Janus | Income Funds
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2000 Annual 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 ................................................ 6
Janus Federal Tax-Exempt Fund ........................................ 10
Janus Short-Term Bond Fund ........................................... 14
Janus Money Market Fund .............................................. 17
Janus Government Money Market Fund ................................... 22
Janus Tax-Exempt Money Market Fund ................................... 23
Statements of Assets and Liabilities -
Bond Funds ........................................................... 26
Statements of Operations - Bond Funds ..................................... 27
Statements of Changes in Net Assets -
Bond Funds ........................................................... 28
Financial Highlights - Bond Funds ......................................... 29
Statements of Assets and Liabilities -
Money Market Funds ................................................... 31
Statements of Operations -
Money Market Funds ................................................... 32
Statements of Changes in Net Assets -
Money Market Funds ................................................... 33
Financial Highlights - Money Market Funds ................................. 34
Notes to Schedules of Investments ......................................... 39
Notes to Financial Statements ............................................. 40
Explanation of Charts and Tables .......................................... 43
Report of Independent Accountants ......................................... 46
[LOGO] JANUS
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To Our | Shareholders
[PHOTO]
Tom Bailey
chairman
This year if you weren't in Treasuries, you weren't anywhere in the bond market.
As the period began, the eight-year expansion of the U.S. economy was in full
swing, and the stock market was on a seemingly unstoppable bull run. This led to
an increase in short-term interest rates as natural economic forces, together
with four separate rate increases by the Federal Reserve, pushed borrowing costs
higher. Bond markets largely expected this, however, and although interest rate
uncertainty kept investors on edge for virtually the entire year, bond prices
actually rallied on several occasions after the Federal Reserve announced plans
to tighten.
But investors were much less prepared for the surprisingly vigorous efforts of
the federal government to retire the national debt. In late January, the U.S.
Treasury announced plans to repurchase as much as $30 billion in outstanding
Treasury securities on its way to a $200 billion reduction in the national debt
during calendar year 2000 - a figure that represents as much as 4% of all
marketable Treasury debt outstanding. This created extraordinary demand for
Treasuries and made other segments of the bond market much less attractive by
comparison.
The result of these two competing policies was an intragovernmental tug-of-war
unlike anything the bond market has ever seen. As the Federal Reserve struggled
to pull short-term rates higher, the Treasury Department actually pushed
long-term rates lower by buying back more 30-year Treasuries than it was
issuing. This roiled bond markets and caused short-term interest rates to
surpass long term rates - an unusual situation that has yet to fully correct
itself.
Meanwhile, an entirely different set of factors was driving the corporate
markets. Rising default rates, a volatile stock market and difficulties in
high-profile market segments such as telecommunications worked against the
high-yield market, while investment-grade bonds treaded water in the midst of an
uncertain interest rate environment. At the same time, the extraordinary
performance of the stock market in 1999 also pressured high-yield securities by
acting like a magnet for yield-chasing investors, who redeemed more than $37
billion worth of taxable bond fund shares, on a net basis, during the year. This
shift in investors' appetite for risk forced bond fund managers to sell large
positions to cover redemptions and further depressed demand for corporate bonds
even while a potential increase in supply loomed.
However difficult the past 12 months have been, recent news suggests that a
return to more normal conditions in the bond market may be under way as the
Federal Reserve's efforts to engineer a soft landing for the U.S. economy appear
to be taking hold. Regardless, it's important to remember that outstanding
individual opportunities exist no matter where the markets are headed - that's
the foundation upon which Janus is built, and it's as true on the fixed-income
side of the company as it is on the equity side. This approach has supported
strong long-term performance throughout our history. Rest assured we'll maintain
that focus as we look ahead to next year.
Thank you for your continued confidence and investment with Janus.
/s/ Tom Bailey
Tom Bailey
Past performance does not guarantee future results.
Janus Income Funds / October 31, 2000 1
<PAGE>
Janus | Flexible Income Fund
[PHOTO]
Ronald Speaker
portfolio manager
Janus Flexible Income Fund returned 3.31% during the 12 months ended October 31,
2000, compared to the 7.13% earned by its benchmark, the Lehman Brothers
Government/Corporate Bond Index.(1)
Fiscal 2000 was a year of transition for both the bond market and the Fund. An
ambitious campaign by the federal government to reduce the national debt allowed
Treasury securities to emerge as perhaps the year's single best-performing asset
class across virtually the entire market - including stocks. Meanwhile, fears of
inflation, stock market volatility and rising default rates pressured the
corporate bond market, where the premium paid by lower-rated borrowers grew to
its widest level in years. The result was a wholesale reassessment of risk on
behalf of investors that created an extraordinarily difficult market for all but
the highest-quality bonds.
The Fund mirrored the market's shift from higher-risk securities to low-risk
bonds. We entered the year with roughly one-third of the Fund's assets invested
in high-yield securities, a strategy that has served us well in the past. But as
conditions in the high-yield market grew steadily worse, we proactively reduced
our exposure and ultimately ended the period with less than 16% of assets in
these bonds. We achieved this by taking profits from some of our most successful
high-yield investments and selling others that had, quite frankly, disappointed
us. For the most part, the proceeds of these sales were put back to work in
higher-quality segments of the market such as government bonds and agency
credits, where our exposure has grown from roughly 10% of the Fund's assets at
the beginning of the year to more than 25% today.
Still, our results were held back by the weak performances of several high-yield
bonds, including life insurer Conseco. The company's bonds gained substantially
in December following a credit upgrade but then fell sharply when ratings
agencies lowered the bonds back below investment-grade on concerns related to
Conseco's abortive plans to enter the consumer finance business. We sold the
position at a loss in response to the company's changing fundamentals.
Rural cable operator Galaxy Communications was another disappointment. Although
the company possesses an attractive portfolio of high-quality assets and has
consistently reported strong cash flows, several strategic missteps, including
an inability to close a deal with a potential acquirer, caused the bonds to fall
dramatically. When Galaxy and its suitor failed to come to terms, we cut our
losses and liquidated the position.
Successes included our Treasury positions, which benefited from strong demand
related to the federal Government's debt reduction program. Our relative
overweighting in short-term corporate debt also worked to our advantage as bonds
with maturities ranging from one to three years were somewhat less affected by
the change in investors' appetite for risk that pressured other segments of the
market.
Individual standouts in the investment-grade arena included media and spirits
company J. Seagram. The bonds have been consistent performers for the
Portfolio Asset Mix October 31, 2000 October 31, 1999
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Investment-Grade
Corporate Bonds/Warrants 41.0% 48.3%
High-Yield/High-Risk
Corporate Bonds 15.2% 26.7%
U.S. Government Obligations 25.2% 9.5%
Foreign Dollar/
Non-Dollar Bonds 3.7% 4.5%
Preferred Stock 1.6% 1.6%
Cash & Cash Equivalents 13.3% 9.4%
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Fund Profile October 31, 2000 October 31, 1999
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Weighted Average Maturity 5.8 Yrs. 7.9 Yrs.
Average Modified Duration* 4.3 Yrs. 5.3 Yrs.
30-Day Average Yield** 7.09% 7.48%
Average Rating A- BBB+
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*A theoretical measure of price volatility.
**Yield will fluctuate.
(1) Both returns include reinvested dividends and distributions.
Past performance does not guarantee future results.
2 Janus Income Funds / October 31, 2000
<PAGE>
Fund since our purchase in late 1998, but gained substantially after French
media and utility conglomerate Vivendi announced plans to acquire the company in
June. The terms of the deal required Seagram to call our bonds at a sizable
premium, providing the Fund with an immediate windfall.
While several of our high-yield positions gave ground, not all were
disappointments. Venetian Hotel and Casino - a position we held for much of the
year - was able to overcome the extremely difficult environment to post gains.
Sentiment had worked against the bonds for months as investors questioned the
ability of the 1.5-million-square-foot casino and convention center to attract
the traffic necessary to become profitable. After a number of visits to the
site, we saw firsthand that visitor numbers were even better than expected, and
we took advantage of the market's misunderstanding by building a position at
opportunistic prices. We were later rewarded when other investors caught wind of
the same trends and bid the bonds higher.
In closing, 2000 has proven to be an extremely difficult year for fixed-income
investors. However, we view the Fund's ability to post even moderate gains in
such a challenging environment as evidence of the validity of the
research-intense, company-by-company approach that has allowed us to post strong
results over the long term. We have maintained that approach and now enter 2001
with a more focused, higher-quality portfolio than before.
Thank you for your continued confidence and 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 October 31, 2000.
The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Flexible Income Fund ($28,788) as compared to the Lehman
Brothers Government/Corporate Bond Index ($28,471).
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 3.31%
Five Year, 6.67%
Ten Year, 10.25%
Since 7/7/87*, 8.25%
Janus Flexible Income Fund - $28,788
Lehman Brothers
Government/Corporate
Bond Index - $28,471
*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 and
distributions. 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
Shares or Principal Amount Market Value
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Corporate Bonds - 59.6%
Automotive - Cars and Light Trucks - 1.0%
$ 11,000,000 DaimlerChrysler N.A. Holdings Corp., 6.90%
company guaranteed notes, due 9/1/04 ... $ 10,903,750
Beverages - Wine and Spirits - 0.4%
5,000,000 Joseph E. Seagram & Sons, Inc., 6.80%
company guaranteed notes, due 12/15/08 . 5,106,250
Cable Television - 0.7%
3,000,000 Comcast UK Cable Partners, Ltd.
zero coupon, debentures, due 11/15/07(OMEGA) 2,730,000
5,000,000 Diamond Cable Communications PLC
zero coupon, senior discount notes
due 12/15/05(OMEGA) .................... 4,650,000
7,380,000
Casino Services - 0.8%
8,000,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04(OMEGA) 8,720,000
Commercial Banks - 1.0%
$ 7,000,000 City National Bank, 6.375%
subordinated notes, due 1/15/08 ........ $ 6,273,750
5,000,000 Hudson United Bancorp, Inc., 8.20%
subordinated debentures, due 9/15/06 ... 4,781,250
11,055,000
Computer Services - 0.9%
10,000,000 Electronic Data Systems Corp., 7.125%
notes, due 10/15/09 .................... 9,925,000
Consumer Products - 1.4%
15,000,000 Unilever Capital Corp., 7.125%
company guaranteed notes, due 11/1/10 .. 14,831,250
Containers - Paper and Plastic - 0.3%
3,000,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02 ...... 3,045,000
Cosmetics and Toiletries - 0.9%
10,250,000 Procter & Gamble Co., 6.875%
unsubordinated notes, due 9/15/09 ...... 10,173,125
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 3
<PAGE>
Janus | Flexible Income Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
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Diversified Financial Services - 5.4%
Citigroup, Inc.:
$ 10,500,000 7.45%, notes, due 6/6/02 ................ $ 10,618,125
15,000,000 7.25%, subordinated notes, due 10/1/10 .. 14,887,500
General Electric Capital Corp.:
15,000,000 7.00%, notes, due 3/1/02 ................ 15,075,000
8,000,000 6.80%, notes, due 11/1/05 ............... 8,001,600
10,000,000 IBM Credit Corp., 7.00%
notes, due 1/28/02 ..................... 10,037,500
58,619,725
Diversified Operations - 0.9%
10,000,000 Cox Enterprises, Inc., 6.625%
notes, due 6/14/02+ .................... 9,887,500
Electric - Generation - 0.3%
2,873,434 Caithness Coso Funding Corp., 6.80%
secured notes, due 12/15/01 ............ 2,844,700
Electric - Integrated - 0.8%
8,000,000 Dominion Resources, Inc., 8.125%
senior notes, due 6/15/10 .............. 8,250,000
Finance - Auto Loans - 2.3%
25,000,000 Ford Motor Credit Co., 7.50%
notes, due 6/15/03 ..................... 25,125,000
Food - Retail - 7.6%
25,000,000 Fred Meyer, Inc., 7.15%
company guaranteed notes, due 3/1/03 ... 24,843,750
12,000,000 Kroger Co., 8.05%
company guaranteed notes, due 2/1/10 ... 12,165,000
5,500,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 ... 5,087,500
Safeway, Inc.:
15,000,000 5.875%, notes, due 11/15/01 ............ 14,756,250
20,000,000 7.00%, notes, due 9/15/02 .............. 19,925,000
7,750,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 .............. 6,200,000
82,977,500
Hotels and Motels - 0.6%
7,000,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 .. 6,300,000
Life and Health Insurance - 1.0%
11,000,000 Delphi Financial Group, Inc., 8.00%
senior notes, due 10/1/03 .............. 10,807,500
Medical - Hospitals - 3.6%
5,000,000 Columbia/HCA Healthcare Corp., 8.36%
debentures, due 4/15/24 ................ 4,637,500
35,000,000 Tenet Healthcare Corp., 7.875%
senior notes, due 1/15/03 .............. 34,475,000
39,112,500
Multimedia - 4.8%
Time Warner, Inc.:
15,250,000 8.18%, notes, due 8/15/07 .............. 15,879,063
15,000,000 6.95%, company guaranteed notes
due 1/15/28 ............................ 13,406,250
22,000,000 Viacom, Inc., 7.70%
company guaranteed notes, due 7/30/10 .. 22,412,500
51,697,813
Networking Products - 0.5%
$ 7,000,000 Candescent Technologies Corp., 8.00%
convertible senior subordinated
debentures, due 5/1/03+,(OMEGA) ........ $ 4,760,000
Oil Companies - Integrated - 0.9%
10,000,000 Chevron Corp., 6.625%
notes, due 10/1/04 ..................... 9,937,500
Optical Supplies - 0.7%
8,000,000 Bausch & Lomb, Inc., 6.75%
notes, due 12/15/04 .................... 7,080,000
Physical Therapy and Rehabilitation Centers - 0.1%
1,000,000 Healthsouth Corp., 10.75%
senior subordinated notes, due 10/1/08+ 1,007,500
Pipelines - 1.0%
10,250,000 Enron Corp., 7.875%
notes, due 6/15/03 ..................... 10,442,187
Property and Casualty Insurance - 0.5%
6,000,000 First American Capital Trust, 8.50%
company guaranteed notes, due 4/15/12 .. 5,482,500
Recreational Centers - 0.7%
8,000,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07 7,440,000
Retail - Discount - 2.8%
30,000,000 Wal-Mart Stores, Inc., 6.875%
senior notes, due 8/10/09 .............. 29,812,500
Retail - Leisure Products - 0.9%
9,000,000 Selmer Company, Inc., 11.00%
senior subordinated notes, due 5/15/05 . 9,225,000
Savings/Loan/Thrifts - 4.1%
Dime Bancorp, Inc.:
12,000,000 6.375%, senior notes, due 1/30/01 ...... 11,955,000
10,000,000 7.00%, senior notes, due 7/25/01 ....... 9,962,500
20,000,000 Golden State Holdings, Inc., 7.00%
senior notes, due 8/1/03 ............... 19,150,000
4,000,000 People's Bank, 7.20%
subordinated notes, due 12/1/06 ........ 3,915,000
44,982,500
Telecommunication Services - 4.5%
18,250,000 Cox Communcations, Inc., 7.00%
notes, due 8/15/01 ..................... 18,158,750
9,250,000 Global Crossing Holdings, Ltd., 9.50%
senior notes, due 11/15/09 ............. 8,833,750
7,928,000 NTL, Inc., 12.75%
senior notes, due 4/15/05 .............. 7,729,800
10,500,000 Pegasus Media & Communications, Inc.
12.50%, senior subordinated notes
due 7/1/05 ............................. 11,025,000
3,000,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09 ............... 2,370,000
48,117,300
See Notes to Schedules of Investments.
4 Janus Income Funds / October 31, 2000
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
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Telephone - Integrated - 4.9%
$ 15,000,000 Deutsche Telekom International Finance B.V.
8.00%, notes, due 6/15/10(OMEGA) ....... $ 15,318,750
10,000,000 Qwest Capital Funding, Inc., 7.90%
notes, due 8/15/10+ .................... 10,150,000
15,000,000 Qwest Corp., 7.625%
notes, due 6/9/03+ ..................... 15,168,750
4,000,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08 .............. 3,040,000
10,000,000 WorldCom, Inc., 6.125%
senior notes, due 8/15/01 .............. 9,937,500
53,615,000
Television - 0.9%
7,000,000 Fox/Liberty Networks L.L.C., 8.875%
senior notes, due 8/15/07 .............. 7,035,000
2,085,000 Pegasus Communications Corp., 12.50%
senior notes, due 8/1/07 ............... 2,230,950
9,265,950
Textile - Products - 0.7%
7,500,000 Collins & Aikman Floorcovering, Inc.
10.00%, senior subordinated notes
due 1/15/07 ............................ 7,284,375
Web Hosting/Design - 1.2%
8,000,000 Equinix, Inc., 13.00%
senior notes, due 12/1/07 .............. 6,360,000
7,250,000 Exodus Communications, Inc., 11.625%
senior notes, due 7/15/10 .............. 6,706,250
13,066,250
Wire and Cable Products - 0.5%
5,000,000 Anixter International, Inc., 8.00%
company guaranteed notes, due 9/15/03 .. 4,950,000
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Total Corporate Bonds (cost $653,401,198) ................... 643,230,175
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Foreign Bond - 0.1%
Finance - Other Services - 0.1%
GBP 2,370,000 Ono Finance PLC, 14.00%
senior notes, due 7/15/10+
(cost $2,217,609) ...................... 1,546,867
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Preferred Stock - 1.6%
Networking Products - 0.8%
12,131 XO Communications, Inc. - Series B, 13.50% 9,098,250
Savings/Loan/Thrifts - 0.8%
350,000 Chevy Chase Savings Bank, 13.00% .......... 8,575,000
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Total Preferred Stock (cost $21,555,637) .................... 17,673,250
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Warrants - 0.2%
Finance - Other Services - 0%
5,000 Ono Finance PLC - expires 5/31/09*,+ ...... 375,000
Retail - Diversified - 0%
3,100 SpinCycle, Inc. - expires 5/1/05* ......... 0
Telephone - Integrated - 0.1%
2,700 Versatel Telecom B.V. - expires 5/15/08* .. 729,000
Web Hosting/Design - 0.1%
4,190 Equinix, Inc. - expires 12/1/07* .......... 628,500
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Total Warrants (cost $0) .................................... 1,732,500
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U.S. Government Obligations - 25.2%
U.S. Government Agencies - 5.2%
Fannie Mae:
$ 15,000,000 6.625%, due 4/15/02 .................... $ 15,018,750
40,000,000 7.125%, due 6/15/10 .................... 41,250,000
56,268,750
U.S. Treasury Notes - 20.0%
8,150,000 6.75%, due 5/15/05 ..................... 8,449,187
100,000,000 6.50%, due 2/15/10 ..................... 104,679,000
103,250,000 5.75%, due 8/15/10 ..................... 103,152,945
216,281,132
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Total U.S. Government Obligations (cost $271,883,827) ....... 272,549,882
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Repurchase Agreement - 11.7%
126,800,000 BankAmerica Securities L.L.C., 6.63%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $126,823,352
collateralized by $163,443,087 in
U.S. Government Agency Strips, 0%
3/25/18-11/1/30; $15,345,336 in
U.S. Treasuries, 0%-8.125%
8/15/19-11/30/00; with respective
values of $113,784,002 and 15,552,078
(cost $126,800,000) .................... 126,800,000
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Total Investments (total cost $1,075,858,271) - 98.4% ....... 1,063,532,674
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Cash, Receivables and Other Assets, net of Liabilities - 1.6% 16,889,957
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 1,080,422,631
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Summary of Investments by Country, October 31, 2000
Country % of Investment Securities Market Value
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Bermuda 1.1% $ 11,563,750
Canada 0.2% 2,370,000
Netherlands 1.8% 19,087,750
United Kingdom 0.6% 6,571,867
United States++ 96.3% 1,023,939,307
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Total 100.0% $ 1,063,532,674
++Includes Short-Term Securities (84.4% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 5
<PAGE>
Janus | High-Yield Fund
[PHOTO]
Sandy Rufenacht
portfolio manager
For the 12-month period ended October 31, 2000, Janus High-Yield Fund posted a
6.72% return, beating the loss of 1.61% recorded by its benchmark, the Lehman
Brothers High-Yield Bond Index.(1) These results earned the Fund a top-decile
ranking for the 12-month period ended October 31, 2000, placing it 8 out of 358
high current yield funds tracked by Lipper, Inc., a leading mutual fund-rating
company.(2)
Higher oil prices along with a complex interest rate environment and intense
swings in the equity markets resulted in a volatile period for high-yield bonds.
Fortunately, early in the year, we recognized that high-yield bonds were facing
some challenges. Because these bonds often behave similarly to equities, we
reasoned that if stock market volatility persisted, then the high-yield market
would suffer. On the other hand, if financial markets stabilized, the supply of
new bonds would increase and prices would fall. Either way, the outlook appeared
grim, so we adopted a conservative approach.
Our first step was to upgrade the credit quality of the Fund by selectively
buying short-term investment-grade bonds offering current yields that ranged
from 7.5% to 8%. We limited our purchases to companies such as General Electric,
Safeway and IBM - all very solid businesses with minimal credit risk. Moreover,
given the recent performance of the high-yield market, those 7.5% yields looked
quite attractive. Further underscoring our preference for investment-grade bonds
were our memories of 1998, when high-yield bonds were coming to market at 8%.
Today, we can earn 8% with minimal risk by buying General Electric bonds. This
conservative strategy paid off for us when our investment-grade bonds held firm
amidst the decline of the high-yield market.
Despite the disappointing performance of the high-yield market, a number of our
holdings enjoyed solid gains. Standouts included the Venetian Casino and the
Hard Rock Hotel. The Venetian Casino continued to benefit from heavy Las Vegas
visitor traffic volumes. But, while trends in Vegas are good, those at the
Venetian are even better as its focus on attracting conventioneers is working
exceptionally well. After enjoying a nice run in the bonds, we elected to take
profits in the issue. Meanwhile, after performing poorly for most of 1999, the
Hard Rock Hotel has bounced back. Peter Morton, the owner and founder, has once
again stepped up to the plate with more cash, investing another $20 million of
equity. Mr. Morton's continued financial support of the company reflects
management's high degree of confidence.
Industry consolidation also supported several of our holdings. Telecommunication
services firm Split Rock Communications was purchased by McLeodUSA, a larger,
more creditworthy telecommunication services provider based in the Midwest. We
took profits in our Split Rock bonds shortly after the deal was completed, when
McLeod retired the debt at a premium. Elsewhere, Internet infrastructure company
Verio was purchased by Nippon Telephone
Portfolio Asset Mix October 31, 2000 October 31, 1999
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Investment-Grade
Corporate Bonds/Warrants 21.3% 0.3%
High-Yield/High-Risk
Corporate Bonds 50.5% 87.5%
Preferred Stock -- 0.5%
Cash & Cash Equivalents 28.2% 11.7%
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Fund Profile October 31, 2000 October 31, 1999
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Weighted Average Maturity 3.6 Yrs. 6.0 Yrs.
Average Modified Duration* 2.6 Yrs. 4.2 Yrs.
30-Day Average Yield** 8.56% 9.76%
30-Day Average Yield
Without Reimbursement** 8.54% 9.74%
Average Rating BB B-
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*A theoretical measure of price volatility.
**Yields will fluctuate.
(1) Both returns include reinvested dividends and distributions.
(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." As of October 31, 2000, Janus High-Yield Fund ranked 8/358 for the
1-year period. The ranking is based upon total return, including
reinvestment of dividends, distributions and capital gains for the stated
period.
Past performance does not guarantee future results.
6 Janus Income Funds / October 31, 2000
<PAGE>
and Telegraph (NTT). Because NTT could borrow money at a much lower rate than
the 13% yields on Verio's bonds, NTT elected to buy the outstanding Verio bonds,
and we again pocketed a nice profit.
Meanwhile, a few of our holdings could not resist the negative sentiment that
has recently gripped the high-yield market. For example, Galaxy Telecom, a cable
company with assets in the rural Midwest, declined sharply. We have owned this
bond for more than four years, and with its 12.375% coupon, we have earned about
one percent per month. However, the company ran into trouble after one of its
creditors demanded its money back. Lacking the required capital to meet the
demand, Galaxy needed to sell itself to repay the debt. Since then, three deals
have broken down due to the lackluster stock environment surrounding the cable
industry. Although we were optimistic Galaxy would be purchased, the company
couldn't find a buyer in time to satisfy the creditor. Rather than risking a
default on the bonds, we elected to liquidate our holdings at a loss.
Going forward, considering that economic data has been mixed and oil prices
remain high, we are guardedly optimistic about the environment for high-yield
bonds. Nonetheless, as the past six months have demonstrated, there are always
opportunities for profit. Our primary focus is on finding them. With that in
mind, we continue to rely on our own proprietary research to understand our
investments more thoroughly than anyone. In turn, we hope to increase the Fund's
yield while continuing to limit credit risk.
Thank you for your 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 October 31, 2000. The upper
and lower right quadrants reflect the ending value of the hypothetical
investment in Janus High-Yield Fund ($15,644) as compared to the Lehman Brothers
High-Yield Bond Index ($12,595).
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.72%
Since 12/29/95*, 9.69%
Janus High-Yield Fund - $15,644
Lehman Brothers
High-Yield Bond Index - $12,595
*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 and
distributions. 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.
Adviser has voluntarily waived a portion of the fund's expenses, but reserves
the right to change the level of waiver. Without such waivers, yields and total
returns would have been lower.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Corporate Bonds - 71.8%
Agricultural Operations - 0.9%
$ 3,000,000 Hines Horticulture, Inc., 11.75%
senior subordinated notes, due 10/15/05 $ 2,640,000
Beverages - Wine and Spirits - 1.7%
5,000,000 Joseph E. Seagram & Sons, Inc., 5.79%
company guaranteed notes, due 4/15/01 .. 4,975,000
Broadcast Services and Programming - 3.0%
5,000,000 Clear Channel Communications, Inc., 7.25%
notes, due 9/15/03 ..................... 4,956,250
4,000,000 Echostar DBS Corp., 9.375%
senior notes, due 2/1/09 ............... 3,930,000
8,886,250
Building and Construction Products - 1.3%
4,000,000 Collins & Aikman Floorcovering, Inc.
10.00%, senior subordinated notes
due 1/15/07 ............................ 3,885,000
Building Products - Cement and Aggregate - 0.6%
$ 2,000,000 Oglebay Norton Co., 10.00%
senior subordinated notes, due 2/1/09 .. $ 1,780,000
Cable Television - 5.8%
3,000,000 Adelphia Communications Corp., 9.25%
senior notes, due 10/1/02 .............. 2,940,000
3,000,000 Charter Communications Holdings/Charter
Capital, Inc., 10.00%
senior notes, due 4/1/09 ............... 2,940,000
7,000,000 Telewest Communications PLC, 9.875%
senior notes, due 2/1/10+ .............. 5,565,000
8,000,000 United Pan-Europe Communications N.V.
11.25%, senior notes, due 2/1/10 ....... 6,080,000
17,525,000
Casino Hotels - 2.0%
6,000,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 . 6,030,000
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 7
<PAGE>
Janus | High-Yield Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Casino Services - 2.2%
$ 6,000,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04 ...... $ 6,540,000
Cellular Telecommunications - 5.6%
5,000,000 Nextel Partners, Inc., 11.00%
senior notes, due 3/15/10 .............. 4,975,000
5,000,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 . 5,325,000
6,000,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09 ............. 6,420,000
16,720,000
Computer Services - 0.3%
1,500,000 Globix Corp., 12.50%
senior notes, due 2/1/10 ............... 825,000
Computers - 3.3%
5,000,000 IBM Corp., 7.25%
notes, due 11/1/02 ..................... 5,043,750
5,000,000 Sun Microsystems, Inc., 7.00%
senior notes, due 8/15/02 .............. 4,993,750
10,037,500
Containers - Paper and Plastic - 2.7%
4,000,000 SF Holdings Group, Inc., zero coupon
senior discount notes, due 3/15/08(OMEGA) 2,060,000
Stone Container Corp.:
3,000,000 10.75%, first mortgage notes, due 10/1/02 3,045,000
3,000,000 11.50%, senior notes, due 10/1/04 ...... 3,060,000
8,165,000
Diversified Financial Services - 3.7%
General Electric Capital Corp.:
5,000,000 7.00%, notes, due 3/1/02 ............... 5,025,000
6,000,000 6.80%, notes, due 11/1/05 .............. 6,001,200
11,026,200
Diversified Operations - 1.1%
4,000,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09 ............... 3,380,000
E-Commerce/Products - 0.5%
2,750,000 Amazon.com, Inc., zero coupon
senior discount notes, due 5/1/08(OMEGA) 1,381,875
Finance - Auto Loans - 1.6%
5,000,000 Ford Motor Credit Co., 6.55%
notes, due 9/10/02 ..................... 4,975,000
Finance - Credit Card - 1.7%
5,000,000 American Express Co., 6.875%
notes, due 11/1/05 ..................... 4,962,500
Finance - Other Services - 0.5%
2,000,000 Trump Castle Funding, Inc., 11.75%
mortgage notes, due 11/15/03 ........... 1,645,000
Food - Retail - 3.3%
5,000,000 Fred Meyer, Inc., 7.375%
company guaranteed notes, due 3/1/05 ... 4,943,550
5,000,000 Safeway, Inc., 5.875%
notes, due 11/15/01 .................... 4,918,750
9,862,300
Hotels and Motels - 1.8%
$ 6,000,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 .. $ 5,400,000
Manufacturing - 0.3%
1,000,000 Packaged Ice, Inc., 9.75%
company guaranteed notes, due 2/1/05 ... 830,000
Medical - Hospitals - 1.0%
3,000,000 Tenet Healthcare Corp., 8.625%
senior notes, due 12/1/03 .............. 3,022,500
Networking Products - 1.3%
4,000,000 Concentric Network Corp., 12.75%
senior notes, due 12/15/07 ............. 3,780,000
Oil Companies - Exploration and Production - 1.0%
3,000,000 Forest Oil Corp., 10.50%
company guaranteed notes, due 1/15/06 .. 3,045,000
Radio - 1.4%
4,000,000 Radio One, Inc., 12.00%
company guaranteed notes, due 5/15/04(OMEGA) 4,140,000
Retail - Discount - 1.7%
5,000,000 Wal-Mart Stores, Inc., 6.875%
notes, due 8/1/02 ...................... 5,018,750
Satellite Telecommunications - 0.7%
2,000,000 Echostar Broadband Corp., 10.375%
senior notes, due 10/1/07+ ............. 2,005,000
Telecommunication Equipment - Fiber Optic - 1.3%
2,000,000 NorthEast Optic Network, Inc., 12.75%
senior notes, due 8/15/08 .............. 1,460,000
3,000,000 Williams Communications Group, Inc.
10.875%, senior notes, due 10/1/09 ..... 2,527,500
3,987,500
Telecommunication Services - 8.4%
3,000,000 Alaska Communications Systems, Inc.
9.375%, company guaranteed notes
due 5/15/09 ............................ 2,580,000
5,000,000 Global Crossing Holdings, Ltd., 9.625%
company guaranteed notes, due 5/15/08 .. 4,775,000
3,000,000 ITC DeltaCom, Inc., 11.00%
senior notes, due 6/1/07 ............... 2,610,000
3,000,000 Level 3 Communications, Inc., 11.25%
senior notes, due 3/15/10 .............. 2,700,000
9,000,000 NTL, Inc., zero coupon
senior notes, due 2/1/06(OMEGA) ........ 7,920,000
2,000,000 Time Warner Telecommunications L.L.C.
9.75%, senior notes, due 7/15/08 ....... 1,770,000
2,000,000 Winstar Communications, Inc., 12.75%
senior notes, due 4/15/10 .............. 1,410,000
2,000,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09 ............... 1,580,000
25,345,000
Telephone - Integrated - 6.8%
Qwest Capital Funding, Inc.:
5,000,000 6.125%, company guaranteed notes
due 7/15/02 ............................ 4,925,000
5,000,000 7.75%, notes, due 8/15/06+ ............. 5,068,750
2,250,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07 ...... 2,444,063
5,000,000 Sprint Capital Corp., 7.625%
company guaranteed notes, due 6/10/02 .. 5,037,500
4,000,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08 .............. 3,040,000
20,515,313
See Notes to Schedules of Investments.
8 Janus Income Funds / October 31, 2000
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Transportation - Services - 0.8%
$ 3,000,000 Atlantic Express Transportation Corp.
10.75%, company guaranteed notes
due 2/1/04 ............................. $ 2,490,000
Web Hosting/Design - 2.5%
6,000,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ............... 5,580,000
4,000,000 PSINet, Inc., 10.50%
senior notes, due 12/1/06 .............. 1,910,000
7,490,000
Wire and Cable Products - 1.0%
3,000,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05 .. 2,970,000
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $225,564,181) ................... 215,280,688
--------------------------------------------------------------------------------
Repurchase Agreement - 26.2%
78,600,000 BankAmerica Securities L.L.C., 6.63%
dated 10/31/00, maturing 11/1/00, to be
repurchased at $78,614,476 collateralized
by $101,314,090 in U.S. Government
Agency Strips, 0%, 3/25/18-11/1/30;
$9,512,172 in U.S. Treasuries, 0%-
8.125%, 8/15/19-11/30/00; with
respective values of $70,531,724 and
$9,640,326 (cost $78,600,000) .......... 78,600,000
--------------------------------------------------------------------------------
Short-Term Corporate Note - 5.1%
Pennzoil Corp.
15,500,000 6.94%, 11/13/00
(amortized cost $15,464,143) ........... 15,464,143
--------------------------------------------------------------------------------
Total Investments (total cost $319,628,324) - 103.1% ........ 309,344,831
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (3.1%) (9,420,870)
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 299,923,961
--------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 2000
Country % of Investment Securities Market Value
--------------------------------------------------------------------------------
Bermuda 1.5% $ 4,775,000
Canada 0.5% 1,580,000
Netherlands 3.0% 9,120,000
United Kingdom 1.8% 5,565,000
United States++ 93.2% 288,304,831
--------------------------------------------------------------------------------
Total 100.0% $ 309,344,831
++Includes Short-Term Securities (62.8% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 9
<PAGE>
Janus | Federal Tax-Exempt Fund
[PHOTO]
Darrell Watters
portfolio manager
Janus Federal Tax-Exempt Fund returned 6.47% for the fiscal year ended October
31, 2000. This compares with an 8.51% return for its benchmark the Lehman
Brothers Municipal Bond Index.(1)
After a difficult first six months of the fiscal year that saw the Federal
Reserve aggressively raise interest rates to slow the economy, bonds generally
rallied over the last six months as several factors stoked investor optimism.
Perhaps the most obvious contributor to the rally was the market's growing
belief that the domestic economic expansion was beginning to moderate. Investors
realized that if the economy was indeed slowing, the Federal Reserve's recent
spate of interest rate hikes might be winding down. Further supporting bonds was
the volatile stock market, which unnerved many investors and prompted them to
seek more stable investments, most notably U.S. Treasuries.
Municipal bonds also participated in the rally. The strong economy has kept tax
coffers brimming, resulting in a dearth of new supply as local governments
haven't needed to issue bonds to fund new projects. In fact, the economy has
been so strong that some issuers have tried to pay off their debt. For example,
Georgia Municipal Electric Authority Power Revenue, a utility and one of our
strongest performers during the period, recently asked us if it could repurchase
its bonds. Given that these bonds have an interest rate of 6.50%, yet offer very
little credit risk, we opted to hold onto them.
Other bonds that we believe will soon be retired include those issued by Sand
Creek Metropolitan District. This debt was initially sold to fund development of
the area surrounding Denver International Airport. Property values along this
corridor, which is now lined with hotels, office buildings and warehouses, have
appreciated dramatically, and the bonds have followed suit. Sand Creek serves as
a wonderful illustration of the opportunities in unrated credits. Many investors
shy away from unrated bonds because the agencies have not assessed the
creditworthiness of the issuer. To these investors, the inability to rely upon a
third-party to verify their own analyses represents an unacceptable level of
risk. However, we recognize that the cost of obtaining a credit rating is simply
unfeasible for some municipal projects. Consequently, they go unrated.
Nevertheless, many of these projects end up being quite successful. When
evaluating unrated credits, as we did with Sand Creek, we often visit the site
and speak with the developers and local politicians, and are therefore able to
assess the project's progress and accompanying risk. By conducting this onsite
research, we hope to eliminate the risks associated with non-rated projects.
These field-trips frequently lead us to solid credits paying attractive yields.
Another example of our finding value in an unrated bond was our investment in
debt issued by Denver West, a local shopping district. Once again, through
frequent visits to the site, we were able to obtain a first-hand perspective on
the project's viability and it has rewarded us with solid performance.
Portfolio Asset Mix October 31, 2000 October 31, 1999
--------------------------------------------------------------------------------
Corporate Bonds -- 1.6%
Essential Service Revenue Bonds 66.0% 78.4%
General Obligation Bonds 34.0% 20.0%
--------------------------------------------------------------------------------
Fund Profile October 31, 2000 October 31, 1999
--------------------------------------------------------------------------------
Weighted Average Maturity 11.4 Yrs. 13.9 Yrs.
Average Modified Duration* 6.4 Yrs. 7.9 Yrs.
30-Day Average Yield** 5.02% 5.48%
30-Day Average Yield
Without Reimbursement** 4.82% 5.22%
Average Rating Aa3 Aa2
--------------------------------------------------------------------------------
*A theoretical measure of price volatility.
**Yields will fluctuate.
(1) Both returns include reinvested dividends and distributions.
Past performance does not guarantee future results.
10 Janus Income Funds / October 31, 2000
<PAGE>
Although many of our bonds advanced during the period, there were a few that
lagged their peers. Perhaps the biggest disappointment were our bonds issued by
Grand Forks, a diversified health care provider in North Dakota. Grand Forks has
three divisions: an assisted-living complex, a hospital and a long-term care
facility. According to our research, in order for the project to be financially
sound, all three segments must enjoy occupancy of at least 90%. However, the
long-term care facility is only 70% occupied, which is a violation of the bond
covenants. Further complicating the issue were the floods of 1997, which
severely damaged the property. The relief dollars that had been promised by the
federal government and which the project's managers had earmarked for our bonds,
were never paid. Fortunately, events are taking a turn for the better. The
project has new management - an organization from Minnesota with a sterling
reputation of turning these types of situations around.
Going forward, while default rates have ticked slightly higher, primarily as a
result of problems specific to several health care projects, municipal bonds
remain a good option for those investors seeking a safe haven. That, combined
with their obvious tax benefits and their attractive prices relative to
Treasuries, makes me cautiously optimistic about municipals in the near term. Of
course, the wild card is always the economy. While we have recently seen signs
of an economic moderation, we continue to take a wait-and-see approach, choosing
to diligently research individual credits in hopes of boosting the Fund's yield
without sacrificing credit quality.
Thank you for your 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 October 31, 2000. The
upper right quadrant reflects the ending value of the hypothetical investment in
Janus Federal Tax-Exempt Fund ($14,032) as compared to the Lehman Brothers
Municipal Bond Index ($15,358).
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.47%
Five Year, 4.65%
Since 5/3/93*, 4.62%
Janus Federal Tax-Exempt Fund - $14,032
Lehman Brothers
Municipal Bond
Index - $15,358
*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 and
distributions. 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.
Income may be subject to state or local taxes and federal alternative minimum
tax. Capital gains are subject to federal, state and local taxes.
Adviser has voluntarily waived a portion of the fund's expenses, but reserves
the right to change the level of waiver. Without such waivers, yields and total
returns would have been lower.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Municipal Securities - 97.4%
Arizona - 2.2%
$ 1,000,000 Arizona State Transportation Board Excise
Tax Revenue, (Maricopa County Regional
Area Road Project), 5.00%, due 7/1/04 .. $ 1,017,500
1,000,000 Winslow Industrial Development
Authority Hospital Revenue
(Winslow Memorial Hospital Project)
5.50%, due 6/1/22 ...................... 775,000
1,792,500
California - 3.3%
$ 1,000,000 California Educational Facilities Authority
Revenue, (Stanford University), Series P
5.25%, due 12/1/13 ..................... $ 1,052,500
Los Angeles Regional Airport
Improvements Corp. Lease Revenue:
700,000 (American Airlines - L.A. International
Project), Series E, Variable Rate, 4.30%
due 12/1/24 ............................ 700,000
800,000 (American Airlines - L.A. International
Project), Series F, Variable Rate, 4.65%
due 12/1/24 ............................ 800,000
100,000 (Sublease - L.A. International Project)
Series F, Variable Rate, 4.65%
due 12/1/25 ............................ 100,000
2,652,500
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 11
<PAGE>
Janus | Federal Tax-Exempt Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Colorado - 35.5%
$ 2,000,000 Arapahoe County Capital Improvement
Highway Revenue, (E-470 Highway
Authority), 6.95%, due 8/31/20 ......... $ 2,252,500
875,000 Bachelor Gulch Metropolitan District
6.80%, due 12/1/06 ..................... 900,156
510,000 Black Hawk, 5.70%, due 12/1/12 ............ 524,663
Black Hawk Device Tax Revenue:
30,000 6.00%, due 12/1/03 ..................... 30,113
25,000 6.10%, due 12/1/07 ..................... 25,156
50,000 6.00%, due 12/1/09 ..................... 49,875
500,000 6.00%, due 12/1/11 ..................... 510,625
650,000 5.50%, due 12/1/12 ..................... 594,750
1,250,000 5.625%, due 12/1/21 .................... 1,053,125
1,000,000 Boulder County Hospital Revenue
(Longmont United Hospital Project)
5.60%, due 12/1/17 ..................... 863,750
1,000,000 Castle Rock Golf Enterprise Revenue
6.50%, due 12/1/16 ..................... 990,000
Central Platte Valley Metropolitan District
(ACA Insured):
1,000,000 5.15%, due 12/1/13 ..................... 951,250
500,000 5.30%, due 12/1/18 ..................... 463,750
Colorado Housing Financial Authority
(Single Family Program):
1,000,000 Series C-2, 7.10%, due 5/1/15 .......... 1,027,500
860,000 Series B-3, 6.80%, due 11/1/28 ......... 925,575
1,000,000 Series B-3, 6.50%, due 10/1/29 ......... 1,063,750
1,000,000 Deer Creek Metropolitan District, 7.15%
due 12/1/12 ............................ 1,017,500
Denver West Metropolitan District:
265,000 6.15%, due 12/1/13 ..................... 269,306
750,000 6.50%, due 6/1/16 ...................... 768,750
615,000 6.20%, due 6/1/17 ...................... 617,306
2,000,000 E-470 Public Highway Authority Revenue
(MBIA Insured), Series A, 4.375%
due 9/1/23 ............................. 1,755,000
1,250,000 Eaglebend Affordable Housing Corp.
Multifamily Revenue, (Housing Project)
Series B, 7.40%, due 7/1/21 ............ 1,206,250
1,000,000 Erie Water Enterprise Revenue, Series B
6.00%, due 12/1/17 ..................... 1,073,750
20,000 Grand Lake Sales Tax Revenue, 5.50%
due 10/15/08 ........................... 18,575
25,000 Gunnison Valley Hospital Revenue, 5.20%
due 7/1/08 ............................. 23,469
540,000 Health Facilities Authority Revenue
(National Jewish Medical & Research
Center Project), 4.45%, due 1/1/01 ..... 539,347
Hyland Hills Metropolitan Parks and
Recreation District Special Revenue
Series A:
850,000 5.00%, due 12/15/06 .................... 863,812
500,000 6.75%, due 12/15/15 .................... 517,500
1,000,000 Mountain Village Metropolitan District
San Miguel County, 8.10%, due 12/1/11 .. 1,070,656
1,835,000 Parker Jordan Metropolitan District
Series B, 6.10%, due 12/1/17 ........... 1,713,431
65,000 Plains Metropolitan District, 5.85%
due 12/1/05 ............................ 65,731
Sand Creek Metropolitan District:
1,000,000 7.125%, due 12/1/16 .................... 995,000
1,000,000 6.625%, due 12/1/17 .................... 951,250
10,000 South Suburban Parks and Recreation
District Golf Course and Ice Arena
Facilities, 5.30%, due 11/1/01 ......... 10,024
100,000 Telluride Excise Tax Revenue, 5.75%
due 12/1/12 ............................ 103,125
Telluride Housing Authority Housing
Revenue (Shandoka Apartments Project):
100,000 7.50%, due 6/1/12 ...................... 102,750
1,500,000 7.50%, due 6/1/23 ...................... 1,552,500
Colorado - (continued)
Upper Cherry Creek Metropolitan District:
$ 500,000 6.20%, due 12/1/05 ..................... $ 505,625
400,000 6.75%, due 12/1/11 ..................... 420,500
28,387,695
Florida - 0.2%
200,000 Dade County Industrial Development
Authority Revenue, (Dolphins Stadium
Project), Series D, Variable Rate
4.20%, due 1/1/16 ...................... 200,000
Georgia - 4.7%
1,400,000 Georgia Municipal Electric Authority
Power Revenue, (MBIA Insured)
Series Y, 6.50%, due 1/1/17 ............ 1,582,000
2,000,000 Georgia, Series B, 5.75%, due 8/1/10 ...... 2,155,000
3,737,000
Illinois - 9.1%
1,500,000 Cook County, Series B, (MBIA Insured)
5.375%, due 11/15/18 ................... 1,473,750
2,250,000 Illinois, 1st Series, 5.25%, due 8/1/03 ... 2,292,188
1,000,000 Metropolitan Pier and Exposition Authority
Hospitality Facilities Revenue
(McCormick Place Convention Center
Project), 7.00%, due 7/1/26 ............ 1,185,000
2,000,000 Regional Transportation Authority
(FGIC Insured), 6.00%, due 6/1/23 ...... 2,105,000
200,000 Sauget Pollution Control Revenue
(Monsanto Co.), Variable Rate
4.45%, due 9/1/14 ...................... 200,000
7,255,938
Maryland - 3.0%
Maryland State and Local Facilities Loan:
1,325,000 1st Series, 5.125%, due 8/1/06 ......... 1,366,407
1,000,000 2nd Series, 5.25%, due 7/15/12 ......... 1,023,750
2,390,157
Massachusetts - 1.1%
1,000,000 Massachusetts Turnpike Authority
Metropolitan Highway System Revenue
(AMBAC Insured), Series A, 5.00%
due 1/1/39 ............................. 888,750
Minnesota - 1.6%
440,000 Maplewood Multifamily Revenue
(Hazel Ridge Project), Series B
7.50%, due 12/15/32 .................... 410,850
1,000,000 Northern Municipal Power Agency Electric
System Revenue, (AMBAC Insured)
Series B, 4.75%, due 1/1/20 ............ 898,750
1,309,600
Mississippi - 1.0%
740,000 Harrison County School District State Aid
Capital Improvement, (FSA Insured)
6.25%, due 8/1/02 ...................... 763,125
Missouri - 0.7%
Missouri Health and Educational
Facilities Authority:
200,000 Educational Facilities Revenue
(Washington University), Series C
Variable Rate, 4.60%, due 3/1/40 ....... 200,000
400,000 Health Facilities Revenue, (Cox Health
System), Variable Rate, 4.60%, due 6/1/15 400,000
600,000
Montana - 1.3%
1,000,000 Montana State Board of Investment
Workers Compensation Program
(MBIA Insured), 6.875%, due 6/1/20 ..... 1,032,297
See Notes to Schedules of Investments.
12 Janus Income Funds / October 31, 2000
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Nevada - 0.7%
$ 600,000 Reno Hospital Revenue, (St. Mary's Regional
Medical Center), Series B, Variable Rate
4.65%, due 5/15/23 ..................... $ 600,000
New Jersey - 5.4%
1,000,000 New Jersey Transportation Corp. Certificates
(Federal Transportation Administration
Grants), Series B, 5.25%, due 9/15/04 .. 1,025,000
New Jersey Turnpike Authority
Turnpike Revenue:
2,000,000 Series A, (MBIA Insured), 5.75%
due 1/1/10 ............................. 2,145,000
1,000,000 Series C, (FSA Insured), 6.50%
due 1/1/16 ............................. 1,136,250
4,306,250
New Mexico - 2.7%
2,000,000 University of New Mexico University
Revenue, Series A, 6.00%, due 6/1/21 ... 2,145,000
New York - 5.0%
700,000 Long Island Power Authority Electric
System Revenue, Series 6, Variable Rate
4.55%, due 5/1/33 ...................... 700,000
New York Dormitory Authority Revenue:
1,000,000 (City University System), (MBIA Insured)
5.50%, due 7/1/24 ...................... 986,250
1,000,000 (State University Educational Facilities)
Series A, 5.50%, due 5/15/19 ........... 997,500
1,345,000 St. Lawrence County Industrial
Development Civic Facilities Revenue
(St. Lawrence University Project)
(MBIA Insured), Series A, 5.375%
due 7/1/18 ............................. 1,333,231
4,016,981
North Dakota - 1.2%
1,250,000 Grand Forks Senior Housing Revenue
(4000 Valley Square Project)
6.375%, due 12/1/34 .................... 937,500
Ohio - 1.7%
100,000 Ohio Water Development Authority Revenue
(Environmental Mead Co.), Series B
Variable Rate, 4.55%, due 11/1/15 ...... 100,000
1,250,000 Toledo-Lucas County Port Authority, Port
Revenue, (Cargill Income Project)
5.90%, due 12/1/15 ..................... 1,262,500
1,362,500
Oklahoma - 2.0%
500,000 McGee Creek Authority Water Revenue
(MBIA Insured), 6.00%, due 1/1/23 ...... 533,125
1,000,000 Tulsa Industrial Authority Revenue
(University of Tulsa), (MBIA Insured)
Series A, 6.00%, due 10/1/16 ........... 1,086,250
1,619,375
Puerto Rico - 1.2%
1,000,000 Puerto Rico Commonwealth
(MBIA Insured), 5.375%, due 7/1/25 ..... 987,500
Tennessee - 3.8%
2,000,000 Knoxville, Anticipation Notes
5.00%, due 6/1/02 ...................... 2,017,500
1,000,000 Shelby County, Series A, 5.00%, due 3/1/03 1,011,250
3,028,750
Texas - 8.7%
$ 1,000,000 Collin County, (Road Project), 5.25%
due 2/15/08 ............................ $ 1,032,500
Grapevine Industrial Development
Corp. Revenue (American Airlines):
600,000 Series A-2, Variable Rate, 4.65%
due 12/1/24 ............................ 600,000
500,000 Series A-3, Variable Rate, 4.65%
due 12/1/24 ............................ 500,000
700,000 Series A-4, Variable Rate, 4.65%
due 12/1/24 ............................ 700,000
Harris County Health Facilities
Development Corp. Revenue
(St. Luke's Episcopal Hospital):
300,000 Series A, Variable Rate, 4.65%
due 2/15/27 ............................ 300,000
600,000 Series B, Variable Rate, 4.65%
due 2/15/27 ............................ 600,000
2,000,000 Houston Water Conveyance System Contract
Certificates of Participation, Series J
6.25%, due 12/15/15 .................... 2,217,500
1,000,000 Orange County Naval and Port District
Industrial Development Corp. Revenue
(North Star Steel Texas Project)
6.375%, due 2/1/17 ..................... 1,033,750
6,983,750
Wyoming - 1.3%
1,000,000 Sweetwater County Pollution Control
Revenue, (Idaho Power Co.), Series A
6.05%, due 7/15/26 ..................... 1,008,750
--------------------------------------------------------------------------------
Total Investments (total cost $78,984,648) - 97.4% .......... 78,005,918
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 2.6% 2,049,730
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 80,055,648
--------------------------------------------------------------------------------
ACA - American Capital Access Corp.
AMBAC - American Municipal Bond Assurance Corp.
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association Corp.
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 13
<PAGE>
Janus | Short-Term Bond Fund
[PHOTO]
Sandy Rufenacht
portfolio manager
For the fiscal year ended October 31, 2000, Janus Short-Term Bond Fund returned
6.65%, compared to the gain of 6.15% recorded by its benchmark, the Lehman
Brothers 1-3 Government/Corporate Bond Index.(1)
Navigating credit markets again proved challenging over the past 12 months as
the interest rate climate was extremely dynamic. The first eight months of the
period were defined by the Federal Reserve's efforts to slow economic expansion.
During the last four months, investors worried whether the economy had slowed
too much. Compounding macroeconomic forces were some unusual technical factors
stemming from the Treasury Department's buyback, which artificially inflated
prices of long-term federal government debt. These developments, along with
intense stock market volatility, made for an interesting period.
Against this backdrop, we maintained our conservative approach, benchmarking the
Fund's average maturity and fully leveraging our flexible strategy. Our focus on
high-quality issuers with solid business models and strong domestic cash flows,
such as Ford, Disney and Wal-Mart, continued to pay off as the Fund's volatility
remained relatively muted. Furthermore, intense stock market volatility caused
investors to seek out safe-haven issues and many of our high-quality holdings
benefited.
Our flexible mandate also allowed us to selectively invest in higher-yielding
securities when we deemed appropriate. In the past, these bonds have offered us
a measure of insulation against rising interest rates, while boosting current
income. Ever mindful of volatility, however, we employ a more conservative
approach when choosing high-yield bonds. We generally limit our investments to
yield-to-call paper, or bonds that the market believes will soon be retired.
These securities consequently trade in a tight range around their call prices.
One example of a yield-to-call investment is Lenfest Communications, which
operates the ninth largest cable system in the U.S. and is in the process of
being acquired by Comcast, one of the nation's largest cable operators. Because
Comcast can borrow money at a much lower rate than the 10.5% coupon on the
Lenfest bonds, there is a strong likelihood that the bonds will be retired once
the deal is completed. As such, these bonds have traded in a very narrow range,
resulting in limited volatility. However, their relatively high yield provides a
nice buffer to our monthly distributions.
Not all of our exposure to higher-yielding credits paid off during the period.
Investors marked down several of our less-creditworthy holdings. For example,
our bonds issued by Radio One, a leading consolidator of the radio industry,
declined on revenue fears. One side effect of the stock market's recent swings
has been investors' growing skepticism toward unprofitable companies. As a
result, the capital markets have virtually dried up. This lack of readily
available funding has hurt companies that previously relied on investors to fund
their operations, notably Internet stocks. In 1999, many Internet stocks tapped
the then-liquid capital markets and spent the proceeds on marketing efforts,
specifically television and radio advertising. Now that many of these same
Internet
Portfolio Asset Mix October 31, 2000 October 31, 1999
--------------------------------------------------------------------------------
Investment-Grade
Corporate Bonds 84.8% 84.2%
High-Yield/High-Risk
Corporate Bonds 0.7% 13.2%
U.S. Government Obligation 8.6% --
Cash & Cash Equivalents 5.9% 2.6%
--------------------------------------------------------------------------------
Fund Profile October 31, 2000 October 31, 1999
--------------------------------------------------------------------------------
Weighted Average Maturity 1.3 Yrs. 2.4 Yrs.
Average Modified Duration* 1.2 Yrs. 2.1 Yrs.
30-Day Average Yield** 6.45% 6.32%
30-Day Average Yield
Without Reimbursement** 6.07% 6.08%
Average Rating A A-
--------------------------------------------------------------------------------
*A theoretical measure of price volatility.
**Yields will fluctuate.
(1) Both returns include reinvested dividends and distribution.
Past performance does not guarantee future results.
14 Janus Income Funds / October 31, 2000
<PAGE>
stocks have gone out of business, the demand for radio advertising has tapered
off, and many investors are concerned that the industry's sales will decline.
The inhospitable capital markets also held back companies providing alternative
telecommunication services. Many of these businesses have relied on investors to
replenish their operating resources as they built their telecommunications
networks. Now that funding is scarce, some of these companies lack the financial
resources to finish constructing their networks. Although we didn't own any of
these issuers in particular, we had limited exposure to higher-quality
telecommunications holdings, such as bonds issued by Qwest Communications. Often
the market paints substantially different companies that compete in the same
industry with the same brush. Such was the case here, as our Qwest bonds
declined and hurt our overall showing.
Looking ahead, although many observers suggest the economy is slowing, we're not
convinced. In our opinion, the economic data has been inconclusive. On our
research trips around the country, we continue to see signs of economic
strength. Furthermore, rising commodity prices remain a concern. Given this
uncertainty, we'll continue to do what we do best: thoroughly research each of
our holdings to minimize credit risk while seeking out opportunities to boost
the Fund's yield.
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 October 31, 2000. The upper right quadrant reflects
the ending value of the hypothetical investment in Janus Short-Term Bond Fund
($15,172) as compared to the Lehman Brothers 1-3 Year Government/Corporate Bond
Index ($15,597).
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.65%
Five Year, 6.02%
Since 9/1/92*, 5.24%
Janus Short-Term Bond Fund - $15,172
Lehman Brothers 1-3 Year
Government/Corporate
Bond Index - $15,597
*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 and
distributions. 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.
Adviser has voluntarily waived a portion of the fund's expenses, but reserves
the right to change the level of waiver. Without such waivers, yields and total
returns would have been lower.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Corporate Notes - 85.5%
Automotive - Truck Parts and Equipment - 1.1%
$ 1,500,000 TRW, Inc., 6.50%
senior notes, due 6/1/02 ............... $ 1,473,750
Beverages - Non-Alcoholic - 3.2%
4,500,000 Coca-Cola Enterprises, Inc., 6.375%
notes, due 8/1/01 ...................... 4,477,500
Beverages - Wine and Spirits - 0.8%
1,150,000 Joseph E. Seagram & Sons, Inc., 5.79%
company guaranteed notes, due 4/15/01 .. 1,144,250
Cable Television - 1.5%
1,850,000 Lenfest Communications, Inc., 10.50%
senior subordinated notes, due 6/15/06 . 2,085,875
Cellular Telecommunications - 1.1%
1,500,000 Price Communications Wireless, Inc.
11.75%, senior subordinated notes
due 7/15/07 ............................ 1,597,500
Chemicals - Diversified - 1.9%
2,675,000 E.I. du Pont de Nemours and Co., 6.50%
notes, due 9/1/02 ...................... 2,661,625
Chemicals - Specialty - 0.4%
500,000 NL Industries, Inc., 11.75%
senior notes, due 10/15/03 ............. 502,500
Containers - Paper and Plastic - 1.1%
$ 490,000 Container Corp. of America, 11.25%
senior notes, due 5/1/04 ............... $ 491,225
1,000,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02 ...... 1,015,000
1,506,225
Cosmetics and Toiletries - 0.5%
700,000 Colgate-Palmolive Co., 6.58%
notes, due 11/5/02 ..................... 696,500
Diversified Financial Services - 11.3%
3,750,000 Associates Corp. N.A., 5.85%
senior notes, due 1/15/01 .............. 3,740,625
General Electric Capital Corp.:
6,000,000 7.00%, notes, due 3/1/02 ............... 6,030,000
2,100,000 7.25%, notes, due 5/3/04 ............... 2,134,125
IBM Credit Corp.:
1,400,000 6.64%, notes, due 10/29/01 ............. 1,401,750
2,500,000 7.00%, notes, due 1/28/02 .............. 2,509,375
15,815,875
Electric - Integrated - 2.5%
3,500,000 Southern California Edison Co., 5.875%
notes, due 1/15/01 ..................... 3,491,250
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 15
<PAGE>
Janus | Short-Term Bond Fund
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
--------------------------------------------------------------------------------
Finance - Auto Loans - 7.4%
Ford Motor Credit Co.:
$ 3,750,000 6.25%, notes, due 11/8/00 .............. $ 3,749,587
2,000,000 5.75%, notes, due 1/25/01 .............. 1,995,000
2,000,000 5.125%, notes, due 10/15/01 ............ 1,967,500
700,000 7.50%, notes, due 6/15/03 .............. 703,500
2,000,000 General Motors Acceptance Corp., 6.375%
notes, due 12/1/01 ..................... 1,992,500
10,408,087
Finance - Credit Card - 1.1%
1,500,000 American Express Credit Corp., 6.125%
senior notes, due 11/15/01 ............. 1,490,625
Finance - Investment Bankers/Brokers - 4.3%
Merrill Lynch & Company, Inc.:
3,750,000 6.00%, notes, due 3/1/01 ............... 3,740,625
2,300,000 7.52%, notes, due 5/3/02 ............... 2,320,125
6,060,750
Finance - Other Services - 1.4%
2,000,000 Racers-Kellogg, 5.75%
bonds, due 2/2/01+ ..................... 1,990,000
Food - Flour and Grain - 1.8%
2,500,000 Archer-Daniels Midland Co., 6.25%
notes, due 5/15/03 ..................... 2,462,500
Food - Retail - 6.8%
Fred Meyer, Inc.:
1,500,000 7.15%, company guaranteed notes
due 3/1/03 ............................. 1,490,625
1,400,000 7.375%, company guaranteed notes
due 3/1/05 ............................. 1,394,484
Safeway, Inc.:
2,000,000 5.75%, notes, due 11/15/00 ............. 1,997,500
4,750,000 5.875%, notes, due 11/15/01 ............ 4,672,812
9,555,421
Medical - Drugs - 3.7%
2,500,000 SmithKline Beecham PLC, 6.75%
company guaranteed notes, due 10/30/01 . 2,492,248
2,735,000 Warner-Lambert Co., 5.75%
notes, due 1/15/03 ..................... 2,687,137
5,179,385
Money Center Banks - 4.3%
3,000,000 Bank of America Corp., 6.65%
senior notes, due 5/1/01 ............... 2,996,250
3,000,000 Chase Manhattan Corp., 5.50%
notes, due 2/15/01 ..................... 2,985,000
5,981,250
Multimedia - 4.4%
3,750,000 Time Warner, Inc., 6.10%
pass-thru asset trust securities
due 12/30/01+ .......................... 3,693,750
2,500,000 Walt Disney Co., 6.375%
senior notes, due 3/30/01 .............. 2,493,750
6,187,500
Pipelines - 1.8%
2,500,000 Enron Corp., 6.45%
notes, due 11/15/01 .................... 2,481,250
Radio - 1.3%
1,800,000 Radio One, Inc., 12.00%
company guaranteed notes, due 5/15/04(OMEGA) 1,863,000
Retail - Discount - 2.5%
3,500,000 Wal-Mart Stores, Inc., 6.50%
notes, due 6/1/03 ...................... 3,482,500
Retail - Restaurants - 1.0%
1,400,000 McDonald's Corp., 6.00%
notes, due 6/23/02(OMEGA) .............. 1,379,000
Savings/Loan/Thrifts - 1.4%
$ 2,000,000 Dime Bancorp, Inc., 7.00%
senior notes, due 7/25/01 .............. $ 1,992,500
Super-Regional Banks - 3.0%
3,750,000 NationsBank Corp., 5.75%
senior notes, due 3/15/01 .............. 3,735,938
525,000 Wells Fargo & Co., 5.75%
notes, due 2/1/03 ...................... 513,188
4,249,126
Telecommunication Equipment - 2.5%
3,500,000 Lucent Technologies, Inc., 6.90%
notes, due 7/15/01 ..................... 3,491,250
Telecommunication Services - 1.6%
2,500,000 NTL, Inc., zero coupon
senior notes, due 2/1/06(OMEGA) ........ 2,200,000
Telephone - Integrated - 7.2%
3,750,000 Qwest Capital Funding, Inc., 6.125%
company guaranteed notes, due 7/15/02 .. 3,693,750
500,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07 ...... 543,125
1,850,000 Qwest Corp., 6.375%
notes, due 10/15/02 .................... 1,831,500
4,000,000 WorldCom, Inc., 6.125%
senior notes, due 8/15/01 .............. 3,975,000
10,043,375
Telephone - Local - 2.1%
3,000,000 Southwestern Bell Communications Capital
Corp., 6.375%, notes, due 4/1/01 ....... 2,992,500
Wire and Cable Products - 0.5%
650,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05 .. 643,500
--------------------------------------------------------------------------------
Total Corporate Notes (cost $120,490,109) ................... 119,586,369
--------------------------------------------------------------------------------
U.S. Government Obligation - 8.6%
U.S. Treasury Note
12,000,000 6.125%, due 8/31/02 (cost $12,023,685) . 12,028,440
--------------------------------------------------------------------------------
Repurchase Agreement - 8.1%
11,400,000 BankAmerica Securities L.L.C., 6.63%
dated 10/31/00, maturing 11/1/00, to be
repurchased at $11,402,100 collateralized
by $14,694,410 in U.S. Government
Agency Strips, 0%, 3/25/18-11/1/30;
$1,379,628 in U.S. Treasuries,
0%-8.125%, 8/15/19-11/30/00; with
respective values of $10,229,792 and
$1,398,215 (cost $11,400,000) .......... 11,400,000
--------------------------------------------------------------------------------
Total Investments (total cost $143,913,794) - 102.2% ........ 143,014,809
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.2%) (3,115,812)
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 139,898,997
--------------------------------------------------------------------------------
Summary of Investments by Country, October 31, 2000
Country % of Investment Securities Market Value
--------------------------------------------------------------------------------
United Kingdom 1.7% $ 2,492,248
United States++ 98.3% 140,522,561
--------------------------------------------------------------------------------
Total 100.0% $ 143,014,809
++Includes Short-Term Securities (90.3% excluding Short-Term Securities)
See Notes to Schedules of Investments.
16 Janus Income Funds / October 31, 2000
<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 fiscal year ended October 31, 2000, Janus Money Market Fund - Investor
Shares ranked 68 out of 368 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 - Investor Shares ranked 30 out of
133 in the U.S. Government Money Market Category,(2) while Janus Tax-Exempt
Money Market Fund - Investor Shares ranked 27 out of 134 in the U.S. Tax-Exempt
Money Market Category.(3)
Investors spent much of the past 12 months trying to determine the Federal
Reserve's ("Fed") intentions toward U.S. monetary policy, keeping markets on
edge as a result. In November, the Fed delivered a quarter-point increase in
short-term interest rates, its third and final rate hike in 1999. However, a
continuation of strong economic growth and budding signs of inflation in early
2000 convinced policymakers to boost rates by yet another quarter point in
February and again in March. By May, their attempt to stymie inflation still had
not taken hold, so, for the first time since 1997, the Fed increased rates by a
half point.
In this rising interest rate environment, the Funds emphasized liquidity in
order to take advantage of reinvestment opportunities at higher yields. That
said, maturities overall were naturally kept short. However, when the
opportunity presented itself, we took advantage of several buying opportunities
in longer-term securities. In particular, we increased our exposure in one-year
securities, which are at the longest end of our spectrum, believing their rates
already reflected the risks of further increases. This strategy enabled us to
lock in higher yields before anticipated rate hikes actually took place.
As it turns out, May was the last of the Fed's increases. Central bankers opted
to hold interest rates steady following several economic reports that suggested
growth might finally be moderating and inflation may no longer be a threat.
These encouraging reports led the money markets to conclude that rates will
actually be lowered sometime within the next year, thereby lowering the yields
available on one-year issues. Nonetheless, if policymakers do lower rates, these
longer-term securities will help keep the yield on the Funds at higher levels.
Currently, we see no reason to disagree with the market consensus that the Fed's
tightening cycle has come to an end, and we believe we may actually see a shift
toward easing monetary policy in coming months. As such, we have positioned the
Funds to capitalize on this possibility, while also maintaining the flexibility
that will enable us to respond to any changes that may arise in the economic
environment.
In closing, we'd like to thank you for your continued confidence and investment
in Janus Money Market Funds.
(1) Lipper, Inc. defines a U.S. Money Market fund as one that invests in
"high-quality financial instruments rated in the top two grades with
dollar-denominated average maturities of less than 90 days" and that
intends "to keep constant net asset value." As of October 31, 2000, Janus
Money Market Fund - Investor Shares ranked 68/368 for the 1-year period and
48/245 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 October 31, 2000, Janus Government Money Market
Fund - Investor Shares ranked 30/133 for the 1-year period and 25/98 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 October 31, 2000, Janus Tax-Exempt Money Market Fund - Investor
Shares ranked 27/134 for the 1-year period and 16/113 of Tax-Exempt Money
Market funds for the 5-year period.
Lipper rankings are based on total return, including reinvestment of dividends,
distributions 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.
Janus Income Funds / October 31, 2000 17
<PAGE>
Janus | Money Market Fund
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
Bank Notes - 0.5%
Bank One, Canada
$ 50,000,000 6.66%, 2/26/01 (cost $50,000,000) ...... $ 50,000,000
--------------------------------------------------------------------------------
Short-Term Corporate Notes - 32.0%
Accor S.A.:
50,000,000 6.58%, 1/8/01 .......................... 49,378,556
50,000,000 6.55%, 1/25/01 ......................... 49,226,736
Ariesone Metafolio Corp.
140,190,000 6.57%, 11/6/00 ......................... 140,062,077
AT&T Corp.
20,000,000 6.55%, 2/8/01 .......................... 19,639,750
Banco de la Provincia de Buenos Aries S.A.:
20,000,000 6.335%, 11/9/00 ........................ 19,971,844
36,384,000 6.52%, 12/13/00 ........................ 36,107,239
Banco Generale de Negocios S.A.:
25,000,000 6.54%, 2/5/01 .......................... 24,564,000
25,000,000 6.48%, 8/3/01 .......................... 23,762,500
Banco Hipotecario S.A.
20,000,000 6.54%, 11/15/00 ........................ 19,949,133
Banco Itau S.A.:
20,000,000 6.54%, 1/22/01 ......................... 19,702,067
20,000,000 6.50%, 2/21/01 ......................... 19,595,556
18,000,000 6.47%, 3/23/01 ......................... 17,540,630
Banco Rio de la Plata S.A.
67,500,000 6.525%, 11/29/00 ....................... 67,157,437
Bank One, Australia, Ltd.
20,000,000 6.56%, 1/22/01 ......................... 19,701,155
BankBoston Latino Americano S.A.
30,000,000 6.57%, 1/30/01 ......................... 29,507,250
Banque et Caisse Epargne
de L'Etat, Luxembourg:
122,000,000 6.52%-6.54%, 1/22/01 ................... 120,185,386
25,000,000 6.53%, 1/25/01 ......................... 24,614,549
50,000,000 6.54%, 1/30/01 ......................... 49,182,500
47,000,000 6.555%, 2/1/01 ......................... 46,212,672
50,000,000 6.50%, 2/20/01 ......................... 48,997,917
Cooper Industries, Inc.
25,000,000 6.58%, 11/2/00+ ........................ 24,995,431
Countrywide Home Loans, Inc.
50,000,000 6.58%, 11/8/00 ......................... 49,936,028
CSN Overseas:
60,000,000 6.55%, 12/8/00 ......................... 59,596,083
60,000,000 6.55%, 12/12/00 ........................ 59,552,417
40,000,000 6.55%, 12/15/00 ........................ 39,679,778
Eaton Corp.:
50,000,000 6.60%, 2/9/01ss ........................ 49,083,333
40,000,000 6.54%, 2/28/01ss ....................... 39,135,267
Formosa Plastic Corp. USA:
25,000,000 6.53%, 1/25/01 ......................... 24,614,549
25,000,000 6.53%, 1/31/01 ......................... 24,587,340
25,000,000 6.50%, 2/23/01 ......................... 24,485,417
Homeside Lending, Inc.:
80,000,000 6.56%, 1/12/01 ......................... 78,950,400
20,000,000 6.54%, 1/16/01 ......................... 19,723,867
50,000,000 6.565%, 1/17/01 ........................ 49,297,910
43,500,000 6.54%, 1/19/01 ......................... 42,875,703
HSBC Bank Argentina S.A.
50,000,000 6.41%, 6/15/01 ......................... 47,987,972
Hylsa S.A. de C.V.:
30,000,000 Series A, 6.55%, 1/17/01 ............... 29,579,708
30,000,000 Series B, 6.55%, 1/17/01 ............... 29,579,708
Jefferson-Pilot Corp.:
50,000,000 6.43%, 5/25/01+ ........................ 48,169,236
25,000,000 6.37%, 7/20/01+ ........................ 23,845,437
KeyCorp
67,000,000 6.53%-6.60%, 12/20/00 .................. 66,402,881
Short-Term Corporate Notes - (continued)
Knights Funding Corp. I:
$ 20,000,000 6.54%, 2/7/01 .......................... $ 19,643,933
20,000,000 6.43%, 5/2/01 .......................... 19,349,855
Knights Funding Corp. II:
15,000,000 6.54%, 2/7/01 .......................... 14,732,950
20,000,000 6.43%, 5/2/01 .......................... 19,349,855
Landesbank Hessen-Thueringen Girozentrale
25,000,000 6.935%, 5/2/01 ......................... 24,998,229
LG-Caltex Oil Corp.
50,000,000 6.52%, 2/20/01 ......................... 48,994,833
Mitsubishi Motors Credit of America, Inc.:
20,000,000 6.60%, 11/1/00 ......................... 20,000,000
20,000,000 6.60%, 11/2/00 ......................... 19,996,333
75,000,000 6.58%-6.59%, 11/9/00 ................... 74,890,244
23,000,000 6.60%, 11/10/00 ........................ 22,962,050
80,000,000 6.59%-6.63%, 11/13/00 .................. 79,823,600
40,000,000 6.60%, 11/13/00 ........................ 39,912,000
50,000,000 6.59%, 11/17/00 ........................ 49,853,556
National Bank of Canada, New York
25,000,000 6.59%, 12/1/00 ......................... 24,862,708
Northern Rock PLC:
25,000,000 6.52%, 2/13/01 ......................... 24,529,111
25,000,000 6.53%, 2/14/01 ......................... 24,523,854
NSTAR, Inc.
43,750,000 6.57%, 11/14/00ss ...................... 43,646,203
Omnicom Finance, Inc.:
30,000,000 6.58%, 11/6/00 ......................... 29,972,583
25,000,000 6.58%, 11/7/00 ......................... 24,972,583
30,000,000 6.59%, 11/8/00 ......................... 29,961,558
31,500,000 6.58%, 11/13/00 ........................ 31,430,910
25,000,000 6.58%, 11/14/00 ........................ 24,940,597
30,000,000 6.58%, 11/15/00 ........................ 29,923,233
22,000,000 6.59%, 11/16/00 ........................ 21,939,592
35,000,000 6.59%, 11/20/00 ........................ 34,878,268
20,769,000 6.57%, 11/21/00 ........................ 20,693,193
20,000,000 6.585%, 11/22/00 ....................... 19,923,175
30,000,000 6.58%, 11/27/00 ........................ 29,857,433
20,000,000 6.585%, 12/4/00 ........................ 19,879,275
Orix America, Inc.
40,000,000 6.57%, 11/13/00ss ...................... 39,912,400
Qwest Corp.
71,000,000 6.70%, 1/26/01 ......................... 69,863,606
Sigma Finance, Inc.:
35,000,000 6.50%, 12/5/00+ ........................ 34,785,139
20,000,000 6.56%, 1/11/01+ ........................ 19,741,244
50,000,000 6.55%, 1/25/01+ ........................ 49,226,736
50,000,000 6.52%, 2/21/01+ ........................ 48,985,778
50,000,000 6.42%, 4/23/01+ ........................ 48,457,417
100,000,000 6.45%, 6/4/01+ ......................... 96,147,917
Swedbank Foreningssparbanken A.B.,
New York
50,000,000 6.50%, 5/11/01 ......................... 48,275,694
Textron Financial Corp.:
50,000,000 6.55%, 11/30/00 ........................ 49,736,181
25,000,000 6.57%, 1/4/01 .......................... 24,708,000
25,000,000 6.60%, 1/5/01 .......................... 24,702,083
72,000,000 6.58%, 1/16/01 ......................... 70,999,840
Unibanco Uniao de Bancos Brasileiros S.A.:
40,000,000 6.425%, 4/11/01 ........................ 38,850,639
25,000,000 6.42%, 4/12/01 ......................... 24,277,750
65,000,000 6.49%, 7/13/01 ......................... 62,023,614
Unifunding, Inc.
50,000,000 6.53%, 1/22/01 ......................... 49,256,306
Zen-Noh Unico America Corp.
30,000,000 6.585%, 11/17/00 ....................... 29,912,200
--------------------------------------------------------------------------------
Total Short-Term Corporate Notes (cost $3,397,441,677) ...... 3,397,441,677
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
18 Janus Income Funds / October 31, 2000
<PAGE>
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
Taxable Variable Rate Demand Notes - 6.0%
Bannockburn Associates L.L.C.
$ 9,465,000 6.70%, 4/1/27 .......................... $ 9,465,000
Bell County, Texas Health Facilities
Development Corp. Revenue, (Scott
& White Memorial Hospital):
23,100,000 Series B1, 6.62%, 8/15/29 .............. 23,100,000
32,300,000 Series B2, 6.62%, 8/15/29 .............. 32,300,000
Breckenridge Terrace L.L.C.
14,980,000 6.62%, 5/1/39 .......................... 14,980,000
Brosis Finance L.L.C.
22,700,000 6.62%, 9/1/19 .......................... 22,700,000
Capital One Funding Corp.
22,393,000 6.65%, 12/2/19 ......................... 22,393,000
Carolina Medi-Plan, Inc.
20,000,000 6.62%, 6/1/22 .......................... 20,000,000
48,000,000 CMCFC Mount Vernon L.P.
Multifamily Housing, Virginia
6.62%, 1/1/10 .......................... 48,000,000
Crouse Health Hospital, Inc.
15,060,000 6.90%, 7/1/17 .......................... 15,060,000
Crozer-Keystone Health Systems
24,525,000 6.70%, 12/15/21 ........................ 24,525,000
Eagle County, Colorado Housing Facility
Revenue, (BC Housing L.L.C. Project)
Series A:
9,100,000 6.62%, 6/1/27 .......................... 9,100,000
8,000,000 6.67%, 5/1/39 .......................... 8,000,000
15,000,000 Eufaula, Alabama Industrial Development
Board, (Chia Tai Project)
6.75%, 6/1/13 .......................... 15,000,000
Grant Hospital L.L.C.
20,000,000 6.70%, 7/1/19 .......................... 20,000,000
HHH Supply and Investment Co.
15,000,000 6.70%, 7/1/29 .......................... 15,000,000
16,300,000 Lenexa, Kansas Industrial Revenue
(Labone, Inc. Project), Series A
6.70%, 9/1/09 .......................... 16,300,000
59,000,000 Los Angeles, California Community
Redevelopment Agency, Series A
6.70%, 12/1/18 ......................... 59,000,000
Louisiana Health Systems Corp. Revenue
20,675,000 Series B, 6.62%, 10/1/22 .................. 20,675,000
34,805,000 Montgomery, Alabama BMC Special Care
Facilities Financing Authority, (Baptist
Medical Center), Series C
6.60%, 11/15/29 ........................ 34,805,000
Patrick Schaumburg Automobiles, Inc.
8,000,000 6.70%, 7/1/08 .......................... 8,000,000
Racetrac Capital L.L.C.
37,000,000 6.62%, 4/1/18 .......................... 37,000,000
Rehau, Inc.
25,000,000 6.80%, 10/1/19 ......................... 25,000,000
St. Francis Place L.P.
16,700,000 6.70%, 12/1/08+ ........................ 16,700,000
St. George Wellness Center
20,000,000 6.70%, 9/1/40 .......................... 20,000,000
Sempra Energy Employee Stock Ownership
60,000,000 Plan & Trust, Series 1999, 6.72%, 11/1/14+ 60,000,000
Texas Veterans Housing Assistance, Series A-2
37,500,000 6.60%, 12/1/29 ......................... 37,500,000
5,005,000 Union City, Tennessee Industrial
Development Board, (Cobank
L.L.C. Project), 6.65%, 1/1/25 ......... 5,005,000
--------------------------------------------------------------------------------
Total Taxable Variable Rates Demand Notes
(cost $639,608,000) ...................................... 639,608,000
--------------------------------------------------------------------------------
Floating Rate Notes - 20.8%
American Honda Finance Corp.:
$ 25,000,000 6.78813%, 1/16/01+ ..................... $ 24,998,975
50,000,000 6.61%, 2/16/01+ ........................ 49,998,096
50,000,000 6.66%, 6/14/01+ ........................ 50,000,000
50,000,000 6.66%, 6/22/01+ ........................ 50,000,000
Associates Corp. N.A.
75,000,000 6.66%, 6/26/01 ......................... 75,000,000
AT&T Corp.
50,000,000 6.65%, 7/19/01 ......................... 50,000,000
Bank of America N.A.
50,000,000 6.78%, 9/6/01 .......................... 50,031,348
Bank One Corp.:
50,000,000 6.67%, 1/3/01 .......................... 50,000,000
25,000,000 6.795%, 3/23/01 ........................ 25,012,849
25,000,000 6.95438%, 4/4/01 ....................... 25,015,007
Bank One N.A.:
50,000,000 6.69%, 4/19/01 ......................... 49,982,128
50,000,000 6.70875%, 6/21/01 ...................... 50,003,935
25,000,000 6.81%, 9/6/01 .......................... 25,022,199
Bear Stearns & Companies, Inc.:
30,900,000 6.756375%, 2/6/01 ...................... 30,963,590
31,600,000 6.82%, 2/16/01 ......................... 31,611,627
29,250,000 6.81875%, 3/2/01 ....................... 29,262,366
CIT Group, Inc.:
20,000,000 6.64%, 5/9/01 .......................... 19,993,268
50,000,000 6.0375%, 6/6/01 ........................ 49,985,529
20,000,000 6.9725%, 7/9/01 ........................ 20,007,680
50,000,000 6.71313%, 7/16/01 ...................... 49,966,058
Comerica Bank
50,000,000 6.61%, 11/20/00 ........................ 49,998,469
Commerzbank A.G., New York
25,000,000 6.585%, 6/28/01 ........................ 24,994,472
Countrywide Home Loans, Inc.:
50,000,000 6.69%, 5/21/01 ......................... 50,000,000
50,000,000 6.74%, 5/22/01 ......................... 49,997,233
50,000,000 6.76%, 9/5/01 .......................... 49,995,899
50,000,000 6.77%, 9/5/01 .......................... 50,000,000
First Union National Bank:
50,000,000 6.82%, 11/22/00 ........................ 50,000,000
50,000,000 6.61938%, 5/18/01 ...................... 50,000,000
25,000,000 6.73938%, 6/8/01 ....................... 25,012,610
25,000,000 6.6175%, 7/17/01 ....................... 25,000,000
50,000,000 6.69%, 7/26/01 ......................... 49,996,342
First USA Bank N.A.
25,000,000 6.88%, 7/19/01 ......................... 25,030,128
Fleet National Bank:
20,000,000 6.84%, 12/14/00 ........................ 20,002,791
30,000,000 6.98%, 8/3/01 .......................... 30,060,814
Household Finance Corp.
50,000,000 6.65%, 11/16/00 ........................ 50,000,000
National Bank of Canada, New York
25,000,000 6.82%, 11/22/00 ........................ 24,999,441
National Bank of Commerce
50,000,000 6.67%, 7/20/01 ......................... 50,017,447
National Rural Utilities
Cooperative Finance Corp.
50,000,000 6.73%, 7/20/01 ......................... 49,989,524
Northern Rock PLC
45,000,000 6.62%, 4/20/01+ ........................ 45,000,000
Sigma Finance, Inc.
100,000,000 6.68%, 7/19/01+ ........................ 99,986,117
Skandinaviska Enskilda Banken:
25,000,000 6.64%, 1/19/01 ......................... 24,998,407
25,000,000 6.59%, 6/28/01 ......................... 24,995,262
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 19
<PAGE>
Janus | Money Market Fund
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
Floating Rate Notes - (continued)
Societe Generale, New York:
$ 50,000,000 6.60%, 11/9/00 ......................... $ 49,999,235
50,000,000 6.59%, 12/4/00 ......................... 49,996,464
25,000,000 6.57%, 12/18/00 ........................ 24,996,935
SouthTrust Bank N.A.
100,000,000 6.65%, 5/3/01 .......................... 99,969,480
Standard Chartered Bank, New York
50,000,000 6.60%, 11/20/00 ........................ 49,998,215
Textron Financial Corp.
75,000,000 6.75%, 2/26/01ss ....................... 75,001,170
U.S. Bank N.A.
26,000,000 6.83938%, 11/15/00 ..................... 26,001,369
Unilever Capital Corp.
50,000,000 6.68313%, 9/7/01 ....................... 50,000,000
Zurich Capital Markets, Inc.
50,000,000 6.72%, 7/26/10ss ....................... 50,000,000
--------------------------------------------------------------------------------
Total Floating Rate Notes (cost $2,202,892,479) ............. 2,202,892,479
--------------------------------------------------------------------------------
Loan Participations - 1.6%
GMAC Mortgage Corp.:
100,000,000 6.6615%, 11/1/00 ....................... 100,000,000
70,000,000 6.66%, 12/1/00ss ....................... 69,611,337
--------------------------------------------------------------------------------
Total Loan Participations (cost $169,611,337) ............... 169,611,337
--------------------------------------------------------------------------------
Certificates of Deposit - 15.8%
Bank of Nova Scotia:
25,000,000 6.695%, 2/12/01 ........................ 24,996,319
25,000,000 6.76%, 2/22/01 ......................... 24,997,064
Bank One N.A.:
25,000,000 6.71%, 2/12/01 ......................... 24,996,655
50,000,000 6.78%, 3/8/01 .......................... 50,000,000
25,000,000 6.90%, 4/30/01 ......................... 24,998,248
Banque Nationale de Paris, Chicago:
50,000,000 6.70%, 2/8/01 .......................... 49,978,596
25,000,000 6.88%, 4/30/01 ......................... 24,997,664
Bayreische Hypo Und Vereinsbank A.G.
New York:
25,000,000 6.71%, 2/13/01 ......................... 24,997,298
25,000,000 6.95%, 5/2/01 .......................... 25,000,000
BNP Paribas S.A., New York
25,000,000 6.73%, 2/7/01 .......................... 24,997,453
Canadian Imperial Bank of Commerce,
New York
25,000,000 7.05%, 5/3/01 .......................... 24,998,814
Commerzbank A.G., New York:
50,000,000 6.745%, 2/22/01 ........................ 49,994,127
25,000,000 6.82%, 3/28/01 ......................... 24,995,228
31,000,000 6.83%, 4/27/01 ......................... 30,997,150
Compagnie Financiere de CIC et de L'Union
Europeene:
24,000,000 6.39%, 12/20/00 ........................ 23,999,693
25,000,000 6.85%, 4/18/01 ......................... 24,996,728
25,000,000 7.475%, 6/4/01 ......................... 24,995,146
Deutsche Bank A.G., New York:
25,000,000 6.71%, 1/25/01 ......................... 25,000,000
25,000,000 6.71%, 2/14/01 ......................... 24,997,271
27,000,000 6.75%, 2/22/01 ......................... 26,996,037
KBC Bank N.V., New York
25,000,000 6.75%, 2/20/01 ......................... 24,997,117
LaSalle Bank N.A.
25,000,000 6.70%, 2/1/01 .......................... 24,997,011
Certificates of Deposit - (continued)
Merita Bank PLC, New York:
$ 25,000,000 6.70%, 2/2/01 .......................... $ 24,996,978
25,000,000 6.73%, 2/8/01 .......................... 24,997,427
50,000,000 6.755%, 2/28/01 ........................ 50,000,000
25,000,000 6.815%, 3/28/01 ........................ 24,996,182
25,000,000 6.81%, 4/17/01 ......................... 24,996,748
25,000,000 6.63%, 5/1/01 .......................... 25,000,000
25,000,000 7.45%, 6/4/01 .......................... 24,995,838
Natexis Banque, New York:
25,000,000 6.64%, 1/24/01 ......................... 25,000,000
25,000,000 6.78%, 2/2/01 .......................... 24,997,584
50,000,000 6.77%, 2/8/01 .......................... 50,001,329
50,000,000 6.77%, 2/26/01 ......................... 50,003,141
25,000,000 6.84%, 3/28/01 ......................... 24,996,183
National Bank of Canada, New York
25,000,000 6.75%, 2/9/01 .......................... 24,997,402
National Westminster Bank PLC, New York
25,000,000 7.23%, 5/9/01 .......................... 24,996,332
NordDeutsche LandesBank
Girozentrale, New York:
25,000,000 6.70%, 2/7/01 .......................... 24,996,816
25,000,000 6.95%, 5/2/01 .......................... 25,000,000
Regions Bank
25,000,000 6.70%, 2/2/01 .......................... 24,996,978
Skandinaviska Enskilda Banken:
25,000,000 6.76%, 3/1/01 .......................... 25,000,000
25,000,000 7.23%, 5/8/01 .......................... 24,996,960
Societe Generale, New York:
25,000,000 6.81%, 4/18/01 ......................... 24,996,727
25,000,000 6.82%, 4/26/01 ......................... 24,997,714
SouthTrust Bank N.A.
50,000,000 6.78%, 1/24/01 ......................... 50,000,000
Standard Chartered Bank, New York:
25,000,000 6.655%, 1/23/01 ........................ 24,999,717
25,000,000 6.70%, 2/8/01 .......................... 24,996,783
25,000,000 6.83%, 4/27/01 ......................... 24,997,701
Svenska Handelsbanken A.B., New York:
25,000,000 6.71%, 2/7/01 .......................... 24,996,816
25,000,000 6.88%, 4/30/01 ......................... 24,997,664
Swedbank Sparbanken Svenge A.B.
New York:
25,000,000 6.72%, 2/7/01 .......................... 24,997,453
28,000,000 6.74%, 2/22/01 ......................... 27,996,711
25,000,000 7.185%, 6/11/01 ........................ 24,997,846
Toronto Dominion Bank, New York:
25,000,000 6.30%, 12/20/00 ........................ 24,998,402
19,000,000 6.69%, 2/5/01 .......................... 18,996,796
UBS A.G., Stamford:
25,000,000 6.135%, 11/29/00 ....................... 24,998,811
25,000,000 6.85%, 3/28/01 ......................... 24,996,183
25,000,000 6.82%, 4/27/01 ......................... 24,997,701
Unibank A/S, New York:
25,000,000 6.72%, 2/7/01 .......................... 24,997,453
28,000,000 6.92%, 3/30/01 ......................... 27,997,835
Westpac Banking Corp., New York
20,000,000 6.64%, 4/12/01 ......................... 20,002,322
--------------------------------------------------------------------------------
Total Certificates of Deposit (cost $1,676,850,152) ......... 1,676,850,152
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
20 Janus Income Funds / October 31, 2000
<PAGE>
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
Put Bonds - 11.8%
Heller Financial, Inc. (seven day put)
$ 150,000,000 6.805%, 1/12/01 ........................ $ 150,000,000
JP Morgan, Inc. (seven day put)
500,000,000 6.705%, 2/14/01 ........................ 500,000,000
Lehman Brothers, Inc. (same day put)
600,000,000 6.805%, 1/14/01 ........................ 600,000,000
--------------------------------------------------------------------------------
Total Put Bonds (cost $1,250,000,000) ....................... 1,250,000,000
--------------------------------------------------------------------------------
Repurchase Agreements - 11.8%
400,000,000 BankAmerica Securities L.L.C., 6.73%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $400,074,778
collateralized by $211,183,934 in
Asset Backed Securities, 0%-7.87%,
7/15/05-5/1/32, Aaa, AAA; $455,717,000
in Collateralized Mortgage Obligations,
0%-7.75%, 7/15/04-10/15/35, Aaa; with
respective values of $199,029,900
and $208,970,101 ....................... 400,000,000
200,000,000 Barclays Capital, Inc., 6.73%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $200,037,389
collateralized by $203,077,874 in
Asset Backed Securities, 6.75%-8.25%,
11/2/02-9/15/27, AAA; with a value of
$204,000,000 ........................... 200,000,000
150,000,000 Bear Stearns & Companies, Inc., 6.705%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $150,027,938
collateralized by $476,785,977 in U.S.
Government Agencies, 0%-8.50%,
3/15/07-9/20/30 with a value
of $158,815,783 ........................ 150,000,000
500,000,000 Deutsche Bank Securities, Inc., 6.718%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $500,093,306
collateralized by $323,162,283 in Asset
Backed Securities, 1.839%-6.54%,
11/15/02-6/10/18, Aaa-AAA;
$1,429,441,459 in Collateralized
Mortgage Obligations, 0%-7.75%,
10/15/06-5/17/32, Aaa, AAA; $1,211,000
in Short-Term Corporate Notes, 0%,
12/18/00, P-1; with respective values
of $69,194,139, $439,605,450
and $1,200,696 ......................... 500,000,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $1,250,000,000) ........... 1,250,000,000
--------------------------------------------------------------------------------
Total Investments (total cost $10,636,403,645) - 100.3% ..... 10,636,403,645
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.3%) (32,679,656)
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $10,603,723,989
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 21
<PAGE>
Janus | Government Money Market Fund
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
U.S. Government Agency Notes - 16.4%
Fannie Mae:
$ 5,000,000 4.85%, 11/20/00 ........................ $ 4,996,517
5,000,000 6.52%, 1/4/01 .......................... 4,942,044
15,000,000 6.49%-6.50%, 1/11/01 ................... 14,807,906
10,000,000 6.49%, 1/18/01 ......................... 9,859,383
10,000,000 6.49%, 1/25/01 ......................... 9,846,764
5,000,000 6.42%, 2/8/01 .......................... 4,911,725
5,000,000 6.44%, 2/15/01 ......................... 4,905,189
5,000,000 6.48%, 2/22/01 ......................... 4,997,654
5,000,000 6.445%, 2/23/01 ........................ 4,997,103
5,000,000 6.44%, 3/1/01 .......................... 4,892,667
5,000,000 6.39%, 3/15/01 ......................... 4,881,075
5,000,000 6.39%, 3/29/01 ......................... 4,868,650
5,000,000 6.30%, 6/6/01 .......................... 4,810,125
12,000,000 6.47%, 6/11/01 ......................... 11,521,220
Federal Home Loan Bank System:
5,000,000 6.49%, 1/24/01 ......................... 4,924,283
5,000,000 6.42%, 1/26/01 ......................... 4,923,317
5,000,000 6.41%, 2/7/01 .......................... 4,912,753
5,000,000 6.43%, 8/1/01 .......................... 4,997,195
Freddie Mac:
5,000,000 6.43%, 2/1/01 .......................... 4,917,839
5,000,000 6.45%, 3/1/01 .......................... 4,892,500
5,000,000 6.285%, 3/29/01 ........................ 4,870,808
4,570,000 6.65%, 4/11/01 ......................... 4,434,087
23,169,000 6.27%-6.65%, 4/26/01 ................... 22,439,094
5,000,000 6.71%, 5/24/01 ......................... 4,809,883
3,412,000 6.29%, 6/21/01 ......................... 3,273,693
20,000,000 6.26%-6.52%, 7/19/01 ................... 19,080,972
7,511,000 6.20%-6.24%, 9/13/01 ................... 7,100,479
Sallie Mae
5,000,000 6.55%, 2/14/01 ......................... 4,999,283
--------------------------------------------------------------------------------
Total U.S. Government Agency Notes (cost $195,814,208) ...... 195,814,208
--------------------------------------------------------------------------------
U.S. Government Agency Variable Notes - 8.4%
Fannie Mae:
10,000,000 6.46%, 11/22/00 ........................ 9,999,541
10,000,000 6.48%, 11/2/01 ......................... 9,990,405
Federal Home Loan Bank System:
10,000,000 6.804%, 5/24/01 ........................ 9,995,143
10,000,000 6.428%, 7/17/01 ........................ 9,995,759
15,000,000 6.42%, 8/15/01 ......................... 14,991,903
10,000,000 6.43%, 8/15/01 ......................... 9,994,602
15,000,000 6.46%, 8/17/01 ......................... 14,991,888
10,000,000 6.43%, 9/26/01 ......................... 9,993,828
Freddie Mac
10,000,000 6.43%, 7/19/01 ......................... 9,995,726
--------------------------------------------------------------------------------
Total U.S. Government Agency Variable Notes
(cost $99,948,795) ....................................... 99,948,795
--------------------------------------------------------------------------------
U.S. Government Guarantee Notes and Loans - 20.8%
Army and Air Force Exchange
35,000,000 6.62%, 11/6/00 ......................... 35,000,000
Navy Exchange Service Command
24,500,000 6.69%, 11/1/00 ......................... 24,500,000
Washington Aircraft Hire
188,895,084 6.59%, 11/6/00 ......................... 188,895,084
--------------------------------------------------------------------------------
Total U.S. Government Guarantee Notes and Loans
(cost $248,395,084 ) ..................................... 248,395,084
--------------------------------------------------------------------------------
Repurchase Agreements - 55.6%
$ 103,800,000 ABN AMRO Securities, Inc., 6.59%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $103,819,001
collateralized by $101,713,471 in
U.S. Government Agencies, 7.125%-
7.50%, 11/15/01-2/20/28; $3,801,000
in U.S. Treasuries, 6.25%, 7/31/02; with
respective values of $102,004,199
and $3,872,269 ......................... $ 103,800,000
38,400,000 ABN AMRO Securities, Inc., 6.63%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $38,407,072
collateralized by $33,651,458
in U.S. Government Agencies,
7.125%-7.77%, 11/15/01-6/15/30;
with a value of $39,168,044 ............ 38,400,000
50,000,000 Bear Stearns & Companies, Inc., 6.705%
dated 10/31/00, maturing 11/1/00, to be
repurchased at $50,009,313 collateralized
by $67,286,643 in U.S. Government
Agencies, 0%-8.00%, 10/1/02-10/1/30
with a value of $52,739,697 ............ 50,000,000
175,000,000 CS First Boston, Inc., 6.675%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $175,032,448
collateralized by $228,046,269 in U.S.
Government Agencies, 6.25%-8.00%,
2/15/14-11/25/30 with a value
of $182,438,360 ........................ 175,000,000
295,000,000 Deutsche Bank Securities, Inc., 6.68%
dated 10/31/00, maturing 11/1/00,
to be repurchased at $295,054,739
collateralized by $818,443,676 in
U.S. Government Agencies, 0%-8.00%,
11/9/00-3/15/29; $27,714,612 in
U.S. Treasuries, 0%-6.875%,
4/5/01-5/15/17; with respective
values of $282,778,413 and $18,125,157 . 295,000,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $662,200,000 ) ............ 662,200,000
--------------------------------------------------------------------------------
Total Investments (total cost $1,206,358,087) - 101.2% ...... 1,206,358,087
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.2%) (14,715,437)
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 1,191,642,650
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
22 Janus Income Funds / October 31, 2000
<PAGE>
Janus | Tax-Exempt Money Market Fund
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
Municipal Securities - 99.6%
Alabama - 1.1%
Columbia Industrial Development Board
of Pollution Control Revenue
(Alabama Power Co. Project):
$ 200,000 Series A, Variable Rate, 4.60%, 6/1/22 . $ 200,000
2,200,000 Series B, Variable Rate, 4.60%, 5/1/22 . 2,200,000
2,400,000
Arizona - 2.8%
6,350,000 Tucson Industrial Development Authority
Multifamily Revenue
(Freedom Park Apartments Project)
Variable Rate, 4.85%, 12/1/07 .......... 6,350,000
California - 0.1%
Los Angeles Regional Airport
Improvement Corp. Lease Revenue
(American Airlines - L.A. International):
100,000 Series A, Variable Rate, 4.65%, 12/1/24 100,000
100,000 Series B, Variable Rate, 4.65%, 12/1/24 100,000
200,000
Colorado - 16.3%
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, 4.50%, 11/1/14 .......... 1,400,000
7,430,000 Centennial Downs Metropolitan District
Variable Rate, 4.45%, 12/1/28 .......... 7,430,000
Colorado Health Facilities Authority Revenue:
14,960,000 (National Benevolent Association)
Series D, Variable Rate, 4.35%, 3/1/25 . 14,960,000
845,000 (The Visiting Nurse Corp.), Variable Rate
4.70%, 7/1/22 .......................... 845,000
400,000 Colorado Housing and Finance Authority
Multifamily Housing Revenue
(Winridge Apartments Project)
Variable Rate, 4.30%, 2/15/28 .......... 400,000
2,800,000 Denver City and County Multifamily
Housing Revenue, (Ogden Residences
Project), Variable Rate, 4.70%, 12/1/09 2,800,000
Dove Valley Metropolitan District
Arapahoe County:
2,500,000 4.40%, 5/1/20 .......................... 2,500,000
1,000,000 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
37,030,000
Delaware - 1.3%
3,000,000 University of Delaware Revenue, 5.00%
3/15/03 ................................ 3,007,466
Florida - 4.4%
5,000,000 Gulf Breeze Healthcare Facilities Revenue
(Heritage Healthcare Project)
Variable Rate, 4.48%, 1/1/24 ........... 5,000,000
4,900,000 Palm Beach County Educational Facilities
Authority Revenue, (Atlantic College
Project), Variable Rate, 4.40%, 12/1/12 4,900,000
9,900,000
Georgia - 6.2%
$ 1,200,000 Bartow County (Sales Tax), 4.40%, 5/1/01 .. $ 1,200,386
1,000,000 Cobb County School District, 6.00%, 2/1/01 1,004,115
7,000,000 Fulton County Housing Authority
Multifamily Housing Revenue
(Hampton Hills Apartments Project)
Variable Rate, 4.40%, 6/1/23 ........... 7,000,000
5,000,000 South Georgia Hospital Authority Revenue
(Georgia Alliance Community Hospitals)
Series A, Variable Rate, 4.45%, 4/1/29 . 5,000,000
14,204,501
Illinois - 3.9%
5,400,000 Chicago Tax Increment, Series B, Variable
Rate, 4.45%, 12/1/14 ................... 5,400,000
1,000,000 Illinois Civic Center, 4.15%, 12/15/00 .... 1,000,000
2,400,000 Northlake Economic Development Revenue
(Dominick's Foods), Subseries B
Variable Rate, 4.65%, 1/1/02 ........... 2,400,000
8,800,000
Indiana - 3.6%
1,020,000 Indiana State Educational Facilities
Authority Revenue, (Franklin College)
Variable Rate, 4.40%, 10/1/19 .......... 1,020,000
2,138,500 Kankakee Valley Independent School
Building Corp., (Tax Anticipated
Warrants), 4.70%, 12/29/00 ............. 2,139,481
5,100,000 Marion Economic Development Revenue
(Indiana Wesleyan University Project)
Variable Rate, 4.35%, 6/1/30 ........... 5,100,000
8,259,481
Iowa - 4.6%
1,250,000 Buffalo Pollution Control Revenue
(LaFarge Corp. Project), Series B
Variable Rate, 4.60%, 10/1/10 .......... 1,250,000
2,100,000 Iowa Finance Authority Revenue
(Burlington Medical Center)
Variable Rate, 4.65%, 6/1/27 ........... 2,100,000
Iowa Higher Education Loan
Authority Revenue:
3,000,000 (Briar Cliff), Variable Rate, 4.50%, 6/1/19 3,000,000
1,500,000 (Grand View Project), Variable Rate
4.70%, 10/1/25 ......................... 1,500,000
600,000 (Palmer Chiropractic), Variable Rate
4.70%, 4/1/27 .......................... 600,000
2,000,000 Iowa School Corporations Warrant
Certificates, (Iowa School Cash
Anticipation Program), 5.50%, 6/22/01 .. 2,012,333
10,462,333
Kentucky - 0.9%
2,080,000 Louisville Multifamily Revenue
(Station House Square), Variable Rate
4.70%, 7/15/19 ......................... 2,080,000
Louisiana - 1.2%
900,000 Louisiana Public Facilities Authority
Multifamily Housing Revenue Refunding
(River View), Variable Rate, 4.70%, 7/1/07 900,000
1,800,000 Ouachita Parish Industrial Development
Revenue, (McRae's, Inc. Project)
Variable Rate, 4.85%, 7/1/04 ........... 1,800,000
2,700,000
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 23
<PAGE>
Janus | Tax-Exempt Money Market Fund
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
Michigan - 3.3%
$ 1,015,000 Clarkston Community Schools
5.50%, 5/1/01 .......................... $ 1,020,825
300,000 Farmington Hills Hospital Finance
Authority Hospital Revenue
(Botsford General Hospital)
Series B, Variable Rate, 4.65%, 2/15/16 300,000
6,300,000 Holland Economic Development Corp.
(Thrifty Holland, Inc.), Variable Rate
4.65%, 3/1/13 .......................... 6,300,000
7,620,825
Minnesota - 1.9%
1,000,000 Perham Independent School District
No. 549, (General Obligation Aid
Anticipation Certificates of Indebtedness)
4.55%, 9/28/01 ......................... 1,000,861
2,000,000 St. Louis Park Health Care Facilities Revenue
(Nicollet Medical Center Project)
Series A, 8.625%, 1/1/21 ............... 2,014,258
1,250,000 St. Paul Housing and Redevelopment
Authority Revenue, (Goodwill/Easter
Seals Project), Variable Rate, 4.40%, 8/1/25 1,250,000
4,265,119
Mississippi - 0.5%
Mississippi Board of Trustees of Institutions
of Higher Learning:
720,000 Series A, 5.00%, 10/15/01 .............. 723,966
390,000 Series B, 4.20%, 1/15/01+ .............. 390,000
1,113,966
Missouri - 2.5%
Missouri Health and Educational
Facilities Authority Revenue
(Washington University):
1,700,000 Series C, Variable Rate, 4.60%, 3/1/40 . 1,700,000
900,000 Series D, Variable Rate, 4.60%, 9/1/30 . 900,000
3,175,000 Missouri Health and Educational Facilities
Authority School District Advance
Funding, (Jasper County School District
Project), Series G, 5.00%, 10/1/01 ..... 3,192,348
5,792,348
Nebraska - 0.5%
1,205,000 Lancaster County, 4.00%, 11/15/00 ......... 1,205,088
Nevada - 1.1%
2,000,000 Clark County Economic Development
Revenue, (Lutheran Secondary School
Association Project), Variable Rate
4.50%, 2/1/30 .......................... 2,000,000
600,000 Reno Hospital Revenue, (St. Mary's Regional
Medical Center), Series B, Variable Rate
4.65%, 5/15/23 ......................... 600,000
2,600,000
New Hampshire - 1.3%
3,000,000 Nashua, Anticipation Notes
4.70%, 12/14/00 ........................ 3,000,337
New York - 0.7%
$ 1,500,000 Long Island Power Authority Electric
System Revenue, Series 6
Variable Rate, 4.55%, 5/1/33 ........... $ 1,500,000
Ohio - 0.4%
1,000,000 Clinton County Hospital Revenue
(Ohio Hospital Capital, Inc.)
Variable Rate, 4.45%, 6/1/28 ........... 1,000,000
Oklahoma - 0.4%
800,000 Oklahoma City Industrial and Cultural
Facilities Trust Revenue, (Oklahoma
Christian College), Variable Rate
4.65%, 7/1/15 .......................... 800,000
Oregon - 0.9%
2,160,000 Oregon Health, Housing, Educational and
Cultural Facilities Authority
(Quatama Crossing Housing Project)
Variable Rate, 4.35%, 1/1/31 ........... 2,160,000
Pennsylvania - 8.0%
5,000,000 Allegheny County Hospital Development
Authority Revenue, (South Hills Health
System), Variable Rate, 4.30%, 4/1/08 .. 5,000,000
Allegheny County Industrial Development
Authority Revenue:
1,900,000 (Longwood at Oakmont, Inc.)
Series C, Variable Rate, 4.60%, 7/1/27 . 1,900,000
4,000,000 (Zoological Society)
Series A, 4.80%, 6/1/19 ................ 4,000,000
1,600,000 Pennsylvania Higher Educational Facilities
Authority College and University
Revenues, (Carnegie - Mellon University)
5.00%, 11/1/00 ......................... 1,600,000
Pennsylvania Higher Educational Facilities
Authority Revenue:
2,700,000 (Association of Independent Colleges
and Universities), Series D-1, 4.35%
5/1/29 ................................. 2,700,000
1,700,000 (Council of Independent Colleges and
Universities Financing Program)
Series B-8, 4.40%, 11/1/07 ............. 1,700,000
1,300,000 Venango Industrial Development Authority
Pollution Control Revenue
(Pennzoil Co. Project), Variable Rate
4.65%, 12/1/12 ......................... 1,300,000
18,200,000
Rhode Island - 3.4%
7,800,000 Rhode Island Health and Educational
Building Corp. Educational Institution
Revenue, (St. George's School Issue)
Variable Rate, 4.40%, 9/1/30 ........... 7,800,000
South Carolina - 0.4%
900,000 Columbia Waterworks and Sewer System
Revenue, 7.10%, 2/1/12 ................. 924,059
See Notes to Schedules of Investments.
24 Janus Income Funds / October 31, 2000
<PAGE>
SCHEDULE OF INVESTMENTS
Principal Amount Market Value
--------------------------------------------------------------------------------
Tennessee - 3.1%
$ 5,000,000 Memphis Health, Educational and Housing
Facilities Board of Revenue
(Not-For-Profit Multifamily Program)
Variable Rate, 4.48%, 8/1/32 ........... $ 5,000,000
2,000,000 Signal Mountain Health, Educational and
Housing Facilities Board of Revenue
(Alexian Village), Variable Rate
4.40%, 1/1/28 .......................... 2,000,000
7,000,000
Texas - 10.3%
8,105,000 Bexar County Housing Finance Corp.
Multifamily Housing Revenue
(Mitchell Village Apartments Project)
Series A, Variable Rate, 4.30%, 2/15/30 8,105,000
935,000 Birdville Independent School District
4.25%, 2/15/01 ......................... 934,992
Grapevine Industrial Development Corp.
Revenue, (American Airlines):
400,000 Series A-2, Variable Rate, 4.65%, 12/1/24 400,000
100,000 Series A-4, Variable Rate, 4.65%, 12/1/24 100,000
300,000 Series B-3, Variable Rate, 4.65%, 12/1/24 300,000
500,000 Series B-4, Variable Rate, 4.65%, 12/1/24 500,000
Lone Star Airport Improvement Authority:
100,000 Series A-1, Variable Rate, 4.65%, 12/1/14 100,000
100,000 Series A-3, Variable Rate, 4.65%, 12/1/14 100,000
400,000 Series A-4, Variable Rate, 4.65%, 12/1/14 400,000
800,000 Series B-2, Variable Rate, 4.65%, 12/1/14 800,000
900,000 Series B-5, Variable Rate, 4.65%, 12/1/14 900,000
7,700,000 North Central Health Facilities Development
Corp. Revenue, (Presbyterian Medical
Center), Series C, Variable Rate
4.65%, 12/1/15 ......................... 7,700,000
950,000 San Antonio Electric and Gas, 5.25%, 2/1/01 952,303
2,090,000 Texas Department of Housing and
Community Affairs Multifamily Revenue
(High Point III), Series A, Variable Rate
4.40%, 2/1/23 .......................... 2,090,000
23,382,295
Utah - 1.3%
3,000,000 Intermountain Power Agency Power
Supply Revenue, Series B, zero coupon
7/1/01 ................................. 2,909,733
Virginia - 4.8%
Suffolk Redevelopment and Housing
Authority Multifamily Housing Revenue:
5,229,000 (Rental-Windsor Fieldstone)
Variable Rate, 4.85%, 12/1/07 .......... 5,229,000
5,757,000 (Rental-Windsor Potomac)
Variable Rate, 4.85%, 12/1/07 .......... 5,757,000
10,986,000
Washington - 4.7%
$ 600,000 Clark County School District No. 037
7.125%, 12/1/00 ........................ $ 601,343
Washington State Housing Finance
Commission Nonprofit Housing Revenue:
1,500,000 (Emerald Heights Project), Variable Rate
4.60%, 1/1/21 .......................... 1,500,000
3,155,000 (Nikkei Concerns Project), Variable Rate
4.35%, 10/1/19 ......................... 3,155,000
300,000 (YMCA Snohomish County Project)
Variable Rate, 4.75%, 6/1/27 ........... 300,000
5,000,000 Washington State, Series B, 6.75%, 6/1/01 . 5,065,693
10,622,036
Wisconsin - 3.7%
3,000,000 Milwaukee Redevelopment Authority
Revenue, (Wisconsin Humane Society
Income Project), Variable Rate
4.35%, 3/1/19 .......................... 3,000,000
Wisconsin Health and Educational Facilities
Authority Revenue:
2,165,000 (Monroe Joint Venture, Inc.), Variable Rate
4.40%, 1/1/30 .......................... 2,165,000
1,000,000 (Riverview Hospital Association)
Series B, Variable Rate, 4.70%, 10/1/26 1,000,000
2,100,000 (Wausau Hospitals, Inc.), Series B
6.70%, 8/15/20 ......................... 2,155,560
8,320,560
--------------------------------------------------------------------------------
Total Investments (total cost $226,596,147) - 99.6% ......... 226,596,147
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.4% 968,881
--------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 227,565,028
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Income Funds / October 31, 2000 25
<PAGE>
Statements of | Assets & Liabilities - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Janus Federal Short-Term
As of October 31, 2000 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 $1,075,858 $ 319,628 $ 78,985 $ 143,914
---------------------------------------------------------------------------------------------------------------------
Investments at value $1,063,533 $ 309,345 $ 78,006 $ 143,015
---------------------------------------------------------------------------------------------------------------------
Cash 79 443 743 230
Receivables:
Investments sold 9,462 15,790 -- 1,735
Fund shares sold 3,223 1,153 90 793
Interest 17,616 5,418 1,489 2,358
Other assets 3 2 -- --
---------------------------------------------------------------------------------------------------------------------
Total Assets 1,093,916 332,151 80,328 148,131
---------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 10,202 30,804 -- 6,617
Fund shares repurchased 1,806 812 139 1,473
Dividends 556 303 53 28
Advisory fee 530 190 26 32
Transfer agent fee 191 57 15 32
Accrued expenses 208 61 39 50
---------------------------------------------------------------------------------------------------------------------
Total Liabilities 13,493 32,227 272 8,232
---------------------------------------------------------------------------------------------------------------------
Net Assets $1,080,423 $ 299,924 $ 80,056 $ 139,899
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 120,231 30,486 11,879 48,995
---------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 8.99 $ 9.84 $ 6.74 $ 2.86
---------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
26 Janus Income Funds / October 31, 2000
<PAGE>
Statements of | Operations - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Janus Federal Short-Term
For the fiscal year ended October 31, 2000 Flexible Income High-Yield Tax-Exempt Bond
(all numbers in thousands) Fund Fund Fund Fund
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 89,370 $ 26,808 $ 4,465 $ 8,233
Dividends 2,761 146 -- --
-------------------------------------------------------------------------------------------------------------
Total Investment Income 92,131 26,954 4,465 8,233
-------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 6,559 2,141 467 837
Transfer agent fees and expenses 2,197 593 172 302
Registration fees 168 110 74 95
Postage and mailing expenses 54 20 7 12
Custodian fees 103 53 31 36
Printing expenses 88 34 17 26
Audit fees 24 17 8 7
Trustees' fees and expenses 2 1 1 1
Other expenses 35 18 16 15
-------------------------------------------------------------------------------------------------------------
Total Expenses 9,230 2,987 793 1,331
Expense and Fee Offsets (237) (94) (15) (18)
Net Expenses 8,993 2,893 778 1,313
Less: Excess Expense Reimbursement -- (35) (272) (476)
Net Expenses after Expense Reimbursement 8,993 2,858 506 837
Net Investment Income 83,138 24,096 3,959 7,396
-------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions (61,182) (6,557) (3,668) 109
Net realized gain/(loss) from foreign currency transactions 371 (434) -- --
Net realized gain from futures and/or options contracts 1,579 -- (294) --
Change in net unrealized appreciation or depreciation
of investments and foreign currency translations 13,594 207 4,778 744
-------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments (45,638) (6,784) 816 853
Net Increase in Net Assets Resulting from Operations $ 37,500 $ 17,312 $ 4,775 $ 8,249
-------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / October 31, 2000 27
<PAGE>
Statements of | Changes in Net Assets - Bond Funds
<TABLE>
<CAPTION>
Janus Janus
Flexible Income High-Yield
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 $ 83,138 $ 82,789 $ 24,096 $ 25,150
Net realized gain/(loss) from investment and
foreign currency transactions (59,232) (25,147) (6,991) (16,857)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 13,594 (40,980) 207 11,471
-------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting
from Operations 37,500 16,662 17,312 19,764
-------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (81,041) (82,789) (23,852) (25,150)
Net realized gain from investment transactions* -- -- -- --
Distributions (in excess of realized gains)* -- (12,257) -- (128)
Tax return of capital (674) -- (192) --
-------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (81,715) (95,046) (24,044) (25,278)
-------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 437,872 825,274 305,304 365,566
Reinvested dividends and distributions 70,966 82,496 19,220 20,506
Shares repurchased (663,598) (653,579) (282,344) (384,299)
-------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (154,760) 254,191 42,180 1,773
-------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (198,975) 175,807 35,448 (3,741)
Net Assets:
Beginning of period 1,279,398 1,103,591 264,476 268,217
-------------------------------------------------------------------------------------------------------------------
End of period $ 1,080,423 $ 1,279,398 $ 299,924 $ 264,476
-------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 1,174,010 $ 1,329,438 $ 335,017 $ 293,059
Accumulated net investment income/(loss)* (113) 845 (41) (2)
Accumulated net realized gain/(loss)
from investments* (81,143) (24,960) (24,768) (18,090)
Unrealized appreciation/(depreciation) of
investments and foreign currency translations (12,331) (25,925) (10,284) (10,491)
-------------------------------------------------------------------------------------------------------------------
$ 1,080,423 $ 1,279,398 $ 299,924 $ 264,476
-------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 47,632 84,300 29,797 34,587
Reinvested distributions 7,756 8,502 1,887 1,952
-------------------------------------------------------------------------------------------------------------------
Total 55,388 92,802 31,684 36,539
-------------------------------------------------------------------------------------------------------------------
Shares repurchased (72,002) (67,277) (27,572) (36,321)
Net Increase/(Decrease) in Fund Shares (16,614) 25,525 4,112 218
Shares Outstanding, Beginning of Period 136,845 111,320 26,374 26,156
-------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 120,231 136,845 30,486 26,374
-------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities
(excluding short-term securities):
Purchases of securities $ 1,066,320 $ 1,346,096 $ 669,936 $ 805,894
Proceeds from sales of securities 1,387,005 1,024,247 684,537 823,825
Purchases of long-term U.S. government obligations 665,758 223,265 -- 35,637
Proceeds from sales of long-term U.S.
government obligations 536,521 354,717 -- 41,215
<CAPTION>
Janus Janus
Federal Tax-Exempt Short-Term Bond
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 $ 3,959 $ 4,901 $ 7,396 $ 7,599
Net realized gain/(loss) from investment and
foreign currency transactions (3,962) (1,455) 109 (1,384)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 4,778 (7,923) 744 (2,037)
-------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting
from Operations 4,775 (4,477) 8,249 4,178
-------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (3,959) (4,901) (7,396) (7,599)
Net realized gain from investment transactions* -- -- -- --
Distributions (in excess of realized gains)* -- -- -- --
Tax return of capital -- -- -- --
-------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (3,959) (4,901) (7,396) (7,599)
-------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 48,754 89,632 184,230 248,335
Reinvested dividends and distributions 3,151 4,034 6,790 6,859
Shares repurchased (68,864) (79,714) (190,982) (253,671)
-------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (16,959) 13,952 38 1,523
-------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (16,143) 4,574 891 (1,898)
Net Assets:
Beginning of period 96,199 91,625 139,008 140,906
-------------------------------------------------------------------------------------------------------------------
End of period $ 80,056 $ 96,199 $ 139,899 $ 139,008
-------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 86,958 $ 103,917 $ 144,500 $ 144,462
Accumulated net investment income/(loss)* -- -- -- --
Accumulated net realized gain/(loss)
from investments* (5,923) (1,961) (3,702) (3,811)
Unrealized appreciation/(depreciation) of
investments and foreign currency translations (979) (5,757) (899) (1,643)
-------------------------------------------------------------------------------------------------------------------
$ 80,056 $ 96,199 $ 139,899 $ 139,008
-------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 7,307 12,550 65,043 86,489
Reinvested distributions 473 570 2,397 2,392
-------------------------------------------------------------------------------------------------------------------
Total 7,780 13,120 67,440 88,881
-------------------------------------------------------------------------------------------------------------------
Shares repurchased (10,354) (11,262) (67,480) (88,343)
Net Increase/(Decrease) in Fund Shares (2,574) 1,858 (40) 538
Shares Outstanding, Beginning of Period 14,453 12,595 49,035 48,497
-------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 11,879 14,453 48,995 49,035
-------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities
(excluding short-term securities):
Purchases of securities $ 70,264 $ 50,205 $ 138,040 $ 74,926
Proceeds from sales of securities 91,196 38,168 158,493 40,836
Purchases of long-term U.S. government obligations 13,359 21,460 27,763 57,745
Proceeds from sales of long-term U.S.
government obligations 13,313 21,100 12,234 92,054
</TABLE>
*See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
28 Janus Income Funds / October 31, 2000
<PAGE>
Financial | Highlights - Bond Funds
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Flexible Income Fund
each fiscal year ended October 31 2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.35 $ 9.91 $ 10.00 $ 9.65 $ 9.55
-----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .65 .63 .67 .69 .73
Net gains or (losses) on securities
(both realized and unrealized) (.35) (.45) .12 .37 .10
-----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .30 .18 .79 1.06 .83
-----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.66)(2) (.63) (.67) (.69) (.73)
Distributions (from capital gains) -- -- (.21) (.02) --
Distributions (in excess of capital gains) -- (.11) -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.66) (.74) (.88) (.71) (.73)
-----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.99 $ 9.35 $ 9.91 $ 10.00 $ 9.65
-----------------------------------------------------------------------------------------------------------------------------------
Total Return 3.31% 1.75% 8.14% 11.48% 9.01%
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,080,423 $ 1,279,398 $ 1,103,591 $ 727,101 $ 603,655
Average Net Assets for the Period (in thousands) $ 1,137,973 $ 1,266,098 $ 892,853 $ 656,422 $ 603,694
Ratio of Gross Expenses to Average Net Assets(1) 0.81% 0.82% 0.84% 0.87% 0.88%
Ratio of Net Expenses to Average Net Assets(1) 0.79% 0.81% 0.82% 0.86% 0.87%
Ratio of Net Investment Income to Average Net Assets 7.31% 6.54% 6.68% 7.10% 7.60%
Portfolio Turnover Rate 173% 119% 148% 207% 214%
<CAPTION>
For a share outstanding throughout Janus High-Yield Fund
each fiscal year or period ended October 31 2000 1999 1998 1997 1996(3)
-----------------------------------------------------------------------------------------------------------------------------------
<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 .86 .89 .90 .97 .80
Net gains or (losses) on securities
(both realized and unrealized) (.19) (.22) (1.02) .82 1.12
-----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .67 .67 (.12) 1.79 1.92
-----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.86)(2) (.89) (.90) (.97) (.80)
Distributions (from capital gains) -- -- (.56) (.11) --
-----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.86) (.89) (1.46) (1.08) (.80)
-----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.84 $ 10.03 $ 10.25 $ 11.83 $ 11.12
-----------------------------------------------------------------------------------------------------------------------------------
Total Return* 6.72% 6.34% (1.45%) 16.94% 19.71%
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 299,924 $ 264,476 $ 268,217 $ 301,422 $ 210,933
Average Net Assets for the Period (in thousands) $ 285,821 $ 296,586 $ 380,942 $ 266,213 $ 88,126
Ratio of Gross Expenses to Average Net Assets**(1) 1.03%(4) 1.02%(4) 0.99%(4) 1.03%(4) 1.01%(4)
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** 8.43% 8.48% 7.85% 8.45% 9.00%
Portfolio Turnover Rate** 295% 310% 336% 404% 324%
</TABLE>
(1) See "Explanation of the Charts and Tables."
(2) Dividends (from net investment income) includes return of capital, less
than $0.01 per share.
(3) Fiscal period December 29, 1995 (inception) to October 31, 1996.
(4) The ratio was 1.05% 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 / October 31, 2000 29
<PAGE>
Financial | Highlights - Bond Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Federal Tax-Exempt Fund
each fiscal year ended October 31 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 6.66 $ 7.27 $ 7.09 $ 6.92 $ 6.88
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .34 .34 .34 .35 .36
Net gains or (losses) on securities
(both realized and unrealized) .08 (.61) .18 .17 .04
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .42 (.27) .52 .52 .40
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.34) (.34) (.34) (.35) (.36)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.34) (.34) (.34) (.35) (.36)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 6.74 $ 6.66 $ 7.27 $ 7.09 $ 6.92
------------------------------------------------------------------------------------------------------------------------------------
Total Return 6.47% (4.04%) 7.65% 7.72% 5.94%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 80,056 $ 96,199 $ 91,625 $ 62,055 $ 44,858
Average Net Assets for the Period (in thousands) $ 77,794 $ 102,366 $ 74,133 $ 53,574 $ 36,312
Ratio of Gross Expenses to Average Net Assets(1) 0.67%(2) 0.66%(2) 0.67%(2) 0.66%(2) 0.68%(2)
Ratio of Net Expenses to Average Net Assets(1) 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to Average Net Assets 5.09% 4.79% 4.76% 5.00% 5.18%
Portfolio Turnover Rate 115% 62% 227% 304% 225%
<CAPTION>
For a share outstanding throughout Janus Short-Term Bond Fund
each fiscal year ended October 31 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 2.83 $ 2.91 $ 2.90 $ 2.86 $ 2.84
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .16 .16 .17 .17 .16
Net gains or (losses) on securities
(both realized and unrealized) .03 (.08) .01 .04 .02
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .19 .08 .18 .21 .18
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.16) (.16) (.17) (.17) (.16)
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.16) (.16) (.17) (.17) (.16)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 2.86 $ 2.83 $ 2.91 $ 2.90 $ 2.86
------------------------------------------------------------------------------------------------------------------------------------
Total Return 6.65% 2.82% 6.49% 7.70% 6.49%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 139,899 $ 139,008 $ 140,906 $ 57,908 $ 40,784
Average Net Assets for the Period (in thousands) $ 128,788 $ 135,882 $ 89,556 $ 48,421 $ 42,203
Ratio of Gross Expenses to Average Net Assets(1) 0.66%(3) 0.66%(3) 0.67%(3) 0.67%(3) 0.67%(3)
Ratio of Net Expenses to Average Net Assets(1) 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income to Average Net Assets 5.74% 5.59% 5.91% 6.03% 5.57%
Portfolio Turnover Rate 134% 101% 101% 133% 486%
</TABLE>
(1) See "Explanation of Charts and Tables."
(2) The ratio was 1.02% in 2000, 1.01% in 1999, 0.99% in 1998, 1.11% in 1997
and 1.14% in 1996 before waiver of certain fees incurred by the Fund.
(3) The ratio was 1.03% in 2000, 1.03% in 1999, 1.06% in 1998, 1.20% in 1997
and 1.23% in 1996 before waiver of certain fees incurred by the Fund.
See Notes to Financial Statements.
30 Janus Income Funds / October 31, 2000
<PAGE>
Statements of | Assets & Liabilities - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Government Tax-Exempt
As of October 31, 2000 Money Market Money Market Money Market
(all numbers in thousands except net asset value per share) Fund Fund Fund
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments at amortized cost $10,636,404 $ 1,206,358 $ 226,596
Cash 24 264 161
Receivables:
Investments sold 62,178 -- --
Fund shares sold 11,827 386 1,414
Interest 88,825 1,073 1,617
-----------------------------------------------------------------------------------------------------------
Total Assets 10,799,258 1,208,081 229,788
-----------------------------------------------------------------------------------------------------------
Liabilities:
Payables
Investments purchased 144,212 9,990 1,700
Fund shares repurchased 21,174 2,535 385
Dividends and distributions 27,106 3,619 39
Advisory fees 969 96 19
Administrative fees 1,984 176 78
Service fees 23 15 --
Audit fees 12 5 2
Trustees' fees and expenses 54 2 --
-----------------------------------------------------------------------------------------------------------
Total Liabilities 195,534 16,438 2,223
-----------------------------------------------------------------------------------------------------------
Net Assets $10,603,724 $ 1,191,643 $ 227,565
Net Assets - Investor Shares $ 3,165,642 $ 330,396 $ 171,383
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 3,165,642 330,396 171,383
-----------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------------------------------
Net Assets - Institutional Shares $ 7,308,448 $ 782,370 $ 56,172
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 7,308,448 782,370 56,172
-----------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------------------------------
Net Assets - Service Shares $ 129,634 $ 78,877 $ 10
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 129,634 78,877 10
-----------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / October 31, 2000 31
<PAGE>
Statements of | Operations - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus
Janus Government Tax-Exempt
For the fiscal year ended October 31, 2000 Money Market Money Market Money Market
(all numbers in thousands) Fund Fund Fund
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest $627,821 $ 71,261 $ 10,051
-----------------------------------------------------------------------------------------
627,821 71,261 10,051
-----------------------------------------------------------------------------------------
Expenses:
Advisory fee for investor shares 2,982 341 169
Advisory fee for institutional shares 6,804 741 73
Advisory fee for service shares 60 64 1
Administrative fee for investor shares 14,911 1,704 842
Administrative fee for institutional shares 4,145 371 43
Administrative fee for service shares 39 32 --
Service fee for service shares 149 160 2
Audit fees 15 9 8
Trustees' fees and expenses 73 11 6
-----------------------------------------------------------------------------------------
Total Expenses 29,178 3,433 1,144
Net Investment Income 598,643 67,828 8,907
-----------------------------------------------------------------------------------------
Net Realized Gain/(Loss) on Investments:
Net realized gain from investment transactions 1,007 25 --
-----------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $599,650 $ 67,853 $ 8,907
-----------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
32 Janus Income Funds / October 31, 2000
<PAGE>
Statements of | Changes in Net Assets - Money Market Funds
<TABLE>
<CAPTION>
Janus Janus Government
Money Market Money Market
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 $ 598,643 $ 359,404 $ 67,828 $ 50,548
Net realized gain from investment transactions 1,007 164 25 28
----------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 599,650 359,568 67,853 50,576
----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares (171,994) (83,421) (19,104) (10,389)
Institutional Shares (423,069) (274,477) (44,987) (38,030)
Service Shares (3,580) (1,506) (3,737) (2,129)
Net realized gain from investment transactions:
Investor Shares (312) (35) (6) (5)
Institutional Shares (689) (128) (18) (21)
Service Shares (6) (1) (1) (2)
----------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (599,650) (359,568) (67,853) (50,576)
----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold:
Investor Shares 12,896,114 8,897,000 701,509 567,007
Institutional Shares 123,257,128 132,210,692 7,813,075 5,587,450
Service Shares 952,434 303,125 343,597 86,689
Reinvested dividends and distributions:
Investor Shares 163,243 78,472 18,282 9,920
Institutional Shares 116,986 60,951 8,705 6,278
Service Shares 3,490 1,495 17 28
Shares repurchased:
Investor Shares (12,202,824) (8,158,386) (749,999) (429,562)
Institutional Shares (120,564,616) (132,746,602) (7,800,898) (5,652,910)
Service Shares (855,038) (318,392) (316,080) (38,144)
----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 3,766,917 328,355 18,208 136,756
----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 3,766,917 328,355 18,208 136,756
Net Assets:
Beginning of Period 6,836,807 6,508,452 1,173,435 1,036,679
----------------------------------------------------------------------------------------------------------------------
End of Period $ 10,603,724 $ 6,836,807 $ 1,191,643 $ 1,173,435
----------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 10,603,724 $ 6,836,807 $ 1,191,643 $ 1,173,435
Transactions in Fund Shares - Investor Shares:
Shares sold 12,896,114 8,897,000 701,509 567,007
Reinvested dividends and distributions 163,243 78,472 18,282 9,920
----------------------------------------------------------------------------------------------------------------------
Total 13,059,357 8,975,472 719,791 576,927
----------------------------------------------------------------------------------------------------------------------
Shares repurchased (12,202,824) (8,158,386) (749,999) (429,562)
Net Increase/(Decrease) in Fund Shares 856,533 817,086 (30,208) 147,365
Shares Outstanding, Beginning of Period 2,309,109 1,492,023 360,604 213,239
----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 3,165,642 2,309,109 330,396 360,604
----------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares - Institutional Shares:
Shares sold 123,257,128 132,210,692 7,813,075 5,587,450
Reinvested dividends and distributions 116,986 60,951 8,705 6,278
----------------------------------------------------------------------------------------------------------------------
Total 123,374,114 132,271,643 7,821,780 5,593,728
----------------------------------------------------------------------------------------------------------------------
Shares repurchased (120,564,616) (132,746,602) (7,800,898) (5,652,910)
Net Increase/(Decrease) in Fund Shares 2,809,498 (474,959) 20,882 (59,182)
Shares Outstanding, Beginning of Period 4,498,950 4,973,909 761,488 820,670
----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 7,308,448 4,498,950 782,370 761,488
----------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares - Service Shares:
Shares sold 952,434 303,125 343,597 86,689
Reinvested dividends and distributions 3,490 1,495 17 28
----------------------------------------------------------------------------------------------------------------------
Total 955,924 304,620 343,614 86,717
----------------------------------------------------------------------------------------------------------------------
Shares repurchased (855,038) (318,392) (316,080) (38,144)
Net Increase/(Decrease) in Fund Shares 100,886 (13,772) 27,534 48,573
Shares Outstanding, Beginning of Period 28,748 42,520 51,343 2,770
----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 129,634 28,748 78,877 51,343
----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus Tax-Exempt
Money Market
For the fiscal year ended October 31 Fund
(all numbers in thousands) 2000 1999
-------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income $ 8,907 $ 6,562
Net realized gain from investment transactions -- 2
-------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 8,907 6,564
-------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income:
Investor Shares (5,948) (3,446)
Institutional Shares (2,932) (2,989)
Service Shares (27) (127)
Net realized gain from investment transactions:
Investor Shares -- (2)
Institutional Shares -- --
Service Shares -- --
-------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (8,907) (6,564)
-------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold:
Investor Shares 461,498 309,165
Institutional Shares 316,487 547,727
Service Shares 734 1,260
Reinvested dividends and distributions:
Investor Shares 5,729 3,301
Institutional Shares 2,788 2,803
Service Shares 26 125
Shares repurchased:
Investor Shares (442,500) (270,821)
Institutional Shares (401,967) (452,985)
Service Shares (1,792) (18,039)
-------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (58,997) 122,536
-------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (58,997) 122,536
Net Assets:
Beginning of Period 286,562 164,026
-------------------------------------------------------------------------------------
End of Period $ 227,565 $ 286,562
-------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus) $ 227,565 $ 286,562
Transactions in Fund Shares - Investor Shares:
Shares sold 461,498 309,165
Reinvested dividends and distributions 5,729 3,301
-------------------------------------------------------------------------------------
Total 467,227 312,466
-------------------------------------------------------------------------------------
Shares repurchased (442,500) (270,821)
Net Increase/(Decrease) in Fund Shares 24,727 41,645
Shares Outstanding, Beginning of Period 146,656 105,011
-------------------------------------------------------------------------------------
Shares Outstanding, End of Period 171,383 146,656
-------------------------------------------------------------------------------------
Transactions in Fund Shares - Institutional Shares:
Shares sold 316,487 547,727
Reinvested dividends and distributions 2,788 2,803
-------------------------------------------------------------------------------------
Total 319,275 550,530
-------------------------------------------------------------------------------------
Shares repurchased (401,967) (452,985)
Net Increase/(Decrease) in Fund Shares (82,692) 97,545
Shares Outstanding, Beginning of Period 138,864 41,319
-------------------------------------------------------------------------------------
Shares Outstanding, End of Period 56,172 138,864
-------------------------------------------------------------------------------------
Transactions in Fund Shares - Service Shares:
Shares sold 734 1,260
Reinvested dividends and distributions 26 125
-------------------------------------------------------------------------------------
Total 760 1,385
-------------------------------------------------------------------------------------
Shares repurchased (1,792) (18,039)
Net Increase/(Decrease) in Fund Shares (1,032) (16,654)
Shares Outstanding, Beginning of Period 1,042 17,696
-------------------------------------------------------------------------------------
Shares Outstanding, End of Period 10 1,042
-------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
Janus Income Funds / October 31, 2000 33
<PAGE>
Financial | Highlights - Money Market Funds
<TABLE>
<CAPTION>
For a share outstanding throughout
each fiscal year or period ended October 31 Janus Money Market Fund
Investor Shares 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .06 .05 .05 .05 .05
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .05 .05 .05 .05
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.06) (.05) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.06) (.05) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return 5.88% 4.69% 5.25% 5.23% 5.13%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 3,165,642 $ 2,309,109 $ 1,492,023 $ 1,032,647 $ 773,887
Average Net Assets for the Period (in thousands) $ 2,982,106 $ 1,808,653 $ 1,123,991 $ 883,052 $ 676,334
Ratio of Expenses to Average Net Assets(1) 0.60%(2) 0.60%(2) 0.60%(2) 0.60%(2) 0.60%(2)
Ratio of Net Investment Income to Average Net Assets(1) 5.77% 4.61% 5.13% 5.09% 5.01%
<CAPTION>
For a share outstanding throughout
each fiscal year or period ended October 31 Janus Government Money Market Fund
Investor Shares 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .06 .04 .05 .05 .05
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .04 .05 .05 .05
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.06) (.04) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.06) (.04) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return 5.76% 4.56% 5.12% 5.11% 5.03%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 330,396 $ 360,604 $ 213,239 $ 132,133 $ 117,408
Average Net Assets for the Period (in thousands) $ 340,813 $ 230,784 $ 150,525 $ 112,693 $ 112,059
Ratio of Expenses to Average Net Assets(1) 0.60%(2) 0.60%(2) 0.60%(2) 0.60%(2) 0.60%(2)
Ratio of Net Investment Income to Average Net Assets(1) 5.61% 4.50% 5.01% 5.42% 4.91%
</TABLE>
(1) See "Explanation of Charts and Tables."
(2) The ratio was 0.70% before waiver of certain fees incurred by the Fund.
See Notes to Financial Statements.
34 Janus Income Funds / October 31, 2000
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding throughout
each fiscal year or period ended October 31 Janus Tax-Exempt Money Market Fund
Investor Shares 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .04 .03 .03 .03 .03
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .04 .03 .03 .03 .03
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.04) (.03) (.03) (.03) (.03)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.04) (.03) (.03) (.03) (.03)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return 3.58% 2.83% 3.23% 3.20% 3.27%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 171,383 $ 146,656 $ 105,011 $ 81,268 $ 74,638
Average Net Assets for the Period (in thousands) $ 168,435 $ 122,946 $ 91,058 $ 75,929 $ 68,695
Ratio of Expenses to Average Net Assets(1) 0.60%(2) 0.60%(2) 0.60%(2) 0.60%(2) 0.60%(2)
Ratio of Net Investment Income to Average Net Assets(1) 3.53% 2.80% 3.16% 3.14% 3.22%
<CAPTION>
For a share outstanding throughout
each fiscal year or period ended October 31 Janus Money Market Fund
Institutional Shares 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from Investment Operations:
Net investment income .06 .05 .06 .06 .05
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .05 .06 .06 .05
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.06) (.05) (.06) (.06) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.06) (.05) (.06) (.06) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return 6.35% 5.16% 5.72% 5.71% 5.61%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 7,308,448 $ 4,498,950 $ 4,973,909 $ 2,770,961 $ 1,705,610
Average Net Assets for the Period (in thousands) $ 6,804,495 $ 5,445,434 $ 3,620,872 $ 2,545,294 $ 874,431
Ratio of Expenses to Average Net Assets(1) 0.16%(3) 0.15%(3) 0.15%(3) 0.15%(3) 0.15%(3)
Ratio of Net Investment Income to Average Net Assets(1) 6.22% 5.04% 5.58% 5.54% 5.41%
</TABLE>
(1) See "Explanation of Charts and Tables."
(2) The ratio was 0.70% before waiver of certain fees incurred by the Fund.
(3) The ratio was 0.35% before waiver of certain fees incurred by the Fund.
See Notes to Financial Statements.
Janus Income Funds / October 31, 2000 35
<PAGE>
Financial | Highlights - Money Market Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout
each fiscal year or period ended October 31 Janus Government Money Market Fund
Institutional Shares 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .06 .05 .05 .05 .05
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .05 .05 .05 .05
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.06) (.05) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.06) (.05) (.05) (.05) (.05)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return 6.24% 5.03% 5.59% 5.58% 5.50%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 782,370 $ 761,488 $ 820,670 $ 35,776 $ 59,490
Average Net Assets for the Period (in thousands) $ 741,708 $ 770,224 $ 321,174 $ 56,801 $ 53,398
Ratio of Expenses to Average Net Assets(1) 0.15%(2) 0.15%(2) 0.15%(2) 0.15%(2) 0.15%(2)
Ratio of Net Investment Income to Average Net Assets(1) 6.07% 4.94% 5.42% 6.04% 5.34%
<CAPTION>
For a share outstanding throughout
each fiscal year or period ended October 31 Janus Tax-Exempt Money Market Fund
Institutional Shares 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income .04 .03 .04 .04 .04
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .04 .03 .04 .04 .04
------------------------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.04) (.03) (.04) (.04) (.04)
------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.04) (.03) (.04) (.04) (.04)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
Total Return 4.03% 3.29% 3.67% 3.67% 3.74%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 56,172 $ 138,864 $ 41,319 $ 3,560 $ 1,947
Average Net Assets for the Period (in thousands) $ 73,351 $ 91,837 $ 18,859 $ 3,466 $ 1,754
Ratio of Expenses to Average Net Assets(1) 0.16%(2) 0.15%(2) 0.15%(2) 0.15%(2) 0.15%(2)
Ratio of Net Investment Income to Average Net Assets(1) 4.00% 3.25% 3.60% 3.94% 3.82%
</TABLE>
(1) See "Explanation of Charts and Tables."
(2) The ratio was 0.35% before waiver of certain fees incurred by the Fund.
See Notes to Financial Statements.
36 Janus Income Funds / October 31, 2000
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding throughout
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 .06 .05 .05 .05
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .05 .05 .05
---------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.06) (.05) (.05) (.05)
---------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.06) (.05) (.05) (.05)
---------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return* 6.08% 4.89% 5.45% 5.14%
---------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 129,634 $ 28,748 $ 42,520 $ 10,341
Average Net Assets for the Period (in thousands) $ 59,503 $ 31,250 $ 29,322 $ 913
Ratio of Expenses to Average Net Assets**(2) 0.42%(3) 0.40%(3) 0.40%(3) 0.40%(3)
Ratio of Net Investment Income to Average Net Assets**(2) 6.02% 4.82% 5.30% 5.02%
<CAPTION>
For a share outstanding throughout
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 .06 .05 .05 .05
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .06 .05 .05 .05
---------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.06) (.05) (.05) (.05)
---------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.06) (.05) (.05) (.05)
---------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return* 5.97% 4.77% 5.33% 5.01%
---------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 78,877 $ 51,343 $ 2,770 $ 628
Average Net Assets for the Period (in thousands) $ 63,802 $ 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) 5.86% 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 0.60% before waiver of certain fees incurred by the Fund.
See Notes to Financial Statements.
Janus Income Funds / October 31, 2000 37
<PAGE>
Financial | Highlights - Money Market Funds (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout
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 .04 .03 .03 .03
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .04 .03 .03 .03
---------------------------------------------------------------------------------------------------------------------
Less Dividends and Distributions:
Dividends (from net investment income) (.04) (.03) (.03) (.03)
---------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (.04) (.03) (.03) (.03)
---------------------------------------------------------------------------------------------------------------------
Net Asset Value at End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return* 3.81% 3.06% 3.44% 3.22%
---------------------------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $ 10 $ 1,042 $ 17,696 $ 10
Average Net Assets for the Period (in thousands) $ 737 $ 4,090 $ 3,215 $ 10
Ratio of Expenses to Average Net Assets**(2) 0.41%(3) 0.40%(3) 0.40%(3) 0.40%(3)
Ratio of Net Investment Income to Average Net Assets**(2) 3.67% 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 0.60% before waiver of certain fees incurred by the Fund.
See Notes to Financial Statements.
38 Janus Income Funds / October 31, 2000
<PAGE>
Notes to | Schedules of Investments
GBP British Pounds
* Non-income-producing security
+ Securities exempt from the registration requirements of the Securities Act
of 1933 and may be deemed to be restricted for resale.
(OMEGA) Step-up bonds are obligations which increase the interest payment rate
at a specified point in time. Rate shown reflects current rate which may
step up at a future date.
ss. Illiquid Securities are valued at amortized cost.
SCHEDULE OF ILLIQUID SECURITIES
<TABLE>
<CAPTION>
Value as
Acquisition Acquisition Amortized % of
Date Cost Cost Net Assets
-------------------------------------------------------------------------------------------------
Janus Money Market Fund
<S> <C> <C> <C> <C>
Eaton Corp., 6.60%, 2/9/01 8/28/00 $48,487,500 $ 49,083,333 0.46%
Eaton Corp., 6.54%, 2/28/01 9/21/00 38,837,333 39,135,267 0.37%
GMAC Mortgage Corp., 6.66%, 12/1/00 10/30/00 69,611,337 69,611,337 0.66%
NSTAR, Inc., 6.57%, 11/14/00 10/11/00 43,478,531 43,646,203 0.41%
Orix America, Inc., 6.57%, 11/13/00 10/26/00 39,897,800 39,912,400 0.38%
Textron Financial Corp., 6.75%, 2/26/01 2/23/00 50,000,000 50,000,000 0.47%
Textron Financial Corp., 6.75%, 2/26/01 10/24/00 25,268,438 25,001,170 0.24%
Zurich Capital Markets, Inc., 6.72%. 7/26/10 8/22/00 50,000,000 50,000,000 0.47%
-------------------------------------------------------------------------------------------------
$366,389,710 3.46%
-------------------------------------------------------------------------------------------------
</TABLE>
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 October 31, 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 / October 31, 2000 39
<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 United States of
America 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 under
procedures adopted 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. Such collateral is in the possession of the Funds' custodians. 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.
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.
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.
In June 1998, the Financial Accounting Standards Board (FASB) issued Statement
of Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments
and Hedging Activities," which was effective for fiscal years beginning after
June 15, 1999. In June 1999, the FASB issued SFAS No. 137, "Accounting for
Derivative Instruments and Hedging Activities-Deferral of Effective Date of FASB
Statement No. 133," delaying by one year the effective date of SFAS No. 133. The
effective date for the
40 Janus Income Funds / October 31, 2000
<PAGE>
Funds will be November 1, 2000. In June 2000, the FASB issued No. 138,
"Accounting for Certain Derivative Instruments and Certain Hedging Activities,"
an amendment of SFAS No. 133. SFAS 133, as amended, may affect the accounting
treatment of the Funds' derivative instruments and related assets. The Funds
have not at this time quantified the impact, if any on the Financial Statements,
resulting from the adoption of this new standard.
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. Of the ordinary income distributions declared
for the year ended October 31, 2000, 99% and 100%, respectively, were exempt
from federal income taxes for Janus Federal Tax-Exempt Fund and Janus Tax-Exempt
Money Market Fund.
ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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 Income Fund First $300 Million .65 1.00*
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. Until
June 30, 2000, Janus Capital agreed to reduce the administrative fee to .05% and
.30% on the Institutional Shares and Service Shares, respectively. Effective
July 1, 2000, the amount of this waiver was decreased with respect to Janus
Money Market Fund and Janus Tax-Exempt Money Market Fund, and Janus Capital has
agreed to reduce the administrative fee to .08% and .33% on the Institutional
Shares and Service Shares, respectively, for both the Janus Money Market Fund
and the Janus Tax-Exempt Money Market Fund. All other expenses of the Money
Market Funds except Trustees fees and expenses, audit fees and interest expenses
are paid by Janus Capital.
Shares sold of the Janus High-Yield Fund may be subject to the Fund's 1.00%
redemption fee if held for 90 days or less from their date of purchase. The fee
is paid to the Fund and is designed to offset the brokerage commissions, market
impact and other costs associated with changes in the Fund's asset level and
cash flow due to short term trading.
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.
The Bond Funds' expenses may be reduced by voluntary brokerage credits from an
unaffiliated broker. Such credits are included in Expense and Fee Offsets in the
Statement of Operations. Brokerage commissions paid to the unaffiliated broker
reduce transfer agent fees and expenses.
DST Systems, Inc. (DST), an affiliate of Janus Capital through a degree of
common ownership, provides fund accounting and shareholder accounting systems to
the Funds through Janus Capital and Janus Service. Fees paid to DST for the
period ended October 31, 2000, are noted below.
DST Fees
Janus Flexible Income Fund $162,963
Janus High-Yield Fund 71,675
Janus Federal Tax-Exempt Fund 30,761
Janus Short-Term Bond Fund 49,175
Janus Income Funds / October 31, 2000 41
<PAGE>
Notes to | Financial Statements (continued)
3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are due to differing
treatments for items such as deferral of wash sales, foreign currency
transactions, net operating losses and capital loss carryforwards. Permanent
items identified in the period ended October 31, 2000, have been reclassified
among the components of net assets as follows:
Undistributed Undistributed
Net Investment Net Realized Paid-In
Income Gains and Losses Capital
--------------------------------------------------------------------------------
Janus Flexible Income Fund $(2,380,983) $3,049,452 $(668,469)
Janus High-Yield Fund (91,134) 313,303 (222,169)
Janus Federal Tax-Exempt Fund -- -- --
Janus Short-Term Bond Fund -- -- --
--------------------------------------------------------------------------------
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, 2000, 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,
2008. The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investment securities for federal income tax
purposes as of October 31, 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 $ (79,821,954) $1,077,178,973 $ 7,258,615 $ (20,904,914) $ (13,646,299)
Janus High-Yield Fund (23,776,603) 320,620,158 1,367,727 (12,643,054) (11,275,327)
Janus Federal Tax-Exempt Fund (5,922,330) 78,986,276 1,015,360 (1,995,718) (980,358)
Janus Short-Term Bond Fund (3,702,516) 143,913,794 178,893 (1,077,878) (898,985)
---------------------------------------------------------------------------------------------------------------------
</TABLE>
42 Janus Income Funds / October 31, 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) with one or more widely used
market indexes through October 31, 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.
Funds that invest in foreign securities also provide a summary of investments by
country. This summary reports the Fund's exposure to different countries by
providing the percentage of securities invested in each country.
3. 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.
Janus Income Funds / October 31, 2000 43
<PAGE>
Explanation of | Charts and Tables (continued)
4. 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 Realized and Unrealized 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.
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.
44 Janus Income Funds / October 31, 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 / October 31, 2000 45
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Report of | Independent Accountants
To the Trustees and Shareholders of
Janus Investment Fund
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Janus Flexible Income Fund, Janus
High-Yield Fund, Janus Federal Tax-Exempt Fund, Janus Short-Term Bond Fund,
Janus Money Market Fund, Janus Government Money Market Fund and Janus Tax-Exempt
Money Market Fund (seven of the portfolios constituting the Janus Investment
Fund, hereafter referred to as the "Funds") at October 31, 2000, and the results
of each of their operations for the year then ended, the changes in each of
their net assets for each of the two years in the period then ended and the
financial highlights for each of the periods indicated, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2000 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
/s/ PricewaterhouseCoopers LLP
Denver, Colorado
December 5, 2000
46 Janus Income Funds / October 31, 2000
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Janus Income Funds / October 31, 2000 49
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[LOGO] JANUS
P.O. Box 173375
Denver, Colorado 80217-3375
www.janus.com
Funds distributed by Janus Distributors, Inc. Member NASD.
This material must be preceded or accompanied by a prospectus.
[LOGO] Recycled Paper
LFRIN-12/00
