Janus Aspen Series
1997 Semiannual Report
[Logo] JANUS
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TABLE OF CONTENTS
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JANUS ASPEN SERIES
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Portfolio Managers' Commentary and Schedules of Investments
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Growth Portfolio 2
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Aggressive Growth Portfolio 6
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Capital Appreciation Portfolio 9
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International Growth Portfolio 11
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Worldwide Growth Portfolio 17
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Balanced Portfolio 23
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Equity Income Portfolio 27
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Flexible Income Portfolio 30
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High-Yield Portfolio 33
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Short-Term Bond Portfolio 36
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Money Market Portfolio 38
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Notes to Schedules of Investments 39
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Statements of Asstes and Liabilities 40
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Statements of Operations 40
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Statements of Changes in Net Assets 42
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Financial Highlights 44
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Notes to Financial Statements 47
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<PAGE>
Janus Aspen Growth Portfolio - Portfolio Manager, James P. Craig
Performance Review
Janus Aspen Growth Portfolio gained 13.27% during the first half of the year
ended June 30, 1997, compared to a gain of 20.60% for the S&P 500 Index.(1) Both
returns include reinvested dividends.
During the first half, strong cash flows into equities, corporate share
buybacks, strong earnings growth, and virtually no inflation combined to make a
very strong market. For some time now, stocks have been the preferred vehicle
for retirement investments. Old valuation standards appear to be falling by the
wayside, and frankly, as a traditional business analyst, I am having to adjust
to the new, high PE environment. Using strict valuation rules caused me to sell
positions too early in some cases and not to invest quickly enough in others.
Perhaps we really are in a new equity environment and the business of stock
picking has changed a bit. In the future, I may have to be more flexible.
Because I could not find enough attractive opportunities for much of the last
six months, I let cash accumulate. The Portfolio's cash position and the narrow
breadth of the market were the primary reasons we did not keep pace with the
Index. For most of the first half, only the very largest stocks drove Index
performance. During the first calendar quarter of 1997, the largest 100 stocks
in the S&P 500 Index accounted for approximately 86% of the Index's performance.
It was a market where size and liquidity took precedence over earnings and
business potential.
During the market decline in March and April, I took advantage of lower prices
to put cash to work. I believe we have identified some good opportunities that
will lead to better performance.
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Portfolio Profile June 30, 1997 December 31, 1996
Equities 87.1% 80.3%
Foreign 16.2% 14.4%
Europe 14.5% 12.0%
Top 10 Equities 17.6% 21.5%
Number of Stocks 142 124
Cash & Cash Equivalents 12.9% 19.7%
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Stock Highlights
Two exciting new additions to the Portfolio were Nationwide Financial Services
and Philips Electronics. Nationwide is a newly public company spun off from
Nationwide Insurance. It is one of the top three participants in the rapidly
growing variable annuity market. Philips is headquartered in the Netherlands and
manufactures consumer electronics. The company has successfully undertaken a
major restructuring of its operations under a new CEO. To date, Philips has
closed or divested over 28 divisions, reduced its headquarters staff by 30%, and
still has significant changes pending.
Our financial service companies continued to perform well during the period.
Familiar names such as Citicorp, Bank of New York, and Associates First Capital,
the well-run consumer finance company, were in this group. Disability insurer
UNUM also appreciated.
A sell-off in technology afforded an opportunity to build positions in stable,
high-quality technology companies. These companies are dominant competitors in
their market sectors and include Parametric Technology in engineering and design
software, Microsoft in personal computer operating software, Texas Instruments
in the semiconductor industry, and Lucent Technologies in communications
equipment. In addition, MFS Communications was purchased by WorldCom at a price
well above our cost.
A substantial portion of Portfolio assets remain committed to pharmaceuticals.
Warner-Lambert was added to existing positions in Pfizer, Johnson & Johnson,
SmithKline Beecham, and Bristol Myers Squibb. Warner-Lambert's new drugs for
cholesterol reduction and for diabetes are penetrating the market at an
unprecedented rate, and, along with other products in the pipeline, could make
Warner-Lambert the fastest growing major drug company for the next several
years.
Finally, Dionex, Wal-Mart, and Equifax made significant performance
contributions. Dionex is a maker of specialty laboratory equipment and continues
to streamline operations. Retailing giant Wal-Mart has begun to slow its capital
expenditures by reducing inventories and is also repurchasing its own stock.
Equifax, a business services company, collects and supplies credit information.
Not only is demand for credit information on the rise from cellular service
providers and other telecommunications utilities, but it is also being used by
financial companies to market their services to a defined prospect base.
I took losses in aerospace and manufacturing conglomerate Raychem when margins
compressed, and in IKON, a provider of office supplies and equipment, after the
company had operational difficulties with recent acquisitions.
The Current Outlook
A rebound in small and medium-sized companies occurred during the second quarter
of 1997. So I am hopeful we will return to a market that takes into
consideration business fundamentals and earnings growth and pays less attention
to size and liquidity. Markets that rely too much on arbitrary criteria tend to
be short-lived. Over time, solid business practices and profits determine share
price. By those standards, our companies get high marks, and should do well
going forward.
Thank you for your investment in Janus Aspen Growth Portfolio.
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(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 2
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Janus Aspen Growth Portfolio June 30, 1997 (unaudited)
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Shares or
Principal Amount Market Value
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Common Stock - 87.1%
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Aerospace and Defense - 1.5%
32,525 AlliedSignal, Inc. $ 2,732,100
28,000 Boeing Co. 1,485,750
33,250 United Technologies Corp. 2,759,750
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6,977,600
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Airlines - 0.7%
38,100 Delta Air Lines, Inc. 3,124,200
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Automotive - Truck Parts and Equipment - 0.7%
88,275 Federal-Mogul Corp. 3,089,625
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Beverages - Non-Alcoholic - 0.2%
32,550 Coca-Cola Enterprises, Inc. 748,650
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Broadcast Services and Programming - 0.1%
13,950 Grupo Televisa S.A. (GDR)* 423,731
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Cable Television - 0.6%
9,250 Cablevision Systems Corp.* 499,500
48,100 Comcast Corp. - Class A 1,028,138
100,950 Tele-Communications, Inc. - Class A* 1,501,631
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3,029,269
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Chemicals - Diversified - 4.6%
102,270 BASF A.G. 3,782,596
124,687 BOC Group PLC** 2,168,548
39,825 Cytec Industries, Inc.* 1,488,459
111,200 E.I. du Pont de Nemours and Co. 6,991,700
50,000 Imperial Chemical Industries PLC (ADR) 2,843,750
112,275 Monsanto Co. 4,834,842
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22,109,895
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Chemicals - Specialty - 0.1%
11,025 Praxair, Inc. 617,400
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Commercial Banks - 2.6%
9,475 First Empire State Corp. 3,193,075
19,275 Northern Trust Corp. 932,428
70,000 Signet Banking Corp. 2,520,000
49,075 Star Banc Corp. 2,073,419
83,425 State Street Corp. 3,858,406
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12,577,328
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Commercial Services - 0.2%
12,038 ServiceMaster L.P. 273,101
347 SGS Societe Generale de
Surveillance Holdings S.A. 742,628
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1,015,729
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Computer Services - 1.8%
121,725 Computer Sciences Corp.* 8,779,416
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Computer Software - 3.2%
80,000 Cadence Design Systems, Inc.* 2,680,000
35,425 Microsoft Corp.* 4,476,835
191,300 Parametric Technology Corp.* 8,142,206
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15,299,041
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Computers - Micro - 0.3%
14,000 Compaq Computer Corp.* 1,389,500
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Consumer Products - 1.0%
206,175 Gibson Greetings, Inc.* 4,638,937
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Containers - Paper and Plastic - 0.3%
31,575 Sealed Air Corp.* 1,499,812
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Cosmetics and Toiletries - 1.1%
35,600 Avon Products, Inc. 2,512,025
25,000 Colgate-Palmolive Co. 1,631,250
28,706 Rhone-Poulenc - Class A** 1,173,482
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5,316,757
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Cruise Lines - 1.1%
77,025 Carnival Corp. - Class A $ 3,177,281
60,375 Royal Caribbean Cruises, Ltd. 2,109,352
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5,286,633
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Data Processing and Management - 1.1%
122,200 First Data Corp. 5,369,162
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Diversified Financial Services - 1.1%
91,425 Associates First Capital Corp. - Class A 5,074,088
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Diversified Operations - 5.8%
111,100 General Electric Co. 7,263,162
55,775 Minnesota Mining and Manufacturing Co. 5,689,050
264,220 Rentokil Initial PLC** 927,854
283,890 Siebe PLC** 4,805,103
20,000 Tyco International, Ltd. 1,391,250
30,925 Unilever N.V. - N.Y. Shares 6,741,650
41,150 Westinghouse Electric Corp. 951,594
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27,769,663
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Electronic Components - 2.9%
138,742 Philips Electronics N.V. 9,956,059
47,475 Texas Instruments, Inc. 3,990,867
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13,946,926
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Electronic Security Devices - 0.3%
30,675 Pittway Corp. - Class A 1,526,081
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Finance - Consumer Loans - 0.7%
93,029 Lloyds TSB Group PLC** 953,741
19,775 Student Loan Marketing Association 2,511,425
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3,465,166
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Finance - Investment Banker/Broker - 0.8%
91,475 Charles Schwab Corp. 3,721,889
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Finance - Other Services - 0.8%
101,850 Equifax, Inc. 3,787,547
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Food - Diversified - 0.7%
50,000 ConAgra, Inc. 3,206,250
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Food - Retail - 0.5%
50,925 Safeway, Inc.* 2,348,916
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Food - Wholesale - 0.5%
88,800 J.P. Foodservice, Inc.* 2,547,450
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Hotels and Motels - 0.1%
42,000 Extended Stay America, Inc.* 661,500
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Human Resources - 0.7%
25,000 Manpower, Inc. 1,112,500
47,800 Robert Half International, Inc.* 2,249,588
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3,362,088
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Instruments - Controls - 0.5%
41,525 Parker Hannifin Corp. 2,520,048
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Instruments - Scientific - 1.6%
134,225 Dionex Corp.* 6,879,031
8,175 Perkin-Elmer Corp. 650,424
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7,529,455
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Life and Health Insurance - 5.2%
51,575 AFLAC, Inc. 2,436,919
382,350 Nationwide Financial Services, Inc. - Class A* 10,156,172
30,000 Protective Life Corp. 1,507,500
25,075 UICI* 739,712
175,500 UNUM Corp. 7,371,000
86,250 Western National Corp. 2,312,578
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24,523,881
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Medical - Biomedical and Genetic - 0.2%
25,800 Immunex Corp.* 935,250
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See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 3
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Janus Aspen Growth Portfolio June 30, 1997 (unaudited)
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Shares or
Principal Amount Market Value
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Medical - Drugs - 5.9%
29,675 American Home Products Corp. $ 2,270,138
66,825 Bristol-Myers Squibb Co. 5,412,825
55,762 Glaxo Wellcome PLC** 1,150,778
46,075 Pfizer, Inc. 5,505,962
296,000 SmithKline Beecham PLC** 5,446,056
64,875 Warner-Lambert Co. 8,060,719
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27,846,478
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Medical - HMO - 1.5%
137,250 United Healthcare Corp. 7,137,000
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Medical - Hospitals - 0.3%
42,775 Tenet Healthcare Corp.* 1,264,536
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Medical - Products - 1.9%
26,375 Baxter International, Inc. 1,378,094
40,725 Fresenius Medical Care A.G. (ADR)* 1,186,115
104,375 Johnson & Johnson 6,719,141
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9,283,350
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Medical - Wholesale Drug Distribution - 0.6%
53,625 Cardinal Health, Inc. 3,070,031
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Medical Instruments - 0.5%
13,150 Boston Scientific Corp.* 807,903
17,950 Guidant Corp. 1,525,750
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2,333,653
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Medical Labs and Testing Services - 0.2%
51,400 Covance, Inc.* 992,662
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Metal - Aluminum - 0.8%
51,100 Reynolds Metals Co. 3,640,875
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Money Center Banks - 7.1%
208,525 Bank of New York Co., Inc. 9,070,838
65,200 BankAmerica Corp. 4,209,475
261,502 Barclays PLC** 5,187,796
64,825 Citicorp 7,815,464
30,614 Deutsche Bank A.G. 1,790,247
123,084 ING Groep N.V. 5,685,182
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33,759,002
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Multilevel Direct Selling - 0.2%
21,175 Amway Asia Pacific, Ltd. 923,759
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Multimedia - 0.3%
50,425 Meredith Corp. 1,462,325
1 Viacom, Inc. - Class B* 30
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1,462,355
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Networking Products - 0.4%
30,675 Cisco Systems, Inc.* 2,059,059
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Office Automation and Equipment - 0.8%
45,675 Xerox Corp. 3,602,616
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Oil - Field Services - 1.0%
15,000 Halliburton Co. 1,188,750
29,175 Schlumberger, Ltd. 3,646,875
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4,835,625
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Oil and Gas Drilling - 1.6%
50,000 Global Marine, Inc.* 1,162,500
75,000 Noble Drilling Corp.* 1,692,188
146,400 Santa Fe International Corp.* 4,977,600
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7,832,288
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Oil Companies - Exploration and Production - 2.6%
63,900 Burlington Resources, Inc. $ 2,819,587
60,000 Enron Oil & Gas Co. 1,087,500
250,000 Gulf Canada Resources, Ltd.* 2,078,125
35,000 Noble Affiliates, Inc. 1,354,062
30,000 Renaissance Energy, Ltd.* 835,050
100,000 Union Pacific Resources Group, Inc. 2,487,500
58,050 YPF S.A. (ADR) 1,785,038
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12,446,862
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Oil Companies - Integrated - 3.6%
300,000 British Petroleum Co., PLC** 3,727,200
20,000 Mobil Corp. 1,397,500
64,500 Royal Dutch Petroleum Co. - N.Y. Shares 3,507,187
50,000 Texaco, Inc. 5,437,500
81,000 Unocal Corp. 3,143,813
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17,213,200
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Oil Field Machinery and Equipment - 1.9%
50,000 Baker Hughes, Inc. 1,934,375
120,000 Smith International, Inc.* 7,290,000
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9,224,375
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Pharmacy Services - 0.2%
32,750 Omnicare, Inc. 1,027,531
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Property and Casualty Insurance - 0.6%
166,000 Sumitomo Marine & Fire Insurance Co. 1,363,628
112,000 Tokio Marine & Fire Insurance Co. 1,468,146
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2,831,774
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Protection - Safety - 0.3%
100,000 Lo-Jack Corp.* 1,437,500
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Publishing - Books - 1.3%
51,469 Wolters Kluwer N.V. 6,278,239
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Retail - Building Products - 0.4%
36,425 Fastenal Co. 1,784,825
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Retail - Consumer Electronics - 0.4%
30,100 Tandy Corp. 1,685,600
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Retail - Discount - 1.0%
16,975 TJX Companies, Inc. 447,716
120,000 Wal-Mart Stores, Inc. 4,057,500
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4,505,216
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Retail - Diversified - 0.1%
7,993 Vendex International N.V. 438,539
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Retail - Hypermarkets - 0.9%
133,275 Costco Companies, Inc.* 4,381,416
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Retail - Major Department Stores - 1.7%
116,675 Dayton Hudson Corp. 6,205,652
33,675 J.C. Penney Co., Inc. 1,757,414
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7,963,066
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Retail - Restaurants - 0.4%
76,350 Wendy's International, Inc. 1,980,328
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Rubber - Tires - 0.2%
402,365 Pirelli S.p.A. 1,013,302
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Savings/Loan/Thrifts - 0.2%
10,000 Catskill Financial Corp. 155,000
27,400 Long Island Bancorp, Inc. 994,963
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1,149,963
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Special Purpose Banks - 0.3%
15,216 Dexia France** 1,482,481
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See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 4
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Janus Aspen Growth Portfolio June 30, 1997 (unaudited)
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Shares or
Principal Amount Market Value
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Telecommunication Equipment - 1.9%
37,675 ECI Telecommunications, Ltd. $ 1,120,831
69,150 Lucent Technologies, Inc. 4,983,122
32,075 Northern Telecom, Ltd. 2,918,825
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9,022,778
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Telecommunication Services - 0.2%
28,300 Telefonaktiebolaget L.M. Ericsson (ADR) - Class B 1,114,312
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Telephone - Local - 0.5%
70,300 Cincinnati Bell, Inc. 2,214,450
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Television - 0.6%
50,725 Univision Communications, Inc.* 1,984,616
24,100 Young Broadcasting Corp. - Class A* 783,250
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2,767,866
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Tobacco - 0.4%
40,300 Philip Morris Companies, Inc. 1,788,312
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Transportation - Truck - 0.7%
194,350 Consolidated Freightways Corp.* 3,182,481
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Total Common Stock (cost $355,688,533) 415,196,588
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Short-Term Corporate Notes - 6.3%
$10,000,000 AVCO Financial Service
5.58%, 8/26/97 9,913,200
10,000,000 Deutsche Bank A.G.
5.48%, 7/7/97 9,990,867
10,000,000 NationsBank Corp.
5.57%, 8/19/97 9,924,186
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Total Short-Term Corporate Notes (amortized cost $29,828,253) 29,828,253
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U. S. Government Agencies - 8.6%
30,000,000 Fannie Mae
5.41%, 7/24/97 29,896,308
11,000,000 Federal Home Loan Mortgage Corp.
5.75%, 7/1/97 11,000,000
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Total U. S. Government Agencies (amortized cost $40,896,308) 40,896,308
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Total Investments (total cost $426,413,094) - 102.0% 485,921,149
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Liabilities, net of Cash, Receivables, and Other Assets - (2.0%) (9,383,664)
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Net Assets - 100% $476,537,485
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Summary of Investments by Country
June 30, 1997
Country % of Investment Securities Market Value
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Argentina 0.4% $1,785,038
Canada 0.2% 835,050
France 0.5% 2,655,963
Germany 1.4% 6,758,958
Hong Kong 0.2% 923,759
Israel 0.2% 1,120,831
Italy 0.2% 1,013,302
Japan 0.6% 2,831,774
Mexico 0.1% 423,731
Netherlands 6.7% 32,606,855
Sweden 0.2% 1,114,313
Switzerland 0.2% 742,627
United Kingdom 5.0% 24,367,076
United States++ 84.1% 408,741,872
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Total 100.0% $485,921,149
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++ Includes Short-Term Securities (69.6% excluding Short-Term Securities)
Forward Currency Contracts
Open at June 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
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British Pound 7/24/97 3,700,000 $6,154,580 ($92,500)
British Pound 7/28/97 2,000,000 3,326,400 (91,882)
British Pound 8/20/97 1,900,000 3,157,800 (128,621)
British Pound 11/24/97 4,150,000 6,876,550 (91,733)
French Franc 10/10/97 5,300,000 908,172 22,551
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Total $20,423,502 ($382,185)
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See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 5
<PAGE>
Janus Aspen Aggressive Growth Portfolio - Portfolio Manager, James P. Goff
Performance Review
The Janus Aspen Aggressive Growth Portfolio gained 2.63% for the first half of
the year ended June 30, 1997. The Standard & Poor's MidCap 400 Index gained
13.04%(1). All returns include reinvested dividends.
We lagged the Index primarily because the larger capitalization stocks in the
Index outperformed the broad mid-cap universe during the first three months of
the period. The stocks of larger companies have dominated their smaller
counterparts for the better part of a year now. Numerous factors have
contributed to the relative dominance of larger stocks, including a long stretch
of above average corporate earnings, an affinity among investors' for liquidity,
and "hot" money chasing a limited number of stocks in the indexing phenomenon.
Stocks with high price-to-earnings multiples (PEs) were especially hard hit
earlier in the year, even when they met or exceeded earnings estimates. Although
our companies are actually thriving on a fundamental basis, their prices came
down anyway.
Finally, we had several disappointments during the period, including Paging
Network, Global DirectMail, and Viking Office Supplies. Paging Network was sold
at a loss when unexpectedly large investments in its new paging product,
VoiceNow, put our earnings estimates in jeopardy. Direct marketers Global
DirectMail and Viking Office Products were sold at losses when increased
competition in their catalogue businesses caused them to miss earnings
estimates.
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Portfolio Profile June 30, 1997 December 31, 1996
Equities 93.7% 94.4%
Foreign 14.4% 14.7%
Number of Stocks 75 59
Top 10 Equities 42.5% 45.8%
Cash & Cash Equivalents 6.3% 5.6%
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Stock Highlights
During the period, I remained true to my investment discipline, and while we
were frustrated in the early going, my patience recently began to pay off.
Fastenal, Papa John's, Premier Parks, Omnicare, and the Apollo Group saw their
prices decline substantially as the year began, despite strong underlying
earnings growth. However, all five posted strong gains in the second quarter,
recouping their previous losses, as the turnaround in market psychology started
to reward companies with solid fundamentals and rapid earnings growth. Papa
John's International serves as a good example of the change in market
psychology. Papa John's is a well-run pizza delivery chain which prides itself
on quality products and service. The company has reported quarterly earnings
gains of 56% and 48%, nicely exceeding our expectations for long-term growth of
35% and Wall Street's estimates of 30%. In spite of its strong outperformance,
the stock had declined 25% earlier in the year. But during the second quarter it
recouped its losses.
Regal Cinemas and Sofamor Danek Group are new additions to the Portfolio. Regal
is the sixth largest operator of movie theaters in the U.S., and boasts the best
levels of profitability and growth in the industry by a wide margin. Regal's
management has proven itself highly capable in growing the company rapidly, both
internally and through acquisitions, while maintaining superior levels of
profitability. The company enjoys tremendous economies of scale as its
multiplexes have on average at least eight movie screens each, the highest in
the industry. Sofamor Danek dominates the market for surgical spinal implants.
The FDA recently expanded its approval for the company's products, allowing for
increased surgical applications. Additionally, new products, including a
minimally invasive camera, should help boost future revenues.
In general, restaurants and wireless communications, two areas where the
Portfolio had concentrations, have drastically underperformed the general market
for some time. Our three restaurant/pub companies achieved average earnings
gains of 48% in the first quarter, but underperformed due to the negative
perception of the restaurant group. With the exception of Paging Network, which
was mentioned earlier, our wireless stocks also beat earnings estimates, but
their stock prices were off due to poor market perception, not to a any
deterioration in fundamentals. CommNet Cellular, serves as a good example. The
stock price soared from depressed levels following Blackstone Capital's
acquisition bid, which reaffirmed our belief that there are tremendous pockets
of value in the cellular industry.
Portfolio Strategy
Although the Portfolio recorded good results during the second quarter, we still
have a ways to go. I am not pleased with the year-to-date results. But I believe
that we are only beginning to be rewarded for our patience, and that we have yet
to be paid for our investments' full potential. I remain enthusiastic about the
current Portfolio's prospects, and continue to search for compelling investment
ideas where our research can truly add value.
Thank you for your continued investment in Janus Aspen Aggressive Growth
Portfolio.
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(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 6
<PAGE>
Janus Aspen Aggressive Growth Portfolio June 30, 1997 (unaudited)
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Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 93.3%
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Advertising Sales - 1.4%
152,775 Outdoor Systems, Inc.* $ 5,843,644
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Cellular Telecommunications - 1.4%
22,250 CommNet Cellular, Inc.* 773,188
545,421 PriCellular Corp. - Class A* 5,011,055
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5,784,243
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Chemicals - Specialty - 0.5%
55,875 Minerals Technologies, Inc. 2,095,313
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Commercial Banks - 0.9%
7,725 First Empire State Corp. 2,603,325
2,725 Northern Trust Corp. 131,822
31,700 Regions Financial Corp. 1,002,513
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3,737,660
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Commercial Services - 2.6%
245,237 Paychex, Inc. 9,319,006
126,500 Profit Recovery Group International* 1,755,188
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11,074,194
- --------------------------------------------------------------------------------
Computers - Mainframe - 0.1%
49,675 Amdahl Corp.* 434,656
- --------------------------------------------------------------------------------
Containers - Paper and Plastic - 1.8%
160,250 Sealed Air Corp.* 7,611,875
- --------------------------------------------------------------------------------
Cruise Lines - 0.8%
103,450 Royal Caribbean Cruises, Ltd. 3,614,284
- --------------------------------------------------------------------------------
Dental Supplies and Equipment - 0%
2,750 Sybron International Corp.* 109,656
- --------------------------------------------------------------------------------
Direct Marketing - 0.1%
10,150 Catalina Marketing Corp.* 488,469
- --------------------------------------------------------------------------------
Diversified Financial Services - 0.4%
28,900 Associates First Capital Corp. - Class A 1,603,950
- --------------------------------------------------------------------------------
Diversified Operations - 0.4%
440,238 Rentokil Initial PLC** 1,545,972
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.5%
142,875 DepoTech Corp.* 1,946,672
- --------------------------------------------------------------------------------
Electric Products - 2.2%
329,050 Littelfuse, Inc.* 9,295,663
- --------------------------------------------------------------------------------
Electronic Components - 0.6%
119,450 Methode Electronics - Class A 2,374,069
- --------------------------------------------------------------------------------
Finance - Auto Loans - 0.2%
83,125 Credit Acceptance Corp.* 1,070,234
- --------------------------------------------------------------------------------
Finance - Consumer Loans - 0.2%
7,450 Household International, Inc. 874,909
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 1.0%
100,700 Charles Schwab Corp. 4,097,231
- --------------------------------------------------------------------------------
Finance - Leasing Companies - 0.1%
6,750 Finova Group, Inc. 516,375
- --------------------------------------------------------------------------------
Finance - Mortgage Loan Banker - 0.2%
25,925 Federal Agricultural Mortgage Corp.* 939,781
- --------------------------------------------------------------------------------
Finance - Other Services - 1.1%
24,700 HealthCare Financial Partners, Inc.* 503,263
219,725 Medallion Financial Corp. 4,202,241
- --------------------------------------------------------------------------------
4,705,504
- --------------------------------------------------------------------------------
Food - Retail - 0.8%
63,575 Quality Food Centers, Inc. 2,415,850
17,925 Safeway, Inc.* 826,791
- --------------------------------------------------------------------------------
3,242,641
- --------------------------------------------------------------------------------
Food - Wholesale - 0.5%
71,600 J.P. Foodservice, Inc.* $ 2,054,025
- --------------------------------------------------------------------------------
Golf - 1.4%
260,525 Family Golf Centers, Inc.* 5,992,075
- --------------------------------------------------------------------------------
Hotels and Motels - 4.0%
62,925 Choice Hotels International, Inc.* 1,065,792
276,675 HFS, Inc.* 16,047,150
- --------------------------------------------------------------------------------
17,112,942
- --------------------------------------------------------------------------------
Human Resources - 0.1%
4,800 Robert Half International, Inc.* 225,900
- --------------------------------------------------------------------------------
Independent Power Producer - 1.5%
262,125 Trigen Energy Corp. 6,553,125
- --------------------------------------------------------------------------------
Life and Health Insurance - 4.0%
16,150 AFLAC, Inc. 763,088
119,450 Hartford Life, Inc. - Class A* 4,479,375
20,825 Nationwide Financial Services, Inc. - Class A* 553,164
155,200 Protective Life Corp. 7,798,800
71,050 UICI* 2,095,975
45,200 Western National Corp. 1,211,925
- --------------------------------------------------------------------------------
16,902,327
- --------------------------------------------------------------------------------
Machine Tools and Related Products - 0.2%
34,075 JLK Direct Distribution, Inc. - Class A* 873,172
- --------------------------------------------------------------------------------
Medical - Drugs - 3.1%
203,075 Teva Pharmaceutical Industries, Ltd. 13,149,106
- --------------------------------------------------------------------------------
Medical Instruments - 3.1%
287,000 Sofamor Danek Group, Inc.* 13,130,250
- --------------------------------------------------------------------------------
Multi-Line Insurance - 0.3%
19,875 Travelers Group, Inc. 1,253,367
- --------------------------------------------------------------------------------
Pharmacy Services - 2.3%
317,900 Omnicare, Inc. 9,974,113
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 1.0%
48,200 Progressive Corp. 4,193,400
- --------------------------------------------------------------------------------
Publishing - Newspapers - 0.7%
40,525 Central Newspapers, Inc. - Class A 2,902,603
- --------------------------------------------------------------------------------
Radio - 5.3%
188,625 Clear Channel Communications, Inc.* 11,600,438
158,625 Evergreen Media Corp. - Class A 7,078,641
71,725 Heftel Broadcasting Corp.* 3,962,806
- --------------------------------------------------------------------------------
22,641,885
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 2.9%
670,500 Insignia Financial Group, Inc. - Class A* 12,152,812
- --------------------------------------------------------------------------------
Rental Auto/Equipment - 1.2%
211,650 Coinmach Laundry Corp.* 5,026,687
- --------------------------------------------------------------------------------
Resorts and Theme Parks - 1.4%
161,975 Premier Parks, Inc.* 5,972,828
- --------------------------------------------------------------------------------
Retail - Auto Parts - 0.9%
102,500 O'Reilly Automotive, Inc.* 3,946,250
- --------------------------------------------------------------------------------
Retail - Building Products - 7.8%
680,175 Fastenal Co. 33,328,575
- --------------------------------------------------------------------------------
Retail - Catalog Shopping - 2.7%
332,575 Barnett, Inc.* 8,148,087
81,350 MSC Industrial Direct Co., Inc. - Class A* 3,264,169
- --------------------------------------------------------------------------------
11,412,256
- --------------------------------------------------------------------------------
Retail - Diversified - 4.1%
588,070 Petco Animal Supplies, Inc.* 17,642,100
- --------------------------------------------------------------------------------
Retail - Hypermarkets - 0.2%
20,800 Costco Companies, Inc.* 683,800
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 7
<PAGE>
Janus Aspen Aggressive Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Retail - Pubs - 5.2%
990,915 Wetherspoon (J.D.) PLC**,+ $ 22,181,478
- --------------------------------------------------------------------------------
Retail - Regional Department Stores - 0.5%
43,560 Fred Meyer, Inc.* 2,251,507
- --------------------------------------------------------------------------------
Retail - Restaurants - 9.8%
474,280 Papa John's International, Inc.* 17,429,790
2,315,964 PizzaExpress PLC**,+ 24,244,546
- --------------------------------------------------------------------------------
41,674,336
- --------------------------------------------------------------------------------
Retirement and Aged Care - 1.6%
121,325 Karrington Health, Inc.* 1,819,875
145,750 Sunrise Assisted Living, Inc.* 5,101,250
- --------------------------------------------------------------------------------
6,921,125
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 0.1%
8,950 TCF Financial Corp. 441,906
- --------------------------------------------------------------------------------
Schools - 2.3%
283,575 Apollo Group, Inc. - Class A* 9,996,019
- --------------------------------------------------------------------------------
Telephone - Local - 0.1%
8,100 Cincinnati Bell, Inc. 255,150
- --------------------------------------------------------------------------------
Television - 0.8%
92,250 Univision Communications, Inc.* 3,609,281
- --------------------------------------------------------------------------------
Theaters - 1.5%
192,725 Regal Cinemas, Inc.* 6,359,925
- --------------------------------------------------------------------------------
Transportation - Railroad - 2.6%
301,850 Wisconsin Central Transportation Corp.* 11,243,912
- --------------------------------------------------------------------------------
Vitamins and Nutrition Products - 0.2%
60,325 Weider Nutrition International, Inc. 957,659
- --------------------------------------------------------------------------------
Water Treatment Services - 2.3%
222,775 Culligan Water Technologies, Inc.* 9,969,181
- --------------------------------------------------------------------------------
X-Ray Equipment - 0.3%
25,000 Dentsply International, Inc. 1,225,000
- --------------------------------------------------------------------------------
Total Common Stock (cost $306,153,364) 397,217,072
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 2.3%
$10,000,000 Deutsch Bank A.G.
5.48%, 7/7/97 (amoritized cost $9,990,867) 9,990,867
- --------------------------------------------------------------------------------
U.S. Government Agencies - 4.6%
Federal Home Loan Mortgage Corp.:
9,760,000 5.75%, 7/1/97 9,760,000
10,000,000 6.01%, 8/6/97 9,945,100
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $19,705,100) 19,705,100
- --------------------------------------------------------------------------------
Warrants - 0.4%
- --------------------------------------------------------------------------------
Electric Products - 0.4%
65,700 Littelfuse, Inc. - exp. 12/31/01*
(total cost $677,514) 1,486,462
- --------------------------------------------------------------------------------
Total Investments (total cost $336,526,845) - 100.6% 428,399,501
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.6%) (2,554,687)
- --------------------------------------------------------------------------------
Net Assets - 100% $425,844,814
- --------------------------------------------------------------------------------
Summary of Investments by Country
June 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Israel 3.1% $13,149,106
United Kingdom 11.2% 47,971,996
United States++ 85.7% 367,278,399
- --------------------------------------------------------------------------------
Total 100.0% $428,399,501
================================================================================
++ Includes Short-Term Securities (78.8% excluding Short-Term Securities)
Forward Currency Contracts
Open at June 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/18/97 1,000,000 $1,663,700 $ 3,405
British Pound 7/24/97 7,200,000 11,976,480 (120,608)
British Pound 7/28/97 1,700,000 2,827,440 (78,100)
British Pound 8/20/97 2,800,000 4,653,600 (189,546)
British Pound 9/11/97 1,908,000 3,168,997 (121,921)
British Pound 11/28/97 4,500,000 7,455,600 (165,150)
- --------------------------------------------------------------------------------
Total $31,745,817 ($ 671,920)
================================================================================
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 8
<PAGE>
Janus Aspen Capital Appreciation Portfolio-Portfolio Manager, Scott W. Schoelzel
Performance Review
Janus Aspen Capital Appreciation Portfolio opened on May 1, 1997. Before
discussing Portfolio performance, I would like to take this opportunity to thank
each of you for your investment with Janus. The Portfolio got off to a good
start during its first two months, but my goals are really long-term. I want to
generate highly competitive results for investors by purchasing great individual
businesses at reasonable prices. That basic discipline will be the driving force
behind your future returns.
Since inception, Janus Aspen Capital Appreciation Portfolio appreciated 17.50%,
versus a gain of 10.83% for the S&P 500 Index(1). All returns include reinvested
dividends.
The Portfolio opened in the midst of a powerful and broad-based market rally
that was sparked by signs of moderate economic growth. For much of the previous
year, however, market focus had been confined primarily to large, familiar
companies, as investors' desire for predictability and liquidity became
increasingly acute. Many large stocks were trading at unprecedented levels, so I
was patient in putting capital to work. Whenever possible, I used volatility to
build positions at lower prices.
Portfolio Strategy
The Portfolio employs a "barbell" approach. At one end of the barbell are large,
stable, professionally managed companies, such as Citicorp, Pfizer, and Merrill
Lynch, that have numerous product lines and powerful, secure global market
franchises. On the other end of the barbell are smaller, faster-growing
companies such as Dell Computer, LHS Group, and Lam Research, which have fewer
product lines, higher price-earnings rations (PEs), and are still building
market share. The Portfolio is fairly concentrated, and should remain so. As
assets grow, it will probably hold 25-40 positions.
I am enthusiastic about a number of broad investment areas, where I believe
earnings are the most dynamic. Financial services, telecommunications,
technology, health care, pharmaceuticals and biotechnology should benefit
greatly from fundamental changes in economic and demographic trends, both at
home and abroad. Within these areas, I try to identify individual companies with
outstanding fundamentals. Even though the short-term market risk may be higher
with some of these companies than with the more mature businesses in the
Portfolio, I remain convinced the long-term potential of the barbell approach is
also much higher.
- --------------------------------------------------------------------------------
Portfolio Profile June 30, 1997
Equities 30.1%
Top 10 Equities 25.0%
Number of Stocks 16
Cash & Cash Equivalents 69.9%
- --------------------------------------------------------------------------------
Stock Highlights
Among the large, more mature companies in the Portfolio are two technology
stocks, Intel and Microsoft. Intel is the premier manufacturer of
microprocessors. Microsoft is, quite simply, a juggernaut in the software
industry. The company enjoys 91% gross margins, has no debt, and generates over
$500 million in free cash flow a month. It owns the global market in operating
software for PCs and is making aggressive inroads into the server market.
Eli Lilly, Warner-Lambert, and Pfizer make up our large pharmaceutical holdings.
All three have excellent product pipelines. Sales of Lilly's new drug Zyprexa,
which treats schizophrenia, were well ahead of expectations, and two other new
products, Gemzar, for pancreatic cancer, and Reopro, for acute cardiovascular
disease, are also selling well. Warner-Lambert has already achieved incredible
market penetration with Lipitor, its new anti-cholesterol drug, and with
Rezulin, its new diabetes drug.
Our large financial stocks include Citicorp and Merrill Lynch, which dominate
markets both at home and overseas. The breadth and depth of both companies'
foreign operations make them tough competitors. Citicorp is a dominant banking
presence in emerging economies. Merrill Lynch has huge market share in
international investment banking. Both companies also have substantial stock
repurchase programs.
Dell Computer, LHS Group, and Lam Research represent some of our smaller
companies. Dell is the most efficient competitor in the commercial PC market,
with excellent cost and inventory controls. The company keeps only a twelve-day
supply of components on hand - the lowest in the industry - which has meant huge
cost savings as the price of PC components has steadily dropped. The global
opportunities for Dell are just now beginning to take shape, and the company is
also buying back its stock fairly aggressively. LHS provides on-line billing and
accounting services to the fast-growing telecommunications industry, and Lam
develops and markets much of the processing equipment used to manufacture
semiconductors.
Going Forward
Given the current market environment, I intend to be both patient and
opportunistic, and to use volatility to build positions. The Portfolio contains
some very exciting stocks that have performed well for the short time we have
held them. But more importantly, these companies have management teams and
product lines that should make them long-term industry leaders.
Thank you once again for your investment in Janus Aspen Capital Appreciation
Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 9
<PAGE>
Janus Aspen Capital Appreciation Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 30.1%
- --------------------------------------------------------------------------------
Computer Software - 3.6%
160 Microsoft Corp.* $ 20,220
350 Wind River Systems* 13,387
- --------------------------------------------------------------------------------
33,607
- --------------------------------------------------------------------------------
Computers - Micro - 1.2%
96 Dell Computer Corp.* 11,274
- --------------------------------------------------------------------------------
Data Processing and Management - 4.7%
1,000 LHS Group, Inc.* 43,812
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 6.9%
200 Intel Corp. 28,363
1,000 Lam Research Corp.* 37,063
- --------------------------------------------------------------------------------
65,426
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 3.7%
580 Merrill Lynch & Co., Inc. 34,583
- --------------------------------------------------------------------------------
Life and Health Insurance - 0.2%
44 SunAmerica, Inc. 2,145
- --------------------------------------------------------------------------------
Medical - Drugs - 3.8%
100 Eli Lilly & Co. 10,931
98 Pfizer, Inc. 11,711
102 Warner-Lambert Co. 12,673
- --------------------------------------------------------------------------------
35,315
- --------------------------------------------------------------------------------
Medical - HMO - 0.5%
70 Oxford Health Plans, Inc.* 5,023
- --------------------------------------------------------------------------------
Money Center Banks - 3.1%
240 BankAmerica Corp. 15,495
112 Citicorp 13,503
- --------------------------------------------------------------------------------
28,998
- --------------------------------------------------------------------------------
Multi-Line Insurance - 0.7%
108 Travelers Group, Inc. 6,811
- --------------------------------------------------------------------------------
Telecommunication Services - 1.7%
600 Quest Communications International, Inc.* 16,350
- --------------------------------------------------------------------------------
Total Common Stock (cost $238,412) 283,344
- --------------------------------------------------------------------------------
U.S. Government Agencies - 69.5%
$155,000 Federal Home Loan Bank
5.65%, 7/1/97 155,000
500,000 Federal Home Loan Mortgage Corp.
5.75%, 7/1/97 500,000
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $655,000) 655,000
- --------------------------------------------------------------------------------
Total Investments (total cost $893,412) - 99.6% 938,344
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.4% 3,613
- --------------------------------------------------------------------------------
Net Assets - 100% $941,957
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 10
<PAGE>
Janus Aspen International Growth Portfolio-Portfolio Manager, Helen Young Hayes
Performance Review
Janus Aspen International Growth Portfolio gained 18.31% during the first half
of our fiscal year ended June 30, 1997. The Morgan Stanley International EAFE
Index (EAFE stands for Europe, Australasia, and the Far East) returned 11.21%
for the same period.(1) Both returns include reinvested net dividends.(2)
Our research team continued to find many excellent individual investment
opportunities over the last six months, sometimes in out-of-the-way industries.
The Fund also owned a number of larger, better-known companies, especially in
Europe. Both helped us beat the EAFE Index.
- --------------------------------------------------------------------------------
Portfolio Profile June 30, 1997 December 31, 1996
Equities 97.4% 70.9%
Foreign 96.9% 70.8%
Number of Stocks 257 183
Top 10 Equities 20.8% 18.3%
Cash & Fixed-Income Securities 2.6% 29.1%
- --------------------------------------------------------------------------------
The Portfolio
Volkswagen is new to the Portfolio and has performed well. Sales are growing at
a good clip and the company is streamlining its product lines and cutting costs
dramatically. Volkswagen has vowed to triple its pretax margins between now and
the year 2000.
Two German banks, Deutsche Bank and DePfa Bank, and Ahrend NV, a
Netherlands-based distributor of office supplies throughout Europe, also
performed well. DePfa is the largest mortgage bank in Germany. Along with its
banking and other business services, DePfa offers software for property
managers, which allows mortgage and rent payments to be made electronically to
DePfa's bank, and speeds up the collection cycle. This contributes significantly
to DePfa's profitability and competitive edge. Deutsche Bank dominates the
commercial banking business in Germany and is working to enhance returns and
profitability by cutting costs and expanding into higher-return businesses.
Management at Ahrend is highly cost-conscious and has successfully boosted the
company's operating and profit margins. Ahrend is poised to gain market share on
the Continent and especially in Germany, where companies are increasingly
realizing the efficiency and cost benefits of outsourcing to a single, preferred
vendor.
Positions in Philips Electronics and Lloyds TSB were increased.
Netherlands-based Philips is embarking on its second round of restructuring, led
by an energetic new CEO. His immediate plans include refocusing the company
along key strategic lines, which will result in the spin-off of incongruous or
unprofitable divisions. Lloyds is an extremely well-run British bank that is
enjoying the benefits of a merger between Lloyds and TSB Group. As a result of
the merger, Lloyds TSB will be able to take approximately 10% out of the cost
base of the combined banks. Lloyds management is committed to increasing
shareholder value and is using discretionary cash to make strategic acquisitions
and to build the bank's higher-profit, retail financial services.
Finally, Capita Group is a somewhat unusual beneficiary of the huge outsourcing
wave in Britain. In their attempt to lower costs, municipalities and other local
authorities are outsourcing services and functions such as the national driving
test to private companies like Capita Group.
U.K.-based Dorling Kindersley proved to be a disappointment during the first
half. The company specializes in publishing children's educational books and
interactive CD-ROMS. Unfortunately, the number of major chain bookstores has
increased substantially, while demand has actually slowed slightly. Book
retailers can return unsold books to printers at cost, and the unexpected return
of inventory hurt Dorling Kindersley's results.
International Strategy
With some exceptions, foreign markets continue to behave independently of the
U.S., and of each other. This diversity, in addition to the many attractive
individual companies we continue to identify worldwide, contributes to my
ongoing optimism about the potential of international investments. The broad
trend toward government deregulation, and a somewhat newer trend toward
profit-oriented, shareholder-friendly corporate management, should provide an
increasingly healthy climate for global equity markets for some time to come.
Thank you for your continued investment in Janus Aspen International Growth
Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
(2) 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. EAFE stands for Europe, Australasia, and the Far East.
Neither the U.S. market nor the emerging markets of Latin America and
Eastern Europe are represented in EAFE.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 11
<PAGE>
Janus Aspen International Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 95.6%
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.3%
14,125 DONCASTERS PLC*,** $ 326,641
- --------------------------------------------------------------------------------
Airlines - 1.2%
18,916 Deutsche Lufthansa A.G.** 363,115
93 Sairgroup*,** 104,365
12,106 SAS Danmark A/S 141,495
25,080 SAS Norge ASA - Class B 265,504
25,118 SAS Sverige A.B.** 305,351
- --------------------------------------------------------------------------------
1,179,830
- --------------------------------------------------------------------------------
Apparel Manufacturers - 0.5%
7,767 Adolfo Dominguez S.A. 306,307
3,150 Gucci Group N.V. - N.Y. Shares** 202,781
- --------------------------------------------------------------------------------
509,088
- --------------------------------------------------------------------------------
Appliances - 1.1%
15,604 Electrolux A.B. - Series B** 1,126,048
- --------------------------------------------------------------------------------
Athletic Footwear - 0.5%
4,214 Adidas A.G.** 466,735
- --------------------------------------------------------------------------------
Audio and Video Products - 0.8%
9,200 Sony Corp.** 803,181
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 3.5%
383 BMW A.G.** 317,164
231 Mahindra & Mahindra, Ltd. (GDR)*,+ 3,292
50,000 Mitsubishi Motors Corp.** 358,298
700 Tata Engineering & Locomotive Co., Ltd. 10,395
4,873 Tata Engineering & Locomotive Co., Ltd. (GDR)+ 72,364
3,492 Volkswagen A.G.** 2,679,319
- --------------------------------------------------------------------------------
3,440,832
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 0.7%
4,354 Autoliv A.B.** 167,518
23,000 Denso Corp.** 550,730
- --------------------------------------------------------------------------------
718,248
- --------------------------------------------------------------------------------
Brewery - 0.8%
56,800 Fomento Economico Mexicano S.A. de C.V. 337,393
7,208 Zaklady Piwowarskie w Zywcu S.A. 460,611
- --------------------------------------------------------------------------------
798,004
- --------------------------------------------------------------------------------
Broadcast Services and Programming - 0.5%
16,225 Grupo Televisa S.A. (GDR)* 492,834
- --------------------------------------------------------------------------------
Building - Heavy Construction - 0.3%
2,364 Grupo Acciona S.A. 266,828
- --------------------------------------------------------------------------------
Building and Construction Products - 0.2%
9,267 Tarkett A.G.** 239,315
- --------------------------------------------------------------------------------
Cable Television - 0%
2,275 TV Filme, Inc.*,** 23,603
- --------------------------------------------------------------------------------
Casino Services - 0.2%
29,925 London Clubs International PLC** 188,758
- --------------------------------------------------------------------------------
Cellular Telecommunications - 0.2%
1,465 Millicom International Cellular S.A.* 69,954
337 Telecel-Comunicacaoes Pessoais S.A.* 27,989
23,319 Telecom Italia Mobile S.p.A. 74,925
- --------------------------------------------------------------------------------
172,868
- --------------------------------------------------------------------------------
Chemicals - Diversified - 2.5%
6,799 Akzo Nobel**,+ 933,451
24,027 BASF A.G.** 888,671
36,771 BOC Group PLC** 639,519
- --------------------------------------------------------------------------------
2,461,641
- --------------------------------------------------------------------------------
Chemicals - Specialty - 0.5%
510 Clariant A.G.** $ 330,590
166 SGL Carbon A.G.**,+ 22,749
36,142 Victrex PLC** 102,858
- --------------------------------------------------------------------------------
456,197
- --------------------------------------------------------------------------------
Closed-End Funds - 0.3%
3,200 Polish National Investment Fund -
Privatisation Certificate 136,326
185 Romania Investment Fund+ 180,005
- --------------------------------------------------------------------------------
316,331
- --------------------------------------------------------------------------------
Commercial Banks - 2.8%
2,350 Amtssparekassen Fyn A/S 151,688
2,612 Banco Frances del Rio de la Plata S.A. (ADR) 84,890
113,134 Bank Handlowy W. Warszawie*,+ 1,304,765
1,691 BG Bank A/S 93,594
126,896 Credito Italiano S.p.A. 231,717
16,165 Equitable Banking Corp. 58,529
1,619 Jyske Bank A/S 139,663
1,521 Nordbanken A.B.** 51,340
148 Spar Nord Holdings A/S 6,919
2,448 Sparbanken Sverige A.B. - Class A** 54,454
3,752 Sydbank A/S 171,453
11,000 Uniao de Bancos Brasileiros S.A. (GDR)* 408,375
- --------------------------------------------------------------------------------
2,757,387
- --------------------------------------------------------------------------------
Commercial Services - 1.2%
47,393 BTG PLC** 497,709
4,814 Sophus Berendsen A/S - Class B 696,975
- --------------------------------------------------------------------------------
1,194,684
- --------------------------------------------------------------------------------
Computer Services - 3.6%
4,879 Axime*,** 577,599
10,880 Cap Gemini Sogeti S.A.** 574,491
141,400 Capita Group PLC** 554,207
9,883 CMG PLC** 219,922
7,559 Delphi Group PLC** 93,473
26,651 Enator A.B.*,** 475,641
2,989 Getronics N.V.** 96,718
66,635 Logica PLC** 767,987
3,005 Misys PLC** 68,142
230 Sligos S.A.*,** 31,733
4,060 WM-Data A.B. - Class B** 71,409
- --------------------------------------------------------------------------------
3,531,322
- --------------------------------------------------------------------------------
Computer Software - 1.9%
342,084 CI Technologies Group, Ltd.* 384,405
5,997 JBA Holdings PLC** 87,831
6,107 Merkantildata A.S.A. 122,627
27 NTT Data Corp.** 1,045,268
2,209 SEMA Group PLC** 45,312
2,518 TT Tieto Oy - Class B** 218,145
- --------------------------------------------------------------------------------
1,903,588
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 1.2%
9,325 Dassault Systemes S.A. (ADR)*,** 664,406
33,000 Fujitsu, Ltd.** 458,533
6,126 Prosolvia A.B. - B Shares*,**,+ 94,278
- --------------------------------------------------------------------------------
1,217,217
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 3.6%
77,282 Rhone-Poulenc - Class A** 3,159,237
25,000 Shiseido Co., Ltd.** 412,916
- --------------------------------------------------------------------------------
3,572,153
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 12
<PAGE>
Janus Aspen International Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Distribution and Wholesale - 0.3%
6,000 Mitsubishi Corp.** $ 74,980
18,000 Mitsui & Co.** 173,032
- --------------------------------------------------------------------------------
248,012
- --------------------------------------------------------------------------------
Diversified Financial Services - 0.1%
886 Compagnie Bancaire S.A.** 113,185
- --------------------------------------------------------------------------------
Diversified Operations - 8.4%
14,664 Amer Group, Ltd.*,** 268,196
71 Barco N.V. 14,398
546,000 First Pacific Co., Ltd. 697,716
47,802 Hays PLC** 454,270
45,000 Hutchison Whampoa, Ltd. 389,169
1,775 Kinnevik A.B. - Class B** 49,469
20,162 Lagardere S.C.A.** 586,219
10,370 Metra Oy - Class B** 312,442
19,775 Quinenco S.A. (ADR) 365,838
632,251 Rentokil Initial PLC** 2,220,259
105,475 Siebe PLC** 1,785,263
700 South African Breweries, Ltd.**,+ 21,491
328 Sulzer A.G.** 281,236
44,052 TI Group PLC** 383,808
7,976 VEBA A.G.** 448,570
- --------------------------------------------------------------------------------
8,278,344
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.1%
1,825 Elan Corp. PLC (ADR)* 82,581
- --------------------------------------------------------------------------------
Electric - Distribution - 0%
4,130 Manila Electric Co. 20,356
- --------------------------------------------------------------------------------
Electric - Integrated - 1.1%
900 Centrais Electricas de Santa Catarina S.A. (GDR)+ 124,200
2,900,000 Companhia de Eletricidade do Estado da Bahia* 266,686
6,425 Companhia Energetica de Minas Gerais (ADR) 326,872
9,178 Electricidade de Portugal S.A. 168,638
5,100 Mosenergo (ADR)*,+ 211,650
- --------------------------------------------------------------------------------
1,098,046
- --------------------------------------------------------------------------------
Electric Products - 2.1%
37,858 Gewiss S.p.A. 647,268
80,000 Hitachi, Ltd.** 894,870
459 Le Carbone-Lorraine**,+ 111,800
2,743 Siemens A.G.** 163,003
4,800 UCAR International, Inc.* 219,600
- --------------------------------------------------------------------------------
2,036,541
- --------------------------------------------------------------------------------
Electronic Components - 5.4%
51,598 Electrocomponents PLC** 385,147
42,502 Philips Electronics N.V.** 3,049,923
18,725 Philips Electronics N.V. - N.Y. Shares** 1,345,859
16,526 Pricer A.B. - Class B*,** 568,508
- --------------------------------------------------------------------------------
5,349,437
- --------------------------------------------------------------------------------
Electronic Measuring Instrument - 0%
448 Simac Techniek N.V.** 38,413
- --------------------------------------------------------------------------------
Engineering - Research and Development - 0.1%
577 VA Technologies A.G.* 105,614
- --------------------------------------------------------------------------------
Film Processing - 0.6%
12 Fotolabo S.A.** 3,828
3,836 Grand Optical Photoservice** 582,822
- --------------------------------------------------------------------------------
586,650
- --------------------------------------------------------------------------------
Finance - Auto Loans - 0.8%
510,000 Putra Surya Multidana* 812,770
- --------------------------------------------------------------------------------
Finance - Consumer Loans - 1.8%
143,142 Lloyds TSB Group PLC** $ 1,467,504
32,054 Provident Financial PLC** 297,145
- --------------------------------------------------------------------------------
1,764,649
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.6%
6,260 Compagnie de Suez** 15,408
41,000 Nomura Securities Co., Ltd.** 566,110
- --------------------------------------------------------------------------------
581,518
- --------------------------------------------------------------------------------
Food - Catering - 0.5%
47,552 Compass Group PLC**,+ 533,013
- --------------------------------------------------------------------------------
Food - Dairy Products - 0.1%
449 Koninklijke Nutricia Verenidge Bedrijven N.V.** 71,040
26,103 Parmalat Finanziaria S.p.A. 37,126
- --------------------------------------------------------------------------------
108,166
- --------------------------------------------------------------------------------
Food - Diversified - 0.5%
659 Hero A.G.**,+ 368,409
1,645 Raision Tehtaat Oy** 116,861
- --------------------------------------------------------------------------------
485,270
- --------------------------------------------------------------------------------
Food - Meat Products - 0.5%
56,949 Sardus A.B.*,**,+ 489,773
- --------------------------------------------------------------------------------
Food - Retail - 0.5%
419 Carrefour S.A.** 304,601
1,347 Selecta Group, (The) *,**,+ 205,120
- --------------------------------------------------------------------------------
509,721
- --------------------------------------------------------------------------------
Healthcare Safety Devices - 0%
7,250 London International Group PLC** 20,875
- --------------------------------------------------------------------------------
Home Furnishings - 0.1%
14,334 Ekornes A.S.A. 121,395
- --------------------------------------------------------------------------------
Hotels and Motels - 0.1%
81 Indian Hotels Co., Ltd. (GDR)*,+ 1,883
3,106 Sol Melia S.A. 127,771
- --------------------------------------------------------------------------------
129,654
- --------------------------------------------------------------------------------
Human Resources - 1.1%
42,507 Brunel International N.V.**,+ 945,891
6,194 Vedior N.V.*,**,+ 164,071
- --------------------------------------------------------------------------------
1,109,962
- --------------------------------------------------------------------------------
Investment Companies - 0.3%
12,436 Corp. Financiera Reunida S.A.* 52,426
447 FIH A/S - Class B 11,393
724 Incentive A.B. - Class B** 66,198
13,396 Investment A.B. Bure** 168,914
- --------------------------------------------------------------------------------
298,931
- --------------------------------------------------------------------------------
Investment Management and Advisory - 0%
3,743 Colonial, Ltd.*,+ 9,478
- --------------------------------------------------------------------------------
Lasers - Systems and Components - 0.3%
15,325 Rofin-Sinar Technologies, Inc.* 293,091
- --------------------------------------------------------------------------------
Machinery - General Industrial - 0.4%
35,239 Powerscreen International PLC** 383,853
- --------------------------------------------------------------------------------
Machinery - Pumps - 0.3%
9,600 Pfeiffer Vacuum Technology A.G. (ADR)*,** 279,600
- --------------------------------------------------------------------------------
Manufacturing - 0%
253 Azkoyen S.A. 31,481
- --------------------------------------------------------------------------------
Medical - Biomedical and Genetic - 0.2%
100 Ares-Serono Group - Class B** 145,077
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 13
<PAGE>
Janus Aspen International Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical - Drugs - 7.7%
564 Altana A.G.** $ 602,020
22,231 Astra A.B. - Class A** 414,008
1,000 Eisai Co., Ltd.** 18,964
10,150 Gedeon Richter (GDR) 918,575
59,493 Glaxo Wellcome PLC** 1,227,776
731 Novartis A.G.** 1,170,322
14,743 Orion-Yhtyma Oy - Class B** 554,893
128 Roche Holding A.G.** 1,159,406
6,900 Rhone-Poulenc 627,038
3,662 SmithKline Beecham PLC** 67,377
175 SmithKline Beecham PLC (ADR)** 16,034
25,000 Takeda Chemical Industries** 703,487
2,325 Teva Pharmaceutical Industries, Ltd. (ADR) 150,544
- --------------------------------------------------------------------------------
7,630,444
- --------------------------------------------------------------------------------
Medical - Wholesale Drug Distribution - 1.0%
389 Gehe A.G.** 26,565
6,375 Grupo Casa Autrey S.A. de C.V. (ADR) 129,492
34,800 Torii Pharmaceutical Co., Ltd. 818,072
- --------------------------------------------------------------------------------
974,129
- --------------------------------------------------------------------------------
Medical Products - 1.1%
4,149 Biocompatibles International PLC*,** 89,871
412 Fresenius Medical Care A.G.*,** 29,602
16,040 Fresenius Medical Care A.G. (ADR)*,** 467,165
12,670 Ortivus A.B.*,** 517,786
- --------------------------------------------------------------------------------
1,104,424
- --------------------------------------------------------------------------------
Metal Processors and Fabricator - 0.9%
38,662 Assa-Abloy A.B. - Class B** 790,002
3,866 Assa-Abloy A.B. - Class B New*,** 77,496
- --------------------------------------------------------------------------------
867,498
- --------------------------------------------------------------------------------
Money Center Banks - 5.9%
17,089 Banque Nationale de Paris** 704,991
19,495 Barclays PLC** 386,751
3,684 Credit Suisse Group** 473,814
35,332 Deutsche Bank A.G.** 2,066,147
14,487 ING Groep N.V.** 669,147
11,000 Mitsubishi Trust and Banking Co., Ltd. ** 173,993
35,000 Mitsui Trust and Banking Co., Ltd.** 264,572
1,364 Societe Generale*,** 152,409
35,000 Sumitomo Trust & Banking Co., Ltd.** 376,212
456 UBS** 522,358
1,035 Unidanmark A/S - Class A 58,222
- --------------------------------------------------------------------------------
5,848,616
- --------------------------------------------------------------------------------
Mortgage Banks -1.0%
17,262 Deutsche Pfandbrief und Hypothekenbank A.G.** 993,598
- --------------------------------------------------------------------------------
Motorcycle and Motor Scooter - 0%
464 Bajaj Auto, Ltd. (GDR)*,+ 15,590
- --------------------------------------------------------------------------------
Multi-Line Insurance - 2.0%
145 Baloise Holdings, Ltd.*,** 346,126
5,565 Pohjola Insurance Group - Class B** 164,992
1,911 Sampo Insurance Co., Ltd. - Class A** 185,793
11,164 Skandia Forsakrings A.B.** 411,483
2,222 Zurich Versicherungsgesellschaft** 885,538
- --------------------------------------------------------------------------------
1,993,932
- --------------------------------------------------------------------------------
Multilevel Direct Selling - 0.4%
8,250 Amway Asia Pacific, Ltd. 359,906
600 Nu Skin Asia Pacific, Inc. - Class A* 15,900
- --------------------------------------------------------------------------------
375,806
- --------------------------------------------------------------------------------
Music - 0%
789 Polygram N.V.** 41,477
- --------------------------------------------------------------------------------
Office Automation and Equipment - 0.5%
11,000 Canon, Inc.** $ 299,921
1,444 Oce N.V.** 186,606
- --------------------------------------------------------------------------------
486,527
- --------------------------------------------------------------------------------
Office Furnishings - 1.3%
18,325 Koninklijke Ahrend Groep N.V.** 1,239,236
- --------------------------------------------------------------------------------
Oil - International Integrated - 0.1%
1,250 Tatneft (ADR)*,+ 132,500
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 1.8
11,891 Elf Aquitaine S.A.** 1,284,104
11,202 MOL Magyar Olaj-es Gazipari Rt. (GDR)+ 250,645
7,450 YPF S.A. (ADR) 229,088
- --------------------------------------------------------------------------------
1,763,837
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.3%
3,300 Lukoil Oil Co. (ADR) 257,400
- --------------------------------------------------------------------------------
Precious Metals - 0.1%
4,738 Johnson Matthey PLC** 45,657
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 0.4%
32,000 Tokio Marine & Fire Insurance Co.** 419,470
- --------------------------------------------------------------------------------
Publishing - Books - 0.1%
1,129 Wolters Kluwer N.V.** 137,717
- --------------------------------------------------------------------------------
Publishing - Newspapers - 0%
3,174 Pearson PLC** 36,740
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 1.9%
23,800 Castellum A.B.*,**,+ 178,522
53,000 Mitsubishi Estate Co., Ltd.** 768,854
28,000 Mitsui Fudosan Co., Ltd.** 386,612
3,855 NK Cityfastigheter A.B.*,**,+ 27,420
39,604 Tornet Fastighets A.B.** 466,087
- --------------------------------------------------------------------------------
1,827,495
- --------------------------------------------------------------------------------
Recreational Vehicles - 0%
1,000 Yamaha Motor Co., Ltd.** 9,962
- --------------------------------------------------------------------------------
Recycling - 0.3%
16,446 Tomra Systems A.S.A. 336,972
- --------------------------------------------------------------------------------
Retail - Apparel and Shoes - 0%
537 Cortefiel, S.A. 23,478
- --------------------------------------------------------------------------------
Retail - Diversified - 0.1%
1,000 Ryohin Keikaku Co., Ltd.** 79,000
- --------------------------------------------------------------------------------
Retail - Hypermarkets - 1.2%
110,435 Hemkopskedjan A.B. - B Shares**,+ 1,135,431
- --------------------------------------------------------------------------------
Retail - Jewelry - 0.1%
284 TAG Heuer International S.A.*,** 42,663
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 0%
1,000 Isetan Co.*,** 12,409
- --------------------------------------------------------------------------------
Retail - Pubs - 0.1%
2,927 Wetherspoon (J.D.) PLC** 65,520
- --------------------------------------------------------------------------------
Retail - Regional Department Stores - 0.1%
29,849 Harvey Nichols PLC**,+ 140,588
- --------------------------------------------------------------------------------
Retail - Restaurants - 0.7%
11,795 Tele Pizza S.A.* 696,135
- --------------------------------------------------------------------------------
Rubber - Tires - 1.0%
11,174 Compagnie Generale des
Etablissements Michelin - Class B** 671,665
138,710 Pirelli S.p.A. 349,323
- --------------------------------------------------------------------------------
1,020,988
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 14
<PAGE>
Janus Aspen International Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Security Services - 0.5%
2,880 Prosegur Companhia de Seguridad S.A. $ 35,249
17,267 Securitas A.B. - Class B** 486,811
- --------------------------------------------------------------------------------
522,060
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.6%
1,174 Credit Communal Holding/Dexia+ 126,217
5,200 Dexia France** 506,631
- --------------------------------------------------------------------------------
632,848
- --------------------------------------------------------------------------------
Telecommunication Equipment - 2.1%
2,336 Alcatel Alsthom** 292,849
119,000 Datacraft Asia, Ltd.* 378,420
10,200 MAS Technology, Ltd. (ADR)* 151,725
10,293 Oy Nokia A.B. - Class A** 776,792
4,675 Oy Nokia Corp. (ADR) - Class A** 344,781
5,384 Tandberg A.S.A.* 57,364
13,712 Tandberg Television A.S.A.* 102,080
- --------------------------------------------------------------------------------
2,104,011
- --------------------------------------------------------------------------------
Telecommunication Services - 3.3%
23,473 COLT Telecom Group PLC*,** 120,714
365,475 Freepages Group PLC*,** 218,974
15,700 Nortel Inversora S.A. (ADR) 425,863
974 SK Telecom Co., Ltd. (ADR) 9,801
84,554 Stet-Societa' Finanziaria Telefonica S.p.A.* 492,018
50,794 Telecom Italia S.p.A. 162,845
4,000 Telefonaktiebolaget L.M. Ericsson - Class B** 157,500
10,487 Telefonaktiebolaget L.M. Ericsson
(ADR) - Class B** 412,976
20,549 Telinfo S.A. 1,254,660
- --------------------------------------------------------------------------------
3,255,351
- --------------------------------------------------------------------------------
Telephone - Integrated - 2.5%
5,618 Hellenic Telecommunication Organization S.A. 132,022
161 Nippon Telegraph & Telephone Corp.** 1,547,671
500 Portugal Telecom S.A. (ADR) 20,063
4,400 Telecom Argentina Stet S.A. (ADR) 231,000
5,075 Telefonica de Argentina S.A. (ADR) 175,722
14,050 Telefonica del Peru S.A. (ADR) - Class B* 367,932
- --------------------------------------------------------------------------------
2,474,410
- --------------------------------------------------------------------------------
Television - 0%
900 CanWest Global Communications Corp. 13,331
- --------------------------------------------------------------------------------
Textile - Apparel - 0.2%
2,308 Wolford A.G. 224,004
- --------------------------------------------------------------------------------
Tobacco - 0%
3,500 PT Hanjaya Mandala Sampoerna 13,351
- --------------------------------------------------------------------------------
Traffic Management Systems - 0.5%
1,216,000 Jianesu Expressway Co., Ltd.*,+ 431,635
194,000 Shenzhen Expressway Co. - Class H*,+ 53,212
- --------------------------------------------------------------------------------
484,847
- --------------------------------------------------------------------------------
Transportation - Services - 0.5%
4,292 Koninklijke Nedlloyd Groep N.V.** 124,203
37,366 Stagecoach Holdings PLC** 394,273
- --------------------------------------------------------------------------------
518,476
- --------------------------------------------------------------------------------
Travel Services - 0.3%
77 Kuoni Reisen A.G. - Class B** 264,088
- --------------------------------------------------------------------------------
Warehousing & Harbor Transport - 0.3%
1,360,000 Pacific Ports Co., Ltd.+ 272,095
- --------------------------------------------------------------------------------
Total Common Stock (cost $83,975,500) 94,762,900
- --------------------------------------------------------------------------------
Corporate Bond - 0.7%
- --------------------------------------------------------------------------------
Money Center Banks - 0.7%
JPY 65,000,000 STB Cayman Capital Ltd.
0.50%, 10/1/07**,+ (cost $563,820) $ 646,137
- --------------------------------------------------------------------------------
Preferred Stock - 1.8%
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 0%
18 Porsche A.G.** 23,965
- --------------------------------------------------------------------------------
Brewery - 0%
51,000 Companhia Cervejaria Brahma* 38,846
- --------------------------------------------------------------------------------
Electric - Integrated - 0.4%
16,000 Centrais Electricas de Santa Catarrina S.A. 23,780
6,703,000 Companhia Energetica de Minas Gerais 345,564
1,000,000 Companhia Paranaense de Energia-Copel* 18,578
- --------------------------------------------------------------------------------
387,922
- --------------------------------------------------------------------------------
Medical Products - 0.1%
393 Fresenius A.G.*,** 89,311
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.2%
779,000 Petroleo Brasileiro S.A. 215,636
- --------------------------------------------------------------------------------
Telecommunication Equipment - 0.7%
10,200 Ericcson Telecomunicacoes S.A. 606,383
- --------------------------------------------------------------------------------
Telephone - Integrated - 0.4%
2,725 Telecomunicacoes Brasileiras S.A. (ADR) 413,519
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $1,323,117) 1,775,582
- --------------------------------------------------------------------------------
Rights - 0%
253 Azkoyen S.A.* (cost $0) 7,741
- --------------------------------------------------------------------------------
U.S. Government Agency - 4.6%
$4,580,000 Federal Home Loan Mortgage Corp.
5.75%, 7/1/97 (amortized cost $4,580,000) 4,580,000
- --------------------------------------------------------------------------------
Total Investments (total cost $90,442,437) - 102.7% 101,772,360
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.7%) (2,654,822)
- --------------------------------------------------------------------------------
Net Assets - 100% $ 99,117,538
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 15
<PAGE>
Janus Aspen International Growth Portfolio June 30, 1997 (unaudited)
Summary of Investments by Country
June 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 1.1% $ 1,146,561
Australia 0.4% 393,882
Austria 0.3% 329,618
Belgium 1.4% 1,395,275
Brazil 2.8% 2,812,040
Canada 0.0% 13,331
Chile 0.4% 365,837
China 0.4% 431,635
Denmark 1.4% 1,471,403
Finland 2.9% 2,942,895
France 10.2% 10,334,149
Germany 10.0% 10,166,614
Greece 0.1% 132,022
Hong Kong 1.7% 1,772,098
Hungary 1.1% 1,169,219
India 0.1% 103,524
Indonesia 0.8% 826,120
Ireland 0.1% 82,581
Israel 0.1% 150,543
Italy 2.0% 1,995,221
Japan 11.7% 11,863,254
Luxembourg 0.1% 69,953
Mexico 0.9% 959,719
Netherlands 9.1% 9,246,535
New Zealand 0.1% 151,725
Norway 1.0% 1,005,941
Peru 0.4% 367,934
Philippines 0.1% 78,884
Poland 1.9% 1,901,701
Portugal 0.2% 216,689
Romania 0.2% 180,005
Russia 0.6% 601,550
Singapore 0.4% 378,420
South Africa 0.0% 21,491
South Korea 0.0% 9,801
Spain 1.5% 1,547,415
Sweden 8.6% 8,764,424
Switzerland 6.2% 6,302,939
United Kingdom 14.1% 14,333,787
United States++ 5.6% 5,735,625
- --------------------------------------------------------------------------------
Total 100.0% $101,772,360
================================================================================
++ Includes Short-Term Securities (1.1% excluding Short-Term Securities)
Forward Currency Contracts
Open at June 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/24/97 900,000 $1,497,060 ($ 22,500)
British Pound 7/28/97 600,000 997,920 (27,565)
Dutch Guilder 7/21/97 500,000 255,115 23,903
Dutch Guilder 7/24/97 2,200,000 1,122,735 84,563
Dutch Guilder 8/11/97 375,000 191,630 9,648
Finnish Markka 7/18/97 12,000 2,314 260
Finnish Markka 7/28/97 29,000 5,597 546
French Franc 8/4/97 4,000,000 682,396 48,024
French Franc 8/11/97 2,500,000 426,694 20,838
French Franc 9/11/97 43,000 7,354 164
French Franc 11/28/97 5,000,000 859,697 21,321
German Deutschemark 7/17/97 60,000 34,447 3,772
German Deutschemark 7/21/97 1,000,000 574,317 52,749
German Deutschemark 7/23/97 29,000 16,658 1,407
German Deutschemark 7/24/97 846,000 485,984 36,632
German Deutschemark 8/11/97 200,000 115,048 6,858
Japanese Yen 7/18/97 3,500,000 30,555 319
Japanese Yen 8/12/97 59,000,000 515,093 (29,383)
Japanese Yen 9/11/97 2,000,000 17,462 (604)
Japanese Yen 11/4/97 180,000,000 1,571,662 16,841
Japanese Yen 12/18/97 17,500,000 152,811 5,561
South African Rand 11/3/97 60,000 12,809 (1,319)
Swedish Krona 7/18/97 585,000 75,896 9,102
Swedish Krona 7/28/97 464,000 60,225 5,832
Swiss Franc 7/18/97 50,000 34,303 2,754
Swiss Franc 7/21/97 600,000 411,805 25,863
Swiss Franc 7/23/97 35,000 24,028 1,166
Swiss Franc 7/24/97 400,000 274,650 10,149
Swiss Franc 8/4/97 450,000 309,427 12,599
Swiss Franc 8/11/97 400,000 275,274 6,993
Swiss Franc 9/12/97 300,000 207,225 330
Swiss Franc 11/12/97 36,000 25,052 754
- --------------------------------------------------------------------------------
Total $11,273,243 $ 327,577
================================================================================
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 16
<PAGE>
Janus Aspen Worldwide Growth Portfolio - Portfolio Manager, Helen Young Hayes
Performance
Janus Aspen Worldwide Growth Portfolio gained 18.92% for the first half of our
fiscal year ended June 30, 1997, outperforming the Morgan Stanley Capital
International World Index, which returned 15.38%(1). Both returns include net
dividends reinvested.(2)
The ability to identify and invest in good individual businesses, regardless of
their geographic location, was the primary reason the Portfolio outperformed the
Morgan Stanley Index. The Portfolio held large, stable, high-quality companies
whose products are familiar names internationally, along with a variety of
smaller and medium-sized stocks that were largely overlooked by global
investors.
I remain especially enthusiastic about opportunities in Europe, where a wave of
corporate restructuring, similar to that in the U.S., is on the rise in a number
of major industries, including pharmaceuticals, autos, and manufacturing. The
coming of the European Monetary Union (EMU) is also fueling growth in software
development and information technology (IT) as Europe prepares for a single
currency and standardized accounting.
- --------------------------------------------------------------------------------
Portfolio Profile June 30, 1997 December 31, 1996
Equities 95.5% 88.1%
Foreign 89.2% 78.3%
Number of Stocks 253 209
Top 10 Equities 17.9% 19.8%
Cash & Cash Equivalents 4.5% 11.9%
- --------------------------------------------------------------------------------
Stock Highlights
Volkswagen is new to the portfolio and has performed well. The company is
experiencing good demand for its automobiles and is cutting costs dramatically.
Volkswagen has vowed to triple its pretax margins between now and the year 2000.
Other good performers included Philips, Cap Gemini, Getronics, and Telebras.
Netherlands-based Philips is embarking on its second round of restructuring,
led by an energetic new CEO. His immediate plans consist of refocusing the
company along key strategic lines, which will result in the spin-off of
incongruous or unprofitable divisions. French IT provider Cap Gemini has
experienced tremendous demand for its software as Europe approaches the onset of
the EMU, as well as for its year 2000 solutions. Longtime holding Getronics,
which designs, installs, and maintains computer and telecommunications networks,
has benefited from excellent acceptance of its new IT products in the U.S. and
Europe. Among our emerging market holdings, Telebras continues to stand out. A
combination of economic growth and tremendous pent-up demand for telephone
service - just 8% of Brazil's population currently have telephones - is driving
revenues and profits. Deregulation and improved operating efficiencies should
also support strong revenue and earnings growth at Telebras.
Although the Portfolio performed well overall, it was not without
disappointments, including LucasVarity and Dorling Kindersley, both
British-based businesses. LucasVarity was the result of the merger between two
highly complementary auto parts companies, Lucas and Varity. After the merger,
management set extremely aggressive integration targets and then fell far short
of achieving them. Dorling Kindersley specializes in publishing, specifically
children's educational books and interactive CD-ROMS. The number of major chain
bookstores has increased substantially, nearly tripling capacity, while demand
has actually slowed slightly. Book retailers have the ability to return unsold
books to printers at cost, and the unexpected return of inventory negatively
impacted Dorling Kindersley's results.
Global Strategy
Foreign equity markets are exhibiting a growing independence and diversity that
is very healthy. Fiscal restraint in the public and private sectors and the
proliferation of shareholder-friendly corporate managers has created a wealth of
solid growth companies around the globe. In this excellent investment
environment, our intensive, fundamental analysis of individual companies should
continue to uncover a wide range of exceptional opportunities.
Thank you for your continued investment in Janus Aspen Worldwide Growth
Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
(2) 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.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 17
<PAGE>
Janus Aspen Worldwide Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 93.2%
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.1%
22,550 Boeing Co. $ 1,196,559
- --------------------------------------------------------------------------------
Airlines - 1.1%
235,292 Deutsche Lufthansa A.G.** 4,516,708
207,575 Ryanair Holdings PLC (ADR)* 5,630,472
2,088 Sairgroup*,** 2,343,155
31,566 SAS Danmark A/S 368,944
- --------------------------------------------------------------------------------
12,859,279
- --------------------------------------------------------------------------------
Apparel Manufacturers - 0.1%
24,625 Gucci Group N.V. - N.Y. Shares** 1,585,234
- --------------------------------------------------------------------------------
Appliances - 1.1%
191,471 Electrolux A.B. - Series B** 13,817,328
- --------------------------------------------------------------------------------
Athletic Footwear - 0.5%
59,030 Adidas A.G.** 6,538,059
- --------------------------------------------------------------------------------
Audio and Video Products - 0.9%
121,700 Sony Corp.** 10,624,685
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 3.5%
5,386 BMW A.G.** 4,460,170
18,389 Mahindra & Mahindra, Ltd. (GDR)*,+ 262,043
669,000 Mitsubishi Motors Corp.** 4,794,021
6,200 Tata Engineering & Locomotive Co., Ltd. 92,070
159,444 Tata Engineering & Locomotive Co., Ltd. (GDR)+ 2,367,743
38,870 Volkswagen A.G.** 29,823,917
- --------------------------------------------------------------------------------
41,799,964
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 0.8%
56,068 Autoliv A.B.** 2,157,192
302,000 Denso Corp.** 7,231,319
- --------------------------------------------------------------------------------
9,388,511
- --------------------------------------------------------------------------------
Brewery - 0.4%
764,900 Fomento Economico Mexicano S.A. de C.V. 4,543,523
- --------------------------------------------------------------------------------
Broadcast Services and Programming - 0.6%
249,725 Grupo Televisa S.A. (GDR)* 7,585,397
- --------------------------------------------------------------------------------
Building - Heavy Construction - 0.2%
18,141 Grupo Acciona S.A. 2,047,600
- --------------------------------------------------------------------------------
Building and Construction Products - 0.2%
75,348 Tarkett A.G.** 1,945,821
- --------------------------------------------------------------------------------
Cable Television - 0.1%
120,050 TV Filme, Inc.*,** 1,245,519
- --------------------------------------------------------------------------------
Casino Services - 0.2%
389,091 London Clubs International PLC** 2,454,268
- --------------------------------------------------------------------------------
Cellular Telecommunications - 0.6%
121,375 Iridum World Communications, Ltd. 2,199,922
67,625 Millicom International Cellular S.A.* 3,229,094
596,841 Telecom Italia Mobile S.p.A. 1,917,678
- --------------------------------------------------------------------------------
7,346,694
- --------------------------------------------------------------------------------
Chemicals - Diversified - 3.2%
70,181 Akzo Nobel**,+ 9,635,317
295,444 BASF A.G.** 10,927,400
407,340 BOC Group PLC** 7,084,431
263,325 Monsanto Co. 11,339,433
- --------------------------------------------------------------------------------
38,986,581
- --------------------------------------------------------------------------------
Chemicals - Specialty - 0.6%
6,651 Clariant A.G.** 4,311,277
7,311 SGL Carbon A.G.**,+ 1,001,913
657,041 Victrex PLC** 1,869,908
- --------------------------------------------------------------------------------
7,183,098
- --------------------------------------------------------------------------------
Commercial Banks - 1.6%
35,417 Banco Frances del Rio de la Plata S.A. (ADR) $ 1,151,053
2,481,970 Credito Italiano S.p.A. 4,532,166
229,355 Equitable Banking Corp. 830,429
22,977 Jyske Bank A/S 1,982,116
54,366 Nordbanken A.B.** 1,835,079
2,097 Spar Nord Holdings A/S** 98,039
61,128 Sparbanken Sverige A.B. - Class A** 1,359,739
53,250 Sydbank A/S 2,433,335
132,400 Uniao de Bancos Brasileiros S.A. (GDR)* 4,915,350
- --------------------------------------------------------------------------------
19,137,306
- --------------------------------------------------------------------------------
Commercial Services - 1.3%
627,392 BTG PLC** 6,588,703
10,475 Quintiles Transnational Corp.* 729,322
59,150 Sophus Berendsen A/S - Class B 8,563,782
- --------------------------------------------------------------------------------
15,881,807
- --------------------------------------------------------------------------------
Computer Services - 4.3%
67,841 Axime*,** 8,030,954
137,671 Cap Gemini Sogeti S.A.** 7,269,371
1,703,956 Capita Group PLC** 6,678,530
64,431 CMG PLC** 1,433,757
10,775 Computer Sciences Corp.* 777,147
121,314 Delphi Group PLC** 1,500,138
67,778 Enator A.B.*,** 1,209,636
188,844 Getronics N.V.** 6,110,639
653,529 Logica PLC ** 7,532,103
264,894 Misys PLC** 6,006,760
270,600 WM-Data A.B. - Class B** 4,759,415
- --------------------------------------------------------------------------------
51,308,450
- --------------------------------------------------------------------------------
Computer Software - 3.4%
259,287 JBA Holdings PLC** 3,797,476
246,972 Merkantildata A.S.A. 4,959,145
375 NTT Data Corp.** 14,517,605
288,150 Parametric Technology Corp.* 12,264,384
45,305 SEMA Group PLC** 929,319
48,895 TT Tieto Oy - Class B** 4,235,978
- --------------------------------------------------------------------------------
40,703,907
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 0.8%
17,375 Dassault Systemes S.A. (ADR)*,** 1,237,969
433,000 Fujitsu, Ltd.** 6,016,515
92,525 Wang Laboratories, Inc.* 1,971,939
- --------------------------------------------------------------------------------
9,226,423
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 1.7%
373,282 Rhone-Poulenc - Class A** 15,259,523
344,000 Shiseido Co., Ltd.** 5,681,725
- --------------------------------------------------------------------------------
20,941,248
- --------------------------------------------------------------------------------
Distribution and Wholesale - 0.3%
86,000 Mitsubishi Corp.** 1,074,718
251,000 Mitsui & Co.** 2,412,828
- --------------------------------------------------------------------------------
3,487,546
- --------------------------------------------------------------------------------
Diversified Financial Services - 0.3%
19,925 Associates First Capital Corp. - Class A 1,105,838
17,954 Compagnie Bancaire S.A.** 2,293,587
104,000 JCG Holdings, Ltd. 83,900
- --------------------------------------------------------------------------------
3,483,325
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 18
<PAGE>
Janus Aspen Worldwide Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Diversified Operations - 9.3%
189,686 Amer Group, Ltd.*,** $ 3,469,250
14,445 Barco N.V. 2,929,180
126,475 C.G. Smith, Ltd.** 705,499
5,856,000 First Pacific Co., Ltd. 7,483,193
36,107 Grupo Carso S.A. de C.V. - Series A1 251,017
1,419,714 Hays PLC** 13,491,759
618,000 Hutchison Whampoa, Ltd. 5,344,585
53,730 Kinnevik A.B. - Class B** 1,497,445
316,685 Lagardere S.C.A.** 9,207,753
191,124 Metra Oy - Class B** 5,758,459
7,240,774 Rentokil Initial PLC ** 25,427,231
1,137,864 Siebe PLC** 19,259,408
27,841 South African Breweries, Ltd.**,+ 854,773
6,668 Sulzer A.G.** 5,717,323
583,172 TI Group PLC** 5,080,950
99,679 VEBA A.G.** 5,605,941
- --------------------------------------------------------------------------------
112,083,766
- --------------------------------------------------------------------------------
Drug Delivery Systems - 0.4%
98,100 Elan Corp. PLC (ADR)* 4,439,025
- --------------------------------------------------------------------------------
Electric - Distribution - 0%
55,400 Manila Electric Co. 273,051
- --------------------------------------------------------------------------------
Electric - Integrated - 0.9%
96,775 BSES, Ltd. (GDR)+ 2,516,150
105,425 Companhia Energetica de Minas Gerais (ADR) 5,363,497
114,160 Electricidade de Portugal S.A. 2,097,598
14,775 Mosenergo (ADR)+ 613,163
- --------------------------------------------------------------------------------
10,590,408
- --------------------------------------------------------------------------------
Electric Products - 1.5%
1,057,000 Hitachi, Ltd.** 11,823,470
6,647 Le Carbone-Lorraine**,+ 1,619,028
36,489 Siemens A.G.** 2,168,357
43,125 UCAR International, Inc.* 1,972,969
- --------------------------------------------------------------------------------
17,583,824
- --------------------------------------------------------------------------------
Electronic Components - 4.8%
486,613 Electrocomponents PLC** 3,632,267
368,281 Philips Electronics N.V.** 26,427,667
298,361 Philips Electronics N.V. - N.Y. Shares** 21,444,697
176,640 Pricer A.B. - Class B*,** 6,076,557
- --------------------------------------------------------------------------------
57,581,188
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 0%
2,000 Rohm Co.** 206,240
- --------------------------------------------------------------------------------
Film Processing - 0.2%
664 Fotolabo S.A.** 211,791
18,825 Grand Optical Photoservice** 2,860,174
- --------------------------------------------------------------------------------
3,071,965
- --------------------------------------------------------------------------------
Finance - Consumer Loans - 0.6%
437,111 Provident Financial PLC** 4,052,085
27,525 Student Loan Marketing Association 3,495,675
- --------------------------------------------------------------------------------
7,547,760
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.5%
402,000 Nomura Securities Co., Ltd.** 5,550,641
- --------------------------------------------------------------------------------
Finance - Other Services - 0%
55,360 Grupo Financiero Inbursa, S.A. de C.V. - Class B 235,233
- --------------------------------------------------------------------------------
Food - Catering - 0.6%
649,644 Compass Group PLC**,+ 7,281,899
- --------------------------------------------------------------------------------
Food - Dairy Products - 0.7%
31,701 Koninklijke Nutricia Verenidge Bedrijven N. V.** 5,015,669
2,397,331 Parmalat Finanziaria S.p.A. 3,409,662
- --------------------------------------------------------------------------------
8,425,331
- --------------------------------------------------------------------------------
Food - Diversified - 0.5%
2,495 Hero A.G.**,+ $ 1,394,811
58,521 Raision Tehtaat Oy** 4,157,333
- --------------------------------------------------------------------------------
5,552,144
- --------------------------------------------------------------------------------
Food - Retail - 0.4%
5,466 Carrefour S.A.** 3,973,623
25,175 Disco S.A. (ADR)* 997,559
- --------------------------------------------------------------------------------
4,971,182
- --------------------------------------------------------------------------------
Healthcare Safety Devices - 0.1%
401,066 London International Group PLC** 1,154,765
- --------------------------------------------------------------------------------
Home Furnishings - 0.4%
257,727 Ekornes A.S.A. 2,182,697
27,200 Hunter Douglas N.V.** 2,318,353
- --------------------------------------------------------------------------------
4,501,050
- --------------------------------------------------------------------------------
Hotels and Motels - 0.1%
13,449 Indian Hotels Co., Ltd.*,+ 312,689
33,608 Sol Melia S.A. 1,382,527
- --------------------------------------------------------------------------------
1,695,216
- --------------------------------------------------------------------------------
Human Resources - 0.6%
51,250 Manpower, Inc. 2,280,625
7,477 Randstad Holdings N.V. 789,936
33,750 Robert Half International, Inc.* 1,588,359
79,751 Vedior N.V.*,**,+ 2,112,505
- --------------------------------------------------------------------------------
6,771,425
- --------------------------------------------------------------------------------
Investment Companies - 0.3%
90,096 Corp. Financiera Reunida S.A.* 379,816
6,349 FIH A/S - Class B 161,820
19,457 Incentive A.B. - Class B** 1,779,025
106,928 Investment A.B. Bure** 1,348,289
- --------------------------------------------------------------------------------
3,668,950
- --------------------------------------------------------------------------------
Investment Management and Advisors - 0%
51,058 Colonial, Ltd.*,+ 129,284
- --------------------------------------------------------------------------------
Machinery - General Industrial - 0.3%
384,498 Powerscreen International PLC** 4,188,277
- --------------------------------------------------------------------------------
Machinery - Pumps - 0%
8,000 Pfeiffer Vacuum Technology A.G. (ADR)*,** 233,000
- --------------------------------------------------------------------------------
Manufacturing - 0%
3,992 Azkoyen S.A. 496,727
- --------------------------------------------------------------------------------
Medical - Biomedical and Genetic - 0.2%
1,431 Ares-Serono Group - Class B** 2,076,047
- --------------------------------------------------------------------------------
Medical - Drugs - 7.1%
7,150 Altana A.G.** 7,631,989
183,356 Astra A.B. - Class A** 3,414,630
137,300 Bristol-Myers Squibb Co. 11,121,300
117,200 Eisai Co., Ltd.** 2,222,528
435,238 Glaxo Wellcome PLC** 8,982,146
11,297 Novartis A.G.** 18,086,359
2,375 Pfizer, Inc. 283,813
1,970 Roche Holding A.G.** 17,843,983
228,720 SmithKline Beecham PLC** 4,208,182
12,050 SmithKline Beecham PLC (ADR)** 1,104,081
314,000 Takeda Chemical Industries** 8,835,792
33,875 Teva Pharmaceutical Industries, Ltd. (ADR) 2,193,406
- --------------------------------------------------------------------------------
85,928,209
- --------------------------------------------------------------------------------
Medical - Wholesale Drug Distribution - 0.4%
24,048 Gehe A.G.** 1,642,270
175,325 Grupo Casa Autrey S.A. de C.V. (ADR) 3,561,289
- --------------------------------------------------------------------------------
5,203,559
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 19
<PAGE>
Janus Aspen Worldwide Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical Instruments - 0.1%
16,400 Boston Scientific Corp.* $ 1,007,575
- --------------------------------------------------------------------------------
Medical Products - 1.5%
57,695 Biocompatibles International PLC*,** 1,249,724
11,099 Fresenius Medical Care A.G.* 797,456
313,425 Fresenius Medical Care A.G. (ADR)*,** 9,128,503
163,862 Ortivus A.B.*,** 6,696,567
- --------------------------------------------------------------------------------
17,872,250
- --------------------------------------------------------------------------------
Metal Processors and Fabricator - 1.0%
561,355 Assa-Abloy A.B. - Class B** 11,470,479
56,135 Assa-Abloy A.B. - Class B New*,** 1,125,258
- --------------------------------------------------------------------------------
12,595,737
- --------------------------------------------------------------------------------
Money Center Banks - 8.1%
31,500 BankAmerica Corp. 2,033,719
227,368 Banque Nationale de Paris** 9,379,855
382,853 Barclays PLC** 7,595,212
43,300 Citicorp 5,220,356
52,093 Credit Suisse Group** 6,699,892
332,600 Deutsche Bank A.G.** 19,449,801
272,563 ING Groep N.V.** 12,589,534
996,570 Lloyds TSB Group PLC** 10,216,923
151,000 Mitsubishi Trust and Banking Co., Ltd ** 2,388,446
484,000 Mitsui Trust and Banking Co., Ltd.** 3,658,655
27,432 Societe Generale*,** 3,065,166
489,000 Sumitomo Trust & Banking Co., Ltd.** 5,256,225
7,936 UBS** 9,090,867
7,873 Unidanmark A/S - Class A 442,883
- --------------------------------------------------------------------------------
97,087,534
- --------------------------------------------------------------------------------
Mortgage Banks - 1.0%
210,468 Deutsche Pfandbrief und Hypothekenbank A.G.** 12,114,507
- --------------------------------------------------------------------------------
Motorcycle and Motor Scooter - 0%
6,680 Bajaj Auto, Ltd. (GDR)*,+ 224,448
- --------------------------------------------------------------------------------
Multi-Line Insurance - 2.2%
1,775 Baloise Holdings, Ltd.*,** 4,237,061
111,549 Pohjola Insurance Group - Class B** 3,307,220
24,523 Sampo Insurance Co., Ltd. - Class A** 2,384,195
147,984 Skandia Forsakrings A.B.** 5,454,394
28,607 Zurich Versicherungsgesellschaft** 11,400,807
- --------------------------------------------------------------------------------
26,783,677
- --------------------------------------------------------------------------------
Multilevel Direct Selling - 0%
2,850 Nu Skin Asia Pacific, Inc. - Class A* 75,525
- --------------------------------------------------------------------------------
Music - 0%
10,831 Polygram N.V.** 569,377
- --------------------------------------------------------------------------------
Office Automation and Equipment - 0.7%
166,000 Canon, Inc.** 4,526,085
48,700 Danka Business Systems PLC (ADR)** 1,990,613
15,885 Oce N.V.** 2,052,793
- --------------------------------------------------------------------------------
8,569,491
- --------------------------------------------------------------------------------
Office Furnishings - 1.1%
193,883 Koninklijke Ahrend Groep N.V.** 13,111,422
- --------------------------------------------------------------------------------
Oil - International Integrated - 0.3%
30,400 Tatneft (ADR)*,+ 3,222,400
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 2.2%
151,645 Elf Aquitaine S.A.** 16,376,082
151,423 MOL Magyar Olaj-es Gazipari Rt. (GDR)+ 3,388,090
198,750 YPF S.A. (ADR) 6,111,563
- --------------------------------------------------------------------------------
25,875,735
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.2%
34,725 Lukoil Holding (ADR) 2,708,550
- --------------------------------------------------------------------------------
Pharmacy Services - 0.1%
25,600 Omnicare, Inc. $ 803,200
- --------------------------------------------------------------------------------
Precious Metals - 0%
49,770 Johnson Matthey PLC** 479,599
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 0.5%
439,000 Tokio Marine & Fire Insurance Co.** 5,754,608
- --------------------------------------------------------------------------------
Publishing - Books - 0.2%
19,744 Wolters Kluwer N.V.** 2,408,392
- --------------------------------------------------------------------------------
Publishing - Newspapers - 0.1%
61,395 Pearson PLC** 710,660
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 1.7%
728,000 Mitsubishi Estate Co. Ltd.** 10,560,864
386,000 Mitsui Fudosan Co., Ltd.** 5,329,720
58,332 NK Cityfastigheter A.B.*,**,+ 414,912
316,497 Tornet Fastighets A.B.** 3,724,756
- --------------------------------------------------------------------------------
20,030,252
- --------------------------------------------------------------------------------
Recreational Vehicles - 0%
17,000 Yamaha Motor Co., Ltd.** 169,361
- --------------------------------------------------------------------------------
Recycling - 0.4%
207,147 Tomra Systems A.S.A. 4,244,355
- --------------------------------------------------------------------------------
Retail - Apparel and Shoes - 0%
7,894 Cortefiel, S.A. 345,131
- --------------------------------------------------------------------------------
Retail - Diversified - 0.2%
30,800 Ryohin Keikaku Co., Ltd.** 2,433,207
- --------------------------------------------------------------------------------
Retail - Jewelry - 0.1%
3,607 TAG Heuer International S.A.*,** 541,848
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 0.1%
51,000 Isetan Co.** 632,876
- --------------------------------------------------------------------------------
Retail - Pubs - 0.2%
101,901 Wetherspoon (J.D.) PLC** 2,281,037
- --------------------------------------------------------------------------------
Retail - Regional Department Stores - 0.1%
194,690 Harvey Nichols PLC**,+ 916,984
- --------------------------------------------------------------------------------
Retail - Restaurants - 0.9%
187,936 Tele Pizza, S.A.* 11,091,887
- --------------------------------------------------------------------------------
Rubber - Tires - 0.7%
109,402 Compagnie Generale des Etablissements
Michelin - Class B** 6,576,118
680,618 Pirelli S.p.A. 1,714,045
- --------------------------------------------------------------------------------
8,290,163
- --------------------------------------------------------------------------------
Satellite Telecommunications - 0.1%
55,450 Globalstar Telecommunications, Ltd.* 1,698,156
- --------------------------------------------------------------------------------
Security Services - 0.6%
149,740 Prosegur Companhia de Seguridad S.A. 1,832,678
210,288 Securitas A.B. - Class B** 5,928,678
- --------------------------------------------------------------------------------
7,761,356
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.5%
29,337 Credit Communal Holding/Dexia+ 3,154,033
31,529 Dexia France** 3,071,842
- --------------------------------------------------------------------------------
6,225,875
- --------------------------------------------------------------------------------
Super-Regional Banks - 0.7%
31,450 Wells Fargo & Co. 8,475,775
- --------------------------------------------------------------------------------
Telecommunication Equipment - 1.9%
35,413 Alcatel Alsthom** 4,439,491
76,800 Lucent Technologies, Inc. 5,534,400
71,809 Oy Nokia A.B. - Class A** 5,419,281
69,550 Oy Nokia Corp. (ADR) - Class A** 5,129,313
84,339 Tandberg A.S.A.* 898,597
214,784 Tandberg Television A.S.A.* 1,598,970
- --------------------------------------------------------------------------------
23,020,052
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 20
<PAGE>
Janus Aspen Worldwide Growth Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Telecommunication Services - 2.9%
576,527 COLT Telecom Group PLC*,**$ 2,964,898
6,923,325 Freepages Group PLC*,** 4,148,096
194,950 Nortel Inversora S.A.(ADR) 5,288,019
38,995 SK Telecom Co., Ltd. (ADR) 392,391
1,056,722 Stet Societa' Finanziaria Telefonica S.p.A.* 6,149,047
1,031,493 Telecom Italia S.p.A. 3,306,961
134,505 Telefonaktiebolaget L.M. Ericsson - Class B** 5,296,788
122,825 Telefonaktiebolaget L.M. Ericsson (ADR)
- Class B** 4,836,234
854,131 Telefonica del Peru S.A. - Class B 2,238,922
- --------------------------------------------------------------------------------
34,621,356
- --------------------------------------------------------------------------------
Telephone - Integrated - 3.0%
69,897 Hellenic Telecommunication Organization S.A.+ 1,642,568
2,170 Nippon Telegraph & Telephone Corp.** 20,859,909
41,400 Telecom Argentina Stet S.A. (ADR) 2,173,500
107,750 Telefonica de Argentina S.A. (ADR) 3,730,844
295,900 Telefonica del Peru S.A. (ADR) - Class B 7,748,881
- --------------------------------------------------------------------------------
36,155,702
- --------------------------------------------------------------------------------
Telephone - Local - 0.1%
21,900 Cincinnati Bell, Inc. 689,850
- --------------------------------------------------------------------------------
Television - 0.2%
71,025 CanWest Global Communications Corp 1,052,058
36,760 Central European Media Enterprises, Ltd. (ADR)*,** 955,760
- --------------------------------------------------------------------------------
2,007,818
- --------------------------------------------------------------------------------
Textile - Apparel - 0.3%
39,374 Wolford A.G. 3,821,468
- --------------------------------------------------------------------------------
Tobacco - 0.2%
228,000 PT Hanjaya Mandala Sampoerna 869,710
144,228 Souza Cruz S.A. 1,520,590
- --------------------------------------------------------------------------------
2,390,300
- --------------------------------------------------------------------------------
Traffic Management Systems - 0.1%
3,042,000 Shenzhen Expressway Co. - Class H*,+ 834,390
- --------------------------------------------------------------------------------
Transportation - Services - 0.8%
55,289 Koninklijke Nedlloyd Groep N.V.** 1,599,985
715,874 Stagecoach Holdings PLC** 7,553,660
- --------------------------------------------------------------------------------
9,153,645
- --------------------------------------------------------------------------------
Travel Services - 0.3%
1,161 Kuoni Reisen A.G. - Class B** 3,981,891
- --------------------------------------------------------------------------------
Total Common Stock (cost $941,156,564) 1,120,547,720
- --------------------------------------------------------------------------------
Preferred Stock - 2.3%
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 0.1%
649 Porsche A.G. 864,075
- --------------------------------------------------------------------------------
Brewery - 0.1%
1,593,000 Companhia Cervejaria Brahma* 1,213,378
- --------------------------------------------------------------------------------
Electric - Integrated - 0.5%
226,000 Centrais Electricas de Santa Catarina S.A. 335,888
108,780,000 Companhia Energetica de Minas Gerais 5,608,008
23,000,000 Companhia Paranaense de Energia-Copel* 427,292
- --------------------------------------------------------------------------------
6,371,188
- --------------------------------------------------------------------------------
Medical Products - 0.4%
20,565 Fresenius A.G.*,** 4,673,504
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.3%
14,254,000 Petroleo Brasileiro S.A. 3,945,660
- --------------------------------------------------------------------------------
Telecommunication Equipment - 0%
4,000,000 Ericcson Telecomunicacoes S.A. $ 237,797
- --------------------------------------------------------------------------------
Telephone - Intergrated - 0.9%
68,425 Telecomunicacoes Brasileiras S.A. 10,383,494
- --------------------------------------------------------------------------------
Total Preferred Stock(cost $17,096,401) 27,689,096
- --------------------------------------------------------------------------------
Rights - 0%
- --------------------------------------------------------------------------------
Manufacturing - 0%
3,992 Azkoyen S.A.* (cost $0) 122,146
- --------------------------------------------------------------------------------
Total Investments (total cost $958,252,965) - 95.5% 1,148,358,962
- --------------------------------------------------------------------------------
Cash, Receivables, and Other Assets, net of Liabilities - 4.5% 53,946,523
- --------------------------------------------------------------------------------
Net Assets - 100% $1,202,305,485
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 21
<PAGE>
Janus Aspen Worldwide Growth Portfolio June 30, 1997 (unaudited)
Summary of Investments by Country
June 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 1.7% $ 19,452,537
Australia 0.0% 129,284
Austria 0.3% 3,821,468
Belgium 0.5% 6,083,212
Bermuda 0.2% 2,199,922
Brazil 3.1% 35,196,472
Canada 0.1% 1,052,057
Denmark 1.2% 14,050,918
Finland 3.0% 33,861,028
France 8.2% 94,660,535
Germany 10.8% 124,479,152
Greece 0.2% 1,642,567
Hong Kong 1.2% 13,746,067
Hungary 0.3% 3,388,089
India 0.5% 5,775,143
Indonesia 0.1% 869,709
Ireland 0.9% 10,069,496
Israel 0.2% 2,193,406
Italy 1.8% 21,029,560
Japan 12.4% 142,562,045
Luxembourg 0.3% 3,229,094
Mexico 1.4% 16,176,459
Netherlands 9.4% 107,771,521
Norway 1.2% 13,883,762
Peru 0.9% 9,987,803
Philippines 0.1% 1,103,479
Portugal 0.2% 2,097,598
Russia 0.6% 6,544,112
South Africa 0.1% 1,560,272
South Korea 0.0% 392,391
Spain 1.5% 17,698,510
Sweden 7.3% 84,202,402
Switzerland 7.7% 87,937,111
United Kingdom 16.0% 183,845,862
United States++ 6.6% 75,665,919
- --------------------------------------------------------------------------------
Total 100.0% $1,148,358,962
================================================================================
++ No Short-Term Securities held at June 30, 1997.
Forward Currency Contracts
Open at June 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/24/97 9,000,000 $14,970,600 ($ 225,000)
British Pound 7/28/97 13,500,000 22,453,200 (620,204)
Dutch Guilder 7/24/97 30,000,000 15,310,028 1,153,136
Dutch Guilder 8/11/97 6,500,000 3,321,580 167,229
Finnish Markka 7/18/97 4,000,000 771,382 86,619
Finnish Markka 7/28/97 4,200,000 810,670 79,123
Finnish Markka 11/12/97 1,768,000 343,982 7,090
French Franc 7/18/97 5,500,000 937,127 101,644
French Franc 8/4/97 60,000,000 10,235,938 720,364
French Franc 8/11/97 38,000,000 6,485,749 316,729
French Franc 11/28/97 30,000,000 5,158,184 127,927
German Deutschemark 7/17/97 5,000,000 2,870,594 314,323
German Deutschemark 7/21/97 10,000,000 5,743,166 527,488
German Deutschemark 7/23/97 300,000 172,325 14,556
German Deutschemark 7/24/97 12,536,000 7,201,287 557,045
German Deutschemark 8/11/97 7,500,000 4,314,312 257,186
German Deutschemark 9/11/97 2,600,000 1,498,991 32,493
Japanese Yen 7/18/97 1,237,000,000 10,799,070 112,587
Japanese Yen 8/12/97 600,000,000 5,238,230 (304,426)
Japanese Yen 9/11/97 100,000,000 873,075 (30,217)
Japanese Yen 11/4/97 950,000,000 8,294,879 230,653
Japanese Yen 12/18/97 250,000,000 2,183,008 79,436
South African Rand 11/3/97 4,248,000 906,898 (93,416)
Swedish Krona 7/18/97 25,000,000 3,243,425 389,239
Swedish Krona 7/23/97 22,000,000 2,854,844 274,601
Swedish Krona 7/28/97 23,662,000 3,071,232 296,433
Swiss Franc 7/18/97 6,000,000 4,116,356 330,493
Swiss Franc 7/23/97 2,500,000 1,716,326 83,271
Swiss Franc 7/24/97 6,000,000 4,119,747 152,236
Swiss Franc 8/4/97 7,000,000 4,813,312 195,991
Swiss Franc 8/11/97 6,000,000 4,129,103 104,895
Swiss Franc 9/12/97 7,000,000 4,835,256 7,694
Swiss Franc 11/12/97 1,020,000 709,812 21,371
- --------------------------------------------------------------------------------
Total $164,503,688 $5,468,589
================================================================================
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 22
<PAGE>
Janus Aspen Balanced Portfolio - Portfolio Manager, Blaine P. Rollins
Portfolio Performance
The financial markets posted substantial gains during the first half of the
year, ended June 30, 1997. After a brief decline in March, the S&P 500 Index
climbed to new records, and gained 20.60% for the period, while the Lehman
Brothers Government/Corporate Bond Index rose 2.74%. Janus Aspen Balanced
Portfolio appreciated 12.32%(1). All returns include reinvested dividends.
The powerful rally in stocks was supported by signs of moderate economic growth
in the second quarter, and by continued low inflation. During the period,
Portfolio strategy continued to concentrate on high-quality companies that
generate significant amounts of discretionary cash and use it prudently - often
to buy back their own shares. However, until the market decline in March, it was
hard to find many inexpensive opportunities. The spring sell-off cleared the
air, and I was able to establish new positions as well as add to our existing
holdings.
Given the volatility of interest rates, fixed-income maturities were kept
relatively short, mostly in the two- to five-year range. Our fixed-income
securities consist of a diverse mix of Treasuries, convertible bonds,
investment-grade and high-yield corporate bonds, and preferred stocks. Our
high-quality corporates and Treasuries provide income and portfolio stability,
while the convertibles and high-yield securities produce income and allow for
capital appreciation potential as the issuing companies' fundamentals improve.
Predictable earnings growth remains the focus of our equity holdings. Our
financial companies are especially exciting. Included in this group are new
positions in small thrifts, which are selling shares to the public, often very
inexpensively. Finally, the decline in technology stocks provided an opportunity
to add companies that have built durable, often dominant, market positions.
- --------------------------------------------------------------------------------
Portfolio Asset Mix June 30, 1997 December 31, 1996
Equities 52.8% 50.3%
Number of Stocks 145 103
Top 10 Equities 12.2% 24.0%
Fixed-Income Securities 23 32
U.S. Treasury Bonds 15.4% 15.7%
Investment-Grade Corp. Bonds 6.4% 16.0%
High-Yield Corporate Bonds 13.9% 5.6%
Preferred Stock 5.4% 3.6%
Cash & Cash Equivalents 6.1% 8.8%
- --------------------------------------------------------------------------------
Portfolio Highlights
During the first half, Dionex, which manufactures ion chromatography equipment
used in color spectrum analysis, continued to use excess cash flow to buy back
shares, while carefully managing its expenditures and investments. Consumer
lender Associates First Capital is also still exceeding our expectations in both
earnings and asset growth.
Discount broker Charles Schwab was increased, as were positions in small
financial institutions. Schwab continues to capture market share and gather
assets through the distribution of mutual funds and other financial products.
Many small financial institutions are cheap relative to their capital structure
and earnings potential. They are distributing extra cash to shareholders as
dividends or through share buybacks. Standard Financial is being acquired,
another example of the consolidation wave that is also rolling through the
industry.
Important additions this half included Nationwide Financial Services and DuPont.
Nationwide is a newly public company spun off from Nationwide Insurance. It is
one of the top three participants in the rapidly growing variable annuity
market. New senior management at DuPont is increasing returns by lowering costs,
fixing broken businesses, and allocating capital to high-return operations.
Both disability insurer UNUM and banking giant Wells Fargo were reduced. They
have been terrific performers. At Wells Fargo, the integration of First
Interstate, an important acquisition, was taking longer than we anticipated. I
took losses in Heritage Media and U.S. Satellite Broadcasting (USSB). Heritage
was a frustrating situation. I sold Heritage after it missed its earnings
target, but then the company was acquired. At USSB, subscriber demand for
satellite TV was less than I expected.
Dade International is an attractive high-yield bond we own. Dade makes
diagnostic equipment used by hospitals to test blood and tissue. Dade recently
purchased the diagnostic equipment division of Hoechst, a large German
conglomerate.
Current Outlook
It appears the economy has moderated after a first-quarter growth spurt. As long
as interest rates remain stable, our fixed-income holdings and financial stocks
should continue to perform well. Our financial companies have the potential to
achieve growth rates in the high teens, while trading at ten to twelve times our
1998 earnings estimates - or just 50% to 60% of the current market multiple.
In short, the long-term earnings outlook for the Portfolio remains very
encouraging.
Thank you for your continued investment in Janus Aspen Balanced Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 23
<PAGE>
Janus Aspen Balanced Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 52.8%
- --------------------------------------------------------------------------------
Apparel Manufacturers - 0.5%
14,350 St. John Knits, Inc. $ 774,900
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 0.3
14,975 Federal-Mogul Corp. 524,125
- --------------------------------------------------------------------------------
Cable Television - 0.2%
22,425 Tele-Communications, Inc. - Class A* 333,572
- --------------------------------------------------------------------------------
Chemicals - Diversified - 2.0%
34,125 Airgas, Inc.* 676,102
19,959 BASF A.G. 738,211
35,545 BOC Group PLC** 618,196
20,850 E.I. du Pont de Nemours and Co. 1,310,944
- --------------------------------------------------------------------------------
3,343,453
- --------------------------------------------------------------------------------
Commercial Banks - 2.1%
7,150 Cascade Bancorp 286,000
11,375 Chester Bancorp, Inc. 167,781
20,000 Community Financial Corp. 290,000
8,125 First Savings Bancorp, Inc. 180,781
7,500 Northern Trust Corp. 362,812
28,425 Star Banc Corp. 1,200,956
20,725 State Street Corp. 958,531
6,775 Sterling Bancorp 126,184
- --------------------------------------------------------------------------------
3,573,045
- --------------------------------------------------------------------------------
Commercial Services - 0.3%
11,600 First USA Paymentech, Inc.* 335,675
114 SGS Societe Generale de Surveillance 243,976
- --------------------------------------------------------------------------------
579,651
- --------------------------------------------------------------------------------
Computer Software - 0.9%
36,600 Parametric Technology Corp.* 1,557,787
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 0.5%
39,725 Wang Laboratories, Inc.* 846,639
- --------------------------------------------------------------------------------
Consumer Products - 0.3%
18,850 Gibson Greetings, Inc.* 424,125
- --------------------------------------------------------------------------------
Containers - Paper and Plastic - 0.4%
12,400 Sealed Air Corp.* 589,000
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 0.8%
10,800 Avon Products, Inc. 762,075
16,031 Rhone-Poulenc - Class A* 655,337
- --------------------------------------------------------------------------------
1,417,412
- --------------------------------------------------------------------------------
Cruise Lines - 1.0%
23,550 Carnival Corp. - Class A 971,437
20,675 Royal Caribbean Cruises, Ltd. 722,333
- --------------------------------------------------------------------------------
1,693,770
- --------------------------------------------------------------------------------
Diversified Financial Services - 0.8%
24,250 Associates First Capital Corp. - Class A 1,345,875
- --------------------------------------------------------------------------------
Diversified Operations - 2.4%
26,733 Asko OY - Class A 493,049
11,525 Minnesota Mining and Manufacturing Co. 1,175,550
26,064 Siebe PLC** 441,157
4,350 Unilever N.V. - N.Y. Shares 948,300
43,050 Westinghouse Electric Corp. 995,531
- --------------------------------------------------------------------------------
4,053,587
- --------------------------------------------------------------------------------
Electronic Components - 0.7%
14,284 Philips Electronics N.V. 1,025,013
1,700 Philips Electronics N.V. - N.Y. Shares 122,187
- --------------------------------------------------------------------------------
1,147,200
- --------------------------------------------------------------------------------
Electronic Safety Devices - 0%
1,275 Pittway Corp. - Class A 63,431
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.9%
38,850 Charles Schwab Corp. 1,580,709
- --------------------------------------------------------------------------------
Finance - Other Services - 0.8%
36,275 Equifax, Inc. 1,348,977
- --------------------------------------------------------------------------------
Food - Retail - 0.4%
13,500 Safeway, Inc.* $ 622,687
- --------------------------------------------------------------------------------
Hotels and Motels - 0.2%
21,775 Extended Stay America, Inc.* 342,956
- --------------------------------------------------------------------------------
Human Resources - 1.2%
13,050 Manpower, Inc. 580,725
31,925 Robert Half International, Inc.* 1,502,470
- --------------------------------------------------------------------------------
2,083,195
- --------------------------------------------------------------------------------
Instruments - Controls - 0.5%
13,975 Parker Hannifin Corp. 848,108
- --------------------------------------------------------------------------------
Instruments - Scientific - 2.7%
81,175 Dionex Corp.* 4,160,219
5,725 Perkin-Elmer Corp. 455,495
- --------------------------------------------------------------------------------
4,615,714
- --------------------------------------------------------------------------------
Life and Health Insurance - 5.5%
8,650 AFLAC, Inc. 408,712
43,500 ALLIED Life Financial Corp. 859,125
8,100 ARM Financial Group, Inc. - Class A* 162,000
5,225 Liberty Corp. 212,919
91,400 Nationwide Financial Services, Inc. - Class A* 2,427,812
9,900 Protective Life Corp. 497,475
17,325 Reinsurance Group of America 996,187
44,875 UICI* 1,323,812
35,800 UNUM Corp. 1,503,600
29,600 Western National Corp. 793,650
- --------------------------------------------------------------------------------
9,185,292
- --------------------------------------------------------------------------------
Macinery - Pumps - 0.2%
13,125 Pfeiffer Vacuum Technology A.G. (ADR)* 382,266
- --------------------------------------------------------------------------------
Manufacturing - 0.5%
15,550 Roper Industries, Inc. 806,656
- --------------------------------------------------------------------------------
Medical - Drugs - 1.2%
7,150 Bristol-Myers Squibb Co. 579,150
4,400 SmithKline Beecham PLC (ADR)** 403,150
7,600 Teva Pharmaceutical Industries, Ltd. (ADR) 492,100
4,400 Warner-Lambert Co. 546,700
- --------------------------------------------------------------------------------
2,021,100
- --------------------------------------------------------------------------------
Medical - HMO - 1.1%
34,950 United Healthcare Corp. 1,817,400
- --------------------------------------------------------------------------------
Medical Labs and Testing Services - 0.2%
20,950 Covance, Inc.* 404,597
- --------------------------------------------------------------------------------
Metal - Aluminum - 0.5%
11,000 Reynolds Metals Co. 783,750
- --------------------------------------------------------------------------------
Money Center Banks - 2.7%
32,075 Bank of New York Co., Inc. 1,395,262
7,400 BankAmerica Corp. 477,762
65,519 Barclays PLC** 1,299,796
3,975 Citicorp 479,236
7,649 Deutsche Bank A.G. 447,299
37,288 Lloyds TSB Group PLC** 382,280
- --------------------------------------------------------------------------------
4,481,635
- --------------------------------------------------------------------------------
Mortgage Banks - 0.2%
5,499 Deutsche Pfandbrief und Hypothekenbank A.G. 316,522
- --------------------------------------------------------------------------------
Multimedia - 0.3%
15,750 Meredith Corp. 456,750
- --------------------------------------------------------------------------------
Music - 0.3%
23,150 Steinway Musical Instruments, Inc.* 451,425
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 0.6%
11,175 Burlington Resources, Inc. 493,097
20,650 Union Pacific Resources Group, Inc. 513,669
- --------------------------------------------------------------------------------
1,006,766
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 24
<PAGE>
Janus Aspen Balanced Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.7%
9,900 Royal Dutch Petroleum Co. - N.Y. Shares $ 538,312
6,475 Texaco, Inc. 704,156
- --------------------------------------------------------------------------------
1,242,468
- --------------------------------------------------------------------------------
Oil Field Machinery and Equipment - 1.0%
19,550 Baker Hughes, Inc. 756,341
13,825 Smith International, Inc.* 839,869
- --------------------------------------------------------------------------------
1,596,210
- --------------------------------------------------------------------------------
Oil Refining and Marketing - 0.5%
146,949 ENI S.p.A. 829,875
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 1.6%
5,250 Foremost Corp. of America 314,344
129,000 Sumitomo Marine & Fire Insurance Co. 1,059,687
60,000 Tokio Marine & Fire Insurance Co. 786,507
5,000 Transatlantic Holdings, Inc. 496,250
1,950 W. R. Berkley Corp. 114,806
- --------------------------------------------------------------------------------
2,771,594
- --------------------------------------------------------------------------------
Publishing - Books - 0%
494 Wolters Kluwer N.V. 60,259
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 1.7%
18,000 AMLI Residential Properties Trust 423,000
45,825 Innkeepers USA Trust 687,375
6,650 Redwood Trust, Inc. 310,888
52,125 Walden Residential Properties, Inc. 1,335,703
- --------------------------------------------------------------------------------
2,756,966
- --------------------------------------------------------------------------------
Retail - Building Products - 0.3%
8,825 Fastenal Co. 432,425
- --------------------------------------------------------------------------------
Retail - Consumer Electronics - 0.5%
14,725 Tandy Corp. 824,600
- --------------------------------------------------------------------------------
Retail - Discount - 0.1%
7,900 TJX Companies, Inc. 208,363
- --------------------------------------------------------------------------------
Retail - Diversified - 0.1%
3,001 Vendex International N.V. 164,651
- --------------------------------------------------------------------------------
Retail - Hypermarkets - 0.4%
18,975 Costco Companies, Inc.* 623,803
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 1.9%
51,375 Dayton Hudson Corp. 2,732,508
8,250 J.C. Penney Co., Inc. 430,547
- --------------------------------------------------------------------------------
3,163,055
- --------------------------------------------------------------------------------
Retail - Restaurants - 0.2%
149,000 Restaurant Brands New Zealand, Ltd.*,+ 258,513
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 5.5%
6,500 Advantage Bancorp, Inc. 248,625
12,950 BostonFed Bancorp, Inc. 229,053
8,975 Calumet Bancorp, Inc.* 332,075
15,000 Cameron Financial Corp. 270,000
16,175 Catskill Financial Corp. 250,713
30,000 Empire Federal Bancorp, Inc. 431,250
10,000 FFLC Bancorp, Inc. 272,500
12,000 FFVA Financial Corp. 327,000
22,225 First Bell Bancorp, Inc. 372,269
12,725 First Defiance Financial Corp. 181,331
17,250 First Mutual Bancorp, Inc. 258,750
6,875 First Savings Bank of Washington Bancorp, Inc. 152,969
15,675 Flushing Financial Corp. 350,728
12,450 GA Financial, Inc. 234,994
14,000 Gateway Bancorp, Inc. 245,000
11,000 Home Bancorp 229,625
39,925 Home Bancorp of Elgin, Inc. 658,763
14,000 Jacksonville Bancorp, Inc. 210,875
4,625 JSB Financial, Inc. 200,031
13,375 Klamath First Bancorp, Inc. 255,797
6,900 Long Island Bancorp, Inc. 250,556
14,950 Mechanics Savings Bank* 282,181
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - continued
- --------------------------------------------------------------------------------
21,000 North Central Bancshares, Inc. $ 325,500
6,775 Ocean Financial Corp. 238,819
6,500 RCSB Financial, Inc. 311,188
12,300 Reliance Bancorp, Inc. 362,081
32,725 Roslyn Bancorp, Inc. 748,584
12,000 SFS Bancorp, Inc. 202,500
11,050 South Street Financial Corp. 182,325
14,700 Standard Financial, Inc. 360,150
15,000 Wells Financial Corp.* 225,000
- --------------------------------------------------------------------------------
9,201,232
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.2%
3,603 Dexia France** 351,037
- --------------------------------------------------------------------------------
Super-Regional Banks - 0.8%
4,716 Wells Fargo & Co. 1,270,962
- --------------------------------------------------------------------------------
Telecommunication Equipment - 0.4%
10,450 Lucent Technologies, Inc. 753,053
- --------------------------------------------------------------------------------
Telephone - Local - 0.9%
46,950 Cincinnati Bell, Inc. 1,478,925
- --------------------------------------------------------------------------------
Television - 0.4%
21,850 Young Broadcasting Corp. - Class A* 710,125
- --------------------------------------------------------------------------------
Tobacco - 1.3%
49,025 Philip Morris Companies, Inc. 2,175,484
- --------------------------------------------------------------------------------
Transportation - Truck - 0.4%
46,100 Consolidated Freightways Corp.* 754,888
- --------------------------------------------------------------------------------
Travel Services - 0.7%
25,836 Airtours PLC** 498,357
206 Kuoni Reisen A.G. - Class B 706,520
- --------------------------------------------------------------------------------
1,204,877
- --------------------------------------------------------------------------------
Total Common Stock (total cost $77,703,535) 88,657,442
- --------------------------------------------------------------------------------
Corporate Bonds - 20.3%
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.7%
$1,200,000 Lockheed Martin Corp., 6.55% company
guaranteed unsecured notes, due 5/15/99 1,204,500
- --------------------------------------------------------------------------------
Commercial Banks - 2.4%
First Nationwide Holdings, Inc.:
3,390,000 10.625%, senior subordinated notes,
due 10/1/03 3,737,475
250,000 9.125%, senior subordinated notes,
due 1/15/03 258,750
- --------------------------------------------------------------------------------
3,996,225
- --------------------------------------------------------------------------------
Computers - Mainframe - 1.2%
2,000,000 IBM Corp., 6.375%
global notes, due 6/15/00 1,995,000
- --------------------------------------------------------------------------------
Consulting Services - 0.3%
500,000 Quintiles Transnational Corp., 4.25%
subordinated notes, due 5/31/00+ 535,625
- --------------------------------------------------------------------------------
Containers - Metal and Glass - 0.8%
1,350,000 Owens-Illinois, Inc., 7.85%
senior notes, due 5/15/04 1,368,563
- --------------------------------------------------------------------------------
Electronic Components - Semiconductors - 0.6%
1,011,000 Taiwan Semiconductor, zero coupon
bank guaranteed notes, due 7/3/02+ 1,035,011
- --------------------------------------------------------------------------------
Engineering - Research and Development - 1.3%
2,150,000 Intertek Finance PLC, 10.25%
senior subordinated notes, due 11/1/06 2,225,250
- --------------------------------------------------------------------------------
Finance - Consumer Loans - 1.2%
2,000,000 Associates Corp. N.A., 6.75%
senior notes, due 7/15/01 2,000,000
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.1%
100,000 Merrill Lynch & Co., Inc., 6.375%
notes, due 3/30/99 100,125
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 25
<PAGE>
Janus Aspen Balanced Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Finance - Leasing Companies - 1.1%
$1,800,000 Ryder Trucks, Inc., 10.00%
senior subordinated notes, due 12/1/06 $ 1,849,500
- --------------------------------------------------------------------------------
Finance - Other Services - 0.6%
1,000,000 Sears Roebuck Acceptance Corp., 6.50%
notes, due 6/15/00 996,250
- --------------------------------------------------------------------------------
Food - Retail - 4.2%
250,000 Pathmark Stores, Inc., 11.625%
subordinated notes, due 6/15/02 253,125
5,800,000 Smith's Food & Drug Centers, Inc., 11.25%
senior subordinated notes, due 5/15/07 6,800,500
- --------------------------------------------------------------------------------
7,053,625
- --------------------------------------------------------------------------------
Medical Labs and Testing Services - 0.6%
925,000 Dade International, Inc., 11.125%
senior subordinated notes, Series B,
due 5/1/06 1,029,063
- --------------------------------------------------------------------------------
Multimedia - 1.2%
2,000,000 Walt Disney Co. (The), 6.375%
senior notes, due 3/30/01 1,982,500
- --------------------------------------------------------------------------------
Oil and Gas Drilling - 0.1%
100,000 Consolidated Natural Gas Co., 5.875%
debentures, due 10/1/98 99,625
- --------------------------------------------------------------------------------
Paint and Related Products - 0.1%
190,000 Sherwin-Williams Co., 6.25%
notes, due 2/1/00 189,050
- --------------------------------------------------------------------------------
Shipbuilding - 0.6%
Newport News Shipbuilding, Inc.:
750,000 8.625%, senior notes, due 12/1/06 770,625
250,000 9.25%, senior subordinated notes, due 12/1/06 260,000
- --------------------------------------------------------------------------------
1,030,625
- --------------------------------------------------------------------------------
Television - 2.0%
1,250,000 Sinclair Broadcast Group, Inc., 10.00%,
senior subordinated notes, due 9/30/05 1,293,750
2,000,000 Young Broadcasting, Inc., 9.00%
company guaranteed notes, due 1/15/06 1,995,000
- --------------------------------------------------------------------------------
3,288,750
- --------------------------------------------------------------------------------
Transportation - Railroad - 1.2%
2,000,000 Union Pacific Corp., 6.25%
notes, due 3/15/99 1,992,500
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $33,330,659) 33,971,787
- --------------------------------------------------------------------------------
U.S. Government Obligations - 15.4%
U.S. Treasury Notes:
1,250,000 6.125%, due 5/15/98 1,253,888
4,030,000 5.50%, due 11/15/98 4,004,651
4,100,000 6.375%, due 5/15/99 4,119,926
6,600,000 6.25%, due 5/31/99 6,617,094
2,900,000 5.875%, due 2/15/00 2,875,930
6,500,000 6.625%, due 4/30/02 6,557,720
500,000 5.875%, due 11/15/05 478,155
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (amortized cost $25,875,673) 25,907,364
- --------------------------------------------------------------------------------
Preferred Stock - 5.4%
- --------------------------------------------------------------------------------
Cruise Lines - 0.6%
15,100 Royal Caribbean Cruises, Ltd., 7.25% 932,425
- --------------------------------------------------------------------------------
Insurance Brokers - 0.3%
23,000 Hartford Capital l - Series A, 7.70%,
due 2/28/16 572,125
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.5%
15,500 Unocal Corp. 6.25% 871,875
- --------------------------------------------------------------------------------
Real Estate Investment and Management - 0.3%
11,484 Insignia Financial Group, Inc. - Class A, 6.50%+ 531,135
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 0.2%
14,775 Walden Residential Properties, Inc.,
Series S, 9.20% 373,069
- --------------------------------------------------------------------------------
Retail - Restaurants - 0.9%
26,625 Wendy's International, Inc., Series A, 5.00% $ 1,560,891
- --------------------------------------------------------------------------------
Telephone - Local - 1.7%
44,045 Salomon Inc. Exchangeable Notes
(Cincinnati Bell, Inc.), 6.25% 2,807,869
- --------------------------------------------------------------------------------
Toys - 0.1%
15,550 Mattel, Inc., .4125% 219,644
- --------------------------------------------------------------------------------
Transportation - Truck - 0.8%
23,125 CNF Trust I, Series A, 5.00% 1,295,000
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $8,627,219) 9,164,033
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 1.8%
$3,000,000 AVCO Financial Service
5.58%, 8/26/97 (amortized cost $2,973,960) 2,973,960
- --------------------------------------------------------------------------------
U.S. Government Agency - 5.2%
8,700,000 Federal Home Loan Mortgage Corp.
5.75%, 7/1/97 (amortized cost $8,700,000) 8,700,000
- --------------------------------------------------------------------------------
Warrants - 0%
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 0%
14,775 Walden Residential Properties, Inc.
(cost $7,388) 20,316
- --------------------------------------------------------------------------------
Total Investments (total cost $157,218,434) - 100.9% 169,394,902
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.9%) (1,499,063)
- --------------------------------------------------------------------------------
Net Assets - 100% $167,895,839
- --------------------------------------------------------------------------------
Summary of Investments by Country
June 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Finland 0.3% $ 493,049
France 0.6% 1,006,374
Germany 1.1% 1,884,298
Israel 0.3% 492,100
Japan 1.1% 1,846,194
Netherlands 1.4% 2,320,411
New Zealand 0.1% 258,513
Switzerland 0.6% 950,496
United Kingdom 2.1% 3,642,936
United States++ 92.4% 156,500,531
- --------------------------------------------------------------------------------
Total 100.0% $ 169,394,902
================================================================================
++ Includes Short-Term Securities (85.5% excluding Short-Term Securities)
Forward Currency Contracts
Open at June 30, 1997
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 7/28/97 725,000 $1,205,820 ($ 33,307)
British Pound 8/20/97 350,000 581,700 (23,693)
French Franc 10/10/97 2,100,000 359,842 8,935
- --------------------------------------------------------------------------------
Total $2,147,362 ($ 48,065)
================================================================================
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 26
<PAGE>
Janus Aspen Equity Income Portfolio - Portfolio Manager, Blaine P. Rollins
Performance
Janus Aspen Equity Income Portfolio opened on May 1, 1997. Before discussing
Portfolio performance, I would like to take this opportunity to thank each of
you for your investment with Janus. The Portfolio performed well during its
first two months, but my perspective is really long-term. I want to purchase
great individual businesses, either their stocks or their fixed-income
instruments, at reasonable prices. I also intend to carefully analyze
risk-reward ratios in income producing securities.
Since inception, Janus Aspen Equity Income Portfolio returned 16.40% for the
period ended June 30, 1997. The Standard & Poor's 500 Index gained 10.83% for
the same period.(1) Both returns include reinvested dividends.
A very dramatic and broad-based rally got underway in April, after signs of
moderate economic growth began to appear and inflation remained very low. So the
Portfolio opened during a very robust period for the financial markets.
- --------------------------------------------------------------------------------
Portfolio Asset Mix June 30, 1997
Equities 94.6%
Number of Stocks 118
Top 10 Equities 28.8%
Preferred Stock 4.3%
Cash & Cash Equivalents 1.1%
- --------------------------------------------------------------------------------
Stock Highlights
Companies in the Portfolio tend to share four major characteristics: predictable
earnings, shareholder-friendly management, the ability to generate excellent
cash flow, and a strong record of increasing profitability. I found attractive
individual opportunities in financial and technology stocks, and in several
preferred issues.
A number of our equity holdings produced good results and have excellent
fundamentals. Dionex, for example, dominates the market for ion chromatography
equipment, which uses color spectrum analysis to identify chemical components.
The company generates good cash flow and is repurchasing its own stock. At
Unilever, margins are continuing to improve and the company is spinning off its
chemical unit to focus on consumer products. New senior management at DuPont is
increasing returns by lowering costs and fixing broken businesses. Management is
allocating capital to high-return operations, restructuring divisions, and
considering acquisitions and divestitures.
Among our financial holdings, small thrifts are very attractive. Many are
selling shares to the public at very inexpensive prices relative to their
earnings potential and conservative capitalization. For example, Roslyn Bancorp
has an equity to asset ratio of nearly 30%. (In other words, roughly 30% of
Roslyn's assets are equity.) A typical ratio is around 7%. Roslyn, as well as
many other of these small banks and thrifts, is distributing extra cash to
shareholders as special dividends or in the form of share buybacks. There is
also a powerful wave of consolidation underway in the industry.
On the income side, Royal Dutch Petroleum and Unocal offer good dividends plus
the potential for capital appreciation. The companies are focusing on the
higher-margin exploration and production side of the oil business rather than on
lower-margin refining and marketing operations.
Parametric Technology, the world's largest developer and marketer of
computer-aided design and manufacturing software, was down moderately for the
period. Investors were concerned about increasing competition in the
fast-growing Japanese market. I believe these concerns are overdone and continue
to hold the stock.
Current Outlook
Economic growth now appears to be stable after a very strong first quarter. As
long as inflation remains low and corporate profits continue to be robust,
stocks and fixed-income securities should make progress. In the long run, the
more predictable earnings of our high-quality businesses should allow the
Portfolio to participate in good markets while softening the effects of any
negative market surprises.
Once again, thank you for your investment in Janus Aspen Equity Income
Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 27
<PAGE>
Janus Aspen Equity Income Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 94.6%
- --------------------------------------------------------------------------------
Aerospace and Defense - 0.4%
75 DONCASTERS PLC* $ 1,734
- --------------------------------------------------------------------------------
Airlines - 1.7%
275 Ryanair Holdings PLC (ADR)* 7,459
- --------------------------------------------------------------------------------
Apparel Manufacturers - 0.3%
25 St. John Knits, Inc. 1,350
- --------------------------------------------------------------------------------
Cable Television - 0.6%
175 Tele-Communications, Inc. - Class A* 2,603
- --------------------------------------------------------------------------------
Chemicals - Diversified - 1.5%
75 Airgas, Inc.* 1,486
29 BASF A.G. 1,073
72 BOC Group PLC 1,252
40 E.I. du Pont de Nemours and Co. 2,515
- --------------------------------------------------------------------------------
6,326
- --------------------------------------------------------------------------------
Commercial Banks - 0.8%
50 First Savings Bancorp, Inc. 1,113
25 Star Banc Corp. 1,056
75 Sterling Bancorp 1,397
- --------------------------------------------------------------------------------
3,566
- --------------------------------------------------------------------------------
Commercial Services - 0.5%
25 First USA Paymentech, Inc.* 723
20 Quintiles Transnational Corp.* 1,393
- --------------------------------------------------------------------------------
2,116
- --------------------------------------------------------------------------------
Computer Software - 6.3%
141 BETA Systems Software A.G.* 16,669
250 Parametric Technology Corp.* 10,641
- --------------------------------------------------------------------------------
27,310
- --------------------------------------------------------------------------------
Computers - Information Technology - 3.2%
800 RWD Technologies, Inc.* 13,800
- --------------------------------------------------------------------------------
Computers - Integrated Systems - 0.6%
125 Wang Laboratories, Inc.* 2,664
- --------------------------------------------------------------------------------
Consumer Products - 0.7%
125 Gibson Greetings, Inc.* 2,813
- --------------------------------------------------------------------------------
Cruise Lines - 3.6%
140 Carnival Corp. - Class A 5,775
275 Royal Caribbean Cruises, Ltd. 9,608
- --------------------------------------------------------------------------------
15,383
- --------------------------------------------------------------------------------
Diversified Operations - 4.9%
202 Asko OY - Class A 3,726
45 Minnesota Mining and Manufacturing Co. 4,590
46 Rentokil Initial PLC 162
237 Siebe PLC 4,011
30 Unilever N.V. - N.Y. Shares 6,540
100 Westinghouse Electric Corp. 2,313
- --------------------------------------------------------------------------------
21,342
- --------------------------------------------------------------------------------
Electronic Components - 2.1%
54 Philips Electronics N.V. 3,875
60 Texas Instruments, Inc. 5,044
- --------------------------------------------------------------------------------
8,919
- --------------------------------------------------------------------------------
Electronic Safety Devices - 1.0%
90 Pittway Corp. - Class A 4,478
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 0.2%
25 Charles Schwab Corp. 1,017
- --------------------------------------------------------------------------------
Finance - Other Services - 0.9%
100 Equifax, Inc. 3,719
- --------------------------------------------------------------------------------
Food - Retail - 1.1%
100 Safeway, Inc.* 4,613
- --------------------------------------------------------------------------------
Hotels and Motels - 0.3%
75 Extended Stay America, Inc.* 1,181
- --------------------------------------------------------------------------------
Human Resources - 1.1%
25 Manpower, Inc. $ 1,113
75 Robert Half International, Inc.* 3,530
- --------------------------------------------------------------------------------
4,643
- --------------------------------------------------------------------------------
Instruments - Controls - 2.1%
150 Parker Hannifin Corp. 9,103
- --------------------------------------------------------------------------------
Instruments - Scientific - 1.8%
150 Dionex Corp.* 7,688
- --------------------------------------------------------------------------------
Lasers - Systems and Components - 0.3%
75 Rofin-Sinar Technologies, Inc.* 1,434
- --------------------------------------------------------------------------------
Life and Health Insurance - 10.3%
25 AFLAC, Inc. 1,181
75 ALLIED Life Financial Corp. 1,481
1,000 ARM Financial Group, Inc. - Class A* 20,000
25 Equitable of Iowa Companies 1,400
200 Hartford Life, Inc. - Class A* 7,500
50 Nationwide Financial Services, Inc. - Class A* 1,328
25 Reinsurance Group of America 1,438
80 UICI* 2,360
30 UNUM Corp. 1,260
250 Western National Corp. 6,703
- --------------------------------------------------------------------------------
44,651
- --------------------------------------------------------------------------------
Machinery - Pumps - 0.3%
50 Pfeiffer Vacuum Technology A.G. (ADR)* 1,456
- --------------------------------------------------------------------------------
Manufacturing - 0.6%
50 Roper Industries, Inc. 2,594
- --------------------------------------------------------------------------------
Medical - Drugs - 1.5%
25 Bristol-Myers Squibb Co. 2,025
21 Teva Pharmaceutical Industries, Ltd. (ADR) 1,360
25 Warner-Lambert Co. 3,106
- --------------------------------------------------------------------------------
6,491
- --------------------------------------------------------------------------------
Medical - HMO - 0.8%
70 United Healthcare Corp. 3,640
- --------------------------------------------------------------------------------
Medical Instruments - 0.2%
15 Sofamor Danek Group, Inc.* 686
- --------------------------------------------------------------------------------
Medical Labs and Testing Services - 0.7%
160 Covance, Inc.* 3,090
- --------------------------------------------------------------------------------
Metal - Aluminum - 1.4%
85 Reynolds Metals Co. 6,056
- --------------------------------------------------------------------------------
Money Center Banks - 1.4%
25 Bank of New York Co., Inc. 1,087
20 BankAmerica Corp. 1,291
10 Citicorp 1,206
21 Deutsche Bank A.G. 1,228
120 Lloyds TSB Group PLC 1,230
- --------------------------------------------------------------------------------
6,042
- --------------------------------------------------------------------------------
Multilevel Direct Selling - 0.3%
25 Amway Asia Pacific, Ltd. 1,091
- --------------------------------------------------------------------------------
Multimedia - 0.3%
50 Meredith Corp. 1,450
- --------------------------------------------------------------------------------
Music - 1.3%
300 Steinway Musical Instruments, Inc.* 5,850
- --------------------------------------------------------------------------------
Office Furnishings - 0.7%
125 Knoll, Inc.* 2,969
- --------------------------------------------------------------------------------
Oil - Field Services - 0.7%
150 Hanover Compressor Co.* 2,925
- --------------------------------------------------------------------------------
Oil and Gas Drilling - 2.6%
325 Santa Fe International Corp.* 11,050
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 0.4%
75 Union Pacific Resources Group, Inc. 1,866
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 28
<PAGE>
Janus Aspen Equity Income Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 2.0%
80 Royal Dutch Petroleum Co. - N.Y. Shares $ 4,350
30 Texaco, Inc. 3,262
25 Unocal Corp. 970
- --------------------------------------------------------------------------------
8,582
- --------------------------------------------------------------------------------
Oil Field Machinery and Equipment - 1.8%
25 Baker Hughes, Inc. 967
110 Smith International, Inc.* 6,682
- --------------------------------------------------------------------------------
7,649
- --------------------------------------------------------------------------------
Oil Refining and Marketing - 1.0%
728 ENI S.p.A. 4,122
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 2.7%
1,000 Sumitomo Marine & Fire Insurance Co. 8,215
35 Transatlantic Holdings, Inc. 3,474
- --------------------------------------------------------------------------------
11,689
- --------------------------------------------------------------------------------
Publishing - Books - 1.0%
125 Scholastic Corp.* 4,375
- --------------------------------------------------------------------------------
Real Estate Investment Trusts - 1.6%
300 Innkeepers USA Trust 4,500
100 Walden Residential Properties, Inc. 2,562
- --------------------------------------------------------------------------------
7,062
- --------------------------------------------------------------------------------
Retail - Building Products - 0.3%
25 Fastenal Co. 1,225
- --------------------------------------------------------------------------------
Retail - Consumer Electronics - 1.6%
125 Tandy Corp. 7,000
- --------------------------------------------------------------------------------
Retail - Discount - 1.4%
100 Family Dollar Stores, Inc. 2,725
25 TJX Companies, Inc. 659
80 Wal-Mart Stores, Inc. 2,705
- --------------------------------------------------------------------------------
6,089
- --------------------------------------------------------------------------------
Retail - Diversified - 0.2%
18 Vendex International N.V. 988
- --------------------------------------------------------------------------------
Retail - Hypermarkets - 1.3%
165 Costco Companies, Inc.* 5,424
- --------------------------------------------------------------------------------
Retail Jewelry - 0.4%
100 TAG Heuer International S.A. (ADR)* 1,506
- --------------------------------------------------------------------------------
Retail - Major Department Stores - 3.8%
285 Dayton Hudson Corp. 15,158
25 J.C. Penney Co., Inc. 1,305
- --------------------------------------------------------------------------------
16,463
- --------------------------------------------------------------------------------
Retail - Regional Department Stores - 2.1%
175 Fred Meyer, Inc.* 9,045
- --------------------------------------------------------------------------------
Retail - Restaurants - 0.6%
100 Wendy's International, Inc. 2,594
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 6.3%
100 Advantage Bancorp, Inc. 3,825
25 Calumet Bancorp, Inc.* 925
125 FSF Financial Corp. 2,172
275 Home Bancorp of Elgin, Inc. 4,537
50 JSB Financial, Inc. 2,162
250 Little Falls Bancorp, Inc. 3,906
75 Mechanics Savings Bank* 1,416
75 North Central Bancshares, Inc. 1,162
25 Norwich Financial Corp. 541
35 Ocean Financial Corp. 1,234
225 Roslyn Bancorp, Inc. 5,147
- --------------------------------------------------------------------------------
27,027
- --------------------------------------------------------------------------------
Special Purpose Banks - 0.3%
12 Dexia France 1,169
- --------------------------------------------------------------------------------
Super-Regional Banks - 0.3%
5 Wells Fargo & Co. $ 1,347
- --------------------------------------------------------------------------------
Telecommunication Equipment - 0.8%
50 Lucent Technologies, Inc. 3,603
- --------------------------------------------------------------------------------
Telephone - Local - 1.5%
200 Cincinnati Bell, Inc. 6,300
- --------------------------------------------------------------------------------
Television - 0.6%
25 Univision Communications, Inc.* 978
50 Young Broadcasting Corp. - Class A* 1,625
- --------------------------------------------------------------------------------
2,603
- --------------------------------------------------------------------------------
Tobacco - 1.2%
120 Philip Morris Companies, Inc. 5,325
- --------------------------------------------------------------------------------
Transportation - Truck - 1.1%
100 CNF Transportation, Inc. 3,225
100 Consolidated Freightways Corp.* 1,637
- --------------------------------------------------------------------------------
4,862
- --------------------------------------------------------------------------------
Travel Services - 1.2%
100 Airtours PLC 1,929
1 Kuoni Reisen A.G. - Class B 3,430
- --------------------------------------------------------------------------------
5,359
- --------------------------------------------------------------------------------
Total Common Stock (cost $369,190) 408,576
- --------------------------------------------------------------------------------
Preferred Stock - 4.3%
- --------------------------------------------------------------------------------
Cruise Lines - 2.2%
150 Royal Caribbean Cruises, Ltd., 7.25% 9,263
- --------------------------------------------------------------------------------
Retail - Restaurants - 0.3%
25 Wendy's International, Inc. - Series A, 5.00% 1,466
- --------------------------------------------------------------------------------
Telephone - Local - 1.1%
75 Salomon, Inc. Exchangeable Notes,
(Cincinnati Bell, Inc.), 6.25% 4,781
- --------------------------------------------------------------------------------
Toys - 0.7%
225 Mattel, Inc., .4125% 3,178
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $18,093) 18,688
- --------------------------------------------------------------------------------
U.S. Government Agency - 8.1%
$35,000 Federal Home Loan Mortgage Corp.
5.75%, 7/1/97 (amortized cost $35,000) 35,000
- --------------------------------------------------------------------------------
Total Investments (total cost $422,283) - 107.0% 462,264
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (7.0%) (30,319)
- --------------------------------------------------------------------------------
Net Assets - 100% $431,945
- --------------------------------------------------------------------------------
Summary of Investments by Country
June 30, 1997
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Finland 0.8% $ 3,725
France 0.3% 1,169
Germany 4.4% 20,426
Hong Kong 0.2% 1,091
Ireland 1.6% 7,459
Israel 0.3% 1,360
Italy 0.9% 4,122
Japan 1.8% 8,214
Netherlands 3.4% 15,753
Switzerland 1.1% 4,936
United Kingdom 2.2% 10,318
United States++ 83.0% 383,691
- --------------------------------------------------------------------------------
Total 100.0% $462,264
================================================================================
++ Includes Short-Term Securities (75.4% excluding Short-Term Securities)
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 29
<PAGE>
Janus Aspen Flexible Income Portfolio
Portfolio Managers, Sandy R. Rufenacht and Ronald V. Speaker
Performance Review
During the first half of the year ended June 30, 1997, Janus Aspen Flexible
Income Portfolio outperformed the Lehman Brothers Government/Corporate Bond
Index, gaining 4.35%, versus a gain of 2.74% for the Lehman Index.(1) Both
returns included reinvested dividends.
Diversity remains Janus Aspen Flexible Income Portfolio's greatest asset, and
was the major reason we outperformed the Index. The Portfolio invested in a
range of fixed-income securities, including investment-grade corporate and
high-yield/high-risk (junk) bonds.
The bond market continued to trade within a clearly defined range during the
last six months. The yield on the benchmark 30-year Treasury bond stayed between
7.25% and 6.50%. In the second quarter, the economy began to slow from its rapid
growth of the previous three months. The prospect of continued moderate economic
growth, combined with low inflation, sparked a rally in the financial markets.
Bonds and stocks rose sharply, and bond yields finished the period near the low
end of the trading range. High-yield bonds were again one of the best-performing
market sectors, helped along by stable interest rates and the very powerful rise
in equities.
The Portfolio
As rates fluctuated we adjusted the Portfolio's holdings. We became more
defensive when rates rose, and when they declined we increased the Portfolio's
weighted average maturity and lowered its cash position to take advantage of
rising prices. In the high-yield area, the exposure to "cushion bonds" remained
significant. Cushion bonds are high-yield bonds that are likely to be redeemed
before they mature. They carry generous yields but tend to have less price
volatility.
- --------------------------------------------------------------------------------
Portfolio Asset Mix June 30, 1997 December 31, 1996
Investment-Grade Corporate Bonds 26.4% 49.5%
High-Yield/High-Risk Bonds 43.5% 27.0%
U.S. Government Bonds 16.6% 11.9%
Preferred Stock 2.3% 1.3%
Cash & Cash Equivalents 11.2% 10.3%
- --------------------------------------------------------------------------------
Portfolio Profile
Weighted Avg. Maturity 8.2 Yrs. 8.4 Yrs
Average Modified Duration* 5.4 Yrs. 5.5 Yrs
30-Day Avg. Yield
Institutional Shares 7.16% 7.39%
Retirement Shares 6.65% N/A
Avg. Rating BBB+ BBB
- --------------------------------------------------------------------------------
* A theoretical measure of price volatility.
Our investment-grade corporate bonds include familiar names such as Coca Cola,
Ford, and Walt Disney.
Among our high-yield holdings, Allbritton is an example of what we look for in a
cushion bond. Allbritton owns six television stations on the east coast.
According to our analysis, the company's ABC affiliate in Washington, D.C.,
provides reasonable collateral by itself for the debt offering we own, which
carries an 11.5% coupon and is callable in August. Albritton recently issued
9.75% bonds, so we believe our bonds could be redeemed early.
Ryder Truck Rental and Dade International are other high-yield issuers with
exciting potential. Ryder is well-managed, has great brand recognition, and is
restructuring its financial operation to increase cash and pay down debt. Dade
International makes diagnostic equipment used by hospitals to test blood and
tissue. Dade recently purchased the diagnostic equipment division of Hoechst, a
large German conglomerate.
Another notable development among our high-yield companies was the acquisition
of Smith's Food and Drug Centers by Fred Meyer. There is a trend toward
consolidation in the supermarket industry as regional operators like Smith are
being acquired by larger chains.
The Treasury and corporate sectors of the Portfolio were little changed during
the first half. Treasuries were kept at ten-year maturities to preserve a
competitive yield and avoid the volatility of longer bonds.
Looking Ahead
We are comfortable with the bond market in its current trading range, where the
Portfolio's flexibility has proven effective in dealing with interest rate
changes. We intend to continue using the volatility in interest rates to take
advantage of specific opportunities. We also will spend a good deal of time on
the road in the second half of the year, trying to add value to our corporate
holdings, especially our high-yield positions, through firsthand, detailed
research. U.S. business is now highly flexible, which enables it to adapt
quickly to changes in interest rates and also helps keep the U.S. economy on an
even keel. As long as this equilibrium is in place, the climate for bonds should
remain positive.
Thank you for your continued investment in Janus Aspen Flexible Income
Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 30
<PAGE>
Janus Aspen Flexible Income Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Principal Amount Market Value
- --------------------------------------------------------------------------------
Corporate Bonds - 69.9%
- --------------------------------------------------------------------------------
Airlines - 0.4%
$150,000 ValuJet, Inc., 10.25%
senior notes, due 4/15/01 $ 142,125
- --------------------------------------------------------------------------------
Automotive - Cars and Light Trucks - 4.5%
850,000 Ford Motor Co., 7.25%
notes, due 10/1/08 856,375
750,000 General Motors Corp., 7.10%
notes, due 3/15/06 753,750
- --------------------------------------------------------------------------------
1,610,125
- --------------------------------------------------------------------------------
Beverages - Non-Alcoholic - 1.4%
500,000 Dr. Pepper Bottling Holdings, zero coupon
senior notes, due 2/15/03 496,250
- --------------------------------------------------------------------------------
Broadcast Services and Programming - 0.8%
250,000 Grupo Televisa S.A., 11.875%
senior notes, due 5/15/06 281,563
- --------------------------------------------------------------------------------
Building and Construction Products - 1.2%
USG Corp.:
200,000 8.50% senior notes, due 8/1/05 210,000
205,000 9.25% senior notes, due 9/15/01 215,763
- --------------------------------------------------------------------------------
425,763
- --------------------------------------------------------------------------------
Chemicals - Fibers - 0.9%
300,000 Polysindo International Finance Co. B.V., 11.375%
company guaranteed notes, due 6/15/06 329,250
- --------------------------------------------------------------------------------
Chemicals - Specialty - 1.4%
500,000 Praxair, Inc., 6.90%
notes, due 11/1/06 495,000
- --------------------------------------------------------------------------------
Commercial Banks - 5.6%
500,000 First National Bank of Omaha, 7.32%
subordinated notes, due 12/1/10 483,125
735,000 First Nationwide Holdings, Inc., 10.625%
senior subordinated notes, due 10/1/03 810,338
700,000 HUBCO, Inc., 8.20%
subordinated debentures, due 9/15/06 728,000
- --------------------------------------------------------------------------------
2,021,463
- --------------------------------------------------------------------------------
Commercial Services - 1.3%
445,000 NeoData Services, Inc., 12.00%
senior notes, due 5/1/03 475,594
- --------------------------------------------------------------------------------
Computers - Mainframe - 1.4%
500,000 IBM Corp., 7.50%
global notes, due 6/15/13 511,250
- --------------------------------------------------------------------------------
Containers - Metal and Glass - 1.0%
350,000 Owens-Illinois, Inc., 7.85%
senior notes, due 5/15/04 354,813
- --------------------------------------------------------------------------------
Electric - Integrated - 1.8%
600,000 El Paso Electric Co., 9.40%
first mortgage bonds, due 5/1/11 642,750
- --------------------------------------------------------------------------------
Engineering - Research and Development - 1.5%
500,000 Intertek Finance PLC, 10.25%
senior subordinated notes, due 11/1/06 517,500
- --------------------------------------------------------------------------------
Engines - Internal Combustion - 2.3%
800,000 AGCO Corp., 8.50%
senior subordinated notes, due 3/15/06 821,000
- --------------------------------------------------------------------------------
Finance - Auto Loans - 1.3%
500,000 General Motors Acceptance Corp., 6.625%
notes, due 10/15/05 481,875
- --------------------------------------------------------------------------------
Finance - Leasing Companies - 0.7%
225,000 Ryder Trucks, Inc., 10.00%
senior subordinated notes, due 12/1/06 231,188
- --------------------------------------------------------------------------------
Food - Diversified - 2.1%
$750,000 Ralston-Ralston Purina Group, 7.875%
debentures, due 6/15/25 $ 765,937
- --------------------------------------------------------------------------------
Food - Retail - 2.7%
500,000 Pathmark Stores, Inc., 11.625%
subordinated notes, due 6/15/02 506,250
250,000 Smith's Food & Drug Centers, Inc., 11.25%
senior subordinated notes, due 5/15/07 293,125
150,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04 170,062
- --------------------------------------------------------------------------------
969,437
- --------------------------------------------------------------------------------
Funeral Services and Related Items - 0.7%
250,000 Service Corporation International, 7.70%
notes, due 4/15/09 256,875
- --------------------------------------------------------------------------------
Home Furnishings - 2.6%
450,000 Cort Furniture Rental, 12.00%
senior notes, due 9/1/00 501,750
390,000 Lifestyle Furnishings International, Inc., 10.875%
company guaranteed notes, due 8/1/06 426,562
- --------------------------------------------------------------------------------
928,312
- --------------------------------------------------------------------------------
Industrial Audio and Video Products - 0.3%
100,000 Unifrax Investment Corp., 10.50%
senior notes, due 11/1/03 103,625
- --------------------------------------------------------------------------------
Life and Health Insurance - 2.4%
742,000 Delphi Financial Group, Inc., 8.00%
senior notes, due 10/1/03 747,565
120,000 Penncorp Financial Group, Inc., 9.25%
senior subordinated notes, due 12/15/03 126,900
- --------------------------------------------------------------------------------
874,465
- --------------------------------------------------------------------------------
Medical - Hospitals - 3.7%
Tenet Healthcare Corp.:
750,000 10.125% senior subordinated
notes, due 3/1/05 819,375
200,000 8.625% senior notes, due 12/1/03 207,750
300,000 8.625% senior subordinated
notes, due 1/15/07 307,500
- --------------------------------------------------------------------------------
1,334,625
- --------------------------------------------------------------------------------
Medical Products - 2.2%
530,000 DGS International Finance Co., 10.00%
company guaranteed notes, due 6/1/07+ 548,550
250,000 IMED Corp., 9.75%
senior subordinated notes, due 12/1/06+ 253,750
- --------------------------------------------------------------------------------
802,300
- --------------------------------------------------------------------------------
Money Center Banks - 4.1%
500,000 BankAmerica Corp., 7.125%
subordinated notes, due 5/1/06 497,500
500,000 Chase Manhattan Corp., 6.75%
subordinated notes, due 8/15/08 481,875
500,000 First National Bank of Boston, 7.375%
subordinated notes, due 9/15/06 505,000
- --------------------------------------------------------------------------------
1,484,375
- --------------------------------------------------------------------------------
Multimedia - 2.1%
250,000 News America Holdings, Inc., 7.70%
unsecured senior debentures, due 10/30/25 235,937
500,000 Time Warner, Inc., 8.18%
notes, due 8/15/07 521,875
- --------------------------------------------------------------------------------
757,812
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 31
<PAGE>
Janus Aspen Flexible Income Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 1.4%
$ 250,000 Gulf Canada Resources, Ltd., 9.25%
senior subordinated debentures, due 1/15/04 $ 262,500
300,000 Mesa Operating Co., zero coupon
company guaranteed notes, due 7/1/06 231,750
- --------------------------------------------------------------------------------
494,250
- --------------------------------------------------------------------------------
Paint and Related Products - 1.4%
500,000 Sherwin-Williams Co., 6.85%
notes, due 2/1/07 494,375
- --------------------------------------------------------------------------------
Property and Casualty Insurance - 1.0%
350,000 Orion Capital Corp., 7.25%
senior notes, due 7/15/05 349,125
- --------------------------------------------------------------------------------
Recreational Centers - 2.1%
750,000 Six Flags Theme Parks, zero coupon
senior subordinated notes, due 6/15/05 764,062
- --------------------------------------------------------------------------------
Retail - Auto Parts - 0.7%
240,000 Federal-Mogul Co., 8.80%
senior notes, due 4/15/07+ 249,600
- --------------------------------------------------------------------------------
Retail - Leisure Products - 0.5%
150,000 Selmer Co., Inc., 11.00%
subordinated notes, due 5/15/05 163,875
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 3.3%
900,000 Anchor Bancorp, Inc., 8.9375%
senior notes, due 7/9/03 931,500
250,000 Standard Federal Bancorp, 7.75%
subordinated notes, due 7/17/06 259,375
- --------------------------------------------------------------------------------
1,190,875
- --------------------------------------------------------------------------------
Steel - Producers - 1.5%
500,000 Weirton Steel Corp., 11.375%
senior notes, due 7/1/04 533,750
- --------------------------------------------------------------------------------
Telecommunication Services - 1.7%
600,000 Talton Holdings, Inc., 11.00%
company guaranteed notes, due 6/30/07+ 606,000
- --------------------------------------------------------------------------------
Telephone - Long Distance - 1.4%
500,000 Worldcom, Inc., 7.75%
notes, due 4/1/07 513,125
- --------------------------------------------------------------------------------
Television - 1.9%
50,000 Allbritton Communications, 11.50%
senior subordinated debentures, due 8/15/04 52,562
150,000 Pegasus Media & Communications, Inc., 12.50%
notes, due 7/1/05 165,000
450,000 Sinclair Broadcast Group, Inc., 10.00%
senior subordinated notes, due 9/30/05 465,750
- --------------------------------------------------------------------------------
683,312
- --------------------------------------------------------------------------------
Theaters - 0.7%
245,787 United Artists Theatres Circuit, Inc., 9.30%
pass thru certificates, due 7/1/15 235,648
- --------------------------------------------------------------------------------
Tobacco - 1.2%
400,000 Consolidated Cigar Acquisition Corp., 10.50%
senior subordinated notes, due 3/1/03 420,000
- --------------------------------------------------------------------------------
Transportation - Services - 0.7%
250,000 CSX Corp., 7.25%
debentures, due 5/1/04+ 252,500
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $24,294,487) 25,065,769
- --------------------------------------------------------------------------------
U.S. Government Obligation - 16.6%
6,000,000 U.S. Treasury Notes, 6.50%
due 10/15/06 (cost $5,928,845) 5,970,600
- --------------------------------------------------------------------------------
Preferred Stock - 2.3%
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 2.3%
20,000 California Federal Preferred Capital Corp., 9.125% $ 517,500
10,000 Chevy Chase Savings, 13.00%, Non-Cumulative 300,000
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $813,375) 817,500
- --------------------------------------------------------------------------------
U.S. Government Agency - 8.9%
$3,200,000 Federal Home Loan Mortgage Corp.,
5.75%, 7/1/97 (amortized cost $3,200,000) 3,200,000
- --------------------------------------------------------------------------------
Total Investments (total cost $34,236,707) - 97.7% 35,053,869
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 2.3% 811,822
- --------------------------------------------------------------------------------
Net Assets - 100% $35,865,691
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 32
<PAGE>
Janus Aspen High-Yield Portfolio
Portfolio Managers, Sandy R. Rufenacht and Ronald V. Speaker
Performance Review
During the first half of the year ended June 30, 1997, Janus Aspen High-Yield
Portfolio produced a total return of 7.20%, compared to a total return of 5.82%
for the Lehman Brothers High-Yield Index. Both returns include reinvested
dividends.(1)
The Portfolio outperformed its benchmark index due to careful bond selection and
detailed research. As we have said before, in the high-yield market intensive
equity-style research not only provides a better understanding of a company's
balance sheet, but can also uncover earnings potential and other factors that
make a bond attractive. We continued to focus on companies that were candidates
for rating upgrades, sometimes to investment grade, and we also held "cushion
bonds." Cushion bonds are high-yield bonds that have a better chance of being
redeemed before they mature. They have generous yields but tend to have lower
price fluctuations when interest rates change. This strategy proved effective in
March and April, when high-yield bonds came under pressure.
The bond market continued to trade within a clearly defined range during the
last six months. The yield on the benchmark 30-year Treasury bond stayed between
7.25% and 6.50%. In the second quarter, the economy began to slow from its the
rapid growth of the previous three months. The prospect of continued moderate
economic growth, combined with low inflation, sparked another rally in the
financial markets. Bonds and stocks rose sharply, and bond yields finished the
period near the low end of their trading range. High-yield bonds were again one
of the best-performing market sectors, helped along by stable interest rates and
the very powerful rise in equities.
Portfolio Strategy
High-yield securities are something of a hybrid sector. Performance is often a
mix of both the stock and bond markets, since the same economic conditions that
are conducive to a strong equity market - a favorable business climate, abundant
capital, and low interest rates - are also beneficial to high-yield issuers. In
fact, the performance of high-yield bonds is probably more closely linked to the
performance of stocks than to Treasury yields, so when stocks surged, high-yield
debt rallied as well.
The high-yield sector has also benefited from very strong demand for better
yields. Money has been flooding into high-yield bonds for over a year now, and
certain industries have become overheated. Our strategy was to focus more on
supermarkets and other, less glamorous, industries. However, buy and sell
decisions were based on the potential of individual companies. As always, our
basic investment discipline is to add value to the Portfolio via detailed,
fundamental research of individual ideas.
- --------------------------------------------------------------------------------
Portfolio Profile June 30, 1997 December 31, 1996
Weighted Avg. Maturity 8.2 Yrs. 8.0 Yrs.
Avg. Modified Duration* 6.3 Yrs. 5.1 Yrs.
Avg. 30-Day Yield
Institutional Shares 8.53% 8.93%
Retirement Shares 8.05% N/A
Avg. Rating BB B
- --------------------------------------------------------------------------------
* A theoretical measure of price volatility.
Two exciting individual bonds are Albritton Communications and Cobblestone Golf.
Albritton is a cushion bond. It carries an 11.5% coupon and can be redeemed as
early as August. The company recently issued obligations yielding 9.75%, so
Albritton may tender for its more expensive debt early. This should lower the
bond's price volatility while still providing an attractive yield. Our
Cobblestone bond also carries an 11.5% coupon. Cobblestone owns approximately 25
golf courses, mostly concentrated in the Phoenix, Dallas, and San Diego areas.
By focusing on individual cities, Cobblestone is able to develop economies of
scale, including discounts on equipment and overlapping personnel in such areas
as maintenance. The continuing shortage of golf courses is also working in
Cobblestone's favor: Its course utilization rates are excellent and it is an
attractive acquisition candidate as larger competitors look to increase market
share.
A similar trend toward consolidation is occurring in the supermarket industry,
as regional operators are being acquired by larger chains. One of our bond
issuers, regional supermarket chain Smith Food and Drugs, was bought by Fred
Meyers during the first half of the year.
Looking Ahead
We remain very optimistic on the high-yield bond sector. In the 1990s, interest
rates have been extremely volatile, but the higher coupons and shorter
maturities on high-yield debt have tended to keep prices less volatile than in
much of the bond market. So long as the economy remains healthy and stocks hold
their own, the attractive coupons on high-yield bonds should continue to help
mitigate changes in interest rates. However, careful investment discipline and
detailed research - including firsthand, on-site visits with senior management -
will continue to be the performance keys in this very exciting market.
Thank you for your continued investment in Janus Aspen High-Yield Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 33
<PAGE>
Janus Aspen High-Yield Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Principal Amount Market Value
- --------------------------------------------------------------------------------
Corporate Bonds - 78.6%
- --------------------------------------------------------------------------------
Airlines - 0.8%
$10,000 ValuJet, Inc., 10.25%
senior notes, due 4/15/01 $ 9,475
- --------------------------------------------------------------------------------
Automotive - Medium and Heavy Duty Trucks - 2.3%
25,000 Blue Bird Body Co., 10.75%
senior subordinated notes, due 11/15/06 26,687
- --------------------------------------------------------------------------------
Automotive - Truck Parts and Equipment - 2.2%
25,000 Oxford Automotive, Inc., 10.125%
senior subordinated notes, due 6/15/97 25,125
- --------------------------------------------------------------------------------
Beverages - Non-Alcoholic - 1.7%
20,000 Dr. Pepper Bottling Holdings, zero coupon
senior notes, due 2/15/03 19,850
- --------------------------------------------------------------------------------
Building and Construction - 1.3%
15,000 Reliant Building Products, Inc., 10.875%
senior subordinated notes, due 5/1/04+ 15,412
- --------------------------------------------------------------------------------
Cable Television - 1.8%
10,000 Intermedia Capital Partners, 11.25%
senior notes, due 8/1/06 10,775
10,000 Rifkin Acquisition Partners, L.P., 11.125%
senior subordinated notes, due 1/15/06 10,600
- --------------------------------------------------------------------------------
21,375
- --------------------------------------------------------------------------------
Casino Hotels - 0.9%
10,000 Hollywood Casino Corp., 12.75%
senior notes, due 10/1/03 10,650
- --------------------------------------------------------------------------------
Cellular Telecommunications - 1.4%
15,000 PriCellular Wireless Corp., 10.75%
senior notes, due 11/1/04 15,769
- --------------------------------------------------------------------------------
Chemicals - Fibers - 0.9%
10,000 Polytama International Finance B.V., 11.25%
guaranteed secured notes, due 6/15/07 10,325
- --------------------------------------------------------------------------------
Chemicals - Specialty - 1.4%
15,000 Laroche Industries, 13.00%
senior subordinated notes, due 8/15/04 16,519
- --------------------------------------------------------------------------------
Commercial Banks - 1.9%
First Nationwide Holdings, Inc.:
15,000 10.625%, senior subordinated notes,
due 10/1/03 16,537
5,000 12.50%, senior notes, due 4/15/03 5,612
- --------------------------------------------------------------------------------
22,149
- --------------------------------------------------------------------------------
Containers - Paper and Plastic - 0.9%
10,000 Gaylord Container Corp., 9.75%
senior notes, due 6/15/07 9,975
- --------------------------------------------------------------------------------
Cosmetics and Toiletries - 1.4%
15,000 Renaissance Cosmetics, Inc., 11.75%
senior notes, due 2/15/04 15,675
- --------------------------------------------------------------------------------
Distribution and Wholesale - 0.9%
10,000 MVE, Inc., 12.50%
senior notes, due 2/15/02 10,237
- --------------------------------------------------------------------------------
Electronic Components - 1.1%
20,000 Electronic Retailing Systems International, Inc.,
zero coupon senior discount notes, due 2/1/04+ 13,050
- --------------------------------------------------------------------------------
Electronic Connectors - 0.9%
10,000 HCC Industries, Inc., 10.75%
senior subordinated notes, due 5/15/07 10,500
- --------------------------------------------------------------------------------
Engineering - Research and Development -1.3%
15,000 Intertek Finance PLC, 10.25%
senior subordinated notes, due 11/1/06 15,525
- --------------------------------------------------------------------------------
Finance - Leasing Companies - 2.2%
$25,000 Ryder Trucks, Inc., 10.00%
senior subordinated notes. due 12/1/06 $25,688
- --------------------------------------------------------------------------------
Food - Retail - 8.1%
10,000 Pathmark Stores, Inc., 11.625%
subordinated notes, due 6/15/02 10,125
20,000 Smith's Food & Drug Centers, Inc., 11.25%
senior subordinated notes, due 5/15/07 23,450
35,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04 39,681
20,000 Supermercados Norte, 10.875%
bonds, due 2/9/04+ 20,500
- --------------------------------------------------------------------------------
93,756
- --------------------------------------------------------------------------------
Funeral Services and Related Items - 1.4%
15,000 Prime Succession Acquisition Co., 10.75%
senior subordinated notes, due 8/15/04 16,463
- --------------------------------------------------------------------------------
Gambling-Non-Hotel Casinos - 3.1%
15,000 Casino America, Inc., 12.50%
senior notes, due 8/1/03 15,563
10,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01 10,150
10,000 Majestic Star Casino L.L.C., 12.75%
senior notes, due 5/15/03 10,938
- --------------------------------------------------------------------------------
36,651
- --------------------------------------------------------------------------------
Home Furnishings - 3.3%
20,000 Cort Furniture Rental, 12.00%
senior notes, due 9/1/00 22,300
15,000 Lifestyle Furnishings International, Inc., 10.875%
company guaranteed notes, due 8/1/06 16,406
- --------------------------------------------------------------------------------
38,706
- --------------------------------------------------------------------------------
Industrial Audio and Video Products - 0.9%
10,000 Unifrax Investment Corp., 10.50%
senior notes, due 11/1/03 10,363
- --------------------------------------------------------------------------------
Machine Tools and Related Products - 1.8%
20,000 International Knife & Saw, Inc., 11.375%
senior subordinated notes, due 11/15/06 21,450
- --------------------------------------------------------------------------------
Manufacturing - 1.8%
20,000 Plastic Specialties & Technologies, Inc., 11.25%
senior secured notes, due 12/1/03 21,425
- --------------------------------------------------------------------------------
Medical Products - 1.8%
20,000 DGS International Finance Co., 10.00%
company guaranteed notes, due 6/1/07+ 20,700
- --------------------------------------------------------------------------------
Motion Pictures and Services - 1.4%
15,000 All American Communications, Inc., 10.875%
senior subordinated notes, due 10/15/01 15,750
- --------------------------------------------------------------------------------
Oil Companies - Exploration and Production - 1.1%
13,000 Belden & Blake Corp., 9.875%
senior subordinated notes, due 6/15/07+ 12,968
- --------------------------------------------------------------------------------
Recreational Centers - 3.5%
15,000 Cobblestone Golf Group, Inc., 11.50%
senior notes, due 6/1/03 15,825
25,000 Six Flags Theme Parks, zero coupon
senior subordinated notes, due 6/15/05 25,469
- --------------------------------------------------------------------------------
41,294
- --------------------------------------------------------------------------------
Reinsurance - 1.3%
15,000 Veritas Holdings GmbH, 9.625%
senior notes, due 12/15/03+ 15,581
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 34
<PAGE>
Janus Aspen High-Yield Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Shares or
Principal Amount Market Value
- --------------------------------------------------------------------------------
Retail - Diversified - 3.2%
$20,000 Core-Mark International, Inc., 11.375%
senior subordinated notes, due 9/15/03 $ 20,925
15,000 Eye Care Centers of America, 12.00%
senior notes, due 10/1/03 16,369
- --------------------------------------------------------------------------------
37,294
- --------------------------------------------------------------------------------
Steel - Producers - 3.7%
25,000 Ivaco, Inc., 11.50%
senior notes, due 9/15/05 26,938
15,000 Weirton Steel Corp., 11.375%
senior notes, due 7/1/04 16,013
- --------------------------------------------------------------------------------
42,951
- --------------------------------------------------------------------------------
Telecommunication Services - 4.5%
5,000 Galaxy Telecom, L.P., 12.375%
senior subordinated notes, due 10/1/05 5,325
10,000 NEXTLINK Communications, L.L.C., 12.50%
senior notes, due 4/15/06 10,625
10,000 Peoples Telephone Co., Inc., 12.25%
senior notes, due 7/15/02 10,712
25,000 Verio, Inc., 13.50%
units, due 6/15/04+ 25,125
- --------------------------------------------------------------------------------
51,787
- --------------------------------------------------------------------------------
Television - 3.8%
20,000 Allbritton Communications, 11.50%
senior subordinated debentures, due 8/15/04 21,025
15,000 Radio One, Inc., 7.00%
senior subordinated notes, due 5/15/04+ 13,331
10,000 Sinclair Broadcast Group, Inc., 10. 00%
senior subordinated notes, due 9/30/05 10,350
- --------------------------------------------------------------------------------
44,706
- --------------------------------------------------------------------------------
Textile - Products - 0.9%
10,000 Glenoit Corp., 11.00%
- --------------------------------------------------------------------------------
senior subordinated notes, due 4/15/07+ 10,513
- --------------------------------------------------------------------------------
Tobacco - 0.9%
10,000 Consolidated Cigar Acquisition Corp., 10.50%
senior subordinated notes, due 3/1/03 10,500
- --------------------------------------------------------------------------------
Transportation - Services - 2.7%
30,000 Atlantic Express Transportation Co., 10.75%
company guaranteed notes, due 2/1/04 31,237
- --------------------------------------------------------------------------------
Transportation - Truck - 0.9%
$10,000 Chemical Leaman Corp., 10.375%
senior notes, due 6/15/05+ $ 10,200
- --------------------------------------------------------------------------------
Wire and Cable Products - 1.9%
20,000 International Wire Group, 11.75%
senior subordinated notes, due 6/1/05 21,825
- --------------------------------------------------------------------------------
Wireless Telecommunications - 1.3%
15,000 Telex Communications, Inc., 10.50%
senior subordinated notes, due 5/1/07+ 15,637
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $889,460) 915,743
- --------------------------------------------------------------------------------
Preferred Stocks - 2.0%
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 1.6%
600 Chevy Chase Savings, 13.00%, Non-Cumulative 18,000
- --------------------------------------------------------------------------------
Telephone - Local - 0.4%
75 Salomon, Inc., Exchangeable Notes,
(Cinncinati Bell, Inc.) 6.25% 4,781
- --------------------------------------------------------------------------------
Total Preferred Stocks (cost $22,779) 22,781
- --------------------------------------------------------------------------------
U.S. Government Agency - 11.6%
$135,000 Federal Home Loan Mortgage Corp.
5.75%, 7/1/97 (amortized cost $135,000) 135,000
- --------------------------------------------------------------------------------
Warrants - 0.1%
20 Electronic Retailing Systems International, Inc.*
(cost $0) 800
- --------------------------------------------------------------------------------
Total Investments (total cost $1,047,239) - 92.3% 1,074,324
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 7.7% 89,062
- --------------------------------------------------------------------------------
Net Assets - 100% $1,163,386
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 35
<PAGE>
Janus Aspen Short-Term Bond Portfolio - Portfolio Manager, Sandy R. Rufenacht
Performance Review
During the six months ended June 30, 1997, Janus Aspen Short-Term Bond Portfolio
gained 3.21%, versus a gain of 2.90% for the Lehman Brothers
Government/Corporate 1-3 Year Bond Index.(1) Both returns include reinvested
dividends.
The Portfolio outperformed the Index because we were able to add value via
credit research on investment-grade and high-yield corporate bonds. In addition,
our large cash position enabled us to take advantage of investment opportunities
when interest rates became volatile. The Portfolio's current configuration has
increased flexibility without compromising quality, as the average portfolio
rating in the table below indicates.
The bond market continued to trade within a clearly defined range during the
last six months. The yield on the benchmark 30-year Treasury bond stayed between
6.50% and 7.25%. In the second quarter, the economy began to slow from the rapid
growth of the previous three months. The prospect of continued moderate economic
growth, combined with low inflation, sparked a rally in the financial markets,
and bond yields finished the period near the low end of their trading range.
High-yield bonds were again one of the best-performing market sectors, helped
along by stable interest rates and the very powerful rise in equities.
- --------------------------------------------------------------------------------
Portfolio Asset Mix June 30, 1997 December 31, 1996
Investment-Grade Corp. Bonds 52.1% 56.4%
High-Yield/High-Risk (Junk) Bonds 15.1% --
U.S. Government Securities 19.4% 42.0%
Cash & Cash Equivalents 13.4% 1.6%
- --------------------------------------------------------------------------------
Portfolio Profile June 30, 1997 December 31, 1996
Weighted Avg. Maturity 2.1 Yrs. 2.0 Yrs.
Avg. Modified Duration* 1.7 Yrs. 1.8 Yrs.
Avg. Rating A+ AA
Avg. 30-day Yield
Institutional Shares 6.36% 5.37%
Retirement Shares 5.84% N/A
- --------------------------------------------------------------------------------
*A theoretical measure of price volatility.
The Treasury portion of the portfolio consists of a single T-bill. Our
investment-grade corporate bonds continue to include familiar names such as
Hewlett-Packard Finance Corporation, IBM, Lockheed Martin, and Travelers
Insurance. High-yield holdings are primarily "cushion bonds." These are bonds
that are likely to be redeemed before they mature. Allbritton is a good example
of what we look for in a cushion bond. Allbritton owns six television stations
on the east coast. Our analysis indicates the company's ABC affiliate in
Washington, D.C. provides reasonable collateral by itself for the debt offering
we own. These bonds, which carry an 11.5% coupon, are callable in August of this
year. The company recently issued bonds with a coupon of 9.75%, so we believe
Allbritton is likely to redeem its more expensive debt at the first opportunity.
Portfolio Strategy
The Portfolio is positioned to respond quickly to changes in interest rates.
This flexibility has been accomplished in the context of an investment-grade
portfolio. Our Treasury and cash positions lower credit risk, while some of our
high-yield holdings help mitigate interest rate risk. This mix allows us to
provide a yield that is competitive with a 30-year Treasury obligation without
as much price volatility. It also allows us to avoid overpaying for short-term
paper, which remains in relatively short supply due to the low level of interest
rates. In this environment, companies have tended to issue more long-term debt
in order to lock in cheaper rates. Also, as interest rate volatility increased,
investors pulled themselves in on the yield curve - shortening the maturities of
their holdings - which has created additional demand for short-term obligations
and pushed up prices.
Looking Ahead
The U.S. economy now appears to be growing at a moderate pace. As long as
inflation remains low, interest rates should continue to be stable. But whatever
the direction of rates, the Portfolio's flexibility positions it to respond
effectively. The mix of securities should also keep yields competitive.
Thank you for your continued investment in Janus Aspen Short-Term Bond
Portfolio.
- --------------------------------------------------------------------------------
(1) Index and Portfolio returns include reinvested dividends. The Portfolio's
securities may differ significantly from the securities in the index. Index
returns do not include taxes on dividends and interest payments, or
operating expenses necessary to maintain a portfolio consisting of the same
securities that are in the index. The Portfolio's return does not reflect
the charges and expenses of any particular insurance product. Past
performance is no guarantee of future results.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 36
<PAGE>
Janus Aspen Short-Term Bond Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Principal Amount Market Value
- --------------------------------------------------------------------------------
Corporate Bonds - 67.2%
- --------------------------------------------------------------------------------
Aerospace and Defense - 3.7%
$500,000 Lockheed Martin Corp., 6.55%
company guaranteed unsecured
notes, due 5/15/99 $501,875
- --------------------------------------------------------------------------------
Commercial Banks - 3.6%
500,000 First USA Bank, Inc., 5.75%
notes, due 1/15/99 495,625
- --------------------------------------------------------------------------------
Computers - Mainframe - 3.6%
500,000 IBM Corp., 6.375%
global notes, due 6/15/00 498,750
- --------------------------------------------------------------------------------
Computers - Mini - 3.7%
500,000 Hewlett-Packard, Inc., 6.50%
senior unsubordinated notes, due 12/30/99 502,500
- --------------------------------------------------------------------------------
Diversified Financial Services - 3.7%
500,000 Associates Corp. N.A., 6.375%
senior notes, due 8/15/98 501,465
- --------------------------------------------------------------------------------
Engines - Internal Combustion - 0.9%
100,000 Imo Industries, Inc., 11.75%
senior subordinated notes, due 5/1/06 119,750
- --------------------------------------------------------------------------------
Finance - Auto Loans - 2.9%
400,000 Chrysler Financial Corp., 6.625%
notes, due 8/15/00 400,000
- --------------------------------------------------------------------------------
Finance - Investment Banker/Broker - 2.0%
275,000 Merrill Lynch & Co., Inc., 6.375%
notes, due 3/30/99 275,344
- --------------------------------------------------------------------------------
Finance - Leasing Companies - 5.9%
International Lease Finance Corp.:
300,000 6.125% notes, due 11/1/99 298,125
250,000 6.625% notes, due 4/1/99 251,875
250,000 Pitney Bowes Credit Corp., 6.25%
notes, due 6/1/98 250,635
- --------------------------------------------------------------------------------
800,635
- --------------------------------------------------------------------------------
Food - Diversified - 1.8%
250,000 Grand Metropolitan Investment Corp., 6.50%
company guaranteed notes, due 9/15/99 250,625
- --------------------------------------------------------------------------------
Food - Retail - 4.1%
215,000 Pathmark Stores, Inc., 12.625%
subordinated notes, due 6/15/02 220,912
300,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04 340,125
- --------------------------------------------------------------------------------
561,037
- --------------------------------------------------------------------------------
Hotels and Motels - 1.8%
250,000 Hyatt Equities, L.L.C., 6.80%
notes, due 5/15/00+ 250,313
- --------------------------------------------------------------------------------
Life and Health Insurance - 0.4%
50,000 Penncorp Financial Group, Inc., 9.25%
senior subordinated notes, due 12/15/03 52,875
- --------------------------------------------------------------------------------
Multi-Line Insurance - 3.7%
500,000 Travelers Group, Inc., 5.75%
notes, due 4/15/98 499,685
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 1.9%
250,000 Texaco Capital, Inc., 6.875%
notes, due 7/15/99 252,812
- --------------------------------------------------------------------------------
Paint and Related Products - 3.6%
500,000 Sherwin-Williams Co., 6.25%
notes, due 2/1/00 497,500
- --------------------------------------------------------------------------------
Physical Therapy and Rehabilitation Centers - 3.9%
500,000 HEALTHSOUTH Corp., 9.50%
senior subordinated notes, due 4/1/01 528,125
- --------------------------------------------------------------------------------
Retail - Discount - 2.9%
$ 400,000 TJX Companies, Inc., 6.625%
notes, due 6/15/00 $ 398,500
- --------------------------------------------------------------------------------
Retail - Diversified - 4.0%
500,000 Eye Care Centers of America, 12.00%
senior notes, due 10/1/03 545,625
- --------------------------------------------------------------------------------
Savings/Loan/Thrifts - 1.8%
250,000 Great Western Financial Corp., 6.125%
notes, due 6/15/98 249,998
- --------------------------------------------------------------------------------
Super-Regional Banks - 1.8%
250,000 Norwest Corp., 6.25%
senior notes, due 4/15/99 250,000
- --------------------------------------------------------------------------------
Television - 1.9%
250,000 Allbritton Communications, 11.50%
senior subordinated debentures, due 8/15/04 262,813
- --------------------------------------------------------------------------------
Transportation - Railroad - 3.6%
500,000 Union Pacific Corp., 6.25%
notes, due 3/15/99 498,125
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $9,185,001) 9,193,977
- --------------------------------------------------------------------------------
U.S. Government Obligation - 19.4%
2,647,000 U.S. Treasury Notes, 6.00%
notes, due 11/30/97 (cost $2,651,186) 2,651,632
- --------------------------------------------------------------------------------
U.S. Government Agency - 12.2%
1,665,000 Federal Home Loan Mortgage Corp.,
5.75%, 7/1/97 (amortized cost $1,665,000) 1,665,000
- --------------------------------------------------------------------------------
Total Investments (total cost $13,501,187) - 98.8% 13,510,609
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 1.2% 162,973
- --------------------------------------------------------------------------------
Net Assets - 100% $13,673,582
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 37
<PAGE>
Janus Aspen Money Market Portfolio - Portfolio Manager, Sharon S. Pichler
Economic Perspective
During the six months ended June 30, 1997, short-term interest rates as measured
by the yield on the one-year Treasury bill, traded between 6.07% at the high end
and 5.42% on the low end. The Federal Reserve Board boosted interest rates in
late March, but left rates unchanged at its May meeting, after signs of more
moderate economic growth emerged in the second quarter. Federal Reserve Chairman
Alan Greenspan had been trying to talk financial markets into slowing down - a
practice known as "jawboning" - since last fall. However, longer-term interest
rates responded more to economic data than to Mr. Greenspan's warnings, rising
in anticipation of first quarter economic strength as well as in anticipation of
an increase in short rates. When signs of moderate growth emerged, longer rates
declined and ended the six months near their lows. Our commitment to flexibility
allowed us to respond quickly to interest rate changes throughout the period.
Portfolio Strategy
For much of the six months, assets remained primarily in very short obligations,
with only a modest weighting in longer-term debt (6 months to one year). As of
June 30, the Portfolio's weighted average maturity was just 10 days.
We take a conservative stance when it comes to credit profiles. Our strict
discipline of detailed credit analysis and careful evaluation of each company's
risk-reward characteristics stood us in good stead once again. We were able to
produce a competitive yield with low risk.
Thank you for your investment in Janus Aspen Money Market Portfolio.
- --------------------------------------------------------------------------------
A money market fund is neither insured nor guaranteed by the U.S. government,
and there can be no assurance the Portfolio will be able to maintain a $1.00
share price.
Janus Aspen Money Market Portfolio June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
Principal Amount Market Value
- --------------------------------------------------------------------------------
Repurchase Agreement - 22.8%
$1,500,000 HSBC Securities, Inc., 6.20% dated 6/30/97,
maturing 7/1/97, to be repurchased at $1,500,258,
collateralized by $1,544,000 in Fannie Mae
Discount Notes 6.01%, 8/22/97 and 6.01%, 8/27/97
with respective values of $499,766 and $1,030,432
(cost $1,500,000)*** $ 1,500,000
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 6.0%
400,000 General Motors Acceptance Corp.
5.84%, 10/8/97 (amortized cost $393,576) 393,576
- --------------------------------------------------------------------------------
U.S. Government Agencies - 65.0%
600,000 Fannie Mae
5.43%, 7/11/97 599,095
600,000 Federal Farm Credit Bank
5.43%, 7/9/97 599,276
285,000 Federal Home Loan Bank
5.40%, 7/15/97 284,402
2,800,000 Federal Home Loan Mortgage Corp.
5.75%, 7/1/97 2,800,000
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $4,282,773) 4,282,773
- --------------------------------------------------------------------------------
Total Investments (total cost $6,176,349) - 93.8% 6,176,349
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 6.2% 406,498
- --------------------------------------------------------------------------------
Net Assets - 100% $6,582,847
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 38
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS
(ADR) - American Depository Receipt
(GDR) - Global Depository Receipt
(JPY) - Japanese Yen
Adjustable Rate Preferred Stock Dividend Rates are as of 6/30/97
* Non-Income producing security
** A portion of this security has been segregated by the custodian to cover
segregation requirements on open forward currency contracts.
*** Repurchase Agreements held by the Portfolio are fully collateralized and
such collateral is in the possession of the Portfolio's custodian. The
collateral is evaluated daily to ensure its market value equals or exceeds
the current market value of the repurchase agreements including accrued
interest.
+ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 39
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
As of June 30, 1997 (unaudited) Janus Aspen Janus Aspen Janus Aspen Janus Aspen
(All numbers in thousands except Janus Aspen Aggressive Capital International Worldwide Janus Aspen
Retirement shares outstanding and Growth Growth Appreciation Growth Growth Balanced
net asset value per share.) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C> <C>
Investments at cost $ 426,413 $ 336,527 $ 893 $ 90,442 $ 958,253 $ 157,218
====================================================================================================================================
Investments at value $ 485,921 $ 428,399 $ 938 $ 101,772 $1,148,359 $ 169,395
Cash 726 120 40 218 35,619 91
Receivables:
Investments sold 1,540 2,743 -- 312 8,007 1,382
Fund shares sold 1,065 1,021 1 778 4,436 709
Interest -- -- -- -- -- 792
Dividends 465 66 -- 179 4,336 145
From advisor -- -- 1 -- -- --
Other assets 3 3 -- -- 5 2
Foreign currency contracts -- -- -- 327 5,469 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 489,720 432,352 980 103,586 1,206,231 172,516
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 12,516 5,533 36 4,405 2,655 4,424
Fund shares repurchased 10 27 -- -- 569 29
Advisory fee 250 252 1 50 614 102
Accrued expenses 25 23 1 13 88 17
Foreign currency contracts 382 672 -- -- -- 48
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 13,183 6,507 38 4,468 3,926 4,620
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 476,537 $ 425,845 $ 942 $ 99,118 $1,202,305 $ 167,896
====================================================================================================================================
Total Net Assets - Institutional Shares $ 476,526 $ 425,833 $ 930 $ 99,107 $1,202,294 $ 167,885
Shares Outstanding, $.001 Par Value
(unlimited shares authorized) 27,860 22,753 79 5,366 52,676 10,357
Net Asset Value Per Share $ 17.10 $ 18.72 $ 11.75 $ 18.47 $ 22.82 $ 16.23
====================================================================================================================================
Total Net Assets - Retirement Shares $ 11 $ 12 $ 12 $ 11 $ 11 $ 11
Shares Outstanding, $.001 Par Value
(unlimited shares authorized) 635 620 1,000 599 489 665
Net Asset Value Per Share $ 17.09 $ 18.70 $ 11.74 $ 18.45 $ 22.80 $ 16.21
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
As of June 30, 1997 (unaudited) Janus Aspen Janus Aspen Janus Aspen Janus Aspen
(All numbers in thousands except Equity Flexible Janus Aspen Short-Term Money
Retirement shares outstanding and Income Income High-Yield Bond Market
net asset value per share.) Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C> <C> <C>
Investments at cost $ 422 $ 34,237 $ 1.047 $ 13,501 $ 6,176
=======================================================================================================================
Investments at value $ 462 $ 35,054 $ 1,074 $ 13,511 $ 6,176
Cash 5 63 -- 2 4
Receivables:
Investments sold 2 -- 74 -- --
Fund shares sold 7 265 -- 115 407
Interest -- 570 20 179 --
Dividends -- -- -- -- --
From advisor 1 -- 2 6 --
Other assets -- -- -- -- --
Foreign currency contracts -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Assets 477 35,952 1,170 13,813 6,587
- -----------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 44 -- -- 122 --
Fund shares repurchased -- 62 -- 6 --
Advisory fee -- 18 1 7 1
Accrued expenses 1 6 6 4 3
Foreign currency contracts -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Liabilities 45 86 7 139 4
- -----------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 432 $ 35,866 $ 1,163 $ 13,674 $ 6,583
=======================================================================================================================
Total Net Assets - Institutional Shares $ 420 $ 35,856 $ 1,153 $ 13,664 $ 6,573
Shares Outstanding, $.001 Par Value
(unlimited shares authorized) 36 3,178 104 1,360 6,573
Net Asset Value Per Share $ 11.64 $ 11.28 $ 11.12 $ 10.04 $ 1.00
=======================================================================================================================
Total Net Assets - Retirement Shares $ 12 $ 10 $ 10 $ 10 $ 10
Shares Outstanding, $.001 Par Value
(unlimited shares authorized) 1,000 911 933 1,011 10,066
Net Asset Value Per Share $ 11.63 $ 11.28 $ 11.11 $ 10.03 $ 1.00
=======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
Janus Aspen Janus Aspen Janus Aspen Janus Aspen
For the six month period ended Janus Aspen Aggressive Capital International Worldwide Janus Aspen
June 30, 1997 (unaudited) Growth Growth Appreciation Growth Growth Balanced
(All numbers in thousands) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C> <C>
Interest $ 1,931 $ 958 $ 4 $ 245 $ 1,542 $ 1,787
Dividends 2,249 373 -- 631 8,549 736
Foreign Tax Withheld (119) (21) -- (83) (1,046) (27)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 4,061 1,310 4 793 9,045 2,496
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 1,291 1,352 1 200 2,824 477
Transfer agent fees and expenses 7 4 1 -- 6 1
Registration fees 1 3 -- -- 8 3
System fees 10 6 1 6 8 6
Custodian fees 71 37 -- 85 309 33
Insurance Expense 2 1 -- 1 1 --
Audit fees 6 5 -- 4 10 4
Other expenses 3 4 -- 1 5 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,391 1,412 3 297 3,171 525
- ------------------------------------------------------------------------------------------------------------------------------------
Less: Expense offset (4) (9) -- (1) (7) (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,387 1,403 3 296 3,164 523
- ------------------------------------------------------------------------------------------------------------------------------------
Less: Excess expense reimbursement -- -- (2) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses after reimbursement 1,387 1,403 1 296 3,164 523
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 2,674 (93) 3 497 5,881 1,973
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain/(Loss) on Investments:
Net realized gain/(loss)
from securities transactions 23,380 (21,007) 15 630 20,256 5,421
Net realized gain/(loss)
from foreign currency transactions 1021 (128) -- 118 5,808 224
Net realized gain/(loss)
from futures contracts -- -- -- (18) (316) --
Change in net unrealized appreciation
or (depreciation) of investments 23,824 34,332 45 9,675 127,140 7,551
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain/(loss) on investments 48,225 13,197 60 10,405 152,888 13,196
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 50,899 $ 13,104 $ 63 $ 10,902 $ 158,769 $ 15,169
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (Continued)
Janus Aspen Janus Aspen Janus Aspen Janus Aspen
For the six month period ended Equity Flexible Janus Aspen Short-Term Money
June 30, 1997 (unaudited) Income Income High-Yield Bond Market
(All numbers in thousands) Portfolio(1) Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C>
Interest -- $ 1,108 $ 45 $ 392 $ 188
Dividends $ 1 35 1 -- --
Foreign Tax Withheld -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total Investment Income 1 1,143 46 392 188
- ----------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees -- 95 4 39 9
Transfer agent fees and expenses 1 -- -- -- --
Registration fees -- -- -- 1 --
System fees 1 5 6 6 6
Custodian fees -- 7 6 4 3
Insurance Expense -- 1 -- -- --
Audit fees 1 5 4 4 1
Other expenses -- -- 1 -- --
- ----------------------------------------------------------------------------------------------------------------------
Total Expenses 3 113 21 54 19
- ----------------------------------------------------------------------------------------------------------------------
Less: Expense offset -- (1) -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Net expenses 3 112 21 54 19
- ----------------------------------------------------------------------------------------------------------------------
Less: Excess expense reimbursement (3) -- (16) (15) --
- ----------------------------------------------------------------------------------------------------------------------
Net expenses after reimbursement -- 112 5 39 19
- ----------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 1 1,031 41 353 169
- ----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain/(Loss) on Investments:
Net realized gain/(loss)
from securities transactions 3 131 22 15 --
Net realized gain/(loss)
from foreign currency transactions -- 12 -- -- --
Net realized gain/(loss)
from futures contracts -- (18) -- -- --
Change in net unrealized appreciation
or (depreciation) of investments 40 167 2 14 --
- ----------------------------------------------------------------------------------------------------------------------
Net gain/(loss) on investments 43 292 24 29 --
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 44 $ 1,323 $ 65 $ 382 $ 169
======================================================================================================================
</TABLE>
(1) For the period May 1, 1997 (inception) to June 30, 1997
See Notes to Financial Statements
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 40 AND 41
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the six months or period
ended June 30, 1997 (unaudited) Janus Aspen
and the fiscal year or period Janus Aspen Aggressive
ended December 31, 1996 Growth Growth
(all numbers in thousands(3)) Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 2,674 $ 2,996 ($ 93) $ (789)
Net realized gain/(loss)
from investment transactions 24,401 10,156 (21,135) (12,093)
Change in unrealized net appreciation
or (depreciation) of investments 23,824 20,898 34,332 27,841
- ----------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 50,899 34,050 13,104 14,959
- ----------------------------------------------------------------------------------------------------------
Dividends and Distributions:
Net investment income (2,720) (3,002) -- --
Net realized gain from
investment transactions (9,976) (3,331) -- (3,020)
Tax Return of Capital -- -- -- (220)
- ----------------------------------------------------------------------------------------------------------
Net decrease in net assets
from dividends and distributions (12,696) (6,333) -- (3,240)
- ----------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 125,026 183,993 91,634 210,533
Retirement Shares 10 -- 10 --
Reinvested dividends and distributions
Institutional Shares 12,696 6,333 -- 3,240
Retirement Shares -- -- -- --
Shares repurchased
Institutional Shares (25,187) (19,165) (62,596) (27,710)
Retirement Shares -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
from capital share transactions 112,545 171,161 29,048 186,063
- ----------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 150,748 198,878 42,152 197,782
- ----------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of period 325,789 126,911 383,693 185,911
- ----------------------------------------------------------------------------------------------------------
End of Period $ 476,537 $ 325,789 $ 425,845 $ 383,693
==========================================================================================================
Net Assets consist of:
Capital (par value and paid-in surplus)* $ 392,975 $ 280,430 $ 369,169 $ 337,407
Undistributed net investment
income/(distribution in excess)* 77 123 (3,487) 2
Undistributed net realized
gain/(loss) from investments* 24,362 9,937 (31,033) (10,580)
Unrealized appreciation/(depreciation)
of investments 59,123 35,299 91,196 56,864
- ----------------------------------------------------------------------------------------------------------
$ 476,537 $ 325,789 $ 425,845 $ 383,693
==========================================================================================================
Transactions in Portfolio Shares - Institutional Shares
Shares sold 7,661 12,447 5,310 11,507
Reinvested dividends and distributions 740 426 -- 176
- ----------------------------------------------------------------------------------------------------------
Total 8,401 12,873 5,310 11,683
Shares Repurchased (1,544) (1,306) (3,598) (1,528)
- ----------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 6,854 11,567 1,712 10,155
- ----------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period 21,003 9,436 21,041 10,885
- ----------------------------------------------------------------------------------------------------------
Shares outstanding end of period 27,860 21,003 22,753 21,040
==========================================================================================================
Transactions in Portfolio Shares - Retirement Shares(3)
Shares sold 618 -- 620 --
Reinvested dividends and distributions 17 -- -- --
- ----------------------------------------------------------------------------------------------------------
Total 635 -- 620 --
Shares Repurchased -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 635 -- 620 --
- ----------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Shares outstanding end of period 635 -- 620 --
==========================================================================================================
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 323,749 $ 279,406 $ 208,061 $ 411,187
Proceeds from Sales of Securities 217,677 151,544 184,493 242,452
Purchases of Long-Term
U.S. Government Obligations -- -- -- --
Proceeds from Sales of Long-Term
U.S. Government Obligations -- -- -- --
==========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
For the six months or period
ended June 30, 1997 (unaudited) Janus Aspen Janus Aspen Janus Aspen
and the fiscal year or period Capital International Worldwide
ended December 31, 1996 Appreciation Growth Growth
(all numbers in thousands(3)) Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------
1997 1997 1996 1997 1996
- -----------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C> <C>
Net investment income/(loss) $ 3 $ 497 $ 46 $ 5,881 $ 2,521
Net realized gain/(loss)
from investment transactions 15 730 261 25,748 11,302
Change in unrealized net appreciation
or (depreciation) of investments 45 9,675 1,663 127,140 54,851
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 63 10,902 1,970 158,769 68,674
- -----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions:
Net investment income -- (467) (76) (7,302) (4,109)
Net realized gain from
investment transactions -- (220) (83) (8,190) (3,028)
Tax Return of Capital -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net decrease in net assets
from dividends and distributions -- (687) (159) (15,492) (6,137)
- -----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 1,751 68,203 26,943 483,339 431,848
Retirement Shares 10 10 -- 10 --
Reinvested dividends and distributions
Institutional Shares -- 687 159 15,492 6,137
Retirement Shares -- -- -- -- --
Shares repurchased
Institutional Shares (882) (7,189) (3,329) (22,416) (26,482)
Retirement Shares -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
from capital share transactions 879 61,711 23,773 476,425 411,503
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 942 71,926 25,584 619,702 474,040
- -----------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of period -- 27,192 1,608 582,603 108,563
- -----------------------------------------------------------------------------------------------------------------------
End of Period $ 942 $ 99,118 $ 27,192 $1,202,305 $ 582,603
=======================================================================================================================
Net Assets consist of:
Capital (par value and paid-in surplus)* $ 879 $ 86,702 $ 24,992 $ 981,166 $ 504,741
Undistributed net investment
income/(distribution in excess)* 3 41 12 165 (1,586)
Undistributed net realized
gain/(loss) from investments* 15 718 207 25,444 7,886
Unrealized appreciation/(depreciation)
of investments 45 11,657 1,981 195,530 68,390
- -----------------------------------------------------------------------------------------------------------------------
$ 942 $ 99,118 $ 27,192 $1,202,305 $ 582,603
=======================================================================================================================
Transactions in Portfolio Shares - Institutional Shares
Shares sold 156 4,014 1,817 23,097 24,029
Reinvested dividends and distributions -- 36 11 675 328
- -----------------------------------------------------------------------------------------------------------------------
Total 156 4,050 1,828 23,772 24,357
Shares Repurchased (77) (414) (233) (1,064) (1,479)
- -----------------------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 79 3,636 1,595 22,708 22,878
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period -- 1,730 135 29,968 7,090
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding end of period 79 5,366 1,730 52,676 29,968
=======================================================================================================================
Transactions in Portfolio Shares - Retirement Shares(3)
Shares sold 1,000 595 -- 483 --
Reinvested dividends and distributions -- 4 -- 6 --
- -----------------------------------------------------------------------------------------------------------------------
Total 1,000 599 -- 489 --
Shares Repurchased -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 1,000 599 -- 489 --
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding end of period 1,000 599 -- 489 --
=======================================================================================================================
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 323 $ 79,999 $ 19,784 763,472 $ 532,495
Proceeds from Sales of Securities 99 12,660 3,941 272,679 170,371
Purchases of Long-Term
U.S. Government Obligations -- 564 -- -- --
Proceeds from Sales of Long-Term
U.S. Government Obligations -- -- -- -- --
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
For the six months or period
ended June 30, 1997 (unaudited) Janus Aspen Janus Aspen
and the fiscal year or period Janus Aspen Equity Flexible
ended December 31, 1996 Balanced Income Income
(all numbers in thousands(3)) Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1997 1996
- -----------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C> <C>
Net investment income/(loss) $ 1,973 $ 1,270 $ 1 $ 1,031 $ 1,307
Net realized gain/(loss)
from investment transactions 5,645 1,768 3 125 324
Change in unrealized net appreciation
or (depreciation) of investments 7,551 3,680 40 167 277
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 15,169 6,718 44 1,323 1,908
- -----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions:
Net investment income (2,029) (1,165) -- (1,042) (1,255)
Net realized gain from
investment transactions (1,791) (278) -- (322) (272)
Tax Return of Capital -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net decrease in net assets
from dividends and distributions (3,820) (1,443) -- (1,364) (1,527)
- -----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 69,201 72,698 378 13,840 20,543
Retirement Shares 10 -- 10 10 --
Reinvested dividends and distributions
Institutional Shares 4,669 1,443 -- 1,364 1,527
Retirement Shares -- -- -- -- --
Shares repurchased
Institutional Shares (2,813) (7,957) -- (4,622) (7,967)
Retirement Shares -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
from capital share transactions 71,067 66,184 388 10,592 14,103
- -----------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 82,416 71,459 432 10,551 14,484
- -----------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of period 85,480 14,021 -- 25,315 10,831
- -----------------------------------------------------------------------------------------------------------------------
End of Period $ 167,896 $ 85,480 $ 432 $ 35,866 $ 25,315
=======================================================================================================================
Net Assets consist of:
Capital (par value and paid-in surplus)* $ 150,097 $ 79,031 $ 388 $ 34,888 $ 24,297
Undistributed net investment
income/(distribution in excess)* (213) 114 1 36 46
Undistributed net realized
gain/(loss) from investments* 5,882 1,758 3 125 322
Unrealized appreciation/(depreciation)
of investments 12,130 4,577 40 817 650
- -----------------------------------------------------------------------------------------------------------------------
$ 167,896 $ 85,480 $ 432 $ 35,866 $ 25,315
=======================================================================================================================
Transactions in Portfolio Shares - Institutional Shares
Shares sold 4,457 5,179 36 1,211 1,853
Reinvested dividends and distributions 293 101 -- 121 139
- -----------------------------------------------------------------------------------------------------------------------
Total 4,750 5,280 36 1,332 1,992
Shares Repurchased (182) (567) -- (406) (715)
- -----------------------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 4,568 4,713 36 926 1,277
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period 5,789 1,076 -- 2,252 975
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding end of period 10,357 5,789 36 3,178 2,252
=======================================================================================================================
Transactions in Portfolio Shares - Retirement Shares(3)
Shares sold 650 -- 1,000 876 --
Reinvested dividends and distributions 15 -- -- 35 --
- -----------------------------------------------------------------------------------------------------------------------
Total 665 -- 1,000 911 --
Shares Repurchased -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 665 -- 1,000 911 --
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Shares outstanding end of period 665 -- 1,000 911 --
=======================================================================================================================
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 106,181 $ 95,054 $ 409 $ 17,023 $ 44,707
Proceeds from Sales of Securities 51,917 39,718 25 11,288 34,221
Purchases of Long-Term
U.S. Government Obligations 22,826 4,833 -- 3,903 7,738
Proceeds from Sales of Long-Term
U.S. Government Obligations 10,698 2,154 -- 1,023 6,051
=======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
For the six months or period
ended June 30, 1997 (unaudited) Janus Aspen
and the fiscal year or period Janus Aspen Short-Term Janus Aspen
ended December 31, 1996 High-Yield Bond Money Market
(all numbers in thousands(3)) Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) $ 41 $ 26 $ 353 $ 389 $ 169 $ 183
Net realized gain/(loss)
from investment transactions 22 6 15 4 -- --
Change in unrealized net appreciation
or (depreciation) of investments 2 26 14 (28) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 65 58 382 365 169 183
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions:
Net investment income (43) (24) (324) (370) (169) (183)
Net realized gain from
investment transactions (6) -- (4) (6) -- --
Tax Return of Capital -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets
from dividends and distributions (49) (24) (328) (376) (169) (183)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 755 1,491 7,394 13,981 25,036 28,902
Retirement Shares 10 -- 10 -- 10 --
Reinvested dividends and distributions
Institutional Shares 48 24 329 376 168 184
Retirement Shares -- -- -- -- -- --
Shares repurchased
Institutional Shares (449) (766) (6,014) (5,632) (24,737) (24,715)
Retirement Shares -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
from capital share transactions 364 749 1,719 8,725 477 4,371
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 380 783 1,773 8,714 477 4,371
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of period 783 -- 11,901 3,187 6,106 1,735
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period $ 1,163 $ 783 $ 13,674 $ 11,901 $ 6,583 $ 6,106
====================================================================================================================================
Net Assets consist of:
Capital (par value and paid-in surplus)* $ 1,114 $ 749 $ 13,586 $ 11,866 $ 6,583 $ 6,106
Undistributed net investment
income/(distribution in excess)* -- 2 66 36 -- --
Undistributed net realized
gain/(loss) from investments* 22 6 13 3 -- --
Unrealized appreciation/(depreciation)
of investments 27 26 9 (4) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,163 $ 783 $ 13,674 $ 11,901 $ 6,583 $ 6,106
====================================================================================================================================
Transactions in Portfolio Shares - Institutional Shares
Shares sold 67 140 729 1,398 25,036 28,902
Reinvested dividends and distributions 5 2 33 38 168 184
- ------------------------------------------------------------------------------------------------------------------------------------
Total 72 142 762 1,436 25,204 29,086
Shares Repurchased (40) (70) (595) (561) (24,737) (24,715)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 32 72 167 875 467 4,371
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period 72 -- 1,193 318 6,106 1,735
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding end of period 104 72 1,360 1,193 6,573 6,106
====================================================================================================================================
Transactions in Portfolio Shares - Retirement Shares(3)
Shares sold 894 -- 986 -- 10,000 --
Reinvested dividends and distributions 39 -- 25 -- 66 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 933 -- 1,011 -- 10,066 --
Shares Repurchased -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/decrease in portfolio shares 933 -- 1,011 -- 10,066 --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding beginning of period -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding end of period 933 -- 1,011 -- 10,066 --
====================================================================================================================================
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 1,939 $ 1,595 $ 5,452 $ 13,059 -- --
Proceeds from Sales of Securities 1,815 871 4,388 8,202 -- --
Purchases of Long-Term
U.S. Government Obligations -- -- 4,080 24,287 -- --
Proceeds from Sales of Long-Term
U.S. Government Obligations -- -- 5,170 21,010 -- --
====================================================================================================================================
</TABLE>
(1) Period May 1, 1997 (inception) to June 30, 1997
(2) Period May 1, 1996 (inception) to December 31, 1996
(3) Transactions in Portfolio Shares - Retirement Shares numbers are not in
thousands.
* See Note 3 in Notes to Financial Statements
See Notes to Financial Statements
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 42 AND 43
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES
For a share outstanding during the Janus Aspen
six months or period ended June 30, 1997 (unaudited) Growth
and the fiscal year or period ended December 31 Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.51 $13.45 $10.57 $10.32 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .10 .17 .28 .09 .03
Net gains or (losses) on securities
(both realized and unrealized) 1.96 2.29 2.90 .20 .32
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.06 2.46 3.18 .29 .35
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.10) (.17) (.30) (.04) (.03)
Dividends (in excess of net investment income) (.37) (.23) -- -- --
Tax Return of Capital Distributions -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.47) (.40) (.30) (.04) (.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.10 $15.51 $13.45 $10.57 $10.32
====================================================================================================================================
Total return** 13.27% 18.45% 30.17% 2.76% 3.50%
====================================================================================================================================
Net assets, end of period (in thousands) $476,526 $325,789 $126,911 $43,549 $7,482
Average net assets for the period (in thousands) 398,595 216,125 77,344 26,464 3,191
Ratio of gross expenses to average net assets*(6) 0.70% 0.69% 0.78% N/A N/A
Ratio of net expenses to average net assets*(6) 0.70% 0.69% 0.76% 0.88% 0.25%
Ratio of net investment income to average net assets* 1.34% 1.39% 1.24% 1.45% 2.54%
Portfolio turnover rate* 133% 87% 185% 169% 162%
Average commission per share $0.0472 $0.0466 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES (Continued)
For a share outstanding during the Janus Aspen
six months or period ended June 30, 1997 (unaudited) Aggressive Growth
and the fiscal year or period ended December 31 Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $18.24 $17.08 $13.62 $11.80 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .01 -- .24 .11 .01
Net gains or (losses) on securities
(both realized and unrealized) .47 1.36 3.47 1.82 1.80
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .48 1.36 3.71 1.93 1.81
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) -- -- (.25) (.11) (.01)
Dividends (in excess of net investment income) -- (.19) -- -- --
Tax Return of Capital Distributions -- (.01) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (.20) (.25) (.11) (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.72 $18.24 $17.08 $13.62 $11.80
====================================================================================================================================
Total return** 2.63% 7.95% 27.48% 16.33% 18.05%
====================================================================================================================================
Net assets, end of period (in thousands) $425,833 $383,693 $185,911 $41,289 $1,985
Average net assets for the period (in thousands) 375,225 290,629 107,582 14,152 1,091
Ratio of gross expenses to average net assets*(6) 0.75% 0.76% 0.86% N/A N/A
Ratio of net expenses to average net assets*(6) 0.75% 0.76% 0.84% 1.05% 0.25%
Ratio of net investment income to average net assets* (0.04%) (0.27%) 0.58% 2.18% 0.34%
Portfolio turnover rate* 108% 88% 155% 259% 31%
Average commission per share $0.0364 $0.0347 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES (Continued)
Janus Aspen
For a share outstanding during the Capital Janus Aspen
six months or period ended June 30, 1997 (unaudited) Appreciation International Growth
and the fiscal year or period ended December 31 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997(2) 1997 1996 1995 1994(3)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.00 $15.72 $11.95 $9.72 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .04 .09 .05 .09 (.09)
Net gains or (losses) on securities
(both realized and unrealized) 1.71 2.79 4.06 2.16 (.19)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.75 2.88 4.11 2.25 (.28)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) -- (.09) (.11) (.02) --
Dividends (in excess of net investment income) -- (.04) (.23) -- --
Tax Return of Capital Distributions -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (.13) (.34) (.02) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.75 $18.47 $15.72 $11.95 $9.72
====================================================================================================================================
Total return** 17.51% 18.31% 34.71% 23.15% (2.80%)
====================================================================================================================================
Net assets, end of period (in thousands) $930 $99,107 $27,192 $1,608 $1,353
Average net assets for the period (in thousands) 599 58,899 7,437 1,792 1,421
Ratio of gross expenses to average net assets*(6) 1.25% 1.02% 1.26% 2.69% N/A
Ratio of net expenses to average net assets*(6) 1.25% 1.01% 1.25% 2.50% 2.50%
Ratio of net investment income to average net assets* 3.20% 1.70% 0.62% (.80% (1.30%)
Portfolio turnover rate* 273% 49% 65% 211% 275%
Average commission per share $0.0462 $0.0231 $0.0305 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES (Continued)
For a share outstanding during the Janus Aspen
six months or period ended June 30, 1997 (unaudited) Worldwide Growth
and the fiscal year or period ended December 31 Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.44 $15.31 $12.07 $11.89 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .09 .16 .11 .04 .02
Net gains or (losses) on securities
(both realized and unrealized) 3.59 27 3.19 .14 1.89
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.68 4.43 3.30 .18 1.91
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.14) (.17) (.06) -- (.01)
Dividends (in excess of net investment income) (.16) (.13) -- -- (.01)
Tax Return of Capital Distributions -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.30) (.30) (.06) -- (.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $22.82 $19.44 $15.31 $12.07 $11.89
====================================================================================================================================
Total return** 18.92% 29.04% 27.37% 1.53% 19.10%
====================================================================================================================================
Net assets, end of period (in thousands) $1,202,294 $582,603 $108,563 $37,728 $4,856
Average net assets for the period (in thousands) 865,993 304,111 59,440 22,896 2,200
Ratio of gross expenses to average net assets*(6) 0.74% 0.80% 0.90% N/A N/A
Ratio of net expenses to average net assets*(6) 0.74% 0.80% 0.87% 1.18% 0.25%
Ratio of net investment income to average net assets* 1.37% 0.83% 0.95% 0.50% 0.84%
Portfolio turnover rate* 67% 62% 113% 217% 57%
Average commission per share $0.0321 $0.0345 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES (Continued)
For a share outstanding during the Janus Aspen
six months or period ended June 30, 1997 (unaudited) Balanced
and the fiscal year or period ended December 31 Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 (1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.77 $13.03 $10.63 $10.64 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .21 .32 .17 .15 .08
Net gains or (losses) on securities
(both realized and unrealized) 1.63 1.81 2.45 (.06) .64
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.84 2.13 2.62 .09 .72
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (0.20) (.30) (.22) (.10) (.08)
Dividends (in excess of net investment income) (0.18) (.09) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.38) (.39) (.22) (.10) (.08)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.23 $14.77 $13.03 $10.63 $10.64
====================================================================================================================================
Total return** 12.32% 16.18% 24.79% 0.84% 7.20%
====================================================================================================================================
Net assets, end of period (in thousands) $167,885 $85,480 $14,021 $3,153 $537
Average net assets for the period (in thousands) 123,037 43,414 5,739 2,336 521
Ratio of gross expenses to average net assets*(6) 0.86% 0.94% 1.37% N/A N/A
Ratio of net expenses to average net assets*(6) 0.86% 0.92% 1.30% 1.57% 0.25%
Ratio of net investment income to average net assets* 3.28% 2.92% 2.41% 1.90% 2.69%
Portfolio turnover rate* 108% 103% 149% 158% 126%
Average commission per share $0.0477 $0.0426 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES (Continued)
For a share outstanding during the Janus Aspen
six months or period ended June 30, 1997 (unaudited) Flexible Income
and the fiscal year or period ended December 31 Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 (1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.24 $11.11 $9.48 $9.97 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .33 .74 .53 .47 .11
Net gains or (losses) on securities
(both realized and unrealized) .16 .24 1.70 (.56) (.04)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .49 .98 2.23 (.09) .07
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.34) (.72) (.60) (.40) (.10)
Dividends (in excess of net investment income) (.11) (.13) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.45) (.85) (.60) (.40) (.10)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.28 $11.24 $11.11 $9.48 $9.97
====================================================================================================================================
Total return** 4.35% 9.19% 23.86% (0.91%) 0.70%
====================================================================================================================================
Net assets, end of period (in thousands) $35,856 $25,315 $10,831 $1,924 $538
Average net assets for the period (in thousands) 29,566 17,889 5,556 1,636 497
Ratio of gross expenses to average net assets*(6) 0.77% 0.84% 1.07% N/A N/A
Ratio of net expenses to average net assets*(6) 0.76% 0.83% 1.00% 1.00% 1.00%
Ratio of net investment income to average net assets* 7.03% 7.31% 7.46% 5.49% 3.77%
Portfolio turnover rate* 95% 250% 236% 234% 508%
Average commission per share N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES (Continued)
Janus Aspen
For a share outstanding during the Equity Janus Aspen Janus Aspen
six months or period ended June 30, 1997 (unaudited) Income High-Yield Short-Term Bond
and the fiscal year or period ended December 31 Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
1997(2) 1997 1996(4) 1997 1996 1995 1994 1993(1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.00 $10.83 $ 10.00 $ 9.97 $ 10.03 $ 9.72 $ 9.93 $10.00
- -----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .02 .47 .43 .26 .42 .60 .35 .11
Net gains or (losses) on securities
(both realized and unrealized) 1.62 .31 .80 .06 (.03) .31 (.26) (.08)
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.64 .78 1.23 .32 .39 .91 .09 .03
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) -- (.49) (.40) (.25) (.44) (.60) (.30) (.10)
Dividends (in excess of net investment income) -- -- -- -- (.01) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (.49) (.40) (.25) (.45) (.60) (.30) (.10)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.64 $11.12 $ 10.83 $ 10.04 $ 9.97 $10.03 $ 9.72 $ 9.93
===================================================================================================================================
Total return** 16.40% 7.20% 12.40% 3.21% 3.98% 9.54% 0.92% 0.30%
===================================================================================================================================
Net assets, end of period (in thousands) $ 420 $1,153 $ 783 $13,664 $11,901 $3,187 $2,902 $ 502
Average net assets for the period (in thousands) 234 976 459 12,025 7,168 2,727 1,774 492
Ratio of gross expenses to average net assets*(6) 1.25% 1.01% 1.01% 0.65% 0.66% 0.70% N/A N/A
Ratio of net expenses to average net assets*(6) 1.25% 1.00% 1.00% 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of net investment income to average net assets* 1.69% 8.41% 5.74% 5.92% 5.44% 6.02% 5.00% 3.57%
Portfolio turnover rate* 51% 440% 301% 166% 416% 417% 256% 91%
Average commission per share $0.0449 N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES (Continued)
For a share outstanding during the Janus Aspen
six months or period ended June 30, 1997 (unaudited) Money Market
and the fiscal year or period ended December 31 Portfolio
- ----------------------------------------------------------------------------------
1997 1996 1995(5)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .02 .05 .04
Net gains or (losses) on securities
(both realized and unrealized) -- -- --
- ----------------------------------------------------------------------------------
Total from investment operations .02 .05 .04
- ----------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.02) (.05) (.04)
Dividends (in excess of net investment income) -- -- --
- ----------------------------------------------------------------------------------
Total distributions (.02) (.05) (.04)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
==================================================================================
Total return** 2.47% 5.05% 3.63%
==================================================================================
Net assets, end of period (in thousands) $6,573 $6,106 $1,735
Average net assets for the period (in thousands) 6,852 3,715 1,543
Ratio of gross expenses to average net assets*(6) 0.50% 0.50% 0.50%
Ratio of net expenses to average net assets*(6) 0.50% 0.50% 0.50%
Ratio of net investment income to average net assets* 4.98% 4.93% 5.30%
Portfolio turnover rate* N/A N/A N/A
Average commission per share N/A N/A N/A
- ----------------------------------------------------------------------------------
</TABLE>
* Annualized for periods of less than one full year.
**Total return not annualized for periods of less than 1 full year.
(1) Period September 13, 1993 (inception) to December 31, 1993
(2) Period May 1, 1997 (inception) to June 30, 1997
(3) Period May 2, 1994 (inception) to December 31, 1994
(4) Period May 1, 1996 (inception) to December 31, 1996
(5) Period May 1, 1995 (inception) to December 31, 1995
(6) See footnote #5 in notes to financial statements.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 44 AND 45
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - RETIREMENT SHARES
Janus Aspen Janus Aspen Janus Aspen Janus Aspen
Janus Aspen Aggressive Capital International Worldwide Janus Aspen
For a share outstanding during the period Growth Growth Appreciation Growth Growth Balanced
May 1, 1997 (inception) to June 30, 1997 (unaudited) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1997 1997 1997 1997 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.18 $ 16.09 $ 10.00 $ 16.80 $ 20.72 $ 15.39
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .03 (.01) .05 .06 .06 .08
Net gains or (losses) on securities
(both realized and unrealized) 1.35 2.62 1.69 1.72 2.32 1.12
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.38 2.61 1.74 1.78 2.38 1.20
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.10) -- -- (.09) (.14) (.20)
Dividends (in excess of net investment income) (.37) -- -- (.04) (.16) (.18)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.47) -- -- (.13) (.30) (.38)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.09 $ 18.70 $ 11.74 $ 18.45 $ 22.80 $ 16.21
====================================================================================================================================
Total return** 8.52% 16.28% 17.40% 10.59% 11.48% 7.78%
====================================================================================================================================
Net assets, end of period (in thousands) $ 11 $ 12 $ 12 $ 11 $ 11 $ 11
Average net assets for the period (in thousands) 10 10 10 10 10 10
Ratio of gross expenses to average net assets*(1) 1.24% 1.46% 1.75% 1.52% 1.38% 1.39%
Ratio of net expenses to average net assets* 1.24% 1.46% 1.75% 1.52% 1.38% 1.39%
Ratio of net investment income to average net assets* 1.06% (0.42%) 2.79% 1.70% 1.63% 3.11%
Portfolio turnover rate* 133% 108% 273% 49% 67% 108%
Average commission per share $ 0.0472 $ 0.0364 $ 0.0462 $ 0.0231 $ 0.0321 $ 0.0477
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - RETIREMENT SHARES (Continued)
Janus Aspen Janus Aspen Janus Aspen Janus Aspen
Equity Flexible Janus Aspen Short-Term Money
For a share outstanding during the period Income Income High-Yield Bond Market
May 1, 1997 (inception) to June 30, 1997 (unaudited) Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1997 1997 1997 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.00 $11.41 $11.19 $10.14 $1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income/(loss) .02 .13 .22 .10 .01
Net gains or (losses) on securities
(both realized and unrealized) 1.61 .19 .19 .04 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.63 .32 .41 .14 .01
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) -- (.34) (.49) (.25) (.01)
Dividends (in excess of net investment income) -- (.11) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (.45) (.49) (.25) (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.63 $11.28 $11.11 $10.03 $1.00
====================================================================================================================================
Total return** 16.30% 2.80% 3.71% 1.38% 0.73%
====================================================================================================================================
Net assets, end of period (in thousands) $12 $10 $10 $10 $10
Average net assets for the period (in thousands) 10 10 10 10 10
Ratio of gross expenses to average net assets*(1) 1.75% 1.24% 1.52% 1.15% 1.31%
Ratio of net expenses to average net assets* 1.75% 1.24% 1.50% 1.15% 1.31%
Ratio of net investment income to average net assets* 1.41% 2.22% 8.06% 5.51% 4.98%
Portfolio turnover rate* 51% 95% 440% 166% N/A
Average commission per share $0.0449 N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized for periods of less than one full year.
**Total return not annualized for periods of less than 1 full year.
(1) See footnote #5 in notes to financial statements.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 46
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
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 eleven
portfolios or series of shares with differing investment objectives and
policies. Seven portfolios invest primarily in equity securities: Janus Aspen
Growth Portfolio, Janus Aspen Aggressive Growth Portfolio, Janus Aspen Capital
Appreciation Portfolio, Janus Aspen International Growth Portfolio, Janus Aspen
Worldwide Growth Portfolio, Janus Aspen Equity Income Portfolio, and Janus Aspen
Balanced Portfolio. Three Portfolios invest primarily in income producing
securities: Janus Aspen Flexible Income Portfolio, Janus Aspen High-Yield
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 and Capital Appreciation Portfolio which are non-diversified.
Institutional 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. Retirement Shares of the Trust are issued
and redeemed only in connection with certain qualified retirement plans.
Organizational costs for the Portfolio were borne by Janus Capital Corporation
(the Trust's investment advisor). Effective May 1, 1997, the Trust issued two
new series of shares, the Janus Aspen Capital Appreciation Portfolio and Janus
Aspen Equity Income Portfolio. Janus Capital invested $10,000 of initial seed
capital, in each portfolio.
The following accounting policies have been consistently followed by the Trust
and are in conformity with accounting principles generally accepted in the
investment company industry.
Investment Valuation
Securities are valued at the closing price for securities traded on a principal
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. Certain dividends from
foreign securities will be recorded as soon as the Trust is informed of the
dividend if such information is obtained subsequent to the ex-dividend date.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums. Gains and losses are determined on the identified cost
basis, which is the same basis used for federal income tax purposes.
Forward Currency Transactions and Futures Contracts
The Portfolios enter into forward currency contracts in order to hedge their
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to lock in the U.S. dollar cost of firm purchase and
sales 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 U.S. dollar cost of the original contract and the value of the foreign
currency in U.S. dollars upon closing such contract is included in net realized
gain or loss on foreign currency transactions. Forward currency contracts held
by the Portfolios are fully collateralized by other securities which are denoted
in the accompanying schedule of investments. Such collateral is in the
possession of the Portfolio's custodian. The collateral is evaluated daily to
ensure its market value equals or exceeds the current market value of the
corresponding forward currency contracts.
Currency gain and loss 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 (i.e., treated as realized and subject to distribution) for federal
income tax purposes at fiscal year-end.
Foreign denominated assets and forward currency contracts may involve more risks
than domestic transactions, including: currency risk, political and economic
risk, regulatory risk, and
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 47
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited) (CON'TD)
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 and High-Yield Portfolios 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 .75% of the first $300 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 Capital Appreciation Portfolio, Janus Aspen International
Growth Portfolio, Janus Aspen Worldwide Growth Portfolio, Janus Aspen Balanced
Portfolio and Janus Aspen Equity Income Portfolio advisory fees are reduced to
the effective rates of Janus Fund, Janus Enterprise Fund, Janus Olympus Fund,
Janus Overseas Fund, Janus Worldwide Fund, Janus Balanced Fund, and Janus Equity
Income Fund respectively. The effective rate for each Portfolio for the period
ended June 30, 1997 was .65%, .73%, .75%, .68%, .66%, .78%, and .94%,
respectively. The Flexible Income and Short-Term Bond 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 High-Yield Portfolio's advisory fee rate
is payable at rates of .75% of the first $300 million of average net assets plus
.65% of average net assets in excess of $300 million. The Money Market
Portfolio's advisory fee rate is .25% of average net assets.
Janus Capital has also agreed to reduce its fee to the extent that normal
operating expenses exceed 1.25% of the average net assets of the Capital
Appreciation, International Growth, and Equity Income Portfolios, 1% of the
average net assets of the Flexible Income and High-Yield Portfolios, .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.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 48
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited) (CON'TD)
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 fees and expenses. Brokerage commissions paid, fees reduced, and the
net fees paid to DST for the period ended June 30, 1997 are noted below:
<TABLE>
<CAPTION>
DST Securities, Inc. Fund Expense DST Systems
Commissions Paid* Reduction* Costs
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Aspen Growth Portfolio $ 2,118 $ 1,588 $11,300
- ----------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio 4,876 3,657 6,670
- ----------------------------------------------------------------------------------------------
Janus Aspen Capital Appreciation Portfolio -- -- --
- ----------------------------------------------------------------------------------------------
Janus Aspen International Growth Portfolio -- -- 5,554
- ----------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 2,909 2,182 11,338
- ----------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 245 184 6,268
- ----------------------------------------------------------------------------------------------
Janus Aspen Equity Income Portfolio -- -- --
- ----------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio -- -- 5,387
- ----------------------------------------------------------------------------------------------
Janus Aspen High-Yield Portfolio -- -- 4,943
- ----------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio -- -- 5,164
- ----------------------------------------------------------------------------------------------
Janus Aspen Money Market Portfolio -- -- 5,080
- ----------------------------------------------------------------------------------------------
</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
The Portfolios have elected to treat gains and losses on forward foreign
currency contracts as capital gains and losses. Other foreign currency gains and
losses on debt instruments are treated as ordinary income for federal income tax
purposes pursuant to Section 988 of the Internal Revenue Code. The net capital
loss carryover noted below, as of December 31, 1996, is available to offset
future realized capital gains and thereby reduce future taxable gains
distributions until December 31, 2004. In 1996, Janus Aspen Aggressive Growth
Portfolio incurred "post - October" losses of $670,425 in the period from
November 1 through December 31, 1996. These losses will be deferred for tax
purposes and recognized in 1997.
The aggregate cost of investments and the composition of unrealized appreciation
and depreciation of investments for federal income tax purposes as of June 30,
1997 are also noted below.
<TABLE>
<CAPTION>
at 12/31/96 at June 30, 1997
---------------- -----------------------------------------------------------------
Net Capital Loss Federal Tax Unrealized Unrealized Net Appreciation/
Carryovers Cost Appreciation (Depreciation) (Depreciation)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio $ 426,562,562 $ 63,239,987 ($ 3,881,371) $ 59,358,616
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio ($ 10,344,419) 337,280,407 93,491,720 (2,372,626) 91,119,094
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Capital Appreciation Portfolio 893,412 47,469 (2,537) 44,932
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen International Growth Portfolio 90,465,623 12,959,475 (1,652,738) 11,306,737
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 958,610,039 205,211,683 (15,462,760) 189,748,923
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 157,218,701 13,136,706 (960,505) 12,176,201
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Equity Income Portfolio 422,283 44,143 (4,162) 39,981
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio 34,236,707 918,606 (101,444) 817,162
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen High-Yield Portfolio 1,047,654 29,188 (2,518) 26,670
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio 13,507,535 28,515 (25,441) 3,074
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Money Market Portfolio 6,176,349 -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
</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 expenses prior to any expense offset (gross
expense ratio) and after expense offsets (net expense ratio).
Janus Aspen Series Retirement Shares incur a pro rata share of operating
expenses. In addition the Retirement Shares pay up to .25% of average net assets
in distribution expense and up to .25% of average net assets in Participant
Administration Expenses.
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 49
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited) (CON'TD)
5. Expense Ratios
Listed below are the expense ratios for the various Portfolios before waiver of
certain fees and/or voluntary reduction of advisor's fee to the effective rate
of the corresponding Janus Retail Fund.
<TABLE>
<CAPTION>
Institutional Shares Retirement Shares
1997 1996 1995 1994 1993 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio 0.81% 0.83% 0.98% 1.23% 2.16% 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio 0.79% 0.83% 0.93% 1.14% 5.79% 1.48%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Capital Appreciation Portfolio 3.69% N/A N/A N/A N/A 4.19%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen International Growth Portfolio 1.21% 2.21% 3.57% 4.67% N/A 1.72%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 0.79% 0.91% 1.09% 1.49% 2.71% 1.43%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 0.89% 1.07% 1.55% 1.74% 7.92% 1.42%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Equity Income Portfolio 7.94% N/A N/A N/A N/A 8.44%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio N/A N/A 1.07% 1.35% 5.27% 1.24%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen High-Yield Portfolio 4.69% 6.29% N/A N/A N/A 5.20%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio 0.90% 0.84% 1.37% 1.40% 5.33% 1.54%
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Money Market Portfolio 0.55% 0.78% 1.07% N/A N/A 1.31%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
JANUS ASPEN SERIES JUNE 30, 1997 SEMIANNUAL REPORT 50
