JANUS ASPEN GROWTH PORTFOLIO PORTFOLIO MANAGER, JAMES P. CRAIG
PERFORMANCE REVIEW
In 1995 the financial markets achieved one of the strongest performances on
record, fueled by moderate economic growth, low inflation, and a dramatic
decline in interest rates. Corporate earnings also continued to set records.
The Janus Aspen Growth Portfolio produced a total return of 30.17% for the
year ended December 31, 1995, while the broader market, as measured by the S&P
500 Index, gained 37.58%. Both returns include reinvested dividends.
Although we did not catch the S&P 500 Index, the Portfolio produced
significant gains, and results were achieved with less risk than if the
Portfolio had contained a more volatile selection of stocks. We were cautious
earlier this year when rapid growth in the economy could have caused interest
rates to rise, and held only a moderate position in the volatile technology
sector, which lead the market until the fourth quarter. This year most European
markets did not keep pace with gains in the U.S., and this impacted our foreign
holdings. Lastly, paper stocks declined when the economy slowed and paper prices
weakened.
The Portfolio's returns were helped by Citicorp, and by our early
recognition of the boom in outsourcing and its effect on EDS (General Motors E)
and First Data. We were also quick to see the potential of German software
provider SAP.
THE PORTFOLIO
Equity holdings increased from 54% when the fiscal year began to 81% at
year end, reflecting a more positive outlook for growth stocks, which tend to
perform best in a moderate economy. The Portfolio's ten largest holdings were
28% of assets at year end, up from 18% at the end of 1994. Approximately 13% of
the Portfolio was invested abroad, compared to 6% at year end 1994.
PORTFOLIO THEMES
Pharmaceuticals. Pfizer in the U.S. and Astra and Roche in Europe have
exciting products in their pipelines. We expect these companies to increase
revenues by 15% annually for the next three years, while earnings should grow by
20%.
Outsourcing. More and more, companies farm out functions such as data
processing and computer operations to outside specialists like EDS. EDS should
sign $10 billion in new business this year. First Data processes credit card
transactions for banks and recently acquired First Financial, the largest credit
card processor for merchants. First Data now dominates a market growing at
better than 20%.
Share Repurchase. Many companies have excess cash flow, more money than
they can prudently reinvest in their business. Some companies are employing the
extra cash to buy back and retire their own stock, which adds value for
shareholders. Citicorp (banking) and Hercules (chemicals) have significant stock
repurchase programs.
Insurance. Many insurance companies have restructured operations, increased
efficiency, and grown market share. This group includes disability provider
UNUM, reinsurer General Re, and property-casualty giant AIG.
Banking. Increased efficiency and disciplined asset growth are the keys to
earnings momentum at Citicorp, which also has very successful operations in
emerging markets. At Bank of New York emphasis on securities processing is
lifting profits.
GOING FORWARD
Current economic conditions are very positive for growth stocks. Even if
the economy slows and earnings momentum is less robust, companies with
consistent earnings growth, which make up the core holdings of the Portfolio,
should be in greater demand.
Thank you for your investment in Janus Aspen Growth Portfolio.
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Average Annual Total Return for
the periods ended December 31, 1995
One Year Since 9/13/93*
30.17% 15.25%
*The Portfolio's inception date.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
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[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Growth Portfolio and the S&P 500 Index. Janus Aspen Growth
Portfolio is represented by a solid black line. The S&P 500 Index is represented
by a dashed dark gray line. The "y" axis reflects the value of the investment.
The "x" axis reflects the computation periods from inception, September 13,
1993, through December 31, 1995. The upper right quadrant reflects the ending
value of the hypothetical investment in Janus Aspen Growth Portfolio ($13,845)
as compared to the S&P 500 Index ($14,203).
Source - Lipper Analytical Services, Inc. 1995 All returns reflect reinvested
dividends.
The returns do not reflect deductions at the separate account or contract level
for any charges that may be incurred under a contract. The Portfolio's
securities may differ significantly from the securities in the Index. The Index
is unmanaged. The Adviser voluntarily waives a portion of the Portfolio's
expenses. Without such waiver, the Portfolio's total return would have been
lower.
Janus Aspen Series December 31, 1995 Annual Report
1
<PAGE>
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO PORTFOLIO MANAGER, JAMES P. GOFF
PERFORMANCE REVIEW
In 1995 we experienced one of the strongest markets on record. Low interest
rates, moderate economic growth, and benign inflation combined with excellent
corporate earnings to fuel the rally. The S&P 500 Index gained 37.58% for the
year ended December 31, 1995, while Janus Aspen Aggressive Growth Portfolio
appreciated 27.48%. Both returns include reinvested dividends.
The Portfolio underperformed the S&P 500 Index due to earnings
disappointments in some of our key holdings during the first quarter of the
year. A moderate weighting in technology, which led the market most of the year,
also impacted results. Earnings of many tech companies have been terrific, but
they have also been very hard to predict.
We like to focus on companies that have more predictable earnings over the
long term, that have a strong competitive position in their industries, and that
can continue to increase earnings growth whether the overall economy is strong
or weak. Paging Network, a provider of paging services, and HFS, which
franchises a number of popular hotel and motel chains, are two major holdings
that have these characteristics and performed well this year.
THE PORTFOLIO
As of year end, the Portfolio was 94% invested in equities, versus 57% when
the year began. This reflects the many excellent individual ideas we continue to
find in the current market. Foreign securities remained 5% of holdings at year
end, and are predominantly in Europe. The ten largest positions were 48% of
assets at year end 1995, versus 44% at the end of 1994.
PORTFOLIO THEMES
Niche Manufacturers. Exide (batteries) and Littelfuse (electrical fuses),
APS Holdings (auto parts), Sealed Air (packaging), and Minerals Technologies
(paper additive) either dominate a niche market or have very competitive market
franchises.
Pharmaceuticals. Innovations in drug delivery systems make R.P. Scherer and
TheraTech very well-positioned in a rapidly growing market.
Retailers. AutoZone (auto parts), J.D. Wetherspoon (British pub chain),
Lone Star Steakhouse, General Nutrition Centers, and Petco (pet supplies) make
up this diverse group. Each company is an exceptional competitor in its
industry.
Wireless Communications. Paging Network, Arch Communications, and Commnet
Cellular are service providers that are experiencing a strong cycle of
subscriber growth.
Outsourcing. Using outside specialists is often the most cost-effective
means of handling complex operations such as data processing and other computer
functions. First Data has just acquired competitor First Financial Management,
and is now the largest processor of credit card transactions for both banks and
merchants. Medaphis handles accounting and billing functions for physicians'
groups.
Financial Services. Consumer loan demand remains strong, and Credit
Acceptance (nonstandard auto loans) and World Acceptance (diversified consumer
lending) are benefiting. Insignia Financial is the largest manager of real
estate and real estate partnerships in the U.S.
PORTFOLIO STRATEGY
Because the Portfolio tends to hold concentrated positions, performance can
sometimes be volatile. Still, the Portfolio's performance since inception
remains strong and we are enthusiastic about the prospects for our holdings.
Even if the economy continues to slow and corporate earnings growth is not as
robust as in 1995, our companies may be in even greater demand because they can
provide more predictable results.
We appreciate your continued investment in Janus Aspen Aggressive Growth
Portfolio.
- --------------------------------------------------------------------------------
Average Annual Total Return for
the periods ended December 31, 1995
One Year Since 9/13/93*
27.48% 27.68%
*The Portfolio's inception date.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
- --------------------------------------------------------------------------------
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Aggressive Growth Portfolio and the S&P 500 Index. Janus Aspen
Aggressive Growth Portfolio is represented by a solid black line. The S&P 500
Index is represented by a dashed dark gray line. The "y" axis reflects the value
of the investment. The "x" axis reflects the computation periods from inception,
September 13, 1993, through December 31, 1995. The upper right quadrant reflects
the ending value of the hypothetical investment in Janus Aspen Aggressive Growth
Portfolio ($17,507) as compared to the S&P 500 Index ($14,203).
Source - Lipper Analytical Services, Inc. 1995 All returns reflect reinvested
dividends.
The returns do not reflect deductions at the separate account or contract level
for any charges that may be incurred under a contract. The Portfolio's
securities may differ significantly from the securities in the Index. The Index
is unmanaged. The Adviser voluntarily waives a portion of the Portfolio's
expenses. Without such waiver, the Portfolio's total return would have been
lower.
Janus Aspen Series December 31, 1995 Annual Report
2
<PAGE>
JANUS ASPEN INTERNATIONAL GROWTH PORTFOLIO PORTFOLIO MANAGER, HELEN YOUNG HAYES
PERFORMANCE REVIEW
Most overseas markets lagged the U.S. in 1995. Interest rates did not come
down as fast in Europe as they did in our own country, and in much of Asia
inflation remains a problem. Even though international markets were less robust,
Janus Aspen International Growth Portfolio performed well during the year ended
December 31, gaining 23.15%, versus a gain of 11.21% for the Morgan Stanley EAFE
Index. (EAFE stands for Europe, Australasia, and the Far East.) Both returns are
with net dividends reinvested.(1)
Good individual stock selection was the primary reason the Portfolio beat
the EAFE Index. Our European growth stocks are a diverse group, and many
outperformed the local markets. We had less success with Swedish conglomerate
Kinnevik. Kinnevik had disappointing earnings, but is moving to increase
shareholder value by dividing into four separate divisions. Moderate currency
hedging constrained performance early in the year, but helped results after the
dollar rallied against the Japanese yen.
THE PORTFOLIO
The Portfolio was approximately 97% invested in equities at the end of
December, with 55% of assets invested in Europe, 24% in the Pacific Rim, and
only 4% in the U.S. The five countries where we have the largest investments
totaled 64% of assets. Our investment in Japan was increased after the dollar
bottomed out definitively against the yen and the Japanese economy showed signs
of acceleration. The ten largest holdings made up 35% of assets.
TOP 5 COUNTRIES December 31, 1995 December 31, 1994
- --------------------------------------------------------------------------------
Japan 21.6% 5.4%
Sweden 17.3% 22.7%
Switzerland 10.2% 1.6%
Germany 9.8% 3.3%
United Kingdom 5.4% 3.2%
- --------------------------------------------------------------------------------
(1) Net dividends reinvested are the dividends that remain to be reinvested
after foreign tax obligations have been met. Such obligations vary from country
to country.
PORTFOLIO THEMES
Telecommunications. Inexpensive cellular products and services have created
an extremely powerful demand cycle globally. In countries such as Japan, where
we own DDI, an independent long-distance provider, the cycle is still in its
early stages. Kinnevik is expanding its cellular and media operations in Sweden.
In the emerging markets of Asia and Latin America, Millicom is a dominate
competitor, as are Telecomunicacoes Brazil and Korean Mobile Telephone in their
respective regions.
Multinational Pharmaceuticals. In Europe, Astra, Roche, Ciba-Geigy, and
Sandoz all are either marketing or developing products that have changed or will
change the treatment of many widespread diseases. Astra's Losec is the
best-selling ulcer treatment in Europe and Sandoz has a new treatment for
Alzheimer's in development.
Technology-Related. SAP has a powerful integrated business software
applications package. Getronics and JBA Holdings are software consulting firms
that fill an exploding demand for custom networks and systems.
Outsourcing. When it comes to complex operations, especially in computers
and data processing, it is often more cost-effective to use outside specialists.
In Japan, NTT Data Communications Systems manages information and processes
data.
INTERNATIONAL STRATEGY
Janus Aspen International Growth Portfolio invests in individual companies
with good earnings prospects that sell in the market at a discount to their
growth potential. Our approach assumes that over the long term, exceptional
earnings growth will support a higher share price no matter where a company is
headquartered. We continue to find many such opportunities in markets worldwide.
Thank you for your continued investment in Janus Aspen International Growth
Portfolio.
- --------------------------------------------------------------------------------
Average Annual Total Return for
the periods ended December 31, 1995
One Year Since 5/2/94*
23.15% 11.39%
*The Portfolio's inception date.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
- --------------------------------------------------------------------------------
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen International Growth Portfolio and the MSCI EAFE Index. Janus
Aspen International Growth Portfolio is represented by a solid black line. The
MSCI EAFE Index is represented by a dashed dark gray line. The "y" axis reflects
the value of the investment. The "x" axis reflects the computation periods from
inception, May 2, 1994, through December 31, 1995. The upper right quadrant
reflects the ending value of the hypothetical investment in Janus Aspen
International Growth Portfolio ($11,970) as compared to the MSCI EAFE Index
($11,110).
Source - Lipper Analytical Services, Inc. 1995 All returns reflect reinvested
dividends.
The returns do not reflect deductions at the separate account or contract level
for any charges that may be incurred under a contract. The Portfolio's
securities may differ significantly from the securities in the Index. The Index
is unmanaged. The Adviser voluntarily waives a portion of the Portfolio's
expenses. Without such waiver, the Portfolio's total return would have been
lower.
Janus Aspen Series December 31, 1995 Annual Report
3
<PAGE>
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO PORTFOLIO MANAGER, HELEN YOUNG HAYES
PERFORMANCE REVIEW
Several European markets posted records during the year ended December 31,
1995, but few foreign markets kept pace with the U.S. rally when measured in
U.S. dollars. Falling interest rates, which fueled the rally in the U.S.,
remained stubbornly higher in Europe. The Japanese recession continued into year
end, though signs of strength emerged in the second half of the year. In the
rest of Asia, inflation was high, though there was evidence of moderation as the
year progressed.
Janus Aspen Worldwide Growth Portfolio gained 27.37% in 1995, outperforming
the Morgan Stanley International World Index, which gained 20.72% for the same
period. Both returns include net dividends reinvested.(1) We were able to beat
the Index this year even though we pursued a conservative strategy early in the
year, when rising interest rates in the U.S. attracted investment away from
foreign markets. Currency hedging constrained performance during the first
quarter, but helped results after the U.S. dollar began to rally.
THE PORTFOLIO
At year end, the Portfolio was approximately 82% invested in equities, up
from 58% when the year began. European stocks remained at 37% of assets, but the
Pacific Rim rose from 7% to 16% of holdings. Investment in Japan was increased
in the second half of the year after the dollar bottomed definitively against
the yen and the Japanese economy showed signs of acceleration. We also added a
significant position in YPF, the largest oil and gas company in Argentina. The
top ten positions made up 18% of the Portfolio at year end.
TOP 5 COUNTRIES December 31, 1995 December 31, 1994
- --------------------------------------------------------------------------------
Japan 13.2% 6.6%
United States 13.1% 10.2%
Sweden 7.6% 15.3%
Germany 6.8% 2.3%
Switzerland 5.9% 0.9%
- --------------------------------------------------------------------------------
PORTFOLIO THEMES
Multinational Pharmaceuticals. Roche, Sandoz, Astra, and Ciba-Geigy in
Europe and Pfizer in the U.S. are marketing or developing exceptionally strong
product lines. Astra's anti-ulcer drug Losec is the best-selling treatment in
Europe, and Sandoz is developing a drug to treat Alzheimer's.
Information Technology. Demand for systems to automate all facets of
corporate operations has exploded in the past five years. SAP is the largest
international provider of integrated software. Getronics is a software
consultant.
Outsourcing. Outside specialists now handle many corporate operations,
including information and data processing. EDS (General Motors E), First Data,
which recently acquired competitor First Financial Management, and NTT Data
Communications Systems are data processors benefiting from the outsourcing
phenomenon.
Telecommunications. The increased affordability of cellular communications
has led to a very strong demand cycle globally. Kinnevik, the Swedish
conglomerate, intends to enhance shareholder value by dividing into four
divisions and spinning off its cellular telecommunications business. DDI, an
independent Japanese long-distance provider and cellular operator, should profit
from consumer enthusiasm for cellular communications in Japan, where the
cellular market is still in the early stages of growth.
GLOBAL STRATEGY
Janus Aspen Worldwide Growth Portfolio looks for individual companies with
strong earnings growth. Foreign markets and economies continue to deregulate and
open to global investment, providing a positive environment for equities. Over
time, these efforts should continue to create exciting opportunities.
Thank you for your continued investment in Janus Aspen Worldwide Growth
Portfolio.
- --------------------------------------------------------------------------------
(1) Net dividends reinvested are the dividends that remain to be reinvested
after foreign tax obligations have been met. Such obligations vary from country
to country.
- --------------------------------------------------------------------------------
Average Annual Total Return for
the periods ended December 31, 1995
One Year Since 9/13/93*
27.37% 20.74%
*The Portfolio's inception date.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
- --------------------------------------------------------------------------------
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Worldwide Growth Portfolio and the MSCI World Index. Janus Aspen
Worldwide Growth Portfolio is represented by a solid black line. The MSCI World
Index is represented by a dashed dark gray line. The "y" axis reflects the value
of the investment. The "x" axis reflects the computation periods from inception,
September 13, 1993, through December 31, 1995. The upper right quadrant reflects
the ending value of the hypothetical investment in Janus Aspen Worldwide Growth
Portfolio ($15,402) as compared to the MSCI World Index ($12,761).
Source - Lipper Analytical Services, Inc. 1995 All returns reflect reinvested
dividends.
The returns do not reflect deductions at the separate account or contract level
for any charges that may be incurred under a contract. The Portfolio's
securities may differ significantly from the securities in the Index. The Index
is unmanaged. The Adviser voluntarily waives a portion of the Portfolio's
expenses. Without such waiver, the Portfolio's total return would have been
lower.
Janus Aspen Series December 31, 1995 Annual Report
4
<PAGE>
JANUS ASPEN BALANCED PORTFOLIO PORTFOLIO MANAGER, JAMES P. CRAIG
PORTFOLIO PERFORMANCE
This year proved to be one of the stronger markets on record for both
stocks and fixed-income securities. Moderate economic growth, falling interest
rates, and low inflation combined with excellent corporate earnings to fuel very
fine advances.
Janus Aspen Balanced Portfolio had a return of 24.79% for the year ended
December 31, 1995, compared to a return of 37.58% for the S&P 500 Index and
19.24% for the Lehman Brothers Government/Corporate Bond Index. All returns
include reinvested dividends. Although we did not catch the S&P 500 Index, the
Portfolio produced significant gains, and results were achieved with less risk
than if we held either a more volatile selection of stocks or longer bond
maturities.
However, we did misjudge the data points on inflation and pursued a
conservative strategy earlier in the year, and so did not participate in some of
the capital appreciation in the bond market and the early gains in stocks.
Equity performance was also held down by earnings disappointments in Wal-Mart
and Crown Cork & Seal.
On the plus side, we recognized early the potential of business software
provider SAP and the effect of the outsourcing boom on EDS (General Motors E)
and First Data.
THE PORTFOLIO
Fixed Income. As of year end, the fixed-income portion of the Portfolio was
43% of assets, versus 7% at the end of 1994 (when we were holding more cash and
cash equivalents). Investment-grade corporate bonds accounted for 18% of assets
and convertible bonds made up 1%. We increased the percentage of government
bonds to 22%, of which a modest 7% are in 30-year Treasuries.
Equities. The equity portion of the Portfolio was 48% of assets at year
end, versus 42% at the end of 1994. The largest ten equity positions were 22% of
assets.
PORTFOLIO THEMES
Outsourcing. It is now standard business practice to farm out functions
such as data processing and computer operations to outside specialists. EDS and
First Data Corporation are outsourcers that are benefiting from this trend.
After acquiring First Financial Management, the largest credit card transaction
processor for merchants, First Data now dominates the credit card transaction
processing market. Robert Half International provides accounting temps.
Stock Repurchase. Cash flow is strong at many U.S. corporations. Instead of
acquiring less profitable businesses or issuing dividends, Citicorp and defense
contractor McDonnell Douglas are repurchasing shares to add shareholder value.
Insurance. The industry is restructuring, boosting efficiency, and
increasing earnings. We own disability provider UNUM, and have added reinsurers
Risk Capital and Prudential Reinsurance, which is turning around its operations.
Banking. Banking has also become more efficient and is focusing on its
profitable operations. Citicorp has a strong credit card business as well as an
established presence in many emerging economies. Klamath First Bancorp is a
thrift that recently converted to public ownership. Bank of New York is
increasing profitability by expanding its securities processing operations.
THE BALANCED STRATEGY
In the current positive market environment of low interest rates and low
inflation, our strategy is to hold our growth stocks, adding positions when we
see opportunities. We believe this strategy will continue to provide solid and
consistent returns, with less volatility than a pure growth portfolio.
A NEW PORTFOLIO MANAGER IN 1996
We are pleased to announce that Blaine Rollins will take over management of
Janus Aspen Balanced Portfolio on May 1, 1996. Blaine is a Chartered Financial
Analyst, and has been an analyst at Janus since 1990. He began his career in the
fixed-income area, so he is proficient in both sectors of the balanced
discipline.
Thank you for your continued investment in Janus Aspen Balanced Portfolio.
- --------------------------------------------------------------------------------
Average Annual Total Return for
the periods ended December 31, 1995
One Year Since 9/13/93*
24.79% 13.96%
*The Portfolio's inception date.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
- --------------------------------------------------------------------------------
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Balanced Portfolio, the Lehman Brothers Government/Corporate Bond
Index and the S&P 500 Index. Janus Aspen Balanced Portfolio is represented by a
solid black line. The Lehman Brothers Government/Corporate Bond Index is
represented by a dashed dark gray line. The S&P 500 Index is represented by a
dashed light gray line. The "y" axis reflects the value of the investment. The
"x" axis reflects the computation periods from inception, September 13, 1993,
through December 31, 1995. The upper right quadrant reflects the ending value of
the hypothetical investment in Janus Aspen Balanced Portfolio ($13,490) as
compared to the Lehman Brothers Government/Corporate Bond Index ($11,512) and
S&P 500 Index ($14,203).
Source - Lipper Analytical Services, Inc. 1995 All returns reflect reinvested
dividends.
The returns do not reflect deductions at the separate account or contract level
for any charges that may be incurred under a contract. The Portfolio's
securities may differ significantly from the securities in the Index. The Index
is unmanaged. The Adviser voluntarily waives a portion of the Portfolio's
expenses. Without such waiver, the Portfolio's total return would have been
lower.
Janus Aspen Series December 31, 1995 Annual Report
5
<PAGE>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO PORTFOLIO MANAGER, RONALD V. SPEAKER
PERFORMANCE REVIEW
Janus Aspen Flexible Income Portfolio outperformed the Lehman Brothers
Government/Corporate Bond Index for the year ended December 31, 1995. The
Portfolio had a return of 23.86%, versus 19.24% for the Lehman Index. Both
returns include reinvested dividends.
Moderate economic growth, low inflation, and a dramatic decline in interest
rates produced one of the best bond markets on record in 1995. Although the
Portfolio pursued a conservative strategy early in the year, when economic
growth was still strong and it appeared interest rates might rise, as soon as
growth began to slow we changed our posture to take advantage of the decline in
rates and were able to beat the Lehman Index.
PORTFOLIO STRATEGY IN 1995
To take advantage of the decline in interest rates, cash was reduced and
the Portfolio's weighted average maturity was extended from 6.8 years at the end
of 1994 to 13.1 years at the end of 1995. Average modified duration (a
theoretical measure of price volatility) also rose from 3.1 years to 7 years.
Investment-grade corporate bonds remained 39% of the Portfolio, and U.S.
Treasury securities increased from 0% to 12%. We wanted a mix of securities with
both good yields and the ability to appreciate with the decline in interest
rates. As of year end, the Portfolio's 30-day yield stood at 6.92%, and the
average rating of its securities was BBB+.
PORTFOLIO ASSET MIX
At year end, the Portfolio was positioned to take advantage of stable to
lower interest rates.
Investment-Grade Corporate Bonds 39%
High-Yield/High-Risk Bonds 36%
U.S. Government Bonds 12%
Foreign Bonds 5%
Cash 8%
Investment-grade corporate holdings included high-quality banks and
financial institutions such as First National Bank of Boston, First Union, and
BankAmerica. Industrial corporations included Ford Motor Credit, GMAC, and TCI
Communications.
Our average weighting in high-yield/high-risk bonds was 35% at the end of
1995, versus 28% in 1994. Our high-yield holdings were solid performers. Grocery
stores were weighted heavily in the high-yield sector of the Portfolio because
they tend to have more consistent revenue streams.
U.S. Treasury issues performed well this year and are mostly in 10-year
maturities, with a small position in 30-year bonds. These longer-term bonds
should provide more capital appreciation if interest rates continue to decline.
A small position in German bonds was added during the summer to take advantage
of their higher yields.
GOING FORWARD
There are many reasons to be optimistic about the bond market as we enter
1996. Moderate economic growth and low inflation should continue to keep
downward pressure on interest rates and lift prices of fixed-income securities.
The current budget debate in Washington needs to be monitored closely, however.
A productive and responsible budget accord would have a long-term positive
impact on the debt markets.
Thank you for your continued investment in Janus Aspen Flexible Income
Portfolio.
- --------------------------------------------------------------------------------
Average Annual Total Return for
the periods ended December 31, 1995
One Year Since 9/13/93*
23.86% 9.69%
*The Portfolio's inception date.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
- --------------------------------------------------------------------------------
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Flexible Income Portfolio and the Lehman Brothers
Government/Corporate Bond Index. Janus Aspen Flexible Income Portfolio is
represented by a solid black line. The Lehman Brothers Government/Corporate Bond
Index is represented by a dashed dark gray line. The "y" axis reflects the value
of the investment. The "x" axis reflects the computation periods from inception,
September 13, 1993, through December 31, 1995. The upper right quadrant reflects
the ending value of the hypothetical investment in Janus Aspen Flexible Income
Portfolio ($12,360) as compared to the Lehman Brothers Government/Corporate Bond
Index ($11,512).
Source - Lipper Analytical Services, Inc. 1995 All returns reflect reinvested
dividends.
The returns do not reflect deductions at the separate account or contract level
for any charges that may be incurred under a contract. The Portfolio's
securities may differ significantly from the securities in the Index. The Index
is unmanaged. The Adviser voluntarily waives a portion of the Portfolio's
expenses. Without such waiver, the Portfolio's total return would have been
lower.
Janus Aspen Series December 31, 1995 Annual Report
6
<PAGE>
JANUS ASPEN SHORT-TERM BOND PORTFOLIO PORTFOLIO MANAGER, RONALD V. SPEAKER
PERFORMANCE
During the year, the rally in the short end of the fixed-income market
continued as economic growth remained moderate, inflation was low, and interest
rates declined.
Janus Aspen Short-Term Bond Portfolio achieved a positive total return of
9.54% for the one-year period ended December 31, 1995. This compares to 10.96%
for the Lehman Brothers Government/Corporate 1-3 Year Bond Index. Both results
include reinvested dividends.
The Portfolio's performance was affected by its conservative position early
in the year, when the economy was still experiencing a strong recovery and
assets were partially hedged with two-year note futures.
CURRENT STRATEGY
The Portfolio's strategy in 1995 was intended to take advantage of stable
or declining interest rates. Weighted average maturity was extended to 2.6
years, with a duration, which is a hypothetical measure of price volatility, of
2.3 years. As of year end, the Portfolio's average rating was AA+, and the
average 30-day yield was 5.13%.
PORTFOLIO COMPOSITION
Investment-grade bonds (rated BBB or better by Standard & Poor's Ratings
Services) made up 51% of the Portfolio at year end, and include International
Lease Finance, IBM Corp., Associates Corp., and Lockheed Corp. High-quality
corporate bonds have better yields than similar maturities in the U.S. Treasury
market and their prices also tend to be more responsive to positive, i.e.,
lower, trends in interest rates. Two-year government notes were 46% of
investments, high-yield/high-risk (junk) bonds were 1%.
STRATEGY GOING FORWARD
The current economic environment is positive for the bond market, and
should remain so as long as economic growth is moderate and inflation is in
check.
Political developments in Washington will probably take on increased
importance during 1996. A productive and responsible budget accord would have
positive implications for the bond market. The budget debate deserves investors'
close attention.
A NEW PORTFOLIO MANAGER IN 1996
Effective May 1, 1996, Sandy Rufenacht will take over portfolio
responsibilities for Janus Aspen Short-Term Bond Portfolio. Sandy started with
Janus in 1990 as a senior accountant, but for the last four years has been a
fixed-income analyst working with Ron Speaker on Janus Flexible Income Fund,
Janus Short-Term Bond Fund, and Janus Intermediate Government Securities Fund.
Thank you for your investment in Janus Aspen Short-Term Bond Portfolio.
- --------------------------------------------------------------------------------
Average Annual Total Return for
the periods ended December 31, 1995
One Year Since 9/13/93*
9.54% 4.61%
*The Portfolio's inception date.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
- --------------------------------------------------------------------------------
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Short-Term Bond Portfolio and the Lehman Brothers
Government/Corporate 1-3 Year Bond Index. Janus Aspen Short-Term Bond Portfolio
is represented by a solid black line. The Lehman Brothers Government/Corporate
1-3 Year Bond Index is represented by a dashed dark gray line. The "y" axis
reflects the value of the investment. The "x" axis reflects the computation
periods from inception, September 13, 1993, through December 31, 1995. The upper
right quadrant reflects the ending value of the hypothetical investment in Janus
Aspen Short-Term Bond Portfolio ($11,088) as compared to the Lehman Brothers
Government/Corporate 1-3 Year Bond Index ($11,269).
Source - Lipper Analytical Services, Inc. 1995 All returns reflect reinvested
dividends.
The returns do not reflect deductions at the separate account or contract level
for any charges that may be incurred under a contract. The Portfolio's
securities may differ significantly from the securities in the Index. The Index
is unmanaged. The Adviser voluntarily waives a portion of the Portfolio's
expenses. Without such waiver, the Portfolio's total return would have been
lower.
Janus Aspen Series December 31, 1995 Annual Report
7
<PAGE>
JANUS ASPEN MONEY MARKET PORTFOLIO PORTFOLIO MANAGER, SHARON S. PICHLER
BACKGROUND
During the year ended December 31, 1995, interest rates declined sharply
and the bond market rallied. Slower economic growth and low inflation allowed
rates to fall. Yields on Janus Aspen Money Market Portfolio, which opened on May
1, 1995, have followed a similar path.
The year ended with the 30-year Treasury Bond at 5.95%, down from 7.34% on
May 1. The one-year Treasury Bill was at 5.13%, down from 6.31%.
The crosscurrents of economic activity and inflation expectations kept the
markets guessing as to which way, and by how much, the Federal Reserve Board
would cause interest rates to move. The suspense ended December 19, 1995, when
the Fed lowered its key rates by one quarter of a percentage point. Now the
questions are whether, and when, rates will go down again.
PORTFOLIO STRATEGY
Our current thinking is that the economy is showing enough signs of
weakness to justify another Fed action to lower interest rates. We would like to
buy one-year securities now, thinking that if we wait, we will have to invest at
lower rates. There have been some barriers to executing that strategy, however.
Companies have been reluctant to issue one-year debt, thinking they will soon be
able to do so at a lower rate. Also, overnight rates are currently higher than
one-year rates (called an inverted yield curve). So we must be very selective
when buying long-term securities to avoid giving up too much yield. The third
barrier is a need for near-total liquidity in the Portfolio, since investors are
free to withdraw or exchange out of the Portfolio at any time.
Our strategy is to search for the best values in very short-term securities
so as to receive the benefits of the higher rates in that segment and maintain
the Portfolio's liquidity. This approach has given the Portfolio a weighted
average maturity of 7 days as of December 31, 1995. If we find opportunities to
do so, we expect to lengthen the Portfolio's duration somewhat during the coming
months.
Thank you for your investment in Janus Aspen Money Market Portfolio.
Janus Aspen Series December 31, 1995 Annual Report
8
<PAGE>
JANUS ASPEN GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS
Shares or
Principal Amount Market Value
- ---------------- ------------
Common Stock - 78.4%
Aerospace and Defense - 3.2%
17,725 Boeing Co. $ 1,389,197
11,150 McDonnell Douglas Corp. 1,025,800
18,000 United Technologies Corp. 1,707,750
4,122,747
Auto and Truck - 0.8%
14,025 General Motors Corp. 741,572
13,000 Honda Motor Co.** 268,002
1,009,574
Biopharmaceuticals - 1.4%
29,450 Amgen, Inc.* 1,748,594
Broadcasting, Radio and Television - 0.7%
15,000 Grupo Televisa S.A. de C.V. (GDR) 337,500
20,000 Heritage Media Corp. - Class A* 512,500
850,000
Chemicals - 2.4%
13,275 Cytec Industries, Inc.* 828,028
16,550 Hercules, Inc. 933,006
8,425 W.R. Grace & Co. 498,128
25,825 Witco Corp. 755,381
3,014,543
Commercial Services - 2.4%
19,775 Manpower, Inc. 556,172
58,925 Robert Half International, Inc.* 2,467,484
3,023,656
Computer Software and Services - 11.7%
26,500 Cisco Systems, Inc.* 1,977,563
26,950 Computer Associates
International, Inc. 1,532,781
67,400 First Data Corp. 4,507,375
42,775 Fiserv, Inc.* 1,283,250
93,675 General Motors Corp. - Class E 4,871,100
4,225 Informix Corp.* 126,750
17 NTT Data Communications
Systems Corp.** 570,945
14,869,764
Computers - 1.6%
40,850 Sun Microsystems, Inc.* 1,863,781
5,000 Telxon Corp. 113,125
1,976,906
Electronics - 2.2%
5,000 Altera Corp.* 248,750
5,000 Hewlett-Packard Co. 418,750
30,450 Pittway Corp. - Class A 2,062,988
2,730,488
Electronics - Semiconductors - 0.5%
9,100 Analog Devices, Inc.* 321,913
6,000 Rohm Co.** 338,559
660,472
Shares or
Principal Amount Market Value
- ---------------- ------------
Entertainment - 0.6%
28,650 Circus Circus Enterprises, Inc.* $ 798,619
Financial - Bank Commerical - 2.0%
11,375 First Bank System, Inc. 564,484
14,775 First Interstate Bancorp 2,016,787
2,581,271
Financial - Bank Money Center - 7.9%
82,850 Bank of New York Co., Inc. 4,038,938
88,447 Barclays PLC** 1,013,116
57,475 Citicorp 3,865,194
28,075 First Chicago NBD Corp. 1,108,962
10,026,210
Financial - Savings/Loan/Thrift - 0.2%
19,475 HFNC Financial Corp.* 255,609
Financial - Security Broker - 0.7%
11,125 Merrill Lynch and Co., Inc. 567,375
4,650 Morgan Stanley Group, Inc. 374,906
942,281
Financial Services - 2.2%
22,750 Federal National Mortgage
Association 2,823,844
Food Processing - 1.4%
23,150 Kellogg Co. 1,788,338
Household Products - 1.1%
8,775 First Brands Corp. 417,909
40,000 Newell Co. 1,035,000
1,452,909
Insurance - Life - 1.8%
41,600 UNUM Corp. 2,288,000
Insurance - Multiline - 4.0%
7,000 American International Group, Inc. 647,500
6,000 ITT Hartford Group, Inc.* 290,250
175,275 Prudential Reinsurance Holdings, Inc. 4,097,053
5,034,803
Insurance - Property and Casualty - 1.1%
4,250 General Re Corp. 658,750
12,000 PartnerRe, Ltd. 330,000
20,000 Risk Capital Holdings, Inc.* 467,500
1,456,250
Leisure Time - 0.7%
24,955 Coleman Co., Inc.* 876,544
Machine - Construction and Mining - 0.3%
5,750 Caterpillar, Inc. 337,813
Machine - Diversified - 1.9%
23,950 AGCO Corp. 1,221,450
17,675 American Standard Companies, Inc.* 494,900
20,000 Deere & Co. 705,000
2,421,350
Medical - Hospital Management Services - 0.1%
6,175 HEALTHSOUTH Corp.* 179,847
Janus Aspen Series December 31, 1995 Annual Report
9
<PAGE>
JANUS ASPEN GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Shares or
Principal Amount Market Value
- ---------------- ------------
Medical Supplies - 0.3%
5,600 Luxottica Group S.p.A. (ADR) $ 327,600
Mining - 2.8%
27,391 Freeport McMoRan, Inc. 1,013,467
35,975 Minerals Technologies, Inc. 1,313,088
16,811 Potash Corporation of
Saskatchewan, Inc. 1,191,480
3,518,035
Miscellaneous - Distribution and Wholesale - 1.1%
25,000 Cardinal Health, Inc. 1,368,750
Miscellaneous - Manufacturing - 0.7%
18,075 AlliedSignal, Inc. 858,563
Office and Business Equipment - 0.7%
15,000 Oce-Van Der Grinten N.V.** 911,014
Oil and Gas - Exploration - 0.5%
12,000 Triton Energy Corp.* 688,500
Packaging and Containers - 0.5%
20,850 Sealed Air Corp.* 586,406
Personal Credit - 1.2%
25,000 Travelers Group, Inc. 1,571,875
Pharmaceuticals - 7.9%
20,236 Astra A.B. - Class A 809,995
2,600 Centocor, Inc.* 80,275
51,750 Lilly (Eli) & Co. 2,910,938
33,200 Pfizer, Inc. 2,091,600
297 Roche Holding A.G.** 2,349,480
31,700 SmithKline Beecham PLC (ADR) -
Class A 1,759,350
10,001,638
Publishing - Newspaper - 0.1%
2,925 Reuters Holdings PLC (ADS) 161,241
Publishing and Printing - 1.9%
26,169 Wolters Kluwer N.V.** 2,472,009
Retail - Department Stores - 0.1%
3,900 Credit Saison Co., Ltd. 92,857
Retail - Special Line - 0.5%
20,000 AutoZone, Inc.* 577,500
Telecommunications - 1.2%
12,050 MFS Communications Co., Inc.* 641,663
35,000 Paging Network, Inc.* 853,125
1,494,788
Telecommunications Equipment - 0.7%
22,334 Newbridge Networks Corp.* 924,069
Toys - 0.9%
38,900 Mattel, Inc. 1,196,175
Shares or
Principal Amount Market Value
- ---------------- ------------
Transportation - Air - 1.6%
26,550 AMR Corp.* $ 1,971,338
Transportation - Railroad - 1.2%
19,343 Burlington Northern Santa Fe Corp. 1,508,754
Utilities - Telecommunications - 1.0%
100 DDI Corp.** 774,294
15,000 Telefonos de Mexico S.A. de C.V.
(ADR) - Class L 478,125
1,252,419
Wholesale - Special Line - 0.6%
16,450 Alco Standard Corp. 750,531
Total Common Stock (cost $86,114,843) 99,504,494
Preferred Stock - 2.5%
Computer Software and Services - 2.5%
21,250 SAP A.G.** 3,207,826
(cost $2,253,224)
U.S. Government Agencies - 8.1%
Federal Farm Credit Bank
$ 5,000,000 5.65%, 1/10/96 4,992,937
Federal Home Loan Bank System
350,000 5.40%, 1/4/96 349,843
Federal Home Loan Mortgage Corp.
2,000,000 5.64%, 1/19/96 1,994,360
3,000,000 5.50%, 1/22/96 2,990,375
Total U.S. Government Agencies
(amortized cost $10,327,515) 10,327,515
Short-Term Corporate Notes - 10.0%
Ford Motor Credit Corp.
3,700,000 5.75%, 1/2/96 3,699,408
General Electric Capital Corp.
6,000,000 5.63%, 1/2/96 5,999,062
Household Finance Corp.
3,000,000 5.80%, 1/5/96 2,998,067
Total Short-Term Corporate Notes
(amortized cost $12,696,537) 12,696,537
Repurchase Agreement - 0.2%
State Street Bank & Trust Co., 5.00%,
194,000 dated 12/29/95, maturing 1/2/96,
to be repurchased at $194,107,
collateralized by $195,000
in U.S. Treasury Notes, 5.625%,
due 1/31/98, value $200,993 194,000
(cost $194,000)
Total Investments - 99.2% (total cost $111,586,119) 125,930,372
Cash, Receivables and Other Assets,
net of Liabilities - 0.8% 980,413
Net Assets - 100% $126,910,785
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
10
<PAGE>
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS
Shares or
Principal Amount Market Value
- ---------------- ------------
Common Stock - 94.0%
Auto Parts - Replacement - 5.0%
118,325 APS Holding Corp. - Class A* $ 2,662,313
144,175 Exide Corp. 6,614,028
9,276,341
Commercial Services - 8.9%
141,275 CUC International, Inc.* 4,821,009
318,850 Medaphis Corp.* 11,797,450
16,618,459
Computer Software and Services - 5.9%
196,875 Black Box Corp.* 3,223,828
223,212 First Data Corp. 7,839,422
11,063,250
Electronics - 0%
1,500 Pittway Corp. - Class A 101,625
Financial Services - 0.9%
26,925 Credit Acceptance Corp.* 558,694
95,850 World Acceptance Corp.* 1,078,313
1,637,007
Holding Companies - Diversified - 0.6%
37,000 Kinnevik A.B. - Class B** 1,154,529
Insurance - Life - 1.8%
22,525 Oxford Health Plans, Inc.* 1,664,034
51,600 Protective Life Corp. 1,612,500
3,276,534
Insurance - Property and Casualty - 1.1%
40,025 Progressive Corp. 1,956,222
Leisure Time - 1.5%
151,900 Family Golf Centers, Inc.* 2,772,175
Lodging - 7.1%
162,350 HFS, Inc.* 13,272,113
Medical - Hospital Management Services - 3.6%
109,900 HEALTHSOUTH Corp.* 3,200,838
39,850 Pacificare Health Systems, Inc. -
Class B* 3,466,950
6,667,788
Medical Supplies - 2.9%
21,525 Gulf South Medical Supply, Inc.* 651,131
68,425 Omnicare, Inc. 3,062,019
228,425 Quidel Corp.* 1,627,528
5,340,678
Mining - 2.4%
121,325 Minerals Technologies, Inc. 4,428,363
Miscellaneous - Manufacturing - 2.7%
260,525 Trigen Energy Corp. 5,080,238
Oil and Gas - Domestic - 0.1%
17,275 NGC Corp. 153,316
Packaging and Containers - 1.8%
14,800 Intertape Polymer Group, Inc. 464,350
99,200 Sealed Air Corp.* 2,790,000
3,254,350
Pharmaceuticals - 7.9%
189,665 R.P. Scherer Corp.* 9,317,293
38,975 Teva Pharmaceuticals Industries,
Ltd. (ADR) 1,807,466
Shares or
Principal Amount Market Value
- ---------------- ------------
Pharmaceuticals (continued)
197,425 Theratech, Inc.* $ 3,553,650
14,678,409
Real Estate - 5.2%
248,825 Insignia Financial Group, Inc. - Class A* 9,579,763
Restaurants and Food Services - 6.3%
141,400 Lone Star Steakhouse & Saloon, Inc.* 5,426,225
51,525 Papa Johns International, Inc.* 2,122,186
419,728 Wetherspoon (J.D.) PLC** 4,196,236
11,744,647
Retail - Special Line - 8.4%
161,525 AutoZone, Inc.* 4,664,034
198,400 General Nutrition Companies, Inc.* 4,563,200
29,875 O'Reilly Automotive, Inc.* 866,375
156,075 Petco Animal Supplies, Inc.* 4,565,194
20,950 Viking Office Products, Inc.* 974,175
15,632,978
Telecommunications - 15.0%
147,900 Arch Communications Group, Inc.* 3,549,600
156,550 CommNet Cellular, Inc.* 4,520,381
40,175 Millicom International Cellular S.A.* 1,225,338
99,375 Mobilemedia Corp.* 2,211,094
572,425 Paging Network, Inc.* 13,952,859
192,700 PriCellular Corp. - Class A* 2,505,100
27,964,372
Tobacco - 1.8%
314,000 PT Hanjaya Mandala Sampoerna* 3,271,979
Transportation - Railroad - 3.1%
88,575 Wisconsin Central
Transportation Corp.* 5,823,806
Total Common Stock (cost $146,004,040) 174,748,942
Warrants - 0.4%
24,775 Littelfuse, Inc. - exp. 12/27/01*
(cost $462,295) 730,863
U.S. Government Agency - 0.2%
Federal Home Loan Bank System
$ 400,000 5.40%, 1/4/96
(amortized cost $399,820) 399,820
Short-Term Corporate Notes - 5.0%
Ford Motor Credit Corp.
8,300,000 5.75%, 1/2/96 8,298,673
Household Finance Corp.
1,000,000 5.80%, 1/4/96 999,517
Total Short-Term Corporate Notes
(amortized cost $9,298,190) 9,298,190
Repurchase Agreement - 0.1%
State Street Bank & Trust Co., 5.00%
161,000 dated 12/29/95, maturing 1/2/96,
to be repurchased at $161,089,
collateralized by $160,000 in U.S.
Treasury Notes, 5.625%, due 1/31/98, 161,000
value $164,918 (cost $161,000)
Total Investments - 99.7% (total cost $156,325,345) 185,338,815
Cash, Receivables and Other Assets,
net of Liabilities - 0.3% 572,246
Net Assets - 100% $185,911,061
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
11
<PAGE>
JANUS ASPEN INTERNATIONAL GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS
Shares or
Principal Amount Market Value
- ---------------- ------------
Common Stock - 88.6%
Aerospace and Defense - 1.0%
2,000 Mitsubishi Heavy Industries, Ltd.** $ 15,931
Auto and Truck - 2.8%
580 Bajaj Auto, Ltd. (GDR)*,+ 15,150
1,000 Honda Motor Co.** 20,616
1,000 Yamaha Motor Co., Ltd.** 8,904
44,670
Brewery - 0.2%
300 Erciyas Biracilik Ve Malt Sanayii
(GDR)*,+ 2,842
Broadcasting, Radio and Television - 0.2%
125 Grupo Televisa S.A. de C.V. (GDR) 2,813
Commercial Services - 8.9%
192 Grand Optical Photoservice** 18,709
1,400 Securitas A.B. - Class B** 66,317
823 Sysdeco Group A.S.* 22,445
798 WM-Data A.B. - Class B** 36,001
143,472
Computer Software and Services - 9.1%
799 Getronics N.V. 37,290
5,138 JBA Holdings PLC** 30,820
678 Merkantildata A.S. 7,589
2 NTT Data Communications
Systems Corp.** 67,170
130 TT Tieto Oy - Class B** 4,205
147,074
Electrical Equipment - 2.2%
1,050 UCAR International, Inc.* 35,438
Electronics - 5.3%
925 Lernout & Hauspie Speech
Products N.V.* 25,900
1,000 Omron Corp.** 23,035
109 Samsung Electronics Co., Ltd. (GDR)*,+ 10,437
2,000 Victor Co. of Japan, Ltd.*,** 25,358
84,730
Engineering and Construction - 0.1%
600 New World Infrastructure, Ltd.*,+ 1,148
Entertainment - 0.3%
227 Thorn EMI PLC** 5,335
Financial - Bank Commercial - 2.7%
1,000 Dai-Ichi Kangyo Bank, Ltd.** 19,648
992 Fokus Bank A.S.*,+ 5,348
1,200 HSBC Holdings PLC** 18,158
43,154
Financial - Bank Money Center - 0.9%
1,000 Sumitomo Trust and Banking
Co., Ltd.** 14,131
Financial - Savings/Loan/Thrift - 0.2%
256 Sparbanken Sverige A.B. - Class A** 3,253
Shares or
Principal Amount Market Value
- ---------------- ------------
Food Processing - 1.0%
192 Nutricia Vereenigde Bedrijven N.V. $ 15,508
Forest Production and Paper - 0.1%
1,313 Rottneros A.B.** 1,382
Furniture and Home Appliances - 0.5%
200 Industrie Natuzzi S.p.A. (ADR) 9,075
Holding Companies - Diversified - 5.8%
2,973 Kinnevik A.B. - Class B** 92,768
200 Malbak, Ltd. (GDR)+ 1,386
94,154
Leisure Time - 0.6%
21 Fotolabo S.A.** 8,374
331 TABcorp Holdings, Ltd. 934
9,308
Lodging - 0.1%
25 HFS, Inc.* 2,044
Medical Supplies - 1.7%
688 Elekta Instrument A.B.** 27,520
Mining - 1.9%
396 SGL Carbon A.G.*,**,+ 30,578
Miscellaneous - Distribution and Wholesale - 1.1%
500 Amway Asia Pacific, Ltd. 17,813
Miscellaneous - Manufacturing - 2.2%
2,729 Assa-Abloy A.B. - Class B*,** 25,444
78 Barco N.V. 9,224
34,668
Office and Business Equipment- 3.1%
2,000 Canon, Inc.** 36,198
218 Oce-Van Der Grinten N.V.** 13,240
49,438
Oil and Gas - Domestic - 1.2%
875 YPF Sociedad Anonima S.A. (ADR) 18,922
Pharmaceuticals - 13.3%
425 Astra A.B. - Class A** 16,936
28 Ciba-Geigy Corp. A.G. - Class B** 24,517
61 Gehe A.G.** 30,977
7 Roche Holding A.G.** 55,375
46 Sandoz A.G. - Class R** 42,351
1,000 Sankyo Co., Ltd.** 22,455
925 SmithKline Beecham PLC - Class A** 10,179
200 SmithKline Beecham PLC (ADR)** 11,100
213,890
Publishing and Printing - 0.9%
151 Wolters Kluwer N.V. 14,264
Real Estate - 1.5%
1,000 Mitsubishi Estate Co., Ltd.** 12,485
1,000 Mitsui Fudosan Co.** 12,292
24,777
Restaurant and Food Service - 1.7%
2,660 Wetherspoon (J.D.) PLC** 26,593
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
12
<PAGE>
JANUS ASPEN INTERNATIONAL GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Shares or
Principal Amount Market Value
- ---------------- ------------
Retail - Department Stores - 2.1%
1,000 Isetan Co.** $ 16,454
10,250 PT Matahari Putra Prima 18,063
34,517
Retail - Specialty Line - 1.9%
7,000 Pagnossin S.p.A.* 31,276
Telecommunications - 7.1%
391 Korea Mobile Telecommunications,
Inc.*,+ 17,302
1,465 Millicom International Cellular S.A.* 44,683
1,050 Paging Network, Inc.* 25,595
1,790 Telecom Italia Mobile S.p.A. 3,145
484 Telecomunicacoes Brasileiras S.A. 22,930
113,655
Tobacco - 2.9%
4,500 PT Hanjaya Mandala Sampoerna 46,891
Transportation - Air - 1.8%
40 SwissAir A.G.*,** 29,129
Utilities - Telecommunications - 2.2%
3 DDI Corp.** 23,229
450 Telefonica de Argentina S.A. (ADR) 12,263
35,492
Total Common Stock (cost $1,155,265) 1,424,885
Preferred Stock - 8.2%
Brewery - 1.2%
48,000 Companhia Cervejaria Brahma 19,759
Computer Software and Services - 4.5%
476 SAP A.G.** 71,855
Medical Supplies - 1.2%
210 Fresenius A.G.** 19,868
Publishing and Printing - 0.3%
906 News Corp., Ltd. 4,231
Retail - Specialty Line - 0.5%
406,000 Lojas Americanas S.A. 8,356
Utilities - Electric - 0.5%
27,000 Centrais Electricas Brasileiras S.A. -
Class B 7,224
Total Preferred Stock (cost $101,431) 131,293
Total Investments - 96.8% (total cost $1,256,696) 1,556,178
Cash, Receivables and Other Assets,
net of Liabilities - 3.2% 51,491
Net Assets - 100% $1,607,669
SUMMARY OF INVESTMENTS BY COUNTRY
December 31, 1995
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 2.0% $ 31,184
Australia 0.3% 5,164
Belgium 2.3% 35,124
Brazil 3.7% 58,270
Finland 0.3% 4,205
France 1.2% 18,709
Germany 9.8% 153,279
Hong Kong 1.2% 19,307
India 1.0% 15,150
Indonesia 4.2% 64,955
Italy 2.8% 43,497
Japan 21.6% 335,716
Korea 1.8% 27,739
Luxembourg 2.9% 44,682
Mexico 0.2% 2,813
Netherlands 5.1% 80,302
Norway 2.3% 35,382
South Africa 0.1% 1,386
Sweden 17.3% 269,620
Switzerland 10.2% 159,747
Turkey 0.2% 2,843
United Kingdom 5.4% 84,033
United States++ 4.1% 63,071
Total 100.0% $1,556,178
- --------------------------------------------------------------------------------
++Includes Short-Term Securities
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
13
<PAGE>
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS
Shares or
Principal Amount Market Value
- ---------------- ------------
Common Stock - 76.8%
Aerospace and Defense - 0.5%
70,000 Mitsubishi Heavy Industries, Ltd.** $ 557,588
Auto and Truck - 2.7%
8,350 Bajaj Auto, Ltd. (GDR)*,+ 218,102
61,000 Honda Motor Co.** 1,257,549
4,182 Volkswagen A.G.** 1,395,261
12,000 Yamaha Motor Co., Ltd.** 106,852
2,977,764
Brewery - 0%
2,925 Erciyas Biracilae Malt Sanayii
(GDR)*,+ 27,718
Broadcasting, Radio and Television - 1.0%
1,375 Bell Cablemedia PLC (ADR)* 22,000
38,362 Central European Media
Enterprises, Ltd. 786,421
6,325 Grupo Televisa S.A. de C.V. (GDR) 142,313
2,200 Heritage Media Corp. - Class A* 56,375
3,200 NYNEX CableComms
Group, Inc. (ADR)* 55,600
1,600 TeleWest PLC (ADR)* 38,600
1,101,309
Building Materials - 0.1%
61,500 PT Semen Cibinong 153,481
Chemicals - 1.6%
1,675 Cytec Industries, Inc.* 104,478
35,000 Quimica Minera Chile S.A. (ADR) 1,645,000
1,749,478
Closed End Funds - 0%
6,350 NIS Regional Fund*,+ 34,925
Commercial Services - 4.1%
18,700 AMRE, Inc. 273,488
6,156 Grand Optical Photoservice** 599,851
8,425 Medaphis Corp.* 311,725
16,196 Securitas A.B. - Class B** 767,190
28,760 Sysdeco Group A.S.* 784,355
38,571 WM-Data A.B. - Class B** 1,740,071
4,476,680
Computer Software and Services - 6.5%
32,358 ARK A.S.* 530,509
2,775 Cisco Systems, Inc.* 207,084
400 First Data Corp. 26,750
9,425 General Motors Corp. - Class E 490,100
24,853 Getronics N.V. 1,159,910
73,371 JBA Holdings PLC** 440,116
129,339 Merkantildata A.S. 1,447,657
68 NTT Data Communications
Systems Corp.** 2,283,779
12,831 TT Tieto Oy - Class B** 414,986
7,000,891
Computers - 2.0%
35,092 Frontec A.B. - Class B*,** 1,007,920
19,350 Sun Microsystems, Inc.* 882,844
13,525 Technology Solutions Co.* 263,738
2,154,502
Shares or
Principal Amount Market Value
- ---------------- ------------
Electronics - 2.7%
51,350 Lernout & Hauspie Speech
Products N.V.* $ 1,437,800
42,000 Omron Corp.** 967,480
2,681 Samsung Electronics Co., Ltd.
(GDR)*,+ 256,706
3,100 Sony Corp.** 185,724
5,000 Victor Co. of Japan, Ltd.*,** 63,395
2,911,105
Electronics - Semiconductors - 0.3%
5,000 Rohm Co.** 282,133
Engineering and Construction - 0.5%
10,863 Metra Oy - B** 448,514
22,400 New World Infrastructure, Ltd.*,+ 42,876
491,390
Entertainment - 0.2%
9,108 Thorn EMI PLC** 214,091
Financial - Bank Commercial - 4.3%
8,636 Bangkok Bank Co., Ltd. 104,949
16,000 Dai-Ichi Kangyo Bank, Ltd.** 314,363
3,850 First Interstate Bancorp 525,525
35,050 Fokus Bank A.S.*,+ 188,969
18,400 HSBC Holdings PLC 278,427
27,000 Mitsui Trust and Banking Co., Ltd.** 295,296
15,765 Nordbanken A.B.*,** 272,632
124,225 PT Bank Dagang Nasional Indonesia+ 101,980
28,000 Sakura Bank, Ltd.** 355,014
14,000 Sanwa Bank, Ltd.** 284,553
57,275 United Carolina Bancshares, Inc. 1,933,031
4,654,739
Financial - Bank Money Center - 2.9%
20,400 Chase Manhattan Corp. 1,236,750
10,250 Citicorp 689,313
181,230 Lloyds Bank PLC** 929,801
20,000 Sumitomo Trust and Banking
Co., Ltd.** 282,617
3,138,481
Financial - Savings/Loan/Thrift - 0.1%
6,148 Sparbanken Sverige A.B. - Class A** 78,122
Financial Services - 0.3%
92,500 Grupo Financiero Inbursa S.A.
de C.V. - Class B 270,996
104,000 JCG Holdings, Ltd. 75,996
346,992
Food Processing - 1.5%
5,630 Cultor Oy - Series I** 232,453
7,517 Cultor Oy - Series II** 310,363
5,648 Huhtamaki Group - Series I** 136,031
11,722 Nutricia Vereenigde Bedrijven N.V. 946,805
1,625,652
Forest Production and Paper - 0.1%
89,912 Rottneros A.B.** 94,646
Furniture and Home Appliances - 0.3%
7,225 Industrie Natuzzi S.p.A. (ADR) 327,834
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
14
<PAGE>
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Shares or
Principal Amount Market Value
- ---------------- ------------
Holding Companies - Diversified - 3.9%
126,475 C.G. Smith, Ltd. $ 971,683
180,700 Citic Pacific, Ltd. 618,147
362,000 First Pacific Co. 402,638
48,950 Grupo Carso S.A. de C.V. - Series A1* 266,102
61,641 Kinnevik A.B. - Class B** 1,923,414
3,700 Malbak, Ltd. (GDR)+ 25,634
4,207,618
Household Products - 0.3%
7,900 Amway Japan, Ltd.** 333,372
Iron and Steel - 0.1%
7,766 SSAB Svenskt Stal A.B. - Class A** 79,413
Jewelry, Watches and Gemstones - 0.4%
54,700 Bulgari S.p.A.*,+ 466,716
Leisure Time - 0.5%
1,254 Fotolabo S.A.** 500,078
6,329 TABcorp Holdings, Ltd. 17,857
517,935
Lodging - 1.5%
13,650 HFS, Inc.* 1,115,888
21,925 Renaissance Hotel Group N.V.* 559,088
1,674,976
Medical - Hospital Management Services - 0.4%
9,675 HEALTHSOUTH Corp.* 281,784
46,574 Takare PLC** 129,941
411,725
Medical Supplies - 1.5%
29,800 De Rigo S.p.A. (ADR)* 677,950
18,749 Elekta Instrument A.B.** 749,971
2,425 Gelman Sciences, Inc. 61,231
1,644 Getinge Industrier A.B. - Class B** 74,785
2,997 Scandinavian Mobility
International A.S.*,+ 71,635
1,635,572
Mining - 0.9%
12,983 SGL Carbon A.G.*,**,+ 1,002,513
Miscellaneous - Manufacturing - 2.0%
67,806 Assa-Abloy A.B. - Class B*,** 632,186
6,308 Barco N.V. 745,940
8,188 Orkla A.S. - Class A 405,954
23,325 Waters Corp.* 425,681
2,209,761
Office and Business Equipment - 1.4%
53,000 Canon, Inc.** 959,253
9,242 Oce-Van Der Grinten N.V. 561,306
1,520,559
Oil and Gas - Domestic - 1.5%
5,458 OMV A.G. 472,613
51,575 YPF Sociedad Anonima S.A. (ADR) 1,115,309
1,587,922
Oil and Gas - Equipment and Services - 0.2%
6,825 Petroleum Geo-Services A.S. (ADR)* 170,625
Shares or
Principal Amount Market Value
- ---------------- ------------
Pharmaceuticals - 9.7%
25,367 Astra A.B. - Class A** $ 1,010,881
1,241 Ciba-Geigy Corp. A.G. - Class B** 1,086,615
20,000 Eisai Co., Ltd.** 350,367
3,372 Gehe A.G.** 1,712,390
3,100 Pfizer, Inc. 195,300
8,325 R.P. Scherer Corp.* 408,966
216 Roche Holding A.G.** 1,708,713
1,618 Sandoz A.G. - Class R** 1,489,654
17,000 Sankyo Co., Ltd.** 381,727
61,725 SmithKline Beecham PLC - Class A** 679,283
11,025 SmithKline Beecham PLC (ADR)** 611,888
32,000 Takeda Chemical Industries 526,520
18,000 Yamanouchi Pharmaceutical
Co., Ltd.*,** 386,760
10,549,064
Publishing and Printing - 3.0%
166,269 Arnoldo Mondadori Editore S.p.A. 1,440,753
19,520 Wolters Kluwer N.V. 1,843,893
3,284,646
Real Estate - 1.3%
662,000 Henderson Investment, Ltd. 543,676
41,000 Mitsubishi Estate Co., Ltd.** 511,905
27,000 Mitsui Fudosan Co.** 331,882
1,387,463
Restaurants and Food Services - 0.7%
75,850 Wetherspoon (J.D.) PLC** 758,310
Retail - Apparel - 0.8%
13,300 Fila Holdings S.p.A. (ADR) 605,150
10,000 Gymboree Corp.* 206,250
811,400
Retail - Department Stores - 3.0%
40,800 Credit Saison Co., Ltd.** 971,429
33,000 Daimaru, Inc.** 255,516
28,000 Hankyu Department Store** 414,634
59,000 Isetan Co.** 970,770
351,500 PT Matahari Putra Prima 619,434
3,231,783
Retail - General Merchandise - 0.1%
13,000 Pao De Acucar S.A.+ 133,250
Retail - Grocery - 0.3%
5,000 Ito-Yokado Co., Ltd.** 307,782
Retail - Specialty Line - 2.2%
18,675 General Nutrition Companies, Inc.* 429,525
53,222 Gresvig A.S. 805,453
246,000 Pagnossin S.p.A.* 1,099,135
2,334,113
Telecommunications - 2.4%
9,424 Korea Mobile Telecommunications,
Inc.*,+ 417,012
42,725 Millicom International Cellular S.A.* 1,303,112
33,650 Paging Network, Inc.* 820,219
400 Telecom Argentina S.A. (ADR) 19,050
1,600 Videotron Holdings PLC (ADR)* 20,400
2,579,793
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
15
<PAGE>
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Shares or
Principal Amount Market Value
- ---------------- ------------
Telecommunications Equipment - 0.2%
4,860 Nokia A.B. - Class K $ 191,742
Tobacco - 1.5%
161,000 PT Hanjaya Mandala Sampoerna 1,677,671
Toys - 0.5%
18,925 Mattel, Inc. 581,944
Transportation - Air - 1.6%
2,421 SwissAir A.G.*,** 1,763,017
Utilities - Electric - 0.2%
138,750 Consolidated Electric Power Asia, Ltd. 252,126
900 Consolidated Electric Power Asia,
Ltd. (ADR)+ 16,354
268,480
Utilities - Telecommunications - 3.0%
830,921 CPT Telefonica del Peru S.A. - Class B 1,784,408
89 DDI Corp.** 689,121
44,194 Telecom Italia Mobile S.p.A.* 77,670
27,125 Telefonica de Argentina S.A. (ADR) 739,156
3,290,355
Total Common Stock (cost $71,438,139) 83,369,041
Preferred Stock - 5.1%
Brewery - 0.3%
844,000 Companhia Cervejaria Brahma 347,432
Computer Software and Services - 2.2%
15,675 SAP A.G.** 2,366,243
Medical Supplies - 0.5%
5,710 Fresenius A.G. 540,216
Publishing and Printing - 0.1%
17,324 News Corp., Ltd. 80,911
Retail - Department Stores - 0.2%
9,881,000 Lojas Americanas S.A. 203,375
Retail - Specialty Line - 0.5%
11,489 Fielmann A.G. 591,434
Telecommunications - 1.1%
2,000 Telecomunicacoes Brasileiras S.A. 103
25,831 Telecomunicacoes Brasileiras
S.A. (ADR)+ 1,223,744
1,223,847
Utilities - Electric - 0.2%
753,000 Centrais Electricas Brasileiras S.A. -
Class B 201,482
Total Preferred Stock (cost $4,538,204) 5,554,940
Shares or
Principal Amount Market Value
- ---------------- ------------
U.S. Government Agencies - 7.4%
Federal Farm Credit Bank
$ 5,000,000 5.65%, 1/10/96 $ 4,992,938
Federal Home Loan Bank System
550,000 5.40%, 1/4/96 549,753
Federal Home Loan Mortgage Corp.
500,000 5.75%, 1/2/96 499,920
1,000,000 5.64%, 1/19/96 997,180
1,000,000 5.50%, 1/22/96 996,792
Total U.S. Government Agencies
(amortized cost $8,036,583) 8,036,583
Short-Term Corporate Notes - 12.9%
Ford Motor Credit Corp.
4,000,000 5.75%, 1/2/96 3,999,361
General Electric Capital Corp.
5,000,000 5.63%, 1/2/96 4,999,218
Household Finance Corp.
4,000,000 5.65%, 1/3/96 3,998,744
Texaco, Inc.
1,000,000 5.68%, 1/3/96 999,684
Total Short-Term Corporate Notes
(amortized cost $13,997,007) 13,997,007
Repurchase Agreement - 0.2%
State Street Bank & Trust Co., 5.00%,
183,000 dated 12/29/95, maturing 1/2/96,
to be repurchased at $183,101,
collateralized by $185,000
in U.S. Treasury Notes, 5.625%,
due 1/31/98, value $190,686 183,000
(cost $183,000)
Total Investments - 102.4% (total cost $98,192,933) 111,140,571
Liabilities, net of Cash, Receivables
and Other Assets - (2.4%) (2,577,184)
Net Assets - 100% $108,563,387
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
16
<PAGE>
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
SUMMARY OF INVESTMENTS BY COUNTRY
December 31, 1995
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 1.7% $ 1,873,515
Australia 0.1% 98,768
Austria 0.4% 472,613
Belgium 2.0% 2,183,740
Brazil 1.9% 2,109,387
Chile 1.5% 1,645,000
Denmark 0.1% 71,635
Finland 1.6% 1,734,089
France 0.5% 599,851
Germany 6.8% 7,608,057
Hong Kong 2.0% 2,230,240
India 0.2% 218,102
Indonesia 2.3% 2,552,566
Italy 4.2% 4,695,208
Japan 13.2% 14,627,381
Korea 0.6% 673,718
Mexico 0.6% 679,411
Netherlands 4.1% 4,511,914
Norway 3.9% 4,333,522
Peru 1.6% 1,784,408
Russia 0.0% 34,925
South Africa 0.9% 997,317
Sweden 7.6% 8,431,231
Switzerland 5.9% 6,548,077
Thailand 0.1% 104,949
Turkey 0.0% 27,718
United Kingdom 3.5% 3,900,030
United States++ 32.7% 36,393,199
Total 100.0% $111,140,571
- --------------------------------------------------------------------------------
++Includes Short-Term Securities
JANUS ASPEN BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS
Shares or
Principal Amount Market Value
- ---------------- ------------
Common Stock - 48.3%
Aerospace and Defense - 1.8%
950 Boeing Co. $ 74,456
900 McDonnell Douglas Corp. 82,800
1,100 United Technologies Corp. 104,363
261,619
Broadcasting, Radio and Television - 0.5%
2,550 Heritage Media Corp. - Class A* 65,344
Chemicals - 1.3%
1,375 W.R. Grace & Co. 81,297
3,425 Witco Corp. 100,181
181,478
Shares or
Principal Amount Market Value
- ---------------- ------------
Commercial Services - 3.4%
5,025 Primark Corp.* $ 150,750
7,750 Robert Half International, Inc.* 324,531
475,281
Computer Software and Services - 5.5%
1,000 Computer Sciences Corp.* 70,250
5,555 First Data Corp. 371,491
3,975 Fiserv, Inc.* 119,250
3,925 General Motors Corp. - Class E 204,100
765,091
Electronics - 0.8%
1,725 Pittway Corp. - Class A 116,869
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
17
<PAGE>
JANUS ASPEN BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Shares or
Principal Amount Market Value
- ---------------- ------------
Financial - Bank Commerical - 1.9%
625 First Bank System, Inc. $ 31,016
1,000 First Interstate Bancorp 136,500
1,725 Star Banc Corp. 102,638
270,154
Financial - Bank Money Center - 6.2%
6,525 Bank of New York Co., Inc. 318,094
7,421 Barclays PLC 85,004
4,500 Citicorp 302,625
4,225 First Chicago NBD Corp. 166,887
872,610
Financial - Savings/Loan/Thrift - 1.6%
200 First Savings Bank of Washington
Bancorp, Inc. 2,625
3,950 HFNC Financial Corp.* 51,844
11,950 Klamath First Bancorp, Inc.* 164,312
218,781
Financial Services - 3.2%
2,300 Federal National Mortgage Association 285,487
3,700 Imperial Credit Mortgage
Holdings, Inc.* 49,025
5,775 Investors Financial Services Corp.* 119,831
454,343
Food Processing - 2.4%
2,400 General Mills, Inc. 138,600
2,475 Kellogg Co. 191,194
329,794
Household Products - 0.3%
850 First Brands Corp. 40,481
Insurance - Life - 1.7%
3,300 Reinsurance Group of America 120,863
2,100 UNUM Corp. 115,500
236,363
Insurance - Multiline - 4.9%
3,200 Allmerica Financial Corp.* 86,400
3,000 ITT Hartford Group, Inc.* 145,125
3,950 Meadowbrook Insurance Group 132,325
14,025 Prudential Reinsurance Holdings, Inc. 327,834
691,684
Insurance - Property and Casualty - 1.7%
5,050 PartnerRe, Ltd. 138,875
4,500 Risk Capital Holdings, Inc.* 105,188
244,063
Leisure Time - 1.0%
5,150 Callaway Golf Co. 116,519
725 Coleman Co., Inc.* 25,466
141,985
Machine - Diversified - 1.0%
2,625 AGCO Corp. 133,875
Medical Supplies - 0.2%
525 Luxottica Group S.p.A. (ADR) 30,713
Shares or
Principal Amount Market Value
- ---------------- ------------
Mining - 1.3%
2,820 Freeport McMoRan, Inc. $ 104,340
2,150 Minerals Technologies, Inc. 78,475
182,815
Miscellaneous - Distribution and Wholesale - 1.5%
3,750 Cardinal Health, Inc. 205,312
Packaging and Containers - 0.8%
4,200 Sealed Air Corp.* 118,125
Personal Credit - 0.9%
1,975 Travelers Group, Inc. 124,178
Pharmaceuticals - 2.4%
13 Roche Holding A.G.** 102,839
4,325 SmithKline Beecham PLC (ADR) -
Class A** 240,038
342,877
Publishing - Newspaper - 0.5%
1,200 Reuters Holdings PLC (ADS)** 66,150
Publishing and Printing - 0.3%
489 Wolters Kluwer N.V. 46,192
Telecommunications - 1.2%
725 MFS Communications Co., Inc.* 38,606
5,325 Paging Network, Inc.* 129,797
168,403
Total Common Stock (cost $6,042,095) 6,784,580
Preferred Stock - 3.2%
Computer Software and Services - 2.7%
2,524 SAP A.G.** 381,014
Financial - Bank Money Center - 0.5%
3,000 Citicorp, 6.804% Adjustable Rate
Convertible - Series 18 64,125
Total Preferred Stock (cost $390,170) 445,139
Corporate and Convertible Bonds - 18.2%
Aerospace and Defense - 1.5%
$ 100,000 McDonnell Douglas Corp., 8.625%
senior notes, due 4/1/97 103,500
100,000 Rockwell International Corp., 7.625%
notes, due 2/17/98 103,875
207,375
Auto and Truck - 1.5%
195,000 General Motors Corp., 7.40%
debentures, due 9/1/25 208,162
Beverages - 2.2%
300,000 PepsiCo, Inc., 5.875%
notes, due 6/1/00 301,500
Business Credit - 0.7%
100,000 Heller Financial Corp., 7.75%
notes, due 5/15/97 102,750
Captive Finance - Auto - 0.6%
85,000 Ford Motor Credit Co., 7.875%
debentures, due 1/15/97 87,019
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
18
<PAGE>
JANUS ASPEN BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Shares or
Principal Amount Market Value
- ---------------- ------------
Captive Finance - Utility - 0.6%
$ 80,000 General Electric Capital Corp., 8.00%
notes, due 1/15/98 $ 83,700
Financial - Security Broker - 0.7%
100,000 Merrill Lynch and Co., Inc., 6.375%
notes, due 3/30/99 101,625
Insurance - Life - 0.7%
100,000 American General Finance Corp.,
7.25%, senior notes, due 3/1/98 103,125
Leisure Time - 0.7%
330,000 Coleman Worldwide Corp.,
zero coupon convertible liquid yield
option notes, due 5/27/13 98,587
Personal Credit - 0.7%
100,000 Household Finance Co., 6.25%
notes, due 10/15/97 101,000
Publishing - Newpaper - 3.6%
500,000 Dow Jones & Co., 5.75%
notes, due 12/1/00 501,250
Restaurant and Food Services - 1.8%
250,000 Wendy's International, 7.00%
debentures, due 12/15/25 252,812
Retail - 2.2%
300,000 J.C. Penney & Co., 6.375%
notes, due 9/15/00 306,375
Utilities - Gas - 0.7%
100,000 Consolidated Natural Gas, 5.875%
debentures, due 10/1/98 100,625
Total Corporate and Convertible Bonds
(cost $2,500,787) 2,555,905
Shares or
Principal Amount Market Value
- ---------------- ------------
U.S. Government Agencies - 8.9%
$ 350,000 Federal Home Loan Bank System
5.40%, 1/4/96 $ 349,843
900,000 Federal Home Loan Mortgage Corp.
5.75%, 1/2/96 899,856
Total U.S. Government Agencies
(amortized cost $1,249,699) 1,249,699
U.S. Government Obligations - 21.7%
U.S. Treasury Notes and Bonds:
1,050,000 5.50%, due 11/15/98 1,057,108
450,000 5.625%, due 11/30/00 454,194
500,000 5.875%, due 11/15/05 511,110
900,000 6.875%, due 8/15/25 1,014,633
Total U.S. Government Obligations (cost $2,997,375) 3,037,045
Foreign Bonds - 2.2%
CAD 370,000 Canadian Government Obligation,
8.75% debentures, due 12/1/05 303,047
(cost $298,671)
Repurchase Agreement - 0.8%
State Street Bank & Trust Co., 5.00%,
$ 112,000 dated 12/29/95, maturing 1/2/96,
to be repurchased at $112,062,
collateralized by $115,000 in
U.S. Treasury Notes, 5.625%,
due 1/31/98, value $118,535
(cost $112,000) 112,000
Total Investments - 103.3% (total cost $13,590,797) 14,487,415
Liabilities, net of Cash, Receivables
and Other Assets - (3.3%) (466,055)
Net Assets - 100% $14,021,360
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO SCHEDULE OF INVESTMENTS
Principal Amount Market Value
- ---------------- ------------
Corporate Bonds - 75.1%
Aerospace and Defense - 2.1%
$ 100,000 Alliant Techsystems, Inc., 11.75%
senior subordinated notes,
due 3/1/03 $ 109,875
110,000 International Lease Finance Corp.,
7.00% notes, due 5/15/00 114,125
224,000
Auto and Truck - 3.4%
300,000 General Motors Corp., 7.40%
debentures, due 9/1/25 320,250
50,000 Hertz Corp., 6.625% junior
subordinated notes, due 7/15/00 51,125
371,375
Principal Amount Market Value
- ---------------- ------------
Auto Parts - Original - 0.9%
$ 100,000 Harvard Industries, Inc., 11.125%
senior notes, due 8/1/05 $ 101,250
Beverages - 1.9%
200,000 Coca-Cola Enterprises, Inc., 6.75%
debentures, due 9/15/23 203,250
Broadcasting, Radio and Television - 2.6%
65,000 CF Cable TV, Inc., 11.625%
senior notes, due 2/15/05 71,337
50,000 Marcus Cable Co. L.P., 11.875%
debentures, due 10/1/05 53,812
150,000 Pegasus Media & Communications,
Inc., 12.50% notes, due 7/1/05 153,188
278,337
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
19
<PAGE>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Principal Amount Market Value
- ---------------- ------------
Building Materials - 3.9%
USG Corp.:
$ 205,000 9.25% senior notes, due 9/15/01 $ 218,325
200,000 8.50% senior notes, due 8/1/05 206,500
424,825
Captive Finance - Auto - 5.7%
300,000 Ford Motor Credit Corp., 6.75%
notes, due 5/15/05 309,375
300,000 General Motors Acceptance Corp.,
6.625% notes, 10/15/05 307,125
616,500
Commercial Services - 1.0%
100,000 Primeco, Inc., 12.75% senior
subordinated notes, due 3/1/05 104,250
Electronics - 1.4%
150,000 Selmer Co., Inc., 11.00% senior
subordinated notes, due 5/15/05 148,500
Entertainment - 10.7%
250,000 Act III Broadcasting, Inc., 10.25% senior
subordinated notes, due 12/15/05 255,000
150,000 GNF Corp., 10.625%
first mortgage bonds, due 4/1/03 140,625
250,000 Premier Parks, Inc., 12.00%
senior notes, due 8/15/03 258,125
254,000 Time Warner, Inc., 7.25%
debentures, due 9/1/08 256,223
250,000 United Artist Theatre Circuit, Inc.,
9.30% pass through certificates,
due 7/1/15+ 250,625
1,160,598
Financial - Bank Commercial - 8.0%
500,000 Bank of Boston Co., 6.625%
subordinated notes, due 12/1/05 509,375
100,000 First Union Corp., 7.05%
subordinated notes, due 8/1/05 105,250
250,000 Union Planters Corp., 6.75%
subordinated notes, due 11/1/05 253,750
868,375
Financial - Bank Money Center - 7.0%
250,000 BankAmerica Corp., 6.75%
subordinated notes, due 9/15/05 257,813
500,000 Chemical Banking Corp., 6.50%
subordinated debentures, 1/15/09 502,500
760,313
Financial - Savings/Loan/Thrift - 1.9%
200,000 Anchor Bancorp, Inc., 8.9375%
senior notes, due 7/9/03 208,750
Food Processing - 3.8%
200,000 Borden, Inc., 7.875%
debentures, due 2/15/23 194,250
200,000 Ralston Purina Co., 7.875%
debentures, 6/15/25 218,750
413,000
Principal Amount Market Value
- ---------------- ------------
Food Wholesale - 0.5%
$ 50,000 Dominick's Finer Foods, Inc., 10.875%
senior subordinated notes,
due 5/1/05 $ 53,000
Forest Products and Paper - 0.9%
100,000 Repap New Brunswick, Inc., 9.875%
senior notes, due 7/15/00 100,500
Insurance - Life - 0.7%
75,000 Delphi Financial Group, Inc. 8.00%
senior notes, due 10/1/03 74,531
Medical - Hospital Management Services - 3.0%
Tenet Healthcare Corp.:
200,000 8.625% senior notes, due 12/1/03 209,750
100,000 10.125% senior subordinated
notes, due 3/1/05 110,750
320,500
Oil and Gas - Domestic - 1.6%
Texas Eastern Transmission Corp.:
75,000 10.125% sinking fund debentures,
due 9/1/11 79,688
90,000 10.00% sinking fund debentures,
due 10/1/11 95,512
175,200
Oil and Gas - International - 1.3%
35,000 Tesoro Petroleum, 12.75%
subordinated debentures,
due 3/15/01 35,831
100,000 Texaco Capital, Inc., 7.50%
debentures, due 3/1/43 109,375
145,206
Packaging and Containers - 0.8%
85,000 Stone Container Corp., 11.50% senior
subordinated notes, due 9/1/99 84,894
Publishing and Printing - 1.7%
News America Holdings, Inc.:
100,000 7.75% senior debentures,
due 1/20/24 103,125
75,000 7.70% unsecured senior
debentures, due 10/30/25 76,875
180,000
Retail - Grocery - 4.2%
200,000 Carr-Gottstein Foods Co., 12.00%
senior subordinated notes,
due 11/15/05+ 202,000
255,000 Ralph's Grocery Co., 11.00% senior
subordinated notes, due 6/15/05 252,450
454,450
Retail - Special Line - 0.6%
64,000 Pier 1 Imports, Inc., 11.50%
subordinated debentures,
due 7/15/03 64,800
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
20
<PAGE>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO SCHEDULE OF INVESTMENTS (cont'd)
Principal Amount Market Value
- ---------------- ------------
Telecommunications - 3.4%
$ 100,000 CAI Wireless Systems, Inc., 12.25%
senior notes, due 9/15/02 $ 106,750
100,000 MobileMedia Corp., 9.375% senior
subordinated notes, due 11/1/07 103,250
150,000 TCI Communications, Inc., 8.00%
senior notes, due 8/1/05 160,312
370,312
Transportation-Air - 2.1%
200,000 Delta Air Lines, Inc., 9.00%
debentures, due 5/15/16 229,250
Total Corporate Bonds (cost $7,850,592) 8,135,966
U.S. Government Agencies - 6.9%
150,000 Federal Home Loan Bank System
5.40%, 1/4/96 149,933
600,000 Federal Home Loan Mortgage Corp.
5.75%, 1/2/96 599,904
Total U.S. Government Agencies
(amortized cost $749,837) 749,837
Principal Amount Market Value
- ---------------- ------------
U.S. Government Obligations - 11.7%
U. S. Treasury Notes and Bonds:
$ 450,000 6.50%, due 8/15/05 $ 479,479
700,000 6.875%, due 8/15/25 789,159
Total U.S. Government Obligations (cost $1,197,361) 1,268,638
Foreign Bonds - 4.7%
DEM 450,000 Baden Wurt LKB, 6.50% bank
guaranteed notes, due 9/15/08** 311,165
DEM 300,000 Deutschland Republic, 6.25%
notes, due 1/4/24** 194,400
Total Foreign Bonds (cost $496,733) 505,565
Repurchase Agreement - 1.3%
State Street Bank & Trust Co., 5.00%,
$ 143,000 dated 12/29/95, maturing 1/2/96,
to be repurchased at $143,079,
collateralized by $145,000 in U.S.
Treasury Notes, 5.625%, due 1/31/98,
value $149,457 (cost $143,000) 143,000
Total Investments - 99.7% (total cost $10,437,523) 10,803,006
Cash, Receivables and Other Assets,
net of Liabilities - 0.3% 27,659
Net Assets - 100% $10,830,666
JANUS ASPEN SHORT-TERM BOND PORTFOLIO SCHEDULE OF INVESTMENTS
Principal Amount Market Value
- ---------------- ------------
Corporate Bonds - 54.9%
Aerospace and Defense - 11.0%
International Lease Finance Corp.:
$ 50,000 6.50% notes, due 7/15/97 $ 50,688
150,000 5.75% notes, due 12/15/99 149,625
150,000 Lockheed Martin Corp., 5.875%
notes, due 3/15/98 150,187
350,500
Captive Finance - Auto - 4.7%
150,000 Associates Corp., 5.75%
notes, due 11/15/98 150,375
Computers - 4.8%
150,000 IBM Corp., 6.375%
notes, due 11/1/97 151,875
Financial - Bank Commercial - 17.3%
125,000 BankAmerica Corp., 6.00%
notes, due 7/15/97 125,938
NationsBank Corp.:
50,000 6.625%, notes, due 1/15/98 51,000
100,000 5.375% senior notes, due 4/15/00 98,125
125,000 Norwest Financial, Inc., 5.50%
senior notes, due 4/15/98 125,000
150,000 Provident Bank, 6.125%
senior notes, due 12/15/00 150,187
550,250
Financial - Security Broker - 3.9%
125,000 Dean Witter Discover & Co., 6.00%
global notes, due 3/1/98 125,781
Principal Amount Market Value
- ---------------- ------------
Financial Services - 1.6%
$ 50,000 Transamerica Financial Corp., 6.750%
subordinated notes, due 1/15/98 $ 50,938
Furniture and Home Appliances - 1.4%
42,000 Cort Furniture Rental Corp., 12.00%
senior notes, due 9/1/00 44,888
Personal Credit - 4.7%
150,000 Travelers Group, Inc., 5.75%
notes, due 4/15/98 150,187
Retail - Department Stores - 3.9%
125,000 Wal-Mart Stores, Inc., 5.50%
notes, due 9/15/97 124,844
Utilities - Electric - 1.6%
50,000 Ohio Power Co., 6.75%
first mortgage bonds, due 3/1/98 50,250
Total Corporate Bonds (cost $1,732,083) 1,749,888
U.S. Government Obligations - 46.5%
U.S. Treasury Notes
1,480,000 5.25%, due 7/31/98
(cost $1,474,850) 1,480,636
Total Investments - 101.4% (total cost $3,206,933) 3,230,524
Liabilities, net of Cash, Receivables
and Other Assets - (1.4%) (43,490)
Net Assets - 100% $3,187,034
See Notes to Schedules of Investments
Janus Aspen Series December 31, 1995 Annual Report
21
<PAGE>
JANUS ASPEN MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS
Principal Amount Market Value
- ---------------- ------------
Short-Term Corporate Notes - 18.5%
Ford Motor Credit Corp.
$ 80,000 5.75%, 1/2/96 $ 79,987
General Electric Capital Corp.
80,000 5.68%, 1/3/96 79,975
Household Finance Corp.
80,000 5.70%, 1/2/96 79,987
Texaco, Inc.
80,000 6.68%, 1/3/96 79,975
Total Short-Term Corporate Notes
(amortized cost $319,924) 319,924
U.S. Government Agencies - 78.4%
Federal Farm Credit Bank Note
255,000 5.45%, 1/5/96 254,846
Federal Home Loan Mortgage Corp.
935,000 5.50%, 1/2/96 934,857
Federal National Mortgage Association
170,000 5.51%, 1/19/96 169,532
Total U.S. Government Agencies
(amortized cost $1,359,235) 1,359,235
Principal Amount Market Value
- ---------------- ------------
U.S. Government Obligation - 3.7%
U.S. Treasury Bill
$ 65,000 4.35%, 1/18/96
(amortized cost $64,866) $ 64,866
Total Investments - 100.6% (total cost $1,744,025) 1,744,025
Liabilities, net of Cash, Receivables
and Other Assets - (0.6%) (9,411)
Net Assets - 100% $1,734,614
See Notes to Schedules of Investments
NOTES TO SCHEDULES OF INVESTMENTS
(ADR) - American Depository Receipt
(ADS) - American Depository Shares
(CAD) - Canadian Dollars
(DEM) - German Deutschemarks
(GDR) - Global Depository Receipt
(GDS) - Global Depository Shares
Adjustable Rate Preferred Stock dividend rates are as of 12/31/95
* Non-income producing security
** A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts and/or foreign
currency contracts.
+ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
See Notes to Financial Statements
Janus Aspen Series December 31, 1995 Annual Report
22
<PAGE>
FORWARD FOREIGN CURRENCY CONTRACTS
Open at December 31, 1995
<TABLE>
<CAPTION>
Currency Currency Unrealized
Portfolio Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Janus Aspen Growth Portfolio British Pound 3/14/96 750,000 $ 1,160,325 $ (11,213)
Dutch Guilder 6/13/96 1,000,000 628,022 (4,756)
German Deutschemark 6/13/96 3,975,000 2,787,518 (16,227)
Japanese Yen 1/11/96 9,000,000 87,084 3,696
Japanese Yen 2/8/96 15,500,000 149,985 5,079
Japanese Yen 3/14/96 154,000,000 1,490,251 83,045
Swedish Krona 2/8/96 4,565,000 684,921 (3,028)
$ 6,988,106 $ 56,596
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive British Pound 1/11/96 396,000 $ 613,602 $ 11,643
Growth Portfolio British Pound 1/24/96 1,512,175 2,342,359 74,399
British Pound 2/8/96 122,000 188,905 5,380
Swedish Krona 2/8/96 5,577,000 836,759 (80,648)
$ 3,981,625 $ 10,774
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen International British Pound 1/25/96 30,500 $ 47,241 $ 971
Growth Portfolio Finnish Markka 1/25/96 10,000 2,297 29
French Franc 3/14/96 87,000 17,759 (521)
German Deutschemark 1/25/96 123,000 85,684 1,864
Japanese Yen 1/25/96 1,151,000 11,137 1,225
Japanese Yen 2/8/96 16,900,000 163,532 17,303
Japanese Yen 3/14/96 9,300,000 89,996 3,742
Swedish Krona 1/25/96 464,000 69,693 (7,041)
Swedish Krona 2/8/96 442,000 66,317 (293)
Swedish Krona 2/22/96 585,000 87,684 944
Swiss Franc 5/9/96 36,000 31,640 688
$ 672,980 $ 18,911
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide British Pound 1/25/96 596,000 $ 923,144 $ 18,977
Growth Portfolio Finnish Markka 1/25/96 1,700,000 390,437 4,912
Finnish Markka 5/9/96 1,768,000 407,505 10,709
French Franc 3/14/96 2,550,000 520,514 (12,897)
German Deutschemark 1/25/96 5,136,000 3,577,847 110,296
Japanese Yen 1/25/96 46,783,000 452,687 51,372
Japanese Yen 2/8/96 330,500,000 3,198,069 347,720
Japanese Yen 2/22/96 127,500,000 1,233,773 36,463
Japanese Yen 3/14/96 515,000,000 4,983,631 180,751
Swedish Krona 1/25/96 23,662,000 3,554,026 (164,054)
Swedish Krona 2/8/96 13,735,000 2,060,765 (9,112)
Swiss Franc 5/9/96 1,020,000 896,467 19,482
$22,198,865 $594,619
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio British Pound 3/14/96 58,000 $ 89,732 ($ 867)
German Deutschemark 2/22/96 50,000 34,858 610
German Deutschemark 4/25/96 245,000 171,257 1,642
German Deutschemark 6/13/96 195,000 136,746 (796)
$ 432,593 $ 589
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio German Deutschemark 1/17/96 685,448 $ 477,265 $ 7,566
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
Janus Aspen Series December 31, 1995 Annual Report
23
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Janus Janus Aspen Janus Aspen Janus Aspen Janus Janus Aspen Janus Aspen Janus
As of December 31, 1995 Aspen Aggressive International Worldwide Aspen Flexible Short-Term Aspen
(all number in thousands except Growth Growth Growth Growth Balanced Income Bond Money Market
net asset value per share) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments at cost $111,586 $156,325 $ 1,257 $ 98,193 $ 13,591 $ 10,438 $ 3,207 $ 1,744
Investments at value $125,930 $185,339 $ 1,556 $111,141 $ 14,487 $ 10,803 $ 3,231 $ 1,744
Cash 1 15 48 1 1 1 30 5
Receivables:
Investments sold 1,695 835 20 405 130 -- 147 --
Fund shares sold 617 904 4 816 220 108 5 --
Interest -- -- -- -- 83 223 58 --
Dividends 76 20 4 52 4 -- -- --
From adviser -- -- -- -- -- -- -- 1
Foreign currency contracts 57 11 19 595 1 8 -- --
Total Assets 128,376 187,124 1,651 113,010 14,926 11,143 3,471 1,750
Liabilities:
Payables:
Investments purchased 725 542 30 3,776 824 -- 101 --
Fund shares repurchased 627 505 -- 581 62 294 171 11
Advisory fee 67 111 2 58 9 7 2 --
Accrued expenses 46 55 11 32 10 11 10 4
Total Liabilities 1,465 1,213 43 4,447 905 312 284 15
Net Assets $126,911 $185,911 $ 1,608 $108,563 $ 14,021 $ 10,831 $ 3,187 $ 1,735
Shares Outstanding,
$.001 Par Value (unlimited
shares authorized) 9,436 10,885 135 7,090 1,076 975 318 1,735
Net Asset Value Per Share $ 13.45 $ 17.08 $ 11.95 $ 15.31 $ 13.03 $ 11.11 $ 10.03 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
Janus Aspen Series December 31, 1995 Annual Report
24
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Janus Janus Aspen Janus Aspen Janus Aspen Janus Janus Aspen Janus Aspen Janus
For the year or period Aspen Aggressive International Worldwide Aspen Flexible Short-Term Aspen
ended December 31, 1995 Growth Growth Growth Growth Balanced Income Bond Money Market
(all numbers in thousands) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest $ 813 $ 681 $ 10 $ 530 $ 167 $ 469 $ 182 $ 60
Dividends 747 869 24 617 46 1 -- --
Foreign Tax Withheld (16) (23) (3) (66) -- -- -- --
Total Investment Income 1,544 1,527 31 1,081 213 470 182 60
Expenses:
Advisory fees 505 810 15 403 47 36 18 3
Transfer agent expenses 5 5 2 3 3 2 2 --
Registration fees 20 39 -- 9 1 3 -- 1
System fees 10 10 3 6 4 4 3 1
Custodian fees 42 48 32 94 16 7 4 3
Insurance expenses 2 2 1 2 -- -- 1 --
Audit fees 16 10 7 13 7 6 8 3
Other expenses 6 5 1 3 1 2 1 --
Total Expenses 606 929 61 533 79 60 37 11
Less: Expense offset (19) (24) (3) (16) (4) (4) (1) --
Net expenses 587 905 58 517 75 56 36 11
Less: Excess expense
reimbursement -- -- (13) -- -- -- (18) (6)
Net expenses after
reimbursement 587 905 45 517 75 56 18 5
Net investment income/(loss) 957 622 (14) 564 138 414 164 55
Net Realized and Unrealized
Gain/(Loss) on Investments:
Net realized gain/(loss) from
securities transactions 5,785 4,092 112 2,019 333) 360 67 --
Net realized gain/(loss)
from foreign currency (330) (453) 10 (307) (10) -- -- --
Net realized gain
from futures contracts -- -- -- -- -- -- (31) --
Change in net unrealized
appreciation or
(depreciation) of
investments 13,625 26,665 303 13,136 903 407 54 --
Net gain/(loss)
on investments 19,080 30,304 425 14,848 1,226 767 90 --
Net increase/(decrease)
in net assets resulting
from operations $ 20,037 $ 30,926 $ 411 $ 15,412 $ 1,364 $ 1,181 $ 254 $ 55
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Period May 1, 1995 (inception) to December 31, 1995
See Notes to Financial Statements
Janus Aspen Series December 31, 1995 Annual Report
25
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years or periods ended Janus Aspen Janus Aspen
December 31, 1995 and December 31, 1994 Growth Aggressive
(all numbers in thousands) Portfolio Growth Portfolio
1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 957 $ 383 $ 622 $ 308
Net realized gain/(loss) from investment transactions 5,455 (749) 3,639 723
Change in unrealized net appreciation or (depreciation)
of investments 13,625 702 26,665 2,195
Net increase/(decrease) in net assets resulting from operations 20,037 336 30,926 3,226
Dividends and Distributions:
Net investment income (2,611) (135) (2,143) (301)
Net realized gain from investment transactions -- -- (7) --
Net decrease in net assets from dividends and distributions (2,611) (135) (2,150) (301)
Capital Share Transactions:
Shares sold 70,676 38,467 132,658 39,919
Reinvested dividends and distributions 2,611 135 2,150 301
Shares repurchased (7,351) (2,736) (18,962) (3,841)
Net increase/(decrease) in net assets from
capital share transactions 65,936 35,866 115,846 36,379
Net increase/(decrease) in net assets 83,362 36,067 144,622 39,304
Net Assets:
Beginning of period 43,549 7,482 41,289 1,985
End of Period $ 126,911 $ 43,549 $ 185,911 $ 41,289
Net Assets consist of:
Capital (par value and paid-in surplus)* $ 109,269 $ 43,334 $ 154,058 $ 38,213
Undistributed net investment income/(distribution in excess)* -- 87 -- 24
Undistributed net realized gain/(loss) from investments* 3,241 (648) 2,829 693
Unrealized appreciation/(depreciation) of investments 14,401 776 29,024 2,359
$ 126,911 $ 43,549 $ 185,911 $ 41,289
Transactions in Fund Shares:
Shares sold 5,726 3,640 8,985 3,151
Reinvested distributions 198 13 139 22
Total 5,924 3,653 9,124 3,173
Shares repurchased (608) (258) (1,270) (310)
Net increase/(decrease) 5,316 3,395 7,854 2,863
Shares outstanding beginning of period 4,120 725 3,031 168
Shares outstanding end of period 9,436 4,120 10,885 3,031
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 178,852 $ 48,240 $ 270,419 $ 48,309
Proceeds from Sales of Securities 119,370 30,973 149,381 29,078
Purchases of Long-Term U.S. Government Obligations -- -- -- --
Proceeds from Sales of Long-Term U.S. Government Obligations -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years or periods ended Janus Aspen
December 31, 1995 and December 31, 1994 International
(all numbers in thousands) Growth Portfolio
1995 1994(1)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income/(loss) $ (14) $ (12)
Net realized gain/(loss) from investment transactions 122 (41)
Change in unrealized net appreciation or (depreciation)
of investments 303 15
Net increase/(decrease) in net assets resulting from operations 411 (38)
Dividends and Distributions:
Net investment income (3) --
Net realized gain from investment transactions -- --
Net decrease in net assets from dividends and distributions (3) --
Capital Share Transactions:
Shares sold 3,857 1,936
Reinvested dividends and distributions 3 --
Shares repurchased (4,013) (545)
Net increase/(decrease) in net assets from
capital share transactions (153) 1,391
Net increase/(decrease) in net assets 255 1,353
Net Assets:
Beginning of period 1,353 --
End of Period $ 1,608 $ 1,353
Net Assets consist of:
Capital (par value and paid-in surplus)* $ 1,219 $ 1,372
Undistributed net investment income/(distribution in excess)* 9 --
Undistributed net realized gain/(loss) from investments* 62 (34)
Unrealized appreciation/(depreciation) of investments 318 15
$ 1,608 $ 1,353
Transactions in Fund Shares:
Shares sold 360 196
Reinvested distributions -- --
Total 360 196
Shares repurchased (364) (57)
Net increase/(decrease) (4) 139
Shares outstanding beginning of period 139 --
Shares outstanding end of period 135 139
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 3,144 $ 2,910
Proceeds from Sales of Securities 3,166 2,002
Purchases of Long-Term U.S. Government Obligations -- --
Proceeds from Sales of Long-Term U.S. Government Obligations -- --
- --------------------------------------------------------------------------------------------
</TABLE>
(1) Period May 2, 1994 (inception)to December 31, 1994
(2) Period May 1, 1995 (inception) to December 31, 1995
*See Note 3 in Notes to Financial Statements
See Notes to Financial Statements
Janus Aspen Series December 31, 1995 Annual Report
26
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years or periods ended Janus Aspen Janus Aspen
December 31, 1995 and December 31, 1994 Worldwide Balanced
(all numbers in thousands) Growth Portfolio Portfolio
1995 1994 1995 1994
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 564 $ 114 $ 138 $ 44
Net realized gain/(loss) from investment transactions 1,712 (188) 323 (53)
Change in unrealized net appreciation or (depreciation)
of investments 13,136 (16) 903 (36)
Net increase/(decrease) in net assets resulting from operations 15,412 (90) 1,364 (45)
Dividends and Distributions:
Net investment income (388) (4) (150) (28)
Net realized gain from investment transactions (8) -- -- --
Net decrease in net assets from dividends and distributions (396) (4) (150) (28)
Capital Share Transactions:
Shares sold 62,833 37,343 11,288 3,541
Reinvested dividends and distributions 396 4 150 28
Shares repurchased (7,410) (4,381) (1,784) (880)
Net increase/(decrease) in net assets from
capital share transactions 55,819 32,966 9,654 2,689
Net increase/(decrease) in net assets 70,835 32,872 10,868 2,616
Net Assets:
Beginning of period 37,728 4,856 3,153 537
End of Period $ 108,563 $ 37,728 $ 14,021 $ 3,153
Net Assets consist of:
Capital (par value and paid-in surplus)* $ 93,238 $ 37,419 $ 12,847 $ 3,194
Undistributed net investment income/(distribution in excess)* 445 37 -- 14
Undistributed net realized gain/(loss) from investments* 1,341 (131) 277 (48)
Unrealized appreciation/(depreciation) of investments 13,539 403 897 (7)
$ 108,563 $ 37,728 $ 14,021 $ 3,153
Transactions in Fund Shares:
Shares sold 4,494 3,078 916 325
Reinvested distributions 26 1 12 3
Total 4,520 3,079 928 328
Shares repurchased (555) (362) (148) (82)
Net increase/(decrease) 3,965 2,717 780 246
Shares outstanding beginning of period 3,125 408 296 50
Shares outstanding end of period 7,090 3,125 1,076 296
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 108,274 $ 56,559 $ 13,600 $ 3,034
Proceeds from Sales of Securities 56,240 38,192 6,223 1,978
Purchases of Long-Term U.S. Government Obligations -- -- 4,520 396
Proceeds from Sales of Long-Term U.S. Government Obligations -- -- 1,551 381
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years or periods ended Janus Aspen Janus Aspen Janus Aspen
December 31, 1995 and December 31, 1994 Flexible Short-Term Money Market
(all numbers in thousands) Income Portfolio Bond Portfolio Portfolio
1995 1994 1995 1994 1995(2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 414 $ 90 $ 164 $ 89 $ 55
Net realized gain/(loss) from investment transactions 360 (87) 36 (33) --
Change in unrealized net appreciation or (depreciation)
of investments 407 (30) 54 (26) --
Net increase/(decrease) in net assets resulting from operations 1,181 (27) 254 30 55
Dividends and Distributions:
Net investment income (439) (75) (162) (73) (55)
Net realized gain from investment transactions -- -- -- -- --
Net decrease in net assets from dividends and distributions (439) (75) (162) (73) (55)
Capital Share Transactions:
Shares sold 11,580 3,216 7,515 4,809 12,036
Reinvested dividends and distributions 439 75 162 73 55
Shares repurchased (3,854) (1,803) (7,484) (2,439) (10,356)
Net increase/(decrease) in net assets from
capital share transactions 8,165 1,488 193 2,443 1,735
Net increase/(decrease) in net assets 8,907 1,386 285 2,400 1,735
Net Assets:
Beginning of period 1,924 538 2,902 502 --
End of Period $10,831 $ 1,924 $ 3,187 $ 2,902 $ 1,735
Net Assets consist of:
Capital (par value and paid-in surplus)* $10,193 $ 2,027 $ 3,142 $ 2,949 $ 1,735
Undistributed net investment income/(distribution in excess)* -- 15 16 14 --
Undistributed net realized gain/(loss) from investments* 265 (84) 5 (31) --
Unrealized appreciation/(depreciation) of investments 373 (34) 24 (30) --
$10,831 $ 1,924 $ 3,187 $ 2,902 $ 1,735
Transactions in Fund Shares:
Shares sold 1,097 324 752 487 12,036
Reinvested distributions 41 8 16 7 55
Total 1,138 332 768 494 12,091
Shares repurchased (366) (183) (748) (247) (10,356)
Net increase/(decrease) 772 149 20 247 1,735
Shares outstanding beginning of period 203 54 298 51 --
Shares outstanding end of period 975 203 318 298 1,735
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $17,361 $ 3,367 $ 3,003 $ 2,441 --
Proceeds from Sales of Securities 10,758 2,304 2,762 1,094 --
Purchases of Long-Term U.S. Government Obligations 2,561 -- 8,359 3,419 --
Proceeds from Sales of Long-Term U.S. Government Obligations 1,481 80 8,284 2,513 --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen Series December 31, 1995 Annual Report
27
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
For a share outstanding for each year Growth Aggressive
or period ended December 31. Portfolio Growth Portfolio
1995 1994 1993(1) 1995 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset value, beginning of period $ 10.57 $ 10.32 $10.00 $ 13.62 $ 11.80 $10.00
Income from investment operations
Net investment income/(loss) .28 .09 .03 .24 .11 .01
Net gains or (losses) on securities
(both realized and unrealized) 2.90 .20 .32 3.47 1.82 1.80
Total from investment operations 3.18 .29 .35 3.71 1.93 1.81
Less distributions
Dividends (from net investment income) (.30) (.04) (.03) (.25) (.11) (.01)
Dividends (in excess of net investment income) -- -- -- -- -- --
Total distributions (.30) (.04) (.03) (.25) (.11) (.01)
Net asset value, end of period $ 13.45 $ 10.57 $10.32 $ 17.08 $ 13.62 $11.80
Total return** 30.17% 2.76% 3.50% 27.48% 16.33% 18.05%
Net assets, end of period (in thousands) $126,911 $43,549 $7,482 $185,911 $41,289 $1,985
Average net assets for the period (in thousands) 77,344 26,464 3,191 107,582 14,152 1,091
Ratio of expenses to average net assets* 0.78%(6) 0.88%(5) 0.25%(4) 0.86%(6) 1.05%(5) 0.25%(4)
Ratio of net investment income to average
net assets* 1.24% 1.45% 2.54% 0.58% 2.18% 0.34%
Portfolio turnover rate* 185% 169% 162% 155% 259% 31%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen
For a share outstanding for each year International
or period ended December 31. Growth Portfolio
1995 1994(2)
- --------------------------------------------------------------------------------
Net Asset value, beginning of period $ 9.72 $10.00
Income from investment operations
Net investment income/(loss) .09 (.09)
Net gains or (losses) on securities
(both realized and unrealized) 2.16 (.19)
Total from investment operations 2.25 (.28)
Less distributions
Dividends (from net investment income) (.02) --
Dividends (in excess of net investment income) -- --
Total distributions (.02) --
Net asset value, end of period $11.95 $ 9.72
Total return** 23.15% (2.80%)
Net assets, end of period (in thousands) $1,608 $1,353
Average net assets for the period (in thousands) 1,792 1,421
Ratio of expenses to average net assets* 2.69%(6) 2.50%(5)
Ratio of net investment income to average
net assets* (0.80%) (1.30%)
Portfolio turnover rate* 211% 275%
- --------------------------------------------------------------------------------
(1) Period September 13, 1993 (inception) to December 31, 1993
(2) Period May 2, 1994 (inception) to December 31, 1994
(3) Period May 1, 1995 (inception) to December 31, 1995
(4) The ratio was 2.16%, 5.79%, 2.71%, 7.92%, 5.27% and 5.33%, respectively,
for the Growth, Aggressive Growth, Worldwide Growth, Balanced, Flexible
Income, and Short-Term Bond Portfolios, before waiver of certain fees
and/or voluntary reduction of advisor's fee to the effective rate of the
corresponding Janus Retail Fund.
(5) The ratio was 1.23%, 1.14%, 4.67%, 1.49%, 1.74%, 1.35% and 1.40%,
respectively, for the Growth, Aggressive Growth, International Growth,
Worldwide Growth, Balanced, Flexible Income and Short-Term Bond Portfolios,
before waiver of certain fees and/or voluntary reduction of advisor's fee
to the effective rate of the corresponding Janus Retail Fund.
(6) The ratio was 0.98%, 0.93%, 3.57%, 1.09%, 1.55%, 1.07%, 1.37% and 1.07%,
respectively, for the Growth, Aggressive Growth, International Growth,
Worldwide Growth, Balanced, Flexible Income, Short-Term Bond and Money
Market Portfolios before waiver of certain fees and/or voluntary reduction
of advisor's fee to the effective rate of the corresponding Janus Retail
Fund.
* Annualized for periods of less than one full year.
** Total return not annualized for periods of less than 1 full year.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Janus Aspen Series (the "Trust") was organized as a Delaware Trust on May 20,
1993 and is registered under the Investment Company Act of 1940 (the "1940 Act")
as a no-load, open-end management investment company. The Trust offers eight
portfolios or series of shares with differing investment objectives and
policies. Five portfolios invest primarily in equity securities: Janus Aspen
Growth Portfolio, Janus Aspen Aggressive Growth Portfolio, Janus Aspen
International Growth Portfolio, Janus Aspen Worldwide Growth Portfolio, and
Janus Aspen Balanced Portfolio. Two Portfolios invest primarily in income
producing securities: Janus Aspen Flexible Income Portfolio and Janus Aspen
Short-Term Bond Portfolio. Janus Money Market Portfolio invests in short-term
money market securities. Each Portfolio is diversified as defined in the 1940
Act, with the exception of the Aggressive Growth Portfolio which is
non-diversified.
Shares of the Trust are issued and redeemed only in connection with investment
in and payments under variable annuity contracts and variable life insurance
contracts (collectively "variable insurance contracts"), as well as certain
qualified retirement plans.
Effective May 1, 1995, the Trust issued a new series of shares, the Janus Aspen
Money Market Portfolio, a diversified portfolio investing primarily in
short-term money market securities. Janus Capital Corp. (the Trust's investment
advisor "Janus Capital") invested $10,000 of initial seed capital. Organization
costs for the Portfolio were borne by Janus Capital.
The following accounting policies have been consistently followed by the
Portfolios and are in conformity with accounting principles generally accepted
in the investment company industry.
Janus Aspen Series December 31, 1995 Annual Report
28
<PAGE>
[FINANCIAL HIGHLIGHTS (cont'd)]
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
For a share outstanding for each year Worldwide Balanced
or period ended December 31. Growth Portfolio Portfolio
1995 1994 1993(1) 1995 1994 1993(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset value, beginning of period $ 12.07 $ 11.89 $10.00 $ 10.63 $10.64 $10.00
Income from investment operations
Net investment income/(loss) .11 .04 .02 .17 .15 .08
Net gains or (losses) on securities
(both realized and unrealized) 3.19 .14 1.89 2.45 (.06) .64
Total from investment operations 3.30 .18 1.91 2.62 .09 .72
Less distributions
Dividends (from net investment income) (.06) -- (.01) (.22) (.10) (.08)
Dividends (in excess of net investment income) -- -- (.01) -- -- --
Total distributions (.06) -- (.02) (.22) (.10) (.08)
Net asset value, end of period $ 15.31 $ 12.07 $11.89 $ 13.03 $10.63 $10.64
Total return** 27.37% 1.53% 19.10% 24.79% 0.84% 7.20%
Net assets, end of period (in thousands) $108,563 $37,728 $4,856 $14,021 $3,153 $ 537
Average net assets for the period (in thousands) 59,440 22,896 2,200 5,739 2,336 521
Ratio of expenses to average net assets* 0.90%(6) 1.18%(5) 0.25%(4) 1.37%(6) 1.57%(5) 0.25%(4)
Ratio of net investment income to average
net assets* 0.95% 0.50% 0.84% 2.41% 1.90% 2.69%
Portfolio turnover rate* 113% 217% 57% 149% 158% 126%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
For a share outstanding for each year Flexible Short-Term
or period ended December 31. Income Portfolio Bond Portfolio
1995 1994 1993(1) 1995 1994 1993(1)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset value, beginning of period $ 9.48 $ 9.97 $10.00 $ 9.72 $ 9.93 $10.00
Income from investment operations
Net investment income/(loss) .53 .47 .11 .60 .35 .11
Net gains or (losses) on securities
(both realized and unrealized) 1.70 (.56) (.04) .31 (.26) (.08)
Total from investment operations 2.23 (.09) .07 .91 .09 .03
Less distributions
Dividends (from net investment income) (.60) (.40) (.10) (.60) (.30) (.10)
Dividends (in excess of net investment income) -- -- -- -- -- --
Total distributions (.60) (.40) (.10) (.60) (.30) (.10)
Net asset value, end of period $ 11.11 $ 9.48 $ 9.97 $10.03 $ 9.72 $ 9.93
Total return** 23.86% (0.91%) 0.70% 9.54% 0.92% 0.30%
Net assets, end of period (in thousands) $10,831 $1,924 $ 538 $3,187 $2,902 $ 502
Average net assets for the period (in thousands) 5,556 1,636 497 2,727 1,774 492
Ratio of expenses to average net assets* 1.07%(6) 1.00%(5) 1.00%(4) 0.70%(6) 0.65%(5) 0.65%(4)
Ratio of net investment income to average
net assets* 7.46% 5.49% 3.77% 6.02% 5.00% 3.57%
Portfolio turnover rate* 236% 234% 508% 417% 256% 91%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen
For a share outstanding for each year Money Market
or period ended December 31. Portfolio
1995(3)
- --------------------------------------------------------------------------------
Net Asset value, beginning of period $ 1.00
Income from investment operations
Net investment income/(loss) .04
Net gains or (losses) on securities
(both realized and unrealized) --
Total from investment operations .04
Less distributions
Dividends (from net investment income) (.04)
Dividends (in excess of net investment income) --
Total distributions (.04)
Net asset value, end of period $ 1.00
Total return** 3.63%
Net assets, end of period (in thousands) $1,735
Average net assets for the period (in thousands) $1,543
Ratio of expenses to average net assets* 0.50%(6)
Ratio of net investment income to average
net assets* 5.30%
Portfolio turnover rate* N/A
- --------------------------------------------------------------------------------
(1) Period September 13, 1993 (inception) to December 31, 1993
(2) Period May 2, 1994 (inception) to December 31, 1994
(3) Period May 1, 1995 (inception) to December 31, 1995
(4) The ratio was 2.16%, 5.79%, 2.71%, 7.92%, 5.27% and 5.33%, respectively,
for the Growth, Aggressive Growth, Worldwide Growth, Balanced, Flexible
Income, and Short-Term Bond Portfolios, before waiver of certain fees
and/or voluntary reduction of advisor's fee to the effective rate of the
corresponding Janus Retail Fund.
(5) The ratio was 1.23%, 1.14%, 4.67%, 1.49%, 1.74%, 1.35% and 1.40%,
respectively, for the Growth, Aggressive Growth, International Growth,
Worldwide Growth, Balanced, Flexible Income and Short-Term Bond Portfolios,
before waiver of certain fees and/or voluntary reduction of advisor's fee
to the effective rate of the corresponding Janus Retail Fund.
(6) The ratio was 0.98%, 0.93%, 3.57%, 1.09%, 1.55%, 1.07%, 1.37% and 1.07%,
respectively, for the Growth, Aggressive Growth, International Growth,
Worldwide Growth, Balanced, Flexible Income, Short-Term Bond and Money
Market Portfolios before waiver of certain fees and/or voluntary reduction
of advisor's fee to the effective rate of the corresponding Janus Retail
Fund.
* Annualized for periods of less than one full year.
** Total return not annualized for periods of less than 1 full year.
[NOTES TO FINANCIAL STATEMENTS (cont'd)]
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a principal
securities 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 Trustees. Short-term investments
maturing within 60 days and all money market securities in the Money Market
Portfolio 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
established by the 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. 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 FOREIGN CURRENCY TRANSACTIONS AND FUTURES CONTRACTS
The Portfolios enter into forward foreign currency contracts in order to hedge
their exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to hedge certain firm purchase and sale commitments
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 forward
rate. The gain or loss arising from the difference between the original
Janus Aspen Series December 31, 1995 Annual Report
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (cont'd)
contract and the closing of such contract is included in net realized gain or
loss on foreign currency transactions. Currency gain and loss is also calculated
on payables and receivables that are denominated in foreign currencies. The
payables and receivables are generally related to security transactions and
income.
Futures contracts are marked to market daily and the variation margin is
recorded as an unrealized gain or loss. When a contract is closed, a realized
gain or loss is recorded equal to the difference between the opening and closing
value of the contract. Generally, open forward and futures contracts are marked
to market for federal income tax purposes at fiscal year-end.
Foreign denominated assets and forward currency contracts may involve more risks
than domestic transactions, including: currency risk, political and economic
risk, regulatory risk, and market risk. Risks may arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
The Portfolios may enter into futures contracts and options on securities,
financial indices and foreign currencies; forward contracts; and interest rate
swaps and swap-related products. The Portfolios 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.
ADDITIONAL INVESTMENT RISK
A portion of the Flexible Income Portfolio may be invested in lower rated debt
securities that have a higher risk of default or loss of value due to changes in
the economy or in their respective industry.
ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
DIVIDEND DISTRIBUTIONS AND EXPENSES
Each Portfolio, except the Money Market Portfolio, makes semiannual
distributions of substantially all of its investment income and an annual
distribution of its net realized capital gains, if any. The Money Market
Portfolio makes daily distributions of its income. All dividends and capital
gains distributions from a Portfolio will be automatically reinvested into
additional shares of that Portfolio.
Each Portfolio bears expenses incurred specifically on its behalf as well as a
portion of general expenses based generally on the relative net assets of each
Portfolio.
FEDERAL INCOME TAXES
No provision for income taxes is included in the accompanying financial
statements as the Portfolios intend to distribute to shareholders all taxable
investment income and realized gains and otherwise comply with the Internal
Revenue Code applicable to regulated investment companies.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment advisory fees for each of the five equity Portfolios are payable to
Janus Capital based upon annual rates of 1% of the first $30 million of average
net assets, .75% of the next $270 million of average net assets, .70% of the
next $200 million of average net assets and .65% of the average net assets in
excess of $500 million. However, Janus Capital has voluntarily agreed to reduce
each equity Portfolio's advisory fee to the extent that such fee exceeds the
effective rate of the Janus retail fund corresponding to such Portfolio. The
effective rate is the advisory fee calculated by the corresponding retail fund
as of the last day of each calendar quarter (expressed as an annual rate). Janus
Aspen Growth Portfolio, Janus Aspen Aggressive Growth Portfolio, Janus Aspen
International Growth Portfolio, Janus Aspen Worldwide Growth Portfolio and Janus
Aspen Balanced Portfolio advisory fees are reduced to the effective rates of
Janus Fund, Janus Enterprise Fund, Janus Overseas Fund, Janus Worldwide Fund and
Janus Balanced Fund, respectively. The effective rate for each Portfolio for the
period ended December 31, 1995 was .65%, .75%, .82%, .68% and .81%,
respectively. The income Portfolios are each subject to advisory fees payable to
Janus Capital based upon annual rates of .65% of the first $300 million of
average net assets plus .55% of average net assets in excess of $300 million.
The Money Market Portfolio's advisory fee rate is .25% of average net assets.
Janus Aspen Series December 31, 1995 Annual Report
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS (cont'd)
As discussed in the prospectus, Janus Capital will reduce its fee to a Portfolio
to the extent that the Portfolio's normal operating expenses (exclusive of
brokerage commissions, interest and taxes) exceed 2 1/2% of the first $30
million, 2% of the next $70 million and 1 1/2% of the balance of a Portfolio's
average net assets for a fiscal year. Janus Capital has also agreed to reduce
its fee to the extent that normal operating expenses exceed 1% of the average
net assets of the Flexible Income Portfolio, .65% of the average net assets of
the Short-Term Bond Portfolio and .50% of the average net assets of the Money
Market Portfolio for a fiscal year.
Officers and certain trustees of the Trust are also officers and/or directors of
Janus Capital; however, they receive no compensation from the Trust.
DST Systems Inc. (DST), an affiliate of Janus Capital through a degree of common
ownership, provides accounting systems to the Portfolios. DST Securities Inc., a
wholly owned subsidiary of DST, provides brokerage services on certain portfolio
transactions. Brokerage commissions paid to DST Securities Inc. serve to reduce
custody and other fees and expenses. Brokerage commissions paid, fees reduced,
and the net fees paid to DST for the period ended December 31, 1995 are noted
below:
<TABLE>
<CAPTION>
DST Securities Inc. DST Securities, Inc. DST
Commissions Expense Systems
Paid* Reduction* Costs
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Aspen Growth Portfolio $ 9,498 $ 7,123 $11,305
Janus Aspen Aggressive Growth Portfolio 17,564 13,173 11,645
Janus Aspen International Growth Portfolio 37 28 3,359
Janus Aspen Worldwide Growth Portfolio 4,499 3,374 9,894
Janus Aspen Balanced Portfolio 450 337 4,321
Janus Aspen Flexible Income Portfolio -- -- 4,462
Janus Aspen Short-Term Bond Portfolio -- -- 3,386
Janus Money Market Portfolio -- -- 682
- ---------------------------------------------------------------------------------------------------------
</TABLE>
*The difference between commissions paid to DST Securities, Inc. and expenses
reduced constituted commissions paid to an unaffiliated clearing broker.
3. FEDERAL INCOME TAX
Gains and losses on forward currency contracts and 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. Listed below are
such gains or losses for the period ended December 31, 1995. There were no net
capital loss carryovers as of December 31, 1995. The aggregate cost of
investments and the composition of unrealized appreciation and depreciation of
investments for federal income tax purposes as of December 31, 1995 are also
noted below.
<TABLE>
<CAPTION>
at 12/31/95 at December 31, 1995
---------------- -------------------------------------------------------
Currency Net Capital Loss Federal Tax Unrealized Unrealized Net Appreciation/
Gains/(Losses) Carryovers Cost Appreciation (Depreciation) (Depreciation)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio (243,276) -- 111,589,037 15,112,571 (771,236) 14,341,335
Janus Aspen Aggressive Growth Portfolio (452,160) -- 156,506,824 31,021,242 (2,189,251) 28,831,991
Janus Aspen International Growth Portfolio 26,021 -- 1,258,851 310,465 (13,138) 297,327
Janus Aspen Worldwide Growth Portfolio 232,196 -- 98,250,461 14,042,666 (1,152,556) 12,890,110
Janus Aspen Balanced Portfolio (9,619) -- 13,590,797 934,812 (38,194) 896,618
Janus Aspen Flexible Income Portfolio 7,566 -- 10,437,523 374,561 (9,078) 365,483
Janus Aspen Short-Term Bond Portfolio -- -- 3,207,571 23,915 (962) 22,953
Janus Aspen Money Market Portfolio -- -- 1,744,025 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen Series December 31, 1995 Annual Report
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (cont'd)
Net investment income distributions and capital gains distributions are
determined in acordance 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 December 31, 1995 have been reclassified
among the components of net assets as follows:
<TABLE>
<CAPTION>
Undistributed Net Undistributed Net Paid-In
Investment Income Realized Gains/(Losses) Capital
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Aspen Growth Portfolio 1,566,936 (1,566,936) --
Janus Aspen Aggressive Growth Portfolio 1,497,041 (1,497,041) --
Janus Aspen International Growth Portfolio 26,021 (26,021) --
Janus Aspen Worldwide Growth Portfolio 232,196 (232,196) --
Janus Aspen Balanced Portfolio (2,556) 2,556 --
Janus Aspen Flexible Income Portfolio 11,049 (11,049) --
Janus Aspen Short-Term Bond Portfolio -- -- --
Janus Aspen Money Market Portfolio -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
4. EXPENSES
The Portfolios' expenses may be reduced through expense reduction arrangements.
Those arrangements include the use of broker commissions paid to DST Securities,
Inc. and uninvested cash balances earning interest with the Portfolios'
custodian. The Statements of Operations reflect the total expenses before any
offset, the amount of the offset and the net expenses. The expense ratios listed
in the Financial Highlights reflect total expenses prior to any expense offset.
These changes are part of new disclosure requirements beginning this fiscal
year. Prior years do not reflect these changes. Listed in the table are the
expense ratios before and after offsets.
<TABLE>
<CAPTION>
Expense Ratio Comparisons Expense Ratio Actual DST Securities, Inc. Custody Fee
for Fiscal Year December 31, 1995 Prior to Offsets Expense Ratio Expense Reduction* Reduction**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Janus Aspen Growth Portfolio 0.78% 0.76% $ 7,123 $12,092
Janus Aspen Aggressive Growth Portfolio 0.86% 0.84% 13,173 10,874
Janus Aspen International Growth Portfolio 2.69% 2.50% 28 3,465
Janus Aspen Worldwide Growth Portfolio 0.90% 0.87% 3,374 12,206
Janus Aspen Balanced Portfolio 1.37% 1.30% 337 3,235
Janus Aspen Flexible Income Portfolio 1.07% 1.00% -- 3,681
Janus Aspen Short-Term Bond Portfolio 0.70% 0.65% -- 1,342
Janus Aspen Money Market Portfolio 0.50% 0.50% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*The difference between commissions paid to DST Securities, Inc. and expenses
reduced constituted commissions paid to an unaffiliated clearing broker.
**Interest earned on uninvested cash balances which serves to reduce the
custodian fee.
Janus Aspen Series December 31, 1995 Annual Report
32
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES AND SHAREHOLDERS OF JANUS ASPEN SERIES
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 Aspen Growth Portfolio, Janus
Aspen Aggressive Growth Portfolio, Janus Aspen International Growth Portfolio,
Janus Aspen Worldwide Growth Portfolio, Janus Aspen Balanced Portfolio, Janus
Aspen Flexible Income Portfolio, Janus Aspen Short-Term Bond Portfolio, and
Janus Aspen Money Market Portfolio (constituting the Janus Aspen Series,
hereafter referred to as the "Funds"), at December 31, 1995, the results of each
of their operations for the year then ended, the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian and the application of alternative auditing
procedures for unsettled security transactions, provide a reasonable basis for
the opinion expressed above.
Price Waterhouse LLP
Denver, Colorado
January 30, 1996
Janus Aspen Series December 31, 1995 Annual Report
33
