000,000 University of New Mexico University
Revenue, Series A, 6.00%, 6/1/21 ......... 2,052,500
3,453,125
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 13
<PAGE>
Janus | Federal Tax-Exempt Fund
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
New York - 4.5%
New York Dormitory Authority Revenue:
$ 1,000,000 (State University Educational Facilities)
Series A, 5.50%, 5/15/19 ................. $ 955,000
1,000,000 (City University System), (MBIA Insured)
5.50%, 7/1/24 ............................ 945,000
100,000 New York Energy Research and Development
Authority Pollution Control Revenue
(New York Electric), Series D, Variable
Rate, 5.95%, 10/1/29 ..................... 100,000
1,345,000 St. Lawrence County Industrial Development
Civic Facilities Revenue, (St. Lawrence
University Project), Series A, (MBIA
Insured), 5.375%, 7/1/18 ................. 1,272,706
3,272,706
North Carolina - 1.2%
1,000,000 North Carolina, (Public School Building)
4.60%, 4/1/14 ............................ 891,250
North Dakota - 1.9%
1,500,000 Grand Forks Senior Housing Revenue
(4000 Valley Square Project), 6.375%
12/1/34 .................................. 1,351,875
Ohio - 1.7%
1,250,000 Toledo-Lucas County Port Authority Port
Revenue, (Cargill Income Project)
5.90%, 12/1/15 ........................... 1,250,000
Oklahoma - 2.1%
500,000 McGee Creek Authority Water Revenue
(MBIA Insured), 6.00%, 1/1/23 ............ 510,625
1,000,000 Tulsa Industrial Authority Revenue
(University of Tulsa), Series A, (MBIA
Insured), 6.00%, 10/1/16 ................. 1,047,500
1,558,125
Oregon - 0.8%
600,000 Port of Portland Oregon Pollution Control
Revenue, (Reynolds Metals Project)
Variable Rate, 6.00%, 12/1/09 ............ 600,000
Pennsylvania - 0.7%
$ 500,000 Lehigh County General Purpose Authority
Revenue, (Lehigh Valley Health), Series B
Variable Rate, 5.95%, 7/1/29 ............. $ 500,000
Puerto Rico - 1.3%
1,000,000 Puerto Rico Commonwealth, (MBIA Insured)
5.375%, 7/1/25 ........................... 941,250
Texas - 2.8%
300,000 Lone Star Airport Improvement Authority
Series B-5, Variable Rate, 6.00%, 12/1/14 300,000
700,000 North Central Health Facilities Development
Corp. Revenue, (Presbyterian Medical
Center), Series C, Variable Rate, 6.00%
12/1/15 .................................. 700,000
1,000,000 Orange County Naval and Port District
Industrial Development Corp. Revenue
(North Star Steel Texas Project)
6.375%, 2/1/17 ........................... 1,017,500
2,017,500
Wisconsin - 1.3%
1,000,000 Wisconsin, Series D
4.25%, 5/1/05 ............................ 950,000
Wyoming - 1.3%
1,000,000 Sweetwater County Pollution Control
Revenue, (Idaho Power Co.), Series A
6.05%, 7/15/26 ........................... 983,750
--------------------------------------------------------------------------------
Total Investments (total cost $73,420,623) - 96.1% .......... 70,213,033
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 3.9% 2,867,682
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 73,080,715
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial Futures - Short
75 Contracts U.S. Treasury - 20-year bond
expires June 2000, principal amount
$7,264,381, value $7,242,187 cumulative
appreciation ............................. $ 22,194
--------------------------------------------------------------------------------
ACA - American Capital Access Corp.
AMBAC - American Municipal Bond Assurance Corp.
FGIC - Financial Guaranty Insurance Corp.
FSA - Financial Security Assurance Corp.
MBIA - Municipal Bond Insurance Association Corp.
See Notes to Schedules of Investments.
14 Janus Income Funds / April 30, 2000
<PAGE>
Janus | Short-Term Bond Fund
[PHOTO]
Sandy Rufenacht
portfolio manager
For the six months ended April 30, 2000, Janus Short-Term Bond Fund gained
2.17%, while its benchmark, the Lehman Brothers 1-3 Year Government/Corporate
Bond Index, returned 1.79%.(1)
Short-term bond markets were on edge for much of the period as the Federal
Reserve Board responded to inflation concerns with three interest rate hikes of
25 basis points. In turn, an "inverted" yield curve, brought on by the Treasury
Department's announced buyback in January of longer-term government debt, pushed
long yields below that of shorter issues. As prices on shorter issues fell,
short-term Treasuries and corporate bonds both experienced substantial pressure.
Amid this uncertainty, the Fund performed well. This can be attributed to our
flexible investment approach, which enabled us to stay on top of changing market
conditions. To cushion the impact of rising interest rates, we kept the Fund's
average maturity close to that of its index. We remained focused on the
highest-quality issuers with sound business models and solid domestic cash
flows. These included such blue chip names as General Electric, IBM and Ford.
As in the past, the Fund's performance benefited from select holdings in
high-yield corporate securities. The wider spreads, or differences in yields,
afforded by these bonds provide insulation against rising interest rates, while
their higher coupons boost total income. However, we take a lower-risk approach
to high-yield bonds, primarily weighting our holdings in yield-to-call bonds.
Because the market believes that these bonds will soon be retired or, in some
cases, acquired, they trade close to their call price. Although they offer
little potential for price appreciation, they generally maintain their value
while paying a generous coupon during down markets.
One example, and a new addition for us, is cable operator NTL. This New
York-based company is well on its way to becoming the largest cable provider in
the United Kingdom, winning customers by packaging value-added services, such as
telephony and high-speed Internet access. Implied yields on our holdings are
high compared to what the company can now command, leading us to believe they
will soon be redeemed. Another solid performer in the cable arena was Lenfest
Communications, the ninth largest cable system operator in the U.S. Lenfest
gained ground following the announced acquisition of the company by Comcast, the
nation's number three cable system.
Even though we were pleased with our overall performance, some of our holdings
fell short of expectations. One in particular, diversified insurance and
consumer finance company Conseco, lost ground when it was forced to write down
the value of its asset portfolio as a result of an eroding capital base. That,
combined with its decision to sell its recently acquired Conseco Finance
business, caused us to lose confidence in the fundamental soundness of the
company. Consequently, we liquidated our position at a loss.
(continued on next page)
Portfolio Asset Mix April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Investment-Grade
Corporate Bonds 81.8% 84.2%
High-Yield/High-Risk
Corporate Bonds 10.0% 13.2%
U.S. Treasury Notes 6.2% --
Cash & Cash Equivalents 2.0% 2.6%
--------------------------------------------------------------------------------
Fund Profile April 30, 2000 October 31, 1999
--------------------------------------------------------------------------------
Weighted Average Maturity 2.1 Yrs. 2.4 Yrs.
Average Modified Duration* 1.9 Yrs. 2.1 Yrs.
30-Day Average Yield** 6.54% 6.32%
30-Day Average Yield
Without Reimbursement** 6.05% 6.08%
Average Rating A A-
--------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) Both returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Income Funds / April 30, 2000 15
<PAGE>
Looking ahead, we anticipate further interest rate increases and market
volatility as the Fed continues its assault on inflation. Against this backdrop,
we will maintain a conservative approach, focusing on safeguarding the
underlying value of the Fund's assets while investing in higher-yielding
securities to meet current income needs. Until interest rates stabilize, we
foresee keeping the Fund's duration in line with its benchmark, pursuing
selected opportunities when our research identifies pricing inefficiencies.
In closing, I'd like to thank you for your continued investment in Janus
Short-Term Bond Fund.
Performance Overview
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Short-Term Bond Fund and the Lehman Brothers 1-3 Year
Government/Corporate Bond Index. Janus Short-Term Bond Fund is represented by a
shaded area of blue. The Lehman Brothers 1-3 Year Government/Corporate Bond
Index is represented by a solid black line. The "y" axis reflects the value of
the investment. The "x" axis reflects the computation periods from inception,
September 1, 1992, through April 30, 2000. The upper right quadrant reflects the
ending value of the hypothetical investment in Janus Short-Term Bond Fund
($14,535) as compared to the Lehman Brothers 1-3 Year Government/Corporate Bond
Index ($14,955).
Average Annual Total Return
for the periods ended April 30, 2000
One Year, 3.32%
Five Year, 5.90%
ince 9/1/92*, 5.00%
Janus Short-Term Bond Fund - $14,535
Lehman Brothers 1-3 Year
Government/Corporate
Bond Index - $14,955
*The Fund's inception date.
Source - Lipper, Inc. 2000.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. All returns reflect reinvested dividends. The
Fund's portfolio may differ significantly from the securities in the Index. The
Index is unmanaged and therefore does not reflect the cost of portfolio
management or trading.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Corporate Notes - 91.8%
Automotive - Truck Parts and Equipment - 1.2%
$ 1,500,000 TRW, Inc., 6.50%
senior notes, due 6/1/02 ................. $ 1,447,500
Cable Television - 2.2%
675,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 .. 688,500
1,850,000 Lenfest Communications, Inc., 10.50%
senior subordinated notes, due 6/15/06 ... 2,035,000
2,723,500
Chemicals - Specialty - 0.4%
500,000 NL Industries, Inc., 11.75%
senior notes, due 10/15/03 ............... 512,500
Computers - Micro - 3.2%
4,000,000 IBM Corp., 6.375%
notes, due 6/15/00 ....................... 4,000,000
Containers - Paper and Plastic - 1.2%
490,000 Container Corp. of America, 11.25%
senior notes, due 5/1/04 ................. 494,900
1,000,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02 ........ 1,005,000
1,499,900
Cosmetics and Toiletries - 0.6%
700,000 Colgate-Palmolive Co., 6.58%
notes, due 11/5/02 ....................... 686,000
Distribution and Wholesale - 0.3%
$ 350,000 Herff Jones, Inc., 11.00%
senior subordinated notes, due 8/15/05 ... $ 364,000
Diversified Financial Services - 12.6%
3,750,000 Associates Corp. N.A., 5.85%
senior notes, due 1/15/01 ................ 3,717,187
General Electric Capital Corp.:
6,000,000 7.00%, notes, due 3/1/02 ................. 5,962,500
2,100,000 7.25%, notes, due 5/3/04 ................. 2,086,875
IBM Credit Corp.:
1,400,000 6.64%, notes, due 10/29/01 1,387,750
2,500,000 7.00%, notes, due 1/28/02 ................ 2,484,375
15,638,687
Electric - Integrated - 4.2%
1,800,000 PECO Energy Co., 5.625%
first mortgage notes, due 11/1/01 ........ 1,750,500
3,500,000 Southern California Edison Co., 5.875%
notes, due 1/15/01 ....................... 3,469,375
5,219,875
Finance - Auto Loans - 8.3%
Ford Motor Credit Co.:
3,750,000 6.25%, notes, due 11/8/00 ................ 3,736,012
2,000,000 5.75%, notes, due 1/25/01 ................ 1,980,000
2,000,000 5.125%, notes, due 10/15/01 .............. 1,937,500
700,000 7.25%, notes, due 1/15/03 ................ 693,875
2,000,000 General Motors Acceptance Corp., 6.375%
notes, due 12/1/01 ....................... 1,970,000
10,317,387
See Notes to Schedules of Investments.
16 Janus Income Funds / April 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Finance - Credit Card - 1.2%
$ 1,500,000 American Express Credit Corp., 6.125%
senior notes, due 11/15/01 ............... $ 1,473,750
Finance - Investment Bankers/Brokers - 3.0%
3,750,000 Merrill Lynch & Company, Inc., 6.00%
notes, due 3/1/01 ........................ 3,717,188
Finance - Other Services - 2.4%
1,000,000 Mellon Financial Co., 6.30%
senior notes, due 6/1/00 ................. 999,630
2,000,000 Racers-Kellogg, 5.75%
bonds, due 2/2/01+ ....................... 1,982,500
2,982,130
Food - Flour and Grain - 1.9%
2,500,000 Archer-Daniels Midland Co., 6.25%
notes, due 5/15/03 ....................... 2,415,625
Food - Retail - 4.5%
1,500,000 Fred Meyer, Inc., 7.15%
company guaranteed notes, due 3/1/03 ..... 1,451,250
Safeway, Inc.:
2,000,000 5.75%, notes, due 11/15/00 ............... 1,985,000
2,250,000 5.875%, notes, due 11/15/01 .............. 2,188,125
5,624,375
Hotels and Motels - 2.2%
1,500,000 Host Marriott Travel Plazas, Inc., 9.50%
senior notes, due 5/15/05 ................ 1,548,750
1,250,000 Hyatt Equities L.L.C., 6.80%
notes, due 5/15/00+ ...................... 1,250,000
2,798,750
Medical - Drugs - 4.1%
2,500,000 SmithKline Beecham PLC, 6.75%
company guaranteed notes, due 10/30/01 ... 2,482,945
2,735,000 Warner-Lambert Co., 5.75%
notes, due 1/15/03 ....................... 2,629,018
5,111,963
Money Center Banks - 4.8%
3,000,000 Bank of America Corp., 6.65%
senior notes, due 5/1/01 ................. 2,981,250
3,000,000 Chase Manhattan Corp., 5.50%
notes, due 2/15/01 ....................... 2,962,500
5,943,750
Multimedia - 4.9%
3,750,000 Time Warner, Inc., 6.10%
pass-thru certificates, due 12/30/01+ .... 3,665,625
2,500,000 Walt Disney Co., 6.375%
senior notes, due 3/30/01 ................ 2,478,125
6,143,750
Pipelines - 2.0%
2,500,000 Enron Corp., 6.45%
notes, due 11/15/01 ...................... 2,459,375
Radio - 1.5%
1,784,000 Radio One, Inc., 7.00%
company guaranteed notes, due 5/15/04 .... 1,891,040
Retail - Discount - 2.8%
3,500,000 Wal-Mart Stores, Inc., 6.50%
notes, due 6/1/03 ........................ 3,425,625
Retail - Leisure Products - 0.4%
500,000 Selmer Company, Inc., 11.00%
senior subordinated notes, due 5/15/05 ... 517,500
Retail - Restaurants - 1.1%
$ 1,400,000 McDonald's Corp., 6.00%
notes, due 6/23/02 ....................... $ 1,361,500
Savings/Loan/Thrifts - 1.6%
2,000,000 Dime Bancorp, Inc., 7.00%
senior notes, due 7/25/01 ................ 1,975,000
Super-Regional Banks - 3.4%
3,750,000 NationsBank Corp., 5.75%
senior notes, due 3/15/01 ................ 3,707,813
525,000 Wells Fargo & Co., 5.75%
notes, due 2/1/03 ........................ 501,375
4,209,188
Telecommunication Equipment - 2.8%
3,500,000 Lucent Technologies, Inc., 6.90%
notes, due 7/15/01 ....................... 3,486,875
Telecommunication Services - 3.5%
2,000,000 Cox Communications, Inc., 6.375%
notes, due 6/15/00 ....................... 1,997,500
2,500,000 NTL, Inc., zero coupon
senior notes, due 2/1/06 ................. 2,300,000
4,297,500
Telephone - Integrated - 0.3%
300,000 NEXTLINK Communications, Inc., 12.50%
senior notes, due 4/15/06 ................ 313,500
Telephone - Local - 3.8%
3,000,000 Southwestern Bell Communications
Capital Corp., 6.375%
notes, due 4/1/01 ........................ 2,981,250
1,850,000 US West Communications, Inc., 6.375%
notes, due 10/15/02 ...................... 1,796,813
4,778,063
Telephone - Long Distance - 3.6%
4,000,000 MCI WorldCom, Inc., 6.125%
senior notes, due 8/15/01 ................ 3,945,000
500,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07 ........ 534,375
4,479,375
Television - 1.3%
1,500,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 ... 1,620,000
Wire and Cable Products - 0.5%
650,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05 .... 672,750
--------------------------------------------------------------------------------
Total Corporate Notes (cost $116,116,846) ................... 114,107,921
--------------------------------------------------------------------------------
U.S. Government Obligation - 6.2%
U.S. Treasury Note
8,000,000 5.875%, due 11/15/04 (cost $7,901,562) ... 7,785,600
--------------------------------------------------------------------------------
Short-Term Corporate Note - 1.7%
Household Finance Corp.
2,100,000 6.00%, 5/1/00
(amortized cost $2,100,000) .............. 2,100,000
--------------------------------------------------------------------------------
Total Investments (total cost $126,118,408) - 99.7% ......... 123,993,521
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.3% 352,288
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 124,345,809
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 17
<PAGE>
Janus | Money Market Funds
[PHOTO]
Sharon Pichler
portfolio manager
Janus Money Market Fund
Janus Tax-Exempt
Money Market Fund
[PHOTO]
J. Eric Thorderson
portfolio manager
Janus Government
Money Market Fund
For the 12 months ended April 30, 2000, Janus Money Market Fund ranked 78th out
of 356 funds in the U.S. Money Market category, as tracked by Lipper, Inc., a
leading mutual fund rating company.(1) During the same period, Janus Government
Money Market Fund ranked 26th out of 127 in the U.S. Government Money Market
Category,(2) while Janus Tax-Exempt Money Market Fund ranked 23rd out of 138 in
the U.S. Tax-Exempt Money Market category.(3)
In our last letter, we discussed the possibility that financial dislocations
associated with the year 2000 transition, including a larger-than-usual
temporary spike in interest rates and liquidity pressures, could lead to greater
volatility in the money markets. In an attempt to cushion the Funds from any
unusual market turbulence and, if necessary, to meet our shareholders' liquidity
needs, we focused primarily on managing our very short-term positions for
maximum yield through the end of 1999. Although this strategy prevented us from
taking advantage of certain buying opportunities, we did not feel comfortable
making longer-term commitments given the uncertainty. In hindsight, Y2K was a
nonevent, and since then we have been able to concentrate on more traditional
aspects of portfolio management.
The new year saw a resurgence of inflation fears, prompting the Federal Reserve
to raise short-term interest rates by 25 basis points both in February and
March, on top of a similar increase back in November. All indications,
particularly a higher-than-expected consumer price index report in April, seem
to point to further rate increases. Higher energy prices, tight labor markets,
robust economic growth and the "wealth effect" created by higher stock prices
will likely provide Fed Chairman Alan Greenspan with the ammunition he needs.
Typically, in an environment such as this, we might want to keep the Funds'
average-weighted maturity somewhat short, which would give us the flexibility to
benefit from rising rates. However, in our judgment, rates for one-year
securities, the longest end of the spectrum, already reflect most of that risk.
With one eye on liquidity issues and the other on uncovering advantageous yield
combinations, we increased the Funds' one-year holdings starting in February.
Going under the assumption that "a bird in the hand is worth two in the bush,"
this allowed shareholders to realize these higher yields before the anticipated
short-term rate increases actually took effect. At the same time, when and if
rates do rise again, we should have sufficient cash equivalents available to
prudently pursue additional yield. All in all, we believe this has proven to be
a wise decision.
Going forward, both the financial and nonfinancial sectors of the economy appear
stable despite record levels of consumer debt. Defaults are not currently a
concern, and although we are always on the lookout for potential trouble spots,
we do not see any at this time. Our best expectation is that the economy will
continue to experience solid growth. And while recent stock market volatility
may impact consumer spending and in turn moderate the Federal Reserve's
aggressive stance on monetary policy, the worst-case scenario might be slower
growth rather than negative growth. We do not, however, profess to have a
crystal ball. For that reason, we constantly monitor the economic landscape,
seeking to protect our ability - and our flexibility - to respond to changing
market conditions on your behalf.
In closing, we'd like to thank you for your continued investment and confidence
in Janus Money Market Funds.
(1) Lipper, Inc. defines a U.S. money market fund as one that invests in
"high-quality financial instruments rated in the top two grades with
dollar-denominated average maturities of less than 90 days" and that
intends "to keep constant net asset value." As of April 30, 2000, Janus
Money Market Fund ranked 52/238 of U.S. money market funds for the 5-year
period.
(2) Lipper, Inc. defines a U.S. government money market fund as one that
invests in "high-quality financial instruments issued or guaranteed by the
U.S. government, its agencies or instrumentalities, with dollar-weighted
average maturities of less than 90 days" and that intends "to keep constant
net asset value." As of April 30, 2000, Janus Government Money Market Fund
ranked 24/97 of U.S. government money market funds for the 5-year period.
(3) Lipper, Inc. defines a tax-exempt money market fund as one that invests in
"high-quality municipal obligations with dollar-weighted average maturities
of less than 90 days" and that intends "to keep constant net asset value."
As of April 30, 2000, Janus Tax-Exempt Money Market Fund ranked 16/114 of
tax-exempt money market funds for the 5-year period.
Lipper rankings are based on total return, including reinvestment of dividends
and capital gains.
An investment in the Fund(s) is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund(s) seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund(s).
Past performance does not guarantee future results.
18 Janus Income Funds / April 30, 2000
<PAGE>
Janus | Money Market Funds
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Short-Term Corporate Notes - 21.3%
$ 30,324,000 Aon Corp.
6.10%, 5/18/00 ........................... $ 30,236,650
55,817,000 Ariesone Metafolio Corp.
6.07%, 5/5/00+ ........................... 55,779,355
Banco de la Provincia de Buenos Aires:
20,000,000 6.10%, 7/12/00 ........................... 19,756,000
30,000,000 6.15%, 8/11/00 ........................... 29,477,250
20,000,000 6.29%, 9/11/00 ........................... 19,535,240
20,000,000 6.335%, 11/9/00 .......................... 19,324,267
68,750,000 Banco Rio de la Plata S.A.
6.302%, 10/10/00 ......................... 66,800,319
Block Financial Corp.:
52,000,000 6.13%, 5/1/00 ............................ 52,000,000
40,000,000 6.11%, 5/11/00 ........................... 39,932,111
Countrywide Home Loans:
100,000,000 6.07%, 5/1/00 ............................ 100,000,000
81,435,000 6.04%-6.11%, 5/3/00 ...................... 81,407,525
33,500,000 Demir Funding Corp.
6.29%, 10/11/00 .......................... 32,545,929
Eaton Corp.:
50,000,000 6.12%, 6/5/00 ............................ 49,702,500
20,000,000 6.10%, 6/13/00 ........................... 19,854,278
50,000,000 Fortis Funding L.L.C.
6.12%, 9/5/00 ............................ 48,920,500
Garanti Funding Corp.:
99,000,000 6.18%-6.20%, 7/31/00 ..................... 97,450,978
28,000,000 6.18%, 8/1/00 ............................ 27,557,787
GTE Corp.:
40,000,000 6.08%, 5/2/00 ............................ 39,993,244
50,000,000 6.09%, 5/22/00 ........................... 49,822,375
Heller Financial, Inc.:
50,000,000 6.10%, 5/2/00 ............................ 49,991,528
50,000,000 6.10%, 5/3/00 ............................ 49,983,056
25,000,000 6.15%, 5/10/00 ........................... 24,961,562
21,245,000 Jefferson-Pilot Corp.
6.13%, 8/31/00 ........................... 20,803,659
24,600,000 Konica Finance USA Corp.
6.13%, 5/24/00 ........................... 24,503,657
Mitsubishi Motors Credit:
20,000,000 6.15%, 5/1/00 ............................ 20,000,000
125,000,000 6.13%-6.14%, 5/4/00 ...................... 124,957,245
35,000,000 6.15%, 5/9/00 ............................ 34,952,167
45,000,000 6.12%-6.15%, 5/10/00 ..................... 44,931,000
60,000,000 6.10%-6.12%, 5/12/00 ..................... 59,887,983
68,092,000 6.16%, 5/15/00 ........................... 67,928,882
35,000,000 Nstar
6.16%, 5/26/00 ........................... 34,850,278
Omnicom Finance, Inc.:
40,000,000 6.10%-6.12%, 5/3/00 ...................... 39,986,422
45,000,000 6.10%, 5/5/00 ............................ 44,969,500
45,000,000 6.10%-6.14%, 5/8/00 ...................... 44,946,469
22,000,000 6.10%, 5/9/00 ............................ 21,970,178
25,000,000 6.10%, 5/10/00 ........................... 24,961,875
20,000,000 6.10%, 5/12/00 ........................... 19,962,722
30,000,000 6.10%, 5/15/00 ........................... 29,928,833
20,000,000 6.10%, 5/17/00 ........................... 19,945,778
25,000,000 6.12%, 5/18/00 ........................... 24,927,750
40,000,000 6.12%, 5/19/00 ........................... 39,877,800
20,000,000 6.12%, 5/22/00 ........................... 19,928,600
20,000,000 6.12%, 5/24/00 ........................... 19,921,800
Short-Term Corporate Notes - (continued)
$ 26,000,000 Ryobi Finance Corp.
6.22%, 5/26/00 ........................... $ 25,887,694
30,000,000 Target Corp.
6.10%, 5/1/00 ............................ 30,000,000
Textron Financial Corp.:
50,000,000 6.08%, 5/1/00 ............................ 50,000,000
50,000,000 6.16%, 6/22/00 ........................... 49,555,111
50,000,000 6.16%, 6/23/00 ........................... 49,546,556
20,000,000 Tomen America, Inc.
6.18%, 5/1/00 ............................ 20,000,000
Unibanco Uniao de Bancos Brasileiros S.A.:
40,000,000 6.425%, 4/11/01 .......................... 37,537,083
25,000,000 6.42%, 4/12/01 ........................... 23,457,417
100,000,000 Vodafone Airtouch PLC
6.09%, 5/1/00 ............................ 100,000,000
20,000,000 Yamaha Motor Finance
6.12%, 5/3/00 ............................ 19,993,200
--------------------------------------------------------------------------------
Total Short-Term Corporate Notes
(amortized cost $2,195,152,113) ........................... 2,195,152,113
--------------------------------------------------------------------------------
Short-Term Sovereign Note - 1.2%
125,000,000 United Mexican States
6.30%, 9/19/00
(amortized cost $121,915,625) ............ 121,915,625
--------------------------------------------------------------------------------
Taxable Variable Rate Demand Notes - 6.9%
9,800,000 Bannockburn Associates L.L.C.
6.23%, 4/1/27 ............................ 9,800,000
45,600,000 Bell County, Texas Health Facilities
Development Corp. Revenue, Series B1
6.16%, 8/15/29 ........................... 45,600,000
14,980,000 Breckenridge Terrace L.L.C.
6.1825%, 5/1/39 .......................... 14,980,000
23,000,000 Brosis Finance L.L.C.
6.16%, 9/1/19 ............................ 23,000,000
California Housing Finance Authority:
13,535,000 6.23%, 8/1/05 ............................ 13,535,000
48,995,000 6.23%, 8/1/07 ............................ 48,995,000
22,699,000 Capital One Funding Corp.
6.20%, 12/2/19 ........................... 22,699,000
20,000,000 Carolina Medi-Plan
6.16%, 6/1/22 ............................ 20,000,000
15,510,000 Crouse Health Hospital, Inc.
6.27%, 7/1/17 ............................ 15,510,000
24,525,000 Crozer-Keystone Health Systems
6.27%, 12/15/21 .......................... 24,525,000
Eagle County, Colorado Housing Facility
Revenue, (BC Housing L.L.C. Project)
Series A:
9,100,000 6.1825%, 6/1/27 .......................... 9,100,000
8,000,000 6.2325%, 5/1/39 .......................... 8,000,000
15,000,000 Eufaula, Alabama Industrial Development
Board, (Chia Tai Project)
6.31%, 6/1/13 ............................ 15,000,000
15,000,000 HHH Investment Co.
6.20%, 7/1/29 ............................ 15,000,000
18,150,000 Lenexa, Kansas Industrial Revenue
(Labone, Inc. Project), Series A
6.28%, 9/1/09 ............................ 18,150,000
59,000,000 Los Angeles, California Community
Redevelopment Agency, Series A
6.25%, 12/1/18 ........................... 59,000,000
20,675,000 Louisiana Health Systems Corp. Revenue
Series B, 6.10%, 10/1/22 ................. 20,675,000
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 19
<PAGE>
Janus | Money Market Funds
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Taxable Variable Rate Demand Notes - (continued)
$ 34,805,000 Montgomery, Alabama BMC Special Care
Facilities Financing Authority, (Baptist
Medical Center), Series C
6.15%, 11/15/29 .......................... $ 34,805,000
48,000,000 Mount Vernon Limited Partnership
Housing, Virginia
6.20%, 1/1/10 ............................ 48,000,000
20,000,000 New Grant L.L.C.
6.27%, 7/1/19 ............................ 20,000,000
10,000,000 Patrick Schaumburg Auto
6.275%, 7/1/08 ........................... 10,000,000
37,000,000 Racetrac Capital L.L.C.
6.16%, 4/1/18 ............................ 37,000,000
25,000,000 Rehau, Inc.
6.37%, 10/1/19 ........................... 25,000,000
16,800,000 St. Francis Place, Ltd., 6.25%, 12/1/08+ .... 16,800,000
17,800,000 St. Joseph Health Systems of California
Series A, 6.22%, 7/1/11+ ................. 17,800,000
60,000,000 Sempra Energy Employee Stock Ownership
Plan, 6.26%, 11/1/14+ .................... 60,000,000
37,500,000 Texas Veterans Housing Assistance, Series A
6.15%, 6/1/30 ............................ 37,500,000
5,005,000 Union City, Tennessee Industrial
Development Board, (Cobank
Limited L.L.C. Project), 6.15%, 1/1/25 ... 5,005,000
19,995,000 Virginia Housing
6.23%, 1/1/09 ............................ 19,995,000
--------------------------------------------------------------------------------
Total Taxable Variable Rate Demand Notes (cost $715,474,000) 715,474,000
--------------------------------------------------------------------------------
Floating Rate Notes - 17.7%
75,000,000 Albertson's, Inc.
6.11%, 7/14/00+ .......................... 74,988,740
American Express Centurion:
25,000,000 6.25%, 7/13/00 ........................... 25,000,000
40,000,000 6.35%, 9/29/00 ........................... 40,003,147
American Honda Finance Corp.:
25,000,000 6.14125%, 6/19/00 ........................ 24,998,364
50,000,000 6.25%, 7/12/00 ........................... 49,997,050
25,000,000 6.2712%, 1/16/01 ......................... 24,996,494
75,000,000 AT&T Corp.
6.24%, 7/13/00+ .......................... 74,989,212
Bank One Corp.:
25,000,000 6.32%, 10/5/00 ........................... 24,994,756
50,000,000 6.18%, 1/3/01 ............................ 50,000,000
25,000,000 6.3825%, 3/23/01 ......................... 25,029,774
25,000,000 6.44%, 4/4/01 ............................ 25,032,937
50,000,000 Bank One N.A., Illinois
6.2025%, 4/19/01 ......................... 49,962,669
30,000,000 Bankers Trust Company, New York
6.20%, 5/15/00 ........................... 29,999,543
Bear Stearns Companies, Inc.:
30,900,000 6.9475%, 2/6/01 .......................... 31,084,213
31,600,000 6.33%, 2/16/01 ........................... 31,631,621
29,250,000 6.3325%, 3/2/01 .......................... 29,281,169
50,000,000 Comerica Bank, Detroit
6.12%, 11/20/00 .......................... 49,983,638
First Union National Bank:
50,000,000 6.3375%, 9/27/00 ......................... 50,000,000
50,000,000 6.3725%, 10/30/00 ........................ 50,000,000
50,000,000 6.07%, 11/22/00 .......................... 50,000,000
Floating Rate Notes - (continued)
Fleet National Bank:
$ 27,000,000 6.065%, 8/10/00 .......................... $ 26,996,313
25,000,000 6.28%, 8/14/00 ........................... 24,998,056
20,000,000 6.3237%, 12/14/00 ........................ 20,014,736
50,000,000 Ford Motor Credit Corp.
6.24%, 8/18/00 ........................... 49,991,814
48,000,000 Homeside Lending, Inc.
6.29%, 8/16/00 ........................... 47,992,380
50,000,000 Landesbank Hessen-Thueringen
6.28%, 10/2/00 ........................... 49,985,871
50,000,000 Morgan Stanley Dean Witter & Co.
6.1825%, 8/30/00 ......................... 50,000,000
25,000,000 National Bank of Canada, New York
6.03%, 11/22/00 .......................... 24,994,540
National Bank of Commerce:
50,000,000 6.18%, 7/18/00 ........................... 49,996,385
50,000,000 6.21875%, 9/5/00 ......................... 50,002,573
50,000,000 National Rural Utilities
6.25%, 7/6/00 ............................ 49,996,393
45,000,000 Northern Rock PLC
6.13%, 4/20/01 ........................... 45,000,000
25,000,000 Skandinaviska Enskilda Banken
6.15%, 1/19/01 ........................... 24,994,695
Societe Generale, New York:
50,000,000 6.11%, 11/9/00 ........................... 49,981,639
50,000,000 6.1025%, 12/4/00 ......................... 49,976,750
25,000,000 6.08%, 12/18/00 .......................... 24,984,935
75,000,000 SouthTrust Bank N.A.
6.2125%, 9/29/00 ......................... 74,976,321
50,000,000 Standard Chartered Bank, New York
6.11%, 11/20/00 .......................... 49,980,926
50,000,000 Textron Financial Corp.
6.25%, 2/26/01 ........................... 50,000,000
15,000,000 U.S. Bancorp
6.18%, 7/14/00 ........................... 14,999,940
26,000,000 U.S. Bank N.A.
6.35%, 11/15/00 .......................... 26,019,363
Volkswagen Credit, Inc.:
50,000,000 6.1675%, 6/26/00+ ........................ 49,993,950
50,000,000 6.019%, 8/4/00 ........................... 49,987,795
50,000,000 Westpac Banking Corp., New York
6.2387%, 9/22/00 ......................... 49,992,131
--------------------------------------------------------------------------------
Total Floating Rate Notes (amortized cost $1,817,830,833) ... 1,817,830,833
--------------------------------------------------------------------------------
Loan Participations - 2.9%
200,000,000 Bear Stearns Companies, Inc.
6.10%, 5/1/00 ............................ 200,000,000
100,000,000 GMAC Mortgage Corp.
6.2448%, 6/1/00 .......................... 99,479,597
--------------------------------------------------------------------------------
Total Loan Participations (amortized cost $299,479,597) ..... 299,479,597
--------------------------------------------------------------------------------
Certificates of Deposit - 19.0%
50,000,000 Bank of Montreal, Chicago
5.20%, 5/12/00 ........................... 49,998,494
Bank of Nova Scotia:
25,000,000 5.80%, 8/2/00 ............................ 24,996,952
25,000,000 6.695%, 2/12/01 .......................... 24,989,744
25,000,000 6.76%, 2/22/01 ........................... 24,992,283
Bank One N.A., Illinois:
25,000,000 6.71%, 2/12/01 ........................... 24,990,679
25,000,000 6.90%, 4/30/01 ........................... 24,996,458
Banque Nationale de Paris:
25,000,000 6.70%, 2/8/01 ............................ 24,990,805
25,000,000 6.88%, 4/30/01 ........................... 24,995,277
See Notes to Schedules of Investments.
20 Janus Income Funds / April 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Certificates of Deposit - (continued)
$ 50,000,000 Barclays Bank PLC, New York
5.90%, 10/2/00 ........................... $ 49,954,071
25,000,000 Bayerische Landesbank, New York
5.93%, 10/2/00 ........................... 24,987,912
Bayerische Vereinsbank, New York:
25,000,000 6.71%, 2/13/01 ........................... 24,992,516
25,000,000 6.95%, 5/2/01 ............................ 25,000,000
50,000,000 Canadian Imperial Bank of Commerce
6.19%, 6/23/00 ........................... 50,000,000
Commerzbank A.G., New York:
25,000,000 5.66%, 6/26/00 ........................... 24,998,530
25,000,000 5.81%, 8/3/00 ............................ 24,996,920
50,000,000 6.745%, 2/22/01 .......................... 49,984,565
25,000,000 6.82%, 3/28/01 ........................... 24,989,255
31,000,000 6.83%, 4/27/01 ........................... 30,994,187
Compagnie Financiere de CIC et de L'Union
Europeene:
24,000,000 6.39%, 12/20/00 .......................... 23,998,542
25,000,000 6.85%, 4/18/01 ........................... 24,993,145
Deutsche Bank, New York:
30,000,000 5.21%, 5/10/00 ........................... 29,999,715
25,000,000 5.66%, 6/26/00 ........................... 24,998,530
25,000,000 6.71%, 2/14/01 ........................... 24,992,488
27,000,000 6.75%, 2/22/01 ........................... 26,989,583
25,000,000 European American Bank
5.28%, 5/15/00 ........................... 24,999,677
25,000,000 KBC Bank N.V., New York
6.75%, 2/20/01 ........................... 24,992,337
Landesbank Hessen-Thueringen:
25,000,000 5.92%, 9/29/00 ........................... 24,986,957
25,000,000 6.935%, 5/2/01 ........................... 24,996,448
25,000,000 LaSalle National Bank
6.70%, 2/1/01 ............................ 24,991,032
Merita Bank, Ltd., New York:
25,000,000 6.70%, 2/2/01 ............................ 24,991,000
25,000,000 6.73%, 2/8/01 ............................ 24,992,645
25,000,000 6.815%, 3/28/01 .......................... 24,991,403
25,000,000 6.81%, 4/17/01 ........................... 24,993,165
Natexis Banque, New York:
25,000,000 6.78%, 2/2/01 ............................ 24,992,804
25,000,000 6.84%, 3/28/01 ........................... 24,991,405
National Bank of Canada, New York:
25,000,000 5.40%, 5/22/00 ........................... 24,999,586
25,000,000 5.56%, 6/5/00 ............................ 24,999,080
25,000,000 5.56%, 6/7/00 ............................ 24,999,028
28,000,000 5.61%, 6/12/00 ........................... 27,998,764
25,000,000 5.80%, 7/28/00 ........................... 24,998,269
25,000,000 6.75%, 2/9/01 ............................ 24,992,620
NordDeutsche LandesBank, New York:
25,000,000 5.22%, 5/15/00 ........................... 24,999,539
25,000,000 6.70%, 2/7/01 ............................ 24,990,837
25,000,000 6.95%, 5/2/01 ............................ 25,000,000
25,000,000 Paribas S.A., New York
6.73%, 2/7/01 ............................ 24,992,671
Regions Bank:
25,000,000 6.09%, 10/10/00 .......................... 24,993,650
25,000,000 6.70%, 2/2/01 ............................ 24,991,000
Skandinaviska Enskilda Banken:
25,000,000 5.47%, 6/2/00 ............................ 24,999,158
25,000,000 5.77%, 8/2/00 ............................ 24,997,561
25,000,000 5.96%, 8/10/00 ........................... 24,997,356
Certificates of Deposit - (continued)
Societe Generale, New York:
$ 25,000,000 6.81%, 4/18/01 ........................... $ 24,993,142
25,000,000 6.82%, 4/26/01 ........................... 24,995,324
25,000,000 SouthTrust Bank N.A.
6.31%, 9/11/00 ........................... 25,000,000
Standard Chartered Bank, New York:
25,000,000 6.70%, 2/8/01 ............................ 24,990,805
25,000,000 6.83%, 4/27/01 ........................... 24,995,312
Svenska Handelsbanken, New York:
35,000,000 5.22%, 5/10/00 ........................... 34,999,585
25,000,000 5.40%, 6/1/00 ............................ 24,998,980
25,000,000 6.71%, 2/7/01 ............................ 24,990,838
25,000,000 6.88%, 4/30/01 ........................... 24,995,277
Swedbank, New York:
25,000,000 6.72%, 2/7/01 ............................ 24,992,670
28,000,000 6.74%, 2/22/01 ........................... 27,991,356
Toronto Dominion Bank, New York:
25,000,000 6.30%, 12/20/00 .......................... 24,992,400
19,000,000 6.69%, 2/5/01 ............................ 18,990,654
UBS A.G., Stamford:
25,000,000 5.40%, 6/1/00 ............................ 24,998,980
25,000,000 5.66%, 6/26/00 ........................... 24,998,530
25,000,000 5.76%, 7/5/00 ............................ 24,998,296
25,000,000 6.135%, 11/29/00 ......................... 24,990,998
25,000,000 6.85%, 3/28/01 ........................... 24,991,406
25,000,000 6.82%, 4/27/01 ........................... 24,995,311
Unibank A/S, New York:
30,000,000 5.22%, 5/15/00 ........................... 29,999,446
25,000,000 5.31%, 5/22/00 ........................... 24,999,240
25,000,000 6.72%, 2/7/01 ............................ 24,992,670
28,000,000 6.92%, 3/30/01 ........................... 27,995,161
--------------------------------------------------------------------------------
Total Certificates of Deposit (amortized cost $1,954,575,024) 1,954,575,024
--------------------------------------------------------------------------------
Put Bonds - 6.3%
125,000,000 Heller Financial, Inc. (seven day put)
6.2425%, 1/12/01 ......................... 125,000,000
525,000,000 Lehman Brothers, Inc. (same day put)
6.2625%, 1/14/01 ......................... 525,000,000
--------------------------------------------------------------------------------
Total Put Bonds (cost $650,000,000) ......................... 650,000,000
--------------------------------------------------------------------------------
Interest Bearing Notes - 0.1%
13,700,000 General Motors Acceptance Corp.
6.65%, (medium-term notes), 5/24/00
(cost $13,711,107) ....................... 13,711,107
--------------------------------------------------------------------------------
Time Deposit - 3.9%
400,000,000 Regions Bank of Alabama
6.09375%, 5/1/00 (cost $400,000,000) ..... 400,000,000
--------------------------------------------------------------------------------
Repurchase Agreements - 21.8%
100,000,000 ABN AMRO Securities, Inc., 6.10% dated
4/28/00, maturing 5/1/00, to be
repurchased at $100,050,833
collateralized by $77,395,000 in Aames
Mortgage Trust, 6.38%, 12/15/27;
$30,460,117 in NationsLink Funding
Corp., 6.48%, 4/10/07; $47,900,000 in
Residential Funding Mortgage Securities,
6.50%, 2/25/29; with respective values
of $37,003,473, $24,374,423 and
$40,622,105 .............................. 100,000,000
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 21
<PAGE>
Janus | Money Market Funds
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Repurchase Agreements - (continued)
$ 400,000,000 BankAmerica Securities L.L.C., 6.16% dated
4/28/00, maturing 5/1/00, to be
repurchased at $400,205,333
collateralized by $4,885,000 in Advanta
Mortgage Loan Trust, 6.25%, 6/25/28;
$610,000 in Amresco Residential
Securities Mortgage Loan Trust, 6.385%,
7/25/28; $29,436,000 in Asset
Securitization Corp., 6.92%-7.59%,
7/11/25-2/14/26; $365,665,999 in Banc of
America Funding Corp., 6.75%, 11/20/32;
$13,931,504 in Bank of America Mortgage
Securities, Inc., 0%-7.00%,
7/25/14-5/1/29; with respective values
of $4,557,558, $184,794, $24,721,698,
$365,665,999 and $12,869,950 ............. $ 400,000,000
150,000,000 Barclays Capital, Inc., 6.16% dated 4/28/00,
maturing 5/1/00, to be repurchased at
$150,077,000 collateralized by
$5,500,000 in Advanta Equipment
Receivables, 7.405%, 2/15/07;
$14,115,000 in American Express Credit
Account Master Trust, 5.60%-7.20%,
11/15/06-9/15/07; $4,687,500 in Banc One
Auto Grantor Trust, 6.29%, 7/20/04;
$500,000 in BankBoston Marine Asset
Backed Trust, 6.82%, 4/15/13; $4,000,000
in Beneficial Mortgage Corp., 6.3025%,
5/28/37-9/28/37; $4,000,000 in Capital
One Master Trust, 6.32%, 10/15/03;
$1,405,000 in Case Equipment Loan Trust,
5.60%-5.83%, 7/15/03-2/15/05; $2,530,000
in Caterpillar Financial Asset Trust,
5.85%, 4/25/03; $1,400,000 in Chase
Credit Master Trust, 6.39%, 9/15/04;
$3,760,000 in Chase Manhattan Auto Owner
Trust, 5.80%-6.66%, 12/15/01- 1/15/07;
$10,000,000 in Chevy Chase Master Credit
Card Trust, 6.28%, 10/16/06; $11,004,000
in Citibank Credit Card Master Trust,
5.80%-6.65%, 9/16/02-5/15/08; $2,200,000
in Citibank Revocable Trust, 5.96%,
4/15/11; $10,000 in Contimortgage Home
Equity Loan Trust, 7.01%, 8/15/13;
$4,200,000 in Daimler-Benz Auto Grantor
Trust, 6.05%, 3/31/05; $19,250,000 in
Discover Card Master Trust,
6.26%-6.7025%, 4/16/07-9/18/07;
$3,033,000 in Fifth Third Auto Grantor
Trust, 6.45%, 3/15/02; $795,000 in First
Security Auto Owner Trust, 5.74%,
6/15/04; $23,100,000 in First USA Credit
Card Master Trust, 6.23%-6.30%, 4/15/03-
3/18/08; $2,825,000 in Fleetwood Credit
Corp. Grantor Trust, 6.40%, 5/15/13;
$35,000 in Ford Credit Auto Owner Trust,
5.80%, 6/15/02; $500,000 in Key Auto
Finance Trust, 6.25%, 10/15/03;
$25,755,403 in MBNA Master
Repurchase Agreements - (continued)
Credit Card Trust, 5.90%-6.34%,
11/15/02-8/15/11; $3,000,000 in Mellon
Bank Home Equity Loan Trust, 6.32%,
4/15/26; $1,500,000 in Metris Master
Trust, 6.48%, 6/21/04; $13,115,000 in
Newcourt Receivables Asset Trust,
6.193%-6.24%, 12/20/04-5/20/05; $450,000
in Premier Auto Trust, 5.07%, 7/8/02;
$1,000,000 in Providian Master Trust,
6.25%, 6/15/07; $2,250,000 in Saxon
Asset Securities Trust, 5.75%, 5/25/18;
$1,800,000 in Sears Credit Account
Master Trust, 5.65%-7.00%,
10/16/04-3/15/09; $10,750,000 in
Standard Credit Card Master Trust,
8.25%, 1/7/05; $350,000 in Toyota Auto
Lease Trust, 6.35%, 4/25/04; $4,142,000
in Union Acceptance Corp., 5.965%-
6.51%, 11/8/02-1/7/03; $4,255,000 in
World Omni Automobile Lease
Securitization Trust, 6.53%, 12/15/04;
with respective values of $5,500,000,
$13,654,990, $1,547,834, $482,880,
$1,103,581, $3,998,800, $1,379,151,
$2,507,331, $1,403,962, $3,026,186,
$9,982,270, $10,861,128, $2,133,010,
$1,586, $810,513, $19,348,676, $143,020,
$767,022, $23,074,411, $1,171,242,
$34,688, $492,736, $25,698,085,
$202,199, $1,503,522, $537,569,
$443,484, $976,170, $2,181,309,
$1,577,430, $11,072,704, $349,258,
$778,255 and $4,255,000 .................. $ 150,000,000
$ 150,000,000 Bear Stearns Companies, Inc., 6.1425% dated
4/28/00, maturing 5/1/00, to be
repurchased at $150,076,781
collateralized by $29,744,874 in Fannie
Mae, 7.36%-8.83%, 11/25/22-4/25/30;
$16,600,000 in Fannie Mae Conventional
Mortgage Loan Pool, 7.71%-8.00%,
2/1/10-4/1/30; $167,069,765 in Freddie
Mac, 0%-8.00%, 5/15/07-7/15/29;
$6,445,000 in Ginnie Mae, 5.26%- 7.50%,
12/20/26-7/16/29; with respective values
of $19,678,634, $16,757,977,
$117,361,889 and $5,535,275 .............. 150,000,000
150,000,000 Chase Manhattan Corp., 6.05% dated 4/28/00,
maturing 5/1/00, to be repurchased at
$150,075,625 collateralized by
$49,655,000 in ED & F Man Treasury
Management, 6.10%- 6.15%,
5/25/00-6/23/00; $20,000,000 in Fortis
Funding L.L.C., 5.79%, 5/30/00;
$20,000,000 in Formosa Plastic Corp.,
6.15%, 5/22/00; $46,830,000 in SBC
Communications, 6.15%, 8/10/00;
$10,000,000 in Tampa Electric Co.,
6.03%, 5/8/00; $19,330,000 in
TransAmerica Finance, 6.12%, 6/22/00;
with respective values of $49,298,249,
$19,919,789, $13,146,341, $46,004,154,
$9,983,347 and $19,151,034 ............... 150,000,000
See Notes to Schedules of Investments.
22 Janus Income Funds / April 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Repurchase Agreements - (continued)
$ 150,000,000 CS First Boston, Inc., 6.11% dated 4/28/00,
maturing 5/1/00, to be repurchased at
$150,076,375 collateralized by
$97,383,231 in Fannie Mae,
2.7363%-13.90%, 12/25/00- 4/25/30;
$72,315,668 in Freddie Mac, 4.19%-9.50%,
11/15/23-3/15/30; $388,997,444 in Ginnie
Mae, 0%-11.10%, 1/16/26-1/16/30; with
respective values of $67,692,257,
$45,656,759 and $58,216,797 .............. $ 150,000,000
594,000,000 Deutsche Bank Securities, Inc., 6.11% dated
4/28/00, maturing 5/1/00, to be
repurchased at $594,302,445
collateralized by $821,096,191 in Fannie
Mae, 0%-9.50%, 5/17/00- 5/15/29;
$10,241,278 in Federal Farm Credit,
5.75%-6.72%, 10/10/00- 10/11/07;
$94,223,883 in Federal Home Loan Bank
System, 0%-7.715%, 5/12/00-11/18/13;
$594,258,402 in Freddie Mac, 0%-12.693%,
5/4/00- 9/15/29; $177,134,427 in Ginnie
Mae, 1.1825%-9.00%, 1/15/09-4/15/30;
$855,160 in Sallie Mae, 0%-6.55%,
7/20/00-12/2/13; $4,423,241 in Tennessee
Valley Authority, 5.00%, 12/18/03;
$180,580,509 in Vendee Mortgage Trust,
0.4691%-6.75%, 6/15/23; with respective
values of $233,197,382, $10,189,229,
$92,078,597, $151,810,011, $97,289,696,
$839,702, $4,199,849 and $16,275,902 ..... 594,000,000
200,000,000 Deutsche Bank Securities, Inc., 6.16% dated
4/28/00, maturing 5/1/00, to be
repurchased at $200,102,667
collateralized by $10,000,000 in Capital
Auto Receivables Asset Trust, 6.96%,
11/17/03; $9,000,000 in Citicorp
Mortgage Securities, Inc., 5.75%,
6/25/09; $489,681,763 in Commercial
Mortgage Acceptance Corp., 0.7177%-
0.8971%, 11/15/17-11/15/18; $17,602,000
in CS First Boston Mortgage Securities
Corp., 5.96%, 12/15/07; $190,920,000 in
Deutsche Mortgage and Asset Receiving
Corp., 1.1109%, 2/15/23; $15,375,000 in
GE Capital Mortgage Services, Inc.,
6.265%, 4/25/29; $113,797,672 in Global
Franchise Trust, 1.7867%, 6/10/18;
$624,221,001 in GMAC Commercial Mortgage
Securities, Inc., 0.6258%- 41.09218%,
8/15/23-9/15/23; $11,610,000 in LB
Commercial Conduit Mortgage Trust,
6.41%, 8/15/07; $10,000,000 in MBNA
Master Credit Card Trust, 6.24%,
8/15/06; $386,160,000 in Merrill Lynch
Mortgage Investors, Inc., 1.3387%,
12/26/25; $290,000,000 in Morgan Stanley
Capital, 0.832%, 12/15/12; $13,810,000
in Mortgage Capital Funding, Inc.,
6.325%,
Repurchase Agreements - (continued)
10/18/07; $42,500,000 in Provident Bank
Home Equity Loan Trust, 6.385%, 1/25/28;
$10,000,000 in Sears Credit Account
Master Trust, 6.20%, 7/16/07;
$26,450,000 in SLM Student Loan Trust,
6.2637%, 10/25/05; with respective
values of $9,999,800, $10,889,393,
$20,576,999, $15,191,681, $9,677,730,
$14,331,191, $8,762,421, $21,255,436,
$10,691,293, $9,994,700, $19,333,481,
$12,349,247, $11,633,859, $8,802,111,
$9,782,620 and $10,728,036 ............... $ 200,000,000
$ 200,000,000 Merrill Lynch and Companies, Inc., 6.11%
dated 4/28/00, maturing 5/1/00, to be
repurchased at $200,101,833
collateralized by $19,750,000 in Alltel
Corp., 0%, 6/16/00; $16,100,000 in
Eminent Funding, 0%, 7/5/00; $17,773,000
in Fairway Finance, 0%, 5/26/00;
$16,358,000 in Forrestal Fund Master
Trust, 0%, 11/1/00; $20,000,000 in
Franklin Resources, 0%, 6/16/00;
$19,000,000 in Grand Funding Corp., 0%,
6/5/00; $20,000,000 in Progress Capital
Holdings, 0%, 5/24/00; $19,254,000 in
Quincy Capital Corp., 0%, 6/5/00;
$19,036,000 in Teachers Insurance, 0%,
5/25/00; $3,270,000 in Thames Asset Co.,
0%, 7/6/00; $18,621,000 in Toyota
Credit, 0%, 6/13/00; $20,000,000 in
Vulcan Materials Co., 0%, 5/23/00; with
respective values of $19,270,761,
$15,709,329, $17,341,733, $15,838,108,
$19,514,694, $18,538,960, $19,514,694,
$18,786,796, $18,574,086, $3,231,898,
$18,169,156 and $19,514,694 .............. 200,000,000
150,000,000 Morgan Stanley Dean Witter & Co., 6.04% dated
4/28/00, maturing 5/1/00, to be
repuchased at $150,075,500
collateralized by $20,000,000 in BCI
Funding Corp., 0%, 5/30/00; $23,000,000
in BellSouth Co., 0%, 6/2/00;
$15,997,000 in BMW U.S. Capital Co., 0%,
5/30/00; $18,000,000 in Certain Funding
Corp., 0%, 7/17/00; $2,550,000 in
Discover Card Master Trust, 6.792%,
10/15/07; $23,995,000 in Grand Gaming
Corp., 0%, 6/19/00; $1,500,000 in PNC
Mortgage Acceptance Corp., 7.11%,
7/10/08; $17,907,000 in Steamboat
Funding Corp., 0%, 7/20/00; $40,103,000
in Stellar Finance, 0%, 5/30/00-6/20/00;
with respective values of $19,903,211
$22,878,258, $15,919,583, $17,782,987,
$1,913,602, $23,806,301, $1,446,354,
$17,683,013 and $39,848,614 .............. 150,000,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $2,244,000,000) ........... 2,244,000,000
--------------------------------------------------------------------------------
Total Investments (total cost $10,412,138,299) - 101.1% ..... 10,412,138,299
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.1%) (109,881,609)
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 10,302,256,690
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 23
<PAGE>
Janus | Government Money Market Fund
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
U.S. Government Agency Notes - 21.6%
Fannie Mae:
$ 15,000,000 5.10%, 5/19/00 ........................... $ 14,999,093
5,000,000 5.11%, 5/22/00 ........................... 4,999,971
5,000,000 6.015%, 6/8/00 ........................... 4,968,254
5,000,000 5.50%, 7/3/00 ............................ 4,951,875
10,000,000 5.40%-5.485%, 7/7/00 ..................... 9,898,709
5,719,000 5.620%, 9/12/00 .......................... 5,599,365
5,000,000 6.07%, 9/14/00 ........................... 4,885,344
5,000,000 6.20%, 10/12/00 .......................... 4,858,778
5,000,000 6.20%, 10/19/00 .......................... 4,852,750
5,000,000 5.63%, 10/31/00 .......................... 4,856,904
5,000,000 4.85%, 11/20/00 .......................... 4,962,783
5,590,000 6.22%, 1/19/01 ........................... 5,335,987
3,841,000 6.15%, 2/5/01 ............................ 3,657,272
5,000,000 6.10%, 2/6/01 ............................ 4,761,931
10,000,000 6.10%, 2/8/01 ............................ 9,520,472
5,000,000 6.48%, 2/22/01 ........................... 4,993,833
5,000,000 6.445, 2/23/01 ........................... 4,992,428
5,301,000 6.07%, 3/2/01 ............................ 5,028,389
Federal Home Loan Bank System
10,000,000 6.005%, 9/21/00 .......................... 9,998,846
Freddie Mac:
10,000,000 5.22%, 6/2/00 ............................ 9,953,600
5,000,000 5.13%, 6/6/00 ............................ 4,974,350
5,000,000 5.22%, 6/8/00 ............................ 4,972,450
5,000,000 5.29%, 6/13/00 ........................... 4,968,407
10,000,000 5.218%-5.285%, 6/15/00 ................... 9,934,356
10,000,000 5.45%, 7/11/00 ........................... 9,892,514
5,000,000 5.38%, 7/13/00 ........................... 4,945,453
5,000,000 5.46%, 8/4/00 ............................ 4,927,958
11,942,000 6.055%, 2/1/01 ........................... 11,387,366
16,197,000 6.11%-6.15%, 3/1/01 ...................... 15,360,345
5,000,000 6.14%, 3/21/01 ........................... 4,723,700
10,000,000 6.21%-6.285%, 3/29/01 .................... 9,423,842
10,000,000 6.27%-6.38%, 4/26/01 ..................... 9,367,500
Sallie Mae:
9,000,000 6.05%-6.20%, 12/20/00 .................... 8,643,704
5,000,000 6.55%, 2/14/01 ........................... 4,998,026
--------------------------------------------------------------------------------
Total U.S. Government Agency Notes
(amortized cost $236,596,555) ............................ 236,596,555
--------------------------------------------------------------------------------
U.S. Government Agency Variable Notes - 19.6%
Fannie Mae:
10,000,000 5.97%, 6/23/00 ........................... 9,999,131
10,000,000 6.312%, 7/21/00 .......................... 9,999,341
10,000,000 5.95%, 8/2/00 ............................ 9,998,285
20,000,000 5.92%-5.95%, 8/4/00 ...................... 19,996,561
20,000,000 5.915%-6.12%, 8/9/00 ..................... 19,996,071
10,000,000 5.985%, 11/22/00 ......................... 9,995,519
Federal Farm Credit Bank:
10,000,000 6.06%, 6/22/00 ........................... 9,999,443
10,000,000 6.135%, 9/15/00 .......................... 9,999,086
Federal Home Loan Bank System:
10,000,000 6.06%, 6/21/00 ........................... 9,999,453
15,000,000 6.12%, 8/3/00 ............................ 14,998,409
2,000,000 5.98, 9/12/00 ............................ 1,999,236
5,000,000 6.003%, 9/28/00 .......................... 4,998,791
28,000,000 5.983%-6.13%, 10/4/00 .................... 27,993,433
15,000,000 6.13%, 10/10/00 .......................... 14,996,043
10,000,000 5.93%, 10/25/00 .......................... 9,994,279
Freddie Mac:
15,000,000 5.935%, 5/18/00 .......................... 14,999,443
5,000,000 6.282%, 7/14/00 .......................... 4,999,495
Sallie Mae
10,000,000 6.432%, 8/4/00 ........................... 9,997,076
--------------------------------------------------------------------------------
Total U.S. Government Agency Variable Notes
(amortized cost $214,959,095) ............................. 214,959,095
--------------------------------------------------------------------------------
U.S. Government Guarantee Notes and Loans - 10.7%
Army and Air Force Exchange
$ 19,000,000 6.10%, 5/8/00 ............................ $ 19,000,000
Navy Exchange Service Command
68,000,000 6.10%, 5/18/00 ........................... 68,000,000
Washington Aircraft Hire
29,839,790 6.09%, 5/2/00 ............................ 29,839,790
--------------------------------------------------------------------------------
Total U.S. Government Guarantee Notes and Loans
(amortized cost $116,839,790) ............................. 116,839,790
--------------------------------------------------------------------------------
Repurchase Agreements - 48.3%
94,700,000 ABN AMRO Securities, Inc., 5.85% dated
4/28/00, maturing 5/1/00, to be
repurchased at $94,746,166
collateralized by $100,000,000 in Ginnie
Mae, 6.10%, 11/20/23; with a value of
$96,824,535 .............................. 94,700,000
50,000,000 Bear Stearns Companies, Inc., 6.1425% dated
4/28/00, maturing 5/1/00, to be
repurchased at $50,025,594
collateralized by $15,04,167 in Fannie
Mae, 6.57%, 12/25/29; $1,525,000 in
Fannie Mae Conventional Mortgage Loan
Pool, 7.50%, 4/1/15; $166,516,000 in
Freddie Mac, 6.25%-7.50%,
1/15/24-2/15/29; with respective values
of $1,517,138, $12,201,617 and
$38,614,816 .............................. 50,000,000
175,000,000 CS First Boston, Inc., 6.1125% dated
4/28/00, maturing 5/1/00, to be
repurchased at $175,089,141 collateral-
ized by $97,447,142 in Fannie Mae,
0%-10.40%, 10/25/03-10/25/29;
$256,655,202 in Freddie Mac, 2.00%-
8.00%, 2/15/14-11/15/29, $336,804,000 in
Ginnie Mae, 2.43%-8.00%, 5/16/24-
12/16/28; with respective values of
$64,982,805, $99,810,723 and $36,549,213 . 175,000,000
209,800,000 Deutsche Bank Securities, Inc., 6.11% dated
4/28/00, maturing 5/1/00, to be
repurchased at $209,906,823 collateral-
ized by $290,010,069 in Fannie Mae,
0%-9.50%, 5/17/00-5/15/29; $3,617,205 in
Federal Farm Credit, 5.75%-6.72%,
10/10/00-10/11/07; $33,279,748 in
Federal Home Loan Bank System, 0%-
7.715%, 5/12/00-11/18/13; $209,891,267
in Freddie Mac, 0%-12.693%, 5/4/00-
9/15/29; $62,563,641 in Ginnie Mae,
1.1825%-9.00%, 1/15/09-4/15/30; $302,041
in Sallie Mae, 0%-6.55%,
7/20/00-12/2/13; $1,562,283 in Tennesse
Valley Authority, 5.00%, 12/18/03;
$63,780,792 in Vendee Mortgage Trust,
0.4691%-6.75%, 6/15/23; with respective
values of $82,365,001, $3,598,822,
$32,522,037, $53,619,091, $34,362,590,
$296,582, $1,483,381 and $5,748,627 ...... 209,800,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $529,500,000) ............. 529,500,000
--------------------------------------------------------------------------------
Total Investments (total cost $1,097,895,440) - 100.2% ...... 1,097,895,440
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.2%) (2,400,363)
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 1,095,495,077
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
24 Janus Income Funds / April 30, 2000
<PAGE>
Janus | Tax-Exempt Money Market Fund
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Municipal Securities - 100.5%
Alabama - 0.5%
$ 1,300,000 Columbia Industrial Development Board
Pollution Control Revenue, (Alabama
Power Co. Project), Series A
Variable Rate, 5.80%, 6/1/22 ............. $ 1,300,000
Alaska - 0.3%
750,000 Alaska Housing Finance Corp., (State
Building Lease), 4.25%, 10/1/00 .......... 750,741
Arizona - 2.4%
6,350,000 Tucson Industrial Development Authority
Multifamily Revenue, (Freedom Park
Apartments Project), Variable Rate
6.60%, 12/1/07 ........................... 6,350,000
California - 4.3%
Los Angeles Regional Airports Improvement
Corp. Lease Revenue, (American
Airlines - L.A. International):
100,000 Series A, Variable Rate, 6.00%, 12/1/24 .. 100,000
700,000 Series B, Variable Rate, 6.00%, 12/1/24 .. 700,000
900,000 Series C, Variable Rate, 6.00%, 12/1/24 .. 900,000
600,000 Series D, Variable Rate, 6.00%, 12/1/24 .. 600,000
200,000 Series E, Variable Rate, 6.00%, 12/1/24 .. 200,000
2,200,000 Series F, Variable Rate, 6.00%, 12/1/24 .. 2,200,000
800,000 Series G, Variable Rate, 6.00%, 12/1/24 .. 800,000
5,905,000 Variable Rate, 6.00%, 12/1/25 ............ 5,905,000
11,405,000
Colorado - 11.8%
1,585,000 Aurora Centretech Metropolitan District
Series A, Variable Rate, 4.00%, 12/1/28 .. 1,585,000
1,400,000 Boulder County Industrial Development
Revenue, (Mental Health Center Project)
Variable Rate, 5.20%, 11/1/14 ............ 1,400,000
7,430,000 Centennial Downs Metropolitan District
Variable Rate, 5.10%, 12/1/28 ............ 7,430,000
Colorado Health Facilities Authority Revenue:
14,960,000 (National Benevolent Association)
Series D, Variable Rate, 5.10%, 3/1/25 ... 14,960,000
950,000 (The Visiting Nurse Corp.), Variable Rate
6.10%, 7/1/22 ............................ 950,000
100,000 Denver City and County Multifamily
Housing Revenue, (Ogden Residences
Project), Variable Rate, 6.10%, 12/1/09 .. 100,000
1,000,000 Dove Valley Metropolitan District Arapahoe
County, Series B, 3.95%, 11/1/25 ......... 1,000,000
1,000,000 Interstate South Metropolitan District
Series B, 3.95%, 11/1/14 ................. 1,000,000
3,110,000 Stapleton Business Center Metropolitan
District, 4.00%, 12/1/17 ................. 3,110,000
31,535,000
Delaware - 1.1%
3,000,000 University of Delaware Revenue, 5.00%
3/15/03 .................................. 3,017,717
Florida - 3.7%
5,000,000 Gulf Breeze Healthcare Facilities Revenue
(Heritage Healthcare Project), Variable
Rate, 5.18%, 1/1/24+ ..................... 5,000,000
4,900,000 Palm Beach County Educational Facilities
Authority Revenue, (Atlantic College
Project), Variable Rate, 5.15%, 12/1/12 .. 4,900,000
9,900,000
Georgia - 4.2%
$ 1,200,000 Bartow County (Sales Tax), 4.40%, 5/1/01 .... $ 1,200,778
1,000,000 Cobb County School District, 6.00%, 2/1/01 .. 1,012,346
3,200,000 Marietta Housing Authority Multifamily
Revenue, Series A, Variable Rate, 5.05%
6/1/07 ................................... 3,200,000
5,000,000 South Georgia Hospital Authority Revenue
(Georgia Alliance Community Hospitals)
Series A, Variable Rate, 5.10%, 4/1/29 ... 5,000,000
1,000,000 Whitfield County Residential Care Facilities
for the Elderly Authority, (Royal Oaks
Senior Living Community), Variable Rate
5.10%, 11/1/25 ........................... 1,000,000
11,413,124
Hawaii - 1.0%
600,000 Hawaii Housing Finance and Development
Corp. Revenue, (Rental Housing System)
Series 89A, Variable Rate, 5.00%, 7/1/24 . 600,000
2,100,000 Hawaii, Series BS, 7.125%, 9/1/10 ........... 2,144,524
2,744,524
Illinois - 3.7%
5,400,000 Chicago Tax Increment, Series B, Variable
Rate, 5.10%, 12/1/14 ..................... 5,400,000
1,000,000 Illinois State, 5.375%, 5/1/00 .............. 1,000,000
1,000,000 Illinois State Civic Center, 4.15%, 12/15/00 1,000,000
2,400,000 Northlake Economic Development Revenue
(Dominick's Foods), Subseries B, Variable
Rate, 5.35%, 1/1/02 ...................... 2,400,000
9,800,000
Indiana - 4.7%
6,500,000 Indiana Health Facilities Financing
Authority Revenue, (Capital Access
Designated Pool), Variable Rate
5.05%, 1/1/20 ............................ 6,500,000
2,138,500 Kankakee Valley Independent School
Building Corp., (Tax Anticipation
Warrants), 4.70%, 12/29/00 ............... 2,142,594
1,000,000 Logansport Economic Development
Revenue, (Modine Manufacturing Co.
Project), Variable Rate, 4.60%, 1/1/08 ... 1,000,000
2,780,000 Winchester Revenue, (Hoosier Care II, Inc.)
10.375%, 6/1/20 .......................... 2,876,187
12,518,781
Iowa - 8.9%
Buffalo Pollution Control Revenue
(LaFarge Corp. Project):
3,000,000 Series A, Variable Rate, 5.35%, 10/1/00 .. 3,000,000
1,250,000 Series B, Variable Rate, 5.35%, 10/1/10 .. 1,250,000
10,800,000 Iowa Finance Authority Revenue
(Burlington Medical Center), Variable Rate
6.20%, 6/1/27 ............................ 10,800,000
Iowa Higher Education Loan
Authority Revenue:
3,000,000 (Private College Facilities - Briar Cliff)
Variable Rate, 5.15%, 6/1/19 ............. 3,000,000
4,710,000 (Private College Facilities - Wartburg
Project), Variable Rate, 6.00%, 3/1/30 ... 4,710,000
1,000,000 Muscatine County Pollution Control
Revenue, (Monsanto Co.), Variable Rate
5.25%, 10/1/07 ........................... 1,000,000
23,760,000
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 25
<PAGE>
Janus | Tax-Exempt Money Market Fund
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Kentucky - 3.0%
$ 1,000,000 Jeffersontown Lease Program Revenue
(Kentucky League of Cities Funding
Trust), Variable Rate, 5.05%, 3/1/30 ..... $ 1,000,000
5,000,000 Kentucky Economic Development Finance
Authority Health Facilities Revenue
(Baptist Convalescent Center), Variable
Rate, 4.97%, 12/1/19 ..................... 5,000,000
2,100,000 Louisville Multifamily Revenue, (Station
House Square), Variable Rate, 6.10%
7/15/19 .................................. 2,100,000
8,100,000
Louisiana - 0.7%
1,800,000 Ouachita Parish Industrial Development
Revenue, (McRae's, Inc. Project)
Variable Rate, 5.60%, 7/1/04 ............. 1,800,000
Michigan - 2.7%
1,015,000 Clarkston Community Schools
5.50%, 5/1/01 ............................ 1,026,746
6,300,000 Holland Economic Development Corp.
(Thrifty Holland, Inc.), Variable Rate
4.30%, 3/1/13 ............................ 6,300,000
7,326,746
Minnesota - 1.1%
1,000,000 Minnesota Rural Water Finance Corp.
(Public Projects Construction Notes)
4.25%, 9/1/00 ............................ 1,000,960
2,000,000 St. Louis Park Health Care Facilities
Revenue, (Nicollet Medical Center
Project), Series A, 8.625%, 1/1/21 ....... 2,057,265
3,058,225
Mississippi - 2.9%
500,000 Jackson, Series A, 5.20%, 5/1/00 ............ 500,000
390,000 Mississippi Board of Trustees of Institutions
of Higher Learning, Series B, 4.20%
1/15/01+ ................................. 390,000
7,000,000 Mississippi Business Finance Corp.
Revenue, (Mississippi College Project)
Series B, Variable Rate, 5.10%, 2/1/09 ... 7,000,000
7,890,000
Missouri - 3.9%
5,000,000 Missouri Development Finance Board Lease
Revenue, (Missouri Association Municipal
Utilities Lease), Variable Rate, 5.15%
12/1/22+ ................................. 5,000,000
2,200,000 Missouri Health and Educational Facilities
Authority Educational Facilities Revenue
(Washington University), Series C
Variable Rate, 5.80%, 3/1/40 ............. 2,200,000
3,250,000 Missouri Health and Educational Facilities
Authority School District Advance
Funding Project, (Jasper County School
District), Series G, 4.25%, 9/19/00 ...... 3,256,004
10,456,004
Nebraska - 0.4%
1,205,000 Lancaster County, 4.00%, 11/15/00 ........... 1,206,244
Nevada - 1.1%
$ 2,000,000 Clark County Economic Development
Revenue, (Lutheran Secondary School
Association Project), Variable Rate
5.20%, 2/1/30 ............................ $ 2,000,000
1,000,000 Las Vegas-Clark County Library District
Series A, 6.35%, 6/1/00 .................. 1,002,349
3,002,349
New Mexico - 1.0%
2,695,000 New Mexico Highway Community Tax
Revenue, Series B, 4.25%, 6/15/00 ........ 2,697,154
North Dakota - 0.2%
400,000 Grand Forks Hospital Facilities Revenue
(United Hospital Obligation Group
Project), Variable Rate, 6.00%, 12/1/16 .. 400,000
Ohio - 3.3%
1,000,000 Clinton County Hospital Revenue, (Ohio
Hospital Capital, Inc.), Variable Rate
5.10%, 6/1/28 ............................ 1,000,000
3,750,000 Indian Hill Economic Development Revenue
(Cincinnati Country Day School)
Variable Rate, 4.97%, 5/1/19 ............. 3,750,000
1,000,000 Marysville Exempt Village School District
(Bond Anticipation Notes), 3.61%, 6/1/00 . 1,000,254
3,000,000 Olentangy Local School District
4.875%, 9/15/00 .......................... 3,005,742
8,755,996
Oklahoma - 0.3%
800,000 Oklahoma City Industrial and Cultural
Facilities Trust Revenue, (Oklahoma
Christian College), Variable Rate
5.35%, 7/1/15 ............................ 800,000
Pennsylvania - 6.1%
5,000,000 Allegheny County Hospital Development
Authority Revenue, (South Hills Health
System), Variable Rate, 4.30%, 4/1/08 .... 5,000,000
5,785,000 Dauphin County General Authority, (Allied
Health Pooled Financing Program)
Series B, Variable Rate, 5.10%, 10/1/27 .. 5,785,000
1,600,000 Pennsylvania Higher Educational Facilities
Authority College and University
Revenue, (Carnegie - Mellon
University), 5.00%, 11/1/00 .............. 1,607,793
2,700,000 Pennsylvania Higher Educational Facilities
Authority Revenue, (Association of
Independent Colleges and Universities)
Series D-1, 4.35%, 5/1/29 ................ 2,700,000
1,300,000 Venango Industrial Development Authority
Pollution Control Revenue, (Pennzoil Co.
Project), Variable Rate, 4.85%, 12/1/12 .. 1,300,000
16,392,793
Rhode Island - 3.7%
10,000,000 Rhode Island Health and Educational
Building Corp. Educational Institution
Revenue, (St. George's School Issue)
Variable Rate, 5.25%, 9/1/30 ............. 10,000,000
South Carolina - 0.3%
900,000 Columbia Waterworks and Sewer System
Revenue, 7.10%, 2/1/12 ................... 936,177
See Notes to Schedules of Investments.
26 Janus Income Funds / April 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Tennessee - 3.3%
$ 200,000 Hamilton County Industrial Development
Revenue, (Komatsu America
Manufacturing Project), Variable Rate
5.25%, 11/1/05 ........................... $ 200,000
1,000,000 Hendersonville Industrial Development
Board Multifamily Housing Revenue
(Windsor Park Project), Variable Rate
5.05%, 2/15/28 ........................... 1,000,000
Metropolitan Nashville Airport Authority
Special Facilities Revenue, (American
Airlines Project):
600,000 Series A, Variable Rate, 6.00%, 10/1/12 .. 600,000
1,600,000 Series B, Variable Rate, 6.00%, 10/1/12 .. 1,600,000
2,000,000 Signal Mountain Health, Educational and
Housing Facilities Board of Revenue
(Alexian Village), Variable Rate
5.00%, 1/1/28 ............................ 2,000,000
500,000 Sullivan County Industrial Development
Board Pollution Control Revenue, (Mead
Corp. Project) Variable Rate, 5.95%
10/1/16 .................................. 500,000
3,000,000 White House Utilities District Robertson
and Sumner Counties Waterworks
4.50%, 6/1/00 ............................ 3,001,242
8,901,242
Texas - 9.3%
1,500,000 Bexar County Housing Finance Corp.
Multifamily Housing Revenue, (Mitchell
Village Apartments Project), Series A
Variable Rate, 5.00%, 2/15/30 ............ 1,500,000
935,000 Birdville Independent School District
4.25%, 2/15/01 ........................... 934,979
1,400,000 Brazos Harbor Industrial Development
Corp. Marine Term Revenue, (Monsanto
Co. Project), Variable Rate
5.25%, 3/1/21 ............................ 1,400,000
Grapevine Industrial Development Corp.
Revenue, (American Airlines):
1,000,000 Series A-1, Variable Rate, 6.00%, 12/1/24 1,000,000
200,000 Series A-3, Variable Rate, 6.00%, 12/1/24 200,000
500,000 Series B-1, Variable Rate, 6.00%, 12/1/24 500,000
500,000 Series B-2, Variable Rate, 6.00%, 12/1/24 500,000
200,000 Series B-3, Variable Rate, 6.00%, 12/1/24 200,000
1,200,000 Series B-4, Variable Rate, 6.00%, 12/1/24 1,200,000
Lone Star Airport Improvement Authority:
600,000 Series A-1, Variable Rate, 6.00%, 12/1/14 600,000
700,000 Series A-2, Variable Rate, 6.00%, 12/1/14 700,000
200,000 Series A-3, Variable Rate, 6.00%, 12/1/14 200,000
730,000 Series A-4, Variable Rate, 6.00%, 12/1/14 730,000
300,000 Series A-5, Variable Rate, 6.00%, 12/1/14 300,000
1,000,000 Series B-3, Variable Rate, 6.00%, 12/1/14 1,000,000
500,000 Series B-4, Variable Rate, 6.00%, 12/1/14 500,000
600,000 Series B-5, Variable Rate, 6.00%, 12/1/14 600,000
600,000 North Central Health Facilities Development
Corp. Revenue, (Presbyterian Medical
Center), Series C, Variable Rate
6.00%, 12/1/15 ........................... 600,000
Texas - (continued)
$ 950,000 San Antonio Electric and Gas, 5.25%, 2/1/01 . $ 956,910
2,915,000 San Antonio Independent School District
4.00%, 8/15/00 ........................... 2,917,096
1,000,000 San Antonio Water Revenue
zero coupon, 5/1/01 ...................... 977,812
3,000,000 Texas State, (Tax and Revenue Anticipation
Notes), Series A, 4.50%, 8/31/00 ......... 3,007,731
3,440,000 Texas State University System, (Constitutional
Appropriation), 4.50%, 8/15/00 ........... 3,449,653
1,000,000 Trinity River Authority Pollution Control
Revenue, (LaFarge Corp. Project)
Variable Rate, 4.70%, 6/1/02 ............. 1,000,000
24,974,181
Virginia - 3.8%
Suffolk Redevelopment and Housing
Authority Multifamily Housing Revenue:
4,903,000 (Rental-Windsor Fieldstone)
Variable Rate, 5.60%, 12/1/07 ............ 4,903,000
5,333,000 (Rental-Windsor Potomac)
Variable Rate, 5.60%, 12/1/07 ............ 5,333,000
10,236,000
Washington - 2.4%
600,000 Clark County School District No. 037
7.125%, 12/1/09 .......................... 609,581
5,900,000 Washington State Housing Finance Common
Multifamily Mortgage Revenue, (Mills
Plain Crossing Project), Variable Rate
4.75%, 1/1/10 ............................ 5,900,000
6,509,581
Wisconsin - 3.6%
2,600,000 Brown Deer School District, (Tax and
Revenue Anticipation Prommisory Notes)
4.05%, 10/27/00 .......................... 2,601,833
2,750,000 Rhinelander School District, (Tax and
Revenue Anticipation Promissory Notes)
3.80%, 9/28/00 ........................... 2,753,254
Wisconsin Health and Educational Facilities
Authority Revenue:
2,165,000 (Monroe Joint Venture, Inc.), Variable Rate
5.10%, 1/1/30 ............................ 2,165,000
2,100,000 (Wausau Hospitals, Inc.), Series B
6.70%, 8/15/20 ........................... 2,179,099
9,699,186
Wyoming - 0.8%
2,100,000 Lincoln County Pollution Control Revenue
(Exxon Project), Series C, Variable Rate
5.95%, 11/1/14 ........................... 2,100,000
--------------------------------------------------------------------------------
Total Investments (total cost $269,736,765) - 100.5% ........ 269,736,765
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.5%) (1,452,233)
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 268,284,532
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Income Funds / April 30, 2000 27
<PAGE>
Statements of | Operations - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Janus Federal Short-Term
For the six months ended April 30, 2000, (unaudited) Flexible Income High-Yield Tax-Exempt Bond
(all numbers in thousands) Fund Fund Fund Fund
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 46,613 $ 13,124 $ 2,350 $ 4,187
Dividends 770 51 -- --
-------------------------------------------------------------------------------------------------------------------
47,383 13,175 2,350 4,187
-------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 3,375 1,031 241 425
Transfer agent fees and expenses 1,189 292 91 159
Registration fees 26 57 52 30
Postage and mailing expenses 30 12 4 6
Custodian fees 60 31 18 20
Printing expenses 52 13 6 9
Audit fees 12 9 4 2
Trustees' fees and expenses 3 1 -- 1
Other expenses 20 10 8 8
-------------------------------------------------------------------------------------------------------------------
Total Expenses 4,767 1,456 424 660
-------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (202) (76) (13) (14)
-------------------------------------------------------------------------------------------------------------------
Net Expenses 4,565 1,380 411 646
-------------------------------------------------------------------------------------------------------------------
Less: Excess Expense Reimbursement -- (6) (151) (221)
-------------------------------------------------------------------------------------------------------------------
Net Expenses after Expense Reimbursement 4,565 1,374 260 425
-------------------------------------------------------------------------------------------------------------------
Net Investment Income 42,818 11,801 2,090 3,762
-------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions (28,049) 3,438 (3,005) (690)
Net realized gain/(loss) from foreign currency transactions 973 (389) -- --
Net realized gain from futures and/or options contracts 1,579 -- 66 --
Change in net unrealized appreciation/(depreciation)
of investments and foreign currency (8,716) 1,782 2,571 (482)
-------------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments (34,213) 4,831 (368) (1,172)
-------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 8,605 $ 16,632 $ 1,722 $ 2,590
-------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
28 Janus Income Funds / April 30, 2000
<PAGE>
Statements of | Assets & Liabilities - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Janus Federal Short-Term
As of April 30, 2000, (unaudited) Flexible Income High-Yield Tax-Exempt Bond
(all numbers in thousands except net asset value per share) Fund Fund Fund Fund
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments at cost $1,138,096 $ 269,928 $ 73,421 $ 126,118
---------------------------------------------------------------------------------------------------------------------------
Investments at value $1,102,951 $ 261,220 $ 70,213 $ 123,994
---------------------------------------------------------------------------------------------------------------------------
Cash 88 438 53 529
Receivables:
Investments sold 18,036 4,161 1,732 2,931
Fund shares sold 1,934 524 158 457
Interest 20,992 5,694 1,355 2,466
Due from advisor -- -- 9 --
Other assets 7 -- -- --
Forward currency contracts 573 -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total Assets 1,144,581 272,037 73,520 130,377
---------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 31,271 1,604 -- 5,023
Fund shares repurchased 2,691 1,258 306 877
Dividends 839 393 52 54
Advisory fee 532 158 -- 18
Transfer agent fee 204 46 11 25
Accrued expenses 133 52 47 34
Variation margin - futures contracts -- -- 23 --
---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 35,670 3,511 439 6,031
---------------------------------------------------------------------------------------------------------------------------
Net Assets $1,108,911 $ 268,526 $ 73,081 $ 124,346
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 122,254 26,306 11,015 44,252
---------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 9.07 $ 10.21 $ 6.63 $ 2.81
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / April 30, 2000 29
<PAGE>
Statements of | Changes in Net Assets - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
For the six months ended April 30, 2000, (unaudited) Flexible Income High-Yield
and for the fiscal year ended October 31 Fund Fund
(all numbers in thousands) 2000 1999 2000 1999
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 42,818 $ 82,789 $ 11,801 $ 25,150
Net realized gain/(loss) from investment transactions (25,497) (25,147) 3,049 (16,857)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency (8,716) (40,980) 1,782 11,471
------------------------------------------------------------------------------------------------------------------
Net Increase/Decrease in Net Assets Resulting
from Operations 8,605 16,662 16,632 19,764
------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income (42,701) (82,789) (11,735) (25,150)
Net realized gain from investment transactions -- -- -- --
Distributions (in excess of realized gains) -- (12,257) -- (128)
------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (42,701) (95,046) (11,735) (25,278)
------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 260,346 825,274 171,084 365,566
Reinvested dividends and distributions 36,390 82,496 8,958 20,506
Shares repurchased (433,127) (653,579) (180,889) (384,299)
------------------------------------------------------------------------------------------------------------------
Net Increase from Capital Share Transactions (136,391) 254,191 (847) 1,773
------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (170,487) 175,807 4,050 (3,741)
Net Assets:
Beginning of period 1,279,398 1,103,591 264,476 268,217
------------------------------------------------------------------------------------------------------------------
End of period $ 1,108,911 $ 1,279,398 $ 268,526 $ 264,476
------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 1,193,048 $ 1,329,438 $ 292,213 $ 293,059
Undistributed net investment income/(loss) 962 845 64 (2)
Undistributed net realized gain/(loss)
from investments (50,457) (24,960) (15,042) (18,090)
Unrealized depreciation of
investments and foreign currency (34,642) (25,925) (8,709) (10,491)
------------------------------------------------------------------------------------------------------------------
$ 1,108,911 $ 1,279,398 $ 268,526 $ 264,476
------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 27,966 84,300 16,628 34,587
Reinvested distributions 3,923 8,502 873 1,952
------------------------------------------------------------------------------------------------------------------
Total 31,889 92,802 17,501 36,539
------------------------------------------------------------------------------------------------------------------
Shares repurchased (46,480) (67,277) (17,569) (36,321)
Net Increase/(Decrease) in Fund Shares (14,591) 25,525 (68) 218
Shares Outstanding, Beginning of Period 136,845 111,320 26,374 26,156
------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 122,254 136,845 26,306 26,374
------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities
(excluding short-term securities):
Purchases of securities $ 494,986 $ 1,346,096 $ 398,716 $ 805,894
Proceeds from sales of securities 643,593 1,024,247 418,237 823,825
Purchases of long-term U.S. government obligations 209,767 223,265 -- 35,637
Proceeds from sales of long-term U.S.
government obligations 184,381 354,717 -- 41,215
<CAPTION>
Janus Janus
For the six months ended April 30, 2000, (unaudited) Federal Tax-Exempt Short-Term Bond
and for the fiscal year ended October 31 Fund Fund
(all numbers in thousands) 2000 1999 2000 1999
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 2,090 $ 4,901 $ 3,762 $ 7,599
Net realized gain/(loss) from investment transactions (2,939) (1,455) (690) (1,384)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency 2,571 (7,923) (482) (2,037)
------------------------------------------------------------------------------------------------------------------
Net Increase/Decrease in Net Assets Resulting
from Operations 1,722 (4,477) 2,590 4,178
------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income (2,090) (4,901) (3,762) (7,599)
Net realized gain from investment transactions -- -- -- --
Distributions (in excess of realized gains) -- -- -- --
------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (2,090) (4,901) (3,762) (7,599)
------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 24,306 89,632 117,527 248,335
Reinvested dividends and distributions 1,654 4,034 3,373 6,859
Shares repurchased (48,710) (79,714) (134,390) (253,671)
------------------------------------------------------------------------------------------------------------------
Net Increase from Capital Share Transactions (22,750) 13,952 (13,490) 1,523
------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (23,118) 4,574 (14,662) (1,898)
Net Assets:
Beginning of period 96,199 91,625 139,008 140,906
------------------------------------------------------------------------------------------------------------------
End of period $ 73,081 $ 96,199 $ 124,346 $ 139,008
------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 81,166 $ 103,917 $ 130,972 $ 144,462
Undistributed net investment income/(loss) -- -- -- --
Undistributed net realized gain/(loss)
from investments (4,900) (1,961) (4,501) (3,811)
Unrealized depreciation of
investments and foreign currency (3,185) (5,757) (2,125) (1,643)
------------------------------------------------------------------------------------------------------------------
$ 73,081 $ 96,199 $ 124,346 $ 139,008
------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 3,651 12,550 41,510 86,489
Reinvested distributions 249 570 1,191 2,392
------------------------------------------------------------------------------------------------------------------
Total 3,900 13,120 42,701 88,881
------------------------------------------------------------------------------------------------------------------
Shares repurchased (7,338) (11,262) (47,484) (88,343)
Net Increase/(Decrease) in Fund Shares (3,438) 1,858 (4,783) 538
Shares Outstanding, Beginning of Period 14,453 12,595 49,035 48,497
------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 11,015 14,453 44,252 49,035
------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities
(excluding short-term securities):
Purchases of securities $ 37,206 $ 50,205 $ 74,669 $ 74,926
Proceeds from sales of securities 63,160 38,168 94,188 40,836
Purchases of long-term U.S. government obligations 13,359 21,460 15,739 57,745
Proceeds from sales of long-term U.S.
government obligations 13,313 21,100 7,897 92,054
</TABLE>
See Notes to Financial Statements.
30 Janus Income Funds / April 30, 2000
<PAGE>
Financial | Highlights - Bond Funds
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and Janus Flexible Income Fund
through each fiscal year ended October 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.35 $ 9.91 $ 10.00 $ 9.65 $ 9.55 $ 8.96
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .34 .63 .67 .69 .73 .72
Net gains or (losses) on securities
(both realized and unrealized) (.28) (.45) .12 .37 .10 .59
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .18 .79 1.06 .83 1.31
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.34) (.63) (.67) (.69) (.73) (.72)
Distributions (from capital gains) -- -- (.21) (.02) -- --
Distributions (in excess of capital gains) -- (.11) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.34) (.74) (.88) (.71) (.73) (.72)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.07 $ 9.35 $ 9.91 $ 10.00 $ 9.65 $ 9.55
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 0.59% 1.75% 8.14% 11.48% 9.01% 15.35%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,108,911 $ 1,279,398 $ 1,103,591 $ 727,101 $ 603,655 $ 580,359
Average Net Assets for the Period
(in thousands) $ 1,179,573 $ 1,266,098 $ 892,853 $ 656,422 $ 603,694 $ 450,001
Ratio of Gross Expenses to Average
Net Assets**(1) 0.81% 0.82% 0.84% 0.87% 0.88% 0.96%
Ratio of Net Expenses to Average
Net Assets**(1) 0.78% 0.81% 0.82% 0.86% 0.87% 0.96%
Ratio of Net Investment Income to
Average Net Assets** 7.30% 6.54% 6.68% 7.10% 7.60% 7.91%
Portfolio Turnover Rate** 131% 119% 148% 207% 214% 250%
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and Janus High-Yield Fund
through each fiscal year or period ended October 31 2000 1999 1998 1997 1996(2)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.03 $ 10.25 $ 11.83 $ 11.12 $ 10.00
----------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .44 .89 .90 .97 .80
Net gains or (losses) on securities
(both realized and unrealized) .18 (.22) (1.02) .82 1.12
----------------------------------------------------------------------------------------------------------------------
Total from Investmet Operations .62 .67 (.12) 1.79 1.92
----------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.44) (.89) (.90) (.97) (.80)
Distributions (from capital gains) -- -- (.56) (.11) --
----------------------------------------------------------------------------------------------------------------------
Total Distributions (.44) (.89) (1.46) (1.08) (.80)
----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.21 $ 10.03 $ 10.25 $ 11.83 $ 11.12
----------------------------------------------------------------------------------------------------------------------
Total Return* 6.20% 6.34% (1.45%) 16.94% 19.71%
----------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 268,526 $ 264,476 $ 268,217 $ 301,422 $ 210,933
Average Net Assets for the Period
(in thousands) $ 276,374 $ 296,586 $ 380,942 $ 266,213 $ 88,126
Ratio of Gross Expenses to
Average Net Assets**(1) 1.06%(3) 1.02%(3) 0.99%(3) 1.03%(3) 1.01%(3)
Ratio of Net Expenses to Average
Net Assets**(1) 1.00% 1.00% 0.96% 1.00% 1.00%
Ratio of Net Investment Income
to Average Net Assets** 8.59% 8.48% 7.85% 8.45% 9.00%
Portfolio Turnover Rate** 358% 310% 336% 404% 324%
</TABLE>
(1) See "Explanation of the Charts and Tables."
(2) Fiscal period December 29, 1995 (inception) to October 31, 1996.
(3) The ratio was 1.06% in 2000, 1.05% in 1999, N/A in 1998, 1.04% in 1997 and
1.18% in 1996 before waiver of certain fees incurred by the Fund.
* Total return not annualized for periods of less than one year.
** Annualized for periods less than one year.
See Notes to Financial Statements.
Janus Income Funds / April 30, 2000 31
<PAGE>
Financial | Highlights - Bond Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and Janus Federal Tax-Exempt Fund
through each fiscal year ended October 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 6.66 $ 7.27 $ 7.09 $ 6.92 $ 6.88 $ 6.45
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .17 .34 .34 .35 .36 .36
Net gains or (losses) on securities
(both realized and unrealized) (.03) (.61) .18 .17 .04 .43
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .14 (.27) .52 .52 .40 .79
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.17) (.34) (.34) (.35) (.36) (.36)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.17) (.34) (.34) (.35) (.36) (.36)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 6.63 $ 6.66 $ 7.27 $ 7.09 $ 6.92 $ 6.88
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.16% (4.04%) 7.65% 7.72% 5.94% 12.60%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 73,081 $ 96,199 $ 91,625 $ 62,055 $ 44,858 $ 32,593
Average Net Assets for the Period
(in thousands) $ 80,665 $ 102,366 $ 74,133 $ 53,574 $ 36,312 $ 29,318
Ratio of Gross Expenses to Average
Net Assets**(1) 0.68%(2) 0.66%(2) 0.67%(2) 0.66%(2) 0.68%(2) 0.70%(2)
Ratio of Net Expenses to Average
Net Assets**(1) 0.65% 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to
Average Net Assets** 5.21% 4.79% 4.76% 5.00% 5.18% 5.43%
Portfolio Turnover Rate** 134% 62% 227% 304% 225% 164%
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and Janus Short-Term Bond Fund
through each fiscal year ended October 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 2.83 $ 2.91 $ 2.90 $ 2.86 $ 2.84 $ 2.87
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .08 .16 .17 .17 .16 .18
Net gains or (losses) on securities
(both realized and unrealized) (.02) (.08) .01 .04 .02 (.03)
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .08 .18 .21 .18 .15
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.08) (.16) (.17) (.17) (.16) (.18)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.08) (.16) (.17) (.17) (.16) (.18)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 2.81 $ 2.83 $ 2.91 $ 2.90 $ 2.86 $ 2.84
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.17% 2.82% 6.49% 7.70% 6.49% 5.55%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 124,346 $ 139,008 $ 140,906 $ 57,908 $ 40,784 $ 48,117
Average Net Assets for the Period
(in thousands) $ 131,445 $ 135,882 $ 89,556 $ 48,421 $ 42,203 $ 47,383
Ratio of Gross Expenses to Average
Net Assets**(1) 0.67%(3) 0.66%(3) 0.67%(3) 0.67%(3) 0.67%(3) 0.66%(3)
Ratio of Net Expenses to Average
Net Assets**(1) 0.65% 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to
Average Net Assets** 5.76% 5.59% 5.91% 6.03% 5.57% 6.67%
Portfolio Turnover Rate** 144% 101% 101% 133% 486% 337%
</TABLE>
(1) See "Explanation of Charts and Tables."
(2) The ratio was 1.06% in 2000, 1.01% in 1999, 0.99% in 1998, 1.11% in 1997,
1.14% in 1996 and 1.31% in 1995 before waiver of certain fees incurred by
the Fund.
(3) The ratio was 1.01% in 2000, 1.03% in 1999, 1.06% in 1998, 1.20% in 1997,
1.23% in 1996 and 1.23% in 1995 before waiver of certain fees incurred by
the Fund.
* Total return not annualized for periods of less than one year.
** Annualized for periods less than one year.
See Notes to Financial Statements.
32 Janus Income Funds / April 30, 2000
<PAGE>
Statements of | Operations - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Government Tax-Exempt
For the six months ended April 30, 2000, (unaudited) Money Market Money Market Money Market
(all numbers in thousands) Fund Fund Fund
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest $256,538 $ 33,223 $ 4,522
-------------------------------------------------------------------------------------------------
256,538 33,223 4,522
-------------------------------------------------------------------------------------------------
Expenses:
Advisory fee for investor shares 1,336 172 80
Advisory fee for institutional shares 2,943 370 37
Advisory fee for service shares 22 30 --
Administrative fee for investor shares 6,680 858 400
Administrative fee for institutional shares 1,472 185 19
Administrative fee for service shares 11 15 --
Service fee for service shares 54 74 1
Audit fees 8 4 4
Trustees' fees and expenses 36 5 1
-------------------------------------------------------------------------------------------------
Total Expenses 12,562 1,713 542
-------------------------------------------------------------------------------------------------
Net Investment Income 243,976 31,510 3,980
-------------------------------------------------------------------------------------------------
Net Realized Gain/(Loss) on Investments:
Net realized gain from investment transactions 462 53 --
-------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $244,438 $ 31,563 $ 3,980
-------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / April 30, 2000 33
<PAGE>
Statements of | Assets & Liabilities - Money Market Funds
Janus Janus
As of April 30, 2000, (unaudited) Janus Government Tax-Exempt
(all numbers in thousands except Money Market Money Market Money Market
net asset value per share) Fund Fund Fund
--------------------------------------------------------------------------------
Assets:
Investments at amortized cost $10,412,138 $ 1,097,895 $ 269,737
Cash 342 108 31
Receivables:
Investments sold 39,904 -- --
Fund shares sold 44,973 1,347 1,163
Interest 68,101 2,696 1,858
--------------------------------------------------------------------------------
Total Assets 10,565,458 1,102,046 272,789
--------------------------------------------------------------------------------
Liabilities:
Payables
Investments purchased 214,439 -- 3,563
Fund shares repurchased 26,131 4,590 815
Dividends and distributions 20,146 1,674 33
Advisory fees 840 94 21
Administrative fees 1,584 175 72
Service fees 8 14 --
Audit fees 6 2 --
Trustees' fees and expenses 47 2 --
--------------------------------------------------------------------------------
Total Liabilities 263,201 6,551 4,504
--------------------------------------------------------------------------------
Net Assets $10,302,257 $ 1,095,495 $ 268,285
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 10,302,122 1,095,442 268,285
--------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------------------
See Notes to Financial Statements.
34 Janus Income Funds / April 30, 2000
<PAGE>
Statements of | Changes in Net Assets - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus Government
For the six months ended April 30, 2000, (unaudited) Money Market Money Market
and for the fiscal year ended October 31 Fund Fund
(all numbers in thousands) 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 243,976 $ 359,404 $ 31,510 $ 50,548
Net realized gain from investment transactions 462 164 53 28
-----------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 244,438 359,568 31,563 50,576
-----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares (71,631) (83,421) (8,934) (10,389)
Institutional Shares (171,144) (274,477) (20,967) (38,030)
Service Shares (1,201) (1,506) (1,609) (2,129)
Net realized gain from investment transactions:
Investor Shares (103) (35) -- (5)
Institutional Shares (223) (128) -- (21)
Service Shares (1) (1) -- (2)
-----------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (244,303) (359,568) (31,510) (50,576)
-----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold:
Investor Shares 8,450,929 8,897,000 476,629 567,007
Institutional Shares 60,672,428 132,210,692 4,409,018 5,587,450
Service Shares 481,960 303,125 164,785 86,689
Reinvested dividends and distributions:
Investor Shares 66,787 78,472 8,518 9,920
Institutional Shares 42,127 60,951 5,032 6,278
Service Shares 1,193 1,495 11 28
Shares repurchased:
Investor Shares (7,777,379) (8,158,386) (500,929) (429,562)
Institutional Shares (58,007,826) (132,746,602) (4,475,027) (5,652,910)
Service Shares (464,904) (318,392) (166,030) (38,144)
-----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 3,465,315 328,355 (77,993) 136,756
-----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 3,465,450 328,355 (77,940) 136,756
Net Assets:
Beginning of Period 6,836,807 6,508,452 1,173,435 1,036,679
-----------------------------------------------------------------------------------------------------------------------
End of Period $ 10,302,257 $ 6,836,807 $ 1,095,495 $ 1,173,435
-----------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 10,302,122 $ 6,836,807 $ 1,095,442 $ 1,173,435
Undistributed net realized gain from investments 135 -- 53 --
-----------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 10,302,257 $ 6,836,807 $ 1,095,495 $ 1,173,435
-----------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares - Investor Shares:
Shares sold 8,450,929 8,897,000 476,629 567,007
Reinvested dividends and distributions 66,787 78,472 8,518 9,920
-----------------------------------------------------------------------------------------------------------------------
Total 8,517,716 8,975,472 485,147 576,927
-----------------------------------------------------------------------------------------------------------------------
Shares repurchased (7,777,379) (8,158,386) (500,929) (429,562)
Net Increase/(Decrease) in Fund Shares 740,337 817,086 (15,782) 147,365
Shares Outstanding, Beginning of Period 2,309,109 1,492,023 360,604 213,239
-----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 3,049,446 2,309,109 344,822 360,604
-----------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares - Institutional Shares:
Shares sold 60,672,428 132,210,692 4,409,019 5,587,450
Reinvested dividends and distributions 42,127 60,951 5,032 6,278
-----------------------------------------------------------------------------------------------------------------------
Total 60,714,555 132,271,643 4,414,051 5,593,728
-----------------------------------------------------------------------------------------------------------------------
Shares repurchased (58,007,826) (132,746,602) (4,475,027) (5,652,910)
Net Increase/(Decrease) in Fund Shares 2,706,729 (474,959) (60,976) (59,182)
Shares Outstanding, Beginning of Period 4,498,950 4,973,909 761,488 820,670
-----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 7,205,679 4,498,950 700,512 761,488
-----------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares - Service Shares:
Shares sold 481,960 303,125 164,784 86,689
Reinvested dividends and distributions 1,193 1,495 11 28
-----------------------------------------------------------------------------------------------------------------------
Total 483,153 304,620 164,795 86,717
-----------------------------------------------------------------------------------------------------------------------
Shares repurchased (464,904) (318,392) (166,030) (38,144)
Net Increase/(Decrease) in Fund Shares 18,249 (13,772) (1,235) 48,573
Shares Outstanding, Beginning of Period 28,748 42,520 51,343 2,770
-----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 46,997 28,748 50,108 51,343
-----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus Tax-Exempt
For the six months ended April 30, 2000, (unaudited) Money Market
and for the fiscal year ended October 31 Fund
(all numbers in thousands) 2000 1999
-------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income $ 3,980 $ 6,562
Net realized gain from investment transactions -- 2
-------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 3,980 6,564
-------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares (2,584) (3,446)
Institutional Shares (1,381) (2,989)
Service Shares (15) (127)
Net realized gain from investment transactions:
Investor Shares -- (2)
Institutional Shares -- --
Service Shares -- --
-------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (3,980) (6,564)
-------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold:
Investor Shares 281,088 309,165
Institutional Shares 215,560 547,727
Service Shares 576 1,260
Reinvested dividends and distributions:
Investor Shares 2,470 3,301
Institutional Shares 1,266 2,803
Service Shares 16 125
Shares repurchased:
Investor Shares (262,005) (270,821)
Institutional Shares (256,706) (452,985)
Service Shares (542) (18,039)
-------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (18,277) 122,536
-------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (18,277) 122,536
Net Assets:
Beginning of Period 286,562 164,026
-------------------------------------------------------------------------------------
End of Period $ 268,285 $ 286,562
-------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 268,285 $ 286,562
Undistributed net realized gain from investments -- --
-------------------------------------------------------------------------------------
Total Net Assets $ 268,285 $ 286,562
-------------------------------------------------------------------------------------
Transactions in Fund Shares - Investor Shares:
Shares sold 281,088 309,165
Reinvested dividends and distributions 2,470 3,301
-------------------------------------------------------------------------------------
Total 283,558 312,466
-------------------------------------------------------------------------------------
Shares repurchased (262,005) (270,821)
Net Increase/(Decrease) in Fund Shares 21,553 41,645
Shares Outstanding, Beginning of Period 146,656 105,011
-------------------------------------------------------------------------------------
Shares Outstanding, End of Period 168,209 146,656
-------------------------------------------------------------------------------------
Transactions in Fund Shares - Institutional Shares:
Shares sold 215,560 547,727
Reinvested dividends and distributions 1,266 2,803
-------------------------------------------------------------------------------------
Total 216,826 550,530
-------------------------------------------------------------------------------------
Shares repurchased (256,706) (452,985)
Net Increase/(Decrease) in Fund Shares (39,880) 97,545
Shares Outstanding, Beginning of Period 138,864 41,319
-------------------------------------------------------------------------------------
Shares Outstanding, End of Period 98,984 138,864
-------------------------------------------------------------------------------------
Transactions in Fund Shares - Service Shares:
Shares sold 576 1,260
Reinvested dividends and distributions 16 125
-------------------------------------------------------------------------------------
Total 592 1,385
-------------------------------------------------------------------------------------
Shares repurchased (542) (18,039)
Net Increase/(Decrease) in Fund Shares 50 (16,654)
Shares Outstanding, Beginning of Period 1,042 17,696
-------------------------------------------------------------------------------------
Shares Outstanding, End of Period 1,092 1,042
-------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / April 30, 2000 35
<PAGE>
Financial | Highlights - Money Market Funds
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Money Market Fund
Investor Shares 2000 1999 1998 1997 1996 1995(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .03 .05 .05 .05 .05 .04
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .05 .05 .05 .05 .04
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.03) (.05) (.05) (.05) (.05) (.04)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.03) (.05) (.05) (.05) (.05) (.04)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.69% 4.69% 5.25% 5.23% 5.13% 3.95%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 3,049,490 $ 2,309,109 $ 1,492,023 $ 1,032,647 $ 773,887 $ 643,219
Average Net Assets for the Period
(in thousands) $ 2,686,820 $ 1,808,653 $ 1,123,991 $ 883,052 $ 676,334 $ 461,311
Ratio of Expenses to Average
Net Assets**(2) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3)
Ratio of Net Investment Income to
Average Net Assets**(2) 5.36% 4.61% 5.13% 5.09% 5.01% 5.56%
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Government Money Market Fund
Investor Shares 2000 1999 1998 1997 1996 1995(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .03 .04 .05 .05 .05 .04
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .04 .05 .05 .05 .04
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.03) (.04) (.05) (.05) (.05) (.04)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.03) (.04) (.05) (.05) (.05) (.04)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.62% 4.56% 5.12% 5.11% 5.03% 3.90%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 344,836 $ 360,604 $ 213,239 $ 132,133 $ 117,408 $ 199,307
Average Net Assets for the Period
(in thousands) $ 345,097 $ 230,784 $ 150,525 $ 112,693 $ 112,059 $ 87,906
Ratio of Expenses to Average
Net Assets**(2) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3)
Ratio of Net Investment Income to
Average Net Assets**(2) 5.21% 4.50% 5.01% 5.42% 4.91% 5.40%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period February 15, 1995, (inception) to October 31, 1995.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .70% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
36 Janus Income Funds / April 30, 2000
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Tax-Exempt Money Market Fund
Investor Shares 2000 1999 1998 1997 1996 1995(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .02 .03 .03 .03 .03 .02
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .02 .03 .03 .03 .03 .02
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.03) (.03) (.03) (.03) (.02)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.02) (.03) (.03) (.03) (.03) (.02)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 1.62% 2.83% 3.23% 3.20% 3.27% 2.40%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 168,209 $ 146,656 $ 105,011 $ 81,268 $ 74,638 $ 67,479
Average Net Assets for the Period
(in thousands) $ 160,854 $ 122,946 $ 91,058 $ 75,929 $ 68,695 $ 57,366
Ratio of Expenses to Average
Net Assets**(2) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3) 0.60%(3)
Ratio of Net Investment Income to
Average Net Assets**(2) 3.23% 2.80% 3.16% 3.14% 3.22% 3.38%
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Money Market Fund
Institutional Shares 2000 1999 1998 1997 1996 1995(4)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .03 .05 .06 .06 .05 .03
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .05 .06 .06 .05 .03
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.03) (.05) (.06) (.06) (.05) (.03)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.03) (.05) (.06) (.06) (.05) (.03)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.92% 5.16% 5.72% 5.71% 5.61% 3.25%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 7,205,769 $ 4,498,950 $ 4,973,909 $ 2,770,961 $ 1,705,610 $ 304,952
Average Net Assets for the Period
(in thousands) $ 5,918,455 $ 5,445,434 $ 3,620,872 $ 2,545,294 $ 874,431 $ 202,427
Ratio of Expenses to Average
Net Assets**(2) 0.15%(5) 0.15%(5) 0.15%(5) 0.15%(5) 0.15%(5) 0.15%(5)
Ratio of Net Investment Income to Average
Net Assets**(2) 5.82% 5.04% 5.58% 5.54% 5.41% 5.86%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period February 15, 1995, (inception) to October 31, 1995.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .70% before waiver of certain fees incurred by the fund.
(4) Fiscal period April 17, 1995 (inception) to October 31, 1995.
(5) The ratio was .35% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
Janus Income Funds / April 30, 2000 37
<PAGE>
Financial | Highlights - Money Market Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Government Money Market Fund
Institutional Shares 2000 1999 1998 1997 1996 1995(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .03 .05 .05 .05 .05 .03
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .05 .05 .05 .05 .03
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.03) (.05) (.05) (.05) (.05) (.03)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.03) (.05) (.05) (.05) (.05) (.03)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.85% 5.03% 5.59% 5.58% 5.50% 3.20%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 700,549 $ 761,488 $ 820,670 $ 35,776 $ 59,490 $ 44,164
Average Net Assets for the Period
(in thousands) $ 744,528 $ 770,224 $ 321,174 $ 56,801 $ 53,398 $ 24,748
Ratio of Expenses to Average
Net Assets**(2) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3)
Ratio of Net Investment Income
to Average Net Assets**(2) 5.66% 4.94% 5.42% 6.04% 5.34% 5.75%
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Tax-Exempt Money Market Fund
Institutional Shares 2000 1999 1998 1997 1996 1995(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .02 .03 .04 .04 .04 .02
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .02 .03 .04 .04 .04 .02
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.03) (.04) (.04) (.04) (.02)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.02) (.03) (.04) (.04) (.04) (.02)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 1.85% 3.29% 3.67% 3.67% 3.74% 2.09%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 98,984 $ 138,864 $ 41,319 $ 3,560 $ 1,947 $ 11,192
Average Net Assets for the Period
(in thousands) $ 74,614 $ 91,837 $ 18,859 $ 3,466 $ 1,754 $ 1,115
Ratio of Expenses to Average
Net Assets**(2) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3)
Ratio of Net Investment Income
to Average Net Assets**(2) 3.72% 3.25% 3.60% 3.94% 3.82% 3.82%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period April 17, 1995, (inception) to October 31, 1995.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .35% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
38 Janus Income Funds / April 30, 2000
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Money Market Fund
Service Shares 2000 1999 1998 1997(1)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .03 .05 .05 .05
------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .05 .05 .05
------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.03) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.03) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------
Total Return* 2.79% 4.89% 5.45% 5.14%
------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 46,998 $ 28,748 $ 42,520 $ 10,341
Average Net Assets for the Period
(in thousands) $ 43,642 $ 31,250 $ 29,322 $ 913
Ratio of Expenses to Average
Net Assets**(2) 0.40%(3) 0.40%(3) 0.40%(3) 0.40%(3)
Ratio of Net Investment Income
to Average Net Assets**(2) 5.53% 4.82% 5.30% 5.02%
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Government Money Market Fund
Service Shares 2000 1999 1998 1997(1)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .03 .05 .05 .05
------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .05 .05 .05
------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.03) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.03) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------
Total Return* 2.72% 4.77% 5.33% 5.01%
------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 50,111 $ 51,343 $ 2,770 $ 628
Average Net Assets for the Period
(in thousands) $ 60,074 $ 45,587 $ 639 $ 1,141
Ratio of Expenses to Average
Net Assets**(2) 0.40%(3) 0.40%(3) 0.40%(3) 0.40%(3)
Ratio of Net Investment Income
to Average Net Assets**(2) 5.39% 4.67% 5.15% 5.23%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period November 22, 1996, (inception) to October 31, 1997.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .60% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
Janus Income Funds / April 30, 2000 39
<PAGE>
Financial | Highlights - Money Market Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended April 30, 2000 (unaudited) and
through each fiscal year or period ended October 31 Janus Tax-Exempt Money Market Fund
Service Shares 2000 1999 1998 1997(1)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .02 .03 .03 .03
------------------------------------------------------------------------------------------------------
Total from Investment Operations .02 .03 .03 .03
------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.02) (.03) (.03) (.03)
------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.02) (.03) (.03) (.03)
------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------
Total Return* 1.72% 3.06% 3.44% 3.22%
------------------------------------------------------------------------------------------------------
Net Assets at End of Period
(in thousands) $ 1,092 $ 1,042 $ 17,696 $ 10
Average Net Assets for the Period
(in thousands) $ 907 $ 4,090 $ 3,215 $ 10
Ratio of Expenses to Average
Net Assets**(2) 0.40%(3) 0.40%(3) 0.40%(3) 0.40%(3)
Ratio of Net Investment Income
to Average Net Assets**(2) 3.45% 3.10% 3.32% 3.17%
</TABLE>
* Total return is not annualized for periods of less than one year.
** Annualized for periods less than one year.
(1) Fiscal period November 22, 1996, (inception) to October 31, 1997.
(2) See "Explanation of Charts and Tables."
(3) The ratio was .60% before waiver of certain fees incurred by the fund.
See Notes to Financial Statements.
40 Janus Income Funds / April 30, 2000
<PAGE>
Notes to | Schedules of Investments
EUR Euro
GBP British Pounds
* Non-income-producing security.
** A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts, forward
currency contracts and/or swap spread lock agreements.
+ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
Variable Rate Notes. The interest rate, which is based on specific, or an index
of, market interest rates, is subject to change. Rates in the security
description are as of April 30, 2000.
Money market funds may hold securities with stated maturities of greater than
397 days when those securities have features that allow a fund to "put" back the
security to the issuer or to a third party within 397 days of acquisition. The
maturity dates shown in the security descriptions are the stated maturity dates.
Repurchase Agreements held by a fund are fully collateralized, and such
collateral is in the possession of the fund's custodian. The collateral is
evaluated daily to ensure its market value exceeds the current market value of
the repurchase agreements, including accrued interest. In the event of default
on the obligation to repurchase, the fund has the right to liquidate the
collateral and apply the proceeds in satisfaction of the obligation. In the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
Janus Income Funds / April 30, 2000 41
<PAGE>
Notes to | Financial Statements
The following section describes the organization and significant accounting
policies of the Funds and provides more detailed information about the schedules
and tables that appear throughout this report. In addition, the Notes explain
how the Funds operate and the methods used in preparing and presenting this
report.
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Janus Investment Fund (the "Trust") is registered under the Investment
Company Act of 1940 (the "1940 Act") as a no-load, open-end management
investment company. Four series of shares (the "Bond Funds") included in
this report invest primarily in income-producing securities, and three
series of shares (the "Money Market Funds") invest exclusively in
high-quality money market instruments. Each of the Money Market Funds
offers three classes of shares.
"Investor Shares" are available to the general public, and "Institutional
Shares" are available only to investors that meet certain minimum account
sizes. "Service Shares" are available through banks and other financial
institutions.
The following policies have been consistently followed by the Funds and are
in conformity with accounting principles generally accepted in the
investment company industry.
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a
principal exchange (U.S. or foreign) and on the NASDAQ National Market.
Securities traded on over-the-counter markets and listed securities for
which no sales are reported are valued at the latest bid price (or yield
equivalent thereof) obtained from one or more dealers making a market for
such securities or by a pricing service approved by the Funds' Trustees.
Short-term investments maturing within 60 days for the Bond Funds and all
money market securities in the Money Market Funds are valued at amortized
cost, which approximates market value. Foreign securities are converted to
U.S. dollars using exchange rates at the close of the New York Stock
Exchange. When market quotations are not readily available, securities are
valued at fair value as determined in good faith by the Funds' Trustees.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold.
Dividend income is recorded on the ex-dividend date. Certain dividends from
foreign securities will be recorded as soon as the Trust is informed of the
dividend if such information is obtained subsequent to the ex-dividend
date. Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. Gains and losses are determined on
the identified cost basis, which is the same basis used for federal income
tax purposes.
FORWARD TRANSACTIONS AND FUTURES CONTRACTS
The Bond Funds may enter into forward currency contracts in order to reduce
their exposure to changes in foreign currency exchange rates on their
foreign portfolio holdings and to lock in the U.S. dollar cost of firm
purchase and sale commitments for securities denominated in foreign
currencies. A forward currency contract is a commitment to purchase or sell
a foreign currency at a future date at a negotiated rate. The gain or loss
arising from the difference between the U.S. dollar cost of the original
contract and the value of the foreign currency in U.S. dollars upon closing
of such contract is included in net realized gain or loss on foreign
currency transactions.
Forward currency contracts held by the Funds are fully collateralized by
other securities, which are denoted in the accompanying Schedule of
Investments. Such collateral is in the possession of the Fund's custodian.
The collateral is evaluated daily to ensure its market value equals or
exceeds the current market value of the corresponding forward currency
contracts.
Currency gain and loss are also calculated on payables and receivables that
are denominated in foreign currencies. The payables and receivables are
generally related to security transactions and income.
Futures contracts are marked to market daily, and the variation margin is
recorded as an unrealized gain or loss. When a contract is closed, a
realized gain or loss is recorded equal to the difference between the
opening and closing value of the contract. Generally, open forward and
futures contracts are marked to market for federal income tax purposes at
fiscal year-end.
Foreign-denominated assets and forward currency contracts may involve more
risks than domestic transactions, including currency risk, political and
economic risk, regulatory risk and market risk. Risks may arise from the
potential inability of a counterparty to meet the terms of a contract and
from unanticipated movements in the value of foreign currencies relative to
the U.S. dollar.
The Bond Funds may enter into "futures contracts" and "options" on
securities, financial indexes, foreign currencies, forward contracts and
interest rate swaps and swap-related products. The Bond Funds intend to 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.
42 Janus Income Funds / April 30, 2000
<PAGE>
ADDITIONAL INVESTMENT RISK
Janus High-Yield Fund and Janus Flexible Income Fund may be invested in
lower-rated debt securities that have a higher risk of default or loss of
value because of changes in the economy or in their respective industry.
DIVIDEND DISTRIBUTIONS AND EXPENSES
Dividends are declared daily and distributed monthly. Each Bond Fund bears
expenses incurred specifically on its behalf as well as a portion of
general expenses.
FEDERAL INCOME TAXES
The Funds intend to distribute to shareholders all taxable investment
income and realized gains and otherwise comply with the Internal Revenue
Code applicable to regulated investment companies.
ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
2. INVESTMENT ADVISORY AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The advisory agreements with the Bond Funds describe the fee that the Funds
must pay. Each of the Bond Funds is subject to the following schedule:
Average
Daily Net Annual Rate Expense Limit
Fee Schedule Assets of Fund Percentage (%) Percentage (%)
---------------------------------------------------------------------------
Janus Flexible First $300 Million .65 1.00*
Income Fund Over $300 Million .55
---------------------------------------------------------------------------
Janus High-Yield Fund First $300 Million .75 1.00*
Over $300 Million .65
---------------------------------------------------------------------------
Janus Federal First $300 Million .60 .65*
Tax-Exempt Fund Over $300 Million .55
---------------------------------------------------------------------------
Janus Short-Term First $300 Million .65 .65*
Bond Fund Over $300 Million .55
---------------------------------------------------------------------------
* Janus Capital will waive certain fees and expenses to the extent that
net expenses exceed the stated limits.
Each of the Money Market Funds pays Janus Capital .20% of average daily net
assets as an investment advisory fee. Janus Capital has agreed to reduce
its advisory fee for each of the Janus Money Market Funds to .10%. In
addition, each class of shares of each Money Market Fund pays Janus Capital
an administrative fee. This fee is .50%, .15%, and .40% of average daily
net assets for the Investor Shares, Institutional Shares, and Service
Shares, respectively. Janus Capital has agreed to reduce the administrative
fee to .05% and .30% on the Institutional Shares and Service Shares,
respectively. All other expenses of the Money Market Funds except Trustees
fees and expenses, audit fees and interest expenses are paid by Janus
Capital.
Janus Service Corporation ("Janus Service"), a wholly owned subsidiary of
Janus Capital, receives an annual fee of 0.16% of average net assets per
fund plus $4.00 per shareholder account from each Bond Fund for transfer
agent services plus reimbursement of certain out-of-pocket expenses.
Officers and certain trustees of the Funds are also officers and/or
directors of Janus Capital; however, they receive no compensation from the
Funds.
DST Systems, Inc. (DST), an affiliate of Janus Capital through a degree of
common ownership, provides fund accounting and shareholder accounting
systems to the Funds through Janus Capital and Janus Service. Fees paid to
DST for the period ended April 30, 2000, are noted below.
DST Fees
Janus Flexible Income Fund $85,548
Janus High-Yield Fund 32,868
Janus Federal Tax-Exempt Fund 15,137
Janus Short-Term Bond Fund 24,753
Janus Income Funds / April 30, 2000 43
<PAGE>
Notes to | Financial Statements (continued)
3. FEDERAL INCOME TAX
The Funds have elected to treat gains and losses on forward currency
contracts as capital gains and losses. Other foreign currency gains and
losses on debt instruments are treated as ordinary income for federal
income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Net capital loss carryovers noted below as of October 31, 1999, are
available to offset future realized capital gains and thereby reduce future
taxable gains distributions. These carryovers expire between October 31,
2002, and October 31, 2007. The aggregate cost of investments and the
composition of unrealized appreciation and depreciation of investment
securities for federal income tax purposes as of April 30, 2000, are listed
below. The federal tax cost for the Money Market Funds is the same as
listed in the Statement of Assets and Liabilities.
<TABLE>
<CAPTION>
Net
Net Capital Loss Federal Tax Unrealized Unrealized Appreciation/
Carryovers Cost Appreciation (Depreciation) (Depreciation)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Janus Flexible Income Fund $ (23,993,507) $1,138,460,757 $ 8,879,377 $ (44,388,936) $ (35,509,559)
Janus High-Yield Fund (17,605,707) 271,627,991 1,689,414 (12,097,681) (10,408,267)
Janus Federal Tax-Exempt Fund (1,963,344) 73,422,251 332,830 (3,542,048) (3,209,218)
Janus Short-Term Bond Fund (3,806,470) 126,118,408 610 (2,125,497) (2,124,887)
---------------------------------------------------------------------------------------------------------------------
</TABLE>
44 Janus Income Funds / April 30, 2000
<PAGE>
Explanation of | Charts and Tables
1. PERFORMANCE OVERVIEWS
Performance overview graphs on the previous pages compare the performance
of a $10,000 investment in each Fund (from inception) to one or more widely
used market indexes through April 30, 2000.
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.
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.
Janus Income Funds / April 30, 2000 45
<PAGE>
Explanation of | Charts and Tables (continued)
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.
46 Janus Income Funds / April 30, 2000
<PAGE>
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 summarizes the income earned divided by
the average net assets of a Fund during the reporting period. Don't confuse
this ratio with a Fund's yield. The net investment income ratio is not a
true measure of a Fund's yield because it doesn't take into account the
dividends distributed to the Fund's investors.
The next ratio is the portfolio turnover rate, which measures the buying
and selling activity in the Funds' portfolios. Portfolio turnover is
affected by market conditions, changes in the size of a fund, the nature of
the Fund's investments and the investment style of the portfolio manager. A
100% rate implies that an amount equal to the value of the entire portfolio
is turned over in a year; a 50% rate means that an amount equal to the
value of half the portfolio is traded in a year; and a 200% rate means that
an amount equal to the value of the portfolio is sold every six months.
Janus Income Funds / April 30, 2000 47
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48 Janus Income Funds / April 30, 2000
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Janus Income Funds / April 30, 2000 49
<PAGE>
--------------------------------------------------------------------------------
[LOGO] JANUS ------------
BULK RATE
P.O. Box 173375 U.S. POSTAGE
Denver, Colorado 80217-3375 PAID
JANUS
Address Service Requested. ------------
--------------------------------------------------------------------------------
