Janus | Aspen Series
1999 ANNUAL REPORT
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
Janus logo goes here
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Table | of Contents
JANUS ASPEN SERIES
Portfolio Managers' Commentaries and Schedules of Investments
Growth Portfolio ........................................ 1
Aggressive Growth Portfolio ............................. 5
Capital Appreciation Portfolio .......................... 8
International Growth Portfolio .......................... 11
Worldwide Growth Portfolio .............................. 16
Balanced Portfolio ...................................... 21
Equity Income Portfolio ................................. 26
Growth and Income Portfolio ............................. 30
Flexible Income Portfolio ............................... 34
High-Yield Portfolio .................................... 39
Money Market Portfolio .................................. 42
Statements of Operations .................................... 44
Statements of Assets & Liabilities .......................... 46
Statements of Changes in Net Assets ......................... 48
Financial Highlights ........................................ 51
Notes to the Schedules of Investments ....................... 60
Notes to Financial Statements ............................... 61
Explanation of Charts, Tables
and Financial Statements .................................. 66
Report of Independent Accountants ........................... 69
Janus logo goes here
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Janus | Aspen Growth Portfolio
[PHOTO]
James Craig
portfolio manager
For the fiscal year ended December 31, 1999, Janus Aspen Growth Portfolio
returned 43.98% for its Institutional Shares and 44.12% for its Retirement
Shares. This compares with a 21.03% return posted by its benchmark, the S&P 500
Index.(1)
While the Fund's substantial gains can be attributed to our success in
identifying stocks that work in any economic environment, I believe these gains
also somewhat reflect an unusual reporting period. For example, consider that at
the start of the year, the markets had only just begun to recover from severe
repercussions of the Russian debt debacle and ensuing worldwide credit crunch
that unfolded in 1998. However, signs of improvement in Japan and other global
economies encouraged investors, and equities gained momentum. Fueling this
recovery was a rapidly expanding U.S. economy and robust corporate earnings that
later carried a number of stocks to record highs.
Despite the absence of inflation, aided in part by ongoing advances in
technology, the economy's torrid growth rate led to a general uneasiness among
investors, convincing them that higher prices could be right around the corner.
The Federal Reserve responded to these concerns by making three quarter-point
interest-rate hikes in an effort to keep inflation at bay. Because these moves
were widely anticipated, they had already been factored into stock prices and
therefore had minimal impact on the market.
Although we're mindful of macroeconomic events, our focus remains on investing
in dynamic, visionary businesses that are contributing to the overall growth of
the economy. By virtue of this strategy, the Portfolio's largest weightings were
in the technology, cable and telecommunications groups.
Simply put, technology stocks were on a tear, responding to the rapid growth of
the Internet. More and more businesses are relying on Internet-related
technologies to increase production and decrease costs, and those on the cutting
edge of development, such as Sun Microsystems and Cisco Systems, continue to
benefit. Sun's intense focus on optimizing computer systems for e-commerce has
enabled it to leapfrog its competition. Meanwhile, Cisco has gained a reputation
as the integrated voice, video and data network enabler of choice. Both stocks
performed well for the Portfolio.
Other standouts included semiconductor companies Texas Instruments, Linear
Technology and Maxim Integrated Products, all of which contributed significantly
to our strong results. Advanced technologies and products developed by all three
are enabling the miniaturization of devices such as computers, camcorders and
wireless phones, while also making it possible to transmit data and voice at
faster speeds.
Within the Portfolio's cable group, solid performers included Comcast
Corporation and Cox Communications. These companies are delivering on their
promise to transmit a variety of new, value-added services through a single
cable platform. Soon, subscribers will be able to shop on the Internet, receive
live feeds from national sporting events and choose from hundreds of channels,
all through their cable connection.
Telecommunications was another area that took off during the period and our
holdings in Nokia and Lucent Technologies, a newer position in the Portfolio,
gained substantially. Wireless handset manufacturer Nokia continued to benefit
from tremendous worldwide subscriber growth, which increased by more than 50% in
1999. Meanwhile, Lucent has become a market leader in optical networking
equipment.
Despite these successes, a few of our holdings proved disappointing. One such
disappointment was Tyco International, a diversified manufacturing company that
suffered from negative press regarding alleged accounting irregularities. While
our in-depth analysis of Tyco shows its accounting practices remain stellar, we
opted to trim this position and redeploy those assets in other, more compelling
opportunities.
Looking ahead, it's unclear whether additional rate hikes may be necessary to
keep a lid on inflation. The mere prospect of further rate increases could lead
to near-term volatility in the markets. Nonetheless, we believe that most stocks
have already discounted this fear and that the high-growth companies we focus on
will continue to perform well.
In closing, I'd like to comment on my recent decision to hand full management
responsibilities of Janus Aspen Growth Portfolio over to Blaine Rollins.
Blaine's track record as portfolio manager of Janus Aspen Balanced and Equity
Income Portfolios says a lot about his stock-picking abilities. Having worked
for many years as assistant portfolio manager of Janus Fund, Blaine has proven
he's more than qualified for this new responsibility. Meanwhile, I'll be serving
as Janus' chief investment officer and director of research, where I can more
directly impact performance for all our shareholders. It's been a pleasure
working on your behalf, and, as always, I thank you for your continued
investment in Janus Aspen Growth Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 89.4% 93.2%
Foreign 9.5% 4.9%
Europe 6.0% 3.6%
Top 10 Equities (% of Assets) 33.0% 36.5%
Number of Stocks 75 70
Cash, Cash Equivalents
& Fixed-Income Securities 10.6% 6.8%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / December 31, 1999 1
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 43.98%
5 Year 29.89%
From Inception 24.28%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 21.03%
5 Year 28.54%
From Inception Date of Institutional Shares 22.68%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 44.12%
5 Year 29.25%
From Portfolio Inception 23.49%
- --------------------------------------------------------------------------------
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.
Note:Performance of the Retirement Shares is lower from the performance shown on
this graph for the Institutional Shares, based upon the higher fees paid by
shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 43.98%
Five Year, 29.89%
Since 9/13/93,* 24.28%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Growth Portfolio - Institutional Shares and the S&P 500 Index.
Janus Aspen Growth Portfolio - Institutional Shares is represented by a shaded
area of green. The S&P 500 Index is represented by a solid black line. The "y"
axis reflects the value of the investment. The "x" axis reflects the computation
periods from inception, September 13, 1993, through December 31, 1999. The upper
right quadrant reflects the ending value of the hypothetical investment in Janus
Aspen Growth Portfolio - Institutional Shares ($39,330) as compared to the S&P
500 Index ($36,243).
Janus Aspen Growth Portfolio
- - Institutional Shares - $39,330
S&P 500 Index - $36,243
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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
Shares or Principal Amount Market Value
================================================================================
Common Stock - 89.4%
Audio and Video Products - 0.4%
168,800 Gemstar International Group, Ltd.* ........... $ 12,027,000
Automotive - Truck Parts and Equipment - 0.1%
78,830 Federal-Mogul Corp. .......................... 1,586,454
Brewery - 0.4%
170,900 Anheuser-Busch Companies, Inc. ............... 12,112,537
Broadcast Services and Programming - 3.5%
1,226,305 AT&T Corp./Liberty Media Group - Class A* .... 69,592,809
403,980 Clear Channel Communications, Inc.* .......... 36,055,215
105,648,024
Cable Television - 8.5%
276,640 Adelphia Communications Corp. - Class A* ..... 18,154,500
273,475 Charter Communications, Inc. - Class A* ...... 5,982,266
2,865,755 Comcast Corp. - Special Class A .............. 144,004,189
1,205,743 Cox Communications, Inc. - Class A* .......... 62,095,765
4,429,099 Telewest Communications PLC*,** .............. 23,596,002
253,832,722
Cellular Telecommunications - 5.1%
467,545 Nextel Communications, Inc. - Class A* ....... 48,215,578
910 NTT Mobile Communications
Network, Inc.** ............................ 35,000,000
80,265 Omnipoint Corp.* ............................. 9,681,966
136,190 Sprint Corp./PCS Group* ...................... 13,959,475
270,590 VoiceStream Wireless Corp.* .................. 38,508,339
100,000 WinStar Communications, Inc.* ................ 7,487,500
152,852,858
Circuits - 4.0%
781,400 Linear Technology Corp. ...................... $ 55,918,937
1,383,400 Maxim Integrated Products, Inc.* ............. 65,279,187
121,198,124
Commercial Banks - 0.3%
19,475 M&T Bank Corp. ............................... 8,067,519
Commercial Services - 1.0%
753,775 Paychex, Inc. ................................ 30,151,000
Computer Software - 1.9%
475,960 Microsoft Corp.* ............................. 55,568,330
Computers - Memory Devices - 1.0%
287,555 EMC Corp.* ................................... 31,415,384
Computers - Micro - 5.3%
214,855 Apple Computer, Inc.* ........................ 22,089,780
594,435 Dell Computer Corp.* ......................... 30,316,185
1,365,810 Sun Microsystems, Inc.* ...................... 105,764,912
158,170,877
Cosmetics and Toiletries - 0.4%
182,845 Colgate-Palmolive Co. ........................ 11,884,925
Cruise Lines - 0.7%
199,355 Carnival Corp. ............................... 9,531,661
226,520 Royal Caribbean Cruises, Ltd. ................ 11,170,268
20,701,929
Data Processing and Management - 1.2%
688,715 Automatic Data Processing, Inc. .............. 37,104,521
Distribution and Wholesale - 0.8%
271,685 Costco Wholesale Corp.* ...................... 24,791,256
See Notes to Schedules of Investments.
2 Janus Aspen Series / December 31, 1999
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Janus | Aspen Growth Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Diversified Financial Services - 0.7%
405,000 Citigroup, Inc. .............................. $ 22,502,813
Diversified Operations - 5.5%
618,785 General Electric Co. ......................... 95,756,979
1,799,658 Tyco International, Ltd. ..................... 69,961,705
165,718,684
Electronic Components - Semiconductors - 2.7%
110,710 Conexant Systems, Inc.* ...................... 7,348,376
746,925 Texas Instruments, Inc. ...................... 72,358,359
79,706,735
Electronic Safety Devices - 0.2%
141,350 Pittway Corp. - Class A ...................... 6,334,247
Enterprise Software and Services - 0.8%
133,530 BEA Systems, Inc.* ........................... 9,338,754
79,075 i2 Technologies, Inc.* ....................... 15,419,625
24,758,379
Finance - Credit Card - 2.1%
374,215 American Express Co. ......................... 62,213,244
Finance - Investment Bankers/Brokers - 1.4%
1,096,740 Charles Schwab Corp. ......................... 42,087,398
Food - Wholesale - 0.1%
197,450 U.S. Foodservice* ............................ 3,307,287
Identification Systems and Devices - 0.4%
177,000 Symbol Technologies, Inc. .................... 11,250,562
Instruments - Scientific - 1.4%
975,570 Dionex Corp.* ................................ 40,181,289
17,495 PE Corp./PE Biosystems Group ................. 2,104,867
42,286,156
Internet Content - 0.4%
53,850 Network Solutions, Inc.* ..................... 11,715,741
Internet Software - 1.3%
499,190 America Online, Inc.* ........................ 37,657,646
Life and Health Insurance - 2.4%
2,273,077 Prudential PLC** ............................. 44,791,982
1,084,560 StanCorp Financial Group, Inc. ............... 27,317,355
72,109,337
Medical - Biomedical and Genetic - 1.5%
342,800 Genentech, Inc.* ............................. 46,106,600
Medical - Drugs - 0.7%
505,815 Schering-Plough Corp. ........................ 21,339,070
Medical Instruments - 0.3%
277,270 Medtronic, Inc. .............................. 10,103,026
Money Center Banks - 2.4%
1,821,560 Bank of New York Company, Inc. ............... 72,862,400
Multi-Line Insurance - 1.3%
358,541 American International Group, Inc. ........... 38,767,246
Multimedia - 6.4%
1,759,461 Time Warner, Inc. ............................ 127,450,956
1,060,400 Viacom, Inc. - Class B* ...................... 64,087,925
191,538,881
Networking Products - 3.9%
1,094,409 Cisco Systems, Inc.* ......................... $ 117,238,564
Office Automation and Equipment - 0.4%
235,775 Pitney Bowes, Inc. ........................... 11,390,880
Optical Supplies - 0.5%
321,435 Allergan, Inc. ............................... 15,991,391
Pipelines - 2.4%
1,630,690 Enron Corp. .................................. 72,361,869
Property and Casualty Insurance - 0.2%
99,795 Progressive Corp. ............................ 7,297,509
Publishing - Newspapers - 0.3%
177,035 New York Times Co. - Class A ................. 8,696,844
Radio - 0.9%
24,565 Hispanic Broadcasting Corp. .................. 2,265,354
701,765 Infinity Broadcasting Corp. - Class A* ....... 25,395,121
27,660,475
Retail - Building Products - 1.2%
522,435 Home Depot, Inc. ............................. 35,819,450
Retail - Discount - 0.4%
161,320 Wal-Mart Stores, Inc. ........................ 11,151,245
Retail - Office Supplies - 0.7%
1,005,320 Staples, Inc.* ............................... 20,860,390
Retail - Restaurants - 2.5%
1,876,175 McDonald's Corp. ............................. 75,633,305
Super-Regional Banks - 0.4%
215,610 Northern Trust Corp. ......................... 11,427,330
Telecommunication Equipment - 6.0%
1,114,195 Lucent Technologies, Inc. .................... 83,355,713
69,003 Nokia Oyj .................................... 12,495,063
447,273 Nokia Oyj (ADR) .............................. 84,981,870
180,832,646
Telecommunication Services - 1.1%
125,000 Adelphia Business Solutions, Inc.* ........... 6,000,000
204,906 NTL, Inc.* ................................... 25,562,024
31,562,024
Telephone - Integrated - 0.5%
621,401 Telefonica S.A.* ............................. 15,503,209
Television - 1.4%
410,385 Univision Communications, Inc. - Class A* .... 41,936,217
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,782,207,611) ..................... 2,684,842,260
- --------------------------------------------------------------------------------
Corporate Bonds - 0.9%
Retail - Internet - 0.4%
$ 11,509,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09+ ................................ 13,019,556
Telecommunication Services - 0.5%
14,000,000 NTL, Inc., 5.75%
convertible subordinated notes
due 12/15/09+ .............................. 15,050,000
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $26,651,735) ..................... 28,069,556
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 3
<PAGE>
Janus | Aspen Growth Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Repurchase Agreement - 7.3%
$217,600,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $217,682,507 collateralized
by $56,882,283 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $238,537,679
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$41,215,960 and $180,736,040
(cost $217,600,000) ........................ $ 217,600,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 2.5%
Fannie Mae:
50,000,000 5.625%, 1/21/00 ............................ 49,848,333
25,000,000 5.60%, 5/3/00 .............................. 24,512,222
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $74,370,000) ............ 74,360,555
- --------------------------------------------------------------------------------
Total Investments (total cost $2,100,829,346) - 100.1% ....... 3,004,872,371
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.1%) (2,889,168)
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $3,001,983,203
- --------------------------------------------------------------------------------
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 2.3% $ 69,961,705
Finland 3.2% 97,476,933
Spain 0.5% 15,503,209
United Kingdom 2.3% 68,387,984
Japan 1.2% 35,000,000
United States++ 90.5% 2,718,542,540
- --------------------------------------------------------------------------------
Total 100.0% $3,004,872,371
++Includes Short-Term Securities (80.8% excluding Short-Term Securities)
Forward Currency Contracts, Open at December 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 18,000,000 $ 29,115,000 $ 149,424
British Pound 4/20/00 1,200,000 1,941,000 7,512
Japanese Yen 3/16/00 45,000,000 445,799 3,316
- --------------------------------------------------------------------------------
Total $ 31,501,799 $ 160,252
See Notes to Schedules of Investments.
4 Janus Aspen Series / December 31, 1999
<PAGE>
Janus | Aspen Aggressive Growth Portfolio
[PHOTO]
James Goff
portfolio manager
I'm pleased to report that for the fiscal year ended December 31, 1999, Janus
Aspen Aggressive Growth Portfolio gained 125.40% for its Institutional Shares
and 124.34% for its Retirement Shares, our best performance ever. These returns
outpaced our benchmark index, the S&P MidCap 400, which appreciated 14.72%.(1)
The Portfolio also earned a top-decile ranking, placing 3rd out of 71 midcap
portfolios tracked by Lipper, Inc., a leading mutual fund rating company.(2)
This strong performance can be attributed to a couple of factors. First, I can't
talk about these results without also mentioning our outstanding group of
research analysts. The idea generation and execution on the part of these
talented individuals was nothing short of tremendous. Without a doubt, our
investors have them to thank for the very gratifying success we've shared.
Second, after a sustained period of large-company dominance, small- and mid-cap
stocks advanced vigorously, fueled primarily by a U.S. economy that continued to
steam ahead despite three interest-rate hikes intended to slow growth and head
off inflation.
Even though the equity market produced record-breaking gains, success was not
easy to come by. While the market broadened, it was narrow in terms of the
industries it favored. Against this backdrop, our investments in technology,
specifically in fiber-optics, data storage and management, and wireless
telecommunications, paid off handsomely. But no matter what the industry, our
focus, as always, is on companies with rapid growth (in excess of 20%), few
competitors and high barriers to entry.
That said, innovations in technology continue to produce fertile fields of
growth by creating many exciting investment opportunities. A good example is
photonics, which utilizes a new technology called Dense Wave Division
Multiplexing (DWDM) that allows increased data, video and voice information to
be carried over existing fiber-optic lines. Essentially, DWDM can create up to
100 channels, where before there was only one, by enabling data traffic to be
sent over different wavelengths of light. As the amount of data being produced
and transmitted grows every day, many businesses will need to invest in
photonics equipment to expand the capacity of their current networks. As such,
SDL and E-Tek Dynamics, two newer holdings that specialize in photonics, stand
to benefit. In fact, these companies have already made significant contributions
to the Portfolio.
The Internet is driving much of the growth in data traffic today. Exodus
Communications, VeriSign and VERITAS Software have clearly been beneficiaries of
that growth, all posting triple-digit returns. Hands down our best stock this
year, Exodus has nationwide data centers that allow companies to economically
and reliably maintain their corporate Web sites. A different spin on security,
VeriSign, the leader in electronic encryption services, makes products that
safeguard online activities such as e-mail, home banking and credit card
purchases. Moreover, the company recently announced plans to apply these
technologies to the wireless world, increasing its appeal. VERITAS, another play
on data security, markets storage solutions that help clients manage and protect
their network data. Individually and as a group, these holdings spurred the
Portfolio higher and are poised to do so in the future.
Wireless communications is another area with unlimited potential. Research shows
that cellular usage in the U.S. is rapidly accelerating, with further growth on
the horizon. Not only that, the industry is benefiting from the emergence of
wireless data networks, which will let users access the Internet from anywhere.
Capitalizing on this powerful trend, we substantially increased our holdings in
this group, adding Western Wireless, VoiceStream Wireless and Omnipoint, among
others. All of these companies significantly boosted performance, and we're
extremely confident about their prospects going forward.
While our disappointments were few, long-time holding Apollo Group proved a drag
on performance. Despite record earnings, Apollo, which operates the University
of Phoenix, fell after Wall Street downgraded the stock based on a traditionally
weak upcoming quarter. Although we remain optimistic about Apollo given the
increasing demand for adult education programs, we elected to trim the position.
CheckFree Holdings, a specialist in electronic bill payment, also declined when
several customers formed a joint venture to provide the same service. Therefore,
we sold CheckFree at a loss, redeploying our assets in other areas.
Looking ahead, we expect the market to remain volatile amid the threat of rising
interest rates. However, as we've said in the past, we don't have a crystal ball
and can't predict where the market is heading. Rather than spend time worrying
about factors that are outside our control, we'll keep our eye firmly on the
ball. By uncovering an information edge, we gain significant advantage,
bolstering our confidence in each and every company in the Portfolio.
Thank you for investing in Janus Aspen Aggressive Growth Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 97.8% 95.6%
Foreign 3.9% 9.7%
Number of Stocks 70 50
Top 10 Equities (% of Assets) 31.9% 47.4%
Cash & Cash Equivalents 2.2% 4.4%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a midcap portfolio as "a portfolio that by prospectus
or portfolio practice invests primarily in companies with market
capitalizations less than $5 billion at the time of purchase." As of
December 31, 1999, Janus Aspen Aggressive Growth Portfolio ranked 1/21 for
the 5-year period. The ranking is for Institutional Shares and based on
total return, including reinvestment of dividends and capital gains for the
stated period.
Past performance does not guarantee future results.
Janus Aspen Series / December 31, 1999 5
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 125.40%
5 Year 36.23%
From Inception 34.42%
- --------------------------------------------------------------------------------
S&P MidCap 400 Index
1 Year 14.72%
5 Year 23.05%
From Inception Date of Institutional Shares 18.08%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 124.34%
5 Year 35.47%
From Portfolio Inception 33.53%
- --------------------------------------------------------------------------------
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.
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 125.40%
Five Year, 36.23%
Since 9/13/93,* 34.42%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Aggressive Growth Portfolio - Institutional Shares and the S&P
MidCap 400 Index. Janus Aspen Aggressive Growth Portfolio - Institutional Shares
is represented by a shaded area of green. The S&P MidCap 400 Index is
represented by a solid black line. The "y" axis reflects the value of the
investment. The "x" axis reflects the computation periods from inception,
September 13, 1993, through December 31, 1999. The upper and lower right
quadrants reflect the ending value of the hypothetical investment in Janus Aspen
Aggressive Growth Portfolio - Institutional Shares ($64,435) as compared to the
S&P MidCap 400 Index ($28,492).
Janus Aspen Aggressive Growth Portfolio
- - Institutional Shares - $64,435
S&P MidCap 400 Index - $28,492
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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
Shares or Principal Amount Market Value
================================================================================
Common Stock - 97.8%
Advertising Sales - 1.4%
761,060 Lamar Advertising Co.* ....................... $ 46,091,696
Advertising Services - 2.6%
626,315 TMP Worldwide, Inc.* ......................... 88,936,730
Audio and Video Products - 2.4%
1,137,500 Gemstar International Group, Ltd.* ........... 81,046,875
Broadcast Services and Programming - 0.9%
327,111 Clear Channel Communications, Inc.* .......... 29,194,657
Cellular Telecommunications - 12.0%
2,793,130 Crown Castle International Corp.* ............ 89,729,301
469,355 Omnipoint Corp.* ............................. 56,615,946
366,570 Powertel, Inc.* .............................. 36,794,464
694,870 Rogers Cantel Mobile Communications, Inc. ....
- Class B* ................................. 25,275,896
405,125 United States Cellular Corp.* ................ 40,892,304
396,270 VoiceStream Wireless Corp.* .................. 56,394,174
1,469,990 Western Wireless Corp. - Class A* ............ 98,121,832
403,823,917
Circuits - 2.7%
1,761,985 Vitesse Semiconductor Corp.* ................. 92,394,088
Commercial Services - 3.5%
2,939,992 Paychex, Inc. ................................ 117,599,680
Computer Data Security - 3.9%
685,175 VeriSign, Inc.* .............................. 130,825,602
Computer Services - 0.9%
186,655 Safeguard Scientifics, Inc.* ................. 30,249,776
Computer Software - 0.5%
46,905 VA Linux Systems, Inc.* ...................... $ 9,691,746
23,540 Vitria Technology, Inc.* ..................... 5,508,360
15,200,106
Computers - Integrated Systems - 0.6%
109,685 Brocade Communications Systems, Inc.* ........ 19,414,245
Computers - Memory Devices - 2.6%
70,050 Silicon Storage Technology, Inc.* ............ 2,889,562
599,830 VERITAS Software Corp.* ...................... 85,850,669
88,740,231
Electronic Components - Semiconductors - 8.0%
250,540 Atmel Corp.* ................................. 7,406,589
604,575 SDL, Inc.* ................................... 131,797,350
584,995 TriQuint Semiconductor, Inc.* ................ 65,080,694
1,425,800 Xilinx, Inc.* ................................ 64,829,344
269,113,977
Fiber Optics - 5.7%
646,470 E-Tek Dynamics, Inc.* ........................ 87,031,024
2,177,895 Metromedia Fiber Network, Inc. - Class A* .... 104,402,842
191,433,866
Internet Content - 4.9%
375,425 DoubleClick, Inc.* ........................... 95,005,989
45,020 InfoSpace.com, Inc.* ......................... 9,634,280
65,435 Internet Capital Group, Inc.* ................ 11,123,950
230,840 Network Solutions, Inc.* ..................... 50,222,127
165,986,346
See Notes to Schedules of Investments.
6 Janus Aspen Series / December 31, 1999
<PAGE>
Janus | Aspen Aggressive Growth Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Internet Software - 9.7%
125,475 Clarent Corp.* ............................... $ 9,755,681
318,150 EarthLink Network, Inc.* ..................... 13,521,375
1,188,450 Exodus Communications, Inc.* ................. 105,549,216
216,145 Liberate Technologies, Inc.* ................. 55,549,265
139,265 Phone.com, Inc.* ............................. 16,146,036
70,050 Portal Software, Inc.* ....................... 7,206,394
1,039,455 PSINet, Inc.* ................................ 64,186,346
298,115 Software.com, Inc.* .......................... 28,619,040
166,105 Vignette Corp.* .............................. 27,075,115
327,608,468
Medical - Drugs - 4.7%
560,730 King Pharmaceuticals, Inc.* .................. 31,435,926
433,645 MedImmune, Inc.* ............................. 71,930,864
569,615 Sepracor, Inc.* .............................. 56,498,688
159,865,478
Medical Information Systems - 0.7%
659,965 Healtheon/WebMD Corp.* ....................... 24,748,687
Medical Products - 0.7%
343,610 MiniMed, Inc.* ............................... 25,169,432
Music/Clubs - 1.6%
1,449,22 SFX Entertainment, Inc.* ..................... 52,443,721
Radio - 7.5%
596,495 AMFM, Inc.* .................................. 46,675,734
560,170 Citadel Communications Corp.* ................ 36,341,029
97,240 Cox Radio, Inc. - Class A* ................... 9,699,690
757,720 Entercom Communications Corp.* ............... 50,009,520
933,155 Hispanic Broadcasting Corp.* ................. 86,054,388
245,665 Radio One, Inc.* ............................. 22,601,180
251,381,541
Resorts and Theme Parks - 1.0%
1,132,050 Premier Parks, Inc.* ......................... 32,687,944
Retail - Internet - 2.3%
298,680 Amazon.com, Inc.* ............................ 22,737,015
419,475 eBay, Inc.* .................................. 52,513,027
9,870 FreeMarkets, Inc.* ........................... 3,368,754
78,618,796
Retail - Restaurants - 0.1%
152,488 PizzaExpress PLC ............................. 1,804,137
Schools - 1.7%
2,844,096 Apollo Group, Inc. - Class A* ................ 57,059,676
69,705 Edison Schools, Inc.* ........................ 1,097,854
58,157,530
Telecommunication Services - 10.9%
1,194,435 AT&T Canada, Inc.* ........................... 48,076,009
1,130,580 Clearnet Communications, Inc. - Class A* ..... 38,863,687
658,445 Level 3 Communications, Inc.* ................ 53,910,184
1,832,930 McLeodUSA, Inc. - Class A* ................... 107,913,754
555,387 Microcell Telecommunications, Inc.* .......... 18,258,348
502,595 Net2Phone, Inc.* ............................. 23,087,958
607,251 NTL, Inc.* ................................... 75,754,562
365,864,502
Telephone - Integrated - 1.8%
741,355 NEXTLINK Communications, Inc. - Class A* ..... 61,578,800
Television - 0.9%
289,438 Univision Communications, Inc. - Class A* .... $ 29,576,946
Wire and Cable Products - 0.0%
12,000 Furukawa Electric Co., Ltd. .................. 182,032
Wireless Equipment - 1.6%
685,760 American Tower Corp.* ........................ 20,958,540
487,590 RF Micro Devices, Inc.* ...................... 33,369,441
54,327,981
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,898,140,287) ..................... 3,294,067,787
- --------------------------------------------------------------------------------
Repurchase Agreement - 2.4%
$ 79,800,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $79,830,258 collateralized
by $20,860,323 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $87,478,432
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$15,115,044 and $66,280,956
(cost $79,800,000) ......................... 79,800,000
- --------------------------------------------------------------------------------
Total Investments (total cost $1,977,940,287) - 100.2% ....... 3,373,867,787
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.2%) (6,320,798)
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $3,367,546,989
- --------------------------------------------------------------------------------
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Canada 3.9% $ 130,473,940
Japan -- 182,032
United Kingdom -- 1,804,137
United States++ 96.1% 3,241,407,678
- --------------------------------------------------------------------------------
Total 100.0% $3,373,867,787
++Includes Short-Term Securities (93.7% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 7
<PAGE>
Janus | Aspen Capital Appreciation Portfolio
[PHOTO]
Scott Schoelzel
portfolio manager
First and foremost I would like to thank each of you for your continued support
and confidence. Janus Aspen Capital Appreciation Portfolio had another strong
year, gaining 67.00% for its Institutional Shares and 66.16% for its Retirement
Shares. This compares with a 21.03% return posted by the S&P 500 Index.(1) These
strong results earned the Portfolio a top-decile ranking, placing it 11th out of
182 growth portfolios tracked by Lipper, Inc., a leading mutual fund rating
company.(2)
In last year's letter, I suggested that investors begin to reset their
expectations with respect to the types of returns they should expect from the
stock market. This is where we will begin this year's letter. Annual gains of
50%, 60% or 70% are complete aberrations. While no one is more enthusiastic than
I am about prospects for the "new economy" and the profound effects it will have
on the way we live, learn and work, let's get real. The returns we've enjoyed
these past few years just aren't sustainable. To put things in perspective, the
historical annual average return for the market is about 11%. But a compounded
annual return of 15% will double your investment in just five years. Naturally,
we'll work hard to do better, but I think it's important to realistically set,
or reset, your expectations going forward.
As we embarked on the 1999 chapter of our investment journey, I must admit to
being a little wary. My concern was well-founded early on. In the second
quarter, our performance came under intense pressure as investors began to
rethink some of the fundamental assumptions supporting many of the themes in the
Portfolio. However, during this tumultuous period, our analysts distinguished
themselves through their intensive hands-on research. They convinced me the sky
was indeed not falling and to summon my courage to hang in there. I did just
that with our position in Microsoft. In fact when the weight of the antitrust
trial against Microsoft and slower-than-expected release of its new server-based
operating system Windows 2000 hampered the stock, I actually added to the
position. Our research and persistence paid off, as Microsoft recovered and
ended the year with an impressive 68% gain.
Several other cornerstone holdings finished the period strongly as well. Texas
Instruments, Cisco Systems, Nokia, and Time Warner possess dominant franchises
and market positions in industries that are poised to enjoy vigorous growth for
years to come. Nokia's 220% year-end return placed it at the head of this pack.
Having caught the Web wave, this company now offers Internet-enabled phones. And
while it continues to hold the title of world leader in the cellular phone
equipment industry, it should solidify its leadership position as wireless
subscriber growth multiplies.
Long-time holdings Wal-Mart and Home Depot also produced strong gains. These two
retailing giants continue to execute masterfully on their business models, and
their prominent market share has enabled them to gain substantial purchasing
power. Adding to our excitement for Wal-Mart is its commitment to further
develop and improve its Web strategy. Meanwhile, our enthusiasm about Home
Depot's Expo chain, which offers remodeling alternatives, proved to be
well-founded.
During the period we also initiated several new positions in the Portfolio,
including Apple Computer and Sprint PCS, which have proven to be wonderful
investments. Apple's consumer brand is one of the most prominent in any
industry. The company enjoys a cult-like following that most consumer products
companies could only hope to possess. Meanwhile, Sprint PCS with its all-digital
wireless network is keenly poised to benefit from the explosion of wireless data
and Internet services.
We had a few disappointments with our pharmaceutical holdings. I sold Eli Lilly
and Warner Lambert when their pipelines began to show signs of maturing. And
although Pfizer's research capabilities and marketing muscle continue to impress
us, its stock was bruised by concerns that several pipeline drugs, including
antibiotic Trovan, might not live up to expectations. We consequently trimmed
the position.
In closing I'd again like to thank you for your continued confidence in Janus
Aspen Capital Appreciation Portfolio. The road ahead is filled with tremendous
opportunity, and, together with our outstanding analytical staff, I'm confident
we will navigate our investment journey successfully.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 79.1% 89.7%
Foreign 7.4% 5.9%
Europe 4.8% 5.9%
Top 10 Equities (% of Assets) 44.3% 57.5%
Number of Stocks 29 23
Cash & Cash Equivalents 20.9% 10.3%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a growth portfolio as "a portfolio that normally
invests in companies with long-term earnings expected to grow significantly
faster than the earnings of the stocks represented in the major unmanaged
stock indices." The ranking is for Institutional Shares and based on total
return, including reinvestment of dividends and capital gains for the
stated period.
Past performance does not guarantee future results.
8 Janus Aspen Series / December 31, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/97)
1 Year 67.00%
From Inception 57.18%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 21.03%
From Portfolio Inception 27.40%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 66.16%
From Inception 56.43%
- --------------------------------------------------------------------------------
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 67.00%
Since 5/1/97,* 57.18%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Capital Appreciation Portfolio - Institutional Shares and the S&P
500 Index. Janus Aspen Capital Appreciation Portfolio - Institutional Shares is
represented by a shaded area of green. The S&P 500 Index is represented by a
solid black line. The "y" axis reflects the value of the investment. The "x"
axis reflects the computation periods from inception, May 1, 1997, through
December 31, 1999. The upper and lower right quadrants reflect the ending value
of the hypothetical investment in Janus Aspen Capital Appreciation Portfolio -
Institutional Shares ($33,428) as compared to the S&P 500 Index ($19,075).
Janus Aspen Capital Appreciation Portfolio
- - Institutional Shares - $33,428
S&P 500 Index - $19,075
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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. Concentrating may lead to greater price volatility. 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.
Concentrating may lead to greater price volatility. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
================================================================================
Common Stock - 79.1%
Cable Television - 0.8%
107,280 Comcast Corp. - Special Class A .............. $ 5,390,820
Cellular Telecommunications - 6.4%
159,485 Sprint Corp./PCS Group* ...................... 16,347,212
339,255 WinStar Communications, Inc.* ................ 25,401,718
41,748,930
Computer Data Security - 6.0%
205,150 VeriSign, Inc.* .............................. 39,170,828
Computer Software - 3.1%
173,540 Microsoft Corp.* ............................. 20,260,795
Computers - Memory Devices - 3.3%
194,950 EMC Corp.* ................................... 21,298,287
Computers - Micro - 4.6%
287,740 Apple Computer, Inc.* ........................ 29,583,269
Distribution and Wholesale - 0.9%
61,035 Costco Wholesale Corp.* ...................... 5,569,444
Diversified Financial Services - 6.7%
409,365 Citigroup, Inc. .............................. 22,745,343
148,065 Morgan Stanley Dean Witter and Co. ........... 21,136,279
43,881,622
Diversified Operations - 2.9%
121,115 General Electric Co. ......................... 18,742,546
Electronic Components - Semiconductors - 3.3%
219,590 Texas Instruments, Inc. ...................... 21,272,781
Fiber Optics - 1.2%
163,815 Metromedia Fiber Network, Inc. - Class A* .... $ 7,852,882
Internet Content - 4.9%
126,345 DoubleClick, Inc.* ........................... 31,973,182
Internet Software - 4.0%
41,820 Commerce One, Inc.* .......................... 8,217,630
124,510 Inktomi Corp.* ............................... 11,050,263
55,170 Phone.com, Inc.* ............................. 6,396,272
25,664,165
Medical - Drugs - 2.4%
55,190 MedImmune, Inc.* ............................. 9,154,641
203,412 Pfizer, Inc. ................................. 6,598,177
15,752,818
Multimedia - 2.6%
232,220 Time Warner, Inc. ............................ 16,821,436
Networking Products - 3.8%
230,719 Cisco Systems, Inc.* ......................... 24,715,773
Optical Supplies - 1.8%
240,650 Allergan, Inc. ............................... 11,972,337
Retail - Building Products - 1.8%
168,465 Home Depot, Inc. ............................. 11,550,382
Retail - Discount - 3.7%
351,870 Wal-Mart Stores, Inc. ........................ 24,323,014
Satellite Telecommunications - 5.8%
384,520 EchoStar Communications Corp.* ............... 37,490,700
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 9
<PAGE>
Janus | Aspen Capital Appreciation Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Telecommunication Equipment - 4.8%
164,760 Nokia Oyj (ADR) .............................. $ 31,304,400
Telecommunication Services - 0.6%
49,925 Level 3 Communications, Inc.* ................ 4,087,609
Telephone - Integrated - 3.7%
84,230 NEXTLINK Communications, Inc. - Class A* ..... 6,996,354
150,000 Telefonos de Mexico S.A. (ADR) ............... 16,875,000
23,871,354
- --------------------------------------------------------------------------------
Total Common Stock (cost $324,130,698) ....................... 514,299,374
- --------------------------------------------------------------------------------
Repurchase Agreement - 20.7%
$134,400,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $134,450,960 collateralized
by $35,133,175 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $147,332,096
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$25,456,916 and $111,631,084
(cost $134,400,000) ........................ 134,400,000
- --------------------------------------------------------------------------------
Total Investments (cost $458,530,698) - 99.8% ................ 648,699,374
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.2% 1,441,111
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 650,140,485
- --------------------------------------------------------------------------------
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Finland 4.8% $ 31,304,400
Mexico 2.6% 16,875,000
United States++ 92.6% 600,519,974
- --------------------------------------------------------------------------------
Total 100.0% $ 648,699,374
++Includes Short-Term Securities (71.9% excluding Short-Term Securities)
See Notes to Schedules of Investments.
10 Janus Aspen Series / December 31, 1999
<PAGE>
Janus | Aspen International Growth Portfolio
[PHOTO]
Helen Young Hayes
portfolio manager
[PHOTO]
Laurence Chang
portfolio manager
For the 12 months ended December 31, 1999, Janus Aspen International Growth
Portfolio outperformed its benchmark, the Morgan Stanley Capital International
EAFE Index. The Portfolio returned 82.27% for its Institutional Shares and
81.32% for its Retirement Shares. This compares with a 26.96% gain posted by the
Index.(1) These results earned the Portfolio a top-decile ranking, placing it
9th out of 126 international portfolios tracked by Lipper, Inc., a leading
mutual fund rating company.(2)
The current global economic environment is in some respects the inverse of one
year ago. At the beginning of the period, the ongoing recession in Japan and
effects from the economic implosion in Asian emerging markets sparked fears of a
global deflation. Today, however, inflation is the primary concern, and Japan,
as well as several Asian emerging markets, is on the road to economic recovery.
Meanwhile, European activity is accelerating and U.S. growth remains robust,
fueling concerns that inflation and interest rates will trend higher.
Against this backdrop, we continued to focus on great individual international
companies that can create shareholder value regardless of short-term
fluctuations in the economy. Many of these businesses are in the converging
world of technology and telecommunications, where the ever-increasing demand for
data-delivery technologies such as wireless and the Internet, is creating
numerous investment opportunities.
Among the Portfolio's strongest performers was Softbank, the Japanese firm
responsible for funding Internet companies such as Yahoo! and E-Trade as well as
bringing these and other e-businesses into Japan. Our cable holdings also
performed well, aided by richer Internet content and a subsequent increase in
demand for broadband connectivity. Dutch-based United Pan-Europe Communications,
Rogers Communications in Canada, and NTL and Telewest Communications in the UK
were all leaders, and their high-capacity networks continue to position them for
future growth.
Other companies that contributed to our positive results included several
technological enablers of the Internet, such as the Canadian/U.S. firm JDS
Uniphase and Canadian telecom equipment giant Nortel Networks. Both lead the
"photonics" revolution, an emerging technology that increases network capacity
by breaking down a fiber-optic strand into dozens of different channels.
The ultimate Internet enabler, however, is silicon. We have consequently
invested in semiconductor leaders Philips Electronics in the Netherlands,
STMicroelectronics in France and Galileo Technology in Israel. We also benefited
from companies that enable semiconductor manufacturers to enhance the
performance of their chips, such as Dutch technology company ASM Lithography.
Further down the silicon foodchain, Taiwan Semiconductor Manufacturing Company
and Singapore-based Chartered Semiconductor Manufacturing, two of the world's
leading outsourcers of semiconductor fabrication, also helped our performance,
and we expect both to continue to outpace overall industry growth.
The "mobilization" of the Internet is also creating new opportunities. For
example, Japanese cellular provider NTT DoCoMo has emerged as the mobile data
pioneer and appreciated nicely during the period. We were also pleased with the
returns posted by our positions in leading-edge wireless operators China
Telecom, Finland's Sonera, SK Telecom in Korea, the U.K.'s Vodafone AirTouch,
and Germany's Mannesmann. In particular, Vodafone and Mannesmann performed well,
boosted by Vodafone's announcement that it intends to acquire Mannesmann,
creating a wireless telecom powerhouse unequaled in the U.K.
As cellular companies upgrade their networks to accommodate accelerating
subscriber growth and new data applications, leading telecom equipment firms
like Nokia in Finland and Sweden's Ericsson continue to benefit. Nokia, one of
the largest positions in the Portfolio, is extending its market share in both
its network infrastructure and cellular handset businesses. Adding to our
enthusiasm for Nokia is our belief that advanced mobile applications, such as
wireless LANs and high-speed Internet access, will further increase market
opportunities.
Not all of our investments contributed to our positive results. We liquidated
Wolters Kluwer, a Dutch publisher and long-time holding, when rising expenses
from the company's endeavors to adapt to the Internet signaled a change in its
fundamentals. We were also disappointed by the performance of Tyco
International, a diversified manufacturing company that suffered from reports of
accounting irregularities. Although our analysis reveals its business remains
sound, we believe investor perceptions will keep a lid on the stock price, and
thus we trimmed the position.
Going forward, in evaluating potential investments for the Portfolio, we will
continue to focus on the fundamentals of individual companies and carefully
monitor valuation levels. Given the opportunities in technology,
telecommunications and cable - as well as other dynamic areas of the global
economy, such as business services and healthcare - we are confident in our
ability to deliver compelling investment returns over the long term.
Thank you for your continued investment in Janus Aspen International Growth
Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 90.3% 91.0%
Foreign 82.0% 89.3%
Number of Stocks 123 146
Top 10 Equities (% of Assets) 31.8% 26.4%
Cash & Cash Equivalents 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.
(2) Lipper, Inc. defines an international portfolio as one that "invests its
assets in securities with primary trading markets outside of the United
States." As of December 31, 1999, Janus Aspen International Growth
Portfolio ranked 1/53 for the 5-year period. This ranking is for
Institutional Shares and based on total return, including reinvestment of
dividends and capital gains for the stated period.
Past performance does not guarantee future results.
Janus Aspen Series / December 31, 1999 11
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/2/94)
1 Year 82.27%
5 Year 33.25%
From Inception 28.19%
- --------------------------------------------------------------------------------
Morgan Stanley Capital International EAFE Index(2)
1 Year 26.96%
5 Year 12.83%
From Inception Date of Institutional Shares 11.22%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 81.32%
5 Year 32.06%
From Portfolio Inception 27.11%
- --------------------------------------------------------------------------------
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.
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 82.27%
Five Year, 33.25%
Since 5/2/94,* 28.19%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen International Growth Portfolio - Institutional Shares and the
Morgan Stanley Capital International EAFE Index. Janus Aspen International
Growth Portfolio - Institutional Shares is represented by a shaded area of
green. The Morgan Stanley Capital International EAFE Index is represented by a
solid black line. The "y" axis reflects the value of the investment. The "x"
axis reflects the computation periods from inception, May 2, 1994, through
December 31, 1999. The upper and lower right quadrants reflect the ending value
of the hypothetical investment in Janus Aspen International Growth Portfolio -
Institutional Shares ($40,834) as compared to the Morgan Stanley Capital
International EAFE Index ($18,268).
Janus Aspen International Growth Portfolio
- - Institutional Shares - $40,834
Morgan Stanley Capital
International EAFE Index - $18,268
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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. 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. Foreign investing involves
special risks such as currency fluctuation and political uncertainty. Past
performance does not guarantee future results.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
================================================================================
Common Stock - 87.2%
Apparel Manufactures - 0.6%
2,954 Gucci Group N.V.** ........................... $ 340,262
39,865 Gucci Group N.V. - New York Shares** ......... 4,564,543
4,904,805
Audio and Video Products - 2.5%
68,400 Sony Corp.** ................................. 20,283,030
Brewery - 0.1%
107,000 Kirin Brewery Company, Ltd.** ................ 1,125,710
Broadcast Services and Programming - 1.9%
16,335 EM.TV & Merchandising A.G.** ................. 1,051,712
79,255 Grupo Televisa S.A. (GDR)* ................... 5,409,154
134,390 UnitedGlobalCom, Inc. - Class A* ............. 9,491,294
15,952,160
Cable Television - 3.0%
252,045 Le Groupe Videotron ltee.** .................. 4,266,636
23,075 Rogers Communications, Inc.*,** .............. 571,106
324,696 Rogers Communications, Inc. - Class B*,** .... 7,919,415
786,969 Telewest Communications PLC*,** .............. 4,192,573
65,117 United Pan-Europe Communications N.V.*,** .... 8,319,478
25,269,208
Cellular Telecommunications - 12.7%
234,130 China Telecom, Ltd. (ADR)* ................... $ 30,100,338
1,394 NTT Mobile Communications
Network, Inc.** ............................ 53,615,385
258,425 Partner Communications Company
Ltd. (ADR)* ................................ 6,686,747
410,555 Telecom Italia Mobile S.p.A.** ............... 4,568,396
55,635 Telesp Celular Participacoes S.A. (ADR) ...... 2,357,533
477,684 Vodafone AirTouch PLC** ...................... 2,353,479
87,100 Vodafone AirTouch PLC (ADR)** ................ 4,311,450
103,993,328
Commercial Banks - 0.9%
62,806 Argentaria, Caja Postal y Banco Hipotecario
de Espana, S.A.** .......................... 1,474,056
46,824 Bipop - Carire S.p.A.** ...................... 4,136,285
36 Julius Baer Holding A.G. - Class B** ......... 108,769
275,501 UniCredito Italiano S.p.A.** ................. 1,353,620
7,072,730
Computer Data Security - 1.7%
59,750 Baltimore Technologies PLC** ................. 4,839,886
45,640 Check Point Software Technologies, Ltd.* ..... 9,070,950
13,910,836
See Notes to Schedules of Investments.
12 Janus Aspen Series / December 31, 1999
<PAGE>
Janus | Aspen International Growth Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Computer Services - 3.8%
45,321 Atos S.A.*,** ................................ $ 7,504,596
20,745 Cap Gemini S.A.** ............................ 5,259,106
41,223 CMG PLC** .................................... 3,030,829
119,763 Getronics N.V.** ............................. 9,542,141
5,271 Information Highway A.B.* .................... 873,800
206,760 Logica PLC** ................................. 5,343,340
3,912 WM-Data A.B. - Class B ....................... 241,927
31,795,739
Computer Software - 0.4%
56,067 Tietoenator Oyj** ............................ 3,497,011
Computers - Integrated Systems - 2.3%
26,928 ASM Lithography Holding N.V.*,** ............. 2,987,979
26,664 ASM Lithography Holding N.V. (ADR)*,** ....... 3,033,030
7,733 Equant N.V.*,** .............................. 876,738
15,129 Equant N.V. - New York Shares*,** ............ 1,694,448
102,000 Fujitsu, Ltd.** .............................. 4,651,791
53,066 Psion PLC** .................................. 2,314,229
161,344 SEMA Group PLC** ............................. 2,900,937
18,459,152
Computers - Micro - 1.0%
3,424,000 Legend Holdings, Ltd.** ...................... 8,501,053
Diversified Operations - 2.4%
157,440 Bombardier, Inc. - Class B** ................. 3,225,382
268,113 Hays PLC** ................................... 4,276,455
204,235 Tyco International, Ltd. ..................... 7,939,636
44,297 Vivendi** .................................... 3,995,053
19,436,526
Electronic Components - 2.8%
5,726 Celestica, Inc.** ............................ 319,672
80,730 Celestica, Inc. - New York Shares*,** ........ 4,480,515
63,928 Koninklijke (Royal) Phillips Electronics N.V.** 8,682,062
32,558 Koninklijke (Royal) Phillips Electronics N.V.
- New York Shares** ........................ 4,395,330
225,000 NEC Corp.** .................................. 5,361,861
23,239,440
Electronic Components - Semiconductors - 2.5%
61,920 Chartered Semiconductor Manufacturing,
Ltd. (ADR)*,** ............................. 4,520,160
117,810 Galileo Technology, Ltd.* .................... 2,842,166
4,200 Rohm Company, Ltd.** ......................... 1,726,365
28,279 STMicroelectronics N.V.** .................... 4,346,957
780 STMicroelectronics N.V. - N.Y. Shares** ...... 118,121
157,659 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)* ....................... 7,094,655
20,648,424
Engineering - Research and Development - 0.3%
22,889 ABB, Ltd.*,** ................................ 2,800,021
Fiber Optics - 1.8%
90,712 JDS Uniphase Corp.* .......................... 14,632,980
3,525 Lumenon Innovative Lightwave
Technology, Inc.*,** ....................... 90,769
14,723,749
Food - Catering - 0.6%
372,740 Compass Group PLC** .......................... 5,117,422
Food - Retail - 0.5%
20,310 Carrefour S.A.** ............................. 3,741,074
Human Resources - 0.5%
220,552 Capita Group PLC** ........................... $ 4,007,650
Internet Content - 3.3%
94,621 Melbourne IT, Ltd.* .......................... 529,810
24,900 Softbank Corp.** ............................. 23,832,648
55,355 StarMedia Network, Inc.* ..................... 2,217,660
10,427 Terra Networks S.A.*,** ...................... 569,059
27,149,177
Internet Software - 1.0%
14,835 Internet Initiative Japan, Inc.*,** .......... 1,441,777
22,994 Intershop Communications A.G.*,** ............ 6,476,950
20,101 Nocom A.B. - Class B* ........................ 479,749
8,398,476
Life and Health Insurance - 0.6%
251,726 Prudential PLC** ............................. 4,960,372
Machinery - General Industrial - 3.1%
105,916 Mannesmann A.G.** ............................ 25,785,462
Medical - Drugs - 0.9%
129,000 Takeda Chemical Industries, Ltd.** ........... 6,375,514
35,000 Yamanouchi Pharmaceutical Company, Ltd.** .... 1,222,842
7,598,356
Medical - Products - 0.3%
6,080 Synthes-Stratec, Inc.*,**,+ .................. 2,833,280
Metal Processors and Fabricators - 0.8%
487,273 Assa Abloy A.B. - Class B .................... 6,846,055
Money Center Banks - 1.4%
149,013 Banco Bilbao Vizcaya S.A.** .................. 2,119,686
203,525 DBS Group Holdings, Ltd.** ................... 3,335,064
635,000 Fuji Bank, Ltd.** ............................ 6,171,022
11,625,772
Multimedia - 2.5%
99,002 Corus Entertainment, Inc. - Class B*,** ...... 2,017,936
115,017 Shaw Communications, Inc. - Class B** ........ 3,786,748
246,915 Viacom, Inc. - Class B* ...................... 14,922,925
20,727,609
Oil Companies - Integrated - 0.8%
70,735 Petroleo Brasileiro S.A. (ADR) ............... 1,814,211
37,354 Total Fina S.A.** ............................ 4,979,101
6,793,312
Petrochemicals - 0.4%
224,669 Reliance Industries, Ltd.+ ................... 3,257,701
Property and Casualty Insurance - 0.3%
189,000 Tokio Marine & Fire Insurance
Company, Ltd.** ............................ 2,210,364
Publishing - Newspapers - 0.4%
154,000 Singapore Press Holdings, Ltd.** ............. 3,336,965
Retail - Diversified - 0.4%
33,000 Ito-Yokado Company, Ltd.** ................... 3,584,850
Retail - Internet - 1.0%
366,915 QXL.com PLC*,** .............................. 8,534,032
Satellite Telecommunications - 0.2%
30,788 PT MULTIMEDIA - Servicos de
Telecomunicacoes e Multimedia
SGPS S.A.*,**,+ ............................ 1,749,030
Security Services - 1.3%
578,488 Securitas A.B. - Class B ..................... 10,474,064
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 13
<PAGE>
Janus | Aspen International Growth Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Telecommunication Equipment - 9.9%
6,549 ADVA A.G. Optical Networking*,** ............. $ 1,238,599
33,300 Comverse Technology, Inc.* ................... 4,820,175
317,071 Datacraft Asia, Ltd.** ....................... 2,631,689
7,000 Matsushita Communication Industrial
Company, Ltd.** ............................ 1,849,677
135,410 Nokia Oyj** .................................. 24,520,043
98,295 Nokia Oyj (ADR)** ............................ 18,676,050
158,545 Nortel Networks Corp.** ...................... 16,013,045
116,134 Telefonaktiebolaget L.M. Ericsson (ADR) ...... 7,628,552
73,798 Telefonaktiebolaget L.M. Ericsson - Class B .. 4,746,047
82,123,877
Telecommunication Services - 10.5%
195,200 Amdocs, Ltd.* ................................ 6,734,400
26,942 BCE, Inc.** .................................. 2,441,404
338,522 COLT Telecom Group PLC*,** ................... 17,332,949
15,130 Dacom Corp.* ................................. 7,798,282
142,964 Energis PLC*,** .............................. 6,869,735
84,360 FirstCom Corp.* .............................. 3,100,230
9,340 Korea Thrunet Company, Ltd. - Class A* ....... 633,952
90,983 KPNQwest N.V.*,** ............................ 6,050,060
51,537 NTL, Inc.* ................................... 6,429,241
241 NTT Data Corp.** ............................. 5,542,670
364,370 SK Telecom Company, Ltd. (ADR) ............... 14,402,176
142,445 Sonera Oyj** ................................. 9,751,543
87,086,642
Telephone - Integrated - 4.4%
120 Nippon Telegraph & Telephone Corp.** ......... 2,055,197
698,567 Telefonica S.A.*,** .......................... 17,428,408
10,895 Telefonica S.A. (ADR)*,** .................... 858,662
74,100 Telefonos de Mexico S.A. (ADR) ............... 8,336,250
200,134 Versatel Telecom International N.V.*,** ...... 7,046,718
35,725,235
Therapeutics - 0.8%
117,390 QLT PhotoTherapeutics, Inc.*,** .............. 6,896,663
Transportation - Air Freight - 0.6%
170,838 TNT Post Group N.V.** ........................ 4,889,503
Wire and Cable Products - 0%
12,000 Furukawa Electric Co., Ltd.** ................ 182,032
- --------------------------------------------------------------------------------
Total Common Stock (cost $342,540,451) ....................... 721,247,897
- --------------------------------------------------------------------------------
Preferred Stock - 3.1%
Automotive - Cars and Light Trucks - 0.8%
2,367 Porsche A.G.** ............................... $ 6,476,869
Broadcast Services and Programming - 0.7%
69,060 UnitedGlobalCom, convertible, 7.00%+ ......... 6,267,195
Diversified Financial Services - 0.6%
15,022 Marschollek, Lautenschlaeger und
Partner A.G.** ............................. 4,533,640
Telephone - Integrated - 1.0%
63,675 Telecomunicacoes Brasileiras S.A. (ADR) ...... 8,182,238
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $15,605,887) ..................... 25,459,942
- --------------------------------------------------------------------------------
Repurchase Agreement - 8.8%
$ 73,100,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $73,127,717 collateralized
by $19,108,892 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $80,133,752
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$13,845,987 and $60,716,014
(cost $73,100,000) ......................... 73,100,000
- --------------------------------------------------------------------------------
Total Investments (total cost $431,246,338) - 99.1% .......... 819,807,839
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.9% 7,569,995
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 827,377,834
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
14 Janus Aspen Series / December 31, 1999
<PAGE>
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Australia 0.1% $ 529,810
Bermuda 1.0% 7,939,636
Brazil 1.5% 12,353,981
Canada 6.3% 52,029,289
Finland 6.9% 56,444,646
France 3.1% 25,597,051
Germany 5.6% 45,563,232
Hong Kong 4.7% 38,601,391
India 0.4% 3,257,701
Israel 2.3% 18,599,863
Italy 1.2% 10,058,301
Japan 17.2% 141,232,733
Mexico 1.7% 13,745,404
Netherlands 8.1% 66,769,250
Portugal 0.2% 1,749,030
Singapore 1.7% 13,823,877
South Korea 2.8% 22,834,410
Spain 2.7% 22,449,870
Sweden 3.8% 31,290,195
Switzerland 0.7% 5,742,069
Taiwan 0.9% 7,094,655
United Kingdom 9.8% 80,385,352
United States++ 17.3% 141,716,093
- --------------------------------------------------------------------------------
Total 100.0% $ 819,807,839
++Includes Short-Term Securities (8.4% excluding Short-Term Securities)
Forward Currency Contracts, Open at December 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 5,500,000 $ 8,896,250 $ 19,424
British Pound 4/20/00 500,000 808,750 3,130
British Pound 6/9/00 7,500,000 12,128,250 30,732
Canadian Dollar 4/7/00 8,900,000 6,171,982 (69,006)
Canadian Dollar 5/18/00 1,100,000 763,571 (10,146)
Euro 4/7/00 33,000,000 33,471,900 558,230
Euro 4/14/00 12,000,000 12,177,600 782,400
Euro 4/20/00 110,000 111,672 9,372
Euro 5/18/00 1,200,000 1,220,640 36,360
Euro 6/2/00 7,400,000 7,534,680 220,520
Euro 6/9/00 11,600,000 11,816,920 145,208
Hong Kong Dollar
5/7/01 124,000,000 15,839,561 (187,437)
Hong Kong Dollar
5/10/01 76,000,000 9,708,118 (37,015)
Japanese Yen 3/16/00 369,300,000 3,658,522 (40,582)
Japanese Yen 4/7/00 600,000,000 5,965,128 (132,891)
Japanese Yen 4/14/00 500,000,000 4,976,754 (131,792)
Japanese Yen 4/20/00 730,000,000 7,273,343 (163,877)
Japanese Yen 5/18/00 450,700,000 4,511,661 (127,419)
Japanese Yen 6/2/00 50,000,000 501,781 (14,926)
Singapore Dollar 7/16/01 2,300,000 1,443,364 (20,521)
Swiss Franc 6/2/00 1,600,000 1,024,393 27,546
- --------------------------------------------------------------------------------
Total $ 150,004,840 $ 897,310
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 15
<PAGE>
Janus | Aspen Worldwide Growth Portfolio
[PHOTO]
Helen Young Hayes
portfolio manager
[PHOTO]
Laurence Chang
portfolio manager
Janus Aspen Worldwide Growth Portfolio performed solidly for the 12 months ended
December 31, 1999, returning 64.45% for its Institutional Shares and 63.66% for
its Retirement Shares. This compares with a 24.93% gain posted by the Morgan
Stanley Capital International World Index.(1) As a result, the Portfolio earned
a top-quartile ranking, placing 13th out of 52 global portfolios tracked by
Lipper, Inc., a leading mutual fund rating company.(2)
We achieved these strong results despite a volatile global economic environment.
After enduring an extended recession, Japan at long last began to show signs of
economic recovery. More important, many Japanese corporations took steps toward
restructuring by divesting noncore businesses, reducing excess capacity and
being more disciplined in allocating capital. In the Asian emerging markets,
economic activity bounced back far more vigorously from last fall's crisis than
initially expected. In turn, we identified a number of new investment
opportunities in these areas. Meanwhile, stronger-than-anticipated economic
growth globally drove up interest rates in the U.S. and Europe, creating
uncertainty in these markets.
Over the past 12 months, we have continued to evolve into an information-driven,
networked global economy. In fact, Federal Reserve Chairman Alan Greenspan
recently noted that the "defining characteristic of the wave of technological
innovation sweeping over the U.S. economy is the role of information." We
believe this comment increasingly applies outside the U.S. as well, and we are
finding many exciting opportunities in the global companies leading these
changes.
One such leader is Softbank, a Japanese firm that provides funding for companies
like Yahoo! and E-Trade and has brought these and other Internet businesses into
Japan. Within the U.S., strong performers included top software developer
Microsoft, America Online, the world's largest Internet service provider, and
Amazon.com, which is emerging as the online retailer of choice.
The continued rise in demand for media content benefited a number of stocks in
the Portfolio, including U.S. cable content providers Viacom and AT&T Liberty
Media Group. Our cable holdings also performed well, aided by richer Internet
content and a subsequent increase in demand for broadband connectivity.
U.S.-based Time Warner and Comcast, as well as British-based NTL were all
leaders, and their high-capacity networks continue to position them for future
growth. Deregulation and the digitalization of broadcast media have opened new
revenue opportunities for these companies, from telephone services to e-commerce
offerings.
The exploding volume of data - doubling every six to seven months - has created
enormous opportunities for the leading companies that provide the Internet
infrastructure. Cisco Systems, with its dominance in routing technology; Sun
Microsystems, with its increasing share in Web servers; and EMC, which builds
high-end data storage systems, are three U.S. businesses with unique franchises.
We've also identified several international leaders, including Canadian telecom
equipment giant Nortel Networks.
Other Internet enablers include silicon chipmakers such as global leaders Texas
Instruments in the U.S. and STMicroelectronics in France, both of which rewarded
us with strong gains. We also benefited from our positions in companies that
provide semiconductor manufacturers with the technology to continually enhance
the performance of their chips, including Dutch technology company ASM
Lithography.
In wireless communications, Japan's NTT DoCoMo, recognized as a pioneer in
mobile data, was another extraordinary performer for the Portfolio. Other
wireless holdings that impressed us were China Telecom, Mannesmann in Germany
and U.S.-based Sprint PCS and AirTouch Communications (now part of the U.K.'s
Vodafone). Vodafone's recent bid for Mannesmann provided a nice boost to both
stocks, and if its bid is accepted, the merger should create a wireless telecom
business unequaled in the U.K.
Our enthusiasm for the wireless business also extends to equipment
manufacturers. As telecom companies upgrade their networks to accommodate both
accelerating subscriber growth and new data applications, equipment makers like
Nokia in Finland and Sweden's Ericsson continue to benefit.
Despite the Portfolio's impressive returns, we did experience a few
disappointments. Among them was the Dutch publisher Wolters Kluwer. Rising
expenses linked to the company's Internet and online distribution initiatives
hurt this stock, and we consequently liquidated our position. Another stock that
fell short of our expectations was Tyco International, a diversified
manufacturing company plagued by reports of accounting irregularities. While we
believe Tyco's business fundamentals remain strong, the negative perception
created by these reports will likely keep a lid on the stock price for some
time. Thus, we trimmed our position.
Looking ahead, by taking a broad view of the dramatic changes in the global
economy yet still retaining our philosophy of building the Portfolio one company
at a time, we are confident we will be able to continue identifying compelling
ideas in a rapidly changing marketplace.
Thank you for your continued investment and confidence in Janus Aspen Worldwide
Growth Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 90.4% 90.0%
Foreign 61.2% 65.8%
Number of Stocks 130 156
Top 10 Equities (% of Assets) 34.3% 25.9%
Cash & Cash Equivalents 9.6% 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.
(2) Lipper, Inc. defines an global portfolio as one that "invests at least 25%
of its portfolio in securities traded outside the United States and may own
U.S. securities as well." As of December 31, 1999, Janus Aspen Worldwide
Growth Portfolio ranked 2/23 for the 5-year period. The ranking is for
Institutional Shares and based on total return, including reinvested
dividends and capital gains for the stated period.
Past performance does not guarantee future results.
16 Janus Aspen Series / December 31, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 64.45%
5 Year 33.60%
From Inception 29.71%
- --------------------------------------------------------------------------------
Morgan Stanley Capital International World Index(2)
1 Year 24.93%
5 Year 19.76%
From Inception Date of Institutional Shares 16.41%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 63.66%
5 Year 32.78%
From Portfolio Inception 28.77%
- --------------------------------------------------------------------------------
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.
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 64.45%
Five Year, 33.60%
Since 9/13/93,* 29.71%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Worldwide Growth Portfolio - Institutional Shares and the Morgan
Stanley Capital International World Index. Janus Aspen Worldwide Growth
Portfolio - Institutional Shares is represented by a shaded area of green. The
Morgan Stanley Capital International World Index is represented by a solid black
line. The "y" axis reflects the value of the investment. The "x" axis reflects
the computation periods from inception, September 13, 1993, through December 31,
1999. The upper and lower right quadrants reflect the ending value of the
hypothetical investment in Janus Aspen Worldwide Growth Portfolio -
Institutional Shares ($51,470) as compared to the Morgan Stanley Capital
International World Index ($26,041).
Janus Aspen Worldwide Growth Portfolio
- - Institutional Shares - $51,470
Morgan Stanley
Capital International
World Index - $26,041
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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. 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. Foreign investing involves special risks such
as currency fluctuation and political uncertainty. Past performance does
not guarantee future results.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
================================================================================
Common Stock - 88.8%
Apparel Manufacturers - 0.4%
1,741 Gucci Group N.V.** ........................... $ 200,541
202,186 Gucci Group N.V. - New York Shares** ......... 23,150,297
23,350,838
Audio and Video Products - 2.5%
558,600 Sony Corp.** ................................. 165,644,745
Brewery - 0.1%
920,000 Kirin Brewery Company, Ltd.** ................ 9,678,998
Broadcast Services and Programming - 2.3%
1,143,115 AT&T Corp./Liberty Media Group - Class A* .... 64,871,776
326,415 Clear Channel Communications, Inc.* .......... 29,132,539
245,276 EM.TV & Merchandising A.G.** ................. 15,791,850
643,755 Grupo Televisa S.A. (GDR)* ................... 43,936,279
153,732,444
Cable Television - 2.7%
1,379,760 Comcast Corp. - Special Class A .............. 69,332,940
209,740 Rogers Communications, Inc.*,** .............. 5,191,065
941,834 Rogers Communications, Inc. - Class B*,** .... 22,971,561
7,227,747 Telewest Communications PLC*,** .............. 38,505,785
363,678 United Pan-Europe Communications N.V.*,** .... 46,464,229
182,465,580
Cellular Telecommunications - 11.9%
1,865,980 China Telecom, Ltd. (ADR)*,** ................ $ 239,895,054
127,060 Nextel Communications, Inc. - Class A* ....... 13,103,062
10,629 NTT Mobile Communications
Network, Inc.** ............................ 408,807,692
325,365 Sprint Corp./PCS Group* ...................... 33,349,912
3,694,085 Telecom Italia Mobile S.p.A.** ............... 41,105,436
1,983,095 Vodafone AirTouch PLC** ...................... 9,770,417
1,044,385 Vodafone AirTouch PLC (ADR)** ................ 51,697,058
797,728,631
Commercial Banks - 0.8%
609,526 Argentaria, Caja Postal y Banco Hipotecario
de Espana S.A.** ........................... 14,305,563
429,589 Bipop - Carire S.p.A.** ...................... 37,948,543
143 Julius Baer Holding A.G. - Class B** ......... 432,054
52,686,160
Commercial Services - 0.3%
426,290 Paychex, Inc. ................................ 17,051,600
Computer Data Security - 0.6%
183,460 Check Point Software Technologies, Ltd.* ..... 36,462,675
22,200 VeriSign, Inc.* .............................. 4,238,812
40,701,487
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 17
<PAGE>
Janus | Aspen Worldwide Growth Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Computer Services - 3.4%
131,228 Atos S.A.*,** ................................ $ 21,729,730
186,391 Cap Gemini S.A.** ............................ 47,252,355
178,525 Electronic Data Systems Corp. ................ 11,950,017
1,090,128 Getronics N.V.** ............................. 86,856,166
1,817,201 Logica PLC** ................................. 46,962,289
81,925 Whittman-Hart, Inc.* ......................... 4,393,228
134,324 WM-Data A.B. - Class B ....................... 8,306,910
227,450,695
Computer Software - 2.2%
1,047,605 Microsoft Corp.* ............................. 122,307,884
444,287 Tietoenator Oyj** ............................ 27,711,069
150,018,953
Computers - Integrated Systems - 2.0%
159,179 ASM Lithography Holding N.V.*,** ............. 17,662,788
123,360 ASM Lithography Holding N.V. (ADR)*,** ....... 14,032,200
69,207 Equant N.V.*,** .............................. 7,846,427
137,855 Equant N.V. - New York Shares*,** ............ 15,439,760
1,139,000 Fujitsu, Ltd.** .............................. 51,944,999
1,344,777 SEMA Group PLC** ............................. 24,178,857
131,105,031
Computers - Memory Devices - 1.1%
637,540 EMC Corp.* ................................... 69,651,245
14,885 VERITAS Software Corp.* ...................... 2,130,416
71,781,661
Computers - Micro - 2.1%
1,128,670 Dell Computer Corp.* ......................... 57,562,170
205,445 IBM Corp. .................................... 22,188,060
818,740 Sun Microsystems, Inc.* ...................... 63,401,179
143,151,409
Consulting Services - 0.1%
104,270 USWeb Corp.* ................................. 4,633,498
Diversified Operations - 2.3%
2,495,567 Hays PLC** ................................... 39,804,785
2,076,160 Tyco International, Ltd. ..................... 80,710,720
393,612 Vivendi** .................................... 35,499,040
156,014,545
Electronic Components - 3.0%
50,654 Celestica, Inc.*,** .......................... 2,827,916
714,170 Celestica, Inc, - New York Shares*,** ........ 39,636,435
528,033 Koninklijke (Royal) Phillips Electronics N.V.** 71,712,162
325,926 Koninklijke (Royal) Phillips Electronics N.V .
- New York Shares** ........................ 44,000,010
1,886,000 NEC Corp.** .................................. 44,944,314
203,120,837
Electronic Components - Semiconductors - 2.0%
268,060 Applied Materials, Inc.* ..................... 33,959,851
38,900 Rohm Company, Ltd.** ......................... 15,989,430
258,255 STMicroelectronics N.V.** .................... 39,698,132
7,015 STMicroelectronics N.V. - New York Shares** .. 1,062,334
444,425 Texas Instruments, Inc. ...................... 43,053,672
133,763,419
Engineering - Research and Development - 0.4%
198,533 ABB, Ltd.*,** ................................ 24,286,622
Enterprise Software and Services - 0.5%
305,830 BEA Systems, Inc.* ........................... 21,388,986
56,460 i2 Technologies, Inc.* ....................... 11,009,700
32,398,686
Fiber Optics - 1.1%
449,440 JDS Uniphase Corp.* .......................... $ 72,500,290
Finance - Credit Card - 0.7%
272,045 American Express Co. ......................... 45,227,481
Food - Catering - 0.4%
1,902,740 Compass Group PLC** .......................... 26,123,098
Food - Retail - 0.7%
251,649 Carrefour S.A.** ............................. 46,353,393
Human Resources - 0.4%
1,531,133 Capita Group PLC** ........................... 27,822,218
Instruments - Scientific - 0.3%
140,610 PE Corp./PE Biosystems Group ................. 16,917,141
Internet Content - 1.1%
74,800 Softbank Corp.** ............................. 71,593,658
Internet Software - 1.0%
753,050 America Online, Inc.* ........................ 56,808,209
82,915 Phone.com, Inc.* ............................. 9,612,958
66,421,167
Life and Health Insurance - 0.7%
2,292,623 Prudential PLC** ............................. 45,177,145
Machinery - General Industrial - 3.2%
871,017 Mannesmann A.G.** ............................ 212,050,831
Medical - Biomedical and Genetic - 0.6%
300,195 Genentech, Inc.* ............................. 40,376,228
Medical - Drugs - 2.5%
1,214,930 Pfizer, Inc. ................................. 39,409,292
798,770 Schering-Plough Corp. ........................ 33,698,109
140,940 Sepracor, Inc.* .............................. 13,979,486
949,000 Takeda Chemical Industries, Ltd.** ........... 46,902,036
276,658 Warner-Lambert Co. ........................... 22,668,665
317,000 Yamanouchi Pharmaceutical Company, Ltd.** .... 11,075,455
167,733,043
Medical Instruments - 0.6%
1,096,485 Medtronic, Inc. .............................. 39,953,172
Medical Products - 0.4%
51,851 Synthes-Stratec, Inc.*,**,+ .................. 24,162,566
Metal Processors and Fabricators - 0.7%
3,505,541 Assa Abloy A.B. - Class B .................... 49,251,913
Money Center Banks - 1.4%
1,435,375 Banco Bilbao Vizcaya S.A.** .................. 20,417,980
472,370 Bank of New York Company, Inc. ............... 18,894,800
5,511,000 Fuji Bank, Ltd.** ............................ 53,556,694
92,869,474
Multimedia - 4.0%
99,908 Shaw Communications, Inc. - Class B** ........ 3,289,309
1,624,385 Time Warner, Inc. ............................ 117,666,388
2,142,155 Viacom, Inc. - Class B* ...................... 129,466,493
497,505 Walt Disney Co. (The) ........................ 14,552,021
264,974,211
Networking Products - 4.9%
164,010 3Com Corp.* .................................. 7,708,470
2,979,660 Cisco Systems, Inc.* ......................... 319,196,078
326,904,548
Oil Companies - Integrated - 0.9%
614,065 Petroleo Brasileiro S.A. (ADR) ............... 15,749,539
333,488 Total Fina S.A.** ............................ 44,452,283
60,201,822
See Notes to Schedules of Investments.
18 Janus Aspen Series / December 31, 1999
<PAGE>
Shares or Principal Amount Market Value
================================================================================
Pipelines - 0.4%
561,590 Enron Corp. .................................. $ 24,920,556
Property and Casualty Insurance - 0.3%
1,643,000 Tokio Marine & Fire Insurance
Company, Ltd.** ............................ 19,214,964
Radio - 0.2%
190,300 AMFM, Inc.* .................................. 14,890,975
Recycling - 0.1%
331,436 Tomra Systems A.S.A .......................... 5,618,470
Retail - Diversified - 0.4%
271,000 Ito-Yokado Company, Ltd.** ................... 29,439,225
Retail - Internet - 0.3%
291,810 Amazon.com, Inc.* ............................ 22,214,036
Retail - Office Supplies - 0.3%
936,890 Staples, Inc.* ............................... 19,440,468
Security Services - 0.8%
3,070,394 Securitas A.B. - Class B ..................... 55,592,343
Super-Regional Banks - 0.0%
42,481 Firstar Corp. ................................ 897,411
Telecommunication Equipment - 10.6%
307,185 Comverse Technology, Inc.* ................... 44,465,029
605,025 Lucent Technologies, Inc. .................... 45,263,433
1,222,094 Nokia Oyj** .................................. 221,296,782
975,085 Nokia Oyj (ADR)** ............................ 185,266,150
1,004,610 Nortel Networks Corp.** ...................... 101,465,610
703,667 Telefonaktiebolaget L.M. Ericsson (ADR) ...... 46,222,126
998,208 Telefonaktiebolaget L.M. Ericsson - Class B .. 64,196,082
708,175,212
Telecommunications Services - 4.4%
238,050 Amdocs, Ltd.* ................................ 8,212,725
1,455,103 COLT Telecom Group PLC*,** ................... 74,503,951
1,294,866 Energis PLC*,** .............................. 62,221,160
610,780 Infonet Services Corp.* ...................... 16,032,975
221,505 Korea Telecom Corp. (ADR)** .................. 16,557,499
314,731 NTL, Inc.* ................................... 39,262,692
752 NTT Data Corp.** ............................. 17,294,970
722,087 Sonera Oyj** ................................. 49,432,848
1,184,773 Thus PLC*,** ................................. 7,482,353
291,001,173
Telephone - Integrated - 3.7%
1,157 Nippon Telegraph & Telephone Corp.** ......... 19,815,522
6,160,543 Telefonica S.A.*,** .......................... 153,698,155
159,671 Telefonica S.A. (ADR)*,** .................... 12,584,071
555,375 Telefonos de Mexico S.A. (ADR) ............... 62,479,687
248,577,435
Therapeutics - 0.1%
155,150 QLT PhotoTherapeutics, Inc.*,** .............. 9,115,062
Transportation - Air Freight - 0.7%
1,554,230 TNT Post Group N.V.** ........................ 44,483,151
Wire and Cable Products - 0%
98,000 Furukawa Electric Co., Ltd.** ................ 1,486,592
Wireless Equipment - 0.2%
190,275 RF Micro Devices, Inc.* ...................... 13,021,945
- --------------------------------------------------------------------------------
Total Common Stock (cost $3,001,336,806) ..................... 5,925,468,256
- --------------------------------------------------------------------------------
Preferred Stock - 1.6%
Automotive - Cars and Light Trucks - 0.5%
11,997 Porsche A.G.** ............................... $ 32,827,631
Telephone - Integrated - 1.1%
561,295 Telecomunicacoes Brasileiras S.A. (ADR) ...... 72,126,407
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $80,138,903) ..................... 104,954,038
- --------------------------------------------------------------------------------
Repurchase Agreement - 6.1%
$406,300,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $406,454,055 collateralized
by $106,209,888 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $445,394,573
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$76,957,925 and $337,468,075
(cost $406,300,000) ........................ 406,300,000
- --------------------------------------------------------------------------------
U.S. Government Agencies - 1.9%
Fannie Mae
50,000,000 5.51%, 2/2/00 .............................. 49,755,111
Federal Home Loan Bank System
25,000,000 5.53%, 1/18/00 ............................. 24,934,597
Freddie Mac
50,000,000 5.51%, 1/28/00 ............................. 49,794,875
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $124,484,583) . 124,484,583
- --------------------------------------------------------------------------------
U.S. Government Obligation - 0.7%
U.S. Treasury Bill
50,000,000 4.615%, 5/25/00 (cost $49,036,354) ......... 48,935,000
- --------------------------------------------------------------------------------
Total Investments (total cost $3,661,296,646) - 99.1% ........ 6,610,141,877
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.9% 61,029,690
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $6,671,171,567
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 19
<PAGE>
Janus | Aspen Worldwide Growth Portfolio
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 1.2% $ 80,710,720
Brazil 1.3% 87,875,946
Canada 2.8% 184,496,958
Finland 7.3% 483,706,849
France 3.6% 236,047,267
Germany 4.0% 260,670,312
Hong Kong 3.6% 239,895,054
Israel 0.6% 36,462,675
Italy 1.2% 79,053,979
Japan 14.6% 967,389,294
Mexico 1.6% 106,415,966
Netherlands 5.6% 371,847,731
Norway 0.1% 5,618,470
South Korea 0.3% 16,557,499
Spain 3.0% 201,005,769
Sweden 3.4% 223,569,374
Switzerland 0.7% 48,881,242
United Kingdom 6.9% 454,249,116
United States++ 38.2% 2,525,687,656
- --------------------------------------------------------------------------------
Total 100.0% $6,610,141,877
++Includes Short-Term Securities (29.4% excluding Short-Term Securities)
Forward Currency Contracts, Open at December 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 32,000,000 $ 51,760,000 $ 112,758
British Pound 4/20/00 1,000,000 1,617,500 6,260
British Pound 6/9/00 46,000,000 74,386,600 188,720
Canadian Dollar 4/7/00 10,400,000 7,212,205 (85,394)
Canadian Dollar 5/18/00 2,300,000 1,596,558 (21,215)
Euro 4/7/00 221,000,000 224,160,300 3,525,495
Euro 4/14/00 93,200,000 94,579,360 6,076,640
Euro 4/20/00 30,000,000 30,456,000 2,556,000
Euro 6/2/00 63,900,000 65,062,980 1,904,220
Euro 6/9/00 50,000,000 50,935,000 410,654
Hong Kong Dollar
5/7/01 761,000,000 97,208,916 (1,177,528)
Hong Kong Dollar
5/10/01 509,000,000 65,018,841 (236,216)
Japanese Yen 3/16/00 1,100,000,000 10,897,304 81,069
Japanese Yen 4/7/00 5,500,000,000 54,680,339 (1,279,012)
Japanese Yen 4/14/00 4,600,000,000 45,786,133 (1,212,490)
Japanese Yen 4/20/00 1,950,000,000 19,428,793 (437,753)
Japanese Yen 5/18/00 3,150,000,000 31,532,573 (890,550)
Japanese Yen 6/2/00 3,000,000,000 30,106,879 (895,584)
South Korean Won
7/16/01 2,750,000,000 2,399,651 (104,158)
Swiss Franc 4/20/00 2,500,000 1,592,560 3,253
Swiss Franc 6/2/00 9,500,000 6,082,336 163,555
- --------------------------------------------------------------------------------
Total $ 966,500,828 $ 8,688,724
See Notes to Schedules of Investments.
20 Janus Aspen Series / December 31, 1999
<PAGE>
Janus | Aspen Balanced Portfolio
[PHOTO]
Blaine Rollins
portfolio manager
Janus Aspen Balanced Portfolio gained 26.76% for its Institutional Shares and
26.13% for its Retirement Shares for the fiscal year ended December 31, 1999,
outperforming the S&P 500 Index, which appreciated 21.03%, and the Lehman
Brothers Government/Corporate Bond Index, which declined (2.15)%.(1) This strong
performance earned the Portfolio a top-decile ranking, placing it 2nd out of 60
balanced portfolios tracked by Lipper, Inc., a leading mutual fund rating
company.(2)
During the year, the equity markets soared to all-time highs - albeit with a few
bumps along the way - as the U.S. economy, powered by strong consumer spending,
continued to steam ahead at a record-breaking pace. In an effort to douse the
overheating economy and keep inflation in check, the Federal Reserve intervened,
raising short-term interest rates three times. These preemptive actions,
however, only served to further depress the bond markets, whose lackluster
performance was the worst in five years. Against this backdrop, the Portfolio's
fixed-income position, which constitutes about half of our holdings,
underperformed. Our intermediate-maturity Treasury and corporate bond holdings
were especially hard hit due to their sensitivity to rising interest rates. On
the plus side, we selectively added attractive high-yield instruments, which
helped boost yield.
This uncertain economic environment presented special challenges for our
outstanding team of research analysts, who were more than up to the task. Their
countless hours spent poring over financial data and weeks on the road visiting
our companies in person helped us achieve impressive gains, specifically in the
technology, wireless communications and retailing industries.
Focusing on the Portfolio's holdings, the Internet is a fast-moving, high-growth
area that continues to reward us with extraordinary results. Although the
Portfolio has a conservative bent, we were able to capitalize on advancements in
Web technology by investing in solid brand-name franchises such as Cisco
Systems. Cisco controls more than 75% of the global market for the routers and
switches that link computer networks and power the Internet. On top of that,
Cisco is turning its attention to tele-communications networking, which allows
digital, voice and video data - infinitely more information than can be
supported by a traditional copper wire system - to be carried over fiber-optic
networks. With more and more companies upgrading their internal data networks to
remain competitive, we're confident Cisco is positioned to benefit.
Like Cisco, long-time holding Nokia and new additions VoiceStream Wireless
(through Omnipoint convertible preferred stock) and Nextel Communications fall
into the category of "productivity enablers." In other words, these
forward-thinking businesses offer products and services designed to increase
output and enhance efficiency. One example is the newly introduced wireless
application protocol (WAP) that allows users to surf the Web via their cellular
phones. With all signs pointing to continued explosive growth in wireless and
our holdings in particular, we remain extremely optimistic going forward.
Although there has been considerable talk lately about how the Internet will
impact retailing in the future, much of it predicting the demise of traditional
"brick and mortar" retailers, Home Depot and Costco continue to be excellent
performers for us. Home Depot recently launched Expo Design Center, a one-stop
home remodeling center, in a dozen locations across the U.S. Expo lets customers
choose from a wide variety of home redecorating products and then arranges for
the installation at very affordable prices. As new stores open nationwide, we
believe that more and more people will be attracted to this innovative concept.
Costco, too, is benefiting from steady customer growth. The company's volume
discount pricing and its strong membership tie to customers have combined to
insulate Costco from Web-based competitors. Given these positive factors, we're
upbeat about the long-term potential for both businesses.
While we were pleased with our overall performance, a few companies failed to
meet our expectations. An extremely competitive price environment put downward
pressure on auto insurers Mutual Risk Management and Progressive Corporation,
and we sold both equity positions at a loss. Another disappointment was
automotive supplier Federal-Mogul. Lack of demand in the auto parts aftermarket
and increased competition from Internet supplier exchanges caused earnings to
fall, and we liquidated the stock to redeploy our assets in other areas.
To wrap up, I want to stress that, as always, we are committed to finding
companies that are growing their top line and improving returns on capital, with
superior management teams dedicated to adding shareholder value. This strategy
will also guide former assistant portfolio manager Karen L. Reidy, who assumed
management responsibilities for the Portfolio at year-end. Karen has proven to
be an indispensable team member in the past, and we're confident in her
abilities to successfully steer the Portfolio in the future.
Thank you for investing in Janus Aspen Balanced Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 37.9% 41.1%
Number of Stocks 48 52
Top 10 Equities/Preferred
(% of Assets) 21.7% 32.1%
Fixed-Income Securities 84 45
U.S. Treasury Bonds 13.1% 6.8%
Investment-Grade
Corporate Bonds 21.8% 9.5%
High-Yield/High-Risk
Corporate Bonds 11.6% 13.6%
Preferred Stock 10.6% 19.2%
Cash & Cash Equivalents 5.0% 9.8%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a balanced portfolio as "a portfolio whose primary
objective is to conserve principal by maintaining at all times a balanced
portfolio of both stocks and bonds. Typically the stock/bond ratio ranges
around 60%/40%." As of December 31, 1999, Janus Aspen Balanced Portfolio
ranked 1/25 for the 5-year period. The ranking is for Institutional Shares
and based on total return, including reinvestment of dividends and capital
gains for the stated period.
Past performance does not guarantee future results.
Janus Aspen Series / December 31, 1999 21
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 26.76%
5 Year 24.68%
From Inception 20.62%
- --------------------------------------------------------------------------------
Lehman Brothers Govt./Corp. Bond Index
1 Year (2.15)%
5 Year 7.61%
From Inception Date of Institutional Shares 5.40%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 21.03%
5 Year 28.54%
From Inception Date of Institutional Shares 22.68%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 26.13%
5 Year 23.98%
From Portfolio Inception 19.82%
- --------------------------------------------------------------------------------
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.
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 26.76%
Five Year, 24.68%
Since 9/13/93,* 20.62%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Balanced Portfolio - Institutional Shares, the Lehman Brothers
Govt./Corp. Bond Index and the S&P 500 Index. Janus Aspen Balanced Portfolio -
Institutional Shares is represented by a shaded area of green. The Lehman
Brothers Govt./Corp. Bond Index is represented by a solid black line. The S&P
500 Index is represented by a solid gray line. The "y" axis reflects the value
of the investment. The "x" axis reflects the computation periods from inception,
September 13, 1993, through December 31, 1999. The lower right quadrant reflects
the ending value of the hypothetical investment in Janus Aspen Balanced
Portfolio - Institutional Shares ($32,575) as compared to the Lehman Brothers
Govt./Corp. Bond Index ($13,928) and the S&P 500 Index ($36,243).
Janus Aspen Balanced Portfolio
- - Institutional Shares - $32,575
Lehman Brothers Govt./Corp. Bond Index - $13,928
S&P 500 Index - $36,243
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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
Shares or Principal Amount Market Value
================================================================================
Common Stock - 37.9%
Audio and Video Products - 0.3%
111,460 Gemstar International Group, Ltd.* ........... $ 7,941,525
Brewery - 0.2%
67,790 Anheuser-Busch Companies, Inc. ............... 4,804,616
Broadcast Services and Programming - 1.7%
756,730 AT&T Corp./Liberty Media Group - Class A* .... 42,944,428
Cable Television - 1.4%
684,065 Comcast Corp. - Special Class A .............. 34,374,266
Cellular Telecommunications - 1.6%
156,720 Nextel Communications, Inc. - Class A* ....... 16,161,750
243,265 Sprint Corp./PCS Group* ...................... 24,934,663
41,096,413
Circuits - 1.3%
202,480 Linear Technology Corp. ...................... 14,489,975
376,700 Maxim Integrated Products, Inc.* ............. 17,775,531
32,265,506
Commercial Services - 0.4%
244,297 Paychex, Inc. ................................ 9,771,880
Computer Data Security - 1.0%
125,200 VeriSign, Inc.* .............................. 23,905,375
Computers - Memory Devices - 1.7%
386,905 EMC Corp.* ................................... 42,269,371
Cruise Lines - 0.5%
256,260 Royal Caribbean Cruises, Ltd. ................ 12,636,821
Data Processing and Management - 1.1%
490,275 Automatic Data Processing, Inc. .............. $ 26,413,566
Distribution and Wholesale - 0.4%
117,225 Costco Wholesale Corp.* ...................... 10,696,781
Diversified Financial Services - 0.9%
388,255 Citigroup, Inc. .............................. 21,572,418
Diversified Operations - 3.3%
541,170 General Electric Co. ......................... 83,746,058
Electronic Components - Semiconductors - 1.1%
277,630 Texas Instruments, Inc. ...................... 26,895,406
Finance - Credit Card - 1.1%
169,150 American Express Co. ......................... 28,121,188
Finance - Investment Bankers/Brokers - 1.0%
640,935 Charles Schwab Corp. ......................... 24,595,881
Internet Software - 0.3%
60,885 Phone.com, Inc.* ............................. 7,058,855
Life and Health Insurance - 1.3%
1,621,760 Prudential PLC** ............................. 31,957,494
Medical - Biomedical and Genetic - 1.2%
219,390 Genentech, Inc.* ............................. 29,507,955
Medical - Drugs - 1.1%
336,710 King Pharmaceuticals, Inc.* .................. 18,876,804
234,545 Schering-Plough Corp. ........................ 9,894,867
28,771,671
See Notes to Schedules of Investments.
22 Janus Aspen Series / December 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Money Center Banks - 0.5%
288,505 Bank of New York Company, Inc. ............... $ 11,540,200
Multi-Line Insurance - 0.7%
167,425 American International Group, Inc. ........... 18,102,828
Multimedia - 2.4%
1,002,690 Viacom, Inc. - Class B* ...................... 60,600,077
Music/Clubs - 0.5%
362,325 SFX Entertainment, Inc.* ..................... 13,111,636
Networking Products - 1.3%
309,046 Cisco Systems, Inc.* ......................... 33,106,553
Optical Supplies - 0.3%
128,665 Allergan, Inc. ............................... 6,401,084
Radio - 1.9%
241,480 Hispanic Broadcasting Corp.* ................. 22,268,984
705,175 Infinity Broadcasting Corp. - Class A* ....... 25,518,520
47,787,504
Retail - Building Products - 1.2%
439,741 Home Depot, Inc. ............................. 30,149,742
Retail - Computer Equipment - 0.4%
263,310 Insight Enterprises, Inc.* ................... 10,696,969
Retail - Office Supplies - 0.7%
832,640 Staples, Inc.* ............................... 17,277,280
Retail - Restaurants - 0.4%
277,405 McDonald's Corp. ............................. 11,182,889
Super-Regional Banks - 0.1%
102,460 Firstar Corp. ................................ 2,164,468
Telecommunication Equipment - 2.6%
217,685 Lucent Technologies, Inc. .................... 16,285,559
236,848 Nokia Oyj .................................... 45,001,120
24,802 Nokia Oyj (ADR) .............................. 4,491,146
65,777,825
Telephone - Integrated - 1.1%
998,277 Telefonica S.A.* ............................. 24,905,813
22,855 Telefonica S.A. (ADR)* ....................... 1,801,260
26,707,073
Television - 0.9%
231,873 Univision Communications, Inc. - Class A* .... 23,694,522
- --------------------------------------------------------------------------------
Total Common Stock (cost $660,283,448) ....................... 949,648,124
- --------------------------------------------------------------------------------
Corporate Bonds - 31.2%
Advertising Sales - 0.6%
$ 10,150,000 Lamar Advertising Co., 5.25%
convertible notes, due 9/15/06 ............. 14,793,625
Beverages - Non-Alcoholic - 0.8%
20,700,000 Coca-Cola Enterprises, Inc., 7.125%
notes, due 9/30/09 ......................... 20,311,875
Brewery - 0.7%
Anheuser-Busch Companies, Inc.:
5,100,000 5.65%, notes, due 9/15/08 .................. 4,551,750
14,100,000 5.75%, notes, due 4/1/10 ................... 12,460,875
17,012,625
Broadcast Services and Programming - 1.0%
26,300,000 AT&T Corp./Liberty Media Group, 7.875%
notes, due 7/15/09+ ........................ 26,102,750
Cable Television - 6.6%
Adelphia Communications Corp.:
$ 10,145,000 9.25%, senior notes, due 10/1/02 ........... $ 10,170,362
7,055,000 10.50%, senior notes, due 7/15/04 .......... 7,363,656
10,158,000 8.375%, senior notes, due 2/1/08 ........... 9,446,940
25,000,000 7.875%, senior notes, due 5/1/09 ........... 22,500,000
1,500,000 Century Communications Corp., 8.875%
senior notes, due 1/15/07 .................. 1,466,250
31,510,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09 ........... 29,146,750
Cox Communications, Inc.:
11,500,000 7.00%, notes, due 8/15/01 .................. 11,456,875
13,750,000 7.50%, notes, due 8/15/04 .................. 13,664,063
9,500,000 7.75%, notes, due 8/15/06 .................. 9,571,250
10,600,000 7.875%, notes, due 8/15/09 ................. 10,732,500
10,000,000 Falcon Holding Group L.P., 8.375%
debentures, due 4/15/10 .................... 10,075,000
6,000,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 .... 6,360,000
11,205,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 .................. 11,120,962
3,000,000 Lenfest Communications, Inc., 7.625%
senior notes, due 2/15/08 .................. 2,996,250
Mediacom L.L.C.:
6,000,000 8.50%, senior notes, due 4/15/08 ........... 5,625,000
3,750,000 7.875%, senior notes, due 2/15/11 .......... 3,309,375
165,005,233
Cellular Telecommunications - 1.6%
10,318,000 Orange PLC, 8.00%
senior notes, due 8/1/08 ................... 10,472,770
5,675,000 Vodafone AirTouch PLC, 6.65%
notes, due 5/1/08 .......................... 5,327,406
24,000,000 VoiceStream Wireless Co., 10.375%
senior notes, due 11/15/09+ ................ 24,660,000
40,460,176
Chemicals - Diversified - 0.3%
7,700,000 E.I. du Pont de Nemours and Co., 6.75%
notes, due 10/15/04 ........................ 7,603,750
Commercal Banks - 0.2%
5,500,000 First Union National Bank, 5.80%
subordinated notes, due 12/1/08 ............ 4,812,500
Computers - Micro - 1.6%
7,900,000 Dell Computer Corp., 6.55%
senior notes, due 4/15/08 .................. 7,386,500
9,025,000 EMC Corp., 6.00%
convertible subordinated notes, due 5/15/04 12,352,969
IBM Corp.:
2,000,000 6.375%, notes, due 6/15/00 ................. 2,002,500
8,395,000 5.375%, notes, due 2/1/09 .................. 7,377,106
11,900,000 Sun Microsystems, Inc., 7.65%
senior notes, due 8/15/09 .................. 11,855,375
40,974,450
Cosmetics and Toiletries - 0.3%
8,000,000 Procter and Gamble Co., 5.25%
notes, due 9/15/03 ......................... 7,580,000
Cruise Lines - 0.3%
Carnival Corp., 6.15%
1,500,000 notes, due 4/15/08 ......................... 1,350,000
Royal Caribbean Cruises, Ltd.:
6,350,000 7.00%, senior notes, due 10/15/07 .......... 5,961,063
739,000 6.75%, senior notes, due 3/15/08 ........... 678,033
7,989,096
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 23
<PAGE>
Janus | Aspen Balanced Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Diversified Financial Services - 0.1%
$ 2,000,000 Associates Corp. N.A., 6.75%
senior notes, due 7/15/01 .................. $ 1,997,500
Diversified Operations - 0.5%
13,750,000 Tyco International Group S.A., 6.875%
notes, due 9/5/02+ ......................... 13,526,562
Enterprise Software and Services - 0.2%
5,296,000 BEA Systems, Inc., 4.00%
convertible subordinated notes
due 12/15/06+ .............................. 6,176,460
Fiber Optics - 0.2%
6,000,000 Metromedia Fiber Networks, Inc., 10.00%
senior notes, due 12/15/09 ................. 6,165,000
Finance - Auto Loans - 0.2%
1,650,000 Ford Motor Credit Co., 5.80%
senior notes, due 1/12/09 .................. 1,466,438
3,327,000 General Motors Acceptance Corp., 5.85%
senior unsubordinated notes, due 1/14/09 ... 2,948,554
4,414,992
Food - Canned - 0.2%
4,500,000 Campbell Soup Co., 4.75%
notes, due 10/1/03 ......................... 4,168,125
Food - Retail - 0.4%
8,000,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08 ....... 7,790,000
3,500,000 Safeway, Inc., 6.50%
notes, due 11/15/08 ........................ 3,224,375
11,014,375
Internet Software - 1.3%
Exodus Communications, Inc.:
2,631,000 11.25%, senior notes, due 7/1/08 ........... 2,729,663
12,250,000 4.75%, convertible subordinated notes
due 7/15/08+ ............................... 16,920,313
11,660,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09 ................... 12,038,950
31,688,926
Leisure, Recreation and Gaming - 0.1%
2,324,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 ...... 1,690,710
Life and Health Insurance - 0.3%
7,000,000 AFLAC, Inc., 6.50%
senior notes, due 4/15/09 .................. 6,422,500
1,000,000 SunAmerica, Inc., 6.75%
notes, due 10/1/07 ......................... 961,250
7,383,750
Medical - Drugs - 0.1%
3,000,000 Warner-Lambert Co., 6.00%
notes, due 1/15/08 ......................... 2,763,750
Money Center Banks - 0.4%
10,800,000 HSBC Holdings PLC, 7.50%
subordinated notes, due 7/15/09 ............ 10,651,500
Multimedia - 2.2%
$ 4,500,000 News America, Inc., 6.625%
senior notes, due 1/9/08 ................... $ 4,168,125
11,640,000 Paramount Communications, Inc., 7.50%
debentures, due 7/15/23 .................... 10,272,300
10,300,000 Time Warner, Inc., 8.11%
notes, due 8/15/06 ......................... 10,531,750
Viacom, Inc.:
19,371,000 7.75%, senior notes, due 6/1/05 ............ 19,540,496
641,000 7.625%, company guaranteed notes
due 1/15/16 ................................ 624,975
Walt Disney Co. (The):
2,000,000 6.375%, senior notes, due 3/30/01 .......... 1,990,000
6,500,000 6.75%, senior notes, due 3/30/06 ........... 6,329,375
53,457,021
Property and Casualty Insurance - 0.2%
6,900,000 Progressive Corp., 6.625%
senior notes, due 3/1/29 ................... 5,692,500
Radio - 0.4%
6,659,000 Clear Channel Communications, Inc., 2.625%
convertible senior notes, due 4/1/03 ....... 9,846,996
Retail - Building Products - 0.8%
20,000,000 Home Depot, Inc., 6.50%
notes, due 9/15/04+ ........................ 19,550,000
Retail - Discount - 1.6%
Wal-Mart Stores, Inc.:
9,850,000 6.15%, senior notes, due 8/10/01 ........... 9,763,812
9,500,000 6.55%, senior notes, due 8/10/04 ........... 9,333,750
21,000,000 6.875%, senior notes, due 8/10/09 .......... 20,448,750
39,546,312
Retail - Restaurants - 0.1%
McDonald's Corp.:
3,000,000 6.50%, notes, due 8/1/07 ................... 2,876,250
500,000 5.35%, senior notes, due 9/15/08 ........... 438,125
3,314,375
Super-Regional Banks - 0.8%
16,000,000 Firstar Bank, 7.125%
subordinated notes, due 12/1/09 ............ 15,460,000
5,450,000 Northern Trust Corp., 7.10%
subordinated notes, due 8/1/09 ............. 5,293,313
20,753,313
Telecommunication Equipment - 0.5%
14,500,000 Lucent Technologies, Inc., 5.50%
notes, due 11/15/08 ........................ 12,886,875
Telecommunication Services - 2.1%
6,845,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ..... 7,272,813
14,723,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08+ .............................. 38,868,720
5,850,000 Versatel Telecom B.V., 11.875%
senior notes, due 7/15/09 .................. 5,967,000
52,108,533
Telephone - Long Distance - 1.2%
31,800,000 AT&T Corp., 6.00%
notes, due 3/15/09 ......................... 28,898,250
See Notes to Schedules of Investments.
24 Janus Aspen Series / December 31, 1999
<PAGE>
Shares or Principal Amount Market Value
================================================================================
Wireless Equipment - 3.3%
Nextel Communications, Inc.:
$ 25,342,000 9.75%, senior discount notes, due 8/15/04 .. $ 26,165,615
10,100,000 4.75%, convertible senior notes, due 7/1/07+ 22,863,875
33,000,000 9.375%, senior notes, due 11/15/09+ ........ 32,422,500
81,451,990
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $766,798,105) .................... 781,793,895
- --------------------------------------------------------------------------------
Foreign Bonds - 2.2%
Cable Television - 1.1%
GBP
14,680,000 Telewest Communications PLC, 5.25%
convertible bonds, due 2/19/07**,+ ......... 27,267,806
Finance - Other Services - 0.2%
EUR
4,400,000 Ono Finance PLC, 13.00%
company guaranteed notes, due 5/1/09+ ...... 4,559,192
Telecommunication Services - 0.9%
EUR
4,563,000 COLT Telecom Group PLC, 2.00%
convertible bonds, due 3/29/06+ ............ 10,902,147
GBP
13,950,000 NTL, Inc., 9.75%
senior notes, due 4/15/09** ................ 12,899,592
23,801,739
- --------------------------------------------------------------------------------
Total Foreign Bonds (cost $47,436,797) ....................... 55,628,737
- --------------------------------------------------------------------------------
Preferred Stock - 10.6%
Cable Television - 5.9%
371,500 Comcast Corp., convertible, 2.00%
(Sprint Corp./PCS Group) ................... 35,292,500
505,750 Cox Communications, Inc., convertible, 7.00% . 34,391,000
641,505 Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) ........................ 77,301,353
146,984,853
Cruise Lines - 1.6%
282,652 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ......................... 40,136,584
Telecommunication Services - 3.1%
394,891 Omnipoint Corp., convertible, 7.00%
(VoiceStream Wireless Corp.) ............... 77,744,166
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $191,966,665) .................... 264,865,603
- --------------------------------------------------------------------------------
Warrants - 0%
Finance - Other Services - 0%
4,400 Ono Finance PLC - expires 5/31/09*,+
(cost $0) .................................. 486,904
- --------------------------------------------------------------------------------
U.S. Government Obligations - 13.1%
U.S. Treasury Notes:
$ 75,000,000 5.875%, due 11/30/01 ....................... 74,496,000
181,275,000 5.875%, due 11/15/04 ....................... 177,662,189
79,100,000 6.00%, due 8/15/09 ......................... 76,631,289
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $335,267,836) ........ 328,789,478
- --------------------------------------------------------------------------------
Repurchase Agreement - 2.0%
$ 51,100,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $51,119,375 collateralized
by $13,357,926 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $56,016,891
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$9,678,932 and $42,443,068
(cost $51,100,000) ......................... $ 51,100,000
- --------------------------------------------------------------------------------
Total Investments (cost $2,052,852,851) - 97.0% .............. 2,432,312,741
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 3.0% 74,364,076
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $2,506,676,817
- --------------------------------------------------------------------------------
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 0.6% $ 13,526,562
Finland 2.0% 49,492,266
Netherlands 0.2% 5,967,000
Spain 1.1% 26,707,073
United Kingdom 4.0% 96,297,813
United States++ 92.1% 2,240,322,027
- --------------------------------------------------------------------------------
Total 100.0% $2,432,312,741
++Includes Short-Term Securities (90.0% excluding Short-Term Securities)
Forward Currency Contracts, Open at December 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 8,800,000 $ 14,234,000 $ 311,672
British Pound 4/20/00 4,500,000 7,278,750 192,598
- --------------------------------------------------------------------------------
Total $ 21,512,750 $ 504,270
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 25
<PAGE>
Janus | Aspen Equity Income Portfolio
[PHOTO]
Blaine Rollins
portfolio manager
For the fiscal year ended December 31, 1999, Janus Aspen Equity Income Portfolio
gained 41.58% for its Institutional Shares and 40.94% for its Retirement Shares,
comparing favorably with its benchmark index, the S&P 500, which returned
21.03%.(1) This strong performance earned the Portfolio a top-decile ranking,
placing it 2nd out of 41 equity income portfolios tracked by Lipper, Inc., a
leading mutual fund rating company.(2)
Although equity market indexes reached all-time highs during the year, driven
primarily by technology stocks, investors still experienced a bumpy ride as
ongoing concerns about an overheating economy fueled fears of rising inflation.
As the jobless rate continued to hover near historical lows and wages threatened
to creep higher, three Federal Reserve interest-rate hikes did little to slow a
robust U.S. economy powered by strong consumer spending. Surprisingly, equity
markets remained narrow, and many blue-chip names underperformed. Even so, our
hands-on research uncovered a number of outstanding companies, particularly in
the wireless telecommunications, cable and media industries. On the other hand,
the Fed's actions negatively impacted the bond market, which endured its worse
year since 1994. Therefore, we opportunistically added high-yield fixed-income
investments to enhance yield and deploy excess cash.
Turning to a detailed discussion of the Portfolio's holdings, "productivity
enabler" is a label we apply to businesses that are finding new ways to help
customers improve their output and efficiency. Our wireless telecommunications
stocks certainly fall into this category. With worldwide cellular phone
penetration rates exceeding all expectations, we increased our position in
market leader Nokia and added VoiceStream Wireless (through the Omnipoint
convertible preferred stock) and Nextel Communications.
What's more, the global explosion in wireless has benefited not only those
companies, but it's created a strong tailwind for holdings such as Texas
Instruments, Linear Technology and Maxim Integrated Products as well. Texas
Instruments is the leading manufacturer of digital signal processors (DSPs), a
key component of cellular phones that converts light, sound and other signals
into computer language. Linear and Maxim make integrated chips that translate
analog data into digital information for small electronic devices like cellular
phones. With more and more people going wireless and new leading-edge
applications being introduced at a rapid pace, we remain extremely optimistic
about the future prospects for our wireless companies and the industry as a
whole.
Cable is another fast-growing area that helped boost performance. Long-time
holding Time Warner (via the Reliant Energy, Inc. convertible preferred stock)
allowed us to participate in the upside movement of Time Warner's stock and
achieve an attractive yield at the same time. Other cable winners included
Comcast and Cox Communications. Capitalizing on the growth in networking and
broadband telecommunications, both of these companies provide the vital
pipelines that allow digital cable, telephony, expanded video offerings and
high-speed Internet access to be delivered over a single platform. As demand for
these value-added services intensifies, we're confident our cable holdings will
continue to reward us with exceptional results.
Like Time Warner, worldwide entertainment and media giant Viacom is a play on
both cable and media. Recently, the company turned its attention toward network
television, announcing plans to acquire CBS. If the merger is approved, Viacom,
which owns a number of other media properties including MTV, Nickelodeon, VH1
and Paramount Studios, will gain valuable access to TV distribution and radio
via CBS's Infinity Broadcasting. As the number of commuters and commute times
continue to increase, Infinity is poised to benefit from a captive and growing
audience. Given these positive factors, we're excited about the long-term
potential for the combined organization.
Despite our many successes, we did experience a few setbacks. Auto insurers
Mutual Risk Management and Progressive Corporation suffered from an extremely
competitive price environment, and we subsequently sold both positions at a
loss. Another holding that failed to meet our expectations is automotive
supplier Federal-Mogul. Ongoing softness in the auto parts aftermarket, along
with increased competition from Ford and GM, which are creating their own
Web-based supplier exchanges, combined to depress Federal-Mogul's earnings. As a
result, we decided to liquidate the stock in favor of other compelling ideas.
In closing, I want to reiterate that we are steadfastly focused, as always, on
finding companies that are growing their top line and improving returns on
capital, with superior management teams committed to adding value for their
shareholders. As I turn over management responsibilities to Karen L. Reidy at
year-end, our investors can expect a continuation of that same strategy. In her
role as assistant portfolio manager, Karen made significant contributions to our
success. For that reason, we're tremendously confident in her abilities and know
this transition will be a smooth one.
Thank you for investing in Janus Aspen Equity Income Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 64.1% 61.9%
Number of Stocks 51 47
Top 10 Equities/Preferred
(% of Assets) 31.8% 39.2%
Fixed-Income Securities
Investment-Grade
Corporate Bonds -- --
High-Yield/High-Risk
Corporate Bonds 14.7% 12.7%
Preferred Stock 14.0% 21.2%
Cash & Cash Equivalents 7.2% 4.2%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines an equity income portfolio as "a portfolio which seeks
relatively high current income and growth of income through investing 60%
or more of its portfolio in equities." The ranking is for Institutional
Shares and based on total return, including reinvestment of dividends and
capital gains for the stated period.
Past performance does not guarantee future results.
26 Janus Aspen Series / December 31, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/97)
1 Year 41.58%
From Inception 46.87%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 21.03%
From Portfolio Inception 27.40%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 40.94%
From Inception 46.15%
- --------------------------------------------------------------------------------
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 41.58%
Since 5/1/97,* 46.87%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Equity Income Portfolio - Institutional Shares and the S&P 500
Index. Janus Aspen Equity Income Portfolio - Institutional Shares is represented
by a shaded area of green. The S&P 500 Index is represented by a solid black
line. The "y" axis reflects the value of the investment. The "x" axis reflects
the computation periods from inception, May 1, 1997, through December 31, 1999.
The lower right quadrant reflects the ending value of the hypothetical
investment in Janus Aspen Equity Income Portfolio - Institutional Shares
($27,890) as compared to the S&P 500 Index ($19,075).
Janus Aspen Equity Income Portfolio
- - Institutional Shares - $27,890
S&P 500 Index - $19,075
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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
Shares or Principal Amount Market Value
================================================================================
Common Stock - 64.1%
Brewery - 1.0%
2,790 Anheuser-Busch Companies, Inc. ............... $ 197,741
Broadcast Services and Programming - 2.8%
9,500 AT&T Corp./Liberty Media Group - Class A* .... 539,125
Cable Television - 3.0%
9,634 Comcast Corp. - Special Class A .............. 484,109
1,772 Cox Communications, Inc. - Class A* .......... 91,257
575,366
Cellular Telecommunications - 1.0%
1,970 Nextel Communications, Inc. - Class A* ....... 203,155
Circuits - 2.5%
3,360 Linear Technology Corp. ...................... 240,450
5,315 Maxim Integrated Products, Inc.* ............. 250,801
491,251
Commercial Banks - 0.4%
4,145 Carolina First Corp. ......................... 75,646
Commercial Services - 0.7%
3,277 Paychex, Inc. ................................ 131,080
Computer Data Security - 0.4%
405 VeriSign, Inc.* .............................. 77,330
Computer Software - 2.4%
4,060 Microsoft Corp.* ............................. 474,005
Computers - Memory Devices - 2.5%
4,385 EMC Corp.* ................................... 479,060
Cruise Lines - 0.5%
2,168 Royal Caribbean Cruises, Ltd. ................ 106,910
Data Processing and Management - 2.1%
7,500 Automatic Data Processing, Inc. .............. $ 404,063
Distribution and Wholesale - 0.9%
1,975 Costco Wholesale Corp.* ...................... 180,219
Diversified Financial Services - 1.0%
3,440 Citigroup, Inc. .............................. 191,135
Diversified Operations - 3.7%
4,595 General Electric Co. ......................... 711,076
Electronic Components - Semiconductors - 1.0%
2,035 Texas Instruments, Inc. ...................... 197,141
Finance - Credit Card - 2.7%
3,150 American Express Co. ......................... 523,688
Finance - Investment Bankers/Brokers - 1.3%
6,629 Charles Schwab Corp. ......................... 254,388
Finance - Mortgage Loan Banker - 1.0%
3,145 Fannie Mae ................................... 196,366
Life and Health Insurance - 2.4%
23,789 Prudential PLC** ............................. 468,773
Medical - Biomedical and Genetic - 1.2%
1,780 Genentech, Inc.* ............................. 239,410
Medical - Drugs - 1.6%
4,405 AstraZeneca Group PLC (ADR)** ................ 183,909
3,080 Schering-Plough Corp. ........................ 129,938
313,847
Money Center Banks - 0.5%
2,350 Bank of New York Company, Inc. ............... 94,000
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 27
<PAGE>
Janus | Aspen Equity Income Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Multi-Line Insurance - 1.5%
2,715 American International Group, Inc. ........... $ 293,559
Multimedia - 3.8%
12,140 Viacom, Inc. - Class B* ...................... 733,711
Networking Products - 2.7%
4,890 Cisco Systems, Inc.* ......................... 523,840
Optical Supplies - 0.7%
2,880 Allergan, Inc. ............................... 143,280
Pipelines - 2.0%
8,945 Enron Corp. .................................. 396,934
Radio - 3.1%
3,335 Hispanic Broadcasting Corp.* ................. 307,550
8,385 Infinity Broadcasting Corp. - Class A* ....... 303,432
610,982
Retail - Building Products - 2.2%
6,183 Home Depot, Inc. ............................. 423,922
Retail - Computer Equipment - 0.6%
2,935 Insight Enterprises, Inc.* ................... 119,234
Retail - Office Supplies - 0.6%
5,305 Staples, Inc.* ............................... 110,079
Retail - Restaurants - 0.9%
4,205 McDonald's Corp. ............................. 169,514
Super-Regional Banks - 0.2%
1,725 Firstar Corp. ................................ 36,441
Telecommunication Equipment - 5.1%
3,130 Lucent Technologies, Inc. .................... 234,163
384 Nokia Oyj .................................... 69,535
3,568 Nokia Oyj (ADR) .............................. 677,920
981,618
Telephone - Integrated - 1.1%
8,176 Telefonica S.A.* ............................. 203,981
205 Telefonica S.A. (ADR)* ....................... 16,156
220,137
Telephone - Local - 0.5%
1,215 ALLTEL Corp. ................................. 100,465
Television - 2.5%
4,697 Univision Communications, Inc. - Class A* .... 479,975
- --------------------------------------------------------------------------------
Total Common Stock (cost $8,460,134) ......................... 12,468,466
- --------------------------------------------------------------------------------
Corporate Bonds - 12.9%
Advertising Agencies - 0.1%
$ 6,000 Omnicom Group, Inc., 4.25%
convertible subordinated debentures
due 1/3/07 ................................. 19,080
Advertising Sales - 0.9%
123,000 Lamar Advertising Co., 5.25%
convertible notes, due 9/15/06 ............. 179,273
Cellular Telecommunications - 0.8%
20,000 Orange PLC, 9.00%
senior notes, due 6/1/09 ................... 21,200
130,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09+ ................ 133,575
154,775
Computers - Memory Devices - 1.1%
160,000 EMC Corp., 6.00%
convertible subordinated notes
due 5/15/04 ................................ 219,000
Enterprise Software and Services - 1.4%
$ 42,000 BEA Systems, Inc., 4.00%
convertible subordinated notes
due 12/15/06+ .............................. $ 48,983
150,000 i2 Technologies, Inc., 5.25%
convertible subordinated notes
due 12/15/06+ .............................. 214,688
263,671
Fiber Optics - 0.3%
50,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 12/15/09 ................. 51,375
Internet Software - 1.4%
100,000 Exodus Communications, Inc., 4.75%
convertible subordinated notes, due 7/15/08+ 138,125
125,000 PSINet, Inc., 11.00%
senior notes, due 8/1/091 .................. 29,063
267,188
Radio - 1.0%
137,000 Clear Channel Communications, Inc., 2.625%
convertible senior notes, due 4/1/03 ....... 202,589
Telecommunication Services - 3.4%
50,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ..... 53,125
234,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08+ .............................. 617,760
670,885
Wireless Equipment - 2.5%
Nextel Communications, Inc.:
282,000 9.75%, senior discount notes, due 8/15/04 .. 291,165
197,000 9.375%, senior notes, due 11/15/09+ ........ 193,553
484,718
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $2,023,679) ...................... 2,512,554
- --------------------------------------------------------------------------------
Foreign Bond - 1.8%
Cable Television - 1.8%
GBP
183,000 Telewest Communications PLC, 5.25%
convertible bonds, due 2/19/07**,+
(cost $290,678) ............................ 339,919
- --------------------------------------------------------------------------------
Preferred Stock - 14.0%
Automotive - Cars and Light Trucks - 0.9%
64 Porsche A.G .................................. 175,124
Cable Television - 3.7%
4,000 Comcast Corp., convertible, 2.00%
(Sprint Corp./PCS Group) ................... 380,000
5,000 Cox Communications, Inc.
convertible, 7.00% ......................... 340,000
720,000
Cruise Lines - 2.0%
2,700 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ......................... 383,400
Electric - Integrated - 3.1%
5,030 Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) ........................ 606,115
Telecommunication Services - 4.3%
4,252 Omnipoint Corp., convertible, 7.00% .......... 837,113
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $2,013,209) ...................... 2,721,752
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
28 Janus Aspen Series / December 31, 1999
<PAGE>
Shares or Principal Amount Market Value
================================================================================
Repurchase Agreement - 6.2%
$ 1,200,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $1,200,455 collateralized
by $313,689 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $1,315,465
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of $227,294
and $996,706 (cost $1,200,000) ............. $ 1,200,000
- --------------------------------------------------------------------------------
Total Investments (total cost $13,987,700) - 99.0% ........... 19,242,691
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 1.0% 196,223
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 19,438,914
- --------------------------------------------------------------------------------
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Finland 3.9% $ 747,455
Germany 0.9% 175,124
Spain 1.1% 220,137
United Kingdom 5.3% 1,013,801
United States++ 88.8% 17,086,174
- --------------------------------------------------------------------------------
Total 100.0% $ 19,242,691
++Includes Short-Term Securities (82.6% excluding Short-Term Securities)
Forward Currency Contracts, Open at December 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/7/00 125,000 $ 202,187 $ 3,265
British Pound 4/20/00 15,000 24,263 94
- --------------------------------------------------------------------------------
Total $ 226,450 $ 3,359
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 29
<PAGE>
Janus | Aspen Growth and Income Portfolio
[PHOTO]
David Corkins
portfolio manager
I'm pleased to report that for the fiscal year ended December 31, 1999, Janus
Aspen Growth and Income Portfolio appreciated 74.04% for its Institutional
Shares and 73.20% for its Retirement Shares. These gains substantially outpaced
the Portfolio's benchmark, the Standard & Poor's 500 Index, which returned
21.03%.(1) They also earned the Portfolio a top-decile ranking, placing it 1st
out of 174 growth and income portfolios tracked by Lipper, Inc., a leading
mutual fund rating company.(2)
Despite three short-term interest rate hikes designed to rein in a
record-setting economic expansion, growth stocks continued to surge ahead this
year, with some minor volatility along the way. On the downside, the market
remained narrow as few sectors outside technology participated in this powerful
growth rally. So while technology, cable and wireless communications are still
favorite Portfolio themes, my strategy for managing volatility is to keep my
feet in two camps: one in the brand-name tech franchises posting phenomenal
returns and one in the consistent "steady Eddie" blue-chip stocks the market has
recently ignored in favor of the highfliers.
Either way, the Portfolio's emphasis is on growth, focusing on well-managed,
high-return businesses selling at attractive prices. As always, to balance our
growth-oriented holdings, we maintain a smaller position in income-producing
investments, including dividend-paying stocks, convertible securities and
high-yield bonds. Thanks to the diligent efforts of our outstanding team of
equity and income research analysts, we enjoyed considerable success this year.
Contributing to that success were our cable stocks, in particular, AT&T Liberty
Media Group. With media visionary and former TCI chairman John Malone at the
helm, Liberty Media has created enormous shareholder value from a conglomerate
of fast-growing cable holdings, including Discovery Channel, E!, QVC and USA
Networks, not to mention numerous music and online properties. What's more,
Liberty Media owns a stake in Time Warner, another favorite position in the
Portfolio. As the company explores other avenues for investment, we remain
enthusiastic in our outlook for Liberty Media - and the cable group as a whole.
Wireless communications is another high-growth business that continues to excite
us. With the number of cellular phone subscribers expected to reach one billion
by the end of 2002 - a year earlier than previously forecast - the Portfolio is
poised to benefit from long-time holdings in Nokia and Sprint PCS as well as
newer positions in Nextel Communications and VoiceStream Wireless. Not only is
the global explosion in wireless aiding our companies, but so is the
introduction of several breakthrough applications. For example, Nokia's rapid
adoption of wireless application protocol (WAP) - a feature that allows users to
access the Internet from their cellular phones - should help drive demand for
its products well into the future. With these factors in our favor, we're very
optimistic about the prospects for our wireless holdings going forward.
As mentioned earlier, to capture the powerful upside growth of technology while
limiting the downside risk inherent in this rapidly evolving industry, we prefer
to invest in well-known, established names such as Microsoft, America Online
(AOL), Cisco Systems and Sun Microsystems. Together with new position Liberate
Technologies, these forward-looking, dynamic companies significantly boosted
performance. Backed by some powerful technology players like Lucent
Technologies, Sun and AOL, Liberate makes software that will let consumers surf
the Web via their TVs, cell phones or other devices. Even better, Liberate's
software can be integrated with other operating systems, giving its product more
flexibility and a competitive advantage. That being the case, we expect this
combination of new positions and mainstay holdings to continue to enhance our
performance in the future.
While our successes far outweighed our disappointments, some stocks did prove a
drag on performance. Automotive supplier Federal-Mogul stumbled as a result of
an ongoing softness in the auto parts aftermarket. Furthermore, prospects for
recovery seem unlikely as corporations like Ford and GM create Web-based
supplier exchanges that will push prices down even farther. As a result, we
decided to liquidate our position at a loss. Tyco International was another
disappointment. This diversified manufacturing company took a hit on allegations
of accounting irregularities related to recent acquisitions, and although we
feel confident the SEC's investigation will vindicate Tyco, we elected to
liquidate our position and redeploy our assets in more compelling ideas.
In closing, we remain cautiously optimistic about the economy going forward. All
signs point to continuing economic growth with few indications of price or wage
pressures on the horizon. However, our single-minded focus is not on predicting
the future, but on finding well managed, high-quality companies that can perform
in any economic environment.
Thank you for investing in Janus Aspen Growth and Income Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Equities 77.7% 83.3%
Number of Stocks 94 73
Top Ten Equities (% of Assets) 27.7% 31.1%
Fixed-Income Securities 4.7% 0.7%
Cash and Cash Equivalents 17.6% 16.0%
- --------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a growth and income portfolio as one that "combines a
growth of earnings orientation and an income requirement for level and/or
rising dividends." The ranking is for Institutional Shares and based on
total return, including reinvestment of dividends and capital gains for the
stated period.
Past performance does not guarantee future results.
30 Janus Aspen Series / December 31, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/98)
1 Year 74.04%
From Inception 55.33%
- --------------------------------------------------------------------------------
S&P 500 Index
1 Year 21.03%
From Portfolio Inception 19.85%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/98)
1 Year 73.20%
From Inception 54.57%
- --------------------------------------------------------------------------------
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 74.04%
Since 5/1/98,* 55.33%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Growth and Income Portfolio - Institutional Shares and the S&P
500 Index. Janus Aspen Growth and Income Portfolio - Institutional Shares is
represented by a shaded area of green. The S&P 500 Index is represented by a
solid black line. The "y" axis reflects the value of the investment. The "x"
axis reflects the computation periods from inception, May 1, 1998, through
December 31, 1999. The lower right quadrant reflects the ending value of the
hypothetical investment in Janus Aspen Growth and Income Portfolio -
Institutional Shares ($20,850) as compared to the S&P 500 Index ($13,522).
Janus Aspen Growth and Income Portfolio
- - Institutional Shares - $20,850
S&P 500 Index - $13,522
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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
Shares or Principal Amount Market Value
================================================================================
Common Stock - 76.1%
Advertising Agencies - 0.3%
2,700 Omnicom Group, Inc. .......................... $ 270,000
Advertising Services - 0.3%
2,000 TMP Worldwide, Inc.* ......................... 284,000
Aerospace and Defense - 0.4%
6,000 Honeywell International, Inc. ................ 346,125
Automotive - Cars and Light Trucks - 0.2%
4,000 Ford Motor Co. ............................... 213,750
Brewery - 1.1%
14,000 Anheuser-Busch Companies, Inc. ............... 992,250
Broadcast Services and Programming - 3.4%
45,000 AT&T Corp./Liberty Media Group - Class A* .... 2,553,750
5,000 Clear Channel Communications, Inc.* .......... 446,250
8,065 Four Media Co.* .............................. 119,967
3,119,967
Cable Television - 4.8%
4,800 Adelphia Communications Corp. - Class A* ..... 315,000
21,000 Charter Communications, Inc. - Class A* ...... 459,375
47,000 Comcast Corp. - Special Class A .............. 2,361,750
21,000 Cox Communications, Inc. - Class A* .......... 1,081,500
2,500 MediaOne Group, Inc.* ........................ 192,031
4,409,656
Cellular Telecommunications - 4.7%
2,000 Aerial Communications, Inc.* ................. $ 121,750
11,000 Crown Castle International Corp.* ............ 353,375
8,000 Nextel Communications, Inc. - Class A* ....... 825,000
6,200 Omnipoint Corp.* ............................. 747,875
7,000 Sprint Corp./PCS Group* ...................... 717,500
11,000 VoiceStream Wireless Corp.* .................. 1,565,438
4,330,938
Chemicals - Diversified - 0.2%
11,000 Solutia, Inc. ................................ 169,812
Circuits - 0.2%
3,000 Maxim Integrated Products, Inc.* ............. 141,562
Commercial Services - 0.4%
2,600 Official Payments Corp.* ..................... 135,200
6,700 Paychex, Inc. ................................ 268,000
403,200
Computer Data Security - 2.1%
10,000 VeriSign, Inc.* .............................. 1,909,375
Computer Software - 1.9%
15,000 Microsoft Corp.* ............................. 1,751,250
Computers - Memory Devices - 2.4%
20,000 EMC Corp.* ................................... 2,185,000
Computers - Micro - 4.0%
11,500 Dell Computer Corp.* ......................... 586,500
40,000 Sun Microsystems, Inc.* ...................... 3,097,500
3,684,000
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 31
<PAGE>
Janus | Aspen Growth and Income Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Cruise Lines - 0.3%
6,000 Royal Caribbean Cruises, Ltd. ................ $ 295,875
Distribution and Wholesale - 1.9%
76,040 Brightpoint, Inc.* ........................... 998,025
8,000 Costco Wholesale Corp.* ...................... 730,000
1,728,025
Diversified Financial Services - 1.3%
21,000 Citigroup, Inc. .............................. 1,166,813
Diversified Operations - 2.7%
16,000 General Electric Co. ......................... 2,476,000
Electronic Components - Semiconductors - 1.9%
3,000 Intel Corp. .................................. 246,937
15,000 Texas Instruments, Inc. ...................... 1,453,125
1,700,062
Entertainment Software - 0.5%
5,000 Electronic Arts, Inc.* ....................... 420,000
Fiber Optics - 2.5%
13,000 JDS Uniphase Corp.* .......................... 2,097,063
4,000 Metromedia Fiber Network, Inc. - Class A* .... 191,750
2,288,813
Finance - Credit Card - 1.3%
7,000 American Express Co. ......................... 1,163,750
Finance - Investment Bankers/Brokers - 0.1%
3,300 Charles Schwab Corp. ......................... 126,637
Finance - Mortgage Loan Banker - 0.6%
9,000 Fannie Mae ................................... 561,938
Internet Content - 1.2%
3,465 Critical Path, Inc.* ......................... 327,009
3,000 DoubleClick, Inc.* ........................... 759,188
1,086,197
Internet Software - 8.0%
16,000 America Online, Inc.* ........................ 1,207,000
4,020 CacheFlow, Inc.* ............................. 525,364
6,000 EarthLink Network, Inc.* ..................... 255,000
2,000 Inktomi Corp.* ............................... 177,500
8,000 Internap Network Services Corp.* ............. 1,384,000
10,000 Liberate Technologies, Inc.* ................. 2,570,000
3,000 pcOrder.com, Inc.* ........................... 153,000
4,000 Phone.com, Inc.* ............................. 463,750
3,300 Vignette Corp.* .............................. 537,900
7,273,514
Machinery - General Industrial - 0.8%
3,000 Mannesmann A.G ............................... 730,356
Medical - Biomedical and Genetic - 0.6%
4,400 Genentech, Inc.* ............................. 591,800
Medical - Drugs - 2.1%
10,000 King Pharmaceuticals, Inc.* .................. 560,625
5,000 Medco Research, Inc.* ........................ 150,313
19,000 Pfizer, Inc. ................................. 616,313
14,000 Schering-Plough Corp. ........................ 590,625
1,917,876
Medical Instruments - 0.8%
20,500 Medtronic, Inc. .............................. 746,969
Multi-Line Insurance - 0.9%
8,000 American International Group, Inc. ........... 865,000
Multimedia - 3.6%
24,000 Time Warner, Inc. ............................ $ 1,738,500
25,000 Viacom, Inc. - Class B* ...................... 1,510,937
3,249,437
Music/Clubs - 0.5%
12,500 SFX Entertainment, Inc.* ..................... 452,344
Networking Products - 3.5%
30,000 Cisco Systems, Inc.* ......................... 3,213,750
Optical Recognition Software - 0.3%
5,015 Digimarc Corp.* .............................. 250,750
Optical Supplies - 0.2%
2,800 Allergan, Inc. ............................... 139,300
Pipelines - 1.7%
36,000 Enron Corp. .................................. 1,597,500
Property and Casualty Insurance - 0.2%
7,200 Mutual Risk Management, Ltd. ................. 121,050
995 Progressive Corp. ............................ 72,759
193,809
Radio - 1.0%
1,000 AMFM, Inc.* .................................. 78,250
4,000 Entercom Communications Corp.* ............... 264,000
3,100 Hispanic Broadcasting Corp.* ................. 285,878
7,000 Infinity Broadcasting Corp. - Class A* ....... 253,313
881,441
Real Estate Investment Trusts - 0.3%
12,500 Walden Residential Properties, Inc. .......... 270,312
Retail - Building Products - 0.9%
12,000 Home Depot, Inc. ............................. 822,750
Retail - Internet - 0.1%
1,000 eBay, Inc.* .................................. 125,187
Retail - Offfice Space - 0.5%
24,000 Staples, Inc.* ............................... 498,000
Super-Regional Banks - 1.0%
2,000 Bank One Corp. ............................... 64,125
40,000 Firstar Corp. ................................ 845,000
909,125
Telecommunication Equipment - 4.8%
9,000 Lucent Technologies, Inc. .................... 673,313
15,000 Nokia Oyj (ADR) .............................. 2,850,000
8,500 Nortel Networks Corp. ........................ 858,500
4,381,813
Telecommunication Services - 1.1%
1,000 Allegiance Telecom, Inc.* .................... 92,250
15,000 McLeodUSA, Inc. - Class A* ................... 883,125
975,375
Telephone - Integrated - 2.4%
16,000 CenturyTel, Inc. ............................. 758,000
10,500 MCI WorldCom, Inc.* .......................... 557,156
36,849 Telefonica S.A.* ............................. 919,338
2,234,494
Toys - 0.1%
7,000 Mattel, Inc. ................................. 91,875
- --------------------------------------------------------------------------------
Total Common Stock (cost $46,573,438) ........................ 69,637,772
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
32 Janus Aspen Series / December 31, 1999
<PAGE>
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 4.7%
Cable Television - 0.2%
$ 5,000 Adelphia Communications Corp., 7.75%
senior notes, due 1/15/09 .................. $ 4,513
130,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09 ........... 120,250
124,763
Cellular Telecommunications - 0.1%
100,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09+ ................ 102,750
Computers - Micro - 0.2%
200,000 Sun Microsystems, Inc., 7.50%
senior notes, due 8/15/06 .................. 200,750
Diversified Financial Services - 0.6%
General Electric Capital Corp.:
75,000 6.52%, notes, due 10/8/02 .................. 74,250
500,000 6.81%, notes, due 11/3/03 .................. 495,000
569,250
Enterprise Software and Services - 1.6%
1,000,000 BEA Systems, Inc., 4.00%,
convertible subordinated notes,
due 12/15/06+ .............................. 1,166,250
200,000 i2 Technologies, Inc., 5.25%
convertible subordinated notes,
due 12/15/06+ .............................. 286,250
1,452,500
Food - Retail - 0%
7,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08 ....... 6,816
Internet Software - 0%
30,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ................... 31,125
Radio - 0.2%
196,000 Clear Channel Communications, Inc., 1.50%
convertible notes, due 12/1/02 ............. 200,410
Retail - Internet - 0.1%
104,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures,
due 2/1/09+ ................................ 117,650
Super-Regional Banks - 0.5%
500,000 Firstar Bank N.A., 7.125%
subordinated notes, due 12/1/09 ............ 483,125
Telecommunication Services - 1.2%
25,000 Allegiance Telecom, Inc., 12.875%
senior notes, due 5/15/08 .................. 27,594
3,000 Level 3 Communications, Inc., 9.125%
senior notes, due 5/1/08 ................... 2,827
NTL, Inc.:
83,000 7.00%, convertible subordinated notes,
due 12/15/08+ .............................. 219,120
750,000 5.75%, convertible subordinated notes,
due 12/15/09+ .............................. 806,250
1,055,791
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $3,937,368) ...................... 4,344,930
- --------------------------------------------------------------------------------
Preferred Stock - 1.6%
Automotive - Cars and Light Trucks - 0.4%
115 Porsche A.G .................................. $ 314,677
Cable Television - 0.6%
1,250 Adelphia Communications Corp.
- Series D, convertible, 5.50% ............. 235,156
3,000 MediaOne Group, Inc.
convertible, 6.25%
(Vodafone AirTouch PLC (ADR)) .............. 324,000
559,156
Cruise Lines - 0%
70 Royal Caribbean Cruises, Ltd.
convertible, 7.25% ......................... 9,940
Electric - Integrated - 0.3%
2,200 Reliant Energy, Inc.
convertible, 7.00% (Time Warner, Inc.) ..... 265,100
Finance - Other Services - 0.3%
900 TCI Pacific Communications, Inc.
- Series A, convertible, 5.00%
(AT&T Corp.) ............................... 277,457
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $1,316,499) ...................... 1,426,330
- --------------------------------------------------------------------------------
Repurchase Agreement - 18.5%
$ 16,900,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $16,906,408 collateralized
by $4,417,788 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $18,526,134
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$3,201,056 and $14,036,944
(cost $16,900,000) ......................... 16,900,000
- --------------------------------------------------------------------------------
Total Investments (total cost $68,727,305) - 100.9% .......... 92,309,032
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.9%) (847,001)
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 91,462,031
- --------------------------------------------------------------------------------
Summary of Investments by Country, December 31, 1999
Country % of Investment Securities Market Value
- --------------------------------------------------------------------------------
Bermuda 0.1% $ 121,050
Canada 1.0% 858,500
Finland 3.1% 2,850,000
Germany 1.1% 1,045,033
Spain 1.0% 919,338
United States++ 93.7% 86,515,111
- --------------------------------------------------------------------------------
Total 100.0% $ 92,309,032
++Includes Short-Term Securities (75.4% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 33
<PAGE>
Janus | Aspen Flexible Income Portfolio
[PHOTO]
Ronald Speaker
portfolio manager
For the fiscal year ended December 31, 1999, Janus Aspen Flexible Income
Portfolio returned 1.60% for its Institutional Shares and 0.90% for its
Retirement Shares. This compares with a (2.15)% decline posted by its benchmark,
the Lehman Brothers Government/Corporate Bond Index.(1)
The fixed-income markets faced strong headwinds throughout the year as
above-trend growth in the U.S. ignited fears of inflation and pushed both long-
and short-term interest rates higher. Despite the Federal Reserve's three
quarter-point increases in short-term rates during the second half of the
period, the economy continued to grow at a fast clip. Meanwhile, bond prices
trended lower, particularly those of longer-dated, rate-sensitive securities
such as Treasuries and investment-grade bonds.
In this challenging environment, we decreased the Portfolio's sensitivity to
rising interest rates by reducing our weighting in Treasury bonds and focusing
primarily on securities within the two- to 10-year maturity range. We also
upgraded the credit quality of our investment-grade holdings, adding positions
in well-financed companies such as Procter & Gamble and Wal-Mart.
Meanwhile, in the high-yield arena, demand fell considerably short of supply
because of Y2K-related liquidity fears and competition from high-flying
technology stocks. Fortunately, our intensive, proprietary research led us to
several high-yield bonds that benefited from either capital infusions from
leveraged buyout firms or the market's increasing recognition of the strategic
value of these companies. In turn, many of them proved capable of successfully
withstanding broader market pressures and rewarded us with solid results.
One of our best performers in the high-yield area was NorthEast Optic Network, a
fiber-optic network operator in the northeastern U.S. and a recent addition to
the Portfolio. Benefiting from high demand for its services, NorthEast also
gained on news of a hefty investment made by energy holding company Consolidated
Edison - money NorthEast will use to make further improvements to its business.
A similar scenario unfolded for RCN, a competitive local exchange carrier that
provides telecom services in the Boston-Washington, D.C., corridor. Like
NorthEast, RCN received a sizeable equity infusion from investors during the
period, helping our holding appreciate in value.
Our focus on quality also led us to companies we believed had the potential to
"graduate" to a higher credit rating. For example, when our analysis of life
insurer and consumer lender Conseco revealed an improving balance sheet and,
therefore, the possibility of a rating upgrade, we invested. Several months
later, a $500 million investment made by an outside firm along with stronger
cash flow earned Conseco a better rating, sending the bonds higher.
We also benefited from our positions in several yield-to-call bonds, including
supermarket operator Star Markets. The company's strong U.S.-based cash flows
and generous yields served as an excellent cushion and contributed to the
Portfolio's results throughout much of the year. Subsequently, Star Markets
refinanced its debt, calling in its bonds. Our performance was also aided by
Unilab, California's largest medical testing company. Unilab appreciated
following the announcement of a buyout by the private investment group Kelso &
Company. We further benefited from Unilab's decision to call its bonds at a
premium to our purchase price.
Unfortunately, not all of our holdings met expectations. As I mentioned earlier,
Treasuries suffered under the weight of rising interest rates, and despite
reducing the Portfolio's exposure to these securities, their poor performance
still managed to detract from our overall results. Another disappointment was
our high-yield position in Tokheim, a manufacturer of gas pumps. The company's
revenues declined when industry consolidation issues caused the delay of several
big orders at the company, and we consequently sold the position.
Looking ahead, given that the Federal Reserve's three rate hikes have yet to
substantially slow the economy, additional increases may be necessary. However,
we believe this challenging environment can work in our favor and are using it
as an opportunity to put our cash to work. That said, we continue to search for
credits that offer solid interest income as well as the potential for stable or
appreciating prices.
In closing, we'd like to thank you for your continued investment in Janus Aspen
Flexible Income Portfolio.
Portfolio Asset Mix December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Corporate Bonds
Investment Grade/Warrants 39.1% 36.0%
High-Yield/High-Risk 30.4% 26.0%
U.S. Government Bonds 7.8% 23.8%
Foreign Dollar/
Non-Dollar Bonds 8.4% 1.6%
Preferred Stock 1.7% 2.4%
Cash & Cash Equivalents 12.6% 10.2%
- --------------------------------------------------------------------------------
Portfolio Profile
- --------------------------------------------------------------------------------
Weighted Average Maturity 6.5 Yrs. 8 7 Yrs.
Average Modified Duration* 4.5 Yrs. 6 0 Yrs.
30-Day Average Yield**
Institutional Shares** 8.22% 6.21%
Retirement Shares** 7.56% 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 / December 31, 1999
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 1.60%
5 Year 10.88%
From Inception 8.50%
- --------------------------------------------------------------------------------
Lehman Brothers Govt./Corp. Bond Index
1 Year (2.15)%
5 Year 7.61%
From Inception Date of Institutional Shares 5.40%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 0.90%
5 Year 10.24%
From Portfolio Inception 7.89%
- --------------------------------------------------------------------------------
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.
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 1.60%
Five Year, 10.88%
Since 9/13/93,* 8.50%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen Flexible Income Portfolio - Institutional Shares and the Lehman
Brothers Govt./Corp. Bond Index. Janus Aspen Flexible Income Portfolio -
Institutional Shares is represented by a shaded area of green. The Lehman
Brothers Govt./Corp. Bond Index is represented by a solid black line. The "y"
axis reflects the value of the investment. The "x" axis reflects the computation
periods from inception, September 13, 1993, through December 31, 1999. The lower
right quadrant reflects the ending value of the hypothetical investment in Janus
Aspen Flexible Income Portfolio - Institutional Shares ($16,721) as compared to
the Lehman Brothers Govt./Corp. Bond Index ($13,928).
Janus Aspen Flexible Income Portfolio
- - Institutional Shares - $16,721
Lehman Brothers Govt./Corp. Bond Index - $13,928
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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. Investing in high-yield/high-risk securities may entail greater risk.
Past performance does not guarantee future results.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 71.2%
Automotive - Cars and Light Trucks - 2.1%
$ 4,000,000 DaimlerChrysler N.A. Holding Corp., 7.20%
company guaranteed notes, due 9/1/09 ....... $ 3,935,000
Beverages - Wine and Spirits - 0.7%
1,500,000 Joseph E. Seagram & Sons, Inc., 6.80%
company guaranteed notes, due 12/15/08 ..... 1,406,250
Brewery - 0.5%
1,000,000 Anheuser-Busch Companies, Inc., 5.65%
notes, due 9/15/08 ......................... 892,500
Broadcast Services and Programming - 2.9%
4,000,000 AT&T Corp./Liberty Media Group, 7.875%
notes, due 7/15/09+ ........................ 3,970,000
1,250,000 Paxson Communications Corp., 11.625%
senior subordinated notes, due 10/1/02 ..... 1,301,562
5,271,562
Cable Television - 5.2%
500,000 Century Communications Corp., 8.375%
senior notes, due 12/15/07 ................. 473,750
1,500,000 Charter Communications Holdings L.L.C.
8.625%, senior notes, due 4/1/09 ........... 1,387,500
230,000 Classic Cable, Inc., 9.375%
company guaranteed notes, due 8/1/09 ....... 227,125
Cox Communications, Inc.:
3,000,000 6.375%, notes, due 6/15/00 ................. 2,996,250
1,500,000 7.875%, notes, due 8/15/09 ................. 1,518,750
1,000,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 .................. 992,500
Lenfest Communications, Inc.:
1,000,000 10.50%, senior subordinated notes
due 6/15/06 ................................ 1,122,500
1,000,000 7.625%, senior notes, due 2/15/08 .......... 998,750
9,717,125
Casino Hotels - 1.2%
$ 500,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 ......... $ 491,250
2,000,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 ..... 1,745,000
2,236,250
Casino Services - 0.4%
750,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/048 ......... 15,625
Cellular Telecommunications - 2.2%
4,000,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09+ ................ 4,110,000
Commercial Banks - 1.4%
1,000,000 City National Bank, 6.375%
subordinated notes, due 1/15/08 ............ 910,000
700,000 Hudson United Bancorp, Inc., 8.20%
subordinated debentures, due 9/15/06 ....... 686,875
1,000,000 Provident Trust I Corp., 8.29%
company guaranteed notes, due 4/15/28 ...... 943,750
2,540,625
Computer Services - 3.1%
425,000 Dialog Corp. PLC, 11.00%
senior subordinated notes, due 11/15/07 .... 221,000
4,500,000 Electronic Data Systems Corp., 7.125%
notes, due 10/15/09 ........................ 4,393,125
1,250 Equinix, Inc., 13.00%
units, due 12/1/07+ ........................ 1,275,000
5,889,125
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 35
<PAGE>
Janus | Aspen Flexible Income Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Computers - Micro - 1.7%
IBM Corp.:
$ 2,500,000 5.375%, notes, due 2/1/09 .................. $ 2,196,875
1,000,000 7.00%, debentures, due 10/30/25 ............ 947,500
3,144,375
Containers - Paper and Plastic - 2.2%
3,925,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02 .......... 4,032,938
Cosmetics and Toiletries - 2.1%
4,000,000 Procter & Gamble Co., 6.875%
unsubordinated notes, due 9/15/09 .......... 3,915,000
Cruises Lines - 1.0%
2,000,000 Royal Caribbean Cruises, Ltd., 7.00%
senior notes, due 10/15/07 ................. 1,877,500
Diversified Financial Services - 0.9%
1,650,000 Local Financial Corp., 11.00%
senior notes, due 9/8/04 ................... 1,693,312
Diversified Operations - 0.1%
200,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09 ................... 207,500
Electric - Generation - 0.3%
521,227 Caithness Coso Fund Corp., 6.80%
secured notes, due 12/15/01 ................ 510,151
Electric - Integrated - 0.4%
600,000 El Paso Electric Co., 9.40%
first mortgage bonds, due 5/1/11 ........... 640,500
Fiber Optics - 1.7%
2,500,000 NorthEast Optic Network, Inc., 12.75%
senior notes, due 8/15/08 .................. 2,668,750
500,000 Williams Communications Group, Inc.
10.875%, senior notes, due 10/1/09 ......... 523,750
3,192,500
Finance - Auto Loans - 1.8%
Ford Motor Credit Co.:
1,000,000 6.125%, notes, due 4/28/03 ................. 967,500
2,500,000 7.375%, notes, due 10/28/09 ................ 2,475,000
3,442,500
Finance - Other Services - 0.9%
500,000 First American Capital Trust, 8.50%
company guaranteed notes, due 4/15/12 ...... 479,375
1,000,000 Ono Finance PLC, 13.00%
company guaranteed notes, due 5/1/09+ ...... 1,022,500
500,000 SIG Capital Trust I, 9.50%
company guaranteed notes, due 8/15/27 ...... 200,000
1,701,875
Food - Diversified - 0.4%
750,000 Ralston Purina Co., 7.875%
debentures, due 6/15/25 .................... 723,750
Food - Retail - 8.0%
Fred Meyer, Inc.:
$ 2,000,000 7.15%, company guaranteed notes
due 3/1/03 ................................. $ 1,972,500
4,000,000 7.45%, company guaranteed notes
due 3/1/08 ................................. 3,895,000
2,000,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 ....... 1,920,000
910,000 Pantry, Inc., 10.25%
company guaranteed notes, due 10/15/07 ..... 871,325
Safeway, Inc.:
3,500,000 5.875%, notes, due 11/15/01 ................ 3,421,250
2,000,000 7.50%, notes, due 9/15/09 .................. 1,972,500
1,000,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 .................. 1,002,500
15,055,075
Gambling - Non-Hotel Casinos - 0.9%
1,660,000 Lady Luck Gaming Corp., 11.875%
first mortgage notes, due 3/1/01 ........... 1,660,000
Internet Software - 1.8%
750,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ................... 778,125
2,500,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09 ................... 2,581,250
3,359,375
Leisure, Recreation and Gaming - 0.6%
1,500,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 ...... 1,091,250
Life and Health Insurance - 1.6%
Conseco, Inc.:
1,725,000 7.60%, senior notes, due 6/21/01 ........... 1,722,844
500,000 9.00%, notes, due 10/15/06 ................. 513,125
742,000 Delphi Financial Group, Inc., 8.00%
senior notes, due 10/1/03 .................. 738,290
2,974,259
Medical - Hospitals - 0.2%
500,000 Columbia/HCA Healthcare Corp., 8.36%
debentures, due 4/15/24 .................... 455,625
Multimedia - 1.0%
Time Warner, Inc.:
1,000,000 8.18%, notes, due 8/15/07 .................. 1,028,750
1,000,000 6.95%, company guaranteed notes
due 1/15/28 ................................ 885,000
1,913,750
Music/Clubs - 0.5%
1,000,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08 ....... 945,000
Networking Products - 1.1%
500,000 Anixter International, Inc., 8.00%
company guaranteed notes, due 9/15/03 ...... 495,000
1,500,000 Concentric Network Corp., 12.75%
senior notes, due 12/15/07 ................. 1,586,250
2,081,250
See Notes to Schedules of Investments.
36 Janus Aspen Series / December 31, 1999
<PAGE>
Shares or Principal Amount Market Value
================================================================================
Oil Companies - Integrated - 0.5%
$ 1,000,000 Chevron Corp., 6.625%
notes, due 10/1/04 ......................... $ 983,750
Optical Supplies - 0.5%
950,000 Bausch & Lomb, Inc., 6.75%
notes, due 12/15/04 ........................ 915,562
Paint and Related Products - 0.3%
500,000 Sherwin-Williams Co., 6.85%
notes, due 2/1/07 .......................... 478,750
Physical Therapy and Rehabilitation Centers - 1.0%
HEALTHSOUTH Corp.:
1,500,000 9.50%, senior subordinated notes
due 4/1/01 ................................. 1,496,250
500,000 7.00%, senior notes, due 6/15/08 ........... 406,875
1,903,125
Pipelines - 0.5%
1,000,000 Enron Corp., 7.375%
bonds, due 5/15/19 ......................... 936,250
Recreational Centers - 0.8%
1,500,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07 .... 1,455,000
Retail - Discount - 2.2%
300,000 Ames Department Stores, Inc., 10.00%
senior notes, due 4/15/06 .................. 296,250
4,000,000 Wal-Mart Stores, Inc., 6.875%
senior notes, due 8/10/09 .................. 3,895,000
4,191,250
Retail - Leisure Products - 0.1%
150,000 Selmer Company, Inc., 11.00%
senior subordinated notes, due 5/15/05 ..... 158,250
Retail - Restaurants - 1.1%
1,000,000 McDonald's Corp., 6.375%
debentures, due 1/8/28 ..................... 858,750
500,000 Perkins Family Restaurant L.P., 10.125%
senior notes, due 12/15/07 ................. 503,750
250,000 Romacorp, Inc., 12.00%
company guaranteed notes, due 7/1/06 ....... 226,875
500,000 Tricon Global Restaurants, Inc., 7.65%
senior notes, due 5/15/08 .................. 470,000
2,059,375
Savings/Loan/Thrifts - 3.2%
Dime Bancorp, Inc.:
1,650,000 6.375%, senior notes, due 1/30/01 .......... 1,631,438
3,000,000 7.00%, senior notes, due 7/25/01 ........... 2,970,000
1,000,000 Golden State Holdings, Inc., 7.00%
senior notes, due 8/1/03 ................... 937,500
500,000 Sovereign Bancorp, Inc., 10.50%
senior notes, due 11/15/06 ................. 507,500
6,046,438
Telecommunication Services - 4.9%
$ 500,000 Adelphia Business Solutions, Inc., 12.00%
senior subordinated notes, due 11/1/07 ..... $ 527,500
775,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09 ................... 796,312
1,220,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ..... 1,296,250
1,250,000 Logix Communications Enterprises, Inc.
12.25%, senior notes, due 6/15/08 .......... 996,875
600,000 McLeodUSA, Inc., 9.25%
senior notes, due 7/15/07 .................. 603,000
NTL, Inc.:
720,000 12.75%, senior notes, due 4/15/057 ......... 22,700
1,000,000 5.75%, convertible subordinated notes
due 12/15/09+ .............................. 1,075,000
150,000 Pegasus Media Communications, 12.50%
notes, due 7/1/05 .......................... 160,875
1,000,000 RCN Corp., 10.00%
senior notes, due 10/15/07 ................. 995,000
500,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08 .................. 533,750
1,500,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09+ .................. 1,560,000
9,267,262
Telephone - Integrated - 0.9%
2,000,000 GTE Northwest, Inc., 5.55%
debentures, due 10/15/08 ................... 1,755,000
Telephone - Long Distance - 1.8%
3,500,000 Qwest Communications International, Inc.
7.50%, senior notes, due 11/1/08 ........... 3,408,125
Television - 3.3%
3,000,000 Fox/Liberty Networks L.L.C., 8.875%
senior notes, due 8/15/07 .................. 3,067,500
2,000,000 News America, Inc., 6.625%
senior notes, due 1/9/08 ................... 1,852,500
250,000 Pegasus Communications Corp., 12.50%
senior notes, due 8/1/07+ .................. 272,500
1,000,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 ..... 1,102,500
6,295,000
Textile - Products - 0.5%
1,000,000 Collins & Aikman Floorcovering, Inc., 10.00%
senior subordinated notes, due 1/15/07 ..... 980,000
Transportation - Services - 0.7%
1,250,000 RailWorks Corp., 11.50%
company guaranteed notes, due 4/15/09 ...... 1,265,625
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $137,195,660) .................... 133,530,309
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 37
<PAGE>
Janus | Aspen Flexible Income Portfolio
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Foreign Bond - 6.6%
Advertising Services - 1.4%
EUR
2,500,000 Go Outdoor Systems Holdings S.A., 10.50%
senior subordinated notes, due 7/15/09**,+ . $ 2,653,325
Fiber Optics - 0.3%
EUR
500,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 12/15/09** ............... 514,318
Golf - 0.9%
GBP
1,000,000 Clubhaus PLC, 12.875%
senior notes, due 6/1/09**,+ ............... 1,712,112
Internet Software - 1.1%
EUR
1,000,000 Exodus Communications, Inc., 10.75%
senior notes, due 12/15/09**,+ ............. 1,027,377
EUR
1,000,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09** ................. 1,033,665
2,061,042
Telecommunication Equipment - 1.4%
EUR
2,500,000 Global TeleSystems Group, Inc., 11.00%
bonds, due 12/1/09**,+ ..................... 2,540,150
Telecommunication Services - 1.0%
EUR
750,000 Jazztel PLC, 13.25%
senior notes, due 12/15/09**,+ ............. 759,216
EUR
1,000,000 Versatel Telecom B.V., 11.875%
senior notes, due 7/15/09** ................ 1,071,390
1,830,606
Telephone - Long Distance - 0.5%
EUR
1,000,000 Viatel, Inc., 11.50%
senior notes, due 3/15/09** ................ 1,021,090
- --------------------------------------------------------------------------------
Total Foreign Bonds (cost $12,168,781) ....................... 12,332,643
- --------------------------------------------------------------------------------
Preferred Stock - 1.7%
Commercial Services - 0.4%
20,000 Cendant Corp., convertible, 7.50% ............ 747,500
Networking Products - 0.5%
969 Concentric Network Corp. - Series B, 13.50% .. 949,620
Savings/Loan/Thrifts - 0.8%
35,600 Chevy Chase Savings Bank, 13.00% ............. 1,068,000
8,000 Sovereign Capital Trust II, convertible, 7.50% 388,000
1,456,000
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $2,938,100) ...................... 3,153,120
- --------------------------------------------------------------------------------
Warrants - 0.1%
Finance - Other Services - 0.1%
1,000 Ono Finance PLC - expires 5/31/09*,+ ......... 110,000
Retail - Diversified - 0%
450 SpinCycle, Inc. - expires 5/1/05* ............ 0
Telecommunication Services - 0%
225 Versatel Telecom B.V. - expires 5/15/08*,+ ... 90,000
- --------------------------------------------------------------------------------
Total Warrants (cost $0) ..................................... 200,000
- --------------------------------------------------------------------------------
U.S. Government Obligations - 7.8%
U.S. Treasury Notes:
$ 5,000,000 6.125%, due 12/31/01 ....................... 4,991,407
8,000,000 6.125%, due 8/15/07 ........................ 7,802,160
2,000,000 5.625%, due 5/15/08** ...................... 1,880,840
- --------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $15,193,420) ......... 14,674,407
- --------------------------------------------------------------------------------
Repurchase Agreement - 11.8%
$ 22,200,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $22,208,418 collateralized
by $5,803,248 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $24,336,105
in Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of
$4,204,937 and $18,439,063
(cost $22,200,000) ......................... $ 22,200,000
- --------------------------------------------------------------------------------
Total Investments (total cost $189,695,961) - 99.2% .......... 186,090,479
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.8% 1,432,552
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 187,523,031
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Futures - Short
10 Contracts U.S. Treasury - 5 year bond, expires
March 2000, principal amount
$993,047 value $980,156,
cumulative appreciation $ 12,891
275 Contracts U.S. Treasury - 10 year bond, expires
March 2000, principal amount
$26,764,219 value $26,361,330,
cumulative appreciation 402,889
- --------------------------------------------------------------------------------
Forward Currency Contracts, Open at December 31, 1999
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 4/20/00 980,000 $ 1,585,150 $ 49,686
Euro 3/16/00 1,900,000 1,924,130 94,620
Euro 4/7/00 5,800,000 5,882,940 297,292
Euro 6/9/00 2,600,000 2,648,620 17,065
- --------------------------------------------------------------------------------
Total $ 12,040,840 $ 458,663
See Notes to Schedules of Investments.
38 Janus Aspen Series / December 31, 1999
<PAGE>
Janus | Aspen High-Yield Portfolio
[PHOTO]
Sandy Rufenacht
portfolio manager
I'm happy to report that for the 12 months ended December 31, 1999, Janus Aspen
High-Yield Portfolio outperformed its benchmark, posting a return of 6.85% for
its Institutional Shares and 6.35% for its Retirement Shares. By contrast, the
Lehman Brothers High-Yield Bond Index returned 2.39%.(1) This performance earned
the Portfolio a top-quartile ranking, placing it 12th out of 70 high current
yield portfolios tracked by Lipper, Inc., a leading mutual fund rating
company.(2)
Given the many challenges fixed-income markets faced during the year, our
performance was especially satisfying. These challenges included everything from
improving but still depressed emerging market economies to turbulent stock
prices to renewed inflation fears. The latter prompted the Federal Reserve to
boost short-term interest rates three times, which further pressured the overall
bond market. Yet, because high-yield bonds pay a wide spread over Treasury bond
rates, they held up relatively well in this rising interest rate environment and
outperformed the broader fixed-income universe.
Unique to the high-yield market, however, was an oversupply scenario. Throughout
much of the year, high-yield supply outweighed demand, forcing existing bond
prices lower. We viewed this as nothing more than a buying opportunity and,
therefore, selectively added to positions we believed were undervalued by the
market. In particular, we focused on well-known, well-capitalized companies that
are paying down debt and improving their credit quality.
Our strategy of investing in higher-grade corporate bonds during this volatile
period proved to be a double-edged sword. While higher quality, lower-yielding
securities helped safeguard our investors' assets, their vulnerability to rising
interest rates tempered the Portfolio's overall gains. Nonetheless, we uncovered
a number of individual opportunities that rewarded us with solid results,
ultimately tipping the scales in our favor.
We were particularly pleased with our positions in several yield-to-call bonds,
which not only boosted the Portfolio's income but also helped cushion it from
market volatility. Standouts included cellular telecom firm Price Communications
Wireless and British cable operator NTL. Price Communications caters to small
cities and rural areas in the southeastern U.S., and by offering new services
through its upgraded network, it's rapidly improving cash flow. Meanwhile, NTL
is on its way to becoming the largest cable operator in the U.K., offering
subscribers a menu of services that include video-on-demand, high-speed Internet
access, cable telephony and more.
Another solid performer was SF Holdings Group, a company with equity ownership
in Sweetheart Cup and Fonda Group, two manufacturers of disposable food service
products. Because of Fonda's success in securing the much-coveted McDonald's
restaurant contract and Sweetheart's ability to provide Fonda with the
additional production capacity it needed to fulfill the contract, both companies
benefited, and our position in parent company SF Holdings appreciated.
Although we were pleased with the Portfolio's overall results, a few of our
holdings did not meet our expectations, including Packaged Ice. This company
easily dominates the U.S. wholesale ice market and continues to expand its reach
through acquisitions. However, during last summer's heat wave, production fell
behind, and Packaged Ice was forced to buy ice at a premium so that it could
fulfill its fixed-price contracts. Needless to say, the bonds faded during this
predicament. But after meeting with management and learning that the company has
renegotiated its contracts, we opted to maintain our holding.
Our position in Venetian Casino, a Las Vegas venue, also declined after the
company rushed its grand opening. Many of the casino's world-class amenities
weren't yet available during the opening, prompting tourists to frequent its
competition. However, the entire facility is now fully operational, and bookings
have increased considerably, bolstering our confidence in the position.
Going forward, we remain optimistic that our focus on quality high-yield bonds
will help us navigate any turbulence in the economy or financial markets. In
anticipation of a strong new issuance calendar, we are also carrying a higher
cash position into the new year. We plan to put that money to work in compelling
investment opportunities, concentrating on well-managed companies with solid
U.S.-based cash flows. We'll also selectively add shorter-term positions in
yield-to-call bonds, which provide minimal downside risk and a healthy coupon
income.
In closing, I'd like to thank you for your continued investment in Janus Aspen
High-Yield Portfolio.
Portfolio Profile December 31, 1999 December 31, 1998
- --------------------------------------------------------------------------------
Weighted Average Maturity 5.1 Yrs. 5.1 Yrs.
Average Modified Duration* 3.6 Yrs. 3.7 Yrs.
30-Day Average Yield
Institutional Shares** 9.45% 8.31%
Without Reimbursement** 6.94% N/A
Retirement Shares** 8.80% 7.89%
Without Reimbursement** 6.32% N/A
Average Rating B- B
- --------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) All returns include reinvested dividends.
(2) Lipper, Inc. defines a high current yield portfolio as "a portfolio that
aims at high (relative) current yield from fixed income securities, has no
quality or maturity restrictions, and tends to invest in lower grade debt
issues." As of December 31, 1999, Janus Aspen High-Yield Portfolio ranked
6/45 for the 3-year period. The ranking is for Institutional Shares and
based on total return, including reinvestment of dividends and capital
gains for the stated period.
Past performance does not guarantee future results.
Janus Aspen Series / December 31, 1999 39
<PAGE>
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/96)
1 Year 6.85%
From Inception 9.83%
- --------------------------------------------------------------------------------
Lehman Brothers High-Yield Bond Index
1 Year 2.39%
From Inception Date of Institutional Shares 7.06%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 6.35%
From Portfolio Inception 6.19%
- --------------------------------------------------------------------------------
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.
Note:Performance of the Retirement Shares is lower from the performance shown
on this graph for the Institutional Shares, based upon the higher fees paid
by shareholders investing in this class.
Performance Overview(1)
Average Annual Total Return
for the periods ended December 31, 1999
One Year, 6.85%
Since 5/1/96,* 9.83%
[GRAPHIC OMITTED]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Aspen High-Yield Portfolio - Institutional Shares and the Lehman
Brothers High-Yield Bond Index. Janus Aspen High-Yield Portfolio - Institutional
Shares is represented by a shaded area of green. The Lehman Brothers High-Yield
Bond Index is represented by a solid black line. The "y" axis reflects the value
of the investment. The "x" axis reflects the computation periods from inception,
May 1, 1996, through December 31, 1999. The lower right quadrant reflects the
ending value of the hypothetical investment in Janus Aspen High-Yield Portfolio
- - Institutional Shares ($14,105) as compared to the Lehman Brothers High-Yield
Bond Index ($12,840).
Janus Aspen High-Yield Portfolio
- - Institutional Shares - $14,105
Lehman Brothers High-Yield
Bond Index - $12,840
*The Portfolio's inception date.
Source - Lipper, Inc. 1999.
(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 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. Investing in high-yield/high-risk securities may entail
greater risk. Past performance does not guarantee future results.
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 76.9%
Agricultural Operations - 1.4%
$ 23,000 Hines Horticulture, Inc., 11.75%
senior subordinated notes, due 10/15/05 .... $ 23,747
Building - Residential and Commercial - 1.4%
10,000 MDC Holdings, Inc., 8.375%
senior notes, due 2/1/08 ................... 9,112
15,000 Webb (Del E.) Corp., 10.25%
senior subordinated notes, due 2/15/10 ..... 14,363
23,475
Cable Television - 6.4%
25,000 Avalon Cable of Michigan, Inc., 9.375%
senior subordinated notes, due 12/1/08 ..... 25,187
50,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 .... 53,000
25,000 Fundy Cable, Ltd., 11.00%
senior notes, due 11/15/05 ................. 27,000
105,187
Casino Hotels - 6.7%
25,000 Majestic Star Casino L.L.C./Capital, 10.875%
company guaranteed notes, due 7/1/06 ....... 24,312
30,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 ......... 29,475
30,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 ..... 30,675
30,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 ..... 26,175
110,637
Cellular Telecommunications - 3.5%
$ 20,000 Orange PLC, 8.00%
senior notes, due 8/1/08 ................... $ 20,300
25,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 ..... 27,563
10,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09+ ................ 10,275
58,138
Computer Services - 4.4%
30,000 Globix Corp., 13.00%
senior notes, due 5/1/05 ................... 30,300
45,000 Splitrock Services, Inc., 11.75%
company guaranteed notes, due 7/15/08 ...... 41,738
72,038
Containers - Paper and Plastic - 4.2%
15,000 Packaged Ice, Inc., 9.75%
company guaranteed notes, due 2/1/05 ....... 13,688
60,000 SF Holdings Group, Inc., zero coupon
senior discount notes, due 3/15/08 ......... 33,975
20,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02 .......... 20,550
68,213
Distribution and Wholesale - 1.2%
20,000 Core-Mark International, Inc., 11.375%
senior subordinated notes, due 9/15/03 ..... 19,000
Diversified Operations - 3.2%
50,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09 ................... 51,875
See Notes to Schedules of Investments.
40 Janus Aspen Series / December 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS (continued)
Shares or Principal Amount Market Value
================================================================================
Fiber Optics - 1.0%
$ 15,000 NorthEast Optic Network, Inc., 12.75%
senior notes, due 8/15/08 .................. $ 16,013
Food - Retail - 1.1%
15,000 Carrols Corp., 9.50%
company guaranteed notes, due 12/1/08 ...... 13,762
5,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 .................. 5,013
18,775
Gambling - Non-Hotel Casinos - 3.1%
50,000 Louisiana Casino Cruises, Inc., 11.00%
notes, due 12/1/05 ......................... 51,375
Home Decorating Products - 0.6%
15,000 Frank's Nursery & Crafts, Inc., 10.25%
senior subordinated notes, due 3/1/08 ...... 10,162
Internet Software - 1.9%
15,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 ................... 15,562
15,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09 ................... 15,488
31,050
Leisure, Recreation and Gaming - 1.8%
40,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 ...... 29,100
Music/Clubs - 1.4%
25,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08 ....... 23,625
Radio - 1.6%
25,000 Cumulus Media, Inc., 10.375%
company guaranteed notes, due 7/1/08 ....... 25,937
Real Estate Investment and Management - 2.4%
40,000 LNR Property Corp., 10.50%
senior subordinated notes, due 1/15/09 ..... 39,550
Retail - Restaurants - 1.5%
25,000 Perkins Family Restaurant L.P., 10.125%
senior notes, due 12/15/07 ................. 25,188
Telecommunication Equipment - 0.6%
10,000 Covad Communications Group, Inc., 12.50%
senior notes, due 2/15/09 .................. 10,400
Telecommunication Services - 16.1%
30,000 Alaska Communications Systems, Inc., 9.375%
company guaranteed notes, due 5/15/09 ...... 29,025
15,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09 ................... 15,412
25,000 Cencall Communications Corp., 10.125%
senior discount notes, due 1/15/04 ......... 25,781
50,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ..... 53,125
20,000 Global Crossing Holding, Ltd., 9.625%
company guaranteed notes, due 5/15/08 ...... 19,900
40,000 ITC DeltaCom, Inc., 11.00%
senior notes, due 6/1/07 ................... 42,400
30,000 NTL, Inc., 12.75%
senior notes, due 4/15/05 .................. 30,112
20,000 Versatel Telecom B.V., 13.25%
senior notes, due 5/15/08 .................. 21,350
25,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09+ .................. 26,000
263,105
Telephone - Long Distance - 0.7%
$ 10,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07 .......... $ 11,075
Television - 1.6%
25,000 Pegasus Communications Corp., 12.50%
senior subordinated notes, due 8/1/07+ ..... 27,250
Textile - Products - 0.6%
10,000 Collins & Aikman Floorcovering, Inc., 10.00%
senior subordinated notes, due 1/15/07 ..... 9,800
Transportation - Services - 2.9%
17,000 Atlantic Express Transportation Corp., 10.75%
company guaranteed notes, due 2/1/04 ....... 16,532
30,000 RailWorks Corp., 11.50%
company guaranteed notes, due 4/15/09 ...... 30,375
46,907
Wire and Cable Products - 1.3%
20,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05 ...... 20,650
Wireless Equipment - 4.3%
Nextel Communications, Inc.:
45,000 9.75%, senior discount notes, due 8/15/04 .. 46,463
25,000 9.375%, senior notes, due 11/15/09+ ........ 24,563
71,026
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $1,295,747) ...................... 1,263,298
- --------------------------------------------------------------------------------
Common Stock - 0%
Containers - Paper and Plastic - 0%
12 SF Holdings Group, Inc.+ (cost $0) ........... 0
- --------------------------------------------------------------------------------
Preferred Stock - 0.7%
Radio - 0.7%
11 Cumulus Media, Inc. - Series A, 13.75%
(cost $12,176) ............................. 12,128
- --------------------------------------------------------------------------------
Warrants - 0.7%
Internet Software - 0.7%
38 Bell Technology Group, Ltd. - expires 5/1/05*
(cost $0) .................................. 11,258
- --------------------------------------------------------------------------------
Repurchase Agreement - 19.2%
$ 315,000 Deutsche Bank Securities, Inc., 4.55%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $315,119 collateralized
by $82,343 in Fannie Mae, 4.005%-
7.00%, 11/18/15-5/25/29; $345,310 in
Freddie Mac, 0%-7.3262%, 12/15/12-
4/1/29; with respective values of $59,665
and $261,635 (cost $315,000) ............... 315,000
- --------------------------------------------------------------------------------
Total Investments (total cost $1,622,923) - 97.5% ............ 1,601,684
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 2.5% 30,290
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 1,631,974
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 41
<PAGE>
Janus | Aspen Money Market Portfolio
[PHOTO]
Sharon Pichler
portfolio manager
For the 12 months ended December 31, 1999, Janus Aspen Money Market Portfolio
returned 4.98% for its Institutional Shares and 4.45% for its Retirement
Shares.(1) The seven-day current yield for this same period was 5.70% and 5.20%
for the Institutional Shares and Retirement Shares, respectively. The
Portfolio's strong performance earned it a top-quartile ranking, placing it 14th
out of 101 U.S. money market portfolios tracked by Lipper, Inc., a leading
mutual fund rating company.(2)
The U.S. stock market continued to make headlines, gaining altitude to the
extent that, by year-end, it had surpassed its previous highs. This had the
obvious effect of increasing investors' preference for stocks over other
investment alternatives. It also gave the Federal Reserve further impetus to
raise short-term interest rates, which it did in June, August and again in
November, attempting to keep a lid on inflation. Other factors contributing to
the Fed's preventive measures were tight labor markets, a weak dollar and
higher-trending prices for oil and other raw materials. Needless to say, rising
interest rates were the biggest factors influencing money markets.
To a lesser degree, anxiety related to the Y2K transition and potential
liquidity concerns also added to volatility in the money markets. However, what
was anticipated to be "the most significant event of the year" turned out to be
a nonevent and fund flows remained fairly normal through year-end.
Nonetheless, in an attempt to cushion the Portfolio from any unusual market
turbulence, we increased our cash holdings. This strategy also allowed us to
take advantage of buying opportunities in the three- to four-month maturity
range created by distortions in the interest rate environment. These relatively
longer-term securities will likely mature prior to further Fed action and
therefore will not prevent us from reinvesting at higher yields.
Going forward, we will continue to keep a close eye on interest rates. At this
writing, inflation fears and the "wealth effect" - a sense of wealth created by
higher stock prices - both seem to have the Fed leaning toward future rate
increases. That said, the Portfolio will remain liquid, which should help
cushion performance from the risk of higher rates, while giving us the
flexibility to respond to changing market conditions.
In closing, we'd like to thank you for your continued investment and confidence
in Janus Aspen Money Market Portfolio.
Average Annual Total Return(1)
For the Periods Ended December 31, 1999
- --------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/95)
1 Year 4.98%
From Inception 5.18%
- --------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 4.45%
From Portfolio Inception 4.37%
- --------------------------------------------------------------------------------
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.
(2) Lipper, Inc. defines a U.S. money market portfolio as one that invests in
"high-quality financial instruments rated in the top two grades with
dollar-denominated average maturities of less than 90 days" and that
intends "to keep constant net asset value." As of December 31, 1999, Janus
Aspen Money Market Portfolio ranked 22/90 of U.S. money market funds for
the 3-year period. The ranking is for Institutional 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 Portfolio.
Past performance does not guarantee future results.
42 Janus Aspen Series / December 31, 1999
<PAGE>
SCHEDULE OF INVESTMENTS
Shares or Principal Amount Market Value
================================================================================
Taxable Variable Rate Demand Notes - 32.7%
$ 1,475,000 Arapahoe County, Colorado Industrial
Development Revenue, (Cottrell)
Series B, 5.95%, 10/1/19 ................... $ 1,475,000
2,300,000 Asset Partners, Inc.
5.95%, 11/1/27 ............................. 2,300,000
3,200,000 Breckenridge Terrace L.L.C.
5.8775%, 5/1/39 ............................ 3,200,000
335,000 Chicago, Illinois Industrial Development
Revenue, (BTI, Inc. Project)
Series B, 5.98%, 9/1/273 ................... 35,000
1,000,000 Colorado Housing and Finance Authority
Economic Development Revenue
(White Wave, Inc. Project), Series B
5.85%, 10/1/18 ............................. 1,000,000
470,000 Fort Wright, Kentucky Industrial Building
Revenue, (Wellels Properties)
6.50%, 6/1/19 .............................. 470,000
285,000 Fresno, California Multi-Family Housing
Revenue, (Sunrise Fresno), Series B
6.25%, 12/1/26 ............................. 285,000
900,000 Industrial Dimensions, Inc.
6.50%, 1/1/14 .............................. 900,000
3,400,000 Lee County, Florida Industrial Development
Authority Health Care Facilities Revenue
(Bonita Community), Series B
6.50%, 12/1/29 ............................. 3,400,000
1,200,000 Michigan City Industrial Economic
Development Revenue, (Cons Biscuit
Co. Project), 6.50%, 10/1/13 ............... 1,200,000
110,000 Michigan State Strategic Fund Limited
Obligation Revenue, (Wade Trim Group)
5.70%, 12/1/16 ............................. 110,000
5,200,000 Montgomery, Alabama Industrial Development
Board Revenue, (Jenkins Brick Co.)
Series A, 6.08%, 9/1/14 .................... 5,200,000
480,000 Neill-Lavielle Supply Co.
6.50%, 5/1/08 .............................. 480,000
1,675,000 Phoenix, Illinois Realty Special Account
Multi-Family Revenue, (Brightons Mark)
6.00%, 4/1/20 .............................. 1,675,000
1,000,000 Washington, Missouri Industrial Development
Authority Revenue, (Pauwels Project)
5.95%, 12/1/19 ............................. 1,000,000
- --------------------------------------------------------------------------------
Total Taxable Variable Rate Demand Notes (cost $23,030,000) .. 23,030,000
- --------------------------------------------------------------------------------
Floating Rate Notes - 29.3%
2,000,000 American Express Centurion Bank
5.70%, 4/27/00 ............................. 2,000,000
2,000,000 Bankers Trust Company, New York
5.70%, 5/15/00 ............................. 1,999,707
2,000,000 Bayerische Landesbank, New York
5.75%, 8/2/00 .............................. 1,999,408
2,000,000 Comerica Bank, Detroit
5.66%, 6/12/00 ............................. 1,999,564
650,000 First National Bank, Chicago
5.63%, 4/13/00 ............................. 649,686
2,000,000 General Motors Acceptance Mortgage Corp.
5.76%, 3/14/00 ............................. 2,000,039
2,000,000 Homeside Lending, Inc.
6.2712%, 8/16/00 ........................... 2,000,000
2,000,000 Medical Properties, Inc.
7.00%, 12/22/24 ............................ 2,000,000
Floating Rate Notes - (continued)
$ 2,000,000 National Bank of Commerce
6.5112%, 7/18/00 ........................... $ 1,998,925
2,000,000 Norwest Financial, Inc.
5.675%, 7/7/00 ............................. 1,999,546
2,000,000 SouthTrust Bank N.A.
5.64%, 5/17/00 ............................. 1,999,559
- --------------------------------------------------------------------------------
Total Floating Rate Notes (cost $20,646,434) ................. 20,646,434
- --------------------------------------------------------------------------------
Certificates of Deposit - 19.9%
2,000,000 Barclays Bank PLC
5.90%, 10/2/00 ............................. 1,997,755
2,000,000 Commerzbank A.G., New York
5.09%, 4/12/00 ............................. 1,999,326
1,000,000 Compagnie Fananciere
6.39%, 12/20/00 ............................ 999,908
2,000,000 Merita Bank, Ltd., New York
6.17%, 1/21/00 ............................. 2,000,000
2,000,000 National Bank of Canada, New York
5.61%, 6/12/00 ............................. 1,999,657
1,000,000 Regions Bank
6.09%, 10/10/00 ............................ 999,556
1,000,000 Royal Bank of Canada, New York
5.12%, 3/21/00 ............................. 999,869
2,000,000 Skandinaviska Enskilda Banken
5.96%, 8/10/00 ............................. 1,999,535
1,000,000 Svenska Handelsbanken, New York
5.22%, 5/10/00 ............................. 999,829
- --------------------------------------------------------------------------------
Total Certificates of Deposit (cost $13,995,435) ............. 13,995,435
- --------------------------------------------------------------------------------
Put Bond - 3.9%
2,765,000 Aurora, Colorado Centertech Metropolitan
District, Series B, 6.65%, 12/1/00+
(cost $2,765,000) .......................... 2,765,000
- --------------------------------------------------------------------------------
Repurchase Agreement - 15.6%
11,000,000 Morgan Stanley Dean Witter & Co., 5.25%
dated 12/31/99, maturing 1/3/00, to be
repurchased at $11,004,813 collateralized
by $794,346 in Fannie Mae, 6.00% - 9.50%,
5/25/06-3/25/23; $15,430,314 in Freddie
Mac, 0%-8.50%, 4/15/03- 11/15/29;
$966,842 in Ginnie Mae, 5.7437%-5.80%,
7/16/22-2/16/26; with respective values
of $770,359, $9,567,340, and $922,446
(cost $11,000,000) ......................... 11,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $71,436,869) - 101.4% .......... 71,436,869
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.4%) (1,018,143)
- --------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 70,418,726
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / December 31, 1999 43
<PAGE>
Statements of | Operations
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
Janus Aspen Aggressive Capital
For the fiscal year ended December 31, 1999 Growth Growth Appreciation
(all numbers in thousands) Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C>
Interest $ 11,575 $ 1,877 $ 3,096
Dividends 5,664 966 720
Foreign tax withheld (61) (6) (10)
- --------------------------------------------------------------------------------------------------------------------
Total Investment Income 17,178 2,837 3,806
- --------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 11,643 10,081 1,716
Transfer agent expenses 1 2 1
Registration fees 91 75 51
System fees 20 22 14
Custodian fees 149 130 32
Insurance expense 6 6 --
Audit fees 14 17 13
Distribution fees - Retirement Shares 31 24 11
Administrative fees - Retirement Shares 31 24 11
Other expenses 8 10 3
- --------------------------------------------------------------------------------------------------------------------
Total Expenses 11,994 10,391 1,852
- --------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (25) (31) (3)
- --------------------------------------------------------------------------------------------------------------------
Net Expenses 11,969 10,360 1,849
- --------------------------------------------------------------------------------------------------------------------
Excess Expense Reimbursement -- -- --
- --------------------------------------------------------------------------------------------------------------------
Net Expenses After Reimbursement 11,969 10,360 1,849
- --------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) 5,209 (7,523) 1,957
- --------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 155,387 392,442 3,659
Net realized gain/(loss) from foreign currency transactions (28) 354 --
Net realized gain/(loss) from futures contracts -- -- --
Change in net unrealized appreciation or
depreciation of investments and foreign currency 582,872 1,148,333 169,996
- --------------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments 738,231 1,541,129 173,655
- --------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 743,440 $ 1,533,606 $ 175,612
- --------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
44 Janus Aspen Series / December 31, 1999
<PAGE>
<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
- --------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
$ 1,680 $ 13,844 $ 48,392 $ 98 $ 379 $ 12,342 $ 230 $ 2,956
3,031 24,223 8,855 133 118 124 2 --
(316) (2,468) (35) (1) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
4,395 35,599 57,212 230 497 12,466 232 2,956
- --------------------------------------------------------------------------------------------------------------------
2,829 25,509 10,805 106 202 1,051 18 138
2 3 -- 1 1 1 1 3
61 170 76 43 53 52 48 60
18 21 21 8 12 15 13 15
355 1,840 152 30 47 38 25 5
1 12 4 -- -- 1 -- --
12 19 15 9 5 12 12 15
9 123 71 -- 5 -- -- --
9 123 71 -- 5 -- -- --
11 52 9 3 3 2 4 3
- --------------------------------------------------------------------------------------------------------------------
3,307 27,872 11,224 200 333 1,172 121 239
- --------------------------------------------------------------------------------------------------------------------
(5) (23) (24) -- (1) (6) -- --
- --------------------------------------------------------------------------------------------------------------------
3,302 27,849 11,200 200 332 1,166 121 239
- --------------------------------------------------------------------------------------------------------------------
-- -- -- (15) -- -- (96) --
- --------------------------------------------------------------------------------------------------------------------
3,302 27,849 11,200 185 332 1,166 25 239
- --------------------------------------------------------------------------------------------------------------------
1,093 7,750 46,012 45 165 11,300 207 2,717
- --------------------------------------------------------------------------------------------------------------------
10,284 194,017 181,255 2,283 2,395 (3,573) (113) 3
(1,431) (8,011) (739) (4) -- (176) -- --
522 4,995 -- -- -- 411 -- --
333,771 2,184,175 185,339 2,881 22,577 (5,120) 55 --
- --------------------------------------------------------------------------------------------------------------------
343,146 2,375,176 365,855 5,160 24,972 (8,458) (58) 3
- --------------------------------------------------------------------------------------------------------------------
$ 344,239 $ 2,382,926 $ 411,867 $ 5,205 $ 25,137 $ 2,842 $ 149 $ 2,720
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen Series / December 31, 1999 45
<PAGE>
Statements of | Assets & Liabilities
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
Janus Aspen Aggressive Capital
As of December 31, 1999 (all numbers in thousands Growth Growth Appreciation
except net asset value per share) Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------
Assets:
<S> <C> <C> <C>
Investments at cost $ 2,100,829 $ 1,977,940 $ 458,531
Investments at value: $ 3,004,872 $ 3,373,868 $ 648,699
Cash 154 156 198
Receivables:
Investments sold 3,705 133 --
Portfolio shares sold 7,357 9,049 2,983
Dividends 475 14 67
Interest 275 10 17
Other assets 2 2 1
Variation margin -- -- --
Forward currency contracts 160 -- --
- --------------------------------------------------------------------------------------------------------------
Total Assets 3,017,000 3,383,232 651,965
- --------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 12,576 -- --
Portfolio shares repurchased 827 13,928 1,491
Advisory fees 1,538 1,695 311
Accrued expenses 76 62 23
Due to Advisor -- -- --
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 15,017 15,685 1,825
- --------------------------------------------------------------------------------------------------------------
Net Assets $ 3,001,983 $ 3,367,547 $ 650,140
- --------------------------------------------------------------------------------------------------------------
Net Assets - Institutional Shares $ 2,942,649 $ 3,319,619 $ 626,611
Shares Outstanding, $0.001 Par Value (unlimited shares authorized) 87,457 55,608 18,894
- --------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 33.65 $ 59.70 $ 33.17
- --------------------------------------------------------------------------------------------------------------
Net Assets - Retirement Shares $ 59,334 $ 47,928 $ 23,529
Shares Outstanding, $0.001 Par Value (unlimited shares authorized) 1,765 814 713
- --------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 33.63 $ 58.91 $ 33.00
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
46 Janus Aspen Series / December 31, 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>
$ 431,246 $ 3,661,297 $ 2,052,853 $ 13,988 $ 68,727 $ 189,696 $ 1,623 $ 71,437
$ 819,808 $ 6,610,142 $ 2,432,313 $ 19,243 $ 92,309 $ 186,090 $ 1,602 $ 71,437
937 2,854 6,934 77 176 461 -- 23
3,263 34,817 59,675 320 495 1,912 1 --
4,557 29,544 7,520 1 819 306 -- 1,263
594 3,883 1,008 8 17 -- -- --
9 51 20,235 35 35 3,603 35 638
2 5 1 -- -- -- 2 --
-- -- -- -- -- 115 -- --
897 8,689 504 3 -- 459 -- --
- --------------------------------------------------------------------------------------------------------------
830,067 6,689,985 2,528,190 19,687 93,851 192,946 1,640 73,361
- --------------------------------------------------------------------------------------------------------------
790 4,144 19,153 172 1,950 4,994 -- --
1,445 11,097 969 48 379 321 -- 2,908
404 3,333 1,335 11 45 103 -- 14
50 239 56 10 15 5 8 20
-- -- -- 7 -- -- -- --
- --------------------------------------------------------------------------------------------------------------
2,689 18,813 21,513 248 2,389 5,423 8 2,942
- --------------------------------------------------------------------------------------------------------------
$ 827,378 $ 6,671,172 $ 2,506,677 $ 19,439 $ 91,462 $ 187,523 $ 1,632 $ 70,419
- --------------------------------------------------------------------------------------------------------------
$ 810,392 $ 6,496,773 $ 2,453,079 $ 18,975 $ 84,480 $ 186,681 $ 1,620 $ 69,266
20,955 136,049 87,880 695 4,067 16,357 155 69,266
- --------------------------------------------------------------------------------------------------------------
$ 38.67 $ 47.75 $ 27.91 $ 27.32 $ 20.77 $ 11.41 $ 10.45 $ 1.00
- --------------------------------------------------------------------------------------------------------------
$ 16,986 $ 174,399 $ 53,598 $ 464 $ 6,982 $ 842 $ 12 $ 1,153
441 3,667 1,912 17 338 72 1 1,153
- --------------------------------------------------------------------------------------------------------------
$ 38.56 $ 47.56 $ 28.04 $ 27.07 $ 20.68 $ 11.72 $ 10.67 $ 1.00
- --------------------------------------------------------------------------------------------------------------
</TABLE>
Janus Aspen Series / December 31, 1999 47
<PAGE>
Statements of | Changes in Net Assets
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen
Growth Aggressive Growth Capital Appreciation
For the fiscal year or period 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) $ 5,209 $ 2,061 $ (7,523) $ (2,059) $ 1,957 $ 70
Net realized gain/(loss) from
investment transactions 155,359 9,731 392,796 62,166 3,659 (3,801)
Change in unrealized net appreciation or
depreciation of investments and foreign currency 582,872 246,903 1,148,333 133,925 169,996 19,907
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 743,440 258,695 1,533,606 194,032 175,612 16,176
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (4,543) (1,969) -- -- (1,635) (40)
Net realized gain from investment transactions* (9,036) (48,597) (52,162) -- -- --
Distributions (in excess of realized gains)* -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (13,579) (50,566) (52,162) -- (1,635) (40)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 1,298,997 375,818 1,695,094 388,732 425,454 78,521
Retirement Shares 52,393 2 34,652 -- 21,310 --
Reinvested dividends and distributions
Institutional Shares 13,566 50,565 52,029 -- 1,635 40
Retirement Shares 13 1 133 -- -- --
Shares repurchased
Institutional Shares (194,056) (139,241) (665,828) (318,015) (44,052) (27,336)
Retirement Shares (2,358) -- (2,937) -- (2,391) --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from
Capital Share Transactions 1,168,555 287,145 1,113,143 70,717 401,956 51,225
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 1,898,416 495,274 2,594,587 264,749 575,933 67,361
Net Assets:
Beginning of period 1,103,567 608,293 772,960 508,211 74,207 6,846
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $3,001,983 $1,103,567 $3,367,547 $ 772,960 $ 650,140 $ 74,207
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $1,941,557 $ 773,002 $1,588,397 $ 475,254 $ 459,904 $ 57,948
Undistributed net investment income/(loss)* 864 210 (2) (6) 356 34
Undistributed net realized gain/
(loss) from investments* 155,363 9,028 383,226 50,119 (288) (3,947)
Unrealized appreciation/(depreciation)
of investments and foreign currency 904,199 321,327 1,395,926 247,593 190,168 20,172
$3,001,983 $1,103,567 $3,367,547 $ 772,960 $ 650,140 $ 74,207
Transactions in Portfolio Shares -
Institutional Shares
Shares sold 47,425 18,605 45,266 17,430 16,966 4,982
Reinvested dividends and distributions 486 2,441 1,555 -- 55 2
- ---------------------------------------------------------------------------------------------------------------------------------
Total 47,911 21,046 46,821 17,430 17,021 4,984
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (7,339) (7,082) (19,177) (14,193) (1,847) (1,805)
Net Increase/(Decrease) in Portfolio Shares 40,572 13,964 27,644 3,237 15,174 3,179
Shares Outstanding, Beginning of Period 46,885 32,921 27,964 24,727 3,720 541
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 87,457 46,885 55,608 27,964 18,894 3,720
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares -
Retirement Shares(2)
Shares sold 1,844,663 79 872,484 -- 805,168 --
Reinvested dividends and distributions 475 40 4,023 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total 1,845,138 119 876,507 -- 805,168 --
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (81,361) -- (63,544) -- (93,123) --
Net Increase/(Decrease) in Portfolio Shares 1,763,777 119 812,963 -- 712,045 --
Shares Outstanding, Beginning of Period 754 635 620 620 1,000 1,000
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 1,764,531 754 813,583 620 713,045 1,000
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $1,792,760 $ 747,926 $2,594,856 $ 795,996 $ 380,037 $ 65,706
Proceeds from sales of securities 845,225 531,213 1,580,979 747,773 105,924 20,828
Purchases of long-term
U.S. government obligations -- -- -- -- -- --
Proceeds from sales of long-term
U.S. government obligations -- -- -- -- -- --
</TABLE>
*See Note 3 in Notes to Financial Statements.
(1) Period May 1, 1998, (inception) to December 31, 1998.
See Notes to Financial Statements.
48 Janus Aspen Series / December 31, 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>
$ 1,093 $ 1,703 $ 7,750 $ 14,085 $ 46,012 $ 13,428 $ 45 $ 10 $ 165 $ 13 $ 11,300 $ 5,513
9,375 (14,669) 191,001 (60,752) 180,516 (989) 2,279 65 2,395 (119) (3,338) 964
333,771 43,585 2,184,175 569,104 185,339 174,276 2,881 2,297 22,577 1005 (5,120) 680
- ---------------------------------------------------------------------------------------------------------------------------
344,239 30,619 2,382,926 522,437 411,867 186,715 5,205 2,372 25,137 899 2,842 7,157
- ---------------------------------------------------------------------------------------------------------------------------
(1,019) (1,573) (6,818) (15,228) (42,435) (13,267) (38) (9) (137) (11) (11,043) (5,587)
-- -- -- -- -- (12,240) (59) (74) -- -- (977) (704)
-- (3,097) -- (69,710) -- (987) -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
(1,019) (4,670) (6,818) (84,938) (42,435) (26,494) (97) (83) (137) (11) (12,020) (6,291)
- ---------------------------------------------------------------------------------------------------------------------------
438,134 265,075 2,167,550 1,208,930 1,279,277 390,880 9,006 6,139 59,997 6,714 92,026 84,767
12,225 4 137,824 5,082 34,954 15,037 382 -- 6,207 10 872 --
1,018 4,670 6,818 84,904 41,850 26,417 97 83 137 11 12,003 6,290
1 -- -- 34 585 77 -- -- -- -- 17 1
(277,609) (145,673) (898,433) (417,023) (112,729) (54,219) (4,176) (2,534) (5,500) (1,198) (37,764) (16,439)
(738) -- (14,907) (165) (6,449) (1,077) (15) -- (804) -- (47) --
- ---------------------------------------------------------------------------------------------------------------------------
173,031 124,076 1,398,852 881,762 1,237,488 377,115 5,294 3,688 60,037 5,537 67,107 74,619
- ---------------------------------------------------------------------------------------------------------------------------
516,251 150,025 3,774,960 1,319,261 1,606,920 537,336 10,402 5,977 85,037 6,425 57,929 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
- ---------------------------------------------------------------------------------------------------------------------------
$ 827,378 $ 311,127 $6,671,172 $2,896,212 $2,506,677 $899,757 $19,439 $ 9,037 $ 91,462 $ 6,425 $187,523 $129,594
- ---------------------------------------------------------------------------------------------------------------------------
$ 446,243 $ 273,222 $3,608,193 $2,209,339 $1,943,324 $705,836 $11,892 $ 6,596 $ 65,574 $ 5,537 $193,256 $126,149
169 114 1,072 400 4,104 527 11 5 30 2 392 169
(8,482) (17,886) 104,470 (86,790) 179,294 (1,222) 2,278 59 2,276 (119) (3,384) 897
389,448 55,677 2,957,437 773,263 379,955 194,616 5,258 2,377 23,582 1,005 (2,741) 2,379
$ 827,378 $ 311,127 $6,671,172 $2,896,212 $2,506,677 $899,757 $19,439 $ 9,037 $ 91,462 $ 6,425 $187,523 $129,594
17,341 12,915 62,563 44,980 51,595 20,067 405 399 3,889 655 7,752 6,992
44 212 209 2,966 1,581 1,279 4 5 7 1 1,047 525
- ---------------------------------------------------------------------------------------------------------------------------
17,385 13,127 62,772 47,946 53,176 21,346 409 404 3,896 656 8,799 7,517
- ---------------------------------------------------------------------------------------------------------------------------
(11,053) (7,220) (26,096) (15,979) (4,522) (2,871) (179) (165) (365) (120) (3,192) (1,360)
6,332 5,907 36,676 31,967 48,654 18,475 230 239 3,531 536 5,607 6,157
14,623 8,716 99,373 67,406 39,226 20,751 465 226 536 -- 10,750 4,593
- ---------------------------------------------------------------------------------------------------------------------------
20,955 14,623 136,049 99,373 87,880 39,226 695 465 4,067 536 16,357 10,750
- ---------------------------------------------------------------------------------------------------------------------------
466,618 201 3,868,907 188,749 1,385,492 815,403 16,783 -- 392,132 1,000 73,392 --
40 8 -- 1,188 22,009 3,415 5 13 -- -- 1,470 57
- ---------------------------------------------------------------------------------------------------------------------------
466,658 209 3,868,907 189,937 1,407,501 818,818 16,788 13 392,132 1,000 74,862 57
- ---------------------------------------------------------------------------------------------------------------------------
(26,923) -- (403,114) (6,322) (259,945) (55,344) (662) -- (55,446) -- (4,008) --
439,735 209 3,465,793 183,615 1,147,556 763,474 16,126 13 336,686 1,000 70,854 57
808 599 200,866 17,251 764,143 669 1,013 1,000 1,000 -- 989 932
- ---------------------------------------------------------------------------------------------------------------------------
440,543 808 3,666,659 200,866 1,911,699 764,143 17,139 1,013 337,686 1,000 71,843 989
- ---------------------------------------------------------------------------------------------------------------------------
$ 446,784 $ 295,506 $3,549,960 $2,082,135 $2,132,273 $608,627 $20,547 $ 7,825 $ 60,532 $ 5,637 $203,810 $140,772
$ 325,107 194,200 2,490,945 1,556,004 1,209,464 284,350 16,287 4,252 15,498 1,126 134,399 93,382
-- -- -- -- 479,559 76,402 -- -- -- -- 21,790 37,749
-- -- -- -- 199,818 87,965 -- -- -- -- 35,724 19,499
</TABLE>
(2) Transactions in Portfolio Shares - Retirement Shares numbers are not in
thousands.
Janus Aspen Series / December 31, 1999 49
<PAGE>
Statements of | Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
High-Yield Money Market
For the fiscal year or period ended December 31 Portfolio Portfolio
(all numbers in thousands) 1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 207 $ 255 $ 2,717 $ 1,650
Net realized gain/(loss) from investment transactions (113) (51) 3 --
Change in unrealized net appreciation or depreciation
of investments and foreign currency 55 (141) -- --
- ----------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 149 63 2,720 1,650
- ----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (209) (257) (2,717) (1,650)
Net realized gain from investment transactions* -- (15) (3) --
Distributions (in excess of realized gains)* -- (51) -- --
- ----------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (209) (323) (2,720) (1,650)
- ----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 1,725 4,244 211,038 132,432
Retirement Shares -- -- 1,225 --
Reinvested dividends and distributions
Institutional Shares 208 322 2,713 1,650
Retirement Shares 1 1 7 --
Shares repurchased
Institutional Shares (3,230) (4,244) (183,175) (110,765)
Retirement Shares -- -- (90) --
- ----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (1,296) 323 31,718 23,317
- ----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (1,356) 63 31,718 23,317
Net Assets:
Beginning of period 2,988 2,925 38,701 15,384
- ----------------------------------------------------------------------------------------------------------------------
End of period $ 1,632 $ 2,988 $ 70,419 $ 38,701
- ----------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 1,811 $ 3,106 $ 70,419 $ 38,701
Undistributed net investment income/(loss)* 6 8 -- --
Undistributed net realized gain/
(loss) from investments* (164) (50) -- --
Unrealized appreciation/(depreciation)
of investments and foreign currency (21) (76) -- --
$ 1,632 $ 2,988 $ 70,419 $ 38,701
Transactions in Portfolio Shares -
Institutional Shares
Shares sold 156 356 211,038 132,432
Reinvested dividends and distributions 20 28 2,713 1,650
- ----------------------------------------------------------------------------------------------------------------------
Total 176 384 213,751 134,082
- ----------------------------------------------------------------------------------------------------------------------
Shares Repurchased (295) (357) (183,175) (110,766)
Net Increase/(Decrease) in Portfolio Shares (119) 27 30,576 23,316
Shares Outstanding, Beginning of Period 274 247 38,690 15,374
- ----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 155 274 69,266 38,690
- ----------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares -
Retirement Shares(1)
Shares sold -- -- 1,224,357 --
Reinvested dividends and distributions 83 89 7,522 496
- ----------------------------------------------------------------------------------------------------------------------
Total 83 89 1,231,879 496
- ----------------------------------------------------------------------------------------------------------------------
Shares Repurchased -- -- (89,650) --
Net Increase/(Decrease) in Portfolio Shares 83 89 1,142,229 496
Shares Outstanding, Beginning of Period 1,039 950 10,802 10,306
- ----------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 1,122 1,039 1,153,031 10,802
- ----------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 12,244 $ 8,323 -- --
Proceeds from sales of securities 13,089 9,612 -- --
Purchases of long-term U.S. government obligations 50 640 -- --
Proceeds from sales of long-term
U.S. government obligations 148 536 -- --
</TABLE>
*See Note 3 in Notes to Financial Statements.
(1) Transactions in Portfolio Shares - Retirement Shares numbers are not in
thousands.
See Notes to Financial Statements.
50 Janus Aspen Series / December 31, 1999
<PAGE>
Financial | Highlights - Institutional Shares
<TABLE>
<CAPTION>
For a share outstanding throughout, Janus Aspen Growth Portfolio
each fiscal year ended December 31 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 23.54 $ 18.48 $ 15.51 $ 13.45 $ 10.57
- -----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .07 .05 .15 .17 .28
Net gains/(losses) on securities
(both realized and unrealized) 10.24 6.36 3.34 2.29 2.90
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 10.31 6.41 3.49 2.46 3.18
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.06) (.05) (.15) (.17) (.30)
Distributions (from capital gains) (.14) (1.30) (.37) (.23) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.20) (1.35) (.52) (.40) (.30)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 33.65 $ 23.54 $ 18.48 $ 15.51 $ 13.45
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 43.98% 35.66% 22.75% 18.45% 30.17%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $2,942,649 $1,103,549 $ 608,281 $ 325,789 $ 126,911
Average Net Assets for the Period (in thousands) $1,775,373 $ 789,454 $ 477,914 $ 216,125 $ 77,344
Ratio of Gross Expenses to Average Net Assets(1) 0.67% 0.68% 0.70% 0.69% 0.78%
Ratio of Net Expenses to Average Net Assets(1) 0.67% 0.68% 0.69% 0.69% 0.76%
Ratio of Net Investment Income to Average Net Assets 0.30% 0.26% 0.91% 1.39% 1.24%
Portfolio Turnover Rate 53% 73% 122% 87% 185%
<CAPTION>
For a share outstanding throughout Janus Aspen Aggressive Growth Portfolio
each fiscal year ended December 31 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 27.64 $ 20.55 $ 18.24 $ 17.08 $ 13.62
- -----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- -- -- -- .24
Net gains/(losses) on securities
(both realized and unrealized) 33.46 7.09 2.31 1.36 3.47
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 33.46 7.09 2.31 1.36 3.71
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- -- (.25)
Distributions (from capital gains) (1.40) -- -- (.19) --
Tax return of capital -- -- -- (.01) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.40) -- -- (.20) (.25)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 59.70 $ 27.64 $ 20.55 $ 18.24 $ 17.08
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 125.40% 34.26% 12.66% 7.95% 27.48%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $3,319,619 $ 772,943 $ 508,198 $ 383,693 $ 185,911
Average Net Assets for the Period (in thousands) $1,476,445 $ 576,444 $ 418,464 $ 290,629 $ 107,582
Ratio of Gross Expenses to Average Net Assets(1) 0.70% 0.75% 0.76% 0.76% 0.86%
Ratio of Net Expenses to Average Net Assets(1) 0.69% 0.75% 0.76% 0.76% 0.84%
Ratio of Net Investment Income to Average Net Assets (0.50)% (0.36)% (0.10)% (0.27)% 0.58%
Portfolio Turnover Rate 105% 132% 130% 88% 155%
</TABLE>
(1) See footnote #5 in Notes to Financial Statements.
See Notes to Financial Statements.
Janus Aspen Series / December 31, 1999 51
<PAGE>
Financial | Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Aspen Capital Appreciation Portfolio
each fiscal year or period 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) .12 .01 .05
Net gains/(losses) on securities
(both realized and unrealized) 13.22 7.32 2.61
- -----------------------------------------------------------------------------------------------------
Total from Investment Operations 13.34 7.33 2.66
- -----------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.11) (.01) (.04)
Distributions (from capital gains) -- -- --
- -----------------------------------------------------------------------------------------------------
Total Distributions (.11) (.01) (.04)
- -----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 33.17 $ 19.94 $ 12.62
- -----------------------------------------------------------------------------------------------------
Total Return* 67.00% 58.11% 26.60%
- -----------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 626,611 $ 74,187 $ 6,833
Average Net Assets for the Period (in thousands) $ 257,422 $ 25,964 $ 2,632
Ratio of Gross Expenses to Average Net Assets**(2) 0.70% 0.92% 1.26%
Ratio of Net Expenses to Average Net Assets**(2) 0.70% 0.91% 1.25%
Ratio of Net Investment Income to Average Net Assets** 0.76% 0.27% 1.43%
Portfolio Turnover Rate** 52% 91% 101%
<CAPTION>
For a share outstanding throughout Janus Aspen International Growth Portfolio
each fiscal year ended December 31 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 21.27 $ 18.48 $ 15.72 $ 11.95 $ 9.72
- -----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .06 .13 .11 .05 .09
Net gains/(losses) on securities
(both realized and unrealized) 17.40 3.07 2.80 4.06 2.16
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 17.46 3.20 2.91 4.11 2.25
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.06) (.14) (.11) (.11) (.02)
Distributions (from capital gains) -- -- (.01) (.23) --
Distributions (in excess of realized gains) -- (.27) (.03) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.06) (.41) (.15) (.34) (.02)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 38.67 $ 21.27 $ 18.48 $ 15.72 $ 11.95
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 82.27% 17.23% 18.51% 34.71% 23.15%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 810,392 $ 311,110 $ 161,091 $ 27,192 $ 1,608
Average Net Assets for the Period (in thousands) $ 425,876 $ 234,421 $ 96,164 $ 7,437 $ 1,792
Ratio of Gross Expenses to Average Net Assets(2) 0.77% 0.86% 0.96% 1.26% 2.69%
Ratio of Net Expenses to Average Net Assets(2) 0.76% 0.86% 0.96% 1.25% 2.50%
Ratio of Net Investment Income to Average Net Assets 0.26% 0.73% 0.70% 0.62% (.80)%
Portfolio Turnover Rate 80% 93% 86% 65% 211%
</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.
52 Janus Aspen Series / December 31, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Aspen Worldwide Growth Portfolio
each fiscal year ended December 31 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 29.09 $ 23.39 $ 19.44 $ 15.31 $ 12.07
- -----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .07 .16 .16 .16 .11
Net gains/(losses) on securities
(both realized and unrealized) 18.65 6.59 4.14 4.27 3.19
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 18.72 6.75 4.30 4.43 3.30
- -----------------------------------------------------------------------------------------------------------------------------------
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) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.06) (1.05) (.35) (.30) (.06)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 47.75 $ 29.09 $ 23.39 $ 19.44 $ 15.31
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 64.45% 28.92% 22.15% 29.04% 27.37%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $6,496,773 $2,890,375 $1,576,548 $ 582,603 $ 108,563
Average Net Assets for the Period (in thousands) $3,862,773 $2,217,695 $1,148,951 $ 304,111 $ 59,440
Ratio of Gross Expenses to Average Net Assets(1) 0.71% 0.72% 0.74% 0.80% 0.90%
Ratio of Net Expenses to Average Net Assets(1) 0.71% 0.72% 0.74% 0.80% 0.87%
Ratio of Net Investment Income to Average Net Assets 0.20% 0.64% 0.67% 0.83% 0.95%
Portfolio Turnover Rate 67% 77% 80% 62% 113%
<CAPTION>
For a share outstanding throughout Janus Aspen Balanced Portfolio
each fiscal year ended December 31 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 22.50 $ 17.47 $ 14.77 $ 13.03 $ 10.63
- -----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .59 .39 .34 .32 .17
Net gains/(losses) on securities
(both realized and unrealized) 5.38 5.51 2.89 1.81 2.45
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 5.97 5.90 3.23 2.13 2.62
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.56) (.38) (.35) (.30) (.22)
Distributions (from capital gains) -- (.45) (.18) (.09) --
Distributions (in excess of realized gains) -- (.04) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.56) (.87) (0.53) (.39) (.22)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 27.91 $ 22.50 $ 17.47 $ 14.77 $ 13.03
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 26.76% 34.28% 22.10% 16.18% 24.79%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $2,453,079 $ 882,495 $ 362,409 $ 85,480 $ 14,021
Average Net Assets for the Period (in thousands) $1,583,635 $ 555,002 $ 176,432 $ 43,414 $ 5,739
Ratio of Gross Expenses to Average Net Assets(1) 0.69% 0.74% 0.83% 0.94% 1.37%
Ratio of Net Expenses to Average Net Assets(1) 0.69% 0.74% 0.82% 0.92% 1.30%
Ratio of Net Investment Income to Average Net Assets 2.86% 2.41% 2.87% 2.92% 2.41%
Portfolio Turnover Rate 92% 70% 139% 103% 149%
</TABLE>
(1) See footnote #5 in Notes to Financial Statements.
Janus Aspen Series / December 31, 1999 53
<PAGE>
Financial | Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Aspen Equity Income Portfolio
each fiscal year or period 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) .07 .02 .01
Net gains/(losses) on securities
(both realized and unrealized) 7.99 6.16 3.46
- -----------------------------------------------------------------------------------------------------
Total from Investment Operations 8.06 6.18 3.47
- -----------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.06) (.02) (.01)
Distributions (from capital gains) (.09) (.21) --
- -----------------------------------------------------------------------------------------------------
Total Distributions (.15) (.23) (.01)
- -----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 27.32 $ 19.41 $ 13.46
- -----------------------------------------------------------------------------------------------------
Total Return* 41.58% 46.24% 34.70%
- -----------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 18,975 $ 9,017 $ 3,047
Average Net Assets for the Period (in thousands) $ 14,663 $ 5,629 $ 1,101
Ratio of Gross Expenses to Average Net Assets**(2) 1.25% 1.25% 1.25%
Ratio of Net Expenses to Average Net Assets**(2) 1.25% 1.25% 1.25%
Ratio of Net Investment Income to Average Net Assets** 0.31% 0.17% 0.35%
Portfolio Turnover Rate** 114% 79% 128%
<CAPTION>
For a share outstanding throughout Janus Aspen Growth and Income Portfolio
each fiscal year or period ended December 31 1999 1998(3)
- --------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 11.96 $ 10.00
- --------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .04 .02
Net gains/(losses) on securities
(both realized and unrealized) 8.81 1.96
- --------------------------------------------------------------------------------------
Total from Investment Operations 8.85 1.98
- --------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.04) (.02)
Distributions (from capital gains) -- --
- --------------------------------------------------------------------------------------
Total Distributions (.04) (.02)
- --------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 20.77 $ 11.96
- --------------------------------------------------------------------------------------
Total Return* 74.04% 19.80%
- --------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 84,480 $ 6,413
Average Net Assets for the Period (in thousands) $ 28,838 $ 2,883
Ratio of Gross Expenses to Average Net Assets**(2) 1.06% 1.25%
Ratio of Net Expenses to Average Net Assets**(2) 1.05% 1.25%
Ratio of Net Investment Income to Average Net Assets** 0.56% 0.66%
Portfolio Turnover Rate** 59% 62%
</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.
(3) Period May 1, 1998, (inception) to December 31, 1998.
See Notes to Financial Statements.
54 Janus Aspen Series / December 31, 1999
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Aspen Flexible Income Portfolio
each fiscal year ended December 31 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.05 $ 11.78 $ 11.24 $ 11.11 $ 9.48
- -----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .76 .64 .67 .74 .53
Net gains/(losses) on securities
(both realized and unrealized) (.58) .41 .62 .24 1.70
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .18 1.05 1.29 .98 2.23
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.75) (.67) (.64) (.72) (.60)
Distributions (from capital gains) (.07) (.11) (.11) (.13) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.82) (.78) (.75) (.85) (.60)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.41 $ 12.05 $ 11.78 $ 11.24 $ 11.11
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 1.60% 9.11% 11.76% 9.19% 23.86%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 186,681 $ 129,582 $ 54,098 $ 25,315 $ 10,831
Average Net Assets for the Period (in thousands) $ 161,459 $ 86,627 $ 36,547 $ 17,889 $ 5,556
Ratio of Gross Expenses to Average Net Assets(1) 0.72% 0.73% 0.75% 0.84% 1.07%
Ratio of Net Expenses to Average Net Assets(1) 0.72% 0.73% 0.75% 0.83% 1.00%
Ratio of Net Investment Income to Average Net Assets 6.99% 6.36% 6.90% 7.31% 7.46%
Portfolio Turnover Rate 116% 145% 119% 250% 236%
<CAPTION>
For a share outstanding throughout Janus Aspen High-Yield Portfolio
each fiscal year or period 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) 1.14 .87 .70 .43
Net gains/(losses) on securities
(both realized and unrealized) (.41) (.70) .99 .80
- --------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .73 .17 1.69 1.23
- --------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (1.13) (.89) (.68) (.40)
Distributions (from capital gains) -- (.05) (.06) --
Distributions (in excess of realized gains) -- (.16) -- --
- --------------------------------------------------------------------------------------------------------------------
Total Distributions (1.13) (1.10) (.74) (.40)
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.45 $ 10.85 $ 11.78 $ 10.83
- --------------------------------------------------------------------------------------------------------------------
Total Return* 6.85% 1.26% 15.98% 12.40%
- --------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,620 $ 2,977 $ 2,914 $ 783
Average Net Assets for the Period (in thousands) $ 2,448 $ 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** 8.41% 7.76% 7.98% 5.74%
Portfolio Turnover Rate** 554% 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.
Janus Aspen Series / December 31, 1999 55
<PAGE>
Financial | Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding throughout Janus Aspen Money Market Portfolio
each fiscal year or period 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) .05 .05 .05 .05 .04
Net gains/(losses) on securities
(both realized and unrealized) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .05 .05 .05 .05 .04
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.05) (.05) (.05) (.05) (.04)
Distributions (from capital gains) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.05) (.05) (.05) (.05) (.04)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return* 4.98% 5.36% 5.17% 5.05% 3.63%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 69,266 $ 38,690 $ 15,374 $ 6,106 $ 1,735
Average Net Assets for the Period (in thousands) $ 54,888 $ 31,665 $ 8,926 $ 3,715 $ 1,543
Ratio of Gross Expenses to Average Net Assets**(2) 0.43% 0.34% 0.50% 0.50% 0.50%
Ratio of Net Expenses to Average Net Assets**(2) 0.43% 0.34% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to Average Net Assets** 4.94% 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.
See Notes to Financial Statements.
56 Janus Aspen Series / December 31, 1999
<PAGE>
Financial | Highlights - Retirement Shares
<TABLE>
<CAPTION>
Janus Aspen
For a share outstanding throughout Janus Aspen Growth Portfolio Aggressive Growth Portfolio
each fiscal year or period 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) .07 (.03) .04 .19 (.12) (.06)
Net gains/(losses) on securities 10.25 6.32 2.71 32.70 7.05 4.43
(both realized and unrealized)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 10.32 6.29 2.75 32.89 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 $ 33.63 $ 23.45 $ 18.46 $ 58.91 $ 27.42 $ 20.49
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return* 44.12% 34.99% 17.22% 124.34% 33.58% 27.11%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 59,334 $ 18 $ 12 $ 47,928 $ 17 $ 13
Average Net Assets for the Period (in thousands) $ 12,209 $ 13 $ 11 $ 9,786 $ 14 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.17% 1.18% 1.20% 1.19% 1.26% 1.32%
Ratio of Net Expenses to Average Net Assets**(2) 1.17% 1.18% 1.20% 1.19% 1.26% 1.32%
Ratio of Net Investment Income/
(Loss) to Average Net Assets** (0.25)% (0.23)% 0.29% (1.00)% (0.86)% (0.62)%
Portfolio Turnover Rate** 53% 73% 122% 105% 132% 130%
<CAPTION>
Janus Aspen Capital Janus Aspen International
For a share outstanding throughout Appreciation Portfolio Growth Portfolio
each fiscal year or period 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) (.08) (.04) .12 -- .05 .04
Net gains/(losses) on securities
(both realized and unrealized) 13.22 7.28 2.50 17.30 3.07 1.73
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 13.14 7.24 2.62 17.30 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 $ 33.00 $ 19.86 $ 12.62 $ 38.56 $ 21.27 $ 18.44
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return* 66.16% 57.37% 26.20% 81.32% 16.86% 10.53%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 23,529 $ 20 $ 13 $ 16,986 $ 17 $ 11
Average Net Assets for the Period (in thousands) $ 4,402 $ 15 $ 12 $ 3,738 $ 13 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.19% 1.44% 1.73% 1.25% 1.35% 1.45%
Ratio of Net Expenses to Average Net Assets**(2) 1.19% 1.44% 1.73% 1.24% 1.35% 1.45%
Ratio of Net Investment Income/
(Loss) to Average Net Assets** 0.23% (0.25)% 1.55% (0.29)% 0.26% 0.26%
Portfolio Turnover Rate** 52% 91% 101% 80% 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 / December 31, 1999 57
<PAGE>
Financial | Highlights - Retirement Shares (continued)
<TABLE>
<CAPTION>
Janus Aspen Worldwide Janus Aspen
For a share outstanding throughout Growth Portfolio Balanced Portfolio
each fiscal year or period 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) (.04) .02 .14 .46 .21 .27
Net gains/(losses) on securities
(both realized and unrealized) 18.54 6.57 2.80 5.41 5.58 2.30
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 18.50 6.59 2.94 5.87 5.79 2.57
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- (.02) (.14) (.42) (.18) (.30)
Distributions (from capital gains) -- (.87) (.16) -- (.49) (.18)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.89) (.30) (.42) (.67) (.48)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 47.56 $ 29.06 $ 23.36 $ 28.04 $ 22.59 $ 17.47
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return* 63.66% 28.25% 14.22% 26.13% 33.59% 16.92%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 174,399 $ 5,837 $ 403 $ 53,598 $ 17,262 $ 12
Average Net Assets for the Period (in thousands) $ 49,424 $ 1,742 $ 11 $ 28,498 $ 3,650 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.21% 1.22% 1.26% 1.19% 1.24% 1.32%
Ratio of Net Expenses to Average Net Assets**(2) 1.21% 1.22% 1.26% 1.19% 1.24% 1.32%
Ratio of Net Investment Income/
(Loss) to Average Net Assets** (0.34)% (0.02)% 0.16% 2.36% 2.04% 2.38%
Portfolio Turnover Rate** 67% 77% 80% 92% 70% 139%
<CAPTION>
Janus Aspen Equity Income Janus Aspen Growth and
For a share outstanding throughout Portfolio Income Portfolio
each fiscal year or period 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) .03 (.05) .01 (.01) .01
Net gains/(losses) on securities
(both realized and unrealized) 7.85 6.12 3.41 8.75 1.93
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 7.88 6.07 3.42 8.74 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 $ 27.07 $ 19.28 $ 13.42 $ 20.68 $ 11.94
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return* 40.94% 45.55% 34.20% 73.20% 19.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 464 $ 20 $ 13 $ 6,982 $ 12
Average Net Assets for the Period (in thousands) $ 128 $ 16 $ 12 $ 1,826 $ 10
Ratio of Gross Expenses to Average Net Assets**(2) 1.78% 1.75% 1.74% 1.53% 1.72%
Ratio of Net Expenses to Average Net Assets**(2) 1.77% 1.75% 1.74% 1.53% 1.72%
Ratio of Net Investment Income/(Loss) to Average Net Assets** (0.04)% (0.33)% 0.07% 0.11% 0.21%
Portfolio Turnover Rate** 114% 79% 128% 59% 62%
</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.
(3) Period May 1, 1998, (inception) to December 31, 1998.
See Notes to Financial Statements.
58 Janus Aspen Series / December 31, 1999
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Flexible Income Janus Aspen
For a share outstanding throughout Portfolio High-Yield Portfolio
each fiscal year or period 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) .37 .73 .50 .89 .87 .59
Net gains/(losses) on securities
(both realized and unrealized) (.27) .27 .58 (.21) (.77) .71
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .10 1.00 1.08 .68 .10 1.30
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.36) (.61) (.61) (.85) (.83) (.65)
Distributions (from capital gains) (.07) (.11) (.11) -- (.21) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.43) (.72) (.72) (.85) (1.04) (.71)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.72 $ 12.05 $ 11.77 $ 10.67 $ 10.84 $ 11.78
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return* 0.90% 8.58% 9.73% 6.35% 0.67% 11.96%
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 842 $ 12 $ 11 $ 12 $ 11 $ 11
Average Net Assets for the Period (in thousands) $ 250 $ 11 $ 10 $ 12 $ 12 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.20% 1.24% 1.23% 1.50% 1.50% 1.50%
Ratio of Net Expenses to Average Net Assets**(2) 1.20% 1.23% 1.23% 1.50% 1.50% 1.50%
Ratio of Net Investment Income to
Average Net Assets** 6.80% 5.92% 6.39% 8.05% 7.33% 7.42%
Portfolio Turnover Rate** 116% 145% 119% 554% 301% 299%
<CAPTION>
Janus Aspen Money
For a share outstanding throughout Market Portfolio
each fiscal year or period 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) .04 .05 .03
Net gains/(losses) on securities
(both realized and unrealized) -- -- --
- -----------------------------------------------------------------------------------------------------
Total from Investment Operations .04 .05 .03
- -----------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.04) (.05) (.03)
Distributions (from capital gains) -- -- --
- -----------------------------------------------------------------------------------------------------
Total Distributions (.04) (.05) (.03)
- -----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00
- -----------------------------------------------------------------------------------------------------
Total Return* 4.45% 4.85% 3.13%
- -----------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,153 $ 11 $ 10
Average Net Assets for the Period (in thousands) $ 150 $ 10 $ 10
Ratio of Gross Expenses to Average Net Assets**(2) 0.86% 0.84% 1.00%
Ratio of Net Expenses to Average Net Assets**(2) 0.86% 0.84% 1.00%
Ratio of Net Investment Income to Average Net Assets** 5.18% 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.
Janus Aspen Series / December 31, 1999 59
<PAGE>
Notes to | Schedules of Investments
ADR - American Depository Receipt
EUR - Euro
GBP - British Pound
GDR - Global Depository Receipt
* Non-income-producing security
** A portion of this security has been segregated 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.
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 December 31, 1999.
Money market funds may hold securities with stated maturities of greater than
397 days when those securities have features that allow a fund to "put" back the
security to the issuer or to a third party within 397 days of acquisition. The
maturity dates shown in the security descriptions are the stated maturity dates.
Repurchase Agreements held by a 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.
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 12/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
British Telecommunications PLC 1,498,957 $ 25,502,610 1,498,957 $ 23,251,370 $ (2,251,240) -- --
Vodafone AirTouch PLC(1)(2) 912,595 4,181,949 4,009,075 20,239,817 16,057,868 $ 58,864 $ 9,770,417
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Name change from Vodafone Group PLC to Vodafone AirTouch PLC, effective
6/30/99.
(2) Adjusted for 5-for-1 stock split 10/4/99.
60 Janus Aspen Series / December 31, 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 the Retirement Shares. Retirement Shares of the Trust are issued and
redeemed only in connection with certain qualified retirement plans.
Effective December 31, 1999, the Trust issued a new class of shares, the
Service Shares. Janus Capital invested $10,000 of initial seed capital in
each Portfolio of the Service Shares, which is not reflected in the financial
statements.
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.
Income and gains and losses are allocated daily to each class of shares based
upon the ratio of net assets represented by each class as a percentage of
total net assets.
FORWARD CURRENCY TRANSACTIONS AND FUTURES CONTRACTS
The Portfolios enter into forward currency contracts in order to hedge their
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to lock in the U.S. dollar cost of firm purchase and
sales commitments denominated in foreign currencies. A forward currency
contract is a commitment to purchase or sell a foreign currency at a future
date at a negotiated forward rate. The gain or loss arising from the
difference between the U.S. dollar cost of the original contract and the
value of the foreign currency in U.S. dollars upon closing such contract is
included in net realized gain or loss on foreign currency transactions.
Forward currency contracts held by the Portfolios are fully collateralized by
other securities, 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 / December 31, 1999 61
<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.
INITIAL PUBLIC OFFERINGS
The Portfolios may invest in initial public offerings (IPOs). IPOs and other
investment techniques may have a magnified performance impact on a fund with
a small asset base. The Portfolios may not experience similar performance as
its assets grow.
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.
Expenses are allocated daily to each class of shares based upon the ratio of
net assets represented by each class as a percentage of total net assets.
Expenses directly attributable to a specific class of shares are charged
against the operations of such class.
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 December 31, 1999, was
.65%, .66%, .65%, .65%, .65%, .66%, .69%, and .65%, 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
62 Janus Aspen Series / December 31, 1999
<PAGE>
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. The management fee for each equity
Portfolio will decrease to an annual rate of .65% of average net assets,
effective May 1, 2000. The management fee for the corresponding Janus retail
fund corresponding to each equity Portfolio will also decrease to this rate,
effective January 31, 2000. Due to the fee reductions described above, this
will have the effect of lowering each equity Portfolio's management fee on
January 31, 2000 also.
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.
Officers and certain trustees of the Trust are also officers and/or directors
of Janus Capital; however, they receive no compensation from the Trust.
Janus Service Corporation ("Janus Service"), a wholly owned subsidiary of
Janus Capital, receives certain out-of-pocket expenses for transfer agent
services. Janus Service also receives an administrative fee at an annual rate
of up to .25% of the average daily net assets of the Retirement Shares of
each Portfolio for providing or procurring recordkeeping, subaccounting and
other administrative services to plan participants who invest in the
Retirement Shares.
Janus Distributors, Inc., a wholly owned subsidiary of Janus Capital, is a
distributor of the Portfolios. The Retirement Shares have adopted a
Distribution and Shareholder Servicing Plan (The "Plan") pursuant to Rule
12b-1 under The 1940 Act. The Plan authorizes payments by the Portfolios in
connection with the distribution of the Retirement Shares at an annual rate
as determined from time to time by the Board of Trustees, of up to .25% of
the Retirement Shares average daily net assets.
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 December
31, 1999, are noted below:
Portfolio DST
DST Securities, Inc. Expense Systems
Portfolio Commissions Paid* Reduction* Costs
- --------------------------------------------------------------------------------
Janus Aspen Growth Portfolio $7,244 $5,433 $15,290
Janus Aspen Aggressive Growth Portfolio -- -- 19,912
Janus Aspen Capital Appreciation Portfolio -- -- 15,845
Janus Aspen International Growth Portfolio -- -- 19,106
Janus Aspen Worldwide Growth Portfolio -- -- 20,963
Janus Aspen Balanced Portfolio 2,294 1,721 18,203
Janus Aspen Equity Income Portfolio -- -- 12,975
Janus Aspen Growth and Income Portfolio 55 41 12,831
Janus Aspen Flexible Income Portfolio -- -- 15,380
Janus Aspen High-Yield Portfolio -- -- 13,271
Janus Aspen Money Market Portfolio -- -- 14,183
- --------------------------------------------------------------------------------
*The difference between commissions paid to DST Securities, Inc. and expenses
reduced constituted commissions paid to an unaffiliated clearing broker.
Janus Aspen Series / December 31, 1999 63
<PAGE>
Notes to | Financial Statements (continued)
3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
generally accepted accounting principles. These differences are due to
differing treatments for items such as deferral of wash sales, foreign
currency transactions, net operating losses and capital loss carryforwards.
Permanent items identified in the period ended December 31, 1999, have been
reclassified among the components of net assets as follows:
<TABLE>
<CAPTION>
Undistributed Undistributed
Net Investment Net Realized Paid-In
Portfolio Income Gains and Losses Capital
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Aspen Growth Portfolio $ (11,765) $ 11,765 --
Janus Aspen Aggressive Growth Portfolio 7,527,228 (7,527,228) --
Janus Aspen Capital Appreciation Portfolio -- -- --
Janus Aspen International Growth Portfolio (18,842) 29,025 $(10,183)
Janus Aspen Worldwide Growth Portfolio (259,959) 258,285 1,674
Janus Aspen Balanced Portfolio (658) 658 --
Janus Aspen Equity Income Portfolio 642 (619) (23)
Janus Aspen Growth and Income Portfolio (12) 12 --
Janus Aspen Flexible Income Portfolio (33,545) 33,545 --
Janus Aspen High-Yield Portfolio (5) 5 --
Janus Aspen Money Market Portfolio -- -- --
- --------------------------------------------------------------------------------------------------
</TABLE>
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, 1999, 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,
2006, and December 31, 2007. In 1999, the Portfolios noted below incurred
"post-October" losses during the period from November 1 through December 31,
1999. These losses will be deferred for tax purposes and recognized in 2000.
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes
as of December 31, 1999, are also noted below.
<TABLE>
<CAPTION>
Post-October
Net Capital Loss Capital Currency Federal Tax Unrealized Unrealized Net Appreciation/
Portfolio Carryovers Losses Losses Cost Appreciation (Depreciation) (Depreciation)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio -- -- $ (60) $2,100,890,465 $ 943,897,578 $(39,915,672) $ 903,981,906
Janus Aspen Aggressive
Growth Portfolio -- -- (1,984) 1,988,299,589 1,444,189,703 (58,621,505) 1,385,568,198
Janus Aspen Capital
Appreciation Portfolio -- $(873,431) -- 458,530,698 193,402,302 (3,233,626) 190,168,676
Janus Aspen International
Growth Portfolio $(6,761,112) -- -- 431,824,563 390,569,269 (2,585,993) 387,983,276
Janus Aspen Worldwide
Growth Portfolio -- -- (8,857) 3,665,423,316 2,980,814,257 (36,095,696) 2,944,718,561
Janus Aspen
Balanced Portfolio -- -- (7,055) 2,052,852,851 423,579,434 (44,119,544) 379,459,890
Janus Aspen Equity
Income Portfolio -- -- (45) 13,987,700 5,380,028 (125,037) 5,254,991
Janus Aspen Growth
and Income Portfolio -- (11,710) -- 68,769,859 24,424,222 (885,049) 23,539,173
Janus Aspen Flexible
Income Portfolio (2,276,738) -- (30,342) 189,928,606 1,706,485 (5,544,612) (3,838,127)
Janus Aspen High-Yield
Portfolio (147,288) (15,207) -- 1,624,276 20,862 (43,454) (22,592)
Janus Aspen Money
Market Portfolio -- -- -- 71,436,869 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
64 Janus Aspen Series / December 31, 1999
<PAGE>
Janus Aspen International Growth and Janus Aspen Worldwide Growth have
elected to pass through to shareholders foreign taxes under Section 853.
Foreign taxes paid and foreign source income for the Portfolios making the
election are as folllows:
Foreign Foreign
Portfolio Taxes Paid Source Income
- --------------------------------------------------------------------------------
Janus Aspen International Growth Portfolio $ 314,263 $ 735,108
Janus Aspen Worldwide Growth Portfolio $2,457,139 $4,934,026
- --------------------------------------------------------------------------------
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.
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, offsets 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.
<TABLE>
<CAPTION>
Institutional Shares Retirement Shares
Portfolio 1999 1998 1997 1996 1995 1999 1998 1997(2)
- ------------------------------------------------------------------------------------------------ --------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio 0.69% 0.75% 0.78% 0.83% 0.98% 1.19% 1.25% 1.28%
Janus Aspen Aggressive Growth Portfolio 0.70% 0.75% 0.78% 0.83% 0.93% 1.19% 1.26% 1.34%
Janus Aspen Capital Appreciation Portfolio 0.79% 0.97% 2.19%(2) N/A N/A 1.28% 1.49% 2.66%
Janus Aspen International Growth Portfolio 0.84% 0.95% 1.08% 2.21% 3.57% 1.32% 1.44% 1.57%
Janus Aspen Worldwide Growth Portfolio 0.71% 0.74% 0.81% 0.91% 1.09% 1.21% 1.24% 1.32%
Janus Aspen Balanced Portfolio 0.69% 0.74% 0.83% 1.07% 1.55% 1.19% 1.26% 1.33%
Janus Aspen Equity Income Portfolio 1.38% 1.86% 5.75%(2) N/A N/A 1.91% 2.36% 6.19%
Janus Aspen Growth and Income Portfolio 1.15% 3.06%(1) N/A N/A N/A 1.62% 3.53%(1) N/A
Janus Aspen Flexible Income Portfolio 0.72% 0.73% 0.75% 0.84% 1.07% 1.20% 1.24% 1.23%
Janus Aspen High-Yield Portfolio 4.92% 2.11% 3.27% 6.29%(3) N/A 5.42% 2.61% 3.42%
Janus Aspen Money Market Portfolio 0.43% 0.34% 0.55% 0.78% 1.07%(4) 0.86% 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.
Janus Aspen Series / December 31, 1999 65
<PAGE>
Explanations of | Charts, Tables and Financial Statements
1. PERFORMANCE OVERVIEWS
Performance overview graphs on the previous pages compare the performance of
a $10,000 investment in Institutional Shares of each Portfolio (from
inception) to one or more widely used market indexes through December 31,
1999.
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.
66 Janus Aspen Series / December 31, 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 section 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 all 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.
Janus Aspen Series / December 31, 1999 67
<PAGE>
Explanations of | Charts, Tables and Financial Statements (continued)
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. The expense ratios listed in the Financial
Highlights reflect total expenses both prior to any expense offset and after
the offsets.
The ratio of net investment income summarizes the income earned divided by
the average net assets of a 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.
68 Janus Aspen Series / December 31, 1999
<PAGE>
Report of | Independent Accountants
To the Trustees and Shareholders
of Janus Aspen Series
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Janus Aspen Growth Portfolio, Janus
Aspen Aggressive Growth Portfolio, Janus Aspen 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, and Janus Aspen Money Market Portfolio
(constituting the Janus Aspen Series, hereafter referred to as the "Portfolios")
at December 31, 1999, the results of each of their operations for the year then
ended, the changes in each of their net assets and the financial highlights for
each of the periods indicated, in conformity with accounting principles
generally accepted in the United States. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolios' management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
/s/ PricewaterhouseCoopers LLP
Denver, Colorado
February 2, 2000
Janus Aspen Series / December 31, 1999 69
<PAGE>
Janus logo goes here
100 Fillmore Street
Denver, Colorado 80206-4923
1-800-504-4440
Portfolios distributed by Janus Distributors, Inc. Member NASD.
This material must be preceded or accompanied by a prospectus, which contains
more information including expenses. Read it carefully before you invest or send
money.
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