Janus | Retirement Advantage
Variable Annuity Issued by Western Reserve Life Assurance Co. of Ohio, St.
Petersburg, FL
1999 Semiannual Report - Janus Aspen Series
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
Janus Aspen Equity Income Portfolio
Janus Aspen Growth and Income Portfolio
Janus Aspen Flexible Income Portfolio
Janus Aspen High-Yield Portfolio
Janus Aspen Money Market Portfolio
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Table | of Contents
Janus Aspen Series
Portfolio Managers' Commentaries and Schedules of Investments
Growth Portfolio .................................................... 1
Aggressive Growth Portfolio ......................................... 4
Capital Appreciation Portfolio ...................................... 7
International Growth Portfolio ...................................... 10
Worldwide Growth Portfolio .......................................... 15
Balanced Portfolio .................................................. 20
Equity Income Portfolio ............................................. 26
Growth and Income Portfolio ......................................... 30
Flexible Income Portfolio ........................................... 34
High-Yield Portfolio ................................................ 40
Money Market Portfolio .............................................. 44
Statements of Operations ................................................. 46
Statements of Assets and Liabilities ..................................... 48
Statements of Changes in Net Assets ...................................... 50
Financial Highlights ..................................................... 53
Notes to the Schedules of Investments .................................... 62
Notes to Financial Statements ............................................ 63
Explanations of Charts, Tables
and Financial Statements ............................................... 68
Year 2000 Discussion ..................................................... 70
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Janus | Aspen Growth Portfolio
[PHOTO]
Jim Craig
portfolio manager
For the six months ended June 30, 1999, Janus Aspen Growth Portfolio returned
16.67% for its Institutional Shares and 17.07% for its Retirement Shares. This
compares with a 12.38% gain posted by its benchmark, the S&P 500 Index.(1)
One of the most significant economic developments during the first half of our
fiscal year was the directional change in Asia's financial situation. More
specifically, Japan's economy finally began showing subtle signs of recovery.
This, coupled with exceptionally strong spending by U.S. consumers and
corporations (particularly in the technology realm), helped push long-term
interest rates higher. Meanwhile, the possibility of an improving global economy
caused investors to shift out of growth stocks into economically sensitive, or
cyclical, stocks. Fortunately, the rotation in the market was only temporary,
enabling growth stocks to rest briefly before continuing their upward climb.
In the latter part of the period, the U.S. economy continued to heat up,
sparking inflation concerns. As such, the Federal Reserve Board adopted a bias
toward tightening short-term interest rates and, as a precaution against rising
inflation, eventually carried out its bias, boosting rates a quarter-point on
June 30.
Despite the trends that developed during the period, we steered clear of the
economically sensitive areas of the market. In our view, the weaker fundamentals
of these companies simply won't allow them to sustain strong performance. That
said, we continued to invest in businesses that demonstrate exceptional earnings
growth potential, many of which rewarded us with healthy returns.
Among our biggest gainers were technology stocks, particularly semiconductors.
Texas Instruments advanced 68% as demand poured in for its digital signal
processors. DSPs, as they're known, convert signals such as sound and light into
digital form and are used in everything from cellular phones and PC batteries to
VCRs and camcorders. Our holdings in semiconductor companies Linear Technology
and Maxim Integrated Products also posted impressive results. As two of the
world's leading linear chip makers, these companies are the enablers behind much
of today's cutting-edge technology.
Another technology company that contributed to the Portfolio's performance was
Sun Microsystems. We view Sun as a pioneer in the lucrative enterprise software
market. Its most exciting product is JAVA, a programming language intended to
create Web-enabled applications that could someday become the standard for most
computing needs.
In the financial services realm, a new position for the Portfolio was American
International Group (AIG), one of the world's largest insurers. While most
financial stocks were flat, AIG gained thanks to an uptick in pricing within the
property and casualty insurance arena - the first in seven years. This line of
coverage accounts for nearly one-third of the company's business. Further
boosting the stock was a strategic acquisition of annuity provider Sun Life.
Because of exceptionally high demand for annuity products in Japan, we expect
this new segment of AIG's business to really take off.
While our holdings in Time Warner and Comcast produced solid results, cable
stocks in general experienced a brief correction late in the period. This
setback occurred as a result of a federal court ruling that would prohibit
telecommunications providers from controlling access to the networks of their
cable subsidiaries, which could slow consolidation within the cable industry.
However, cable stocks recovered on speculation that the Federal Communications
Commission will respond to this court ruling with proposals that are more
favorable to cable companies.
Despite our successes, the Portfolio experienced some disappointments, including
McKesson HBOC, a provider of pharmaceutical supply management and healthcare
information technology. The stock declined on reports of accounting
irregularities, and we liquidated the position at a loss. Likewise, a poor
showing by several of our pharmaceutical stocks was also a drag on performance.
Despite strong product pipelines at these companies, the overall industry was
hurt over concerns that the government could take a more active role in
regulating drug prices. On that note, we reduced our exposure to the more
expensive drug stocks, liquidating our holdings in Warner-Lambert and trimming
our Pfizer position.
Going forward, we believe a slowdown in the economy's growth rate would be
healthy for growth stocks, enabling company earnings to catch up with their
price multiples. That said, we were encouraged by the Federal Reserve's attempt
to moderate economic growth and keep inflation under control.
Thank you for your continued investment in Janus Aspen Growth Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 85.2% 93.2%
Foreign 7.5% 4.9%
Europe 2.9% 3.6%
Top 10 Equities 36.3% 36.5%
Number of Stocks 65 70
Cash & Cash Equivalents 14.8% 6.8%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 1999 1
<PAGE>
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 32.73%
5 Year 25.30%
From Inception 22.14%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 22.76%
5 Year 27.86%
From Inception Date of Institutional Shares 23.28%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 32.87%
5 Year 24.71%
From Portfolio Inception 21.35%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 85.2%
Automotive - Truck Parts and Equipment - 0.6%
193,750 Federal-Mogul Corp. .................... $ 10,075,000
Brewery - 1.2%
205,390 Anheuser-Busch Companies, Inc. ......... 14,569,853
136,496 Heineken N.V ........................... 6,988,958
21,558,811
Broadcast Services and Programming - 3.2%
766,660 AT&T Corp./Liberty Media Group - Class A* 28,174,755
403,980 Clear Channel Communications, Inc.* .... 27,849,371
56,024,126
Cable Television - 7.7%
276,640 Adelphia Communications Corp. - Class A* 17,601,220
2,152,650 Comcast Corp. - Class A ................ 82,742,484
719,980 Cox Communications, Inc. - Class A* .... 26,504,264
192,615 TCA Cable TV, Inc. ..................... 10,690,133
137,538,101
Cellular Telecommunications - 1.9%
235,480 Sprint Corp./PCS Group* ................ 13,451,795
104,442 Vodafone AirTouch PLC (ADR)* ........... 20,601,283
34,053,078
Circuits - 4.1%
581,400 Linear Technology Corp. ................ 39,099,150
516,700 Maxim Integrated Products, Inc.* ....... 34,360,550
73,459,700
Commercial Banks - 1.0%
237,135 Firstar Corp. .......................... $ 6,639,780
19,475 M&T Bank Corp. ......................... 10,711,250
17,351,030
Commercial Services - 1.1%
588,775 Paychex, Inc. .......................... 18,767,203
Computer Software - 1.7%
298,970 Microsoft Corp.* ....................... 26,963,357
249,813 Wind River Systems, Inc.* .............. 4,012,621
30,975,978
Computers - Memory Devices - 0.1%
16,385 VERITAS Software Corp.* ................ 1,555,551
Computers - Micro - 5.4%
307,085 Apple Computer, Inc.* .................. 14,221,874
1,199,425 Sun Microsystems, Inc.* ................ 82,610,397
96,832,271
Data Processing and Management - 0.7%
293,715 Automatic Data Processing, Inc. ........ 12,923,460
Diversified Financial Services - 1.1%
405,000 Citigroup, Inc. ........................ 19,237,500
Diversified Operations - 7.1%
15,440 Danaher Corp. .......................... 897,450
377,135 General Electric Co. ................... 42,616,255
864,959 Tyco International, Ltd. ............... 81,954,865
125,468,570
Electronic Components - Semiconductors - 2.6%
314,175 Texas Instruments, Inc. ................ 45,555,375
See Notes to Schedules of Investments.
2 Janus Aspen Series / June 30, 1999
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Janus | Aspen Growth Portfolio
SCHEDULE OF INVESTMENS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Electronic Safety Devices - 0.3%
141,350 Pittway Corp. - Class A ................ $ 4,832,403
Finance - Credit Card - 2.4%
334,215 American Express Co. ................... 43,489,727
Finance - Investment Bankers/Brokers - 2.8%
446,870 Charles Schwab Corp. ................... 49,099,841
Finance - Mortgage Loan Banker - 0.5%
149,975 Freddie Mac ............................ 8,698,550
Food - Wholesale - 0.2%
98,725 U.S. Foodservice* ...................... 4,208,153
Instruments - Scientific - 0.6%
268,450 Dionex Corp.* .......................... 10,872,225
Life and Health Insurance - 0.1%
153,142 Prudential Corp. PLC ................... 2,264,310
Medical - Drugs - 4.6%
350,000 American Home Products Corp. ........... 20,125,000
249,930 Eli Lilly and Co. ...................... 17,901,236
106,550 Pfizer, Inc. ........................... 11,693,863
243,235 Pharmacia & Upjohn, Inc. ............... 13,818,788
357,285 Schering-Plough Corp. .................. 18,936,105
82,474,992
Medical Instruments - 1.4%
150,000 Guidant Corp.* ......................... 7,715,625
215,000 Medtronic, Inc. ........................ 16,743,125
24,458,750
Money Center Banks - 2.3%
1,107,670 Bank of New York Co., Inc. ............. 40,637,643
Multi-Line Insurance - 2.8%
419,625 American International Group, Inc. ..... 49,122,352
Multimedia - 6.5%
1,202,586 Time Warner, Inc. ...................... 88,390,071
612,455 Viacom, Inc. - Class B* ................ 26,948,020
115,338,091
Networking Products - 4.3%
1,191,814 Cisco Systems, Inc.* ................... 76,872,003
Optical Supplies - 0.7%
113,715 Allergan, Inc. ......................... 12,622,365
Pipelines - 2.5%
549,115 Enron Corp. ............................ 44,890,151
Property and Casualty Insurance - 0.9%
116,260 Progressive Corp. ...................... 16,857,700
Publishing - Periodicals - 0.8%
340,884 Wolters Kluwer N.V ..................... 13,569,603
Radio - 0.6%
386,770 Infinity Broadcasting Corp. - Class A* . 11,506,408
Retail - Building Products - 1.0%
269,855 Home Depot, Inc. ....................... 17,388,782
Retail - Discount - 2.4%
271,685 Costco Companies, Inc.* ................ 21,751,780
426,290 Wal-Mart Stores, Inc. .................. 20,568,492
42,320,272
Retail - Drug Store - 0%
10,860 Walgreen Co. ........................... 319,012
Retail - Office Supplies - 0.7%
400,000 Staples, Inc.* ......................... 12,375,000
Retail - Restaurants - 0.2%
73,780 McDonald's Corp. ....................... $ 3,048,036
Super-Regional Banks - 0.6%
107,805 Northern Trust Corp. ................... 10,457,085
Telecommunication Equipment - 1.6%
21,511 Nokia Oyj .............................. 1,885,614
288,225 Nokia Oyj (ADR) ........................ 26,390,602
28,276,216
Telecommunication Services - 0.9%
125,000 Hyperion Telecommunications, Inc. -
Class A* ............................. 2,351,563
163,925 NTL, Inc.* ............................. 14,128,286
16,479,849
Telephone - Long Distance - 1.4%
292,860 MCI WorldCom, Inc.* .................... 25,259,175
Television - 1.2%
310,385 Univision Communications, Inc. - Class A* 20,485,410
Transportation - Air Freight - 1.4%
460,000 FDX Corp.* ............................. 24,955,000
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,067,043,968) ................. 1,514,554,858
- --------------------------------------------------------------------------------
Repurchase Agreement - 3.7%
$66,600,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing 7/1/99,
to be repurchased at $66,609,435
collateralized by $89,753,443 in
Fannie Mae, 5.50%-8.50%,
1/1/04-7/1/29 with a value of
$67,939,698 (cost $66,600,000) ....... 66,600,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 8.3%
Fannie Mae:
50,000,000 4.70%, 8/13/99 ....................... 49,719,306
50,000,000 4.66%, 10/19/99 ...................... 49,222,000
Freddie Mac
50,000,000 4.91%, 12/7/99 ....................... 48,867,000
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $147,836,673) ........ 147,808,306
- --------------------------------------------------------------------------------
U.S. Government Obligation - 2.7%
U.S. Treasury Bill
50,000,000 4.615%, 5/25/00 (cost $47,899,917) ... 47,856,500
- --------------------------------------------------------------------------------
Total Investments (total cost $1,329,380,558) - 99.9% ..... 1,776,819,664
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.1% 1,017,856
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $1,777,837,520
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 4.6% $ 81,954,865
Finland 1.6% 28,276,216
Netherlands 1.2% 20,558,561
United Kingdom 0.1% 2,264,310
United States++ 92.5% 1,643,765,712
- --------------------------------------------------------------------------------
Total 100.0% $ 1,776,819,664
++Includes Short-Term Securities (77.8% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 3
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Janus | Aspen Aggressive Growth Portfolio
[PHOTO]
Jim Goff
portfolio manager
Janus Aspen Aggressive Growth Portfolio posted impressive results for the six
months ended June 30, 1999, gaining 30.73% for its Institutional Shares and
30.43% for its Retirement Shares. In comparison, the Standard & Poor's MidCap
400 Index returned 6.87%.(1)
The disparity in performance between our Portfolio and the S&P 400 can be summed
up simply: We own mid-cap businesses in the fastest-growing segments of the
economy, such as technology, telecommunications and media.
While the market momentum that began at the end of 1998 carried through the
first quarter of this year, many growth stocks lost ground early in the second
quarter. An uptick in long-term interest rates, as well as concerns that some
high-growth companies were overvalued, were to blame. Concurrently, the belief
that Asia's economy was on the mend led investors to favor cyclical stocks,
which normally perform well during an economic recovery. This flirtation with
cyclicals was short-lived, however, and growth stocks soon bounced back. Even
better, the market, no longer driven solely by a handful of large-cap stocks,
broadened in the spring to include small-cap and mid-cap businesses, a move that
worked in our favor.
Turning our attention to the Portfolio, data storage is an area where we are
uncovering exciting investment opportunities. In particular, VERITAS Software
was a standout performer. Benefiting from the phenomenal growth of the Internet,
VERITAS has become the leading provider of software to manage and store the huge
amount of information being generated today. Moreover, like Microsoft, VERITAS
has proprietary control of its software system, enabling the company to further
leverage its dominant position as the demand for data management continues its
dramatic rise.
Another successful holding was Exodus Communications. This innovative company
has carved out a niche for itself building and maintaining the infrastructure
required to ensure the uninterrupted operation of corporate Web sites. By
offering customers a secure way to store the computer platforms housing their
data, Exodus has become a leading Web service provider.
Telecommunications companies Metromedia Fiber Network, Nextlink Communications
and Level 3 Communications also provided a significant boost to the Portfolio's
performance. These three businesses are building fiber-optic networks that,
because of their technological superiority, not only carry more voice and data
traffic, but carry it faster than the older systems they replace. As the
proliferation of the Internet creates a growing need for high-capacity broadband
networks, Metromedia, Nextlink and Level 3 are clearly positioned to benefit.
Hispanic Broadcasting, formerly known as Heftel, was one of our biggest gainers
in the media area. Catering to the Hispanic audience, the fastest-growing
minority population in the U.S., the company broadens its station base by
acquiring English language radio stations and converting them to Spanish. Today,
Hispanic Broadcasting owns the largest network of Spanish-language radio
stations in the U.S. Furthermore, many businesses are moving their promotional
dollars away from TV and newspapers to radio, where advertising is less
expensive and more targeted. This trend, combined with the fact that the buying
power of Hispanics is expected to more than double in the next 10 years, gives
Hispanic Broadcasting a powerful franchise with considerable momentum going
forward.
On the downside, we were disappointed by the performance of Apollo Group, which
operates the University of Phoenix. Despite the favorable outcome of a dispute
with the Department of Education over Apollo's student loan repayment practices,
increased expenditures for new facilities in Pennsylvania and Maryland put a
damper on earnings. Still, with the demand for adult education programs on the
rise, we remain optimistic about Apollo and have maintained the position.
Looking ahead, we believe the U.S. economy will continue to grow, albeit at a
moderate pace. But no matter what the backdrop, our goal is to find companies
with sustainable earnings growth that can withstand any economic environment.
Thank you for your investment in Janus Aspen Aggressive Growth Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 99.6% 95.6%
Foreign 7.7% 9.7%
Top 10 Equities 43.8% 47.4%
Number of Stocks 47 50
Cash & Cash Equivalents 0.4% 4.4%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
4 Janus Aspen Series / June 30, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 49.67%
5 Year 27.39%
From Inception 25.55%
- --------------------------------------------------------------------------------
S&P MidCap 400 Index
1 Year 17.18%
5 Year 22.28%
From Inception Date of Institutional Shares 18.33%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 48.93%
5 Year 26.72%
From Portfolio Inception 24.70%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 99.6%
Airlines - 1.1%
275,333 Ryanair Holdings PLC (ADR)* ............ $ 14,592,649
Audio and Video Products - 1.9%
402,825 Gemstar International Group, Ltd.* ..... 26,284,331
Broadcast Services and Programming - 2.0%
396,501 Clear Channel Communications, Inc.* .... 27,333,788
Cable Television - 3.6%
498,665 Adelphia Communications Corp. - Class A* 31,727,561
1,056,735 Rogers Communications, Inc.* ........... 17,105,898
48,833,459
Cellular Telecommunications - 4.2%
1,921,320 Crown Castle International Corp.* ...... 39,987,473
293,490 Sprint Corp./PCS Group* ................ 16,765,616
56,753,089
Circuits - 5.0%
1,004,455 Vitesse Semiconductor Corp.* ........... 67,737,934
Commercial Banks - 1.8%
883,615 Firstar Corp. .......................... 24,741,220
Commercial Services - 5.3%
224,660 Concord EFS, Inc.* ..................... 9,505,926
1,969,147 Paychex, Inc. .......................... 62,766,561
72,272,487
Computer Data Security - 2.1%
335,445 VeriSign, Inc.* ........................ 28,932,131
Computers - Memory Devices - 3.0%
427,230 VERITAS Software Corp.* ................ $ 40,560,148
Electric - Generation - 1.5%
346,940 AES Corp.* ............................. 20,165,887
Fiber Optics - 4.6%
331,045 E-Tek Dynamics, Inc.* .................. 15,745,328
1,303,050 Metromedia Fiber Network, Inc. - Class A* 46,828,359
62,573,687
Finance - Investment Bankers/Brokers - 2.7%
326,615 Charles Schwab Corp. ................... 35,886,823
Human Resources - 0.7%
897,980 Capita Group PLC ....................... 9,292,665
Internet Content - 0.1%
42,020 Flycast Communications Corp.* .......... 803,632
Internet Software - 9.5%
333,820 Concentric Network Corp.* .............. 13,269,345
523,530 Exodus Communications, Inc.* ........... 62,790,879
976,250 PSINet, Inc.* .......................... 42,710,938
139,905 Verio, Inc.* ........................... 9,723,398
128,494,560
Lasers - Systems and Components - 1.4%
111,035 Uniphase Corp.* ........................ 18,431,810
Medical - Drugs - 4.1%
348,950 MedImmune, Inc.* ....................... 23,641,363
384,065 Sepracor, Inc.* ........................ 31,205,281
54,846,644
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 5
<PAGE>
Janus | Aspen Aggressive Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical - Generic Drugs - 1.7%
642,275 Watson Pharmaceuticals, Inc.* .......... $ 22,519,767
Medical Products - 0.6%
104,590 MiniMed, Inc.* ......................... 8,046,893
Networking Products - 0.3%
27,100 Juniper Networks, Inc.* ................ 4,037,900
Radio - 7.9%
433,120 Chancellor Media Corp.* ................ 23,875,740
346,655 Citadel Communications Corp.* .......... 12,544,578
235,895 Entercom Communications Corp.* ......... 10,084,511
790,015 Hispanic Broadcasting Corp.* ........... 59,942,388
106,447,217
Resorts and Theme Parks - 1.0%
366,880 Premier Parks, Inc.* ................... 13,482,840
Retail - Building Products - 0.3%
69,735 Fastenal Co. ........................... 3,656,729
Retail - Internet - 8.7%
560,680 Amazon.com, Inc.* ...................... 70,155,085
308,865 eBay, Inc.* ............................ 46,638,615
116,793,700
Retail - Restaurants - 1.5%
1,403,942 PizzaExpress PLC ....................... 20,359,911
Schools - 5.2%
2,629,056 Apollo Group, Inc. - Class A* .......... 69,834,300
Telecommunication Services - 10.1%
425,410 AT&T Canada, Inc.* ..................... 27,252,828
406,380 Level 3 Communications, Inc.* .......... 24,408,199
880,585 McLeodUSA, Inc. - Class A* ............. 48,432,175
411,270 NTL, Inc.* ............................. 35,446,333
135,539,535
Telephone - Integrated - 4.1%
734,495 NEXTLINK Communications, Inc.* ......... 54,628,066
Television - 1.4%
277,908 Univision Communications, Inc. - Class A* 18,341,928
Therapeutics - 1.1%
276,805 QLT PhotoTherapeutics, Inc.* ........... 15,224,275
Wireless Equipment - 1.1%
614,460 American Tower Corp.* .................. 14,747,040
- --------------------------------------------------------------------------------
Total Common Stock (cost $960,224,352) 1,342,197,045
- --------------------------------------------------------------------------------
Repurchase Agreement - 2.2%
$30,100,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing 7/1/99,
to be repurchased at $30,104,264
collateralized by $40,564,244 in
Fannie Mae, 5.50%-8.50%,
1/1/04-7/1/29 with a value of
$30,705,479 (cost $30,100,000) ....... $ 30,100,000
- --------------------------------------------------------------------------------
Total Investments (total cost $990,324,352) - 101.8% ...... 1,372,297,045
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.8%) (24,942,183)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 1,347,354,862
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 4.3% $ 59,583,001
Ireland 1.1% 14,592,649
United Kingdom 2.2% 29,652,576
United States++ 92.4% 1,268,468,819
- --------------------------------------------------------------------------------
Total 100.0% $ 1,372,297,045
++Includes Short-Term Securities (90.2% excluding Short-Term Securities)
See Notes to Schedules of Investments.
6 Janus Aspen Series / June 30, 1999
<PAGE>
Janus | Aspen Capital Appreciation Portfolio
[PHOTO]
Scott Schoelzel
portfolio manager
Janus Aspen Capital Appreciation Portfolio gained 25.68% for its Institutional
Shares and 25.38% for its Retirement Shares for the six months ended June 30,
1999. We're pleased to report that these returns were more than double that of
the Portfolio's benchmark, the S&P 500 Index, which appreciated 12.38%.(1)
Before turning to a discussion of the Portfolio's performance, I'd like to touch
on the amount of cash the Portfolio is holding, which was in the range of 30% of
assets on the last day of the period. Let me assure you that, as always, cash is
a residual of the investment process. Instead of buying stocks indiscriminately
at any price, we take a prudent approach to deploying our investors' money. That
means our cash position may increase from time to time, especially when
volatility on the upside poses a challenge to uncovering new opportunities.
Speaking of market volatility, we experienced our fair share during the past six
months. While the record-breaking gains we saw at the end of 1998 continued
through the first quarter, the second quarter was another story altogether.
Rising interest rates, fears of inflation, and concerns that growth-oriented
companies were overvalued caused the market to temporarily stumble. At the same
time, the resurgence of Asia's faltering economy gave cyclical stocks, which
typically perform well during periods of recovery, a short-lived bounce. This
market rotation into cyclicals ran out of steam, however, and growth stocks were
soon on top again, reaffirming our focus on brand-name companies with great
business models, dominant franchises and exceptional management.
That description certainly fits Citigroup, the world's largest financial
services firm. After the company was beaten down earlier this year on worries
that inflation would spur interest rate hikes, we took advantage of the dip to
opportunistically build a significant position in Citigroup late in the period.
With a huge international presence and powerful global brand, Citigroup offers
sustainable earnings growth at a very attractive price, and the prospects for
continued success appear strong.
Another recognizable brand name is Nokia, the Finnish leader in wireless
communications. Benefiting from both innovative new products and cellular phone
subscriber growth that's expected to double in the next couple of years, Nokia's
stock price has soared during the past six months. As Nokia's market penetration
grows, we're confident the company will further solidify its leadership
position.
Several equally compelling stories are emerging from some unexpected places. One
such story is General Electric, a company known for its manufacturing prowess,
but saddled with a somewhat stodgy, old-fashioned image. In reality, nothing
could be further from the truth. Under the direction of CEO Jack Welch, today's
GE is aggressively embracing the power of the Web with a direct-to-the-supplier
business model not unlike the one pioneered by Dell Computer. This new model has
turned GE into a true growth company - and a solid performer for us.
Retailing is another area presenting exciting potential. With unemployment
dropping to record lows and inflation still contained, strong consumer spending
is powering a U.S. economic expansion that shows few signs of slowing down. In
fact, the big news lately is that people are actually spending more than they
earn. Against this backdrop, we increased our positions in Costco, the leading
discount warehouse, and Wal-Mart, the top discount retailer, and added Gap, the
popular casual clothing chain. All three companies have benefited from this
nationwide spending spree, boosting the Portfolio's returns during the period.
Despite the Portfolio's noteworthy gains, there were a few disappointments.
Specifically, pharmaceutical stocks proved to be a big drag on performance. We
sold our stake in Warner-Lambert, which, like many other drug companies,
declined on concerns of increased governmental regulation and rising interest
rates, as well as safety worries over its diabetes drug, Rezulin. Still, we held
on to our position in Eli Lilly, whose product pipeline contains exciting new
treatments that should support healthy earnings in the future.
Before closing, a word about expectations. Naturally, we set very high
expectations for ourselves and, for the most part, we believe we've delivered.
Nevertheless, I urge you to try to keep your expectations in line with reality.
Reality is that, while an annual investment return of 15% may seem modest,
compounded over five years, it doubles your money. So, while market volatility
may dampen the Portfolio's returns from time to time, the real proof of
performance is in the long-term results.
Thank you for your continued investment in Janus Aspen Capital Appreciation
Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 68.1% 89.7%
Foreign 6.2% 5.9%
Europe 3.5% 5.9%
Top 10 Equities 37.3% 57.5%
Number of Stocks 29 23
Cash & Cash Equivalents 31.9% 10.3%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 1999 7
<PAGE>
Janus | Aspen Capital Appreciation Portfolio
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/97)
1 Year 51.60%
From Inception 53.15%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 22.76%
From Portfolio Inception 30.19%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 50.82%
From Inception 52.42%
- --------------------------------------------------------------------------------
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 68.1%
Automotive - Cars and Light Trucks - 2.1%
94,050 Ford Motor Co. ......................... $ 5,307,947
Cable Television - 1.2%
78,800 Comcast Corp. - Class A ................ 3,028,875
Computer Data Security - 1.3%
40,580 VeriSign, Inc.* ........................ 3,500,024
Computer Software - 3.7%
105,940 Microsoft Corp.* ....................... 9,554,464
Computers - Memory Devices - 2.4%
113,400 EMC Corp.* ............................. 6,237,000
Computers - Micro - 3.7%
74,175 IBM Corp. .............................. 9,587,119
Diversified Financial Services - 7.8%
249,900 Citigroup, Inc. ........................ 11,870,250
81,570 Morgan Stanley, Dean Witter and Co. .... 8,360,925
20,231,175
Diversified Operations - 6.0%
73,935 General Electric Co. ................... 8,354,655
74,565 Tyco International, Ltd. ............... 7,065,034
15,419,689
Fiber Optics - 1.4%
100,000 Metromedia Fiber Network, Inc. - Class A* 3,593,750
Internet Content - 0.8%
15,970 Inktomi Corp.* ......................... 2,085,083
Internet Software - 3.2%
73,870 America Online, Inc.* .................. 8,162,635
Medical - Drugs - 3.3%
58,195 Eli Lilly and Co. ...................... $ 4,168,217
15,865 MedImmune, Inc.* ....................... 1,074,854
20,769 Pfizer, Inc. ........................... 2,279,397
11,300 Sepracor, Inc.* ........................ 918,125
8,440,593
Multimedia - 4.0%
141,760 Time Warner, Inc. ...................... 10,419,360
Networking Products - 3.5%
140,844 Cisco Systems, Inc.* ................... 9,084,438
Retail - Apparel and Shoe - 2.9%
150,000 Gap, Inc. .............................. 7,556,250
Retail - Building Products - 1.7%
68,560 Home Depot, Inc. ....................... 4,417,835
Retail - Discount - 5.9%
60,445 Costco Companies, Inc.* ................ 4,839,378
214,800 Wal-Mart Stores, Inc. .................. 10,364,100
15,203,478
Retail - Internet - 3.8%
64,380 eBay, Inc.* ............................ 9,721,380
Satellite Telecommunications - 0.9%
14,960 EchoStar Communications Corp. - Class A* 2,295,425
Savings/Loan/Thrifts - 2.4%
160,220 Telebanc Financial Corp.* .............. 6,208,525
Telecommunication Equipment - 3.5%
98,310 Nokia Oyj (ADR) ........................ 9,001,509
Telecommunication Services - 0.7%
30,475 Level 3 Communications, Inc.* .......... 1,830,405
See Notes to Schedules of Investments.
8 Janus Aspen Series / June 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Telephone - Long Distance - 1.9%
56,015 MCI WorldCom, Inc.* .................... $ 4,831,294
- --------------------------------------------------------------------------------
Total Common Stock (cost $141,929,082) .................... 175,718,253
- --------------------------------------------------------------------------------
Repurchase Agreement - 15.7%
$ 40,400,000 Morgan Stanley & Co., Inc., 5.10%,
dated 6/30/99, maturing 7/1/99,
to be repurchased at $40,405,723
collateralized by $54,445,032 in
Fannie Mae, 5.50%-8.50%, 1/1/04-
7/1/29 with a value of $41,212,670
(cost $40,400,000) ................... 40,400,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 15.2%
Fannie Mae
15,000,000 4.86%, 9/7/99 ........................ 14,856,900
Freddie Mac
25,000,000 4.91%, 12/7/99 ....................... 24,433,500
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $39,320,154) ......... 39,290,400
- --------------------------------------------------------------------------------
Total Investments (total cost $221,649,236) - 99.0% ....... 255,408,653
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 1.0% 2,691,855
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 258,100,508
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 3999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.8% $ 7,065,034
Finland 3.5% 9,001,509
United States++ 93.7% 239,342,110
- --------------------------------------------------------------------------------
Total 100.0% $ 255,408,653
++Includes Short-Term Securities (62.5% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 9
<PAGE>
Janus | Aspen International Growth Portfolio
[PHOTO]
Helen Young Hayes
portfolio manager
[PHOTO]
Laurence Chang
portfolio manager
Janus Aspen International Growth Portfolio outpaced its benchmark for the six
months ended June 30, 1999, returning 10.06% for its Institutional Shares and
9.78% for its Retirement Shares. By comparison, the Morgan Stanley Capital
International EAFE Index rose 3.97%.(1)
Given the mixed performance of international equity markets during the period,
we were especially pleased with the Portfolio's showing. Helping to bolster
several markets were improving economies in both Asia and Latin America.
Particularly encouraging was renewed economic growth in Japan, indicating it may
finally be showing signs of emerging from its long recession. Nonetheless, this
positive picture was offset by the lagging performance of European equities,
which struggled under the pressure of weakness in the new euro currency, a
rising interest rate environment, and conflict in Yugoslavia.
In reaction to the budding recoveries of several emerging market economies,
investors temporarily shifted out of growth stocks and into the more cyclical or
economically sensitive areas. However, even in the context of an improving
global economy, we generally don't find many cyclical stocks attractive. Our
long-term view is that the commodity-like nature of the cyclical products
developed and marketed by these companies makes it unlikely they will ever
sustain strong rates of return. Therefore, we continue to focus on powerful
growth opportunities we believe transcend fluctuations in individual economies.
One compelling area is wireless communications, which benefits from the
increasing convenience and affordability of cellular phone use. Although
cellular subscriber growth rates are accelerating worldwide, in China, demand is
particularly strong. As such, cellular service provider China Telecom, which
already enjoys a market share of more than 90%, posted solid returns for the
Portfolio. Another strong performer was Nokia, which continued to gain
recognition for its superior product offerings in wireless handset and
infrastructure base-station equipment. Mannesmann and NTT Mobile Communications
Network also aided our performance. Mannesmann owns Germany's largest mobile
phone network, while NTT Mobile, one of our newer holdings, is the dominant
Japanese cellular provider as well as a pioneer in Japan's rapidly developing
wireless data market.
Growth trends in wireless communications also contributed to the success of our
semiconductor holdings. Applications for semiconductors are as varied as
wireless phones, pagers, CD players and VCRs, to name a few. Consequently,
strong demand for these electronic components helped boost our returns in
leading chip maker Philips Electronics and ASM Lithography, a company we
recently added to the Portfolio and a provider of the technological tools
necessary in the production of semiconductor chips.
The strategic value of cable franchises is another concept we followed during
the period. Broadband technology, increasingly deployed by cable companies, is
allowing them to deliver value-added services such as high-speed Internet
access, telephony and video-on-demand into consumers' homes through an upgraded
platform. Our enthusiasm for this revitalized business has convinced us to pound
the pavement in search of the most compelling opportunities in this industry. As
such, we recently added positions in United Pan-Europe Communications, Britain's
NTL, and Canada's Shaw Communications, all leaders in their respective markets.
While we were pleased with our overall results for the period, we did experience
a few disappointments. A rising interest rate environment in both the U.S. and
in Europe negatively impacted valuations for several of our financial services
positions, including Dutch insurer Aegon, which declined despite meeting
earnings estimates. However, we believe Aegon's strong business model will
enable it to maintain its leadership position in the Dutch insurance industry,
and therefore increased our holdings.
Higher U.S. interest rates also hurt several of our pharmaceutical stocks, as
did a slowdown in new product launches and concerns that the U.S. government
could take a more active role in regulating drug prices. We consequently reduced
the Portfolio's overall drug weighting, liquidating our positions in Elan PLC
and trimming our exposure to Swiss drug giant Roche Holding.
Going forward, our outlook for international financial markets is one of
cautious optimism. While global economic prospects certainly appear better than
they were at the start of the year, they remain vulnerable to currency
pressures, especially in emerging markets, and to the potential for higher
interest rates in the U.S. Therefore, we remain focused on companies that are
either taking advantage of growth trends that transcend changes in the economy
or are undergoing powerful microeconomic changes, including restructuring and
cost reductions, that can improve their cash flow and earnings growth.
Thank you for your continued investment in Janus Aspen International Growth
Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 90.3% 91.0%
Foreign 84.7% 89.3%
Top 10 Equities 22.6% 26.4%
Number of Stocks 123 146
Cash, Cash Equivalents
& Fixed-Income Securities 9.7% 9.0%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends. Net dividends reinvested are the
dividends that remain to be reinvested after foreign tax obligations have
been met. Such obligations vary from country to country.
Past performance does not guarantee future results.
10 Janus Aspen Series / June 30, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/2/94)
1 Year 5.57%
5 Year 20.66%
From Inception 19.11%
- --------------------------------------------------------------------------------
Morgan Stanley Capital International EAFE Index(2)
1 Year 7.62%
5 Year 8.21%
From Inception Date of Institutional Shares 8.11%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 5.25%
5 Year 19.61%
From Portfolio Inception 18.08%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee 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.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 86.7%
Advertising Agencies - 1.3%
632,959 WPP Group PLC** ........................ $ 5,337,873
Athletic Footwear - 0.2%
9,446 Adidas - Salomon A.G.** ................ 937,609
Audio and Video Products - 1.3%
47,000 Sony Corp.** ........................... 5,067,494
Automotive - Cars and Light Trucks - 1.3%
13,726 DaimlerChrysler A.G.** ................. 1,189,040
7,526 DaimlerChrysler A.G. (ADR)** ........... 668,873
78,000 Honda Motor Co., Ltd.** ................ 3,305,954
5,163,867
Automotive - Truck Parts and Equipment - 0.2%
11,669 Valeo S.A.** ........................... 962,713
Brewery - 1.8%
672,780 Foster's Brewing Group, Ltd. ........... 1,896,206
55,612 Heineken N.V.** ........................ 2,847,482
213,000 Kirin Brewery Co., Ltd.** .............. 2,551,717
7,295,405
Broadcast Services and Programming - 1.7%
55,320 Grupo Televisa S.A. (GDR)* ............. 2,479,028
67,195 United International Holdings, Inc. - Class A 4,544,062
7,023,090
Cable Television - 2.8%
252,045 Le Groupe Videotron ltee.** ............ $ 3,967,877
324,696 Rogers Communications, Inc. - Class B*,** 5,188,386
473,281 TeleWest Communications PLC*,** ........ 2,126,194
11,282,457
Cellular Telecommunications - 6.9%
2,400,000 China Telecom, Ltd.*,** ................ 6,666,141
955 NTT Mobile Communications Network, Inc.** 12,939,935
95,623 Orange PLC*,** ......................... 1,397,272
323,526 Telecom Italia Mobile S.p.A.** ......... 1,933,130
42,780 Telesp Celular Participacoes S.A. (ADR) 1,144,365
103,040 Vodafone AirTouch PLC** ................ 2,040,020
9,422 Vodafone AirTouch PLC (ADR)** .......... 1,858,588
27,979,451
Commercial Banks - 1.7%
62,806 Argentaria, Caja Postal y Banco
Hipotecario de Espana S.A.** ........... 1,430,771
1,042 Julius Baer Holding A.G. - Class B** ... 2,969,310
23,733 Toronto-Dominion Bank** ................ 1,070,356
275,501 Unicredito Italiano S.p.A.** ........... 1,211,757
6,682,194
See Notes to Schedules of Investments
Janus Aspen Series / June 30, 1999 11
<PAGE>
Janus | Aspen International Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computer Services - 3.4%
18,453 Atos S.A.*,** .......................... $ 1,883,976
22,054 Cap Gemini S.A.** ...................... 3,466,136
119,023 Getronics N.V**,+ ...................... 4,578,392
343,415 Logica PLC** ........................... 3,626,878
3,912 WM-Data A.B. - Class B ................. 149,086
13,704,468
Computer Software - 0.6%
56,067 Tieto Corp. - Class B** ................ 2,335,941
Computers - Integrated Systems - 2.0%
20,920 ASM Lithography Holding N.V.*,** ....... 1,210,313
11,695 ASM Lithography Holding N.V. (ADR)*,** . 694,391
13,110 Equant N.V.*,** ........................ 1,208,686
15,589 Equant N.V. - New York Shares*,** ...... 1,467,315
124,000 Fujitsu, Ltd.** ........................ 2,494,626
94,035 SEMA Group PLC** ....................... 906,781
55,261 Tecnost S.p.A.*,** ..................... 136,489
8,118,601
Cosmetics and Toiletries - 1.7%
239,000 Kao Corp.** ............................ 6,713,696
Distribution and Wholesale - 1.1%
22,800 Softbank Corp.** ....................... 4,617,033
Diversified Operations - 6.5%
303,941 Hays PLC** ............................. 3,164,470
3,951 Reliance Industries, Ltd. (GDR)*,+ ..... 39,708
408,758 Rentokil Initial PLC** ................. 1,594,705
85,570 Seagram Company, Ltd. .................. 4,310,589
86,575 Tyco International, Ltd. ............... 8,202,981
113,031 Vivendi** .............................. 9,156,236
26,468,689
Electronic Components - 2.2%
57,075 Koninklijke (Royal) Phillips Electronics N.V.** 5,629,917
33,402 Koninklijke (Royal) Phillips Electronics N.V.
- New York Shares** .................. 3,369,427
8,999,344
Electronic Components - Semiconductors - 0.8%
31,690 Galileo Technology, Ltd.* .............. 1,435,953
51,055 Taiwan Semiconductor Manufacturing
Co., Ltd. (ADR)* ..................... 1,735,870
3,171,823
Fiber Optics - 0.5%
24,912 JDS FITEL, Inc.*,** .................... 2,078,738
Food - Catering - 1.0%
410,018 Compass Group PLC** .................... 4,065,299
Food - Retail - 0.4%
12,270 Carrefour S.A.** ....................... 1,803,153
Hotels and Motels - 0.5%
7,479 Accor S.A.** ........................... 1,878,087
Human Resources - 0.8%
303,308 Capita Group PLC** ..................... 3,138,755
Internet Software - 0.3%
21,380 Pacific Internet, Ltd.* ................ 1,012,878
Investment Management and Advisory Services - 0.2%
104,715 Amvescap PLC** ......................... 931,776
Life and Health Insurance - 0.5%
125,055 Prudential Corp. PLC** ................. 1,849,025
Machinery - General Industrial - 3.6%
98,660 Mannesmann A.G.** ...................... $ 14,722,544
Medical - Drugs - 5.2%
82,325 Pharmacia & Upjohn, Inc. ............... 4,677,089
362 Roche Holding A.G.** ................... 3,721,084
68,632 Sanofi-Synthelabo S.A.** ............... 2,912,525
93,550 SmithKline Beecham PLC** ............... 1,215,831
38,460 SmithKline Beecham PLC (ADR)** ......... 2,540,764
129,000 Takeda Chemical Industries** ........... 5,979,122
21,046,415
Metal Processors and Fabricators - 1.2%
442,976 Assa Abloy A.B. - Class B .............. 4,793,580
Money Center Banks - 3.8%
152,404 Banca Commerciale Italiana** ........... 1,113,706
1,269,662 Banca di Roma** ........................ 1,831,804
149,013 Banco Bilbao Vizcaya S.A.** ............ 2,152,958
249,978 Banco Santander Central Hispano S.A.** . 2,603,733
175,000 Development Bank of Singapore, Ltd. .... 2,138,072
311,000 Fuji Bank, Ltd.** ...................... 2,168,641
49,600 HSBC Holdings PLC*,** .................. 1,809,190
9,356 ING Groep N.V.** ....................... 506,550
89,685 Lloyds TSB Group PLC** ................. 1,215,786
15,540,440
Mortgage Banks - 0.9%
39,919 Deutsche Pfandbriefbank A.G.** ......... 3,622,727
Multi-Line Insurance - 1.8%
33,052 Aegon N.V.** ........................... 2,397,922
37,839 Assicurazioni Generali** ............... 1,312,710
7,838 Axa** .................................. 956,232
4,233 Zurich Allied A.G.** ................... 2,445,168
7,112,032
Multimedia - 1.7%
37,540 News Corp., Ltd. (ADR) ................. 1,325,631
156,102 Publishing & Broadcasting, Ltd. ........ 1,030,174
115,017 Shaw Communications, Inc. - Class B** .. 4,530,590
6,886,395
Oil Companies - Integrated - 0.6%
15,871 Elf Aquitaine S.A.** ................... 2,329,069
Publishing - Periodicals - 2.5%
119,817 Talentum - Class B** ................... 1,828,746
207,981 Wolters Kluwer N.V.** .................. 8,279,120
10,107,866
Retail - Diversified - 0.5%
33,000 Ito-Yokado Co., Ltd.** ................. 2,208,431
Retail - Restaurants - 0.3%
226,922 TelePizza S.A.*,** ..................... 1,174,772
Security Services - 2.1%
578,488 Securitas A.B. - Class B ............... 8,641,517
Telecommunication Equipment - 4.8%
66,808 Nokia Oyj** ............................ 5,856,264
85,540 Nokia Oyj (ADR)** ...................... 7,832,256
24,770 Nortel Networks Corp. .................. 2,150,346
22,961 Telefonaktiebolaget L.M. Ericsson - Class B 735,952
87,254 Telefonaktiebolaget L.M. Ericsson - Class B
(ADR) ................................ 2,873,929
19,448,747
See Notes to Schedules of Investments.
12 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Amount
- --------------------------------------------------------------------------------
Telecommunication Services - 7.3%
1,085,275 Cable & Wireless Optus, Ltd.* .......... $ 2,471,184
338,522 COLT Telecom Group PLC*,** ............. 7,099,604
142,964 Energis PLC*,** ........................ 3,409,608
36,660 Global TeleSystems Group, Inc.* ........ 2,969,460
56,930 NTL, Inc.* ............................. 4,906,654
268 NTT Data Corp.** ....................... 2,130,074
112,890 SK Telecom Co., Ltd. (ADR) ............. 1,919,130
82,865 United Pan-Europe Communications N.V.*,** 4,495,004
29,400,718
Telephone - Integrated - 6.3%
153,839 British Telecommunications PLC** ....... 2,584,042
37 Nippon Telegraph & Telephone Corp.** ... 431,028
46,515 Sonera Group Oyj** ..................... 1,016,956
10,639 Swisscom A.G.** ........................ 4,003,509
34,900 Telecom Argentina Stet S.A. (ADR) ...... 933,575
33,355 Telefonica de Argentina S.A. (ADR) ..... 1,046,513
164,387 Telefonica S.A.*,** .................... 7,918,631
6,392 Telefonica S.A. (ADR)*,** .............. 940,473
74,100 Telefonos de Mexico S.A. (ADR) ......... 5,988,206
13,295 Viatel, Inc.* .......................... 746,182
25,609,115
Television - 0.5%
84,957 Modern Times Group A.B. - Class B* ..... 1,843,688
Therapeutics - 0.8%
58,695 QLT PhotoTherapeutics, Inc.* ........... 3,228,225
Transportation - Air Freight - 0.2%
36,811 TNT Post Group N.V.** .................. 878,824
Travel Services - 0.1%
97 Kuoni Reisen A.G.*,** .................. 374,063
Water - 0.8%
17,258 Suez Lyonnaise des Eaux** .............. 3,112,816
- --------------------------------------------------------------------------------
Total Common Stock (cost $268,348,197) .................... 350,701,443
- --------------------------------------------------------------------------------
Foreign Bond - 0.2%
EUR
613,350 Tecnost International N.V., 4.487%
company guaranteed notes
due 6/23/04** (cost $632,097) ........ 642,272
- --------------------------------------------------------------------------------
Preferred Stock - 3.6%
Automotive - Cars and Light Trucks - 0.9%
1,577 Porsche A.G.** ......................... 3,708,000
Broadcast Services and Programming - 0.9%
69,060 UnitedGlobalCom, Inc., convertible, 7.00% 3,453,000
Diversified Financial Services - 0.4%
3,309 Marschollek, Lautenschlaeger und
Partner A.G.** ....................... 1,576,565
Telephone - Integrated - 1.4%
61,075 Telecomunicacoes Brasileiras S.A. (ADR) 5,508,202
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $12,437,468) .................. 14,245,767
- --------------------------------------------------------------------------------
Rights - 0%
442,976 Assa Abloy A.B.* (cost $0) ............. $ 93,787
- --------------------------------------------------------------------------------
Repurchase Agreement - 8.5%
$ 34,500,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing 7/1/99,
to be repurchased at $34,504,888
collateralized by $46,493,901 in
Fannie Mae, 5.50%-8.50%,
1/1/04-7/1/29 with a value of
$35,193,988 (cost $34,500,000) ....... 34,500,000
- --------------------------------------------------------------------------------
U.S. Government Obligation - 0.2%
950,000 U.S. Treasury Bill
4.30%, 7/22/99
(amortized cost $947,534) ............ 947,534
- --------------------------------------------------------------------------------
Total Investments (total cost $316,865,296) - 99.2% ....... 401,130,803
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.8% 3,338,462
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 404,469,265
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 13
<PAGE>
Janus | Aspen International Growth Portfolio
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 0.5% $ 1,980,088
Australia 1.7% 6,723,194
Bermuda 2.0% 8,202,981
Brazil 1.7% 6,652,566
Canada 6.6% 26,525,106
Finland 4.7% 18,870,163
France 7.1% 28,460,944
Germany 6.6% 26,425,359
Hong Kong 2.1% 8,475,331
India -- 39,708
Israel 0.4% 1,435,953
Italy 1.9% 7,539,596
Japan 12.6% 50,607,751
Mexico 2.1% 8,467,233
Netherlands 9.5% 38,205,614
Singapore 0.8% 3,150,950
South Korea 0.5% 1,919,130
Spain 4.0% 16,221,336
Sweden 4.8% 19,131,538
Switzerland 3.4% 13,513,134
Taiwan 0.4% 1,735,870
United Kingdom 12.0% 48,244,692
United States++ 14.6% 58,602,566
- --------------------------------------------------------------------------------
Total 100.0% $ 401,130,803
++Includes Short-Term Securities (5.8% excluding Short-Term Securities)
Forward Currency Contracts, Open at June 30, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 10/8/99 10,200,000 $16,100,700 $342,720
British Pound 10/14/99 900,000 1,420,740 36,720
British Pound 12/9/99 7,080,000 11,184,984 162,606
Canadian Dollar 10/8/99 5,800,000 3,966,083 3,585
Canadian Dollar 11/18/99 1,100,000 752,703 4,101
Euro 7/15/99 110,000 113,630 15,191
Euro 7/22/99 4,800,000 4,956,000 694,080
Euro 7/28/99 900,000 928,800 129,420
Euro 8/12/99 3,050,000 3,143,940 458,110
Euro 8/27/99 7,400,000 7,619,040 1,055,980
Hong Kong Dollar 5/7/01 55,000,000 6,928,610 (24,501)
Japanese Yen 9/16/99 359,800,000 2,973,898 135,869
Japanese Yen 10/8/99 1,700,000,000 14,051,677 509,063
Japanese Yen 10/14/99 500,000,000 4,132,884 156,384
Japanese Yen 10/15/99 150,000,000 1,239,867 38,905
Japanese Yen 10/21/99 509,000,000 4,207,321 192,631
Japanese Yen 11/18/99 450,700,000 3,725,582 159,340
Japanese Yen 12/3/99 50,000,000 413,320 3,347
Swiss Franc 10/8/99 2,200,000 1,439,131 68,234
Swiss Franc 10/21/99 50,000 32,757 1,608
Swiss Franc 11/18/99 185,000 121,599 7,592
Swiss Franc 12/3/99 165,000 108,638 3,607
- --------------------------------------------------------------------------------
Total $89,561,904 $4,154,592
See Notes to Schedules of Investments.
14 Janus Aspen Series / June 30, 1999
<PAGE>
Janus | Aspen Worldwide Growth Portfolio
[PHOTO]
Helen Young Hayes
portfolio manager
For the six months ended June 30, 1999, Janus Aspen Worldwide Growth Portfolio
outperformed its benchmark, the Morgan Stanley Capital International World
Index. The Portfolio returned 12.75% for its Institutional Shares and 12.53% for
its Retirement Shares, compared with an 8.51% gain posted by the Index.(1)
International markets moved modestly higher over the past six months, while the
U.S. stock market gained substantially. The solid performance of domestic
equities occurred despite the volatility brought on by rising U.S. interest
rates. In Europe, however, upward pressure on long-term rates hindered equities,
although Europe's economy did show some subtle signs of improvement late in the
period. Meanwhile, Asian and Latin American markets bounced back considerably,
indicating the worst may be over for economies in those regions. Most notable
was progress in Japan, as it appeared to finally be emerging from its economic
recession.
The Portfolio's solid returns can be attributed to our focus on finding
companies capable of generating robust earnings in a variety of economic
conditions. Many of these businesses are tapping into powerful growth trends at
work both here in the U.S. economy and abroad.
The proliferation of the Internet, for example, benefited several of our U.S.
technology holdings, one standout being Cisco Systems. Not only is Cisco
building the networking equipment that helps support the Internet, but its
products are also quickly becoming the industry standard. In addition, a large
new market is emerging as the global telecommunications industry begins to
transition networks to Internet-based standards.
Increasing Internet acceptance and utilization also aided the Portfolio's
telecommunications stocks. A standout in this industry was MCI WorldCom, which
continues to be a leader in long-distance telephone service, as well as data and
Internet communications services. Furthermore, MCI plans to expand its menu of
offerings to include high-speed Internet access via wireless cable.
Also contributing to the Portfolio's gains were several of its wireless
communications holdings. One company that is emerging as an early leader in this
market is Japan's NTT Mobile Communications. NTT Mobile is at the forefront of
efforts to develop wireless technology and was among the first to provide
services that allow customers to check their e-mail or surf the Internet over
cellular handsets. While these services are just now being introduced to
customers, interest in them is exceptionally high. Another strong performer was
Nokia. Already the leader in the cellular phone equipment industry, Nokia is
poised to capitalize on the expected doubling of worldwide cellular subscriber
growth by 2001.
The strategic value of cable franchises is another concept we continued to
follow during the period. Because cable firms have already extended
high-capacity networks into consumers' homes, these companies are viewed as the
vital connection in the delivery of broadband services. Among our favorite U.S.
cable holdings were market leaders Time Warner and Comcast. We also identified
several exciting opportunities in other countries, including Britain's NTL,
Rogers Communications in Canada and United Pan-Europe Communications.
With the growth of digital cable and broadband Internet services, we believe
media content will take on greater significance. As a result, we have invested
in content providers such as The Seagram Company, which owns Universal Pictures
and Universal Music Group, the world's largest music company. We also added a
position in Viacom, owner of ShowTime Networks, MTV and other valuable cable
brands.
Despite the Portfolio's impressive performance, a few of our holdings did not
meet our expectations. Cap Gemini and Getronics, two European information
technology companies, were hurt by concerns over a potential Y2K-related
slowdown in corporate software spending. However, continuing pressure on
businesses to increase productivity, as well as the growing focus on e-commerce,
should keep investments in information technology robust. Therefore, we viewed
the decline in these companies' stocks as temporary and used it as an
opportunity to add to both positions.
Another disappointment was U.S. drug giant Warner-Lambert. Pharmaceutical stocks
in general were hurt by speculation about U.S. government price controls and the
move toward more economically sensitive stocks. However, we remain generally
positive on the fundamentals in this industry as new drug development techniques
should continue to accelerate growth.
Going forward, our outlook for the global economy is one of cautious optimism.
Nonetheless, we will remain focused on companies we believe capable of
generating superior performance in any economic environment.
Thank you for your investment in Janus Aspen Worldwide Growth Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 91.5% 90.0%
Foreign 61.3% 65.8%
Top 10 Equities 28.3% 25.9%
Number of Stocks 133 156
Cash, Cash Equivalents
& Fixed-Income Securities 8.5% 10.0%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends. Net dividends reinvested are the
dividends that remain to be reinvested after foreign tax obligations have
been met. Such obligations vary from country to country.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 1999 15
<PAGE>
Janus | Aspen Worldwide Growth Portfolio
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 14.44%
5 Year 24.75%
From Inception 24.31%
- --------------------------------------------------------------------------------
Morgan Stanley Capital International World Index(2)
1 Year 15.67%
5 Year 16.75%
From Inception Date of Institutional Shares 15.12%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 13.90%
5 Year 24.02%
From Portfolio Inception 23.40%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee 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.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 89.9%
Advertising Agencies - 0%
36,544 WPP Group PLC** ........................ $ 308,183
Applications Software - 0.3%
128,375 Intuit, Inc.* .......................... 11,569,797
Athletic Footwear - 0.2%
94,886 Adidas - Salomon A.G.** ................ 9,418,378
Audio and Video Products - 0.7%
228,700 Sony Corp.** ........................... 24,658,209
Automotive - Cars and Light Trucks - 0.9%
131,048 DaimlerChrysler A.G.** ................. 11,352,275
68,369 DaimlerChrysler A.G. (ADR)** ........... 6,076,295
358,000 Honda Motor Co., Ltd.** ................ 15,173,482
32,602,052
Automotive - Truck Parts and Equipment - 0.2%
101,947 Valeo S.A.** ........................... 8,410,807
Brewery - 1.3%
530,105 Heineken N.V.** ........................ 27,142,783
1,806,000 Kirin Brewery Co., Ltd.** .............. 21,635,683
48,778,466
Broadcast Services and Programming - 1.7%
868,465 AT&T Corp./Liberty Media Group - Class A* 31,916,089
326,415 Clear Channel Communications, Inc.* .... 22,502,234
204,850 Grupo Televisa S.A. (GDR)* ............. 9,179,841
63,598,164
Cable Television - 2.3%
1,379,760 Comcast Corp. - Class A ................ $ 53,034,525
262,035 MediaOne Group, Inc.* .................. 19,488,853
932,536 Rogers Communications, Inc. - Class B*,** 14,901,190
87,424,568
Cellular Telecommunications - 7.0%
14,688,000 China Telecom, Ltd.*,** ................ 40,796,782
7,700 NTT Mobile Communications Network, Inc.** 104,332,456
891,216 Orange PLC*,** ......................... 13,022,716
476,285 Sprint Corp./PCS Group* ................ 27,207,781
3,016,678 Telecom Italia Mobile S.p.A.** ......... 18,025,224
1,015,915 Vodafone AirTouch PLC** ................ 20,113,418
218,450 Vodafone AirTouch PLC (ADR)** .......... 43,089,263
266,587,640
Commercial Banks - 0.7%
609,526 Argentaria, Caja Postal y Banco
Hipotecario de Espana S.A.** ......... 13,885,489
4,089 Julius Baer Holding A.G. - Class B** ... 11,652,120
25,537,609
Commercial Services - 0.6%
693,630 Paychex, Inc. .......................... 22,109,456
See Notes to Schedules of Investments.
16 Janus Aspen Series / June 30, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computer Services - 3.5%
131,228 Atos S.A.*,** .......................... $ 13,397,844
212,167 Cap Gemini S.A.** ...................... 33,345,407
1,106,569 Getronics N.V.**,+ ..................... 42,565,776
3,458,021 Logica PLC** ........................... 36,520,886
134,324 WM-Data A.B. - Class B ................. 5,119,064
130,948,977
Computer Software - 3.0%
1,066,185 Microsoft Corp.* ....................... 96,156,560
444,287 Tieto Corp. - Class B** ................ 18,510,503
114,667,063
Computers - Integrated Systems - 1.8%
136,447 ASM Lithography Holding N.V.*,** ....... 7,894,054
112,105 ASM Lithography Holding N.V. (ADR)*,** . 6,656,234
123,632 Equant N.V.*,** ........................ 11,398,341
141,720 Equant N.V. - New York Shares*,** ...... 13,339,395
1,132,000 Fujitsu, Ltd.** ........................ 22,773,525
411,646 SEMA Group PLC** ....................... 3,969,509
916,446 Tecnost S.p.A.*,** ..................... 2,263,527
68,294,585
Computers - Memory Devices - 0.3%
213,350 EMC Corp.* ............................. 11,734,250
Computers - Micro - 0.7%
409,370 Sun Microsystems, Inc.* ................ 28,195,359
Cosmetics and Toiletries - 1.6%
730,210 Estee Lauder Companies, Inc. - Class A . 36,601,776
843,000 Kao Corp.** ............................ 23,680,526
60,282,302
Distribution and Wholesale - 0.2%
46,200 Softbank Corp.** ....................... 9,355,568
Diversified Operations - 7.7%
2,823,475 Hays PLC** ............................. 29,396,501
3,861,789 Rentokil Initial PLC** ................. 15,066,162
356,195 Seagram Company, Ltd. .................. 17,943,323
1,655,100 Tyco International, Ltd. ............... 156,820,725
900,228 Vivendi** .............................. 72,924,244
292,150,955
Electronic Components - 2.0%
438,552 Koninklijke (Royal) Philips Electronics N.V.** 43,259,281
330,447 Koninklijke (Royal) Philips Electronics N.V.
- New York Shares** .................. 33,333,841
76,593,122
Finance - Credit Card - 0.7%
206,615 American Express Co. ................... $ 26,885,777
Finance - Mortgage Loan Banker - 0.4%
203,660 Fannie Mae ............................. 13,925,253
Food - Catering - 0.5%
1,902,740 Compass Group PLC** .................... 18,865,528
Food - Retail - 1.0%
178,278 Carrefour S.A.** ....................... 26,199,068
366,320 Kroger Co.* ............................ 10,234,065
36,433,133
Hotels and Motels - 0.2%
34,199 Accor S.A.** ........................... 8,587,873
Human Resources - 0.5%
1,703,956 Capita Group PLC** ..................... 17,633,234
Internet Software - 0.3%
111,090 America Online, Inc.* .................. 12,275,445
Investment Management and Advisory Services - 0.2%
709,883 Amvescap PLC** ......................... 6,316,690
Life and Health Insurance - 0.4%
1,110,634 Prudential Corp. PLC** ................. 16,421,494
Machinery - General Industrial - 3.0%
765,493 Mannesmann A.G.** ...................... 114,230,738
Medical - Biomedical and Genetic - 0.5%
288,115 Amgen, Inc.* ........................... 17,539,001
Medical - Drugs - 6.3%
228,510 American Home Products Corp. ........... 13,139,325
210,355 Bristol-Myers Squibb Co. ............... 14,816,880
165,255 Pfizer, Inc. ........................... 18,136,736
747,990 Pharmacia & Upjohn, Inc. ............... 42,495,182
3,453 Roche Holding A.G.** ................... 35,494,208
316,400 Sanofi-Synthelabo S.A.** ............... 13,427,017
107,805 Sepracor, Inc.* ........................ 8,759,156
843,434 SmithKline Beecham PLC** ............... 10,961,769
186,210 SmithKline Beecham PLC (ADR)** ......... 12,301,498
949,000 Takeda Chemical Industries** ........... 43,985,946
368,878 Warner-Lambert Co. ..................... 25,590,911
239,108,628
Medical Instruments - 0.5%
244,025 Medtronic, Inc. ........................ 19,003,447
Metal Processors and Fabricators - 0.9%
3,186,856 Assa Abloy A.B. - Class B .............. 34,485,950
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 17
<PAGE>
Janus | Aspen Worldwide Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares and Principal Amount Market Value
- --------------------------------------------------------------------------------
Money Center Banks - 2.5%
1,365,868 Banca Commerciale Italiana** ........... $ 9,981,208
8,776,999 Banca di Roma** ........................ 12,663,011
1,435,375 Banco Bilbao Vizcaya S.A.** ............ 20,738,471
2,386,052 Banco Santander Central Hispano S.A.** . 24,852,753
281,600 HSBC Holdings PLC*,** .................. 10,271,528
90,192 ING Groep N.V.** ....................... 4,883,155
774,046 Lloyds TSB Group PLC** ................. 10,493,107
93,883,233
Mortgage Banks - 0.5%
212,930 Deutsche Pfandbriefbank A.G.** ......... 19,323,810
Multi-Line Insurance - 2.1%
316,642 Aegon N.V.** ........................... 22,972,372
702,028 Assicurazioni Generali** ............... 24,354,748
145,070 Axa** .................................. 17,698,464
23,837 Zurich Allied A.G.** ................... 13,769,306
78,794,890
Multimedia - 3.0%
99,908 Shaw Communications, Inc. - Class B** .. 3,935,438
1,288,170 Time Warner, Inc. ...................... 94,680,495
372,180 Viacom, Inc. - Class B* ................ 16,375,920
114,991,853
Networking Products - 5.2%
3,074,790 Cisco Systems, Inc.* ................... 198,323,955
Oil Companies - Integrated - 0.6%
146,532 Elf Aquitaine S.A.** ................... 21,503,572
Pipelines - 0.4%
179,960 Enron Corp. ............................ 14,711,730
Publishing - Periodicals - 1.5%
1,400,033 Wolters Kluwer N.V.** .................. 55,731,253
Radio - 0.2%
136,480 Chancellor Media Corp.* ................ 7,523,460
Recycling - 0.2%
165,718 Tomra Systems A.S.A .................... 6,231,083
Retail - Diversified - 0.5%
271,000 Ito-Yokado Co., Ltd.** ................. 18,135,902
Retail - Internet - 0.7%
103,900 Amazon.com, Inc.* ...................... 13,000,488
99,020 eBay, Inc.* ............................ 14,952,020
27,952,508
Retail - Restaurants - 0.3%
2,223,283 TelePizza S.A.*,** ..................... 11,509,904
Security Services - 0.8%
1,938,540 Securitas A.B. - Class B ............... 28,958,123
Telecommunication Equipment - 5.3%
1,020,180 Nokia Oyj** ............................ $ 89,427,061
848,550 Nokia Oyj (ADR)** ...................... 77,695,359
597,249 Telefonaktiebolaget L.M. Ericsson - Class B 19,143,170
440,822 Telefonaktiebolaget L.M. Ericsson - Class B
(ADR) ................................ 14,519,575
200,785,165
Telecommunication Services - 3.5%
1,127,605 COLT Telecom Group PLC*,** ............. 23,648,534
1,294,866 Energis PLC*,** ........................ 30,881,802
86,155 Global TeleSystems Group, Inc.* ........ 6,978,555
221,505 Korea Telecom Corp. (ADR)* ............. 8,860,200
227,465 Level 3 Communications, Inc.* .......... 13,662,117
215,645 NTL, Inc.* ............................. 18,585,903
1,625 NTT Data Corp.** ....................... 12,915,562
338,081 United Pan-Europe Communications N.V.*,** 18,339,172
133,871,845
Telephone - Integrated - 6.8%
951,311 AT&T Corp. ............................. 53,095,045
1,498,957 British Telecommunications PLC**,# ..... 25,178,060
389 Nippon Telegraph & Telephone Corp.** ... 4,531,621
99,388 Swisscom A.G.** ........................ 37,400,202
242,110 Telecom Argentina Stet S.A. (ADR) ...... 6,476,443
319,560 Telefonica de Argentina S.A. (ADR) ..... 10,026,195
1,364,890 Telefonica S.A.*,** .................... 65,747,727
106,718 Telefonica S.A. (ADR)*,** .............. 15,700,886
463,280 Telefonos de Mexico S.A. (ADR) ......... 37,438,815
255,594,994
Telephone - Local - 0.2%
132,160 U.S. West, Inc. ........................ 7,764,400
Telephone - Long Distance - 1.7%
734,925 MCI WorldCom, Inc.* .................... 63,387,281
Transportation - Air Freight - 0.7%
483,980 FDX Corp.* ............................. 26,255,915
Travel Services - 0.1%
1,323 Kuoni Reisen A.G.*,** .................. 5,101,914
Water - 1.0%
554,430 Azurix Corp.* .......................... 11,088,600
148,001 Suez Lyonnaise des Eaux** .............. 26,694,862
37,783,462
- --------------------------------------------------------------------------------
Total Common Stock (cost $2,327,722,576) .................. 3,403,057,953
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
18 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Foreign Bond - 0.3%
EUR
10,171,750 Tecnost International N.V., 4.487%
company guaranteed notes
due 6/23/04** (cost $10,482,650) ..... $ 10,651,385
- --------------------------------------------------------------------------------
Preferred Stock - 1.6%
Automotive - Cars and Light Trucks - 0.3%
5,142 Porsche A.G.** ......................... 12,090,385
Telephone - Integrated - 1.3%
522,350 Telecomunicacoes Brasileiras S.A. (ADR) 47,109,441
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $58,213,423) .................. 59,199,826
- --------------------------------------------------------------------------------
Rights 0%
3,186,856 Assa Abloy A.B.* (cost $0) ............. 674,725
- --------------------------------------------------------------------------------
Repurchase Agreeement - 3.2%
$122,600,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing 7/1/99,
to be repurchased at $122,617,368
collateralized by $165,221,804 in
Fannie Mae, 5.50%-8.50%, 1/1/04-7/1/29
with a value of $125,066,171
(cost $122,600,000) .................. 122,600,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 2.6%
Fannie Mae:
50,000,000 4.70%, 8/6/99 ........................ 49,765,000
25,000,000 4.86%, 9/7/99 ........................ 24,761,500
Freddie Mac
25,000,000 4.74%, 11/2/99 ....................... 24,559,750
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $99,127,333) ......... 99,086,250
- --------------------------------------------------------------------------------
U.S. Government Obligations - 1.5%
U.S. Treasury Bills:
8,850,000 4.30%, 7/22/99 ....................... 8,827,079
50,000,000 4.615%, 5/25/00 ...................... 47,856,500
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $56,640,600) ...... 56,683,579
- --------------------------------------------------------------------------------
Total Investments (total cost $2,674,786,582) - 99.1% ..... 3,751,953,718
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.9% 32,437,081
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 3,784,390,799
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Argentina 0.4% $ 16,502,637
Bermuda 4.2% 156,820,725
Brazil 1.3% 47,109,441
Canada 1.0% 36,779,950
Finland 4.9% 185,632,923
France 6.5% 242,189,159
Germany 4.6% 172,491,880
Hong Kong 1.4% 51,068,310
Italy 1.8% 67,287,718
Japan 8.0% 301,178,480
Mexico 1.2% 46,618,656
Netherlands 7.9% 298,167,043
Norway 0.2% 6,231,083
South Korea 0.2% 8,860,200
Spain 4.1% 152,435,230
Sweden 2.7% 102,900,607
Switzerland 2.8% 103,417,751
United Kingdom 8.9% 334,188,355
United States++ 37.9% 1,422,073,570
- --------------------------------------------------------------------------------
Total 100.0% $ 3,751,953,718
++Includes Short-Term Securities (30.5% excluding Short-Term Securities)
Forward Currency Contracts, Open at June 30, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 10/8/99 42,700,000 $67,401,950 $1,434,720
British Pound 10/14/99 9,000,000 14,207,400 367,200
British Pound 12/9/99 56,300,000 88,942,740 1,656,360
Canadian Dollar 10/8/99 6,400,000 4,376,368 90
Canadian Dollar 11/18/99 2,300,000 1,573,833 8,576
Euro 7/15/99 10,000,000 10,330,000 1,381,000
Euro 7/28/99 7,700,000 7,946,400 1,107,260
Euro 8/12/99 42,900,000 44,221,320 6,443,580
Euro 8/27/99 63,900,000 65,791,440 9,118,530
Hong Kong Dollar 5/7/01 329,000,000 41,445,686 (145,889)
Japanese Yen 9/16/99 4,363,000,000 36,062,024 1,647,570
Japanese Yen 10/8/99 4,700,000,000 38,848,754 1,613,179
Japanese Yen 10/14/99 4,600,000,000 38,022,531 1,438,737
Japanese Yen 10/21/99 2,040,000,000 16,862,347 766,066
Japanese Yen 11/18/99 3,150,000,000 26,038,567 1,020,710
Japanese Yen 12/3/99 3,000,000,000 24,799,209 200,791
Swiss Franc 10/8/99 10,300,000 6,737,751 319,460
Swiss Franc 10/21/99 6,000,000 3,930,818 192,894
Swiss Franc 11/18/99 500,000 328,644 20,518
- --------------------------------------------------------------------------------
Total $537,867,782 $28,591,352
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 19
<PAGE>
Janus | Aspen Balanced Portfolio
[PHOTO]
Blaine Rollins
portfolio manager
For the six months ended June 30, 1999, Janus Aspen Balanced Portfolio returned
12.06% for its Institutional Shares and 11.84% for its Retirement Shares. These
gains were well ahead of the Lehman Brothers Government/Corporate Bond Index,
which returned (2.28%), but lagged slightly behind the Standard & Poor's 500
Index, which appreciated 12.38%.(1)
To sum up the past six months, the first quarter was hot, the second quarter was
not. A brisk economy and continuing concerns over the perceived excessive
valuations of many growth companies, as well as fears over steadily rising
long-term interest rates, cooled the market off in the spring. During this dip,
economically sensitive, or cyclical, stocks enjoyed a temporary bounce. Despite
this volatility, we adhered to our philosophy of owning the best growth-oriented
businesses we can find, which helped offset losses in our income positions
resulting from the increase in rates. Thanks to the skill of the Janus research
team, we continued to excel at uncovering companies with robust earnings and
leading market positions, in spite of the short-lived downturn.
One such company is financial services innovator Charles Schwab, a standout
performer that added significantly to the Portfolio's returns. Driving Schwab's
earnings growth is its online trading business, which is attracting more and
more "do-it-yourself" investors every day. This service is particularly
profitable because it does not require employees to take calls and process
orders. The success of Schwab's online trading business, combined with the
organization's focus on building out its Web offerings, has given Schwab a
substantial advantage over its competitors in an increasingly popular service
area.
The cable industry also continues to offer many compelling opportunities. Among
the Portfolio's top cable holdings were Time Warner (via Houston Industries
convertible preferred stock) and Comcast, two companies that substantially
boosted performance in the period. As they improve their business models, both
Time Warner and Comcast are positioned to benefit from the increased revenue
streams created by broadband technology, which provides telephony, high-speed
Internet access and digital cable services over a single platform.
Like Time Warner, Viacom, a company we recently added to the Portfolio, is known
for its arsenal of branded cable content. As the owner of Paramount Studios, not
to mention a number of valuable cable businesses, Viacom's vast media library
gives it tremendous growth potential, both in the U.S. and abroad, where
American popular culture has an eager audience, especially among teenagers.
Another exciting area we've invested early in is the Hispanic media market.
Hispanic Broadcasting (formerly Heftel), the largest Hispanic radio corporation
in the country, and Univision, the number one U.S. Spanish-language television
network, were both winners for us. These two companies offer outstanding
potential, considering their audiences are growing, along with advertising
revenue, at about 20% a year. Moreover, long-term demographic trends show that
the buying power of Hispanics is projected to double in the next 10 years.
On the income side, the recent uptick in long-term interest rates has led us to
focus on securities with intermediate maturities. But the recent volatility in
the bond markets has proved advantageous as well, allowing us to add a number of
quality high-yield corporate and convertible bonds, including Exodus
Communications and Liberty Media, which enhanced our overall risk/return
profile. Once again, I can thank the excellent research skills of our
fixed-income team for identifying these opportunities.
Overall, we were pleased with the Portfolio's performance. However, a few
companies failed to meet our expectations, specifically, our pharmaceutical
holdings Pfizer and Warner-Lambert. Both were sold at a profit when their share
prices reflected a slowdown in sales of some recently introduced drugs. In
general, pharmaceuticals have suffered lately from rising interest rates, as
well as concerns over a tightening regulatory environment and President
Clinton's recently announced Medicare reform proposals. On a positive note,
however, Allergan has been a strong performer for us, producing some popular
consumer niche products that are providing excellent top-line growth.
Going forward, we see the U.S. economy moderating and foreign economies
rebounding. And while consumer spending and employment are currently at all-time
highs, the Federal Reserve's move in late June increasing short-term interest
rates a quarter-point should help keep a lid on inflation.
Thank you for your investment in Janus Aspen Balanced Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 34.0% 41.1%
Top 10 Equities/Preferred 24.6% 32.1%
Number of Stocks 49 52
Fixed-Income Securities 100 45
U.S. Treasury Notes 6.2% 6.8%
Investment-Grade
Corporate Bonds 13.6% 9.5%
High-Yield Corporate Bonds 27.4% 13.6%
Foreign Corporate Bonds 1.9% --
Preferred Stock 11.4% 19.2%
Cash & Cash Equivalents 5.5% 9.8%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
20 Janus Aspen Series / June 30, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 28.13%
5 Year 21.58%
From Inception 20.03%
- --------------------------------------------------------------------------------
Lehman Brothers Govt./Corp. Bond Index
1 Year 2.70%
5 Year 7.76%
From Inception Date of Institutional Shares 5.86%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 22.76%
5 Year 27.86%
From Inception Date of Institutional Shares 23.28%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 27.52%
5 Year 20.97%
From Portfolio Inception 19.22%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 34.0%
Brewery - 0.8%
81,900 Anheuser-Busch Companies, Inc. ......... $ 5,809,781
135,415 Heineken N.V ........................... 6,933,607
12,743,388
Cable Television - 2.3%
921,140 Comcast Corp. - Class A ................ 35,406,319
Circuits - 2.2%
271,960 Linear Technology Corp. ................ 18,289,310
249,740 Maxim Integrated Products, Inc.* ....... 16,607,710
34,897,020
Commercial Banks - 0.9%
239,340 Carolina First Corp. ................... 5,833,912
131,175 Firstar Corp. .......................... 3,672,900
8,625 M&T Bank Corp. ......................... 4,743,750
14,250,562
Commercial Services - 0.5%
244,297 Paychex, Inc. .......................... 7,786,967
Computer Software - 0.1%
88,313 Wind River Systems, Inc.* .............. 1,418,528
Cruise Lines - 1.6%
249,165 Carnival Corp. ......................... 12,084,503
282,515 Royal Caribbean Cruises, Ltd. .......... 12,360,031
24,444,534
Electronic Components - Semiconductors - 0.6%
64,515 Texas Instruments, Inc. ................ 9,354,675
Finance - Credit Card - 1.0%
119,585 American Express Co. ................... $ 15,560,998
Finance - Investment Bankers/Brokers - 3.0%
431,620 Charles Schwab Corp. ................... 47,424,247
Instruments - Scientific - 0.8%
329,850 Dionex Corp.* .......................... 13,358,925
Internet Software - 0.2%
32,800 America Online, Inc.* .................. 3,624,400
Investment Management and Advisory Services - 0.4%
192,265 Affiliated Managers Group, Inc.* ....... 5,804,000
Life and Health Insurance - 1.8%
321,891 Prudential Corp. PLC** ................. 4,759,382
393,805 Reinsurance Group of America, Inc. ..... 13,881,626
61,900 Reinsurance Group of America, Inc. - Class A 2,073,650
273,565 StanCorp Financial Group, Inc.* ........ 8,206,950
28,921,608
Medical - Drugs - 0.7%
127,620 Pharmacia & Upjohn, Inc. ............... 7,250,411
66,740 Schering-Plough Corp. .................. 3,537,220
10,787,631
Money Center Banks - 2.0%
837,275 Bank of New York Co., Inc. ............. 30,717,526
Multimedia - 2.5%
886,460 Viacom, Inc. - Class B* ................ 39,004,240
Networking Products - 1.8%
447,226 Cisco Systems, Inc.* ................... 28,846,077
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 21
<PAGE>
Janus | Aspen Balanced Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Optical Supplies - 0.5%
72,000 Allergan, Inc. ......................... $ 7,992,000
Pipelines - 1.1%
213,215 Enron Corp. ............................ 17,430,326
Property and Casualty Insurance - 1.2%
212,155 Mutual Risk Management, Ltd. ........... 7,080,673
79,710 Progressive Corp. ...................... 11,557,950
18,638,623
Publishing - Periodicals - 0.3%
114,754 Wolters Kluwer N.V ..................... 4,568,024
Radio - 1.8%
161,180 Hispanic Broadcasting Corp.* ........... 12,229,532
516,410 Infinity Broadcasting Corp. - Class A* . 15,363,198
27,592,730
Retail - Computer Equipment - 0%
16,675 Insight Enterprises, Inc.* ............. 412,706
Retail - Discount - 1.0%
200,345 Costco Companies, Inc.* ................ 16,040,122
Retail - Internet - 0.8%
7,590 Amazon.com, Inc.* ...................... 949,699
78,090 eBay, Inc.* ............................ 11,791,590
12,741,289
Retail - Office Supplies - 0.8%
398,015 Staples, Inc.* ......................... 12,313,589
Retail - Restaurants - 0.3%
131,445 McDonald's Corp. ....................... 5,430,322
Super-Regional Banks - 0.6%
91,145 Northern Trust Corp. ................... 8,841,065
Telecommunication Equipment - 1.0%
166,075 Nokia Oyj (ADR) ........................ 15,206,242
Television - 1.4%
343,638 Univison Communications, Inc. - Class A* 22,680,108
- --------------------------------------------------------------------------------
Total Common Stock (cost $362,118,282) .................... 534,238,791
- --------------------------------------------------------------------------------
Corporate Bonds - 41.0%
Automotive - Truck Parts and Equipment - 0.9%
Federal-Mogul Corp.:
$ 7,500,000 7.375%, notes, due 1/15/06+ .......... 7,050,000
8,065,000 7.50%, notes, due 1/15/09+ ........... 7,450,044
14,500,044
Brewery - 1.1%
Anheuser-Busch Companies, Inc.:
5,350,000 5.65%, notes, due 9/15/08 ............ 4,995,563
14,100,000 5.75%, notes, due 4/1/10 ............. 13,042,500
18,038,063
Broadcast Services and Programming - 0.9%
14,500,000 AT&T Corp./Liberty Media Group, 7.875%
bonds, due 7/15/09+ 14,413,580
Cable Television - 9.0%
Adelphia Communications Corp.:
$ 10,145,000 9.25%, senior notes, due 10/1/02 ..... $ 10,271,813
7,055,000 10.50%, senior notes, due 7/15/04 .... 7,548,850
12,230,000 8.375%, senior notes, due 2/1/08 ..... 12,107,700
2,000,000 7.75%, senior notes, due 1/15/09 ..... 1,870,000
30,000,000 7.875%, senior notes, due 5/1/09 ..... 27,825,000
1,500,000 Century Communications Corp., 8.875%
senior notes, due 1/15/07 ............ 1,500,000
33,800,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09+ .... 32,448,000
5,140,000 Classic Cable, Inc., 9.875%
senior subordinated notes, due 8/1/08 5,358,450
10,000,000 Falcon Holding Group L.P., 8.375%
debentures, due 4/15/10 .............. 9,875,000
6,000,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 6,600,000
11,205,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 ............ 11,625,188
3,000,000 Lenfest Communications, Inc., 7.625%
senior notes, due 2/15/08 ............ 3,097,500
Mediacom L.L.C.:
6,000,000 8.50%, senior notes, due 4/15/08 ..... 5,925,000
3,750,000 7.875%, senior notes, due 2/15/11+ ... 3,506,250
2,505,000 Rifkin Acquisition Partners L.P., 11.125%
senior subordinated notes, due 1/15/06 2,821,256
142,380,007
Casino Hotels - 0.1%
1,222,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 1,264,770
Cellular Telecommunications - 0.7%
10,318,000 Orange PLC, 8.00%
senior notes, due 8/1/08 ............. 9,853,690
1,375,000 Vodafone AirTouch PLC, 6.65%
notes, due 5/1/08 .................... 1,342,344
11,196,034
Commercial Banks- 0.3%
5,500,000 First Union National Bank, 5.80%
subordinated notes, due 12/1/08 ..... 5,053,125
Computer Services - 0.1%
1,135,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ............. 1,078,250
Computer Software - 0.5%
4,353,000 Aspen Technology, Inc., 5.25%
convertible subordinated debentures
due 6/15/05 .......................... 2,622,683
6,691,000 Wind River Systems, Inc., 5.00%
convertible subordinated notes
due 8/1/02 ........................... 5,804,443
8,427,126
See Notes to Schedules of Investments.
22 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Computers - Micro - 1.0%
$ 7,900,000 Dell Computer Corp., 6.55%
senior notes, due 4/15/08 ............ $ 7,663,000
IBM Corp.:
2,000,000 6.375%, notes, due 6/15/00 ........... 2,012,500
7,500,000 5.375%, notes, due 2/1/09 ............ 6,834,375
16,509,875
Cosmetics and Toiletries - 0.7 %
2,950,000 AKI, Inc., 10.50%
senior notes, due 7/1/08 ............. 2,865,187
8,000,000 Procter and Gamble Co., 5.25%
notes, due 9/15/03 ................... 7,680,000
10,545,187
Cruise Lines - 0.3%
Royal Caribbean Cruises, Ltd.:
3,350,000 7.00%, senior notes, due 10/15/07 .... 3,257,875
739,000 6.75%, senior notes, due 3/15/08 ..... 705,745
3,963,620
Distribution and Wholesale - 0.2%
3,000,000 Aviation Sales Co., 8.125%
company guaranteed notes, due 2/15/08 2,850,000
Diversified Financial Services - 0.1%
2,000,000 Associates Corp. N.A., 6.75%
senior notes, due 7/15/01 ............ 2,020,000
Diversified Operations - 1.3%
Tyco International Group S.A.:
5,714,000 6.125%, company guaranteed notes,
due 11/1/08 .......................... 5,299,735
15,642,000 6.125%, notes, due 1/15/09 ........... 14,488,403
19,788,138
Fiber Optics - 0.2%
2,395,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 11/15/08 ........... 2,460,863
Finance - Auto Loans - 1.8%
19,327,000 Ford Motor Credit Corp., 5.80%
senior notes, due 1/12/09 ............ 17,660,046
12,327,000 General Motors Acceptance Corp., 5.85%
senior unsubordinated notes, due 1/14/09 11,263,796
28,923,842
Food - Canned - 0.3%
4,500,000 Campbell Soup Co., 4.75%
notes, due 10/1/03 ................... 4,235,625
Food - Retail - 0.6%
8,000,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08 . 8,120,000
631,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 . 642,042
8,762,042
Hotels and Motels - 0.1%
1,884,000 HMH Properties, Inc., 7.875%
company guaranteed notes, due 8/1/08 . 1,728,570
Internet Software - 3.9%
$ 2,708,000 America Online, Inc., 4.00%
convertible subordinated notes
due 11/15/02 ......................... $ 23,085,700
Exodus Communications, Inc.:
9,815,000 5.00%, convertible subordinated notes,
due 3/15/06+ ......................... 26,549,575
2,631,000 11.25%, senior notes, due 7/1/08 ..... 2,736,240
10,390,000 MindSpring Enterprises, Inc., 5.00%
convertible subordinated notes
due 4/15/06 .......................... 9,753,613
62,125,128
Leisure, Recreation and Gaming - 0.2%
3,182,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 3,014,945
Life and Health Insurance - 0.5%
7,000,000 AFLAC, Inc., 6.50%
senior notes, due 4/15/09+ ........... 6,641,250
1,000,000 SunAmerica, Inc., 6.75%
notes, due 10/1/07 ................... 997,500
7,638,750
Medical - Drugs - 0.2%
3,000,000 Warner-Lambert Co., 6.00%
notes, due 1/15/08 ................... 2,880,000
Multimedia - 3.8%
4,500,000 News America, Inc., 6.625%
senior notes, due 1/9/08 ............. 4,280,625
Paramount Communications, Inc.:
4,939,000 8.25%, debentures, due 8/1/22 ........ 4,982,216
11,616,000 7.50%, debentures, due 7/15/23 ....... 10,860,960
10,300,000 Time Warner, Inc., 8.11%
notes, due 8/15/06 ................... 10,815,000
Viacom, Inc.:
19,371,000 7.75%, senior notes, due 6/1/05 ...... 19,855,275
641,000 7.625%, company guaranteed notes
due 1/15/16 ........................ 646,609
Walt Disney Co. (The):
2,000,000 6.375%, senior notes, due 3/30/01 .... 2,012,500
6,500,000 6.75%, senior notes, due 3/30/06 ..... 6,524,375
59,977,560
Pipelines - 0.1%
Enron Corp.:
1,000,000 6.75%, senior subordinated debentures
due 7/1/05 ......................... 978,750
700,000 6.75%, notes, due 8/1/09 ............. 678,125
1,656,875
Property and Casualty Insurance - 0.6%
11,050,000 Progressive Corp., 6.625%
senior notes, due 3/1/29 ............. 10,014,063
Radio - 0.9%
10,048,000 Clear Channel Communications, Inc., 2.625%
convertible senior notes, due 4/1/03 . 12,685,600
2,000,000 Susquehanna Media Co., 8.50%
senior subordinated notes, due 5/15/09+ 1,965,000
14,650,600
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 23
<PAGE>
Janus | Aspen Balanced Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Retail - Building Products -1.3%
$ 7,375,000 Home Depot, Inc., 3.25%
convertible subordinated notes
due 10/1/01 .......................... $ 20,502,500
Retail - Catalog Shopping - 0%
377,000 R.H. Donnelly, Inc., 9.125%
senior subordinated notes, due 6/1/08 384,540
Retail - Internet - 2.1%
34,108,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09+ .......................... 33,255,300
Retail - Music Store - 0.4%
6,220,000 MTS, Inc., 9.375%
senior subordinated notes, due 5/1/05 5,574,675
Retail - Restaurants - 0.4%
3,000,000 McDonald's Corp., 6.50%
notes, due 8/1/07 .................... 2,992,500
Tricon Global Restaurants, Inc.:
459,000 7.45%, senior notes, due 5/15/05 ..... 455,558
2,184,000 7.65%, senior notes, due 5/15/08 ..... 2,181,270
5,629,328
Super-Regional Banks - 0.3%
4,500,000 Wachovia Corp., 5.625%
subordinated notes, due 12/15/08 ..... 4,106,250
Telecommunication Equipment - 0.4%
6,500,000 Lucent Technologies, Inc., 5.50%
notes, due 11/15/08 .................. 5,980,000
Telecommunication Services - 4.6%
5,158,000 Bresnan Communications Holding Co., 8.00%
senior notes, due 2/1/09+ ............ 5,093,525
2,715,000 Energis PLC, 9.75%
senior unsubordinated notes
due 6/15/09+ ......................... 2,735,362
6,845,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 7,572,281
2,500,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08 2,656,250
7,047,000 Hyperion Telecommunications, Inc., 12.00%
senior subordinated notes, due 11/1/07+ 7,135,087
21,501,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08 ............. 21,178,485
McLeodUSA, Inc.:
1,170,000 9.25%, senior notes, due 7/15/07 ..... 1,172,925
2,320,000 8.125%, senior notes, due 2/15/09+ ... 2,175,000
14,001,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08+ ........................ 22,839,131
72,558,046
Telephone - Integrated - 0.9%
Intermedia Communications, Inc.:
2,237,000 8.50%, senior notes, due 1/15/08 ..... 2,046,855
826,000 8.60%, senior notes, due 6/1/08 ...... 766,115
10,925,000 NEXTLINK Communications, Inc., 10.75%
senior notes, due 6/1/09 ............. 11,198,125
14,011,095
Telephone - Long Distance - 0.2%
$ 1,900,000 MCI Communications Corp., 6.50%
senior notes, due 4/15/10 ............ $ 1,819,250
1,570,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07 .... 1,789,800
3,609,050
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $634,668,292) ................ 645,707,466
- --------------------------------------------------------------------------------
Foreign Bonds - 1.9%
Finance - Other Services - 0.3%
EUR 4,400 Ono Finance PLC, 13.00%
units, due 5/1/09**,+ ................ 4,673,725
Telecommunication Services - 1.6%
GBP
4,563,000 COLT Telecom Group PLC, 2.00%
convertible bonds, due 3/29/06+ ...... 5,035,093
EUR
7,185,000 KPNQwest B.V., 7.125%
senior unsubordinated notes,
due 6/1/09+ .......................... 7,400,427
GBP
13,950,000 NTL, Inc., zero coupon
senior notes, due 4/15/09** .......... 13,056,197
25,491,717
- --------------------------------------------------------------------------------
Total Foreign Bonds (cost $31,289,404) .................... 30,165,442
- --------------------------------------------------------------------------------
Preferred Stock - 11.4%
Automotive - Truck Parts and Equipment - 0.8%
209,528 Federal-Mogul Financing Trust Corp.
convertible, 7.00% ................... 12,414,534
Cable Television - 0.5%
88,300 MediaOne Group, Inc., convertible, 6.25% 7,991,150
Cruise Lines - 2.5%
282,652 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ................... 38,935,313
Electric - Integrated - 6.9%
903,525 Houston Industries, Inc., convertible, 7.00% 107,745,356
Internet Software - 0.3%
104,005 PSINet, Inc. - Series C, convertible, 6 75% 5,018,241
Telephone - Integrated - 0.4%
76,062 Nextlink Communications, Inc.
convertible, 6.50% ................... 6,636,409
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $137,293,660) ................. 178,741,003
- --------------------------------------------------------------------------------
Warrants - 0%
1,135 Bell Technology Group, Ltd.
- expires 5/1/05* (cost $0) .......... 178,762
- --------------------------------------------------------------------------------
U.S. Government Obligations - 6.2%
U.S. Treasury Notes:
$ 12,300,000 6.50%, due 5/15/05 ................... 12,646,737
10,000,000 5.625%, due 2/15/06 .................. 9,822,400
525,000 7.00%, due 7/15/06 ................... 555,975
26,000,000 6.125%, due 8/15/07 .................. 26,271,180
23,500,000 5.625%, due 5/15/08 .................. 23,010,025
26,000,000 5.50%, due 5/15/09 ................... 25,439,700
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $99,411,917) ...... 97,746,017
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
24 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Repurchase Agreement - 5.7%
$ 89,900,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing 7/1/99,
to be repurchased at $89,912,736
collateralized by $121,153,672 in
Fannie Mae, 5.50%-8.50%,
1/1/04-7/1/29 with a value of
$91,708,391 (cost $89,900,000) ....... $ 89,900,000
- --------------------------------------------------------------------------------
U.S. Government Agency - 3.1%
Fannie Mae
50,000,000 4.96%, 11/15/99 (cost $49,048,611) ... 49,029,500
- --------------------------------------------------------------------------------
Total Investments (total cost $1,403,730,166) - 103.3% .... 1,625,706,981
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (3.3%) (52,523,269)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 1,573,183,712
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 1.6% $ 26,868,811
Canada 1.4% 22,839,131
Finland 0.9% 15,206,242
Netherlands 1.2% 18,902,058
United Kingdom 2.5% 40,113,449
United States++ 92.4% 1,501,777,290
- --------------------------------------------------------------------------------
Total 100.0% $ 1,625,706,981
++Includes Short-Term Securities (83.8% excluding Short-Term Securities)
Forward Currency Contracts, Open at June 30, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 10/21/99 3,700,000 $ 5,841,560 $136,232
- --------------------------------------------------------------------------------
Total $ 5,841,560 $136,232
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 25
<PAGE>
Janus | Aspen Equity Income Portfolio
[PHOTO]
Blaine Rollins
portfolio manager
I'm pleased to report that for the six months ended June 30, 1999, Janus Aspen
Equity Income Portfolio gained 20.21% for its Institutional Shares and 19.90%
for its Retirement Shares, outpacing the S&P 500 Index, which returned
12.38%.(1)
During the period, early gains by growth stocks retreated somewhat in the spring
as steadily rising long-term interest rates and the fear of higher short-term
rates took their toll. This, combined with the realization that Asia's economy
had finally bottomed, caused the market to briefly favor cyclical stocks, which
typically perform well during an economic recovery. But this movement into
cyclicals was short-lived, and growth stocks quickly rebounded.
In this volatile environment, we were guided by our philosophy of pursuing the
highest returns possible for our investors while minimizing risk, regardless of
what the market favored. As always, our focus is on investing in a mix of equity
and income-producing securities of businesses with sound fundamentals and
sustainable growth. More and more, the companies we're looking for are able to
capitalize on powerful forces in the economy, including robust consumer
spending, the increasing popularity of the Internet, and innovative changes in
the global telecommunications industry.
With statistics showing that people are spending more than they're earning,
discount warehouse Costco, one of our plays in the retailing sector, was
positioned to benefit. The company's strength lies in its volume pricing, which
allows Costco to pass along substantial savings to its customers - and to keep
membership numbers and fees growing at a rapid pace. As it proceeds to add
stores outside the U.S., we see Costco continuing to turn in solid performance.
Also significantly enhancing returns was Cisco Systems, the leading supplier of
networking equipment and architecture. Driving Cisco's growth is its foothold in
both the expansion of the Internet and the buildout of fiber-optic
telecommunications networks - two exciting developments currently helping to
power the economy. Cisco's innovation and creativity are matched only by its
outstanding management team, which gives us confidence we will be sharing in the
company's ongoing success.
The revitalization of cable is another exciting trend we see continuing in the
future, with networking and broadband telecommunications leading the way.
Capitalizing on these technological advancements, long-time holding Comcast
rewarded us with strong performance by offering new value-added services such as
digital cable, telephony, video on demand and high-speed Internet access.
Additionally, our position in media conglomerate Time Warner, via Houston
Industries convertible bonds, allowed us to participate in the upside movement
of Time Warner's stock and achieve an attractive yield as well.
Continuing on the fixed-income side, we've chosen to focus on securities with
intermediate maturities because debt instruments have been especially hard hit
by recent market volatility. The upside of this environment is that it allowed
us to enhance the overall risk/return profile of the Portfolio by leveraging the
outstanding research skills of our fixed-income team. As a result, we added some
quality high-yield corporate and convertible names, such as Exodus
Communications, a company that provides secure storage facilities for corporate
networking platforms. Exodus has proved to be a standout performer,
significantly boosting the Portfolio's returns.
While we were pleased with the performance of our winners, there were also a few
disappointments. Personnel agency Robert Half International fell on concerns
that fewer temporary employees will be needed if the U.S. economy slows later
this year, and we sold our position at a loss. We also liquidated our more
expensive pharmaceutical holdings Pfizer and Warner-Lambert, which fell victim
to rising interest rates and the possibility of increased governmental
regulation. However, we elected to add to our position in Pharmacia & Upjohn,
which, while also suffering a setback, has several promising new products in its
pipeline.
Looking ahead, all signs point to an economy that, while still strong, may be
moderating somewhat. But regardless of the backdrop, we'll continue to adhere to
our in-depth, hands-on approach to investing that has produced the superior
results our shareholders expect.
As always, we appreciate your investment in Janus Aspen Equity Income Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 50.5% 61.9%
Top 10 Equities/Preferred 32.2% 39.2%
Number of Stocks 52 47
Fixed-Income Securities
Investment-Grade
Corporate Bonds 4.5% --
High-Yield Corporate Bonds 19.9% 12.7%
Preferred Stock 19.3% 21.2%
Cash & Cash Equivalents 5.8% 4.2%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
26 Janus Aspen Series / June 30, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/97)
1 Year 43.38%
From Inception 48.93%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 22.76%
From Portfolio Inception 30.19%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 42.61%
From Inception 48.10%
- --------------------------------------------------------------------------------
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 49.8%
Brewery - 1.6%
1,645 Anheuser-Busch Companies, Inc. ......... $ 116,692
2,893 Heineken N.V ........................... 148,129
264,821
Broadcast Services and Programming - 1.0%
4,630 AT&T Corp./Liberty Media Group -
Class A* ............................. 170,152
Cable Television - 3.8%
1,035 Adelphia Communications Corp. - Class A* 65,852
12,474 Comcast Corp. - Class A ................ 479,469
1,195 TCA Cable TV, Inc. ..................... 66,322
611,643
Circuits - 3.8%
4,730 Linear Technology Corp. ................ 318,093
4,435 Maxim Integrated Products, Inc.* ....... 294,928
613,021
Commercial Banks - 1.3%
4,145 Carolina First Corp. ................... 101,034
1,725 Firstar Corp. .......................... 48,300
115 M&T Bank Corp. ......................... 63,250
212,584
Commercial Services - 0.6%
3,277 Paychex, Inc. .......................... 104,454
Computer Software - 0.1%
1,297 Wind River Systems, Inc.* .............. $ 20,833
Cruise Lines - 1.8%
4,190 Carnival Corp. ......................... 203,215
2,168 Royal Caribbean Cruises, Ltd. .......... 94,850
298,065
Data Processing and Management - 0.3%
1,305 Fiserv, Inc.* .......................... 40,863
Diversified Operations - 0.8%
1,300 Tyco International, Ltd. ............... 123,175
Electronic Components - Semiconductors - 0.9%
985 Texas Instruments, Inc. ................ 142,825
Finance - Credit Card - 1.5%
1,820 American Express Co. ................... 236,828
Finance - Investment Bankers/Brokers - 3.4%
4,942 Charles Schwab Corp. ................... 543,002
Instruments - Scientific - 1.3%
5,230 Dionex Corp.* .......................... 211,815
Investment Management and Advisory Services - 0.3%
1,850 Affiliated Managers Group, Inc.* ....... 55,847
Life and Health Insurance - 2.7%
3,291 Prudential Corp. PLC ................... 48,659
5,547 Reinsurance Group of America, Inc. ..... 195,532
625 Reinsurance Group of America, Inc. - Class A 20,938
5,580 StanCorp Financial Group, Inc.* ........ 167,400
432,529
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 27
<PAGE>
Janus | Aspen Equity Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Medical - Drugs - 1.5%
2,220 Pharmacia & Upjohn, Inc. ............... $ 126,124
2,170 Schering-Plough Corp. .................. 115,010
241,134
Money Center Banks - 3.4%
14,925 Bank of New York Co., Inc. ............. 547,561
Multimedia - 1.9%
7,020 Viacom, Inc. - Class B* ................ 308,880
Networking Products - 2.9%
7,210 Cisco Systems, Inc.* ................... 465,045
Optical Supplies - 1.0%
1,440 Allergan, Inc. ......................... 159,840
Pipelines - 1.6%
3,205 Enron Corp. ............................ 262,009
Property and Casualty Insurance - 2.2%
4,270 Mutual Risk Management, Ltd. ........... 142,511
1,470 Progressive Corp. ...................... 213,150
355,661
Radio - 3.1%
3,335 Hispanic Broadcasting Corp.* ........... 253,043
8,385 Infinity Broadcasting Corp. - Class A* . 249,454
502,497
Retail - Discount - 1.4%
2,815 Costco Companies, Inc.* ................ 225,376
Retail - Internet - 1.5%
545 Amazon.com, Inc.* ...................... 68,193
1,125 eBay, Inc.* ............................ 169,875
238,068
Retail - Restaurants - 0.3%
1,335 McDonald's Corp. ....................... 55,152
Super-Regional Banks - 0.3%
575 Northern Trust Corp. ................... 55,775
Telecommunication Equipment - 1.6%
132 Nokia Oyj .............................. 11,571
2,650 Nokia Oyj (ADR) ........................ 242,641
254,212
Television - 1.9%
4,697 Univision Communications, Inc. - Class A* 310,002
- --------------------------------------------------------------------------------
Total Common Stock (cost $5,504,139) ...................... 8,063,669
- --------------------------------------------------------------------------------
Corporate Bonds - 24.4%
Advertising Agencies - 0.1%
$ 6,000 Omnicom Group, 4.25%
convertible subordinated debentures
due 1/3/07 ........................... 14,790
Automotive - Truck Parts and Equipment - 0.6%
100,000 Federal-Mogul Corp., 7.50%
notes, due 1/15/09+ .................. 92,375
Cable Television - 3.8%
Adelphia Communications Corp.:
$ 100,000 7.75%, senior notes, due 1/15/09 ..... $ 93,500
200,000 7.875%, senior notes, due 5/1/09 ..... 185,500
300,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09+ .... 288,000
46,000 Classic Cable, Inc., 9.875%
senior subordinated notes, due 8/1/08 47,955
614,955
Cellular Telecommunications - 0.1%
20,000 Orange PLC, 9.00%
bonds, due 6/1/09+ ................... 20,000
Computer Services - 0.1%
13,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ............. 12,350
Computer Software - 1.5%
193,000 Aspen Technology, Inc., 5.25%
convertible subordinated debentures
due 6/15/05 .......................... 116,283
146,000 Wind River Systems, Inc., 5.00%
convertible subordinated notes
due 8/1/02 ........................... 126,655
242,938
Diversified Operations - 1.1%
Tyco International Group S.A.:
51,000 6.125%, company guaranteed notes
due 11/1/08 .......................... 47,303
147,000 6.125%, company guaranteed notes
due 1/15/09 .......................... 136,159
183,462
Fiber Optics - 0%
7,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 11/15/08 ........... 7,193
Internet Content - 0.8%
100,000 DoubleClick, Inc., 4.75%
convertible subordinated notes
due 3/15/06+ ......................... 123,750
Internet Software - 7.9%
43,000 America Online, Inc., 4.00%
convertible subordinated notes
due 11/15/02 ......................... 366,575
Exodus Communications, Inc.:
250,000 5.00%, convertible subordinated notes
due 3/15/06+ ......................... 676,250
29,000 11.25%, senior notes, due 7/1/08 ..... 30,160
215,000 MindSpring Enterprises, Inc., 5.00%
notes, due 4/15/06 ................... 201,831
1,274,816
Radio - 1.6%
206,000 Clear Channel Communications, Inc.,
2.625%, convertible senior notes
due 4/1/03 ........................... 260,075
See Notes to Schedules of Investments.
28 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Retail - Building Products - 1.6%
95,000 Home Depot, Inc., 3.25%
convertible subordinated notes
due 10/1/01 .......................... $ 264,100
Retail - Internet - 2.3%
257,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09+ .......................... 250,575
75,000 Beyond.com Corp., 7.25%
convertible subordinated notes
due 12/1/03+ ......................... 125,625
376,200
Satellite Telecommunications - 0.6%
120,000 Innova S. de R.L., 12.875%
senior notes, due 4/1/07 ............. 96,300
Savings/Loan/Thrifts - 0.3%
33,000 Net.B@nk, Inc., 4.75%
convertible subordinated notes
due 6/1/04 ........................... 40,755
Telecommunication Services - 0.6%
47,000 Bresnan Communications Holding Co., 8.00%
senior notes, due 2/1/09+ ............ 46,412
50,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 55,312
101,724
Telephone - Integrated - 1.4%
140,000 NTL, Inc., 7.00%
convertible subordinated notes,
due 12/15/08+ ........................ 228,375
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $3,408,810) ................... 3,954,158
- --------------------------------------------------------------------------------
Preferred Stock - 19.3%
Automotive - Truck Parts and Equipment - 1.4%
3,712 Federal-Mogul Financing Trust Corp.
convertible, 7.00% ................... 219,936
Cable Television - 4.0%
2,750 Adelphia Communications Corp.
- Series D, convertible, 5.50% ....... 529,375
1,545 MediaOne Group, Inc., convertible, 6.25% 139,822
669,197
Cruise Lines - 2.3%
2,700 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ................... 371,925
Electric - Integrated - 8.3%
11,275 Houston Industries, Inc., convertible, 7.00% 1,344,544
Internet Software - 1.7%
5,575 PSINet, Inc. - Series C, convertible, 6.75% 268,994
Telephone - Integrated - 1.6%
2,936 NEXTLINK Communications, Inc.
convertible, 6.50% ................... 256,166
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $2,749,734) ................... 3,130,762
- --------------------------------------------------------------------------------
Warrants - 0.7%
Computer Services - 0%
13 Bell Technology Group, Ltd.
- expires 5/1/05* .................... $ 2,047
Multimedia - 0.7%
5,750 Viacom, Inc. - expires 7/7/99* ......... 106,375
- --------------------------------------------------------------------------------
Total Warrants (cost $79,460) ............................. 108,422
- --------------------------------------------------------------------------------
Repurchase Agreement - 5.0%
$ 815,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing 7/1/99,
to be repurchased at $815,115
collateralized by $1,098,334 in
Fannie Mae, 5.50%-8.50%, 1/1/04-7/1/29
with a value of $831,394 (cost $815,000) 815,000
- --------------------------------------------------------------------------------
Total Investments - (total cost $12,557,143) - 99.2% ...... 16,072,011
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.8% 133,041
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 16,205,052
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 1.9% $ 306,637
Finland 1.6% 254,212
Mexico 0.6% 96,300
Netherlands 0.9% 148,129
United Kingdom 0.4% 68,659
United States++ 94.6% 15,198,074
- --------------------------------------------------------------------------------
Total 100.0% $ 16,072,011
++Includes Short-Term Securities (89.5% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 29
<PAGE>
Janus | Aspen Growth and Income Portfolio
[PHOTO]
David Corkins
portfolio manager
I am pleased to report that for the six months ended June 30, 1999, your
investment in Janus Aspen Growth and Income Portfolio appreciated 20.57% for its
Institutional Shares and 20.27% for its Retirement Shares. In comparison, the
Portfolio's benchmark index, the S&P 500, returned 12.38%.(1)
While the first three months of the year were a continuation of the
record-setting gains we saw at the end of 1998, growth stocks suffered a
short-term setback during the second quarter. In response to steadily rising
long-term interest rates, as well as the belief that Asia's economy had finally
hit bottom, the market began to favor cyclical stocks that normally perform well
during an economic recovery. The movement into cyclicals was brief, however, and
growth stocks quickly regained their dominance.
Although we always take the macroeconomic environment into consideration when
selecting investments for the Portfolio, we won't build a position in a stock
unless we've personally visited with the company's senior management and the
people running the day-to-day operations. We also avoid making large bets on
individual sectors, which explains the Portfolio's eclectic mix of stocks. And
finally, we balance our growth-oriented holdings with income-producing
investments, including dividend-paying stocks, convertible securities and
high-yield bonds.
This strategy has clearly proved successful. Contributing to the Portfolio's
success during the period were Comcast, Time Warner and Cox Communications.
These three innovative companies are on the cutting edge of broadband cable
technology, which allows users to combine telephony, digital video and
high-speed Internet access over one platform. Skeptics may view this technology
and its many applications as pie-in-the-sky dreams. As noted football
philosopher Bear Bryant, speaking to a young player, once put it, "Son,
`potential' is a French word that means...you ain't worth a damn yet." The
opportunity inherent in broadband cable, however, is more than a mere
possibility. Early test market results for many of these services show
surprisingly high penetration rates that exceed 30%. What's more, we have done
extensive research into broadband cable and are enthusiastic in our outlook for
this industry.
In the areas of computer and Internet technology, the Portfolio gained
significantly from our holdings in Cisco Systems, America Online and Microsoft.
Another standout performer we added during the period was Sun Microsystems,
which manufactures the servers that house the majority of Internet Web sites. As
the eBays and Amazons of the world grow, Sun appears well positioned to benefit.
Additionally, Texas Instruments, which has recently engineered a remarkable
turnaround, substantially boosted performance. After jettisoning its
less-profitable businesses, TI is now concentrating its efforts on producing
chip sets, called digital signal processors, used in Internet applications,
networking equipment and cellular phones, to name a few. Today, Texas
Instruments is the leader in digital signal processing, with a market share
exceeding that of its next two competitors combined.
Another intriguing story is General Electric. Since CEO Jack Welch took the helm
almost 20 years ago, GE has transformed itself from a stodgy manufacturing
corporation into a service-oriented organization that owns 14 different
businesses, each occupying the number one or number two spot in its respective
industry. However, it is GE Capital, offering a variety of financial services
including mutual fund management, financing, asset management and insurance,
that produces the company's enormous cash flow. This, combined with GE's power
generation and distribution business, has resulted in satisfying returns for the
Portfolio.
As for stocks that have been a drag on performance, pharmaceutical company
Warner-Lambert was notable. Rising interest rates, recent product
disappointments, and talk of increased government regulation put a crimp in
earnings, and we sold the position. However, we've added to our holding in
Pharmacia & Upjohn, an attractively valued firm whose pipeline contains some
promising new drugs.
In closing, while many indicators point to a healthy economy going forward, I
prefer not to make detailed economic forecasts. Instead, we will continue to
focus, as always, on finding well-managed, high-quality companies that can
perform regardless of the economic backdrop.
Thank you for investing in Janus Aspen Growth and Income Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 76.7% 83.3%
Top 10 Equities/Preferred 26.9% 31.1%
Number of Stocks 95 73
Fixed-Income Securities 1.9% 0.7%
Cash & Cash Equivalents 21.4% 16.0%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
30 Janus Aspen Series / June 30, 1999
<PAGE>
Cumulative Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/98)
One Year 36.78%
From Inception 37.14%
- --------------------------------------------------------------------------------
S&P 500 Index
One Year 22.76%
From Portfolio Inception 21.54%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/98)
One Year 36.11%
From Inception 36.45%
- --------------------------------------------------------------------------------
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Common Stock - 72.6%
Advertising Sales - 0.7%
5,000 Outdoor Systems, Inc.* ................. $ 182,500
Aerospace and Defense - 0.5%
2,000 AlliedSignal, Inc. ..................... 126,000
Automotive - Cars and Light Trucks - 0.6%
2,800 Ford Motor Co. ......................... 158,025
Beverages - Non-Alcoholic - 0.4%
4,090 Pepsi Bottling Group, Inc. ............. 94,326
Brewery - 1.2%
4,200 Anheuser-Busch Companies, Inc. ......... 297,937
Broadcast Services and Programming - 3.4%
19,500 AT&T Corp./Liberty Media Group - Class A* 716,625
2,000 Clear Channel Communications, Inc.* .... 137,875
854,500
Cable Television - 6.4%
600 Adelphia Communications Corp. - Class A* 38,175
3,100 Cablevision Systems Corp.* ............. 217,000
2,500 Century Communications Corp. - Class A* 115,000
20,400 Comcast Corp. - Class A ................ 784,125
4,800 Cox Communications, Inc. - Class A* .... 176,700
1,000 MediaOne Group, Inc.* .................. 74,375
4,000 TCA Cable TV, Inc. ..................... 222,000
1,627,375
Cellular Telecommunications - 0.6%
2,700 Sprint Corp./PCS Group* ................ 154,238
Circuits - 0.3%
1,000 Maxim Integrated Products, Inc.* ....... $ 66,500
Commercial Banks - 1.6%
10,300 Firstar Corp. .......................... 288,400
2,200 Mercantile Bancorporation, Inc. ........ 125,675
414,075
Commercial Services - 0.2%
1,900 Paychex, Inc. .......................... 60,563
Computer Data Security - 0.7%
2,000 VeriSign, Inc.* ........................ 172,500
Computer Graphics - 0%
200 NVIDIA Corp.* .......................... 3,825
Computer Software - 2.7%
7,500 Microsoft Corp.* ....................... 676,406
Computers - Integrated Systems - 0%
1,154 Tecnost S.p.A.* ........................ 2,850
Computers - Memory Devices - 0.7%
3,205 EMC Corp.* ............................. 176,275
Computers - Micro - 2.4%
1,500 Apple Computer, Inc.* .................. 69,469
8,000 Sun Microsystems, Inc.* ................ 551,000
620,469
Containers - Paper and Plastic - 0.5%
1,900 Sealed Air Corp.* ...................... 123,263
Cruise Lines - 0.3%
1,600 Royal Caribbean Cruises, Ltd. .......... 70,000
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 31
<PAGE>
Janus | Aspen Growth and Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Diversified Financial Services - 1.3%
7,200 Citigroup, Inc. ........................ $ 342,000
Diversified Operations - 5.2%
6,500 General Electric Co. ................... 734,500
6,000 Tyco International, Ltd. ............... 568,500
1,303,000
Electronic Components - Semiconductors - 2.1%
2,400 Intel Corp. ............................ 142,800
2,600 Texas Instruments, Inc. ................ 377,000
519,800
Finance - Credit Card - 1.5%
3,000 American Express Co. ................... 390,375
Finance - Investment Bankers/Brokers - 1.4%
1,450 Charles Schwab Corp. ................... 159,319
7,000 Donaldson, Lufkin & Jenrette, Inc.* .... 206,500
365,819
Finance - Mortgage Loan Banker - 0.7%
2,500 Fannie Mae ............................. 170,937
Food - Retail - 0.9%
8,200 Kroger Co.* ............................ 229,087
Internet Content - 1.1%
100 About.com, Inc.* ....................... 5,187
1,200 DoubleClick, Inc.* ..................... 110,100
1,000 InfoSpace.com, Inc.* ................... 47,000
600 Inktomi Corp.* ......................... 78,337
100 iTurf, Inc. - Class A* ................. 1,806
2,035 Launch Media, Inc.* .................... 36,376
278,806
Internet Software - 3.1%
100 Allaire Corp.* ......................... 6,825
5,300 America Online, Inc.* .................. 585,650
2,100 pcOrder.com, Inc.* ..................... 87,281
430 Persistance Software, Inc.* ............ 5,859
1,000 Portal Software, Inc.* ................. 46,313
1,000 USinternetworking, Inc.* ............... 42,000
773,928
Machinery - General Industrial - 0.9%
1,534 Mannesmann A.G ......................... 228,911
Medical - Drugs - 3.2%
2,000 Eli Lilly and Co. ...................... 143,250
2,500 Pfizer, Inc. ........................... 274,375
4,000 Pharmacia & Upjohn, Inc. ............... 227,250
3,000 Schering-Plough Corp. .................. 159,000
803,875
Medical Instruments - 1.4%
2,000 Boston Scientific Corp.* ............... 87,875
3,300 Medtronic, Inc. ........................ 256,987
344,862
Money Center Banks - 0.9%
1,400 Bank of America Corp. .................. 102,637
1,900 Republic New York Corp. ................ 129,556
232,193
Multi-Line Insurance - 2.1%
3,000 American Bankers Insurance Group, Inc. . $ 163,313
2,800 American International Group, Inc. ..... 327,775
1,100 Assicurazioni Generali ................. 38,161
529,249
Multimedia - 4.9%
11,000 Time Warner, Inc. ...................... 808,500
9,500 Viacom, Inc. - Class B* ................ 418,000
1,226,500
Networking Products - 3.0%
11,800 Cisco Systems, Inc.* ................... 761,100
Optical Supplies - 0.5%
1,200 Allergan, Inc.* ........................ 133,200
Pipelines - 2.3%
7,000 Enron Corp. ............................ 572,250
Radio - 1.1%
1,400 Entercom Communications Corp.* ......... 59,850
3,000 Hispanic Broadcasting Corp.* ........... 227,625
287,475
Real Estate Investment Trusts - 0.1%
1,200 MGI Properties, Inc. ................... 33,900
Retail - Building Products - 1.1%
4,200 Home Depot, Inc. ....................... 270,638
Retail - Discount - 1.2%
3,700 Costco Companies, Inc.* ................ 296,231
Retail - Internet - 1.7%
700 Amazon.com, Inc.* ...................... 87,587
10,000 barnesandnoble.com Inc.* ............... 180,000
1,000 eBay, Inc.* ............................ 151,000
418,587
Retail - Office Supplies - 0.4%
3,000 Staples, Inc.* ......................... 92,813
Savings/Loan/Thrifts - 0.1%
1,500 Thistle Group Holdings Co. ............. 13,219
Telecommunication Equipment - 2.3%
6,400 Nokia Oyj (ADR) ........................ 586,000
100 Tut Systems, Inc.* ..................... 4,894
590,894
Telecommunication Services - 1.1%
225 Allegiance Telecom, Inc.* .............. 12,347
5,000 McLeodUSA, Inc. - Class A* ............. 275,000
287,347
Telephone - Integrated - 0.6%
2,700 CenturyTel, Inc. ....................... 107,325
4,255 Telecom Italia S.p.A ................... 44,122
151,447
Telephone - Long Distance - 2.3%
5,800 MCI WorldCom, Inc.* .................... 500,250
1,310 Sprint Corp./FON Group ................. 69,184
569,434
Transportation - Air Freight - 0.9%
4,000 FDX Corp.* ............................. 217,000
- --------------------------------------------------------------------------------
Total Common Stock (cost $15,771,494) ..................... 18,316,504
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
32 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Corporate Bonds - 1.8%
Cable Television - 0.6%
$ 5,000 Adelphia Communications Corp., 7.75%
senior notes, due 1/15/09 ............ $ 4,675
130,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09+ .... 124,800
1,000 Mediacom L.L.C., 8.50%
senior notes, due 4/15/08 ............ 987
15,000 Rifkin Acquisition Partners L.P., 11.125%
senior subordinated notes, due 1/15/06 16,894
147,356
Distribution and Wholesale - 0%
8,000 Aviation Sales Co., 8.125%
company guaranteed notes, due 2/15/08 7,600
Food - Retail - 0%
7,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08 . 7,105
Internet Software - 0.1%
30,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ............. 31,200
Metal - Diversified - 0%
1,000 Haynes International, Inc., 11.625%
senior notes, due 9/1/04 ............. 942
Retail - Internet - 0.4%
104,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09+ .......................... 101,400
Retail - Leisure Products - 0%
5,000 Selmer Co., Inc., 11.00%
senior subordinated notes, due 5/15/05 5,319
Telecommunication Services - 0.1%
25,000 Allegiance Telecom, Inc., 12.875%
senior notes, due 5/15/08 ............ 26,687
3,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08 ............. 2,955
29,642
Telephone - Integrated - 0.6%
83,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08+ ........................ 135,394
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $469,160) ..................... 465,958
- --------------------------------------------------------------------------------
Foreign Bond - 0.1%
EUR
14,500 Tecnost International N.V., 4.487%
company guaranteed notes, due 6/23/04
(cost $15,002) ....................... 15,183
- --------------------------------------------------------------------------------
Preferred Stock - 4.1%
Automotive - Cars and Light Trucks - 0.3%
30 Porsche A.G ............................ 70,539
Automotive - Truck Parts and Equipment - 0.3%
1,100 Federal-Mogul Financing Trust Corp.
convertible, 7.00% ................... 65,175
Broadcast Services and Programming - 0.7%
500 TCI Pacific Communications, Inc.
- Series A, convertible, 5.00% ....... 170,831
Cable Television - 1.7%
1,250 Adelphia Communications Corp.
- Series D, convertible, 5.50% ....... $ 240,625
700 MediaOne Group, Inc., convertible, 4.50% 104,869
1,000 MediaOne Group, Inc., convertible, 6.25% 90,500
435,994
Cruise Lines - 0%
70 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ................... 9,642
Electric - Integrated - 1.0%
2,200 Houston Industries, Inc., convertible, 7.00% 262,350
Radio - 0.1%
165 Chancellor Media Corp., convertible, $3 00 18,088
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $868,172) ..................... 1,032,619
- --------------------------------------------------------------------------------
Repurchase Agreement - 24.3%
$ 6,130,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing 7/1/99,
to be repurchased at $6,130,868
collateralized by $8,261,090 in
Fannie Mae, 5.50%-8.50%, 1/1/04-7/1/29
with a value of $6,253,309
(cost $6,130,000) 6,130,000
- --------------------------------------------------------------------------------
Total Investments (cost $23,253,828 ) - 102.9% ............ 25,960,264
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.9%) (737,526)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $25,222,738
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.2% $ 568,500
Finland 2.3% 586,000
Germany 1.2% 299,450
Italy 0.3% 85,133
Netherlands 0.1% 15,183
United States++ 93.9% 24,405,998
- --------------------------------------------------------------------------------
Total 100.0% $ 25,960,264
++Includes Short-Term Securities (70.4% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 33
<PAGE>
Janus | Aspen Flexible Income Portfolio
[PHOTO]
Ron Speaker
portfolio manager
For the six months ended June 30, 1999, Janus Aspen Flexible Income Portfolio
returned (0.63%) for its Institutional Shares and (1.05%) for its Retirement
Shares. This compares with a (2.28%) loss posted by its benchmark, the Lehman
Brothers Government/Corporate Bond Index.(1)
While the Portfolio's performance was solid relative to its Index, its negative
results were both a reflection of rising long-term interest rates and a flood of
new supply in the fixed-income market, both of which pressured bond prices. This
environment was made even more challenging by the threat of higher inflation, as
the U.S. economy continued to grow stronger and longer than expected. In an
attempt to stave off inflation, the Federal Reserve Board increased short-term
interest rates by a quarter-point on June 30.
Against this economic backdrop, investment-grade and Treasury bonds did not meet
our expectations. We consequently reduced the Portfolio's weighting in
Treasuries, which are more sensitive to changes in interest rates. At the same
time, we increased our focus on select high-yield securities and
intermediate-term investment-grade bonds. High-yield bonds proceeded to account
for nearly 36% of the Portfolio at the close of the period, compared to a 26%
weighting on December 31, 1998. Treasuries, on the other hand, comprised about
11% of the Portfolio, down from 23% on December 31, 1998.
Despite some volatility, stocks continued to gain throughout the period. As
such, high-yield bonds, which correlate closely with stocks, were the
best-performing asset class within the fixed-income market. A standout in this
area was Globix, a company that provides off-site Web hosting for large
corporations. As the Internet becomes a more vital business tool, many companies
are realizing the importance of securing or protecting the servers where their
Web sites reside. This means housing servers in free-standing structures that
have their own power supply, security, climate control - even seismic shock
absorbers. Globix offers a cost-effective and expert outsourcing solution, and
has gained as a result. Also helping this position was a secondary equity
financing, which caused both its stock and bonds to rally.
Areas that were well-represented in the Portfolio's holdings included
consumer-oriented industries such as cable and supermarkets. TCI Communications,
Inc., Time Warner and Jones Intercable were among our top cable performers. All
of these positions benefited from value-added services made possible by
broadband technology, such as cable telephony, high-speed Internet access and
video-on-demand. However, our bonds in Jones Intercable were also helped by news
of its acquisition by Comcast, a higher-rated competitor.
Unfortunately, the Portfolio's supermarket holdings didn't fare as well,
particularly our Fred Meyer position. Fred Meyer took on investment-grade status
following its acquisition by Kroger, and was hurt by the general weakness in the
bond market. Nonetheless, we remain enthusiastic about the supermarket business,
which continues to enjoy rapid consolidation.
Other bonds that fell short of our expectations included Metricom, a wireless
Internet access company, and SIG Capital Trust, an insurance firm. Frequent
visits and conversations with Metricom's management revealed a cash-flow
shortage at the company, compelling us to sell our position. Meanwhile, SIG
Capital Trust's nonstandard auto and crop insurance business suffered from
pricing pressure and uncooperative weather. However, based on its move to a more
competitive pricing structure, we remain optimistic about SIG's future and
decided to maintain the position.
Going forward, until we see indications that the U.S. economy is slowing, we'll
carry out a relatively conservative investment approach, focusing primarily on
bonds with shorter maturities and muted interest-rate sensitivity. Even more
important, we'll stand firmly by our strategy of investing only in the companies
we believe capable of strong performance regardless of the economic environment.
Thank you for your continued investment in Janus Aspen Flexible Income
Portfolio.
Portfolio Asset Mix June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Investment-Grade
Corporate Bonds 39.4% 36.0%
High-Yield/High-Risk Bonds 35.8% 26.0%
Long-Term U.S. Government
Obligations and Agencies 11.1% 23.8%
Foreign Non-Dollar Bonds 2.0% 1.6%
Preferred Stock 1.2% 2.4%
Cash & Cash Equivalents 10.5% 10.2%
- --------------------------------------------------------------------------------
Portfolio Profile
- --------------------------------------------------------------------------------
Weighted Average Maturity 7.9 Yrs. 8.7 Yrs.
Average Modified Duration* 5.4 Yrs. 6.0 Yrs.
30-Day Average Yield
Institutional Shares** 7.45% 6.21%
Retirement Shares** 6.83% 5.70%
Average Rating BBB A+
- --------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
34 Janus Aspen Series / June 30, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 2.69%
5 Year 10.36%
From Inception 8.86%
- --------------------------------------------------------------------------------
Lehman Brothers Govt./Corp. Bond Index
1 Year 2.70%
5 Year 7.76%
From Inception Date of Institutional Shares 5.86%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 2.01%
5 Year 9.74%
From Portfolio Inception 8.23%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Past performance does not guarantee
future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Corporate Bonds - 75.2%
Automotive - Truck Parts and Equipment - 1.9%
$ 750,000 Dana Corp., 6.25%
notes, due 3/1/04 .................... $ 737,813
1,500,000 Federal-Mogul Corp., 7.50%
notes, due 1/15/09+ .................. 1,385,625
1,000,000 TRW, Inc., 7.125%
senior notes, due 6/1/09+ ............ 976,250
3,099,688
Beverages - Non-Alcoholic - 0.9%
1,500,000 Coca-Cola Enterprises, Inc., 6.95%
debentures, due 11/15/26 ............. 1,432,500
Beverages - Wine and Spirits - 0.6%
1,000,000 Seagram, Joseph E. & Sons, Inc., 6.80%
company guaranteed notes, due 12/15/08 963,750
Brewery - 0.6%
1,000,000 Anheuser-Busch Companies, Inc., 5.65%
notes, due 9/15/08 ................... 933,750
Broadcast Services and Programming - 2.7%
250,000 Digital Television Services, Inc., 12.50%
company guaranteed notes, due 8/1/07 . 279,062
4,000,000 Liberty Media Group, 7.875%
bonds, due 7/15/09+ .................. 3,976,160
4,255,222
Cable Television - 5.0%
500,000 American Telecasting, Inc., 14.50%
senior discount notes, due 6/15/04 ... 513,125
500,000 Century Communications Corp., 8.375%
senior notes, due 12/15/07 ........... 488,750
2,500,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09+ .... 2,400,000
1,000,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 ............ 1,037,500
Lenfest Communications, Inc.:
1,000,000 10.50%, senior subordinated notes,
due 6/15/06 .......................... 1,147,500
1,000,000 7.625%, senior notes, due 2/15/08 .... 1,032,500
1,500,000 TCI Communications, Inc., 6.875%
senior notes, due 2/15/06 ............ 1,494,375
8,113,750
Casino Hotels - 1.4%
$ 500,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 ... $ 500,000
300,000 Station Casinos, Inc., 8.875%
senior subordinated notes, due 12/1/08 293,250
1,500,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 1,483,125
2,276,375
Casino Services - 0.5%
750,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04 .... 828,750
Cellular Telecommunications - 0.8%
1,250,000 360(degrees) Communications Co., 6.65%
senior notes, due 1/15/08 ............ 1,232,812
Ceramic Products - 0.1%
100,000 Unifrax Investment Corp., 10.50%
senior notes, due 11/1/03 ............ 101,625
Commercial Banks - 3.1%
1,500,000 Bank One Texas, 6.25%
subordinated notes, due 2/15/08 ...... 1,432,500
1,000,000 City National Bank Corp., 6.375%
subordinated notes, due 1/15/08 ...... 947,500
1,000,000 First Union National Bank, 5.80%
subordinated notes, due 12/1/08 ...... 918,750
700,000 Hudson United Bancorp, 8.20%
subordinated debentures, due 9/15/06 . 708,750
1,000,000 Provident Trust I Corp., 8.29%
company guaranteed notes, due 4/15/28 1,005,000
5,012,500
Computer Services - 1.5%
2,500,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ............. 2,375,000
Computers - Micro - 2.0%
IBM Corp.:
2,500,000 5.375%, notes, due 2/1/09 ............ 2,278,125
1,000,000 7.00%, debentures, due 10/30/25 ...... 985,000
3,263,125
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 35
<PAGE>
Janus | Aspen Flexible Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Consulting Services - 1.5%
$ 2,500,000 Comdisco, Inc., 5.95%
notes, due 4/30/02 ................... $ 2,456,250
Cruise Lines - 0.6%
1,000,000 Royal Caribbean Cruises, Ltd., 7.00%
senior notes, due 10/15/07 ........... 972,500
Distribution and Wholesale - 0.3%
445,000 Aviation Sales Co., 8.125%
company guaranteed notes, due 2/15/08 422,750
Diversified - Financial Services - 1.1%
1,650,000 Local Financial Corp., 11.00%
senior notes, due 9/8/04 ............. 1,699,500
Electric - Generation - 0.6%
1,000,000 Caithness Coso Funding Corp., 6.80%
secured notes, due 12/15/01+ ......... 991,250
Electric - Integrated - 0.4%
600,000 El Paso Electric Co., 9.40%
first mortgage bonds, due 5/1/11 ..... 686,250
Fiber Optics - 0.8%
1,250,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 11/15/08 ........... 1,284,375
Finance - Auto Loans - 3.5%
Ford Motor Credit Co.:
1,000,000 5.375%, notes, due 10/15/02 .......... 968,750
1,000,000 6.75%, notes, due 8/15/08 ............ 985,000
1,000,000 5.80%, senior notes, due 1/12/09 ..... 913,750
3,000,000 General Motors Acceptance Corp., 5.85%
senior unsubordinated notes, due 1/14/09 2,741,250
5,608,750
Finance - Other Services - 2.9%
500,000 First American Capital Trust, 8.50%
company guaranteed notes, due 4/15/12 522,500
2,000,000 Mellon Financial Co., 6.375%
subordinated notes, due 2/15/10 ...... 1,907,500
500,000 Newcourt Credit Group, Inc., 6.875%
notes, due 2/16/05+ .................. 479,375
1,000 Ono Finance PLC, 13.00%
units, due 5/1/09+ ................... 1,005,000
500,000 SIG Capital Trust I, 9.50%
company guaranteed notes, due 8/15/27 373,750
500,000 Veritas Capital Trust, 10.00%
company guaranteed notes, due 1/1/28 . 398,750
4,686,875
Food - Diversified - 0.5%
750,000 Ralston Purina Co., 7.875%
debentures, due 6/15/25 .............. 784,687
Food - Retail - 8.8%
500,000 Carrols Corp., 9.50%
senior subordinated notes, due 12/1/08 477,500
Fred Meyer, Inc.:
2,000,000 7.15%, company guaranteed notes,
due 3/1/03 ........................... 2,012,500
4,000,000 7.45%, company guaranteed notes,
due 3/1/08 ........................... 4,060,000
2,000,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 . 2,035,000
910,000 Pantry, Inc., 10.25%
company guaranteed notes, due 10/15/07 923,650
Safeway, Inc.:
450,000 5.875%, notes, due 11/15/01 .......... 444,937
3,500,000 6.50%, notes, due 11/15/08 ........... 3,381,875
725,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04 792,969
14,128,431
Gambling - Non-Hotel Casinos - 0.2%
$ 375,000 Isle of Capri Casinos, Inc., 8.75%
senior subordinated notes, due 4/15/09+ $ 351,562
Hotels and Motels - 0.6%
1,000,000 Marriott International, Inc., 6.625%
notes, due 11/15/03 .................. 975,000
Independent Power Producer - 0.3%
500,000 Calpine Corp., 7.75%
senior notes, due 4/15/09 ............ 477,500
Internet Software - 0.5%
750,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ............. 780,000
Leisure, Recreation and Gaming - 0.3%
500,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 473,750
Life and Health Insurance - 1.5%
1,725,000 Conseco, Inc., 7.60%
senior notes, due 6/21/01 ............ 1,727,156
742,000 Delphi Financial Group, Inc., 8.00%
senior notes, due 10/1/03 ............ 753,130
2,480,286
Machinery - General Industrial - 0.6%
1,000,000 Tokheim Corp., 11.375%
senior subordinated notes, due 8/1/08+ 937,500
Manufacturing - 0.3%
500,000 Day International Group, Inc., 11.125%
senior notes, due 6/1/05 ............. 533,125
Medical - Hospitals - 0.3%
500,000 Columbia/HCA Healthcare Corp., 8.36%
debentures, due 4/15/24 .............. 466,875
Medical Labs and Testing Services - 1.5%
500,000 Quest Diagnostics, Inc., 9.875%
senior subordinated notes, due 7/1/09+ 502,500
1,775,000 Unilab Corp., 11.00%
senior notes, due 4/1/06 ............. 1,948,063
2,450,563
Multimedia - 3.1%
425,000 Dialog Corp. PLC, 11.00%
senior subordinated notes, due 11/15/07 394,187
1,750,000 News America, Inc., 6.625%
senior notes, due 1/9/08 ............. 1,664,687
Time Warner, Inc.:
1,000,000 8.18%, notes, due 8/15/07 ............ 1,066,250
1,000,000 6.95%, company guaranteed notes,
due 1/15/28 .......................... 921,250
1,000,000 Walt Disney Co. (The), 6.75%
senior notes, due 3/30/06 ............ 1,003,750
5,050,124
Music/Clubs - 0.8%
1,000,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08 . 977,500
880,000 V2 Music Holdings PLC, zero coupon
senior discount notes, due 4/15/08+ .. 305,800
1,283,300
Networking Products - 1.0%
1,500,000 Concentric Network Corp., 12.75%
senior notes, due 12/15/07 ........... 1,548,750
Office Automation and Equipment - 0.2%
500,000 Dictaphone Corp., 11.75%
senior subordinated notes, due 8/1/05 348,750
See Notes to Schedules of Investments.
36 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Oil Companies - Integrated - 0.3%
$ 500,000 Pennzoil-Quaker State Co., 6.75%
notes, due 4/1/09 .................... $ 479,375
Optical Supplies - 0.6%
950,000 Bausch & Lomb, Inc., 6.75%
notes, due 12/15/04 .................. 925,063
Paint and Related Products - 0.3%
500,000 Sherwin-Williams Co., 6.85%
notes, due 2/1/07 .................... 505,000
Paper and Related Products - 0.1%
250,000 Temple-Inland, Inc., 6.75%
notes, due 3/1/09 .................... 236,875
Physical Therapy and Rehabilitation Centers - 1.2%
HEALTHSOUTH Corp.:
1,500,000 9.50%, senior subordinated notes
due 4/1/01 ........................... 1,539,375
500,000 7.00%, senior notes, due 6/15/08 ..... 468,125
2,007,500
Property and Casualty Insurance - 0.2%
350,000 Orion Capital Corp., 7.25%
senior notes, due 7/15/05 ............ 346,938
Protection - Safety - 0.4%
750,000 Protection One Alarm Monitoring, Inc., 7.375%
company guaranteed notes, due 8/15/05 712,500
Radio - 0.3%
440,000 Chancellor Media Corp., 9.00%
company guaranteed notes, due 10/1/08 448,800
Recreational Centers - 2.0%
1,500,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07 1,451,250
1,750,000 Sports Club Company, Inc., 11.375%
company guaranteed notes, due 3/15/06 1,732,500
3,183,750
Retail - Discount - 0.5%
780,000 Ames Department Stores, Inc., 10.00%
senior notes, due 4/15/06+ ........... 762,450
Retail - Diversified - 0.1%
450,000 SpinCycle, Inc., zero coupon
senior discount notes, due 5/1/05 .... 188,437
Retail - Leisure Products - 0.1%
150,000 Selmer Co., Inc., 11.00%
senior subordinated notes, due 5/15/05 159,563
Retail - Restaurants - 1.6%
1,500,000 McDonald's Corp., 6.375%
debentures, due 1/8/28 ............... 1,383,750
500,000 Perkins Family Restaurant L.P., 10.125%
senior notes, due 12/15/07 ........... 526,250
250,000 Romacorp, Inc., 12.00%
company guaranteed notes, due 7/1/06 . 243,438
500,000 Tricon Global Restaurants, Inc., 7.65%
senior notes, due 5/15/08 ............ 499,375
2,652,813
Savings/Loan/Thrifts - 1.6%
1,650,000 Dime Bancorp, Inc., 6.375%
senior notes, due 1/30/01 ............ 1,639,688
1,000,000 Golden State Holdings, Inc., 7.00%
senior notes, due 8/1/03 ............. 975,000
2,614,688
Telecommunication Services - 5.9%
$ 500,000 Bellsouth Telecommunication, Inc., 6.375%
debentures, due 6/1/28 ............... $ 443,750
775,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09+ ............ 784,687
960,000 Energis PLC, 9.75%
senior unsubordinated notes, due 6/15/09+ 967,200
500,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 553,125
750,000 Hyperion Telecommunications, Inc., 12.00%
senior subordinated notes, due 11/1/07+ 759,375
875,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08 ............. 861,875
1,250,000 Logix Communication Enterprises, Inc., 12.25%
senior notes, due 6/15/08 ............ 1,173,438
McLeodUSA, Inc.:
600,000 9.25%, senior notes, due 7/15/07 ..... 601,500
500,000 8.125%, senior notes, due 2/15/09+ ... 468,750
720,000 NTL, Inc., zero coupon
senior notes, due 4/15/05 ............ 691,200
200,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09+ ............ 198,000
150,000 Pegasus Media and Communications, Inc.
12.50%, notes, due 7/1/05 ............ 164,625
1,000,000 RCN Corp., 10.00%
senior notes, due 10/15/07 ........... 1,007,500
250,000 RSL Communications PLC, 10.50%
company guaranteed notes, due 11/15/08 246,250
500,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08 ............ 518,750
9,440,025
Telephone - Integrated - 1.9%
500,000 Esprit Telecom Group PLC, 11.50%
senior notes, due 12/15/07 ........... 527,500
2,000,000 GTE Northwest, Inc., 5.55%
debentures, due 10/15/08 ............. 1,820,000
750,000 NEXTLINK Communications, Inc., 10.75%
senior notes, due 11/15/08 ........... 768,750
3,116,250
Telephone - Long Distance - 1.9%
1,500,000 LCI International, Inc., 7.25%
senior notes, due 6/15/07 ............ 1,466,250
500,000 MCI WorldCom, Inc., 6.40%
senior notes, due 8/15/05 ............ 488,125
1,000,000 Qwest Communications International, Inc.
7.50%, senior notes, due 11/1/08 ..... 992,500
2,946,875
Television - 0.6%
1,000,000 Fox/Liberty Networks L.L.C., 8.875%
senior notes, due 8/15/07 ............ 1,030,000
Textile Products - 0.6%
1,000,000 Collins & Aikman Floorcovering, Inc., 10.00%
senior subordinated notes, due 1/15/07 1,007,500
Transportation - Services - 0.8%
1,250,000 Railworks Corp., 11.50%
company guaranteed notes, due 4/15/09+ 1,234,375
Wire and Cable Products - 0.3%
500,000 Anixter International, Inc., 8.00%
company guaranteed notes, due 9/15/03 503,750
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 37
<PAGE>
Janus | Aspen Flexible Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Wireless Equipment - 0.6%
$ 2,000,000 CAI Wireless Systems, Inc., zero coupon
senior notes, due 10/14/04 ........... $ 987,500
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $124,277,186) ................. 121,257,577
- --------------------------------------------------------------------------------
Foreign Bonds - 2.0%
Golf - 1.0%
GBP
1,000,000 Clubhaus PLC, 12.875%
senior notes, due 6/1/09**,+ ......... 1,552,656
Telephone - Integrated - 0.3%
DEM
1,000,000 Esprit Telecom Group PLC, 11.50%
senior notes, due 12/15/07 ........... 570,782
Telephone - Long Distance - 0.7%
EUR
1,000,000 Viatel, Inc., 11.50%
senior notes, due 3/15/09**,+ ........ 1,082,836
- --------------------------------------------------------------------------------
Total Foreign Bonds (cost $3,284,005) ..................... 3,206,274
- --------------------------------------------------------------------------------
Preferred Stocks - 1.2%
Networking Products - 0.5%
908 Concentric Network Corp.
- Series B, 13.50% ................... 871,680
Savings/Loan/Thrifts - 0.7%
35,600 Chevy Chase Savings Bank, 13.00% ....... 1,068,000
- --------------------------------------------------------------------------------
Total Preferred Stocks (cost $1,868,898) .................. 1,939,680
- --------------------------------------------------------------------------------
Warrants - 0%
Music/Clubs - 0%
880 V2 Music Holdings PLC - expires 4/15/08*,+ 0
Retail - Diversified - 0%
450 SpinCycle, Inc.- expires 5/1/05* ....... 0
Telecommunication Services - 0%
225 Versatel Telecom B.V. - expires 5/15/08*,+ 11,250
- --------------------------------------------------------------------------------
Total Warrants (cost $0) .................................. 11,250
- --------------------------------------------------------------------------------
U.S. Government Obligations - 11.1%
U.S. Treasury Notes:
10,000,000 6.125%, due 8/15/07 .................. 10,104,300
8,000,000 5.625%, due 5/15/08** ................ 7,833,200
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $18,787,723) ...... 17,937,500
- --------------------------------------------------------------------------------
Repurchase Agreement - 13.4%
21,000,000 Deutsche Bank Securities, Inc., 6.05%,
dated 6/30/99, maturing 7/1/99, to be
repurchased at $21,003,529
collateralized by $169,700 in Access
Financial Mortgage Loan Trust,
7.275%, 6/18/27; $254,550 in Amresco
Residential Securities Mortgage Loan
Trust, 5.1225%, 1/25/28; $3,685,974
in Asset Securitization Corp.,
1.2339%-7.10%, 8/13/27-4/14/27;
$1,170,540 in Bear Stearns Secured
Investors Trust, 0%, 3/1/19-12/1/18;
$131,212 in Chase Mortgage Finance
Corp., 6.50%, 2/25/29; $93,335 in
Collateralized Mortgage Securities
Corp., 0%-10.08%, 7/20/22-12/27/16;
$2,074,051 in Collateralized Mortgage
Obligation Trust, 0%, 6/1/15-10/1/18;
$4,036,726 in Commercial Mortgage
Acceptance Corp., 0.9587%, 12/15/30;
Repurchase Agreement - (continued)
$1,618,003 in Countrywide Home Loans,
0.35%-14.888%, 11/1/27-12/25/27;
$1,567,010 in Deutsche Mortgage and
Asset Receiving Corp., 1.2441%,
6/15/31; $784,676 in Drexel Burnham
Lambert CMO Trust, 0%,
12/1/18-1/1/19; $53,370,119 in Fannie
Mae/Fannie Mae Strip, 0%-11.648%,
8/25/15-12/25/28; $161,215 in FFCA
Secured Lending Corp., 5.23%-6.29%,
10/18/25; $2,356,247 in Federal Home
Loan Mortgage Corp./Ginnie Mae, 0%,
4/25/23-2/25/24; $2,078,825 in First
Boston Mortgage Securities Corp.,
8.985%-10.965%, 4/25/17-5/25/17;
$2,305,205 in First Union-Lehman
Brothers-Bank of America, 0.8046%-
6.56%, 11/18/03-5/18/28; $1,997,369
in First Union-Lehman
Brothers-Commercial Mortgage Corp.,
1.5339%, 11/18/27; $4,034,465 in
Freddie Mac/ Freddie Mac Strip,
0%-12.563%, 8/15/23-6/15/28; $621,074
in GE Capital Mortgage Services,
Inc., 7.53%-9.8325%, 2/25/09-2/25/28;
$16,608,543 in GNAC Commercial
Mortgage Securities, Inc.,
0.4383%-6.411%, 11/15/07-5/15/35;
$338,789 in GNMA - Backed Trust,
0%-11.211%, 5/20/17-6/17/20; $593,950
in IMC Home Equity Loan Trust, 8.34%,
4/20/01; $424,250 in JP Morgan
Commercial Mortgage Finance Corp.,
1.5083%, 11/25/27; $42,425 in LB
Commercial Conduit Mortgage Trust,
5.87%-6.33%, 2/11/30-10/15/35;
$21,382 in Lehman Large Loan, 6.79%,
10/12/34; $11,692,720 in Merrill
Lynch Mortgage Investors, Inc.,
1.3151%-5.88%, 12/26/25-12/15/30;
$335,158 in Merrill Lynch Trust, 0%,
5/1/13; $5,089,388 in Morgan Stanley
Capital 1, 1.0595%- 6.25%,
3/15/30-7/15/32; $86,394 in Morgan
Stanley Mortgage Trust, 0%, 5/20/21;
$96,398 in Mortgage Capital Funding,
Inc., 6.325%, 6/18/30; $651,616 in
Nationlink Funding Corp., 0.9729%,
12/20/18; $339,400 in PNC Mortgage
Securities Corp., 6.49%, 10/25/26;
$585,635 in Residential Funding
Mortgage 1, 10.602%, 3/25/28;
$980,476 in RMF Commercial Mortgage
Pass-Through Certificates,
2.0731%-7.10%, 1/15/19-11/28/27;
$8,485 in Ryland Acceptance Corp.,
9.9248%, 4/20/21; $2,770 in
Structured Asset Securities Corp.,
11.628%, 11/20/21; $678,800 in Union
Acceptance Corp., 5.965%, 1/7/03;
$169,700 in WMC Mortgage Loan
Pass-Through Certificates, 5.1937%,
2/20/16; with respective values of
$172,161, $137,127, $540,231,
$764,373, $87,566, $18,978, $177,028,
$202,300, $31,679, $86,573, $116,386,
See Notes to Schedules of Investments.
38 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Repurchase Agreement - (continued)
$12,238,858, $122,942, $800,763,
$146,660, $268,265, $12,229,
$1,831,483, $554,891, $563,558,
$26,212, $80,415, $29,944, $38,430,
$20,686, $701,114, $20,761, $415,255,
$17,856, $89,103, $33,773, $111,193,
$505,567, $182,053, $5,439, $9,834,
$126,177 and $131,048 ................ $ 21,000,000
$ 510,000 Morgan Stanley & Co., Inc.
5.10%, dated 6/30/99, maturing
7/1/99, to be repurchased at $510,072
collateralized by $687,301 in Fannie
Mae, 5.50%-8.50%, 1/1/04-7/1/29 with
a value of $520,259 .................. 510,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement (cost $21,510,000) ............. 21,510,000
- --------------------------------------------------------------------------------
Total Investments (total cost $169,727,812) - 102.9% ...... 165,862,281
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.9%) (4,696,718)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 161,165,563
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Futures - Short
150 Contracts U.S. Treasury - 10 year bond, expires
September 1999, principal amount
$16,537,188 value $16,678,125,
cumulative depreciation .............. ($140,937)
- --------------------------------------------------------------------------------
Summary of Investments by Country, June 30, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 0.3% $ 479,375
Netherlands 0.3% 530,000
United Kingdom 3.4% 5,569,375
United States++ 96.0% 159,283,531
- --------------------------------------------------------------------------------
Total 100.0% $ 165,862,281
++Includes Short-Term Securities (83.1% excluding Short-Term Securities)
Forward Currency Contracts, Open at June 30, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 10/21/99 930,000 $ 1,468,284 $ 30,367
Euro 7/22/99 1,500,000 1,548,750 72,876
- --------------------------------------------------------------------------------
Total $ 3,017,034 $ 103,243
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 39
<PAGE>
Janus | Aspen High-Yield Portfolio
[PHOTO]
Sandy Rufenacht
portfolio manager
For the six months ended June 30, 1999, Janus Aspen High-Yield Portfolio
returned 4.70% for its Institutional Shares and 4.42% for its Retirement Shares.
In comparison, its benchmark, the Lehman Brothers High-Yield Bond Index, gained
2.20%.(1)
Early in the period, stronger-than-expected economic growth in the U.S., low
inflation and budding recoveries in several emerging-market economies helped
fuel the stock market. As such, high-yield bonds, which share a close
correlation with stocks, performed solidly. However, in the second quarter, a
potentially overheating economy caused investor sentiment to change. Fears
surfaced that inflation could be on the rise, and investors began to suspect the
Federal Reserve Board might increase short-term interest rates. This uncertainty
created volatility in the markets, forcing high-yield bonds to give up much of
their gains from earlier in the year. Sure enough, on June 30, suspicion became
reality when the Fed raised short-term rates a quarter-point.
Despite this less-than-favorable environment for high-yield bonds, the Portfolio
benefited from our focus on businesses with strong U.S.-based cash flows and
limited economic sensitivity. For example, cable companies continued to be solid
performers, offering a reliable stream of recurring, domestically based revenue.
Aiding their performance was the rapid consolidation taking place in this
industry and the exciting possibilities of broadband technology. Broadband will
enable cable companies to offer subscribers high-speed Internet access,
video-on-demand, and telephony over a single wire.
One of our favorite holdings in this area was Galaxy, a rural Nebraska cable
operator with dominant market share. We believe Galaxy is in a market that
offers attractive expansion possibilities for several larger cable companies,
and could therefore be the target of a future acquisition. Another position that
gained during the period was Charter Communications. Already one of the top 10
cable providers in the U.S., Charter is poised for further growth through
strategic acquisitions. In fact, it recently announced plans to take over Rifkin
Acquisition Partners, another cable position in the Portfolio. Because Charter
is a higher-rated bond, news of the buyout added significantly to the value of
our Rifkin holdings.
Another solid performer was Global Crossing, a leading provider of global
Internet and long-distance telecommunications services. These bonds were aided
by two separate acquisition announcements during the period. The first involved
Global Crossing's intention to buy Frontier Corporation, which is a larger
telecom firm and a higher-rated bond. Soon after, Global Crossing announced
plans to acquire regional Bell operating company US WEST, also a takeover target
of Qwest Communications. While it's unclear at the time of this writing who will
win the bidding war for US WEST, the mere prospect of merging with this mature,
stable and well-capitalized company contributed to Global Crossing's gains.
The Portfolio also benefited from the performance of our casino positions. Among
the many reasons we're attracted to these companies is that they deploy free
cash flow to pay down debt and build their businesses. A leader in this area was
Venetian Casinos. This unique property is the first casino in Las Vegas to cater
to the business traveler, with larger hotel rooms and better amenities than its
competitors. The Venetian also enjoys an ideal location, physically connected to
the Sands Expo Center, a convention facility that draws large weekday crowds.
Isle of Capri Blackhawk in Colorado was another casino holding that worked well
for us. These bonds continued to benefit from a growing local gaming market.
Despite the Portfolio's solid overall performance, there were some
disappointments. Most notable was Foamex, the leading supplier of foam products
for automotive uses. These bonds declined on difficulties related to recent
acquisitions. Nonetheless, it appears that Foamex is in the midst of a
turnaround, and we maintained our position. Another holding that failed to meet
our expectations was e.Spire, a provider of local phone services. e.Spire
recently rebuilt its management team with individuals we believe are capable of
taking its business to a new level. Because we see promise in this company, we
opted to remain invested.
Going forward, the combination of inflation fears in the U.S. and lingering
recession risks in developed markets abroad could create crosscurrents or
volatility in the financial markets. As such, we will maintain our focus on
companies with limited sensitivity to interest rate fluctuations and
international risks.
In closing, I'd like to thank you for your continued investment in Janus Aspen
High-Yield Fund.
Portfolio Profile June 30, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Weighted Average Maturity 7.1 Yrs. 5.1 Yrs.
Average Modified Duration* 5.1 Yrs. 3.7 Yrs.
30-Day Average Yield
Institutional Shares** 9.33% 8.31%
Without Reimbursement** 6.08% N/A
Retirement Shares** 8.72% 7.89%
Without Reimbursement** 5.50% N/A
Average Rating B B
- --------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
40 Janus Aspen Series / June 30, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/96)
1 Year (0.68%)
From Inception 10.77%
- --------------------------------------------------------------------------------
Lehman Brothers High-Yield Bond Index
1 Year (0.38%)
From Inception Date of Institutional Shares 8.15%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year (1.20%)
From Portfolio Inception 6.59%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or dividends and interest payments or operating expenses
necessary to maintain a portfolio consisting of the same securities that
are in the Index. These returns do not reflect the charges and expenses of
any particular insurance product or qualified plan. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. The adviser voluntarily waives a
portion of the Portfolio's expenses. Without such waiver, the Portfolio's
total returns for each class would have been lower. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Corporate Bonds - 96.7%
Agricultural Operations - 0.9%
$ 23,000 Hines Horticulture, Inc., 11.75%
senior subordinated notes, due 10/15/05 $ 24,495
Broadcast Services and Programs - 1.1%
25,000 Digital Television Services L.L.C., 12.50%
company guaranteed notes, due 8/1/07 . 27,906
Building - Residential and Commercial - 3.0%
25,000 D.R. Horton, Inc., 8.00%
company guaranteed notes, due 2/1/09 . 23,563
15,000 Del Webb Corp., 10.25%
senior subordinated notes, due 2/15/10 15,075
10,000 MDC Holdings, Inc., 8.375%
senior notes, due 2/1/08 ............. 9,700
30,000 Standard Pacific Corp., 8.50%
senior notes, due 4/1/09 ............. 29,550
77,888
Cable Television - 16.5%
Adelphia Communications Corp.:
$ 35,000 9.875%, senior notes, due 3/1/07 ..... $ 37,012
45,000 7.875%, senior notes, due 5/1/09 ..... 41,737
75,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09+ .... 72,000
75,000 Classic Cable, Inc., 9.875%
senior subordinated notes, due 8/1/08 78,187
30,000 Falcon Holding Group L.P., 8.375%
debentures, due 4/15/10 .............. 29,625
50,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 55,000
25,000 Fundy Cable, Ltd., 11.00%
senior notes, due 11/15/05 ........... 27,250
30,000 Rifkin Acquisition Partners L.P., 11.125%
senior subordinated notes, due 1/15/06 33,787
TeleWest Communications PLC:
30,000 zero coupon, debentures, due 10/1/07 . 26,737
30,000 zero coupon, senior discount notes
due 4/15/09+ ......................... 19,987
421,322
See Notes to Schedules of Investments
Janus Aspen Series / June 30, 1999 41
<PAGE>
Janus | Aspen High-Yield Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Amount
- --------------------------------------------------------------------------------
Casino Hotels - 3.9%
$ 9,000 Majestic Star Casino L.L.C., 10.875%
secured notes, due 7/1/06+ ........... $ 8,933
30,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 ... 30,000
10,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 10,350
50,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 49,438
98,721
Casino Services - 2.2%
50,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04 .... 55,250
Cellular Telecommunications - 1.1%
29,000 Orange PLC, 8.00%
senior notes, due 8/1/08 ............. 27,695
Computer Services - 3.5%
50,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ............. 47,500
45,000 Splitrock Services, Inc., 11.75%
company guaranteed notes, due 7/15/08 42,300
89,800
Containers - Paper and Plastic - 3.4%
55,000 Packaged Ice, Inc., 9.75%
company guaranteed notes, due 2/1/05 . 54,931
21,000 Plastic Containers, Inc., 10.00%
senior notes, due 12/15/06 ........... 23,678
20,000 SF Holdings Group, Inc., zero coupon
senior notes, due 3/15/08 ............ 6,975
85,584
Distribution and Wholesale - 2.4%
20,000 Core-Mark International, Inc., 11.375%
senior subordinated notes, due 9/15/03 19,550
40,000 Herff Jones, Inc., 11.00%
senior subordinated notes, due 8/15/05 42,900
62,450
Diversified Financial Services - 1.2%
30,000 Local Financial Corp., 11.00%
senior notes, due 9/8/04 ............. 30,900
Electric - Integrated - 1.0%
25,000 Niagara Mohawk Power Corp., 7.75%
senior notes, due 10/1/08 ............ 25,719
Electronics - Military - 1.1%
30,000 Condor Systems, Inc., 11.875%
company guaranteed notes, due 5/1/09+ 28,950
Fiber Optics - 0.4%
10,000 NorthEast Optic Network, Inc., 12.75%
senior notes, due 8/15/08 ............ 10,325
Food - Retail - 2.5%
15,000 Carrols Corp., 9.50%
senior subordinated notes, due 12/1/08 14,325
45,000 Star Markets Co., Inc., 13.00%
senior subordinated notes, due 11/1/04 49,219
63,544
Gambling - Non-Hotel Casinos - 3.4%
$ 60,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01 ..... $ 60,750
25,000 Louisiana Casino Cruises, Inc., 11.00%
secured notes, due 12/1/05+ .......... 25,125
85,875
Home Decoration Products - 2.3%
60,000 Frank's Nursery & Crafts, Inc., 10.25%
senior subordinated notes, due 3/1/08 59,775
Internet Software - 4.6%
40,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ............. 41,600
15,000 PSINet, Inc., 10.00%
senior notes, due 2/15/08 ............ 15,000
20,000 Rhythms NetConnections, Inc., 12.75%
senior notes, due 4/15/09+ ........... 18,800
40,000 Verio, Inc., 11.25%
senior notes, due 12/1/08 ............ 41,900
117,300
Leisure, Recreation and Gaming - 1.5%
40,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 37,900
Machinery - General Industrial - 1.6%
40,000 Fairfield Manufacturing Co., Inc., 11.375%
senior subordinated notes, due 7/1/01 40,850
Manufacturing - 2.9%
80,000 Foamex L.P., 13.50%
company guaranteed notes, due 8/15/05 74,200
Medical Products - 0.4%
12,000 Universal Hospital Service, Inc., 10.25%
senior notes, due 3/1/08 ............. 10,650
Music/Clubs - 1.5%
25,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08 . 24,438
40,000 V2 Music Holdings PLC, zero coupon
senior discount notes, due 4/15/08+ .. 13,900
38,338
Networking Products - 1.8%
45,000 Concentric Network Corp., 12.75%
senior notes, due 12/15/07 ........... 46,463
Publishing - Periodicals - 1.3%
35,000 Transwestern Publishing Co./TWP
Capital Corp. II, 9.625%
company guaranteed notes, due 11/15/07 34,300
Radio - 1.7%
39,000 SFX Broadcasting, Inc., 10.75%
senior subordinated notes, due 5/15/06 42,949
Real Estate Investment and Management - 1.6%
40,000 LNR Property Corp., 10.50%
senior subordinated notes, due 1/15/09 39,900
Reinsurance - 0.4%
10,000 Veritas Holdings GmbH, 9.625%
senior notes, due 12/15/03 ........... 9,900
Retail - Discount - 1.0%
25,000 Pamida,Inc., 11.75%
senior subordinated notes, due 3/15/03 25,906
See Notes to Schedules of Investments.
42 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Satellite Telecommunications - 0.5%
$ 15,000 ICG Holdings, Inc., zero coupon
company guaranteed notes, due 5/1/06 . $ 11,981
Special Purpose Acquisition Company - 0.6%
15,000 P&L Coal Holdings Corp., 9.625%
company guaranteed notes, due 5/15/08 15,113
Steel Pipe and Tube - 0.2%
30,000 Steel Heddle Group, Inc., zero coupon
debentures, due 6/1/09 ............... 4,725
Telecommunication Equipment - 0.6%
15,000 Covad Communications Group, Inc., 12.50%
senior notes, due 2/15/09 ............ 14,438
Telecommunication Services - 19.0%
30,000 Alaska Communications Systems Holdings,
Inc., 9.375%, senior subordinated notes
due 5/15/09+ ......................... 29,325
Allegiance Telecom, Inc.:
10,000 zero coupon, senior discount notes
due 2/15/08 .......................... 6,100
5,000 12.875%, senior notes, due 5/15/08 ... 5,337
35,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09+ ............ 35,438
25,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 27,656
50,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08 53,125
20,000 ITC DeltaCom, Inc., 11.00%
senior notes, due 6/1/07 ............. 21,400
75,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08 ............. 73,875
60,000 McLeodUSA, Inc., 9.25%
senior notes, due 7/15/07 ............ 60,150
NTL, Inc.:
60,000 zero coupon, senior notes, due 4/15/05 57,600
30,000 10.00%, senior notes, due 2/15/07 .... 31,050
25,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09+ ............ 24,750
25,000 RSL Communications PLC, 10.50%
company guaranteed notes, due 11/15/08 24,625
47,000 Telegroup, Inc., zero coupon
senior discount notes, due 11/1/04+ .. 19,799
15,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08 ............ 15,562
485,792
Telephone - Local - 1.2%
50,000 e.Spire Communications, Inc., zero coupon
senior discount notes, due 4/1/06 .... 31,375
Television - 1.4%
15,000 Central European Media Enterprises, Ltd.
9.375%, senior notes, due 8/15/04 .... 12,863
20,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 22,200
35,063
Textile - Products - 0.7%
20,000 Glenoit Corp., 11.00%
company guaranteed notes, due 4/15/07 17,550
Transportation - Services - 1.2%
$ 30,000 Atlantic Express Transportation Corp., 10.75%
company guaranteed notes, due 2/1/04 . $ 29,925
Wire and Cable Products - 0.8%
20,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05 20,800
Wireless Equipment - 0.3%
15,000 McCaw International, Ltd., zero coupon
senior discount notes, due 4/15/07 ... 9,056
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $2,585,755) ................... 2,470,673
- --------------------------------------------------------------------------------
Foreign Bond - 1.8%
GBP
50,000 NTL, Inc., zero coupon
senior notes, due 4/15/09 (cost $50,545) 46,796
- --------------------------------------------------------------------------------
Warrants - 0.2%
Computer Services - 0.2%
38 Bell Technology Group, Ltd. - expires 5/1/05* 5,985
Music/Clubs - 0%
40 V2 Music Holdings PLC - expires 4/15/08*,+ 0
Telecommunication Services - 0%
10 Splitrock Services, Inc. - expires 7/15/08* 700
- --------------------------------------------------------------------------------
Total Warrants (cost $500) ................................ 6,685
- --------------------------------------------------------------------------------
U.S. Government Obligations - 0.8%
U.S.Treasury Notes:
$ 10,000 4.75%, due 11/15/08 .................. 9,174
10,000 5.50%, due 5/15/09 ................... 9,785
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $19,437) .......... 18,959
- --------------------------------------------------------------------------------
Total Investments (cost $2,656,237) - 99.5% ............... 2,543,113
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.5% 11,239
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $ 2,554,352
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 43
<PAGE>
Janus | Aspen Money Market Portfolio
[PHOTO]
Sharon Pichler
portfolio manager
For the six months ended June 30, 1999, Janus Aspen Money Market Portfolio
returned 2.25% for its Institutional Shares and 2.01% for its Retirement
Shares.(1) The seven-day current yield for this same period was 4.68% and 4.14%
for the Institutional and Retirement Shares, respectively.
As 1999 began, the crisis mentality that prevailed late in 1998 had largely
dissipated. However, financial turmoil in several emerging market economies
lingered, as did expectations of an economic slowdown in the U.S. and additional
cuts in short-term interest rates. Contrary to these expectations, the economy
continued to grow rapidly, prompting the Federal Reserve Board to eventually
raise short-term rates 0.25% on June 30 in a preemptive move to mitigate
potential inflationary effects.
The Portfolio's flexible investment strategy enabled us to respond to this
changing environment by adjusting the average weighted maturity of our holdings.
The majority of our investments at the beginning of the period were in
securities at the shortest end of our maturity range, which are influenced more
by changes in the federal funds rate than by broader market forces. However, our
feeling toward the end of the period was that inflationary expectations had
already forced longer-term rates as high as they needed to be to anticipate
future rate increases. Therefore, we believed longer-dated securities were the
better value and extended the average maturity of the Portfolio.
As we approach the new millennium, liquidity will remain key to our investment
strategy. We are confident that financial systems around the world are prepared
for January 1, 2000, and that disruptions will be minimal. At the same time, by
investing in more liquid securities, the Portfolio should be able to take
advantage of any potential interest-rate opportunities sparked by Y2K concerns.
Because the strength in the financial markets is a concern of the Federal
Reserve Board, we believe there is a strong possibility it may raise rates
further in the second half of the year. However, as I mentioned earlier, the
Portfolio is positioned to react to changes in the economic environment and,
therefore, we believe it will perform solidly going forward.
Thank you for your continued investment in Janus Aspen Money Market Portfolio.
Average Annual Total Return(1)
For the Periods Ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/95)
1 Year 4.97%
From Inception 5.16%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 4.47%
From Portfolio Inception 4.32%
- --------------------------------------------------------------------------------
Returns shown for Retirement Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Retirement Shares.
An investment in the Portfolio(s) is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Portfolio(s) seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money by investing in the Portfolios.
(1) All returns reflect reinvested dividends.
Past performance does not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 7.5%
$ 2,000,000 Banque Nationale de Paris
4.97%, 10/8/99 ....................... $ 1,969,904
2,000,000 BT Alex Brown, Inc.
5.00%, 12/17/99 ...................... 1,953,056
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (amortized cost $3,922,960) 3,922,960
- --------------------------------------------------------------------------------
Taxable Variable Rate Demand Notes - 31.9%
1,975,000 Arapahoe County, Colorado Industrial
Development Revenue, (Cottrell)
Series B, 5.17%, 10/1/19 ............. 1,975,000
3,000,000 Asset Partners, Inc.
5.19%, 11/1/27 ....................... 3,000,000
$ 4,000,000 Breckenridge Terrace L.L.C.
5.1425%, 5/1/39 ...................... $ 4,000,000
750,000 Chicago, Illinois Industrial Development
Revenue, (BTI, Inc. Project)
Series B, 5.29%, 9/1/27 .............. 750,000
1,600,000 Dallas, Texas 1997, (Telesis/Autumn
Leaves I, Ltd.), 5.14%, 11/1/04 ...... 1,600,000
2,140,000 Kentucky Economic Development
Financing Authority, Hospital Facilities
Revenue, (Highlands Regional Project)
Series B, 5.19%, 8/1/03 .............. 2,140,000
1,605,000 Michigan State Strategic Fund Limited
Obligation Revenue, (Wade Trim Group),
5.15%, 12/1/16 ....................... 1,605,000
44 Janus Aspen Series / June 30, 1999
<PAGE>
Shares or Principal Amount Market Value
- --------------------------------------------------------------------------------
Taxable Variable Rate Demand Notes - (continued)
$ 1,675,000 Phoenix, Illinois Realty Special Account
Multifamily Revenue, (Brightons Mark)
5.50%, 4/1/20 ........................ $ 1,675,000
- --------------------------------------------------------------------------------
Total Taxable Variable Rate Demand Notes (cost $16,745,000) 16,745,000
- --------------------------------------------------------------------------------
Floating Rate Notes - 37.2%
2,000,000 American Express Centurion
4.95%, 4/27/00 ....................... 2,000,000
2,000,000 Bankers Trust Company
4.95%, 5/15/00 ....................... 1,999,306
2,000,000 Bear Stearns Companies, Inc.
5.16%, 3/24/00 ....................... 2,000,976
2,000,000 CIT Group, Inc.
4.93%, 11/2/99 ....................... 1,999,867
2,000,000 Citicorp
5.2475%, 11/23/99 .................... 2,001,560
2,000,000 Comerica Bank of Detroit
4.91%, 6/12/00 ....................... 1,999,071
2,000,000 General Motors Acceptance Mortgage Corp.
5.01%, 3/14/00 ....................... 2,000,138
1,500,000 Goldman Sachs Group L.P.
5.0675%, 1/26/00+ .................... 1,500,123
2,000,000 Norwest Financial, Inc.
4.925%, 7/7/00 ....................... 1,999,101
2,000,000 SouthTrust Bank N.A.
4.89%, 5/17/00 ....................... 1,998,968
- --------------------------------------------------------------------------------
Total Floating Rate Notes (cost $19,499,110) .............. 19,499,110
- --------------------------------------------------------------------------------
Certificates of Deposit - 11.4%
2,000,000 Commerzbank A.G., New York
5.09%, 4/12/00 ....................... 1,998,110
2,000,000 National Bank of Canada, New York
5.61%, 6/12/00 ....................... 1,999,271
1,000,000 Royal Bank of Canada, New York
5.12%, 3/21/00 ....................... 999,568
1,000,000 Svenska Handelsbanken, New York
5.22%, 5/10/00 ....................... 999,586
- --------------------------------------------------------------------------------
Total Certificates of Deposit (amortized cost $5,996,535) . 5,996,535
- --------------------------------------------------------------------------------
Put Bond - 5.3%
2,765,000 Aurora, Colorado Centertech Metropolitan District,
Series B, 5.65%, 12/1/99 (cost $2,765,000) 2,765,000
- --------------------------------------------------------------------------------
Bank Note - 3.8%
2,000,000 Morgan Guaranty Trust Co.
5.75%, 10/8/99 (cost $2,005,022) ..... 2,005,022
- --------------------------------------------------------------------------------
Repurchase Agreement - 3.1%
1,615,000 Deutsche Bank Securities, Inc., 6.05%,
dated 6/30/99, maturing 7/1/99, to be
repurchased at $169,628,502
collateral- ized by $13,100 in Access
Financial Mortgage Loan Trust,
7.275%, 6/18/27; $19,650 in Amresco
Residential Securities Mortgage Loan
Trust, 5.1225%, 1/25/28; $284,539 in
Asset Securitization Corp.,
1.2339%-7.10%, 8/13/27-8/14/27;
$90,360 in Bear Stearns Secured
Investors Trust, 0%, 12/1/18-3/1/19;
$10,129 in Chase Mortgage Finance
Corp., 6.50%, 2/25/29; $7,205 in
Collateralized Mortgage Securities
Corp., 0%-10.08%, 12/27/16-7/20/22;
$160,107 in Collateral- ized Mortgage
Obligation Trust,0%, 6/1/15-10/1/18;
$311,615 in Commercial Mortgage
Acceptance Corp.,0.9587%, 12/15/30;
$124,902 in Countrywide Home Loans,
0.35%-14.888%, 11/1/27-
Repurchase Agreement - (continued)
12/25/27; $120,965 in Deutsche
Mortgage and Asset Receiving
Corp.,1.2441%, 6/15/31; $60,573 in
Drexel Burnham Lambert CMO Trust, 0%,
12/1/18-1/1/19; $4,119,909 in Fannie
Mae/Fannie Mae Strip, 0%-11.648%,
8/25/15-12/25/28; $12,455 in FFCA
Secured Lending Corp., 5.23%-6.29%,
10/18/25; $181,891 in Federal Home
Loan Mortgage Corp./ Ginnie Mae, 0%,
4/25/23-2/25/24; $160,475 in First
Boston Mortgage Securities Corp.,
8.985%-10.965%, 4/25/17- 5/25/17;
$177,950 in First Union-Lehman
Brothers-Bank of America, 0.8046%-
6.56%, 11/18/03-5/18/28; $154,187 in
First Union-Lehman Brothers
Commercial Mortgage, Inc., 1.5339%,
11/18/27; $311,441 in Freddie
Mac/Freddie Mac Strip, 0%-12.563%,
8/15/23-6/15/28; $47,944 in GE
Capital Mortgage Services, Inc.,
7.53%-9.8325%, 2/25/09-2/25/28;
$1,282,097 in GNAC Commercial
Mortgage Securities, Inc.,
0.4383%-6.411%, 11/15/07-5/15/35;
$26,153 in GNMA Backed Trust,
0%-11.211%, 5/20/17- 6/17/20; $45,850
in IMC Home Equity Loan Trust, 8.34%,
4/20/01; $32,750 in JP Morgan
Commercial Mortgage Finance Corp.,
1.5083%, 11/25/27; $3,275 in LB
Commercial Conduit Mortgage Trust,
5.87%-6.33%, 2/11/30-10/15/35; $1,651
in Lehman Large Loan, 6.79%,
10/12/34; $902,620 in Merrill Lynch
Mortgage Investors, Inc.,
1.3151%-5.88%, 12/26/25-12/15/30;
$25,873 in Merrill Lynch Trust, 0%,
5/1/13; $392,876 in Morgan Stanley
Capital 1, 1.0595%- 6.25%,
3/15/30-7/15/32; $6,669 in Morgan
Stanley Mortgage Trust, 0%, 5/20/21;
$7,441 in Mortgage Capital Funding,
Inc., 6.325%, 6/18/30; $50,302 in
Nationlink Funding Corp., 0.9729%,
12/20/18; $26,200 in PNC Mortgage
Securities Corp., 6.49%, 10/25/26;
$45,208 in Residential Funding
Mortgage 1, 10.602%, 3/25/28; $75,688
in RMF Commercial Mortgage
Pass-Through Certificates,
2.0731%-7.10%, 1/15/19- 11/28/27;
$655 in Ryland Acceptance Corp.,
9.9248%, 4/20/21; $214 in Structured
Asset Securities Corp., 11.628%,
11/20/21; $52,400 in Union Acceptance
Corp., 5.965%, 1/7/03; $13,100 in WMC
Mortgage Loan Pass-Through
Certificates, 5.1937%, 2/20/16; with
respective values of $13,290,
$10,586, $41,703, $59,006, $6,760,
$1,465, $13,666, $15,617, $2,445,
$6,683, $8,984, $944,779, $9,491,
$61,815, $11,321, $20,709, $944,
$141,381, $42,835, $43,504, $2,023,
$6,208, $2,311, $2,967, $1,597,
$54,123, $1,603, $32,056, $1,378,
$6,878, $2,607, $8,584, $39,027,
$14,054, $420, $759, $9,740 and
$10,116 (cost $1,615,000) ............ $ 1,615,000
- --------------------------------------------------------------------------------
Total Investments (total cost $52,548,627) - 100.2% ....... 52,548,627
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.2%) (130,103)
- --------------------------------------------------------------------------------
Net Assets - 100% ......................................... $52,418,524
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 1999 45
<PAGE>
Statements of | Operations
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
Janus Aspen Aggressive Capital
For the six months ended June 30, 1999 (unaudited) Growth Growth Appreciation
(all numbers in thousands) Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C>
Interest $ 4,333 $ 591 $ 889
Dividends 2,221 484 186
Foreign tax withheld (44) -- (5)
- --------------------------------------------------------------------------------------------------------------
Total Investment Income 6,510 1,075 1,070
- --------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 4,502 3,532 505
Transfer agent fees and expenses -- -- --
Registration fees 62 57 29
System fees 9 9 5
Custodian fees 61 54 12
Insurance expense 2 3 --
Audit fees 5 19 7
Distribution fees - Retirement Shares 1 2 1
Administrative fees - Retirement Shares 1 2 1
Other expenses 3 4 2
- --------------------------------------------------------------------------------------------------------------
Total Expenses 4,646 3,682 562
Expense and Fee Offsets (8) (11) (1)
Net Expenses 4,638 3,671 561
Excess Expense Reimbursement -- -- --
Net Expenses After Reimbursement 4,638 3,671 561
Net Investment Income/(Loss) 1,872 (2,596) 509
- --------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 85,486 130,438 11,768
Net realized gain/(loss) from foreign currency transactions (10) 354 --
Net realized gain/(loss) from futures contracts -- -- --
Change in net unrealized appreciation/(depreciation) of investments 126,109 134,378 13,587
- --------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments 211,585 265,170 25,355
Net Increase in Net Assets Resulting from Operations $ 213,457 $ 262,574 $ 25,864
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
46 Janus Aspen Series / June 30, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen
International Worldwide Janus Aspen Equity Growth and Flexible Janus Aspen Janus Aspen
Growth Growth Balanced Income Income Income High-Yield Money Market
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 577 $ 3,720 $ 16,338 $ 35 $ 70 $ 5,200 $ 127 $ 1,175
2,057 16,831 3,749 51 29 66 1 --
(262) (2,002) (9) -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------
2,372 18,549 20,078 86 99 5,266 128 1,175
- --------------------------------------------------------------------------------------------------------------
1,135 10,645 4,073 44 42 473 11 58
-- -- 1 1 -- 1 -- 1
84 149 61 36 22 47 35 45
8 9 10 1 4 6 6 9
168 884 48 13 22 16 15 4
-- 3 2 -- -- -- -- --
6 24 10 3 1 9 7 11
1 25 26 -- 1 -- -- --
1 25 26 -- 1 -- -- --
6 41 3 2 1 1 3 --
- --------------------------------------------------------------------------------------------------------------
1,409 11,805 4,260 100 94 553 77 128
(2) (5) (13) -- -- (3) -- --
1,407 11,800 4,247 100 94 550 77 128
-- -- -- (24) (12) -- (62) (16)
1,407 11,800 4,247 76 82 550 15 112
965 6,749 15,831 10 17 4,716 113 1,063
- --------------------------------------------------------------------------------------------------------------
(743) 45,175 87,314 1,023 437 (52) 55 4
1,048 8,435 -- -- -- 14 -- --
522 4,984 -- -- -- 507 -- --
32,723 332,348 27,493 1,138 1,702 (6,285) (37) --
- --------------------------------------------------------------------------------------------------------------
33,550 390,942 114,807 2,161 2,139 (5,816) 18 4
$ 34,515 $ 397,691 $ 130,638 $ 2,171 $ 2,156 $ (1,100) $ 131 $ 1,067
- --------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen Series / June 30, 1999 47
<PAGE>
Statements of | Assets & Liabilities
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
Janus Aspen Aggressive Capital
As of June 30, 1999 (unaudited) (all numbers in thousands Growth Growth Appreciation
except Retirement Shares outstanding and net asset value per share) Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C>
Investments at cost $1,329,381 $ 990,324 $ 221,649
Investments at value: $1,776,820 $1,372,297 $ 255,409
Cash 223 111 10
Receivables:
Investments sold 9,904 20,559 --
Portfolio shares sold 4,699 2,865 2,795
Dividends 279 114 13
Interest 9 4 6
Other assets 6 5 --
Forward currency contracts -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total Assets 1,791,940 1,395,955 258,233
- ----------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 13,066 46,211 --
Portfolio shares repurchased 111 1,638 --
Advisory fees 879 707 122
Accrued expenses 46 44 10
Variation margin -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total Liabilities 14,102 48,600 132
Net Assets $1,777,838 $1,347,355 $ 258,101
- ----------------------------------------------------------------------------------------------------------------
Net Assets - Institutional Shares $1,775,338 $1,343,917 $ 255,616
Shares Outstanding, $0.001 Par Value (unlimited shares authorized) 65,059 38,827 10,221
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 27.29 $ 34.61 $ 25.01
- ----------------------------------------------------------------------------------------------------------------
Net Assets - Retirement Shares $ 2,500 $ 3,438 $ 2,485
Shares Outstanding, $0.001 Par Value (unlimited shares authorized) 91,539 100,396 99,802
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 27.31 $ 34.24 $ 24.90
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
48 Janus Aspen Series / June 30, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen
International Worldwide Janus Aspen Equity Growth and Flexible Janus Aspen Janus Aspen
Growth Growth Balanced Income Income Income High-Yield Money Market
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 316,865 $2,674,787 $1,403,730 $ 12,557 $ 23,254 $ 169,728 $ 2,656 $ 52,549
$ 401,131 $3,751,954 $1,625,707 $ 16,072 $ 25,960 $ 165,862 $ 2,543 $ 52,549
195 356 72 1 8 73 29 3
5,517 36,216 12,213 258 62 104 -- --
2,837 9,554 5,433 -- -- 240 -- --
922 6,168 857 11 5 -- -- --
6 28 13,520 53 10 2,816 63 260
1 14 4 -- -- 1 -- 1
4,155 28,591 136 -- -- 103 -- --
- ----------------------------------------------------------------------------------------------------------------
414,764 3,832,881 1,657,942 16,395 26,045 169,199 2,635 52,813
- ----------------------------------------------------------------------------------------------------------------
9,978 45,988 83,853 143 777 6,834 -- --
6 344 52 19 17 959 29 358
209 1,919 811 10 14 86 43 15
102 239 42 18 14 18 9 21
-- -- -- -- -- 136 -- --
- ----------------------------------------------------------------------------------------------------------------
10,295 48,490 84,758 190 822 8,033 81 394
$ 404,469 $3,784,391 $1,573,184 $ 16,205 $ 25,223 $ 161,166 $ 2,554 $ 52,419
- ----------------------------------------------------------------------------------------------------------------
$ 402,260 $3,747,671 $1,547,411 $ 16,175 $ 23,827 $ 160,952 $ 2,542 $ 52,408
17,225 114,457 62,012 696 1,652 13,925 235 52,404
- ----------------------------------------------------------------------------------------------------------------
$ 23.35 $ 32.74 $ 24.95 $ 23.23 $ 14.42 $ 11.56 $ 10.84 $ 1.00
- ----------------------------------------------------------------------------------------------------------------
$ 2,209 $ 36,720 $ 25,773 $ 30 $ 1,396 $ 214 $ 12 $ 11
94,657 1,123,102 1,029,445 1,319 97,159 18,282 1,077 11,023
- ----------------------------------------------------------------------------------------------------------------
$ 23.34 $ 32.70 $ 25.04 $ 23.03 $ 14.37 $ 11.67 $ 10.93 $ 1.00
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen Series / June 30, 1999 49
<PAGE>
Statements of | Changes in Net Assets
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen
For the six months ended June 30 (unaudited) Growth Aggressive Growth Capital Appreciation
and for the fiscal year ended December 31 Portfolio Portfolio Portfolio
(all numbers in thousands) 1999 1998 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) $ 1,872 $ 2,061 $ (2,596) $ (2,059) $ 509 $ 70
Net realized gain/(loss) from
investment transactions 85,476 9,731 130,792 62,166 11,768 (3,801)
Change in unrealized net appreciation or
depreciation of investments 126,109 246,903 134,378 133,925 13,587 19,907
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 213,457 258,695 262,574 194,032 25,864 16,176
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (1,932) (1,969) -- -- (507) (40)
Dividends (in excess of net investment income)* -- -- -- -- -- --
Net realized gain from investment transactions* (9,036) (48,597) (52,162) -- -- --
Distributions (in excess of realized gains) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (10,968) (50,566) (52,162) -- (507) (40)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 563,981 375,818 685,336 388,732 181,074 78,521
Retirement Shares 2,546 2 3,479 -- 3,298 --
Reinvested dividends and distributions
Institutional Shares 10,955 50,565 52,029 -- 507 40
Retirement Shares 13 1 133 -- -- --
Shares repurchased
Institutional Shares (105,471) (139,241) (376,627) (318,015) (25,554) (27,336)
Retirement Shares (242) -- (367) -- (788) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from
Capital Share Transactions 471,782 287,145 363,983 70,717 158,537 51,225
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 674,271 495,274 574,395 264,749 183,894 67,361
Net Assets:
Beginning of period 1,103,567 608,293 772,960 508,211 74,207 6,846
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $1,777,838 $1,103,567 $1,347,355 $ 772,960 $ 258,101 $ 74,207
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $1,244,784 $ 773,002 $ 839,237 $ 475,254 $ 216,485 $ 57,948
Undistributed net investment income/(loss)* 150 210 (2,602) (6) 36 34
Undistributed net realized
gain/(loss) from investments* 85,468 9,028 128,749 50,119 7,821 (3,947)
Unrealized appreciation/(depreciation) of
investments and foreign currency 447,436 321,327 381,971 247,593 33,759 20,172
$1,777,838 $1,103,567 $1,347,355 $ 772,960 $ 258,101 $ 74,207
Transactions in Portfolio Shares -
Institutional Shares
Shares sold 21,970 18,605 21,304 17,430 7,615 4,982
Reinvested dividends and distributions 408 2,441 1,555 -- 21 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 22,378 21,046 22,859 17,430 7,636 4,984
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (4,204) (7,082) (11,996) (14,193) (1,135) (1,805)
Net Increase/(Decrease) in Portfolio Shares 18,174 13,964 10,863 3,237 6,501 3,179
Shares Outstanding Beginning of Period 46,885 32,921 27,964 24,727 3,720 541
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding End of Period 65,059 46,885 38,827 27,964 10,221 3,720
- ------------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares -
Retirement Shares(2)
Shares sold 99,917 79 106,625 -- 129,610 --
Reinvested dividends and distributions 475 40 4,022 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 100,392 119 110,647 -- 129,610 --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (9,607) -- (10,871) -- (30,808) --
Net Increase/(Decrease) in Portfolio Shares 90,785 119 99,776 -- 98,802 --
Shares Outstanding Beginning of Period 754 635 620 620 1,000 1,000
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding End of Period 91,539 754 100,396 620 99,802 1,000
- ------------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 673,277 $ 747,926 $ 950,033 $ 795,996 $ 127,178 $ 65,706
Proceeds from sales of securities 397,681 531,213 612,067 747,773 43,371 20,828
Purchases of long-term
U.S. government obligations -- -- -- -- -- --
Proceeds from sales of long-term
U.S. government obligations -- -- -- -- -- --
</TABLE>
(1) Period May 1, 1998 (inception) to December 31, 1998.
(2) Transactions in Portfolio Shares - Retirement Shares numbers are not in
thousands.
*See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
50 Janus Aspen Series / June 30, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen
International Growth Worldwide Growth Balanced Equity Income Growth and Income Flexible Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
1999 1998 1999 1998 1999 1998 1999 1998 1999 1998(1) 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 965 $ 1,703 $ 6,749 $ 14,085 $ 15,831 $ 13,428 $ 10 $ 10 $ 17 $ 13 $ 4,716 $ 5,513
827 (14,669) 58,594 (60,752) 87,314 (989) 1,023 65 437 (119) 469 964
32,723 43,585 332,348 569,104 27,493 174,276 1,138 2,297 1,702 1,005 (6,285) 680
- ------------------------------------------------------------------------------------------------------------------------------------
34,515 30,619 397,691 522,437 130,638 186,715 2,171 2,372 2,156 899 (1,100) 7,157
- ------------------------------------------------------------------------------------------------------------------------------------
(1,019) (1,573) (6,818) (15,228) (16,092) (13,267) (10) (9) (16) (11) (4,711) (5,587)
-- -- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- (12,240) (59) (74) -- -- (977) (704)
-- (3,097) -- (69,710) -- (987) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(1,019) (4,670) (6,818) (84,938) (16,092) (26,494) (69) (83) (16) (11) (5,688) (6,291)
- ------------------------------------------------------------------------------------------------------------------------------------
146,996 265,075 793,648 1,208,930 563,177 390,880 5,894 6,139 16,719 6,714 49,720 84,767
2,194 4 30,322 5,082 8,936 15,037 7 -- 2,051 10 207 --
1,018 4,670 6,818 84,904 15,871 26,417 69 83 16 11 5,683 6,290
1 -- -- 34 222 77 -- -- -- -- 5 1
(90,280) (145,673) (331,717) (417,023) (26,626) (54,219) (904) (2,534) (1,433) (1,198) (17,255) (16,439)
(83) -- (1,765) (165) (2,699) (1,077) -- -- (695) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
59,846 124,076 497,306 881,762 558,881 377,115 5,066 3,688 16,658 5,537 38,360 74,619
- ------------------------------------------------------------------------------------------------------------------------------------
93,342 150,025 888,179 1,319,261 673,427 537,336 7,168 5,977 18,798 6,425 31,572 75,485
311,127 161,102 2,896,212 1,576,951 899,757 362,421 9,037 3,060 6,425 -- 129,594 54,109
- ------------------------------------------------------------------------------------------------------------------------------------
$404,469 $ 311,127 $3,784,391 $2,896,212 $1,573,184 $899,757 $16,205 $ 9,037 $ 25,223 $ 6,425 $161,166 $129,594
- ------------------------------------------------------------------------------------------------------------------------------------
$333,068 $ 273,222 $2,706,645 $2,209,339 $1,264,717 $705,836 $11,662 $ 6,596 $ 22,195 $ 5,537 $164,509 $126,149
60 114 330 400 266 527 5 5 3 2 174 169
(17,059) (17,886) (28,195) (86,790) 86,092 (1,222) 1,023 59 318 (119) 389 897
88,400 55,677 1,105,611 773,263 222,109 194,616 3,515 2,377 2,707 1,005 (3,906) 2,379
$404,469 $ 311,127 $3,784,391 $2,896,212 $1,573,184 $899,757 $16,205 $ 9,037 $ 25,223 $ 6,425 $161,166 $129,594
6,642 12,915 25,612 44,980 23,247 20,067 271 399 1,225 655 4,112 6,992
44 212 209 2,966 647 1,279 3 5 1 1 493 525
- ------------------------------------------------------------------------------------------------------------------------------------
6,686 13,127 25,821 47,946 23,894 21,346 274 404 1,226 656 4,605 7,517
- ------------------------------------------------------------------------------------------------------------------------------------
(4,084) (7,220) (10,737) (15,979) (1,108) (2,871) (43) (165) (110) (120) (1,430) (1,360)
2,602 5,907 15,084 31,967 22,786 18,475 231 239 1,116 536 3,175 6,157
14,623 8,716 99,373 67,406 39,226 20,751 465 226 536 -- 10,750 4,593
- ------------------------------------------------------------------------------------------------------------------------------------
17,225 14,623 114,457 99,373 62,012 39,226 696 465 1,652 536 13,925 10,750
- ------------------------------------------------------------------------------------------------------------------------------------
97,531 201 979,131 188,749 367,635 815,403 301 -- 145,436 1,000 16,905 --
40 8 -- 1,188 9,016 3,415 5 13 -- -- 388 57
- ------------------------------------------------------------------------------------------------------------------------------------
97,571 209 979,131 189,937 376,651 818,818 306 13 145,436 1,000 17,293 57
- ------------------------------------------------------------------------------------------------------------------------------------
(3,722) -- (56,895) (6,322) (111,349) (55,344) -- -- (49,277) -- -- --
93,849 209 922,236 183,615 265,302 763,474 306 13 96,159 1,000 17,293 57
808 599 200,866 17,251 764,143 669 1,013 1,000 1,000 -- 989 932
- ------------------------------------------------------------------------------------------------------------------------------------
94,657 808 1,123,102 200,866 1,029,445 764,143 1,319 1,013 97,159 1,000 18,282 989
- ------------------------------------------------------------------------------------------------------------------------------------
$184,181 $ 295,506 $1,360,176 $2,082,135 $ 893,249 $608,627 $ 9,167 $ 7,825 $ 15,322 $ 5,637 $107,075 $140,772
128,224 194,200 836,125 1,556,004 372,092 284,350 4,694 4,252 3,027 1,126 62,576 93,382
-- -- -- -- 88,627 76,402 -- -- -- -- 1,426 37,749
-- -- -- -- 45,970 87,965 -- -- -- -- 12,437 19,499
</TABLE>
Janus Aspen Series / June 30, 1999 51
<PAGE>
Statements of | Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
For the six months ended June 30 (unaudited) High-Yield Money Market
and for the fiscal year ended December 31 Portfolio Portfolio
(all numbers in thousands) 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 113 $ 255 $ 1,063 $ 1,650
Net realized gain/(loss) from
investment transactions 55 (51) 4 --
Change in unrealized net appreciation or
depreciation of investments (37) (141) -- --
- ------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 131 63 1,067 1,650
- ------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (120) (257) (1,063) (1,650)
Dividends (in excess of net investment income)* -- -- -- --
Net realized gain from investment transactions* -- (15) -- --
Distributions (in excess of realized gains) -- (51) -- --
- ------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (120) (323) (1,063) (1,650)
- ------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 934 4,244 56,254 132,432
Retirement Shares -- -- -- --
Reinvested dividends and distributions
Institutional Shares 120 322 1,063 1,650
Retirement Shares -- 1 -- --
Shares repurchased
Institutional Shares (1,499) (4,244) (43,603) (110,765)
Retirement Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from
Capital Share Transactions (445) 323 13,714 23,317
- ------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (434) 63 13,718 23,317
Net Assets:
Beginning of period 2,988 2,925 38,701 15,384
- ------------------------------------------------------------------------------------------------------------
End of period $ 2,554 $ 2,988 $ 52,419 $ 38,701
- ------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 2,662 $ 3,106 $ 52,415 $ 38,701
Undistributed net investment income/(loss)* 1 8 -- --
Undistributed net realized gain/(loss)
from investments* 4 (50) 4 --
Unrealized appreciation/(depreciation) of
investments and foreign currency (113) (76) -- --
$ 2,554 $ 2,988 $ 52,419 $ 38,701
Transactions in Portfolio Shares -
Institutional Shares
Shares sold 83 356 56,254 132,432
Reinvested dividends and distributions 11 28 1,063 1,650
- ------------------------------------------------------------------------------------------------------------
Total 94 384 57,317 134,082
- ------------------------------------------------------------------------------------------------------------
Shares Repurchased (133) (357) (43,603) (110,766)
Net Increase/(Decrease) in Portfolio Shares (39) 27 13,714 23,316
Shares Outstanding Beginning of Period 274 247 38,690 15,374
- ------------------------------------------------------------------------------------------------------------
Shares Outstanding End of Period 235 274 52,404 38,690
- ------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares -
Retirement Shares(1)
Shares sold -- -- -- --
Reinvested dividends and distributions 38 89 221 496
- ------------------------------------------------------------------------------------------------------------
Total 38 89 221 496
- ------------------------------------------------------------------------------------------------------------
Shares Repurchased -- -- -- --
Net Increase/(Decrease) in Portfolio Shares 38 89 221 496
Shares Outstanding Beginning of Period 1,039 950 10,802 10,306
- ------------------------------------------------------------------------------------------------------------
Shares Outstanding End of Period 1,077 1,039 11,023 10,802
- ------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 10,650 $ 8,323 -- --
Proceeds from sales of securities 10,320 9,612 -- --
Purchases of long-term
U.S. government obligations 19 640 -- --
Proceeds from sales of long-term
U.S. government obligations 98 536 -- --
</TABLE>
(1) Transactions in Portfolio Shares - Retirement Shares numbers are not in
thousands.
*See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
52 Janus Aspen Series / June 30, 1999
<PAGE>
Financial | Highlights - Institutional Shares
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Growth Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 23.54 $ 18.48 $ 15.51 $ 13.45 $ 10.57 $ 10.32
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .03 .05 .15 .17 .28 .09
Net gains/(losses) on securities
(both realized and unrealized) 3.89 6.36 3.34 2.29 2.90 .20
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 3.92 6.41 3.49 2.46 3.18 .29
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.03) (.05) (.15) (.17) (.30) (.04)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) (.14) (1.30) (.37) (.23) -- --
Distributions (in excess of realized gains) -- -- -- -- -- --
Tax return of capital -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.17) (1.35) (.52) (.40) (.30) (.04)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 27.29 $ 23.54 $ 18.48 $ 15.51 $ 13.45 $ 10.57
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 16.67% 35.66% 22.75% 18.45% 30.17% 2.76%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $1,775,338 $1,103,549 $ 608,281 $ 325,789 $ 126,911 $ 43,549
Average Net Assets for the Period (in thousands) $1,392,755 $ 789,454 $ 477,914 $ 216,125 $ 77,344 $ 26,464
Ratio of Gross Expenses to
Average Net Assets**(1) 0.67% 0.68% 0.70% 0.69% 0.78% N/A
Ratio of Net Expenses to
Average Net Assets**(1) 0.67% 0.68% 0.69% 0.69% 0.76% 0.88%
Ratio of Net Investment Income to
Average Net Assets** 0.27% 0.26% 0.91% 1.39% 1.24% 1.45%
Portfolio Turnover Rate** 65% 73% 122% 87% 185% 169%
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Aggressive Growth Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 27.64 $ 20.55 $ 18.24 $ 17.08 $ 13.62 $ 11.80
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.07) -- -- -- .24 .11
Net gains/(losses) on securities
(both realized and unrealized) 8.44 7.09 2.31 1.36 3.47 1.82
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 8.37 7.09 2.31 1.36 3.71 1.93
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- -- (.25) (.11)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) (1.40) -- -- (.19) -- --
Distributions (in excess of realized gains) -- -- -- -- -- --
Tax return of capital -- -- -- (.01) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.40) -- -- (.20) (.25) (.11)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 34.61 $ 27.64 $ 20.55 $ 18.24 $ 17.08 $ 13.62
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 30.73% 34.26% 12.66% 7.95% 27.48% 16.33%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $1,343,917 $ 772,943 $ 508,198 $ 383,693 $ 185,911 $ 41,289
Average Net Assets for the Period (in thousands) $1,018,834 $ 576,444 $ 418,464 $ 290,629 $ 107,582 $ 14,152
Ratio of Gross Expenses to
Average Net Assets**(1) 0.73% 0.75% 0.76% 0.76% 0.86% N/A
Ratio of Net Expenses to
Average Net Assets**(1) 0.73% 0.75% 0.76% 0.76% 0.84% 1.05%
Ratio of Net Investment Income to
Average Net Assets** (0.51%) (0.36%) (0.10%) (0.27%) 0.58% 2.18%
Portfolio Turnover Rate** 121% 132% 130% 88% 155% 259%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See footnote #5 in Notes to Financial Statements.
N/A - Disclosure not required for prior periods.
See Notes to Financial Statements.
Janus Aspen Series / June 30, 1999 53
<PAGE>
Financial | Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Capital Appreciation Portfolio
or through each fiscal year ended December 31 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.94 $ 12.62 $ 10.00
- ----------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .05 .01 .05
Net gains/(losses) on securities
(both realized and unrealized) 5.07 7.32 2.61
- ----------------------------------------------------------------------------------------
Total from Investment Operations 5.12 7.33 2.66
- ----------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.05) (.01) (.04)
Dividends (in excess of net investment income) -- -- --
Distributions (from capital gains) -- -- --
Distributions (in excess of realized gains) -- -- --
Tax return of capital -- -- --
- ----------------------------------------------------------------------------------------
Total Distributions (.05) (.01) (.04)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 25.01 $ 19.94 $ 12.62
- ----------------------------------------------------------------------------------------
Total Return* 25.68% 58.11% 26.60%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 255,616 $ 74,187 $ 6,833
Average Net Assets for the Period (in thousands) $ 152,409 $ 25,964 $ 2,632
Ratio of Gross Expenses to
Average Net Assets**(3) 0.74% 0.92% 1.26%
Ratio of Net Expenses to
Average Net Assets**(3) 0.74% 0.91% 1.25%
Ratio of Net Investment Income to
Average Net Assets** 0.67% 0.27% 1.43%
Portfolio Turnover Rate** 72% 91% 101%
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen International Growth Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996 1995 1994(2)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 21.27 $ 18.48 $ 15.72 $ 11.95 $ 9.72 $ 10.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .06 .13 .11 .05 .09 (.09)
Net gains/(losses) on securities
(both realized and unrealized) 2.08 3.07 2.80 4.06 2.16 (.19)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.14 3.20 2.91 4.11 2.25 (.28)
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.06) (.14) (.11) (.11) (.02) --
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) -- -- (.01) (.23) -- --
Distributions (in excess of realized gains) -- (.27) (.03) -- -- --
Tax return of capital -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.06) (.41) (.15) (.34) (.02) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.35 $ 21.27 $ 18.48 $ 15.72 $ 11.95 $ 9.72
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 10.06% 17.23% 18.51% 34.71% 23.15% (2.80%)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 402,260 $ 311,110 $ 161,091 $ 27,192 $ 1,608 $ 1,353
Average Net Assets for the Period (in thousands) $ 346,401 $ 234,421 $ 96,164 $ 7,437 $ 1,792 $ 1,421
Ratio of Gross Expenses to
Average Net Assets**(3) 0.82% 0.86% 0.96% 1.26% 2.69% N/A
Ratio of Net Expenses to
Average Net Assets**(3) 0.82% 0.86% 0.96% 1.25% 2.50% 2.50%
Ratio of Net Investment Income to
Average Net Assets** 0.56% 0.73% 0.70% 0.62% (.80%) (1.30%)
Portfolio Turnover Rate** 81% 93% 86% 65% 211% 275%
</TABLE>
(1) Period May 1, 1997, (inception) to December 31, 1997
(2) Period May 2, 1994 (inception) to December 31, 1994
(3) See footnote #5 in Notes to Financial Statements.
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
N/A - Disclosure not required for prior periods.
See Notes to Financial Statements.
54 Janus Aspen Series / June 30, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Worldwide Growth Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 29.09 $ 23.39 $ 19.44 $ 15.31 $ 12.07 $ 11.89
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .06 .16 .16 .16 .11 .04
Net gains/(losses) on securities
(both realized and unrealized) 3.65 6.59 4.14 4.27 3.19 .14
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 3.71 6.75 4.30 4.43 3.30 .18
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.06) (.18) (.17) (.17) (.06) --
Dividends (in excess of net investment income) -- -- (.02) -- -- --
Distributions (from capital gains) -- -- (.16) (.13) -- --
Distributions (in excess of realized gains) -- (.87) -- -- -- --
Tax return of capital -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.06) (1.05) (.35) (.30) (.06) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 32.74 $ 29.09 $ 23.39 $ 19.44 $ 15.31 $ 12.07
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 12.75% 28.92% 22.15% 29.04% 27.37% 1.53%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $3,747,671 $2,890,375 $1,576,548 $ 582,603 $ 108,563 $ 37,728
Average Net Assets for the Period (in thousands) $3,270,797 $2,217,695 $1,148,951 $ 304,111 $ 59,440 $ 22,896
Ratio of Gross Expenses to
Average Net Assets**(1) 0.84% 0.72% 0.74% 0.80% 0.90% N/A
Ratio of Net Expenses to
Average Net Assets**(1) 0.84% 0.72% 0.74% 0.80% 0.87% 1.18%
Ratio of Net Investment Income to
Average Net Assets** 0.42% 0.64% 0.67% 0.83% 0.95% 0.50%
Portfolio Turnover Rate** 54% 77% 80% 62% 113% 217%
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Balanced Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 22.50 $ 17.47 $ 14.77 $ 13.03 $ 10.63 $ 10.64
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .25 .39 .34 .32 .17 .15
Net gains/(losses) on securities
(both realized and unrealized) 2.46 5.51 2.89 1.81 2.45 (.06)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.71 5.90 3.23 2.13 2.62 .09
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.26) (.38) (.35) (.30) (.22) (.10)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) -- (.45) (.18) (.09) -- --
Distributions (in excess of realized gains) -- (.04) -- -- -- --
Tax return of capital -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.26) (.87) (.53) (.39) (.22) (.10)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 24.95 $ 22.50 $ 17.47 $ 14.77 $ 13.03 $ 10.63
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 12.06% 34.28% 22.10% 16.18% 24.79% 0.84%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $1,547,411 $ 882,495 $ 362,409 $ 85,480 $ 14,021 $ 3,153
Average Net Assets for the Period (in thousands) $1,191,109 $ 555,002 $ 176,432 $ 43,414 $ 5,739 $ 2,336
Ratio of Gross Expenses to
Average Net Assets**(1) 0.70% 0.74% 0.83% 0.94% 1.37% N/A
Ratio of Net Expenses to
Average Net Assets**(1) 0.70% 0.74% 0.82% 0.92% 1.30% 1.57%
Ratio of Net Investment Income to
Average Net Assets** 2.64% 2.41% 2.87% 2.92% 2.41% 1.90%
Portfolio Turnover Rate** 72% 70% 139% 103% 149% 158%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See footnote #5 in Notes to Financial Statements.
N/A - Disclosure not required for prior periods.
Janus Aspen Series / June 30, 1999 55
<PAGE>
Financial | Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Equity Income Portfolio
or through each fiscal year ended December 31 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.41 $ 13.46 $ 10.00
- ----------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .02 .02 .01
Net gains/(losses) on securities
(both realized and unrealized) 3.90 6.16 3.46
- ----------------------------------------------------------------------------------------
Total from Investment Operations 3.92 6.18 3.47
- ----------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.02) (.02) (.01)
Dividends (in excess of net investment income) -- -- --
Distributions (from capital gains) (.08) (.21) --
Distributions (in excess of realized gains) -- -- --
Tax return of capital -- -- --
- ----------------------------------------------------------------------------------------
Total Distributions (.10) (.23) (.01)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.23 $ 19.41 $ 13.46
- ----------------------------------------------------------------------------------------
Total Return* 20.21% 46.24% 34.70%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 16,175 $ 9,017 $ 3,047
Average Net Assets for the Period (in thousands) $ 12,120 $ 5,629 $ 1,101
Ratio of Gross Expenses to
Average Net Assets**(3) 1.25% 1.25% 1.25%
Ratio of Net Expenses to
Average Net Assets**(3) 1.25% 1.25% 1.25%
Ratio of Net Investment Income to
Average Net Assets** 0.17% 0.17% 0.35%
Portfolio Turnover Rate** 79% 79% 128%
<CAPTION>
For a share outstanding during the Janus Aspen
six months ended June 30 (unaudited) Growth and Income Portfolio
or through each fiscal year ended December 31 1999 1998(2)
- --------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 11.96 $ 10.00
- --------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .01 .02
Net gains/(losses) on securities
(both realized and unrealized) 2.46 1.96
- --------------------------------------------------------------------------------
Total from Investment Operations 2.47 1.98
- --------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.01) (.02)
Dividends (in excess of net investment income) -- --
Distributions (from capital gains) -- --
Distributions (in excess of realized gains) -- --
Tax return of capital -- --
- --------------------------------------------------------------------------------
Total Distributions (.01) (.02)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.42 $ 11.96
- --------------------------------------------------------------------------------
Total Return* 20.57% 19.80%
- --------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 23,827 $ 6,413
Average Net Assets for the Period (in thousands) $ 12,476 $ 2,883
Ratio of Gross Expenses to
Average Net Assets**(3) 1.25% 1.25%
Ratio of Net Expenses to
Average Net Assets**(3) 1.25% 1.25%
Ratio of Net Investment Income to
Average Net Assets** 0.29% 0.66%
Portfolio Turnover Rate** 55% 62%
(1) Period May 1, 1997, (inception) to December 31, 1997.
(2) Period May 1, 1998, (inception) to December 31, 1998.
(3) See footnote #5 in Notes to Financial Statements.
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
See Notes to Financial Statements.
56 Janus Aspen Series / June 30, 1999
<PAGE>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Flexible Income Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.05 $ 11.78 $ 11.24 $ 11.11 $ 9.48 $ 9.97
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .35 .64 .67 .74 .53 .47
Net gains/(losses) on securities
(both realized and unrealized) (.42) .41 .62 .24 1.70 (.56)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.07) 1.05 1.29 .98 2.23 (.09)
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.35) (.67) (.64) (.72) (.60) (.40)
Dividends (in excess of net investment income) -- -- -- -- -- --
Distributions (from capital gains) (.07) (.11) (.11) (.13) -- --
Distributions (in excess of realized gains) -- -- -- -- -- --
Tax return of capital -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.42) (.78) (.75) (.85) (.60) (.40)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.56 $ 12.05 $ 11.78 $ 11.24 $ 11.11 $ 9.48
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* (0.63%) 9.11% 11.76% 9.19% 23.86% (0.91%)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 160,952 $ 129,582 $ 54,098 $ 25,315 $ 10,831 $ 1,924
Average Net Assets for the Period (in thousands) $ 146,696 $ 86,627 $ 36,547 $ 17,889 $ 5,556 $ 1,636
Ratio of Gross Expenses to
Average Net Assets**(1) 0.76% 0.73% 0.75% 0.84% 1.07% N/A
Ratio of Net Expenses to
Average Net Assets**(1) 0.75% 0.73% 0.75% 0.83% 1.00% 1.00%
Ratio of Net Investment Income to
Average Net Assets** 6.48% 6.36% 6.90% 7.31% 7.46% 5.49%
Portfolio Turnover Rate** 112% 145% 119% 250% 236% 234%
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen High-Yield Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996(2)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.85 $ 11.78 $ 10.83 $ 10.00
- ------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .51 .87 .70 .43
Net gains/(losses) on securities
(both realized and unrealized) .01 (.70) .99 .80
- ------------------------------------------------------------------------------------------------------
Total from Investment Operations .52 .17 1.69 1.23
- ------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.53) (.89) (.68) (.40)
Dividends (in excess of net investment income) -- -- -- --
Distributions (from capital gains) -- (.05) (.06) --
Distributions (in excess of realized gains) -- (.16) -- --
Tax return of capital -- -- -- --
- ------------------------------------------------------------------------------------------------------
Total Distributions (.53) (1.10) (.74) (.40)
- ------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.84 $ 10.85 $ 11.78 $ 10.83
- ------------------------------------------------------------------------------------------------------
Total Return* 4.70% 1.26% 15.98% 12.40%
- ------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,542 $ 2,977 $ 2,914 $ 783
Average Net Assets for the Period (in thousands) $ 2,887 $ 3,281 $ 1,565 $ 459
Ratio of Gross Expenses to
Average Net Assets**(1) 1.00% 1.00% 1.00% 1.01%
Ratio of Net Expenses to
Average Net Assets**(1) 1.00% 1.00% 1.00% 1.00%
Ratio of Net Investment Income to
Average Net Assets** 7.89% 7.76% 7.98% 5.74%
Portfolio Turnover Rate** 800% 301% 299% 301%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) See footnote #5 in Notes to Financial Statements.
(2) Period May 1, 1996, (inception) to December 31, 1996.
N/A - Disclosure not required for prior periods.
Janus Aspen Series / June 30, 1999 57
<PAGE>
Financial | Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the
six months ended June 30 (unaudited) Janus Aspen Money Market Portfolio
or through each fiscal year ended December 31 1999 1998 1997 1996 1995(1)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .02 .05 .05 .05 .04
Net gains/(losses) on securities
(both realized and unrealized) -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .02 .05 .05 .05 .04
- --------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.02) (.05) (.05) (.05) (.04)
Dividends (in excess of net investment income) -- -- -- -- --
Distributions (from capital gains) -- -- -- -- --
Distributions (in excess of realized gains) -- -- -- -- --
Tax return of capital -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total Distributions (.02) (.05) (.05) (.05) (.04)
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------
Total Return* 2.25% 5.36% 5.17% 5.05% 3.63%
- --------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 52,408 $ 38,690 $ 15,374 $ 6,106 $ 1,735
Average Net Assets for the Period (in thousands) $ 46,609 $ 31,665 $ 8,926 $ 3,715 $ 1,543
Ratio of Gross Expenses to
Average Net Assets**(2) 0.48% 0.34% 0.50% 0.50% 0.50%
Ratio of Net Expenses to
Average Net Assets**(2) 0.48% 0.34% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to
Average Net Assets** 4.60% 5.21% 5.17% 4.93% 5.30%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) Period May 1, 1995, (inception) to December 31, 1995.
(2) See footnote #5 in Notes to Financial Statements.
N/A - Disclosure not required for prior periods.
See Notes to Financial Statements.
58 Janus Aspen Series / June 30, 1999
<PAGE>
Financial | Highlights - Retirement Shares
<TABLE>
<CAPTION>
For a share outstanding during the Janus Aspen
six months ended June 30 (unaudited) or Janus Aspen Growth Portfolio Aggressive Growth Portfolio
through each fiscal year ended December 31 1999 1998 1997(1) 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 23.45 $ 18.46 $ 16.18 $ 27.42 $ 20.49 $ 16.12
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .09 (.03) .04 .12 (.12) (.06)
Net gains/(losses) on securities
(both realized and unrealized) 3.91 6.32 2.71 8.10 7.05 4.43
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 4.00 6.29 2.75 8.22 6.93 4.37
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- (.10) -- -- --
Distributions (from capital gains) (.14) (1.30) (.37) (1.40) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.14) (1.30) (.47) (1.40) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 27.31 $ 23.45 $ 18.46 $ 34.24 $ 27.42 $ 20.49
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 17.07% 34.99% 17.22% 30.43% 33.58% 27.11%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,500 $ 18 $ 12 $ 3,438 $ 17 $ 13
Average Net Assets for the Period (in thousands) $ 861 $ 13 $ 11 $ 1,275 $ 14 $ 11
Ratio of Gross Expenses to
Average Net Assets**(2) 1.19% 1.18% 1.20% 1.24% 1.26% 1.32%
Ratio of Net Expenses to
Average Net Assets**(2) 1.19% 1.18% 1.20% 1.23% 1.26% 1.32%
Ratio of Net Investment Income to
Average Net Assets** (0.13%) (0.23%) 0.29% (1.02%) (0.86%) (0.62%)
Portfolio Turnover Rate** 65% 73% 122% 121% 132% 130%
<CAPTION>
For a share outstanding during the Janus Aspen Capital Janus Aspen International
six months ended June 30 (unaudited) or Appreciation Portfolio Growth Portfolio
through each fiscal year ended December 31 1999 1998 1997(1) 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.86 $ 12.62 $ 10.00 $ 21.27 $ 18.44 $ 16.80
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.07) (.04) .12 .04 .05 .04
Net gains/(losses) on securities
(both realized and unrealized) 5.11 7.28 2.50 2.04 3.07 1.73
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 5.04 7.24 2.62 2.08 3.12 1.77
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- (.01) (.01) (.09)
Distributions (from capital gains) -- -- -- -- (.28) (.04)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (.01) (.29) (.13)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 24.90 $ 19.86 $ 12.62 $ 23.34 $ 21.27 $ 18.44
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 25.38% 57.37% 26.20% 9.78% 16.86% 10.53%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,485 $ 20 $ 13 $ 2,209 $ 17 $ 11
Average Net Assets for the Period (in thousands) $ 870 $ 15 $ 12 $ 796 $ 13 $ 11
Ratio of Gross Expenses to
Average Net Assets**(2) 1.17% 1.44% 1.73% 1.30% 1.35% 1.45%
Ratio of Net Expenses to
Average Net Assets**(2) 1.17% 1.44% 1.73% 1.30% 1.35% 1.45%
Ratio of Net Investment Income to
Average Net Assets** 0.41% (0.25%) 1.55% 0.62% 0.26% 0.26%
Portfolio Turnover Rate** 72% 91% 101% 81% 93% 86%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) Period May 1, 1997, (inception) to December 31, 1997.
(2) See footnote #5 in Notes to Financial Statements.
See Notes to Financial Statements.
Janus Aspen Series / June 30, 1999 59
<PAGE>
Financial | Highlights - Retirement Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the Janus Aspen Worldwide Janus Aspen
six months ended June 30 (unaudited) or Growth Portfolio Balanced Portfolio
through each fiscal year ended December 31 1999 1998 1997(1) 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 29.06 $ 23.36 $ 20.72 $ 22.59 $ 17.47 $ 15.38
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .01 .02 .14 .22 .21 .27
Net gains/(losses) on securities
(both realized and unrealized) 3.63 6.57 2.80 2.45 5.58 2.30
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 3.64 6.59 2.94 2.67 5.79 2.57
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- (.02) (.14) (.22) (.18) (.30)
Distributions (from capital gains) -- (.87) (.16) -- (.49) (.18)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.89) (.30) (.22) (.67) (.48)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 32.70 $ 29.06 $ 23.36 $ 25.04 $ 22.59 $ 17.47
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* 12.53% 28.25% 14.22% 11.84% 33.59% 16.92%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 36,720 $ 5,837 $ 403 $ 25,773 $ 17,262 $ 12
Average Net Assets for the Period (in thousands) $ 20,029 $ 1,742 $ 11 $ 21,255 $ 3,650 $ 11
Ratio of Gross Expenses to
Average Net Assets**(2) 1.38% 1.22% 1.26% 1.20% 1.24% 1.32%
Ratio of Net Expenses to
Average Net Assets**(2) 1.38% 1.22% 1.26% 1.20% 1.24% 1.32%
Ratio of Net Investment Income to
Average Net Assets** 0.04% (0.02%) 0.16% 2.13% 2.04% 2.38%
Portfolio Turnover Rate** 54% 77% 80% 72% 70% 139%
<CAPTION>
For a share outstanding during the Janus Aspen Equity Income Janus Aspen Growth and
six months ended June 30 (unaudited) or Portfolio Income Portfolio
through each fiscal year ended December 31 1999 1998 1997(1) 1999 1998(3)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.28 $ 13.42 $ 10.00 $ 11.94 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.01) (.05) .01 (.02) .01
Net gains/(losses) on securities
(both realized and unrealized) 3.85 6.12 3.41 2.45 1.93
- --------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 3.84 6.07 3.42 2.43 1.94
- --------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- -- --
Distributions (from capital gains) (.09) (.21) -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total Distributions (.09) (.21) -- -- --
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.03 $ 19.28 $ 13.42 $ 14.37 $ 11.94
- --------------------------------------------------------------------------------------------------------------------
Total Return* 19.90% 45.55% 34.20% 20.27% 19.40%
- --------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 30 $ 20 $ 13 $ 1,396 $ 12
Average Net Assets for the Period (in thousands) $ 22 $ 16 $ 12 $ 485 $ 10
Ratio of Gross Expenses to
Average Net Assets**(2) 1.76% 1.75% 1.74% 1.75% 1.72%
Ratio of Net Expenses to
Average Net Assets**(2) 1.75% 1.75% 1.74% 1.75% 1.72%
Ratio of Net Investment Income to
Average Net Assets** (0.32%) (0.33)% 0.07% (0.18%) 0.21%
Portfolio Turnover Rate** 79% 79% 128% 55% 62%
</TABLE>
(1) Period May 1, 1997, (inception) to December 31, 1997.
(2) See footnote #5 in Notes to Financial Statements.
(3) Period May 1, 1998, (inception) to December 31, 1998
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
See Notes to Financial Statements.
60 Janus Aspen Series / June 30, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the Janus Aspen Flexible Income Janus Aspen
six months ended June 30 (unaudited) or Portfolio High-Yield Portfolio
through each fiscal year ended December 31 1999 1998 1997(1) 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.05 $ 11.77 $ 11.41 $ 10.84 $ 11.78 $ 11.19
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .19 .73 .50 .41 .87 .59
Net gains/(losses) on securities
(both realized and unrealized) (.32) .27 .58 .08 (.77) .71
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.13) 1.00 1.08 .49 .10 1.30
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.18) (.61) (.61) (.40) (.83) (.65)
Distributions (from capital gains) (.07) (.11) (.11) -- (.21) (.06)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.25) (.72) (.72) (.40) (1.04) (.71)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.67 $ 12.05 $ 11.77 $ 10.93 $ 10.84 $ 11.78
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return* (1.05%) 8.58% 9.73% 4.42% 0.67% 11.96%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 214 $ 12 $ 11 $ 12 $ 11 $ 11
Average Net Assets for the Period (in thousands) $ 110 $ 11 $ 10 $ 12 $ 12 $ 11
Ratio of Gross Expenses to
Average Net Assets**(2) 1.24% 1.24% 1.23% 1.51% 1.50% 1.50%
Ratio of Net Expenses to
Average Net Assets**(2) 1.24% 1.23% 1.23% 1.50% 1.50% 1.50%
Ratio of Net Investment Income to
Average Net Assets** 6.25% 5.92% 6.39% 7.42% 7.33% 7.42%
Portfolio Turnover Rate** 112% 145% 119% 800% 301% 299%
<CAPTION>
For a share outstanding during the Janus Aspen Money
six months ended June 30 (unaudited) or Market Portfolio
through each fiscal year ended December 31 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------
<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 .03
Net gains/(losses) on securities
(both realized and unrealized) -- -- --
- ----------------------------------------------------------------------------------------
Total from Investment Operations .02 .05 .03
- ----------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.02) (.05) (.03)
Distributions (from capital gains) -- -- --
- ----------------------------------------------------------------------------------------
Total Distributions (.02) (.05) (.03)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------
Total Return* 2.01% 4.85% 3.13%
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 11 $ 11 $ 10
Average Net Assets for the Period (in thousands) $ 11 $ 10 $ 10
Ratio of Gross Expenses to
Average Net Assets**(2) 0.97% 0.84% 1.00%
Ratio of Net Expenses to
Average Net Assets**(2) 0.97% 0.84% 1.00%
Ratio of Net Investment Income to
Average Net Assets** 4.09% 4.74% 4.66%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) Period May 1, 1997, (inception) to December 31, 1997.
(2) See footnote #5 in Notes to Financial Statements.
N/A - Disclosure not required for prior periods.
Janus Aspen Series / June 30, 1999 61
<PAGE>
Notes to | Schedules of Investments
ADR - American Depository Receipt
DEM - German Deutschemark
EUR - Euro
GBP - British Pound
GDR - Global Depository Receipt
* Non-income-producing security
** A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts and/or forward
currency contracts.
+ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
1) Variable Rate Notes. The interest rate, which is based on specific, or an
index of, market interest rates, is subject to change. Rates in the security
description are as of June 30, 1999.
2) Money market funds may hold securities with stated maturities of greater than
397 days when those securities have features that allow a fund to "put" back
the security to the issuer or to a third party within 397 days of
acquisition. The maturity dates shown in the security descriptions are the
stated maturity dates.
3) Repurchase Agreements held by a 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. In the
event of default on the obligation to repurchase, the Portfolio has the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
# The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following
is a summary of the transactions with each such affiliate for the period
ended June 30, 1999.
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 6/30/99
- --------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
British Telecommunications PLC 1,498,957 $25,502,610 -- -- -- -- $25,178,060
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
62 Janus Aspen Series / June 30, 1999
<PAGE>
Notes to | Financial Statements
The following section describes the organization and significant accounting
policies of the Portfolios and provides more detailed information about the
schedules and tables that appear throughout this report. In addition, the Notes
explain how the Portfolios operate and the methods used in preparing and
presenting this report.
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
11 Portfolios or series of shares with differing investment objectives and
policies. Eight 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 Balanced Portfolio, Janus
Aspen Equity Income Portfolio, and Janus Aspen Growth and Income Portfolio.
Two Portfolios invest primarily in income-producing securities: Janus Aspen
Flexible Income Portfolio and Janus Aspen High-Yield Portfolio. Janus Aspen
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
nondiversified.
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. Effective May 1, 1997, the Trust
issued a new class of shares, the Retirement Shares. Retirement Shares of the
Trust are issued and redeemed only in connection with certain qualified
retirement plans. Janus Capital invested $10,000 of initial seed capital in
the Retirement Shares of each Portfolio.
Effective May 1, 1998, the Trust issued one new series of shares, the Janus
Aspen Growth and Income Portfolio. Janus Capital invested $10,000 of initial
seed capital in each class of the 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 covered by other
securities, in possession at the Portfolio's custodian, which are denoted in
the accompanying Schedule of Investments. The market value of these
securities is evaluated daily to ensure that it is equal to or exceeds the
current market value of the corresponding forward currency contract.
Currency gain and loss are also calculated on payables and receivables that
are denominated in foreign currencies. The payables and receivables are
generally related to security transactions and income.
Janus Aspen Series / June 30, 1999 63
<PAGE>
Notes to | Financial Statements (continued)
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 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 indexes 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 because of 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 eight 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, Janus Aspen Equity Income
Portfolio, and Janus Aspen Growth and Income Portfolio advisory fees are
reduced to the effective rates of Janus Fund, Janus Enterprise Fund, Janus
Twenty Fund, Janus Overseas Fund, Janus Worldwide Fund, Janus Balanced Fund,
Janus Equity Income Fund and Janus Growth and Income Fund, respectively. The
effective rate for each Portfolio for the period ended June 30, 1999, was
.65%, .69%, .65%, .66%, .65%, .67%, .72%, and .66%, respectively. The
Flexible Income Portfolio is 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. For additional information on the specific fees
for the Retirement Shares, please refer to note 4 of the financial
statements.
64 Janus Aspen Series / June 30, 1999
<PAGE>
Janus Capital has agreed to reduce its fee to the extent normal operating
expenses exceed 1% of the average net assets of the Flexible Income and
High-Yield Portfolios and .50% of the average net assets of the Money Market
Portfolio for a fiscal year.
Janus Capital has agreed to continue these fee waivers and reductions until
at least the next annual renewal of the advisory contracts. The participant
administration fee and distribution fee applicable to the Retirement Shares
are not included in these expense limits.
Until at least the next annual renewal of the advisory contracts, 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 Equity Income and
Growth and Income Portfolios. The participant administration fee and
distribution fee applicable to the Retirement Shares are not included in this
expense limit.
Officers and certain trustees of the Trust are also officers and/or directors
of Janus Capital; however, they receive no compensation from the Trust.
DST Systems, Inc. (DST), an affiliate of Janus Capital through a degree of
common ownership, provides accounting systems to the Portfolios. DST
Securities, Inc., a wholly owned subsidiary of DST, provides brokerage
services on certain portfolio transactions. Brokerage commissions paid to DST
Securities, Inc. serve to reduce fees and expenses. Brokerage commissions
paid, fees reduced and the net fees paid to DST for the period ended June 30,
1999, are noted below:
<TABLE>
<CAPTION>
DST Securities, Inc. Portfolio Expense DST Systems
Portfolio Commissions Paid* Reduction* Costs
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Aspen Growth Portfolio $4,494 $3,371 $5,748
Janus Aspen Aggressive Growth Portfolio -- -- 9,089
Janus Aspen Capital Appreciation Portfolio -- -- 6,380
Janus Aspen International Growth Portfolio -- -- 8,022
Janus Aspen Worldwide Growth Portfolio -- -- 9,172
Janus Aspen Balanced Portfolio -- -- 9,097
Janus Aspen Equity Income Portfolio -- -- 5,721
Janus Aspen Growth and Income Portfolio 55 41 5,556
Janus Aspen Flexible Income Portfolio -- -- 6,893
Janus Aspen High-Yield Portfolio -- -- 6,039
Janus Aspen Money Market Portfolio -- -- 4,874
- ---------------------------------------------------------------------------------------------------
</TABLE>
*The difference between commissions paid to DST Securities, Inc. and expenses
reduced constituted commissions paid to an unaffiliated clearing broker.
Janus Aspen Series / June 30, 1999 65
<PAGE>
Notes to | Financial Statements (continued)
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. As
of December 31, 1998, the net capital loss carryovers noted below are
available to offset future realized capital gains and thereby reduce future
taxable gains distributions. These carryovers expire between December 31,
2005, and December 31, 2006.
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes
as of June 30, 1999, are also noted below.
<TABLE>
<CAPTION>
Net Capital Loss Federal Tax Unrealized Unrealized Net Appreciation/
Portfolio Carryovers Cost Appreciation (Depreciation) (Depreciation)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Janus Aspen Growth Portfolio -- $1,329,380,558 $ 461,114,018 $ (13,674,912) $ 447,439,106
Janus Aspen Aggressive Growth Portfolio -- 993,810,834 415,023,526 (36,537,315) 378,486,211
Janus Aspen Capital Appreciation Portfolio $(3,876,042) 221,649,236 38,338,225 (4,578,808) 33,759,417
Janus Aspen International Growth Portfolio (16,186,634) 317,283,686 94,446,973 (10,599,856) 83,847,117
Janus Aspen Worldwide Growth Portfolio (71,839,828) 2,677,094,815 1,185,064,324 (110,205,421) 1,074,858,903
Janus Aspen Balanced Portfolio (1,222,295) 1,403,730,166 263,201,489 (41,224,674) 221,976,815
Janus Aspen Equity Income Portfolio -- 12,557,145 3,875,176 (360,310) 3,514,866
Janus Aspen Growth and Income Portfolio (94,424) 23,273,831 3,024,958 (338,525) 2,686,433
Janus Aspen Flexible Income Portfolio -- 169,745,562 993,823 (4,877,104) (3,883,281)
Janus Aspen High-Yield Portfolio (13,866) 2,656,524 23,194 (136,605) (113,411)
Janus Aspen Money Market Portfolio -- 52,548,627 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</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 a distribution fee of up to
.25% of average net assets and a participant administration fee of up to .25%
of average net assets.
66 Janus Aspen Series / June 30, 1999
<PAGE>
5. EXPENSE RATIOS
Listed below are the gross expense ratios for the various Portfolios that
would be in effect, absent the waiver of certain fees and/or voluntary
reduction of the adviser's fee to the effective rate of the corresponding
Janus retail fund. Expense ratios are annualized for all periods less than
one year.
For the six months ended June 30, 1999 (unaudited)
or through each fiscal year or period ended December 31
<TABLE>
<CAPTION>
Institutional Shares Retirement Shares
- ------------------------------------------------------------------------------------------------------ --------------------------
Portfolio 1999 1998 1997 1996 1995 1994 1999 1998 1997(2)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio 0.70% 0.75% 0.78% 0.83% 0.98% 1.23% 1.22% 1.25% 1.28%
Janus Aspen Aggressive Growth Portfolio 0.73% 0.75% 0.78% 0.83% 0.93% 1.14% 1.24% 1.26% 1.34%
Janus Aspen Capital Appreciation Portfolio 0.82% 0.97% 2.19%(2) N/A N/A N/A 1.27% 1.49% 2.66%
Janus Aspen International Growth Portfolio 0.90% 0.95% 1.08% 2.21% 3.57% 4.67%(5) 1.38% 1.44% 1.57%
Janus Aspen Worldwide Growth Portfolio 0.85% 0.74% 0.81% 0.91% 1.09% 1.49% 1.39% 1.24% 1.32%
Janus Aspen Balanced Portfolio 0.71% 0.74% 0.83% 1.07% 1.55% 1.74% 1.20% 1.26% 1.33%
Janus Aspen Equity Income Portfolio 1.65% 1.86% 5.75%(2) N/A N/A N/A 2.16% 2.36% 6.19%
Janus Aspen Growth and Income Portfolio 1.53% 3.06%(1) N/A N/A N/A N/A 2.03% 3.53%(1) N/A
Janus Aspen Flexible Income Portfolio 0.76% 0.73% 0.75% 0.84% 1.07% 1.35% 1.24% 1.24% 1.23%
Janus Aspen High-Yield Portfolio 5.35% 2.11% 3.27% 6.29%(3) N/A N/A 5.85% 2.61% 3.42%
Janus Aspen Money Market Portfolio 0.55% 0.34% 0.55% 0.78% 1.07%(4) N/A 1.05% 0.84% 1.10%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Period May 1, 1998, (inception) to December 31, 1998.
(2) Period May 1, 1997, (inception) to December 31, 1997.
(3) Period May 1, 1996, (inception) to December 31, 1996.
(4) Period May 1, 1995, (inception) to December 31, 1995.
(5) Period May 2, 1994, (inception) to December 31, 1994.
Janus Aspen Series / June 30, 1999 67
<PAGE>
Explanations of | Charts, Tables and Financial Statements
1. PERFORMANCE OVERVIEWS
When comparing the performance of a Portfolio with an index, keep in mind
that market indexes do not include brokerage commissions that would be
incurred if you purchased the individual securities in the index. They also
do not include taxes payable on dividends and interest or operating expenses
incurred if you maintained a Portfolio invested in the index.
Average annual total returns are also quoted for each class of Portfolio.
Average annual total return is calculated by taking the growth or decline in
value of an investment over a period of time, including reinvestment of
dividends and distributions, then calculating the annual compounded
percentage rate that would have produced the same result had the rate of
growth been constant throughout the period.
2. SCHEDULES OF INVESTMENTS
Following the performance overview section is each Portfolio's Schedule of
Investments. This schedule reports the industry concentrations and types of
securities held in each Portfolio on the last day of the reporting period.
Securities are usually listed by type (common stock, corporate bonds, U.S.
government obligations, etc.) and by industry classification (banking,
communications, insurance, etc.).
The market value of each security is quoted as of the last day of the
reporting period. The value of securities denominated in foreign currencies
is converted into U.S. dollars.
Portfolios that invest in foreign securities also provide a summary of
investments by country. This summary reports the Portfolio's exposure to
different countries by providing the percentage of securities invested in
each country.
2A. FORWARD CURRENCY CONTRACTS
A table listing forward currency contracts follows each Portfolio's Schedule
of Investments (if applicable). Forward currency contracts are agreements to
deliver or receive a preset amount of currency at a future date. Forward
currency contracts are used to hedge against foreign currency risk in the
Portfolio's long-term holdings.
The table provides the name of the foreign currency, the settlement date of
the contract, the amount of the contract, the value of the currency in U.S.
dollars and the amount of unrealized gain or loss. The amount of unrealized
gain or loss reflects the change in currency exchange rates from the time the
contract was opened to the last day of the reporting period.
3. STATEMENT OF OPERATIONS
This statement details the Portfolios' income, expenses, gains and losses on
securities and currency transactions, and appreciation or depreciation of
current Portfolio holdings.
The first section in this statement, titled "Investment Income," reports the
dividends earned from stocks and interest earned from interest-bearing
securities in the Portfolio.
The next section reports the expenses and expense offsets incurred by the
Portfolios, including the advisory fee paid to the investment adviser,
transfer agent fees, shareholder servicing expenses, and printing and postage
for mailing statements, financial reports and prospectuses.
The last section lists the increase or decrease in the value of securities
held in the Portfolios. Portfolios realize a gain (or loss) when they sell
their position in a particular security. An unrealized gain (or loss) refers
to the change in net appreciation or depreciation of the Portfolios during
the period. "Net Gain/(Loss) on Investments" is affected both by changes in
the market value of Portfolio holdings and by gains (or losses) realized
during the reporting period.
68 Janus Aspen Series / June 30, 1999
<PAGE>
4. STATEMENT OF ASSETS AND LIABILITIES
This statement is often referred to as the "balance sheet." It lists the
assets and liabilities of the Portfolios on the last day of the reporting
period.
The Portfolios' assets are calculated by adding the value of the securities
owned, the receivable for securities sold but not yet settled, the receivable
for dividends declared but not yet received on stocks owned, and the
receivable for Portfolio shares sold to investors but not yet settled. The
Portfolios' liabilities include payables for securities purchased but not yet
settled, Portfolio shares redeemed but not yet paid, and expenses owed but
not yet paid. Additionally, there may be other assets and liabilities such as
forward currency contracts.
The last line of this statement reports the net asset value (NAV) per share
on the last day of the reporting period for each class of the Portfolio. The
NAV is calculated by dividing the Portfolios' net assets (assets minus
liabilities) by the number of shares outstanding.
5. STATEMENT OF CHANGES IN NET ASSETS
This statement reports the increase or decrease in the Portfolios' net assets
during the reporting period. Changes in the Portfolios' net assets are
attributable to investment operations, dividends, distributions and capital
share transactions. This is important to investors because it shows exactly
what caused the Portfolios' net asset size to change during the period.
The first section summarizes the information from the Statement of Operations
regarding changes in net assets due to the Portfolios' investment
performance. The Portfolios' net assets may also change as a result of
dividend and capital gains distributions to investors. If investors receive
their dividends in cash, money is taken out of the Portfolio to pay the
distribution. If investors reinvest their dividends, the Portfolios' net
assets will not be affected. If you compare each Portfolio's "Net Decrease
from Dividends and Distributions" to the "Reinvested dividends and
distributions," you'll notice that dividend distributions had little effect
on each Portfolio's net assets. This is because the majority of Janus
investors reinvest their distributions.
The reinvestment of dividends is included under "Capital Share Transactions."
"Capital Shares" refers to the money investors contribute to the Portfolios
through purchases or withdrawal via redemptions. Each Portfolio's net assets
will increase and decrease in value as investors purchase and redeem shares
from a Portfolio.
The section entitled "Net Assets Consist of" breaks down the components of
the Portfolios' net assets. Because Portfolios must distribute substantially
all earnings, you'll notice that a significant portion of net assets is
shareholder capital.
6. FINANCIAL HIGHLIGHTS
This schedule provides a per-share breakdown of the components that affect
the net asset value (NAV) for current and past reporting periods for each
class of the Portfolio. Not only does this table provide you with total
return, it also reports total distributions, asset size, expense ratios and
portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of
the reporting period. The next line reports the net investment income per
share, which comprises dividends and interest income earned on securities
held by the Portfolios. Following is the total of gains, realized and
unrealized. Dividends and distributions are then subtracted to arrive at the
NAV per share at the end of the period.
Also included are the expense ratios, or the percentage of net assets that
was used to cover operating expenses during the period. Expense ratios vary
across the Portfolios for a number of reasons, including the differences in
management fees, average shareholder account size, the frequency of dividend
payments and the extent of foreign investments, which entail greater
transaction costs.
The Portfolios' expenses may be reduced through expense-reduction
arrangements. These arrangements include the use of brokerage commissions,
uninvested cash balances earning interest or balance credits. The Statement
of Operations reflects total expenses before any such offset, the amount of
offset and the net expenses.
Janus Aspen Series / June 30, 1999 69
<PAGE>
Explanations of | Charts, Tables and Financial Statements (continued)
The expense ratios listed in the Financial Highlights reflect total expenses
both prior to any expense offset and after the offsets.
Expense ratios prior to any expense offset are part of disclosure
requirements imposed in 1996. Years prior to 1995 do not reflect this
information.
The ratio of net investment income summarizes the income earned divided by
the average net assets of a Portfolio during the reporting period. Don't
confuse this ratio with a Portfolio's yield. The net investment income ratio
is not a true measure of a Portfolio's yield because it doesn't take into
account the dividends distributed to the Portfolio's investors.
The next ratio is the portfolio turnover rate, which measures the buying and
selling activity in a Portfolio. Portfolio turnover is affected by market
conditions, changes in the size of a Portfolio, the nature of the Portfolio's
investments and the investment style of the portfolio manager. A 100% rate
implies that an amount equal to the value of the entire Portfolio is turned
over in a year; a 50% rate means that an amount equal to the value of half
the Portfolio is traded in a year; and a 200% rate means that an amount equal
to the value of the Portfolio is sold every six months.
Year 2000 | Discussion (unaudited)
Preparing for Year 2000 is a high priority for Janus Capital, which has
established a dedicated group to address this issue. Janus Capital has
devoted considerable internal resources and has engaged one of the foremost
experts in the field to help achieve Year 2000 readiness. Janus Capital does
not anticipate that Year 2000-related issues will have a material impact on
its ability to continue to provide the Portfolios with service at current
levels; however, Janus Capital cannot make any assurances that the steps it
has taken to ensure Year 2000 readiness will be successful. In addition,
there can be no assurance that Year 2000 issues will not affect the companies
in which the Portfolios invest or worldwide markets and economies.
70 Janus Aspen Series / June 30, 1999
<PAGE>
[BLANK PAGE]
Janus Aspen Series / June 30, 1999 71
<PAGE>
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