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Janus|Aspen Series
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2000 SEMIANNUAL REPORT
Janus Aspen Growth Portfolio
Janus Aspen Aggressive Growth Portfolio
Janus Aspen Capital Appreciation Portfolio
Janus Aspen Balanced Portfolio
Janus Aspen Equity Income Portfolio
Janus Aspen Growth and Income Portfolio
Janus Aspen Strategic Value Portfolio
Janus Aspen International Growth Portfolio
Janus Aspen Worldwide Growth Portfolio
Janus Aspen Global Life Sciences Portfolio
Janus Aspen Global Technology Portfolio
Janus Aspen Flexible Income Portfolio
Janus Aspen High-Yield Portfolio
Janus Aspen Money Market Portfolio
[LOGO] JANUS
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<PAGE>
Table|of Contents
JANUS ASPEN SERIES
Portfolio Managers' Commentaries and Schedules of Investments
Growth Portfolio ....................................................... 1
Aggressive Growth Portfolio ............................................ 5
Capital Appreciation Portfolio ......................................... 8
Balanced Portfolio ..................................................... 11
Equity Income Portfolio ................................................ 17
Growth and Income Portfolio ............................................ 21
Strategic Value Portfolio .............................................. 25
International Growth Portfolio ......................................... 28
Worldwide Growth Portfolio ............................................. 33
Global Life Sciences Portfolio ......................................... 38
Global Technology Portfolio ............................................ 41
Flexible Income Portfolio .............................................. 46
High-Yield Portfolio ................................................... 51
Money Market Portfolio ................................................. 54
Statements of Operations .................................................. 56
Statements of Assets & Liabilities ........................................ 58
Statements of Changes in Net Assets ....................................... 60
Financial Highlights ...................................................... 64
Notes to Schedules of Investments ......................................... 78
Notes to Financial Statements ............................................. 79
Explanations of Charts, Tables
and Financial Statements ............................................... 84
[LOGO] Janus
<PAGE>
Janus|Aspen Growth Portfolio
[PHOTO]
Blaine Rollins
portfolio manager
For the six-month period ended June 30, 2000, Janus Aspen Growth Portfolio
returned 1.72% for its Institutional Shares, 1.52% for its Retirement Shares and
1.61% for its Service Shares. By comparison, the Portfolio's benchmark, the S&P
500 Index, declined (0.43%).(1)
Our success over this period occurred in the face of a tremendous amount of
volatility in U.S. equity markets. This was caused by uncertainty over how
strong the economy would remain and whether or not rate hikes by the Federal
Reserve could actually moderate economic growth. After three rate increases in
the first six months of the year, including a half-point boost in mid-May, some
signs of mellowing sprouted in early June, aided by rising oil prices. By its
late-June meeting, the Fed decided further tightening wasn't necessary.
Nonetheless, policymakers' continued wariness over low unemployment suggests
future rate hikes may be in store.
In this unpredictable market, it's tough to pinpoint clear winners, but the
stocks that have been extremely strong are those that continue to see solid
underlying demand for their products and services. Three of our semiconductor
holdings - Linear Technology, Maxim Integrated Products and Texas Instruments -
illustrate this. These companies have graduated to our top 15 holdings as a
result of huge demand for their chips. Practical applications for their chips
include wireless products, networking products and mobile computing devices such
as laptops and handhelds.
Efficiently run businesses also breed success, as we've seen in Viacom. After it
finalizes its merger with CBS in early May, we're expecting to see some real
cost and revenue synergies emerge. Advertising gains at MTV remain impressive,
and CBS Television Network has had some great ratings improvements, which also
has led to high advertising gains. We're anticipating much more cash flow from
the combined company and remain excited about its long-term future.
Our long-term position in Bank of New York also posted solid gains during the
period. The bulk of the company's revenues are found in the security processing
business, which has remained extremely strong, while its global credit exposure
is far smaller than most other banks. Because of allegations about laundering
money for Russian interests, the stock price temporarily dropped during the
period, so we increased our position and have since been rewarded by a
significant price appreciation. We've held this stock for eight years, so it was
easy to stick to our story and profit from our conviction.
Stories can change, as well, and we certainly aren't adverse to reacting when
that happens. After some of our pharmaceutical holdings made a decent move in
the market's turn to safety during the period, we reduced our exposure.
Uncertain data points out of Washington led us to believe drug pricing may come
under pressure, so we thought it best to move to the sidelines and wait for the
next opportunity.
It may be a while before we see strong opportunities in cruise line companies
like Royal Caribbean Cruises and Carnival, which have been very disappointing in
2000. In that industry, capacity additions have led to lower per-person revenue
expectations, and, in turn, the stocks have dropped dramatically. Also dragging
on the Portfolio's performance was McDonald's, which was hurt by slow product
introductions and by the strong dollar in its international business.
Over the next six months, we're expecting market volatility to continue as
uncertainty over the pace of economic growth lingers. Although we're seeing data
that says the economy is slowing down, it needs to translate into lower
inflationary pressures.
While the economy sorts itself out, we're focusing on uncovering companies that
are finding ways to grow their earnings faster than their peers and the rest of
the market. There are a lot of opportunities to invest in dynamic companies in
many different industries - not just technology. And once we find those
companies, it comes down to having conviction in the names you own - not just
owning the winners, but also having the patience to buy names cheaper and take
profits in companies where the fundamentals appear to be slowing.
By knowing our companies inside and out, and standing by them through volatile
times, we believe we can eliminate surprises and increase our potential for
delivering positive long-term results.
Thank you for your continued investment in Janus Aspen Growth Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
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Equities 89.7% 89.4%
Foreign 9.3% 9.5%
Europe 6.2% 6.0%
Top 10 Equities 34.9% 33.0%
Number of Stocks 90 75
Cash, Cash Equivalents
& Fixed-Income Securities 10.3% 10.6%
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(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 1
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 25.54%
5 Year 26.98%
From Inception 22.63%
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S&P 500 Index
1 Year 7.24%
5 Year 23.80%
From Inception Date of Institutional Shares 20.85%
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Retirement Shares (Inception Date 5/1/97)
1 Year 24.97%
5 Year 26.37%
From Portfolio Inception 21.87%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 24.84%
5 Year 26.62%
From Portfolio Inception 22.24%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
Shares.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
(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 waived a portion of the Portfolio's expenses
during certain periods. Without such waiver, the Portfolio's total returns
for each class would have been lower. Past performance does not guarantee
future results.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
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Common Stock - 89.6%
Aerospace and Defense - 0.4%
663,530 Lockheed Martin Corp. .......................... $ 16,463,838
Beverages - Non-Alcoholic - 0.3%
660,735 Coca-Cola Enterprises, Inc. .................... 10,778,240
Broadcast Services and Programming - 3.0%
2,822,280 AT&T Corp./Liberty Media Group - Class A* ...... 68,440,290
728,360 Clear Channel Communications, Inc.* ............ 54,627,000
123,067,290
Cable Television - 5.2%
256,190 Adelphia Communications Corp. - Class A* ....... 12,008,906
392,280 Charter Communications, Inc. - Class A* ........ 6,448,103
4,339,430 Comcast Corp. - Special Class A* ............... 175,746,915
4,885,741 Telewest Communications PLC*,** ................ 17,068,816
211,272,740
Casino Hotels - 0.4%
1,285,680 Park Place Entertainment Corp.* ................ 15,669,225
Cellular Telecommunications - 2.8%
810,000 Nextel Communications, Inc. - Class A* ......... 49,561,875
1,204 NTT DoCoMo, Inc.** ............................. 32,660,027
228,395 Sprint Corp./PCS Group* ........................ 13,589,503
123,983 VoiceStream Wireless Corp.* .................... 14,418,835
109,283 Winstar Communications, Inc.* .................. 3,701,962
113,932,202
Circuits - 5.9%
100,185 Integrated Device Technology, Inc.* ............ $ 5,998,577
1,912,800 Linear Technology Corp. ........................ 122,299,650
1,683,400 Maxim Integrated Products, Inc.* ............... 114,365,988
242,664,215
Commercial Banks - 0.2%
18,395 M&T Bank Corp. ................................. 8,277,750
Commercial Services - 0.6%
583,032 Paychex, Inc. .................................. 24,487,344
Computer Data Security - 1.9%
447,158 VeriSign, Inc.* ................................ 78,923,387
Computers - Memory Devices - 2.4%
1,103,625 EMC Corp.* ..................................... 84,910,148
108,057 VERITAS Software Corp.* ........................ 12,212,129
97,122,277
Computers - Micro - 2.5%
350,540 Apple Computer, Inc.* .......................... 18,359,532
911,435 Sun Microsystems, Inc.* ........................ 82,883,620
101,243,152
Cosmetics and Toiletries - 0.9%
600,175 Colgate-Palmolive Co. .......................... 35,935,478
Cruise Lines - 0.6%
467,315 Carnival Corp. ................................. 9,112,642
746,830 Royal Caribbean Cruises, Ltd. .................. 13,816,355
22,928,997
See Notes to Schedules of Investments.
2 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
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Data Processing and Management - 0.6%
448,070 Automatic Data Processing, Inc. ................ $ 23,999,749
Distribution and Wholesale - 0.8%
936,835 Costco Wholesale Corp.* ........................ 30,915,555
Diversified Financial Services - 0.2%
189,705 Household International, Inc. .................. 7,884,614
Diversified Operations - 2.8%
2,147,095 General Electric Co. ........................... 113,796,035
E-Commerce - 0.3%
194,165 eBay, Inc.* .................................... 10,545,587
Electronic Components - 0.9%
99,000 Murata Manufacturing Company, Ltd.** ........... 14,241,574
683,000 NEC Corp.** .................................... 21,496,764
35,738,338
Electronic Components - Semiconductors - 3.6%
82,490 Advanced Micro Devices, Inc.* .................. 6,372,353
311,110 Conexant Systems, Inc.* ........................ 15,127,724
53,160 PMC-Sierra, Inc.* .............................. 9,445,868
1,722,210 Texas Instruments, Inc. ........................ 118,294,299
149,240,244
Enterprise Software and Services - 1.5%
724,435 BEA Systems, Inc.* ............................. 35,814,255
250,903 i2 Technologies, Inc.* ......................... 26,160,558
61,974,813
Fiber Optics - 0.7%
61,335 E-Tek Dynamics, Inc.* .......................... 16,180,940
37,860 SDL, Inc.* ..................................... 10,797,199
26,978,139
Finance - Credit Card - 1.9%
1,511,340 American Express Co. ........................... 78,778,598
Finance - Investment Bankers/Brokers - 4.9%
3,329,351 Charles Schwab Corp. ........................... 111,949,427
755,750 Merrill Lynch & Company, Inc. .................. 86,911,250
198,860,677
Identification Systems and Devices - 1.0%
782,667 Symbol Technologies, Inc. ...................... 42,264,018
Instruments - Scientific - 0.9%
1,065,570 Dionex Corp.* .................................. 28,503,998
154,780 PE Corp./PE Biosystems Group ................... 10,196,133
38,700,131
Internet Content - 0.2%
67,900 Softbank Corp.** ............................... 9,241,456
Internet Software - 2.3%
374,015 America Online, Inc.* .......................... 19,729,291
649,030 Exodus Communications, Inc.* ................... 29,895,944
157,620 Inktomi Corp.* ................................. 18,638,565
255,195 TIBCO Software, Inc.* .......................... 27,365,676
95,629,476
Leisure and Recreation Products - 0.6%
2,838,283 EMI Group PLC** ................................ 25,781,260
Life and Health Insurance - 2.3%
606,395 John Hancock Financial Services, Inc.* ......... 14,363,982
3,051,293 Prudential PLC** ............................... 44,715,332
1,042,260 StanCorp Financial Group, Inc. ................. 33,482,603
92,561,917
Medical - Biomedical and Genetic - 0.8%
189,205 Genentech, Inc.* ............................... $ 32,543,260
Medical Instruments - 0.2%
175,190 Medtronic, Inc. ................................ 8,726,652
Money Center Banks - 2.8%
2,286,415 Bank of New York Company, Inc. ................. 106,318,297
219,997 Chase Manhattan Corp. .......................... 10,133,612
116,451,909
Multimedia - 10.2%
3,899,011 Time Warner, Inc. .............................. 296,324,836
1,796,870 Viacom, Inc. - Class B* ........................ 122,524,073
418,848,909
Networking Products - 3.4%
96,915 3Com Corp.* .................................... 5,584,727
2,137,238 Cisco Systems, Inc.* ........................... 135,848,190
141,432,917
Oil Companies - Integrated - 0.1%
99,005 Coastal Corp. .................................. 6,026,929
Optical Supplies - 0.5%
276,445 Allergan, Inc. ................................. 20,595,153
Pipelines - 3.3%
297,555 El Paso Energy Corp. ........................... 15,156,708
1,846,720 Enron Corp. .................................... 119,113,440
134,270,148
Publishing - Newspapers - 0.2%
256,330 New York Times Co. - Class A ................... 10,125,035
Radio - 1.2%
66,850 Hispanic Broadcasting Corp.* ................... 2,214,406
1,270,825 Infinity Broadcasting Corp. - Class A* ......... 46,305,686
48,520,092
Retail - Apparel and Shoe - 0.2%
292,945 Gap, Inc. ...................................... 9,154,531
Retail - Building Products - 0.9%
709,000 Home Depot, Inc. ............................... 35,405,688
Retail - Office Supplies - 0.6%
1,548,905 Staples, Inc.* ................................. 23,814,414
Retail - Restaurants - 2.5%
3,138,125 McDonald's Corp. ............................... 103,361,992
Savings/Loan/Thrifts - 0.3%
496,375 Washington Mutual, Inc. ........................ 14,332,828
Super-Regional Banks - 0.4%
274,150 Northern Trust Corp. ........................... 17,836,884
Telecommunication Equipment - 3.0%
296,197 Nokia Oyj** .................................... 15,176,122
1,941,872 Nokia Oyj (ADR)** .............................. 96,972,233
185,605 Nortel Networks Corp. - New York Shares ........ 12,667,541
124,815,896
Telecommunication Services - 2.7%
1,326,218 Cox Communications, Inc. - Class A* ............ 60,425,808
328,670 Level 3 Communications, Inc.* .................. 28,922,960
372,447 NTL, Inc.* ..................................... 22,300,264
111,649,032
Telephone - Integrated - 2.3%
2,609,617 Telefonica S.A.*,** ............................ 56,284,878
626,020 Telefonos de Mexico S.A. (ADR) ................. 35,761,393
92,046,271
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 3
<PAGE>
Janus|Aspen Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Television - 1.0%
410,385 Univision Communications, Inc. - Class A* ...... $ 42,474,848
Wireless Equipment - 0.4%
81,135 Aether Systems, Inc.* .......................... 16,632,675
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Total Common Stock (cost $2,856,535,693) ..................... 3,674,722,805
--------------------------------------------------------------------------------
Corporate Bonds - 0.7%
Broadcast Services and Programming - 0.1%
$ 1,475,000 AT&T Corp./Liberty Media Group, 4.00%
convertible mortgage backed bonds
due 11/15/29 ................................ 2,124,000
Telecommunication Services - 0.6%
13,707,000 Cox Communications, Inc., 3.00%
convertible subordinated debentures
due 3/14/30 ................................. 14,306,681
14,000,000 NTL, Inc., 5.75%
convertible subordinated notes
due 12/15/09+ ............................... 10,990,000
25,296,681
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Total Corporate Bonds (cost $29,800,906) ..................... 27,420,681
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Preferred Stock - 0.1%
Cellular Telecommunications - 0.1%
Winstar Communications, Inc:
22,140 Series D, convertible, 7.00% ................ 1,245,375
2,005 Series F, convertible, 7.25% ................ 1,969,913
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Total Preferred Stock (cost $3,858,792) ...................... 3,215,288
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Repurchase Agreement - 1.4%
$ 60,000,000 Morgan Stanley Dean Witter & Co., 6.80%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $60,034,000 collateralized
by $68,461,553 in Fannie Mae, 0.65%-
10.25%, 1/1/06-6/1/30; $82,884,520 in
Freddie Mac, 0%-8.40%, 7/15/10-12/1/29;
with respective values of $22,579,571
and $38,643,644 (cost $60,000,000) .......... 60,000,000
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Short-Term Corporate Note - 2.9%
CIT Holdings Group, Inc.
120,000,000 6.84%, 7/3/00
(amortized cost $119,954,400) ............... 119,954,400
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U.S. Government Agencies - 6.0%
Federal Home Loan Bank System:
50,000,000 5.78%, 7/19/00 .............................. 49,855,500
50,000,000 5.84%, 8/2/00 ............................... 49,740,444
50,000,000 6.36%, 8/18/00 .............................. 49,576,000
50,000,000 5.86%, 8/31/00 .............................. 49,465,500
50,000,000 6.41%, 9/11/00 .............................. 49,370,500
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Total U.S. Government Agencies (cost $248,034,472) ........... 248,007,944
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Total Investments (total cost $3,318,184,263) - 100.7% ....... 4,133,321,118
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Liabilities, net of Cash, Receivables and Other Assets - (0.7%) (30,400,824)
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Net Assets - 100% ............................................ $4,102,920,294
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SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
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Canada 0.3% $ 12,667,541
Finland 2.7% 112,148,355
Japan 1.9% 77,639,821
Mexico 0.9% 35,761,393
Spain 1.4% 56,284,878
United Kingdom 2.1% 87,565,408
United States++ 90.7% 3,751,253,722
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Total 100.0% $ 4,133,321,118
++ Includes Short-Term Securities (80.4% excluding Short-Term Securities)
FORWARD CURRENCY CONTRACTS, OPEN AT JUNE 30, 2000
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
--------------------------------------------------------------------------------
British Pound 9/8/00 8,900,000 $ 13,520,880 $ 185,743
British Pound 1/26/01 7,100,000 10,818,980 47,570
Euro 1/26/01 40,000,000 38,644,000 103,800
Japanese Yen 9/1/00 200,000,000 1,909,840 (20,925)
Japanese Yen 9/8/00 3,520,000,000 33,654,871 383,030
Japanese Yen 9/14/00 2,890,000,000 27,660,823 (198,009)
Japanese Yen 10/5/00 450,000,000 4,323,398 46,297
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Total $ 130,532,792 $ 547,506
See Notes to Schedules of Investments.
4 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Aggressive Growth Portfolio
[PHOTO]
Jim Goff
portfolio manager
For the six months ended June 30, 2000, Janus Aspen Aggressive Growth Portfolio
returned 1.57% for its Institutional Shares, 1.27% for its Retirement Shares and
1.79% for its Service Shares, underperforming the 9.06% gain posted by our
benchmark, the S&P MidCap 400 Index.(1)
During the early months of 2000, investors continued to reward a select core of
fast-growing companies in some of the market's most dynamic segments. By April,
however, the tide had turned. Intense volatility reared its ugly head as markets
grappled with an uncertain interest rate environment and profit-taking in
several high-profile areas, most notably technology and telecommunications. The
irony of it all is that we experienced an exceptional earnings season. Still,
many of our stocks dropped dramatically, albeit indiscriminately. Although a
number of them deserved better, we were not alone. In fact, from the March high
to the May low, the technology-focused Nasdaq Composite Index corrected by some
38%.
Even so, my confidence remains intact. Now that the six short-term interest
rates hikes initiated by the Federal Reserve have begun to produce signs of a
slowing economy, it's possible that the tightening cycle may be nearing its
completion. This would be a positive development for the high-growth companies
we favor as interest rates are important to valuing future cash flows.
That said, we approached this challenging period as we always do, focusing on
individual companies capable of performing well regardless of the market's
overall tone. One example was optical-equipment manufacturer SDL, our largest
position. Demand for the company's more than 200 products has been so strong
that first-quarter 2000 earnings outpaced comparable 1999 earnings by 175%,
easily surpassing analyst estimates. Powerful industry growth and market share
gains should continue to fuel impressive growth for some time to come.
In the services arena, payroll-processing and tax-preparation company Paychex
continued to execute on its business model, which focuses on serving small
businesses. Consistency is a hallmark of this company, with annual revenue and
earnings growth over the past 10 years of 20% and 31%, respectively. Paychex's
client list currently numbers more than 300,000 nationwide, and its move into
new services, such as 401(k) plan management and benefits administration, should
position the company for continued success.
Biotech is another area that performed nicely, having bounced back from the
mid-period sell-off. Our holdings in Sepracor, a biotech company that develops
improved versions of widely prescribed drugs, advanced following the successful
completion of Phase II trials for (S)-oxybutynin, a treatment for urge urinary
incontinence. This condition represents a large and growing market that has
traditionally been underserved by the pharmaceutical industry but represents a
compelling opportunity for Sepracor.
As you might expect, a period as volatile as this is bound to produce some
disappointments. Radio station operator AMFM slipped on concerns that the Fed's
efforts to cool the economy would result in reduced advertising expenditures.
Furthermore, questions surrounding the sustainability of recent increases in
dot-com ad spending pressured the entire media industry, impacting AMFM.
Nonetheless, we have maintained our position given the company's 48% rise in
first-quarter earnings, as well as its market power and diverse group of premier
assets. Cellular service providers VoiceStream and Western Wireless also fell
victim to the tech sell-off, despite both companies reporting outstanding growth
during the period. With worldwide cellular penetration rates growing by more
than 50% in 1999 and further increases expected as wireless data gains momentum,
we are undeterred by this near-term setback.
The key to surviving through and prospering beyond sharp market declines is to
own the tennis balls and avoid the eggs. Ultimately, investors should be
attracted to companies with rapid earnings growth and superior profitability
regardless of the labels assigned to them by the investment community and the
popular media. Therefore, we remain steadfast in our strategy of investing
across the entire market, emphasizing those companies capable of providing
20%-plus earnings growth over a three- to five-year period. And no matter which
direction the market turns in the short term, we will continue to meet face to
face with the people running our companies, always leveraging the firsthand
information that allows us to invest with confidence.
As always, thank you for your investment and confidence in Janus Aggressive
Growth Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Equities 96.2% 97.8%
Foreign 3.1% 3.9%
Top 10 Equities 37.8% 31.9%
Number of Stocks 67 70
Cash & Cash Equivalents 3.8% 2.2%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 5
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 75.12%
5 Year 34.93%
From Inception 31.85%
--------------------------------------------------------------------------------
S&P MidCap 400 Index
1 Year 17.07%
5 Year 21.20%
From Inception Date of Institutional Shares 16.65%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 74.18%
5 Year 34.12%
From Portfolio Inception 30.98%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 74.10%
5 Year 34.61%
From Portfolio Inception 31.50%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
Shares.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
(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 waived a portion of the Portfolio's expenses
during certain periods. Without such waiver, the Portfolio's total returns
for each class would have been lower. Past performance does not guarantee
future results.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 96.2%
Advertising Sales - 1.2%
1,445,640 Lamar Advertising Co.* ......................... $ 62,614,283
Advertising Services - 1.9%
1,330,165 TMP Worldwide, Inc.* ........................... 98,182,804
Applications Software - 0%
68,400 TenFold Corp.* ................................. 1,124,325
Cellular Telecommunications - 7.9%
3,685,055 Crown Castle International Corp.* .............. 134,504,508
90,415 Millicom International Cellular S.A.* .......... 3,164,525
863,065 Powertel, Inc.* ................................ 61,223,673
870,105 VoiceStream Wireless Corp.* .................... 101,190,492
1,858,890 Western Wireless Corp. - Class A* .............. 101,309,505
401,392,703
Circuit Boards - 0.4%
1,169,200 Viasystems Group, Inc.* ........................ 18,926,425
Circuits - 2.5%
1,749,265 Vitesse Semiconductor Corp.* ................... 128,680,307
Commercial Services - 5.0%
5,994,190 Paychex, Inc. .................................. 251,755,980
Computer Data Security - 4.5%
1,285,418 VeriSign, Inc.* ................................ 226,876,277
Computers - Integrated Systems - 1.7%
462,855 Brocade Communications Systems, Inc.* .......... 84,926,660
Computers - Memory Devices - 0.1%
77,335 StorageNetworks, Inc.* ......................... $ 6,979,484
Drug Delivery Systems - 1.4%
1,128,555 Andrx Corp.* ................................... 72,139,352
E-Commerce - 2.6%
974,560 eBay, Inc.* .................................... 52,930,790
2,113,960 Priceline.com, Inc.* ........................... 80,297,449
133,228,239
Electronic Components - Semiconductors - 6.7%
842,725 Applied Micro Circuits Corp.* .................. 83,219,094
271,605 Cree, Inc.* .................................... 36,259,267
1,070,490 Intersil Holding Corp.* ........................ 57,873,366
691,915 TriQuint Semiconductor, Inc.* .................. 66,207,616
1,156,930 Xilinx, Inc.* .................................. 95,519,033
339,078,376
Fiber Optics - 10.5%
5,504,385 Metromedia Fiber Network, Inc. - Class A* ...... 218,455,280
711,510 MRV Communications, Inc.* ...................... 47,849,048
902,175 SDL, Inc.* ..................................... 257,289,033
67,075 Sycamore Networks, Inc.* ....................... 7,403,403
530,996,764
Finance - Investment Bankers/Brokers - 0.1%
367,550 E*TRADE Group, Inc.* ........................... 6,064,575
Internet Content - 1.0%
1,269,740 DoubleClick, Inc.* ............................. 48,408,837
See Notes to Schedules of Investments.
6 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Aggressive Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Internet Software - 9.9%
3,836,250 Exodus Communications, Inc.* ................... $ 176,707,266
1,109,835 Inktomi Corp.* ................................. 131,237,989
1,017,475 Liberate Technologies, Inc.* ................... 29,824,736
1,114,585 Portal Software, Inc.* ......................... 71,194,117
3,740,260 PSINet, Inc.* .................................. 93,974,032
502,938,140
Medical - Biomedical and Genetic - 5.3%
539,620 CuraGen Corp.* ................................. 20,539,286
547,535 Human Genome Sciences, Inc.* ................... 73,027,481
204,140 Incyte Genomics, Inc.*,ss.,+ ................... 15,729,146
552,785 Maxygen, Inc.* ................................. 31,379,186
1,165,705 Millennium Pharmaceuticals, Inc.* .............. 130,413,247
271,088,346
Medical - Drugs - 5.6%
1,504,687 King Pharmaceuticals, Inc.* .................... 66,018,142
931,260 MedImmune, Inc.* ............................... 68,913,240
1,241,320 Sepracor, Inc.* ................................ 149,734,225
284,665,607
Medical Products - 0.8%
326,165 MiniMed, Inc.* ................................. 38,487,470
Music/Clubs - 1.0%
1,104,647 SFX Entertainment, Inc.* ....................... 50,054,317
Oil - Field Services - 0.8%
178,590 Hanover Compressor Co.* ........................ 6,786,420
896,250 Hanover Compressor Co.*,ss.,+ .................. 31,435,073
38,221,493
Radio - 8.0%
3,548,685 AMFM, Inc.* .................................... 244,859,265
713,035 Citadel Communications Corp.* .................. 24,911,660
1,177,995 Cox Radio, Inc. - Class A* ..................... 32,983,860
798,685 Entercom Communications Corp.* ................. 38,935,894
1,781,690 Hispanic Broadcasting Corp.* ................... 59,018,481
130,865 Radio One, Inc. - Class A* ..................... 3,868,697
158,730 Radio One, Inc. - Class D* ..................... 3,501,981
408,079,838
Real Estate Investment Trusts - 0.6%
594,495 Pinnacle Holdings, Inc.* ....................... 32,102,730
Resorts and Theme Parks - 1.0%
2,186,075 Premier Parks, Inc.* ........................... 49,733,206
Schools - 1.3%
2,441,271 Apollo Group, Inc. - Class A* .................. 68,355,588
Telecommunication Services - 6.7%
2,218,415 AT&T Canada, Inc.* ............................. 73,623,648
1,518,370 Clearnet Communications, Inc. - Class A* ....... 42,158,492
502,930 Level 3 Communications, Inc.* .................. 44,257,840
6,040,230 McLeodUSA, Inc. - Class A* ..................... 124,957,258
1,051,322 Microcell Telecommunications, Inc.* ............ 37,979,007
529,355 Net2Phone, Inc.* ............................... 18,891,357
341,867,602
Telephone - Integrated - 0.8%
1,033,290 NEXTLINK Communications, Inc. - Class A* ....... 39,200,439
Television - 0.6%
313,783 Univision Communications, Inc. - Class A* ...... 32,476,540
Therapeutics - 3.5%
862,890 Abgenix, Inc.* ................................. 103,425,456
888,565 Medarex, Inc.* ................................. 75,083,742
178,509,198
Wireless Equipment - 2.8%
2,588,865 American Tower Corp.* .......................... $ 107,923,310
407,185 RF Micro Devices, Inc.* ........................ 35,679,586
143,602,896
--------------------------------------------------------------------------------
Total Common Stock (cost $3,671,834,259) ..................... 4,890,758,801
--------------------------------------------------------------------------------
Repurchase Agreement - 1.9%
$ 95,100,000 Morgan Stanley Dean Witter & Co., 6.75%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $95,153,494 collateralized
by $108,511,562 in Fannie Mae, 0.65%-
10.25%, 1/1/06-6/1/30; $131,371,965
in Freddie Mac, 0%-8.40%, 7/15/10-
12/1/29; with respective values of
$35,788,620 and $61,250,175
(cost $95,100,000) .......................... 95,100,000
--------------------------------------------------------------------------------
U.S. Government Agencies - 1.4%
Federal Home Loan Bank System:
20,000,000 5.94%, 7/21/00 .............................. 19,934,000
50,000,000 6.36%, 8/18/00 .............................. 49,576,000
--------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $69,510,000) .. 69,510,000
--------------------------------------------------------------------------------
Total Investments (total cost $3,836,444,259) - 99.5% ........ 5,055,368,801
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liablilities - 0.5% 26,785,273
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 5,082,154,074
--------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Canada 3.0% $ 153,761,147
Luxembourg 0.1% 3,164,525
United States++ 96.9% 4,898,443,129
--------------------------------------------------------------------------------
Total 100.0% $ 5,055,368,801
++ Includes Short-Term Securities (93.6% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 7
<PAGE>
Janus|Aspen Capital Appreciation Portfolio
[PHOTO]
Scott Schoelzel
portfolio manager
For the six-month period ended June 30, 2000, Janus Aspen Series Capital
Appreciation Portfolio lost (4.00%) for its Institutional Shares, (4.17%) for
its Retirement Shares and (4.08%) for its Service Shares compared to a (0.44%)
decline for the S&P 500 Index.(1) The Portfolio's intraperiod volatility,
particularly in March and April, was extreme, to say the least. I know the
volatility can be unnerving, and I appreciate your continued confidence and
support.
The past six months can be segmented into two distinct periods. The first three
months were quite bullish. The markets raced ahead after the transition into the
year 2000 went much smoother than many pundits had predicted, as some of the
early promise of the Internet continued to resonate throughout the world.
Meanwhile, despite the economy's high rate of growth, inflation remained in
check as productivity gains more than offset any pressures on wages and basic
commodities. Nevertheless, the Federal Reserve turned stingy, and rates firmed.
The next three months couldn't have presented a more stark contrast. Over time,
we began to see some seedlings of inflation in the form of higher employment
costs and some upward movement in basic commodity prices as the pace of economic
growth quickened around the world. All of this contributed to what I (and
others) refer to as "the end of the beginning." By this I mean that the
long-term prospects for the profound influence some of the new technologies and
sciences will have on the way we work, learn and live remain as vibrant as ever.
However, the valuations of this first wave of companies are being reexamined as
a confluence of factors comes into focus. Higher interest rates, increased
competition, and too much capital chasing too few original ideas have led to a
precipitous drop in stock prices. This will continue until investors find some
equilibrium that reflects the changing macro environment, witness the maturation
of the first phase of the development of the so-called "new economy," and
realize the tremendous promise that lies ahead for the true, long-term winners.
My best guess is that the markets will remain negatively biased until the latter
part of this year, and I would encourage you to proceed with more caution as we
navigate "the end of the beginning."
Turning to the Portfolio, many of the same stocks that led our performance
higher throughout 1999 remain top holdings. Nokia, Cisco Systems, EMC, General
Electric and Time Warner all continue to dominate their respective industries,
and while their valuations may be stretched by historical standards, I expect
that with time and patience these companies will grow into their valuations just
as they have in the past. Most important, we continue to monitor the fundamental
progress made by each of our holdings. It is this progress that determines when
it's time to make a change in the Portfolio.
This year, most of the setbacks we've experienced have been a by-product of
letting the Portfolio get a little out of "balance" with regard to the types of
opportunities we invested in. I have always espoused a balanced approach to
managing the Portfolio, and while a large portion of assets are, and will
continue to be, dedicated to technology, science and related areas of the
economy, I have also invested heavily in financial services, retailers and the
occasional special situation. In retrospect, I may have skewed the Portfolio a
little more toward emerging growth opportunities during the period. While we
still own meaningful positions in General Electric, Citigroup, and Home Depot, I
sold or reduced positions in some of the Portfolio's long-time stalwarts such as
Comcast, Wal-Mart and Costco in order to build starter positions in some more
aggressive holdings. These include 3Com, eBay and Yahoo! While the financial
impact of any one of these decisions has not materially hurt our performance,
the resultant skew has made the Portfolio a little more volatile, for now.
Finally, I know the past few months have been a little rough but it's a
necessary part of the investment process. There is an old saying in poker that I
think is appropriate "In order to run good, you've gotta run bad." I am anxious
to see the next hand!
Thank you for your continued confidence and support.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Equities 63.5% 79.1%
Foreign 8.6% 7.4%
Europe 4.5% 4.8%
Top 10 Equities 30.4% 44.3%
Number of Stocks 33 29
Cash & Cash Equivalents 36.5% 20.9%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
8 Janus Aspen Series / June 30, 2000
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/97)
1 Year 27.56%
From Inception 44.55%
--------------------------------------------------------------------------------
S&P 500 Index
1 Year 7.24%
From Portfolio Inception 22.46%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 27.00%
From Inception 43.88%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 25.74%
From Portfolio Inception 43.90%
--------------------------------------------------------------------------------
Returns shown for Service Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Service Shares.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
(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 waived a portion of the Portfolio's expenses during certain
periods. 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 (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 63.5%
Cellular Telecommunications - 4.7%
575,210 Sprint Corp./PCS Group* ........................ $ 34,224,995
303,400 Vodafone AirTouch PLC (ADR) .................... 12,572,138
617,582 Winstar Communications, Inc.* .................. 20,920,590
67,717,723
Communications Software - 1.4%
437,950 Research in Motion, Ltd.* ...................... 19,817,238
Computer Data Security - 2.5%
205,150 VeriSign, Inc.* ................................ 36,208,975
Computers - Memory Devices - 2.5%
473,180 EMC Corp.* ..................................... 36,405,286
Computers - Micro - 2.5%
698,400 Apple Computer, Inc.* .......................... 36,578,700
Diversified Financial Services - 4.5%
496,805 Citigroup, Inc. ................................ 29,932,501
420,065 Morgan Stanley Dean Witter and Co. ............. 34,970,411
64,902,912
Diversified Operations - 1.8%
500,955 General Electric Co. ........................... 26,550,615
E-Commerce - 0.9%
231,050 eBay, Inc.* .................................... 12,548,903
Electronic Components - 0.8%
175,610 Flextronics International, Ltd.* ............... 12,062,212
Electronic Components - Semiconductors - 2.5%
532,990 Texas Instruments, Inc. ........................ 36,609,751
Fiber Optics - 1.1%
397,610 Metromedia Fiber Network, Inc. - Class A* ...... $ 15,780,147
Finance - Investment Bankers/Brokers - 4.9%
611,955 Merrill Lynch & Company, Inc. .................. 70,374,825
Internet Content - 2.1%
306,665 DoubleClick, Inc.* ............................. 11,691,603
151,360 Yahoo!, Inc.* .................................. 18,749,720
30,441,323
Internet Software - 5.0%
667,480 America Online, Inc.* .......................... 35,209,570
278,535 Inktomi Corp.* ................................. 32,936,764
59,095 Phone.com, Inc.* ............................... 3,848,562
71,994,896
Medical - Drugs - 3.7%
464,770 MedImmune, Inc.* ............................... 34,392,980
393,260 Pfizer, Inc. ................................... 18,876,480
53,269,460
Multimedia - 2.4%
463,865 Time Warner, Inc. .............................. 35,253,740
Networking Products - 4.2%
245,050 3Com Corp.* .................................... 14,121,006
729,908 Cisco Systems, Inc.* ........................... 46,394,777
60,515,783
Optical Supplies - 1.5%
292,055 Allergan, Inc. ................................. 21,758,098
Retail - Building Products - 1.2%
354,450 Home Depot, Inc. ............................... 17,700,347
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 9
<PAGE>
Janus|Aspen Capital Appreciation Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Satellite Telecommunications - 5.9%
933,310 EchoStar Communications Corp.* ................. $ 30,901,311
627,970 General Motors Corp. - Class H* ................ 55,104,368
86,005,679
Telecommunication Equipment - 3.6%
1,042,540 Nokia Oyj (ADR) ................................ 52,061,841
Telecommunication Services - 1.2%
201,270 Level 3 Communications, Inc.* .................. 17,711,760
Telephone - Integrated - 2.6%
238,420 NEXTLINK Communications, Inc. - Class A* ....... 9,045,059
492,630 Telefonos de Mexico S.A. (ADR) ................. 28,141,489
37,186,548
--------------------------------------------------------------------------------
Total Common Stock (cost $788,946,362) ....................... 919,456,762
--------------------------------------------------------------------------------
Repurchase Agreement - 13.7%
$198,600,000 Morgan Stanley Dean Witter & Co., 6.80%
dated 6/30/00, maturing 7/3/00, to
be repurchased at $198,712,540
collateralized by $226,607,742 in
Fannie Mae, 0.65%-10.25%, 1/1/06-
6/1/30; $274,347,762 in Freddie Mac,
0%-8.40%, 7/15/10-12/1/29; with
respective values of $74,738,380 and
$127,910,460 (cost $198,600,000) ............ 198,600,000
--------------------------------------------------------------------------------
Short-Term Corporate Note - 4.7%
68,400,000 UBS Financial Corp.
7.10%, 7/5/00 (cost $68,346,040) ............ 68,346,040
--------------------------------------------------------------------------------
U.S. Government Agencies - 17.8%
Fannie Mae:
60,000,000 5.98%, 7/21/00 .............................. 59,802,000
50,000,000 6.38%, 8/21/00 .............................. 49,545,958
Federal Home Loan Bank System:
50,000,000 5.84%, 7/31/00 .............................. 49,755,833
50,000,000 5.94%, 9/8/00 ............................... 49,381,194
50,000,000 6.49%, 9/14/00 .............................. 49,327,222
--------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $257,912,083) ........... 257,812,207
--------------------------------------------------------------------------------
Total Investments (total cost $1,313,804,485) - 99.7% ........ 1,444,215,009
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.3% 3,652,883
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 1,447,867,892
--------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Canada 1.4% $ 19,817,238
Finland 3.6% 52,061,841
Mexico 1.9% 28,141,489
Singapore 0.8% 12,062,212
United Kingdom 0.9% 12,572,138
United States++ 91.4% 1,319,560,091
--------------------------------------------------------------------------------
Total 100.0% $ 1,444,215,009
++ Includes Short-Term Securities (55.0% excluding Short-Term Securities)
See Notes to Schedules of Investments.
10 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Balanced Portfolio
[PHOTO]
Karen Reidy
portfolio manager
For the six months ended June 30, 2000, Janus Aspen Balanced Portfolio returned
0.71% for its Institutional Shares, 0.50% for its Retirement Shares and 1.75%
for its Service Shares. This compares with the S&P 500 Index, which declined
(0.44%), and the Lehman Brothers Government/ Corporate Bond Index, which rose
3.99%.(1)
Having assumed the reins of Janus Aspen Balanced Portfolio on January 1, 2000, I
wanted to take a few moments to discuss my investment strategy. First and
foremost, my approach is totally grounded in Janus' bottom-up,
research-intensive discipline, meaning I focus on individual companies and
issuers, rather than broader trends in the economy or the markets. On the equity
side, I look for businesses with a history of predictable earnings, rising
returns on invested capital and declining capital intensity. With regard to
fixed-income, I tend to avoid interest rate bets by investing in medium duration
bonds. Not unlike my equity approach, I favor issuers whose earnings growth,
free cash flow and decreasing debt ratio suggest that they can outperform market
expectations.
Given the extreme volatility that rocked the financial markets during the second
quarter, we faced numerous challenges. As is often the case, higher interest
rates and fears of further rate hikes contributed to the uncertainty. This, in
turn, prompted a sell-off in many stocks, particularly within the technology
sector. Bond markets also came under pressure, as investors flocked to long-term
Treasuries following the launch of the Treasury Department's buyback plan.
Because spreads or differences in yields between Treasuries and corporate bonds
widened, corporates suffered as a result.
Although these events affected the performance of the Portfolio, they were
beyond our control. However, where we hope to consistently add value is by
staying focused on the fundamentals - namely uncovering companies whose
outstanding management teams are committed to growing their top lines and
improving returns on capital. To that end, we took steps to raise our cash
position throughout the period in anticipation of compelling opportunities in
both the equity and fixed-income markets.
In light of the atypical environment for bonds, we restructured the fixed-income
side of the Portfolio to reflect a more even mix of Treasuries and corporate
debt. While we missed out on the Treasury rally earlier in the year, we recently
increased our exposure to the Treasury market on the belief that the buyback
program will move through the maturity spectrum. In addition, we've taken on a
number of short-term investment-grade issues, which offer attractive yields and
present little in the way of interest-rate or credit risk.
Moving to the equity portion of the Portfolio, we used the sell-off in
technology stocks to increase our holdings in Texas Instruments and EMC Corp,
two top performers. Texas Instruments continued to gain share in the analog
semiconductor market, while solidifying its position as the leading maker of
digital signal processors, or DSPs. These chips, which power wireless phones,
will also play a key role in personal wireless Internet devices currently in
development. EMC, the preeminent producer of memory storage and retrieval
systems for large mainframe computers, recently introduced a host of new
middle-market products that support network-attached storage. By enabling
servers to have their own, rather than a shared, storage unit, users benefit
from quicker and more efficient data access.
As for disappointments, Wal-Mart, the nation's largest retailer, fell on
weakness in retail stocks following reports of a slowdown in consumer spending.
Wal-Mart's lofty valuation put it at a higher risk than other retailers,
although its fundamentals, across the board, are far superior. The successful
rollout of its Supercenter stores, which offer both groceries and general
merchandise, continues to fuel impressive sales growth. That said, we saw the
drop as a buying opportunity and added to our position. Cable operator Comcast
also slipped as investors questioned the cash flow dynamics from the
introduction of new value-added services. While we trimmed the position
slightly, we believe the downturn is temporary.
Looking ahead, we expect market volatility to persist as long as the economy
shows few signs of slowing. Of course, under these circumstances many investors
are inclined to stay close to their computer screens, monitoring daily price
fluctuations. We, on the other hand, believe this is the perfect time to get out
there and beat the bushes - visiting our companies, attending trade shows and
talking to customers - to bolster our confidence in our holdings and reaffirm
our reasons for investing.
As always, thank you for your investment in Janus Aspen Balanced Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Equities 40.2% 37.9%
Top 10 Equities/Preferred 15.5% 21.7%
Number of Stocks 63 48
Fixed-Income Securities 81 84
U.S. Treasury Notes 16.0% 13.1%
Investment-Grade
Corporate Bonds 20.1% 21.8%
High-Yield Corporate Bonds 7.9% 11.6%
Preferred Stock 4.7% 10.6%
Cash & Cash Equivalents 11.1% 5.0%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 11
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 13.92%
5 Year 22.09%
From Inception 19.11%
--------------------------------------------------------------------------------
Lehman Brothers Govt./Corp. Bond Index
1 Year 4.32%
5 Year 6.10%
From Inception Date of Institutional Shares 4.99%
--------------------------------------------------------------------------------
S&P 500 Index
1 Year 7.24%
5 Year 23.80%
From Inception Date of Institutional Shares 20.85%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 13.34%
5 Year 21.38%
From Portfolio Inception 18.35%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 13.92%
5 Year 22.09%
From Portfolio Inception 19.11%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
Shares.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
(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 waived a portion of the Portfolio's expenses
for certain periods. Without such waiver, the Portfolio's total returns for
each class would have been lower. Past performance does not guarantee
future results.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 40.2%
Agricultural Biotechnology - 1.0%
606,640 Pharmacia Corp. ................................ $ 31,355,705
Brewery - 0.5%
200,745 Anheuser-Busch Companies, Inc. ................. 14,993,142
Broadcast Services and Programming - 1.3%
1,662,880 AT&T Corp./Liberty Media Group - Class A* ...... 40,324,840
Cable Television - 1.2%
948,155 Comcast Corp. - Special Class A* ............... 38,400,277
Cellular Telecommunications - 1.0%
486,530 Sprint Corp./PCS Group* ........................ 28,948,535
111,125 Vodafone AirTouch PLC (ADR)** .................. 4,604,742
33,553,277
Chemicals - Diversified - 1.1%
178,480 E.I. du Pont de Nemours and Co. ................ 7,808,500
1,738,215 Lyondell Chemical Co. .......................... 29,115,101
36,923,601
Chemicals - Specialty - 0.2%
125,885 Praxair, Inc. .................................. 4,712,820
Circuits - 1.2%
316,560 Linear Technology Corp. ........................ 20,240,055
274,700 Maxim Integrated Products, Inc.* ............... 18,662,431
38,902,486
Commercial Services - 0.5%
394,673 Paychex, Inc. .................................. 16,576,266
Computer Data Security - 1.0%
180,934 VeriSign, Inc.* ................................ $ 31,934,851
Computer Software - 0.2%
354,840 Cadence Design Systems, Inc.* .................. 7,229,865
Computers - Memory Devices - 3.2%
1,153,780 EMC Corp.* ..................................... 88,768,949
130,050 VERITAS Software Corp.* ........................ 14,697,682
103,466,631
Computers - Micro - 0.8%
292,710 Sun Microsystems, Inc.* ........................ 26,618,316
Data Processing and Management - 1.0%
597,490 Automatic Data Processing, Inc. ................ 32,003,058
Diversified Financial Services - 1.3%
645,895 Associates First Capital Corp. - Class A ....... 14,411,532
443,225 Citigroup, Inc. ................................ 26,704,306
41,115,838
Diversified Operations - 3.0%
1,816,065 General Electric Co. ........................... 96,251,445
Electric - Integrated - 0.5%
192,501 Time Warner, Inc. .............................. 14,630,076
Electric Products - 1.3%
108,030 Samsung Electronics** .......................... 35,752,009
52,110 Samsung Electronics (GDR)**,+ .................. 4,713,350
40,465,359
See Notes to Schedules of Investments.
12 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Balanced Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Electronic Components - Semiconductors - 1.8%
329,030 Advanced Micro Devices, Inc.* .................. $ 25,417,567
496,960 Texas Instruments, Inc. ........................ 34,134,940
59,552,507
Enterprise Software and Services - 0.7%
280,015 Oracle Corp.* .................................. 23,538,761
Fiber Optics - 0.5%
64,380 Corning, Inc. .................................. 17,374,552
Finance - Credit Card - 1.0%
612,915 American Express Co. ........................... 31,948,194
Finance - Investment Bankers/Brokers - 0.9%
826,402 Charles Schwab Corp. ........................... 27,787,767
Identification Systems and Devices - 0.9%
528,612 Symbol Technologies, Inc. ...................... 28,545,048
Internet Content - 0%
13,965 DoubleClick, Inc.* ............................. 532,416
Internet Software - 0.5%
291,965 America Online, Inc.* .......................... 15,401,154
Life and Health Insurance - 0.5%
$ 1,100,733 Prudential PLC** ............................... 16,130,749
Medical - Biomedical and Genetic - 0.7%
124,005 Genentech, Inc.* ............................... 21,328,860
Medical - Drugs - 1.0%
322,702 King Pharmaceuticals, Inc.* .................... 14,158,550
364,855 Pfizer, Inc. ................................... 17,513,040
31,671,590
Money Center Banks - 0.4%
288,505 Bank of New York Company, Inc. ................. 13,415,483
Motorcycle and Motor Scooter Manufacturing - 0.2%
167,665 Harley-Davidson, Inc. .......................... 6,455,103
Multi-Line Insurance - 0.3%
77,470 American International Group, Inc. ............. 9,102,725
Multimedia - 1.3%
623,055 Viacom, Inc. - Class B* ........................ 42,484,563
Networking Products - 1.0%
500,902 Cisco Systems, Inc.* ........................... 31,838,583
Pipelines - 0.5%
251,255 Enron Corp. .................................... 16,205,947
Radio - 1.3%
482,960 Hispanic Broadcasting Corp.* ................... 15,998,050
683,195 Infinity Broadcasting Corp. - Class A* ......... 24,893,918
40,891,968
Retail - Apparel and Shoe - 0.2%
242,630 Gap, Inc. ...................................... 7,582,188
Retail - Building Products - 0.5%
317,286 Home Depot, Inc. ............................... 15,844,470
Retail - Discount - 1.3%
720,035 Wal-Mart Stores, Inc. .......................... 41,492,017
Telecommunication Equipment - 2.2%
249,605 Nokia Oyj ...................................... 12,788,907
947,392 Nokia Oyj (ADR) ................................ 47,310,388
592,905 Telefonaktiebolaget L.M. Ericsson A.B. (ADR) ... 11,858,100
71,957,395
Telecommunication Services - 0.5%
145,375 Cox Communications, Inc. - Class A* ............ $ 6,623,648
514,350 McLeodUSA, Inc. - Class A* ..................... 10,640,616
17,264,264
Telephone - Integrated - 1.0%
1,566,319 Telefonica S.A.* ............................... 33,782,764
Television - 0.7%
231,873 Univision Communications, Inc. - Class A* ...... 23,998,856
--------------------------------------------------------------------------------
Total Common Stock (cost $1,010,453,112) ..................... 1,295,585,777
--------------------------------------------------------------------------------
Corporate Bonds - 27.1%
Beverages - Non-Alcoholic - 0.6%
Coca-Cola Enterprises, Inc.:
$ 2,550,000 6.625%, notes, due 8/1/04 ................... 2,495,812
17,000,000 7.125%, notes, due 9/30/09 .................. 16,405,000
18,900,812
Brewery - 0.6%
Anheuser-Busch Companies, Inc.:
2,500,000 6.90%, notes, due 10/1/02 ................... 2,481,250
5,100,000 5.65%, notes, due 9/15/08 ................... 4,551,750
14,100,000 5.75%, notes, due 4/1/10 .................... 12,425,625
19,458,625
Broadcast Services and Programming - 1.3%
26,300,000 AT&T Corp./Liberty Media Group, 7.875%
notes, due 7/15/09 .......................... 25,313,750
12,933,000 Clear Channel Communications, Inc., 2.625%
convertible senior notes, due 4/1/03 ........ 16,667,404
41,981,154
Cable Television - 1.4%
7,055,000 Adelphia Communications Corp., 10.50%
senior notes, due 7/15/04 ................... 7,055,000
CSC Holdings, Inc.:
5,700,000 8.125%, senior notes, due 7/15/09 ........... 5,550,375
8,000,000 8.125%, debentures, due 8/15/09 ............. 7,780,000
6,000,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 ..... 6,060,000
11,205,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 ................... 10,938,881
2,500,000 Lenfest Communications, Inc., 7.625%
senior notes, due 2/15/08 ................... 2,437,500
6,608,000 Telewest Communications PLC, 9.875%
senior notes, due 2/1/10**,+ ................ 6,145,440
45,967,196
Cellular Telecommunications - 2.6%
Nextel Communications, Inc.:
10,100,000 4.75%, convertible senior notes
due 7/1/07 .................................. 26,638,750
33,380,000 9.375%, senior notes, due 11/15/09 .......... 31,877,900
24,000,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09 .................. 24,840,000
83,356,650
Chemicals - Diversified - 1.8%
E.I. du Pont de Nemours and Co.:
500,000 6.50%, notes, due 9/1/02 .................... 495,625
30,300,000 6.75%, notes, due 10/15/04 .................. 29,921,250
11,450,000 6.875%, notes, due 10/15/09 ................. 11,135,125
15,601,000 Lyondell Chemical Co., 9.625%
secured notes, due 5/1/07 ................... 15,366,985
56,918,985
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 13
<PAGE>
Janus|Aspen Balanced Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Computers - Micro - 0.8%
Sun Microsystems, Inc.:
$ 5,500,000 7.00%, senior notes, due 8/15/02 ............ $ 5,472,500
21,050,000 7.65%, senior notes, due 8/15/09 ............ 21,050,000
26,522,500
Diversified Financial Services - 4.3%
2,000,000 Associates Corp. N.A., 6.75%
senior notes, due 7/15/01 ................... 1,990,000
General Electric Capital Corp.:
37,450,000 7.00%, notes, due 3/1/02 .................... 37,356,375
27,550,000 7.00%, notes, due 2/3/03 .................... 27,446,687
15,750,000 7.25%, notes, due 5/3/04 .................... 15,769,687
17,750,000 7.25%, notes, due 2/1/05 .................... 17,772,187
15,450,000 7.375%, notes, due 1/19/10 .................. 15,565,875
14,900,000 IBM Credit Corp., 7.00%
notes, due 1/28/02 .......................... 14,844,125
7,750,000 Morgan Stanley Dean Witter & Co., 7.75%
notes, due 6/15/05 .......................... 7,788,750
138,533,686
Diversified Manufacturing Operations - 0.1%
4,750,000 Tyco International Group S.A., 6.875%
notes, due 9/5/02+ .......................... 4,702,500
Enterprise Software and Services - 0.5%
5,869,000 BEA Systems, Inc., 4.00%
convertible subordinated notes
due 12/15/06+ ............................... 9,118,959
4,471,000 i2 Technologies, Inc., 5.25%
convertible subordinated notes
due 12/15/06+ ............................... 6,823,864
15,942,823
Fiber Optics - 0.2%
6,000,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 12/15/09 .................. 5,910,000
Finance - Auto Loans - 1.7%
Ford Motor Credit Co.:
32,550,000 7.25%, notes, due 1/15/03 ................... 32,265,187
19,325,000 7.75%, notes, due 2/15/07 ................... 19,300,844
1,650,000 5.80%, senior notes, due 1/12/09 ............ 1,435,500
3,327,000 General Motors Acceptance Corp., 5.85%
senior unsubordinated notes, due 1/14/09 .... 2,911,125
55,912,656
Finance - Consumer Loans - 0.2%
7,500,000 Household Finance Corp., 8.00%
senior unsecured notes, due 5/9/05 .......... 7,556,250
Finance - Credit Card - 0.4%
13,500,000 American Express Co., 6.75%
senior unsubordinated notes, due 6/23/04 .... 13,179,375
Finance - Investment Bankers/Brokers - 0.3%
10,100,000 Charles Schwab Corp., 8.05%
notes, due 3/1/10 ........................... 10,087,375
Food - Retail - 0.3%
8,000,000 Fred Meyer, Inc., 7.45%
company guaranteed
notes, due 3/1/08 ........................... 7,650,000
3,500,000 Safeway, Inc., 6.50%
notes, due 11/15/08 ......................... 3,220,000
10,870,000
Internet Software - 0.8%
Exodus Communications, Inc.:
$ 2,631,000 11.25%, senior notes, due 7/1/08 ............ $ 2,604,690
8,216,000 4.75%, convertible subordinated notes
due 7/18/08 ................................. 11,707,800
11,660,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09 .................... 10,785,500
25,097,990
Life and Health Insurance - 0.1%
2,500,000 SunAmerica, Inc., 6.75%
notes, due 10/1/07 .......................... 2,371,875
Medical - Drugs - 0.1%
3,000,000 Warner-Lambert Co., 6.00%
notes, due 1/15/08 .......................... 2,760,000
Multimedia - 1.4%
4,500,000 News America, Inc., 6.625%
senior notes, due 1/9/08 .................... 4,117,500
11,640,000 Paramount Communications, Inc., 7.50%
debentures, due 7/15/23 ..................... 10,301,400
10,300,000 Time Warner, Inc., 8.11%
notes, due 8/15/06 .......................... 10,493,125
19,371,000 Viacom, Inc., 7.75%
senior notes, due 6/1/05 .................... 19,516,283
2,000,000 Walt Disney Co., 6.375%
senior notes, due 3/30/01 ................... 1,995,000
46,423,308
Pipelines - 0.3%
9,600,000 Enron Corp., 6.58%
floating quarterly notes, due 9/10/01+ ...... 9,590,976
Retail - Building Products - 1.0%
31,100,000 Home Depot, Inc., 6.50%
senior notes, due 9/15/04 ................... 30,827,875
Retail - Discount - 1.5%
Wal-Mart Stores, Inc.:
19,350,000 6.15%, senior notes, due 8/10/01 ............ 19,156,500
9,500,000 6.55%, senior notes, due 8/10/04 ............ 9,369,375
21,000,000 6.875%, senior notes, due 8/10/09 ........... 20,580,000
49,105,875
Super-Regional Banks - 0.7%
16,000,000 Firstar Bank N.A., 7.125%
subordinated notes, due 12/1/09 ............. 15,180,000
6,050,000 Northern Trust Corp., 7.10%
subordinated notes, due 8/1/09 .............. 5,800,438
20,980,438
Telecommunication Equipment - 0.4%
14,500,000 Lucent Technologies, Inc., 5.50%
notes, due 11/15/08 ......................... 12,923,125
Telecommunication Services - 2.2%
Cox Communcations, Inc.:
13,825,000 7.00%, notes, due 8/15/01 ................... 13,755,875
19,400,000 7.50%, notes, due 8/15/04 ................... 19,303,000
9,500,000 7.75%, notes, due 8/15/06 ................... 9,452,500
10,600,000 7.875%, notes, due 8/15/09 .................. 10,573,500
6,845,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ...... 5,920,925
8,478,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08 ................................ 13,564,800
72,570,600
See Notes to Schedules of Investments.
14 Janus Aspen Series / June 30, 2000
<PAGE>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Telephone - Integrated - 1.5%
$ 33,725,000 AT&T Corp., 6.00%
notes, due 3/15/09 .......................... $ 30,057,406
12,800,000 Telefonos De Mexico S.A., 4.25%
convertible debentures, due 6/15/04 ......... 17,104,000
47,161,406
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $873,975,729) .................... 875,614,055
--------------------------------------------------------------------------------
Foreign Bonds - 0.9%
Cable Television - 0.2%
GBP 4,130,000 Telewest Communications PLC, 5.25%
convertible bonds, due 2/19/07**,+ ....... 5,580,273
Finance - Other Services - 0.1%
EUR 4,400,000 Ono Finance PLC, 13.00%
company guaranteed notes, due 5/1/09**,+ . 3,943,635
Telecommunication Services - 0.6%
EUR 4,563,000 COLT Telecom Group PLC, 2.00%
convertible bonds, due 3/29/06**,+ ....... 7,348,390
GBP 13,950,000 NTL, Inc., 9.75%,
senior notes, due 4/15/09** .............. 13,304,910
20,653,300
--------------------------------------------------------------------------------
Total Foreign Bonds (cost $31,072,039) ....................... 30,177,208
--------------------------------------------------------------------------------
Preferred Stock - 4.7%
Cable Television - 1.3%
299,945 Comcast Corp., convertible, 2.00%
(Sprint Corp./PCS Group) .................... 32,993,950
112,935 MediaOne Group, Inc., convertible, 6.25% ....... 10,157,092
43,151,042
Electric - Integrated - 1.1%
100,990 Alliant Energy Resources, Inc. .................
convertible, 7.25% (McLeodUSA, Inc.)+ ....... 6,943,063
378,805 Reliant Energy, Inc., convertible, 7.00%
(Time Warner, Inc.) ......................... 27,510,713
34,453,776
Internet Software - 0.4%
386,850 PSINet, Inc., convertible, 7.00%+ .............. 13,104,544
Publishing - Newspapers - 0.9%
251,550 Tribune Co., convertible, 2.00%
(America Online, Inc.) ...................... 28,739,587
Telecommunication Services - 1.0%
505,750 Cox Communications, Inc. .......................
convertible, 7.00% .......................... 31,072,016
--------------------------------------------------------------------------------
Total Preferred Stock (cost $153,368,560) .................... 150,520,965
--------------------------------------------------------------------------------
Warrants - 0%
Finance - Other Services - 0%
4,400 Ono Finance PLC - expires 5/31/09*,**,+
(cost $0) ................................... 421,779
U.S. Government Obligations - 16.0%
U.S. Government Agencies - 1.4%
Fannie Mae:
$ 19,100,000 6.25%, due 11/15/02 ......................... $ 18,813,500
9,650,000 5.75%, due 4/15/03 .......................... 9,350,754
7,650,000 Federal Home Loan Bank System
6.75%, due 2/1/02 ........................... 7,630,875
9,100,000 Freddie Mac
7.00%, due 3/15/10 .......................... 9,023,287
44,818,416
U.S. Treasury Notes - 14.6%
U.S. Treasury Notes:
104,650,000 5.875%, due 11/30/01 ........................ 103,734,313
202,275,000 5.875%, due 11/15/04 ........................ 199,117,487
171,400,000 6.00%, due 8/15/09 .......................... 170,006,518
472,858,318
--------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $520,819,872) ........ 517,676,734
--------------------------------------------------------------------------------
Repurchase Agreements - 6.9%
113,800,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00
to be repurchased at $113,864,961
collateralized by $58,039,814 in Fannie
Mae, 5.9142%-7.6562%, 2/25/24-4/18/28;
$30,042,668 in Freddie Mac, 7.1512%-
7.5875%, 2/15/24-11/15/28; $84,786,840
in Ginnie Mae, 6.40%-7.50%, 4/20/22-
2/16/30; with respective values of
$28,501,452, $13,317,846 and
$74,256,703 ................................. 113,800,000
110,000,000 Morgan Stanley Dean Witter & Co., 6.75%
dated 6/30/00, maturing 7/3/00,
to be repurchased at $110,061,875
collateralized by $125,512,848 in Fannie
Mae, 0.65%-10.25%, 1/1/06-6/1/30;
$151,954,954 in Freddie Mac, 0%-8.40%,
7/15/10-12/1/29; with respective values
of $41,395,880 and $70,846,680 .............. 110,000,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $223,800,000) .............. 223,800,000
--------------------------------------------------------------------------------
U.S. Government Agencies - 3.1%
50,000,000 Fannie Mae
6.04%, 9/14/00 .............................. 49,327,222
50,000,000 Federal Home Loan Bank System
5.78%, 7/19/00 .............................. 49,838,444
--------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $99,226,333) ............ 99,165,666
--------------------------------------------------------------------------------
Total Investments (total cost $2,912,715,645) - 98.9% ........ 3,192,962,184
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 1.1% 34,230,447
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 3,227,192,631
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 15
<PAGE>
Janus|Aspen Balanced Portfolio
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Bermuda 0.1% $ 4,702,500
Finland 1.9% 60,099,295
Mexico 0.5% 17,104,000
South Korea 1.3% 40,465,359
Spain 1.1% 33,782,764
Sweden 0.4% 11,858,100
United Kingdom 1.3% 44,175,009
United States++ 93.4% 2,980,775,157
--------------------------------------------------------------------------------
Total 100.0% $ 3,192,962,184
++ Includes Short-Term Securities (83.2% excluding Short-Term Securities)
FORWARD CURRENCY CONTRACTS, OPEN AT JUNE 30, 2000
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
--------------------------------------------------------------------------------
British Pound 9/8/00 2,400,000 $ 3,646,080 $ 50,088
British Pound 9/22/00 8,800,000 13,372,480 646,140
British Pound 10/5/00 4,500,000 6,840,000 281,700
British Pound 1/26/01 1,500,000 2,285,700 10,050
South Korean Won
1/26/01 1,125,000,000 1,005,542 (2,868)
South Korean Won
2/8/01 1,857,000,000 1,659,666 (1,552)
South Korean Won
2/15/01 981,000,000 876,675 196
--------------------------------------------------------------------------------
Total $ 29,686,143 $ 983,754
See Notes to Schedules of Investments.
16 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Equity Income Portfolio
[PHOTO]
Karen Reidy
portfolio manager
For the six months ended June 30, 2000, Janus Aspen Equity Income Portfolio
declined (0.94%) for its Institutional Shares, (1.21)% for its Retirement Shares
and (1.06%) for its Service Shares, compared to a loss of (0.43%) for its
benchmark, the S&P 500 Index.(1)
In my first letter to you as manager of Janus Aspen Equity Income Portfolio, I
would like to take a brief moment to explain my investment strategy. If I had to
sum it up in a few words, it would be, "It starts at the top." By definition,
great companies are led by great management teams. Without stellar management,
the best business models in the world can't sustain predictable, consistent
earnings, improving cash flow growth or rising returns on invested capital. And
because great companies are so rare, you have to scrutinize them one at a time,
from the bottom up.
The sharp market swings that characterized the period only reinforced the
strength of the Janus stock-picking approach. In the midst of extreme market
turbulence, brought on by fears of higher interest rates and rampant
profit-taking, the natural reaction of many investors is to stay close to their
computer screens in order to buy and sell quickly. However, we know this is the
best time to hit the road to meet with our companies, attend industry forums and
talk to end users. The information we glean from these trips reassures us that
the companies we've selected remain compelling investments.
That description would certainly fit Enron Corporation. The world's largest
energy trader, Enron is well-positioned to leverage the ongoing deregulation of
power markets in the U.S. and overseas. But it's Enron's focus on another
rapidly growing area - broadband telecommunications - that we are particularly
enthusiastic about. The company is building a global broadband network using its
existing interstate gas pipeline as a platform for carrying data from one point
to another at very high speeds. We're convinced the potential for these services
is enormous and, as a result, believe the value of Enron's broadband assets
could ultimately exceed that of its market-making operations in natural gas and
electricity.
Although the market inflicted heavy damage on technology stocks, several of our
holdings in this area were among our top performers. Linear Technology, a
leading manufacturer of semiconductor chips that translate analog data into
digital signals, is a driving force in the miniaturization of devices such as
computers and wireless phones. The company reported healthy growth in sales and
profits during the period, and its stock reflected those gains. EMC, the world
leader in information storage, also advanced on the success of its recently
introduced network-attached storage systems for the middle market. These systems
enable customers to tie multiple servers into a single, easily managed
infrastructure.
During a period as volatile as this one, you would expect disappointments, and
we had our share. Specialty retailer Home Depot fell victim to a number of
external events, from rising interest rates to the tight labor market. In a
rising rate environment, home sales and refinancings, which drive
home-improvement activity, generally slow. Recent economic reports have
confirmed that, and the impact of economic slowdown is now being felt. Also,
Home Depot is a company that has traditionally exceeded earnings estimates, and
when its first-quarter earnings merely met estimates, the market was
unforgiving. Fundamentally, the company continues to perform in terms of dollars
per square foot and in terms of rolling out new initiatives, such as Pro
Services for contractors and Expo Stores, a combination remodeling showroom and
referral service. Although we trimmed the position marginally, Home Depot's
historical low valuation and management strength remain attractive.
On the other hand, office supply retailer Staples declined on weakening earnings
attributed to development spending for its Staples.com platform. In addition,
integration issues relating to an acquisition last fall also proved costly.
Consequently, we liquidated the position at a loss.
Going forward, we look for market volatility to be a fixture over the short run.
That said, we remain singularly focused on finding companies with outstanding
management teams, superior top line and earnings growth, and accelerating cash
flow. Experience has shown that businesses with these qualities are able to
perform in any market environment.
As always, thank you for your investment in Janus Aspen Equity Income Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Equities 71.0% 64.1%
Top 10 Equities/Preferred 29.0% 31.8%
Number of Stocks 65 51
Fixed-Income Securities
Investment-Grade
Corporate Bonds 1.1% --
High-Yield Corporate Bonds 6.4% 14.7%
Preferred Stock 8.4% 14.0%
Cash & Cash Equivalents 13.1% 7.2%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 17
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/97)
1 Year 16.68%
From Inception 37.87%
--------------------------------------------------------------------------------
S&P 500 Index
1 Year 7.24%
From Portfolio Inception 22.46%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 16.12%
From Inception 37.19%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 15.72%
From Portfolio Inception 37.28%
--------------------------------------------------------------------------------
Returns shown for Service Shares for periods prior to their inception are
derived from the historical performance of Institutional Shares, adjusted to
reflect the higher operating expenses of Service Shares.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
(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 (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 71.0%
Agricultural Biotechnology - 1.0%
3,820 Pharmacia Corp. ................................ $ 197,446
Appliances - 0.5%
2,405 Maytag Corp. ................................... 88,684
Brewery - 1.2%
3,115 Anheuser-Busch Companies, Inc. ................. 232,652
Broadcast Services and Programming - 2.7%
21,090 AT&T Corp./Liberty Media Group - Class A* ...... 511,433
Cable Television - 1.9%
8,949 Comcast Corp. - Special Class A* ............... 362,434
Cellular Telecommunications - 0.7%
700 Nextel Communications, Inc. - Class A* ......... 42,831
1,970 Vodafone AirTouch PLC (ADR)** .................. 81,632
124,463
Chemicals - Diversified - 1.7%
1,685 E.I. du Pont de Nemours and Co. ................ 73,719
14,620 Lyondell Chemical Co. .......................... 244,885
318,604
Chemicals - Specialty - 0.3%
1,390 Praxair, Inc. .................................. 52,038
Circuits - 3.1%
5,660 Linear Technology Corp. ........................ 361,886
3,345 Maxim Integrated Products, Inc.* ............... 227,251
589,137
Commercial Services - 0.7%
3,320 Paychex, Inc. .................................. 139,440
Computer Data Security - 1.1%
1,204 VeriSign, Inc.* ................................ $ 212,506
Computer Software - 0.4%
4,235 Cadence Design Systems, Inc.* .................. 86,288
Computers - Memory Devices - 6.0%
12,256 EMC Corp.* ..................................... 942,946
1,712 VERITAS Software Corp.* ........................ 193,483
1,136,429
Data Processing and Management - 1.8%
6,460 Automatic Data Processing, Inc. ................ 346,014
Diversified Financial Services - 2.1%
7,660 Associates First Capital Corp. - Class A ....... 170,914
3,830 Citigroup, Inc. ................................ 230,757
401,671
Diversified Operations - 5.1%
18,195 General Electric Co. ........................... 964,335
Electric Products - 1.4%
730 Samsung Electronics** .......................... 241,590
325 Samsung Electronics (GDR)**,+ .................. 29,396
270,986
Electronic Components - Semiconductors - 2.6%
1,955 Advanced Micro Devices, Inc.* .................. 151,024
5,100 Texas Instruments, Inc. ........................ 350,306
501,330
Engines - Internal Combustion - 0.1%
615 Cummins Engine Company, Inc. ................... 16,759
See Notes to Schedules of Investments.
18 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Equity Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Enterprise Software and Services - 0.9%
2,070 Oracle Corp.* .................................. $ 174,009
Fiber Optics - 1.0%
700 Corning, Inc. .................................. 188,912
Finance - Credit Card - 2.4%
8,940 American Express Co. ........................... 465,998
Finance - Investment Bankers/Brokers - 1.1%
6,081 Charles Schwab Corp. ........................... 204,474
Identification Systems and Devices - 1.3%
4,672 Symbol Technologies, Inc. ...................... 252,288
Internet Content - 0.3%
1,475 DoubleClick, Inc.* ............................. 56,234
Internet Software - 0.6%
2,315 America Online, Inc.* .......................... 122,116
Life and Health Insurance - 1.9%
24,378 Prudential PLC** ............................... 357,249
Medical - Biomedical and Genetic - 0.7%
795 Genentech, Inc.* ............................... 136,740
Medical - Drugs - 0.6%
2,210 Pfizer, Inc. ................................... 106,080
Money Center Banks - 0.6%
2,410 Bank of New York Company, Inc. ................. 112,065
Motorcycle and Motor Scooter Manufacturi - 0.2%
990 Harley-Davidson, Inc. .......................... 38,115
Multi-Line Insurance - 0.6%
915 American International Group, Inc. ............. 107,512
Multimedia - 2.2%
6,010 Viacom, Inc. - Class B* ........................ 409,807
Networking Products - 2.1%
6,175 Cisco Systems, Inc.* ........................... 392,498
Optical Supplies - 0.5%
1,270 Allergan, Inc. ................................. 94,615
Pipelines - 3.8%
6,745 El Paso Energy Corp. ........................... 343,573
5,895 Enron Corp. .................................... 380,227
723,800
Printing - Commercial - 0.4%
2,190 Valassis Communications, Inc.* ................. 83,494
Radio - 2.6%
6,840 Hispanic Broadcasting Corp.* ................... 226,575
7,410 Infinity Broadcasting Corp. - Class A* ......... 270,002
496,577
Retail - Apparel and Shoe - 0.4%
2,210 Gap, Inc. ...................................... 69,063
Retail - Building Products - 1.2%
4,523 Home Depot, Inc. ............................... 225,867
Retail - Discount - 2.0%
6,455 Wal-Mart Stores, Inc. .......................... 371,969
Telecommunication Equipment - 4%
304 Nokia Oyj ...................................... 15,576
12,292 Nokia Oyj (ADR) ................................ 613,832
6,370 Telefonaktiebolaget L.M. Ericsson A.B. (ADR) ... 127,400
756,808
Telecommunication Services - 1.6%
1,817 Cox Communications, Inc. - Class A* ............ $ 82,787
10,275 McLeodUSA, Inc. - Class A* ..................... 212,564
295,351
Telephone - Integrated - 1.7%
13,968 Telefonica S.A.* ............................... 301,265
210 Telefonica S.A. (ADR)* ......................... 13,453
314,718
Television - 1.9%
3,447 Univision Communications, Inc. - Class A* ...... 356,765
--------------------------------------------------------------------------------
Total Common Stock (cost $10,355,713) ........................ 13,465,773
--------------------------------------------------------------------------------
Corporate Bonds - 7.2%
Advertising Agencies - 0.1%
$ 6,000 Omnicom Group, Inc., 4.25%
convertible subordinated debentures
due 1/3/07 .................................. 16,822
Broadcast Services and Programming - 1.0%
150,000 Clear Channel Communications, Inc.
2.625%, convertible senior notes
due 4/1/03 .................................. 193,313
Cellular Telecommunications - 2.4%
Nextel Communications, Inc.:
25,000 4.75%, convertible senior notes
due 7/1/07 .................................. 65,938
84,000 9.375%, senior notes, due 11/15/09 .......... 80,220
196,000 5.25%, convertible senior notes
due 1/15/10+ ................................ 197,960
119,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09 .................. 123,165
467,283
Enterprise Software and Services - 1.0%
43,000 BEA Systems, Inc., 4.00%
convertible subordinated notes
due 12/15/06+ ............................... 66,811
78,000 i2 Technologies, Inc., 5.25%
convertible subordinated notes
due 12/15/06+ ............................... 119,048
185,859
Fiber Optics - 0.3%
50,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 12/15/09 .................. 49,250
Internet Software - 1.0%
49,000 Exodus Communications, Inc., 4.75%
convertible subordinated notes
due 7/15/08 ................................. 69,825
125,000 PSINet, Inc., 11.00%
senior notes, due 8/1/09 .................... 115,625
185,450
Telecommunication Services - 0.8%
97,000 NTL, Inc., 7.00%
convertible subordinated notes
due 12/15/08 ................................ 155,200
Telephone - Integrated - 0.6%
80,000 Telefonos de Mexico S.A., 4.25%
convertible debentures, due 6/15/04 ......... 106,900
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $1,305,198) ...................... 1,360,077
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 19
<PAGE>
Janus|Aspen Equity Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Foregin Bond - 0.3%
Cable Television - 0.3%
GBP 43,000 Telewest Communications PLC, 5.25%
convertible bonds, due 2/19/07**,+
(cost $67,782) .............................. $ 58,100
--------------------------------------------------------------------------------
Preferred Stock - 8.4%
Automotive - Cars and Light Trucks - 1.0%
66 Porsche A.G .................................... 180,311
Cable Television - 2.7%
4,000 Comcast Corp.
convertible, 2.00%
(Sprint Corp./PCS Group) .................... 440,000
830 MediaOne Group, Inc.
convertible, 6.25% .......................... 74,648
514,648
Electric - Integrated - 1.4%
3,785 Reliant Energy, Inc.
convertible, 7.00% (Time Warner, Inc.) ...... 274,886
Internet Software - 0.4%
2,380 PSINet, Inc.
convertible, 7.00%+ ......................... 80,623
Publishing - Newspapers - 1.5%
2,465 Tribune Co.
convertible, 2.00% (America Online, Inc.) ... 281,626
Telecommunication Services - 1.4%
4,400 Cox Communications, Inc.
convertible, 7.00% .......................... 270,325
--------------------------------------------------------------------------------
Total Preferred Stock (cost $1,598,019) ...................... 1,602,419
--------------------------------------------------------------------------------
Repurchase Agreement - 13.2%
$ 2,500,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00 to be
repurchased at $2,501,427 collateralized
by $1,275,040 in Fannie Mae, 5.9142%-
7.6562%, 2/25/24-4/18/28; $659,988
in Freddie Mac, 7.1512%-7.5875%,
2/15/24-11/15/28; $1,862,628 in Ginnie
Mae, 6.40%-7.50%, 4/20/22-2/16/30;
with respective values of $626,130,
$292,571 and $1,631,299
(cost $2,500,000) ........................... 2,500,000
--------------------------------------------------------------------------------
Total Investments (total cost $15,826,712) - 100.1% .......... 18,986,369
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.1%) (18,317)
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 18,968,052
--------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Finland 3.3% $ 629,407
Germany 0.9% 180,311
Mexico 0.6% 106,900
South Korea 1.4% 270,986
Spain 1.7% 314,718
Sweden 0.7% 127,400
United Kingdom 2.6% 496,981
United States++ 88.8% 16,859,666
--------------------------------------------------------------------------------
Total 100.0% $ 18,986,369
++ Includes Short-Term Securities (75.6% excluding Short-Term Securities)
FORWARD CURRENCY CONTRACTS, OPEN AT JUNE 30, 2000
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
--------------------------------------------------------------------------------
British Pound 9/22/00 125,000 $ 189,950 $ 9,178
British Pound 10/5/00 15,000 22,800 939
South Korean Won
1/26/01 7,500,000 6,704 (19)
South Korean Won
2/8/01 12,500,000 11,172 (11)
South Korean Won
2/15/01 6,500,000 5,808 2
--------------------------------------------------------------------------------
Total $ 236,434 $ 10,089
See Notes to Schedules of Investments.
20 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Growth and Income Portfolio
[PHOTO]
David Corkins
portfolio manager
For the six months ended June 30, 2000, your investment in Janus Aspen Growth
and Income Portfolio declined (3.55%) for its Institutional Shares, (3.86%) for
its Retirement Shares and (3.73%) for its Service Shares - trailing the (0.44%)
negative return posted by the S&P 500 Index, the Portfolio's benchmark.
The subpar performance can be traced in part to the general cooling the market
experienced during the second quarter. Tech stocks stormed into 2000 riding the
momentum built through the final quarter of 1999, but three successive interest
rate increases, including a sizeable half-point hike in mid-May, halted the
rally. While some money rotated out of the tech and into previously unpopular
sectors like energy, the threat of an overheated economy and its byproduct,
inflation, continued to weigh heavily on the market. At its late-June meeting,
the Federal Reserve decided its aggressive stance had paid off and left rates
alone, although concerns subsequently expanded over steeper oil prices.
In spite of the rising cost of borrowing money, we have been pleased with the
performance of Citigroup. With franchises that include Citibank, Travelers
Insurance and Salomon Smith Barney, Citigroup's strengths extend overseas, where
we believe it has exceptional growth opportunities. For example, its retail
banking business in Asia earns three times as much money as its retail banking
operations in the U.S. Ultimately, we believe the market will reward financial
companies that show strength and that a select group of regional banks will reap
some of those rewards as well. We continue to like midwestern regional thrift
Firstar, which has been a poor performer despite strong fundamentals and is
successfully and smoothly moving forward with its merger with Mercantile Bank.
Other longer-term holdings include Nokia and EMC, which earned solid gains
during the period. As the top wireless handset company in the world, Nokia is in
a prime position to capitalize on market consolidation between Europe and the
U.S., as well as the huge opportunities in China. EMC's business has boomed as
the surge in information on the Internet has translated into increased demand
for data storage. Moving forward, the company is complementing its traditional
storage system business with a push into the storage area network market, and
we'll be monitoring that transition into a new line of business carefully.
A relatively new holding in the Portfolio is Corning. Long known for consumer
products such as Corningware, Corning exited that business in 1998 and turned
its focus to fiber optics, where it has emerged as a top player. The company is
also gaining market share with laser and multiplex products, in which margins
are high and sales are strong. We've done a lot of work on this company and feel
we've really uncovered the value behind the fundamentals.
When we find fundamentally strong companies, we stick with them, even during
slower stretches. That's why we're standing by two holdings that disappointed
over the last six months - Liberty Media Group and Comcast. Liberty Media, an
AT&T tracking stock, is doing extremely well, but its stock pulled back in
sympathy with some of AT&T's other holdings. Comcast, a cable communications
company, also owns the home shopping channel QVC, which had a bit of a hiccup as
it expanded into Europe.
On the other hand, Costco was an unforced error. Despite our detailed research
at the company-store level, as well as recent meetings with management, we were
surprised by Costco's recent announcement of weaker short-term results. We
consequently liquidated our position in the company.
As we move into the second half of the year, I think it is important to keep in
mind that it's dangerous to look at any one period of time. A given period will
have an upside and a downside, and it can be misleading. For example, technology
and more aggressive stocks certainly pulled back in the second quarter, but
that's after several years of outstanding performance.
But what makes me feel good about our companies is that even though some have
pulled back, the fundamentals remain strong. Backed by our thorough research
practices, we strongly believe in the companies we hold in this Portfolio.
Thank you for investing in Janus Aspen Growth and Income Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Equities 76.9% 77.7%
Top Ten Equities 27.0% 27.7%
Number of Stocks 87 94
Fixed-Income Securities 3.7% 4.7%
Cash and Cash Equivalents 19.4% 17.6%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 21
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/98)
1 Year 39.22%
From Inception 38.09%
--------------------------------------------------------------------------------
S&P 500 Index
1 Year 7.24%
From Portfolio Inception 14.72%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/98)
1 Year 38.45%
From Inception 37.37%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 38.12%
From Portfolio Inception 37.70%
--------------------------------------------------------------------------------
Returns shown for Service Shares for periods to their inception are derived from
the historical performance of Institutional Shares, adjusted to reflect the
higher operating expenses of Service Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or 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 waived a portion of the Portfolio's expenses
for certain periods. Without such waiver, the Portfolio's total returns for
each class would have been lower. Past performance does not guarantee
future results.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
This Portfolio may invest in initial public offerings (IPO's). IPO's and other
investment techniques may have a magnified performance impact on a portfolio
with a small asset base. The Portfolio may not experience similar performance as
its assets grow.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 74.6%
Advertising Agencies - 0.1%
1,420 Omnicom Group, Inc. ............................ $ 126,469
Advertising Services - 0.4%
39,260 Avenue A, Inc.* ................................ 345,979
4,000 TMP Worldwide, Inc.* ........................... 295,250
641,229
Audio and Video Products - 1.0%
9,800 Sony Corp. ..................................... 917,000
6,000 Sony Corp. (ADR) ............................... 565,875
1,482,875
Automotive - Cars and Light Trucks - 0.4%
14,600 Ford Motor Co. ................................. 627,800
1,911 Visteon Corp.* ................................. 23,171
650,971
Brewery - 1.1%
23,000 Anheuser-Busch Companies, Inc. ................. 1,717,812
Broadcast Services and Programming - 3.6%
188,660 AT&T Corp./Liberty Media Group - Class A* ...... 4,575,005
9,500 Clear Channel Communications, Inc. ............. 712,500
19,145 TCI Satellite Entertainment, Inc. - Class A* ... 166,322
5,453,827
Cable Television - 2.3%
86,000 Comcast Corp. - Special Class A* ............... 3,483,000
Casino Hotels - 0.7%
82,190 Park Place Entertainment Corp.* ................ 1,001,691
Cellular Telecommunications - 5.4%
11,000 Crown Castle International Corp.* .............. $ 401,500
30,000 Nextel Communications, Inc. - Class A* ......... 1,835,625
36,000 Sprint Corp./PCS Group* ........................ 2,142,000
329,218 Vodafone AirTouch PLC .......................... 1,317,080
20,910 VoiceStream Wireless Corp.* .................... 2,431,768
8,127,973
Chemicals - Diversified - 0.6%
11,510 E.I. du Pont de Nemours and Co. ................ 503,562
30,000 Solutia, Inc. .................................. 412,500
916,062
Circuits - 0.7%
14,780 Maxim Integrated Products, Inc.* ............... 1,004,116
Commercial Services - 1.1%
38,025 Paychex, Inc. .................................. 1,597,050
Computer Data Security - 2.1%
18,277 VeriSign, Inc.* ................................ 3,225,891
Computers - Memory Devices - 2.9%
50,000 EMC Corp.* ..................................... 3,846,875
4,500 VERITAS Software Corp.* ........................ 508,570
4,355,445
Computers - Micro - 2.4%
40,000 Sun Microsystems, Inc.* ........................ 3,637,500
Cruise Lines - 0.5%
40,600 Royal Caribbean Cruises, Ltd. .................. 751,100
Distribution and Wholesale - 0.5%
95,000 Brightpoint, Inc.* ............................. 822,344
See Notes to Schedules of Investments.
22 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Growth and Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Diversified Financial Services - 2.3%
41,090 Associates First Capital Corp. - Class A ....... $ 916,821
35,270 Citigroup, Inc. ................................ 2,125,018
11,290 Household International, Inc. .................. 469,241
3,511,080
Diversified Operations - 2.9%
83,510 General Electric Co. ........................... 4,426,030
E-Commerce - 0.1%
2,000 eBay, Inc.* .................................... 108,625
Electronic Components - Semiconductors - 3.4%
3,645 Advanced Micro Devices, Inc.* .................. 281,576
7,885 Intel Corp. .................................... 1,054,126
56,000 Texas Instruments, Inc. ........................ 3,846,500
5,182,202
Enterprise Software and Services - 0.9%
16,500 Oracle Corp.* .................................. 1,387,031
Entertainment Software - 0.2%
5,000 Electronic Arts, Inc.* ......................... 364,687
Fiber Optics - 3.9%
7,000 Corning, Inc. .................................. 1,889,125
26,000 JDS Uniphase Corp.* ............................ 3,116,750
8,000 Metromedia Fiber Network, Inc. - Class A* ...... 317,500
2,250 SDL, Inc.* ..................................... 641,672
5,965,047
Finance - Credit Card - 1.5%
45,000 American Express Co. ........................... 2,345,625
Finance - Investment Bankers/Brokers - 0.5%
22,235 Charles Schwab Corp. ........................... 747,652
Food - Distribution - 0.1%
2,140 Bestfoods ...................................... 148,195
Instruments - Scientific - 0.2%
4,000 PE Corp./PE Biosystems Group ................... 263,500
Internet Content - 0.6%
3,500 Critical Path, Inc.* ........................... 204,094
20,000 DoubleClick, Inc.* ............................. 762,500
966,594
Internet Software - 2.1%
4,000 Inktomi Corp.* ................................. 473,000
20,000 Liberate Technologies, Inc.* ................... 586,250
9,000 Macromedia, Inc.* .............................. 870,187
27,700 PSINet, Inc.* .................................. 695,962
21,210 Register.com, Inc.* ............................ 648,231
3,273,630
Life and Health Insurance - 0.8%
38,295 John Hancock Financial Services, Inc.* ......... 907,113
5,000 ReliaStar Financial Corp. ...................... 262,188
1,169,301
Medical - Drugs - 1.4%
43,595 Pfizer, Inc. ................................... 2,092,560
Medical Instruments - 0.7%
20,500 Medtronic, Inc. ................................ 1,021,156
Motorcycle and Motor Scooter Manufacturing 0.3%
11,085 Harley-Davidson, Inc. .......................... 426,772
Multi-Line Insurance - 0.6%
8,000 American International Group, Inc. ............. 940,000
Multimedia - 3.8%
51,064 Time Warner, Inc. .............................. $ 3,880,864
28,200 Viacom, Inc. - Class B* ........................ 1,922,888
5,803,752
Music/Clubs - 0.5%
16,000 SFX Entertainment, Inc.* ....................... 725,000
Networking Products - 2.8%
66,500 Cisco Systems, Inc.* ........................... 4,226,906
Oil Companies - Integrated - 0.2%
5,670 Coastal Corp. .................................. 345,161
Optical Supplies - 1.0%
20,000 Allergan, Inc. ................................. 1,490,000
Pipelines - 2.5%
57,000 Enron Corp. .................................... 3,676,500
3,040 Kinder Morgan, Inc. ............................ 105,070
3,781,570
Printing - Commercial - 0.8%
30,000 Valassis Communications, Inc.* ................. 1,143,750
Radio - 1.2%
3,000 AMFM, Inc.* .................................... 207,000
6,200 Hispanic Broadcasting Corp.* ................... 205,375
39,600 Infinity Broadcasting Corp. - Class A* ......... 1,442,925
1,855,300
Retail - Building Products - 0.7%
20,000 Home Depot, Inc. ............................... 998,750
Retail - Office Supplies - 0.5%
50,500 Staples, Inc.* ................................. 776,437
Super-Regional Banks - 1.2%
83,185 Firstar Corp. .................................. 1,752,084
Telecommunication Equipment - 5.8%
108,000 Nokia Oyj (ADR) ................................ 5,393,250
26,000 Nortel Networks Corp. - New York Shares ........ 1,774,500
81,000 Telefonaktiebolaget L.M. Ericsson A.B. (ADR) ... 1,620,000
8,787,750
Telecommunication Services - 3.0%
10,000 Allegiance Telecom, Inc.* ...................... 640,000
37,695 Cox Communications, Inc. - Class A* ............ 1,717,478
110,000 McLeodUSA, Inc. - Class A* ..................... 2,275,625
4,633,103
Telephone - Integrated - 2.1%
101,612 Telefonica S.A.* ............................... 2,191,593
18,000 Telefonos de Mexico S.A. (ADR) ................. 1,028,250
3,219,843
Toys - 0.2%
20,000 Mattel, Inc. ................................... 263,750
--------------------------------------------------------------------------------
Total Common Stock (cost $94,631,108) ........................ 113,138,198
--------------------------------------------------------------------------------
Corporate Bonds - 3.7%
Broadcast Services and Programming - 0.2%
$ 250,000 Clear Channel Communications, Inc., 1.50%
senior notes, due 12/1/02 ................... 243,438
Cable Television - 0.1%
5,000 Adelphia Communications Corp., 7.75%
senior notes, due 1/15/09 ................... 4,200
200,000 Telewest Communications PLC, 9.875%
senior notes, due 2/1/10+ ................... 186,000
190,200
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 23
<PAGE>
Janus|Aspen Growth and Income Portfolio
SCHEDULES OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Cellular Telecommunications - 0.1%
$ 100,000 VoiceStream Wireless Corp., 10.375%
senior notes, due 11/15/09 .................. $ 103,500
Computers - Micro - 0.1%
200,000 Sun Microsystems, Inc., 7.50%
senior notes, due 8/15/06 ................... 199,500
Diversified Financial Services - 0.7%
General Electric Capital Corp.:
250,000 7.00%, notes, due 3/1/02 .................... 249,375
75,000 6.52%, notes, due 10/8/02 ................... 73,969
250,000 7.00%, notes, due 2/3/03 .................... 249,063
500,000 6.81%, notes, due 11/3/03 ................... 494,375
1,066,782
Enterprise Software and Services - 1.3%
844,000 BEA Systems, Inc., 4.00%
convertible subordinated notes
due 12/15/06+ ............................... 1,311,365
393,000 i2 Technologies, Inc., 5.25%
convertible subordinated notes
due 12/15/06+ ............................... 599,816
1,911,181
Internet Software - 0%
30,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 .................... 29,700
Super-Regional Banks - 0.3%
500,000 Firstar Bank N.A., 7.125%
subordinated notes, due 12/1/09 ............. 474,375
Telecommunication Services - 0.5%
25,000 Allegiance Telecom, Inc., 12.875%
senior notes, due 5/15/08 ................... 27,062
NTL, Inc.:
83,000 7.00%, convertible subordinated notes
due 12/15/08 ................................ 132,800
750,000 5.75%, convertible subordinated notes
due 12/15/09+ ............................... 588,750
748,612
Wireless Equipment - 0.4%
600,000 American Tower Corp., 5.00%
convertible notes, due 2/15/10+ ............. 607,500
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $5,166,255) ...................... 5,574,788
--------------------------------------------------------------------------------
Preferred Stock - 2.3%
Automotive - Cars and Light Trucks - 0.8%
442 Porsche A.G. ................................... 1,207,535
Cable Television - 1.1%
7,000 Comcast Corp., convertible, 2.00%
(Sprint Corp./PCS Group) .................... 770,000
10,000 MediaOne Group, Inc.
convertible, 6.25% .......................... 899,375
1,669,375
Internet Software - 0.4%
20,000 PSINet, Inc.
convertible, 7.00%+ ......................... 677,500
--------------------------------------------------------------------------------
Total Preferred Stock (cost $4,110,130) ...................... 3,554,410
--------------------------------------------------------------------------------
Repurchase Agreement - 19.2%
$ 29,200,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $29,216,668 collateralized
by $14,892,465 in Fannie Mae, 5.9142%-
7.6562%, 2/25/24-4/18/28; $7,708,664
in Freddie Mac, 7.1512%-7.5875%,
2/15/24-11/15/28; $21,755,498 in
Ginnie Mae, 6.40%-7.50%, 4/20/22-
2/16/30; with respective values of
$7,313,202, $3,417,233 and
$19,053,565 (cost $29,200,000) .............. $ 29,200,000
--------------------------------------------------------------------------------
Total Investments (total cost $133,107,493) - 99.9% .......... 151,467,396
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.1% 221,877
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 151,689,273
--------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Canada 1.2% $ 1,774,500
Finland 3.5% 5,393,250
Germany 0.8% 1,207,535
Japan 1.0% 1,482,875
Mexico 0.7% 1,028,250
Spain 1.4% 2,191,593
Sweden 1.1% 1,620,000
United Kingdom 1.0% 1,503,080
United States++ 89.3% 135,266,313
--------------------------------------------------------------------------------
Total 100.0% $ 151,467,396
++ Includes Short-Term Securities (70.0% excluding Short-Term Securities)
See Notes to Schedules of Investments.
24 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Strategic Value Portfolio
[PHOTO]
David Decker
portfolio manager
Since its inception on May 1, 2000, Janus Aspen Strategic Value Portfolio gained
1.00% for its Institutional Shares and 0.90% for its Service Shares. In
comparison, our benchmark, the S&P 500 Index, returned 0.36% for the same period
ended June 30, 2000.(1)
Given that this is my first letter to Janus Aspen Strategic Value Portfolio
shareholders, I would like to take a brief moment to explain the philosophy of
the Portfolio and our approach to value investing. First and foremost, the
Portfolio seeks to protect the downside, while looking for unique opportunities
to provide solid long-term capital appreciation through patient investing. In
other words, it will try to hit more singles and doubles than home runs. In
addition to protecting the downside, the Portfolio's objectives include
investing in companies that are attractively valued relative to the free cash
flow they will generate and investing in companies with improving returns on
invested capital.
I'll begin by discussing our first objective - downside protection with a
catalyst. In my opinion, the premise of a value Portfolio should be to minimize
downside risk by investing in attractively valued companies, while still
providing long-term capital appreciation. It is not enough simply to find
"cheap" stocks because cheap stocks can stay that way for a very long time. The
key is to identify a catalyst through in-depth research that will trigger an
upward revaluation of the stock. 3Com, a developer of easy-to-use connectivity
products and solutions for consumers and businesses, is a good example. We
bought this stock because we felt the market was giving almost no credit to the
intrinsic value of the 3Com franchise following its spin-off of handheld
computing device maker Palm, Inc. Even if Palm's stock was overvalued, we
believed the intrinsic value of 3Com would more than offset any risk to 3Com's
stock price. To our satisfaction, investors have since begun to recognize this
value, and the stock has appreciated, outperforming the improved Palm stock
price. In this case, we were looking for anomalies which the market was not
properly valuing 3Com's true value, and we found them.
That brings me to the Portfolio's second objective, which is to use free cash
flow as a tool for measuring valuation. The process of value investing is often
described in rather simplistic terms. For example, many refer to it as investing
in companies with a low price-to-earnings ratio (P/E). However, P/E alone is
often misleading. Valuation is a process of accurately forecasting future cash
flows generated by a company over time. Because earnings do not necessarily
represent cash flow, we tend not to focus on P/E as a primary tool for
valuation. We therefore prefer to look at price to free cash flow, which helps
us take into account the capital intensity of the company.
We also look for companies with improving returns on invested capital. When you
entrust your money to Janus, you expect us to invest it in the highest-returning
opportunities we can find. We expect the same of the companies in which we
invest. After a company generates its free cash flow, we believe the most
important predictor of the long-term value it creates is how it invests that
cash. Does it pay out dividends, make acquisitions, reinvest in the firm, pay
down debt or buy back stock? We look for companies focusing on improving the
intrinsic value of their business by investing that cash in high-rate-of-return
opportunities.
There have been discussions recently about the shift away from growth stocks and
into value stocks. I believe this is too simplistic an explanation. From my
perspective, what has taken place is a recognition that one must pay for risk.
In other words, valuation does matter and always has, irrespective of the label
"growth" or "value." Our job is to find great companies that are attractively
valued, no matter how they are classified.
Finding value is, of course, not always easy. It requires digging deep into a
company and thinking about value from many different perspectives - not just as
a function of P/E or other simplistic proxies. In fact, the less obvious a
company's value is, the greater the reward. These are the types of opportunities
we're constantly in search of.
Thank you for your investment in Janus Aspen Strategic Value Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000
--------------------------------------------------------------------------------
Equities 59.5%
Foreign 10.1%
Europe 2.7%
Top 10 Equities (% of Assets) 25.6%
Number of Stocks 49
Cash & Cash Equivalents 40.5%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 25
<PAGE>
CUMULATIVE TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/00)
From Inception 1.00%
--------------------------------------------------------------------------------
S&P 500 Index
From Portfolio Inception 0.36%
--------------------------------------------------------------------------------
Service Shares (Inception Date 5/1/00)
From Inception 0.90%
--------------------------------------------------------------------------------
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
(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. Concentrating may
lead to greater price volatility. Past performance does not guarantee
future results.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 59.5%
Aerospace and Defense - 2.1%
375 B.F. Goodrich Co. .............................. $ 12,773
555 United Technologies Corp. ...................... 32,676
45,449
Automotive - Truck Parts and Equipment - 1.9%
1,840 Delphi Automotive Systems Corp. ................ 26,795
225 Federal-Mogul Corp. ............................ 2,152
565 Lear Corp.* .................................... 11,300
40,247
Building Products - Cement and Aggregate - 0.9%
805 Cemex S.A. (ADR) ............................... 18,817
Cable Television - 1.9%
1,000 Comcast Corp. - Special Class A* ............... 40,500
Casino Hotels - 1.9%
2,565 Park Place Entertainment Corp.* ................ 31,261
370 Station Casinos, Inc.* ......................... 9,250
40,511
Chemicals - Diversified - 0.8%
1,025 Lyondell Chemical Co. .......................... 17,169
Chemicals - Specialty - 0.7%
635 Cytec Industries, Inc.* ........................ 15,677
Commercial Services - 0.7%
225 Dun and Bradstreet Corp. ....................... 6,441
260 Iron Mountain, Inc.* ........................... 8,840
15,281
Computer Software - 1.5%
1,645 Cadence Design Systems, Inc.* .................. $ 33,517
Computers - Micro - 3.0%
1,260 Apple Computer, Inc.* .......................... 65,992
Containers - Paper and Plastic - 0.9%
1,955 Packaging Corp. of America* .................... 19,794
Cosmetics and Toiletries - 1.0%
370 Colgate-Palmolive Co. .......................... 22,154
Diversified Financial Services - 0.3%
110 Citigroup, Inc. ................................ 6,627
Diversified Manufacturing Operations - 4.7%
650 Danaher Corp. .................................. 32,134
1,470 Tyco International, Ltd. ....................... 69,641
101,775
Electric - Integrated - 0.5%
300 Montana Power Co. .............................. 10,594
Electronic Components - Semiconductors - 2.5%
690 Advanced Micro Devices, Inc.* .................. 53,303
Electronic Safety Devices - 0.4%
1,352 Williams PLC ................................... 7,880
Finance - Credit Card - 1.9%
780 American Express Co. ........................... 40,657
Finance - Investment Bankers/Brokers - 1.3%
240 Merrill Lynch & Company, Inc. .................. 27,600
Internet Software - 0.5%
450 PSINet, Inc.* .................................. 11,306
See Notes to Schedules of Investments.
26 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Strategic Value Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Life and Health Insurance - 0.8%
745 John Hancock Financial Services, Inc.* ......... $ 17,647
Machinery - Construction and Mining - 0.3%
525 Terex Corp.* ................................... 7,416
Medical - Outpatient and Home Medical Care - 0.8%
1,450 Apria Healthcare Group, Inc.* .................. 17,763
Medical Products - 2.4%
505 Johnson & Johnson .............................. 51,447
Money Center Banks - 2.4%
445 Bank of New York Company, Inc. ................. 20,693
420 Chase Manhattan Corp.* ......................... 19,346
1,000 DBS Group Holdings, Ltd. ....................... 12,840
52,879
Multimedia - 0.4%
120 Viacom, Inc. - Class B* ........................ 8,182
Networking Products - 2.1%
805 3Com Corp.* .................................... 46,388
Oil Companies - Integrated - 2.5%
905 Coastal Corp. .................................. 55,092
Oil Refining and Marketing - 2.1%
2,500 SK Corp. ....................................... 45,853
Pipelines - 2.1%
285 Enron Corp. .................................... 18,383
820 Kinder Morgan, Inc. ............................ 28,341
46,724
Printing - Commercial - 2.0%
1,160 Valassis Communications, Inc.* ................. 44,225
Publishing - Newspapers - 1.2%
660 New York Times Co. - Class A ................... 26,070
Retail - Apparel and Shoe - 0.4%
560 Ross Stores, Inc. .............................. 9,555
Retail - Discount - 2.0%
2,285 TJX Companies, Inc. ............................ 42,844
Retail - Office Supplies - 1.0%
1,380 Staples, Inc.* ................................. 21,217
Retail - Restaurants - 0.3%
300 Jack in the Box, Inc.* ......................... 7,387
Telephone - Integrated - 3.9%
1,700 SBC Communications, Inc. ....................... 73,525
215 Telefonos de Mexico S.A. (ADR) ................. 12,282
85,807
Television - 2.4%
950 SBS Broadcasting S.A.* ......................... 51,775
Transportation - Truck - 1.0%
915 CNF Transportation, Inc. ....................... 20,816
--------------------------------------------------------------------------------
Total Common Stock (cost $1,279,854) ......................... 1,293,937
--------------------------------------------------------------------------------
Repurchase Agreements - 18.4%
$ 200,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $200,114 collateralized
by $102,003 in Fannie Mae, 5.9142%-
7.6562%, 2/25/24-4/18/28; $52,799 in
Freddie Mac, 7.1512%-7.5875%,
2/15/24-11/15/28; $149,010 in Ginnie
Mae, 6.40%-7.50%, 4/20/22-2/16/30;
with respective values of $50,090,
$23,406 and $130,504 ........................ $ 200,000
200,000 Morgan Stanley Dean Witter & Co., 6.80%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $200,113 collateralized
by $228,205 in Fannie Mae, 0.65%-
10.25%, 1/1/06-6/1/30; $276,282 in
Freddie Mac, 0%-8.40%, 7/15/10-
12/1/29; with respective values of
$75,265 and $128,812 ........................ 200,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $400,000) .................. 400,000
--------------------------------------------------------------------------------
U.S. Government Agencies - 20.7%
Fannie Mae
150,000 6.43%, 7/5/00 ............................... 149,893
Federal Farm Credit Bank
200,000 6.43%, 7/14/00 .............................. 199,535
Freddie Mac
100,000 6.43%, 7/20/00 .............................. 99,661
--------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $449,089) ..... 449,089
--------------------------------------------------------------------------------
Total Investments (total cost $2,128,943) - 98.6% ............ 2,143,026
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 1.4% 29,963
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 2,172,989
--------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Bermuda 3.2% $ 69,641
Luxembourg 2.4% 51,775
Mexico 1.5% 31,099
Singapore 0.6% 12,840
South Korea 2.1% 45,853
United Kingdom 0.4% 7,880
United States++ 89.8% 1,923,938
--------------------------------------------------------------------------------
Total 100.0% $ 2,143,026
++ Includes Short-Term Securities (50.2% excluding Short-Term Securities)
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 27
<PAGE>
Janus|Aspen International Growth Portfolio
[PHOTO]
Helen Young Hayes
portfolio manager
[PHOTO]
Laurence Chang
portfolio manager
For the six months ended June 30, 2000, Janus Aspen International Growth
Portfolio returned 2.90% for its Institutional Shares, 2.67% for its Retirement
Shares and 2.77% for its Service Shares. This performance compared favorably
with the Portfolio's benchmark, the Morgan Stanley Capital International EAFE
Index, which declined (4.06%).(1)
Our performance notwithstanding, the environment for international equities
proved increasingly challenging. Throughout the period, European markets
struggled with uneven economic growth and weakness in the euro currency, which
fueled inflation fears. In an attempt to contain inflation below the European
Union's self-imposed 2% limit, the European Central Bank initiated a series of
interest rate hikes. Meanwhile, Asia and Latin America fared better, bolstered
by improving economic fundamentals. In Japan, a growing budget deficit and
lackluster economy held back most equities, as technology and telecommunications
stocks led the Nikkei 225 Index below 17,000 for the first time this year.
Volatility, which has come to characterize the market's behavior, intensified
throughout the period. While a number of market indices rose to all-time highs,
the breadth of the advance had been markedly narrow. Since March, however, the
very same stocks that fueled the bull market, namely technology and other
so-called "new economy" issues, ignited several broad sell-offs as investors
engaged in a round of profit-taking. Attention was then redirected to "old
economy" companies, including pharmaceuticals, financials and some select
cyclical or economically sensitive stocks. For the most part, though, the
markets appeared to settle into a trading range, moving abruptly in either
direction from one day to the next.
In this type of market environment, we believe it is particularly important to
identify individual opportunities capable of transcending short-term
fluctuations. While we acknowledge the impact of economic and market events, our
focus continues to be on companies that combine dominant franchises, outstanding
products and forward-thinking management. Optical networking has proven to be a
fertile area for us, and in this group, Canada's Nortel Networks was a standout.
The boom in global Internet usage has created numerous opportunities for
companies providing the basic networking infrastructure. Nortel is a leader in
photonics technology, which employs dense wave division multiplexing to increase
the capacity of existing fiber-optic lines. With its optical division expected
to make up nearly half the company's revenues by year end and with strong growth
in wireless infrastructure and access, Nortel is developing a dominant franchise
across the most promising areas of the telecom equipment universe.
As businesses continue to embrace the power of the Internet, the need for
products that safeguard communications and e-commerce transactions becomes more
and more critical. Our holdings in Israel's Check Point Software Technologies,
which dominates firewall software, advanced following a significant new-product
announcement. Although Check Point is perceived as an Internet-related company,
it nimbly navigated extreme market volatility.
Another positive contributor was longtime holding, Philips Electronics. The
company's semiconductor division continued to experience robust demand for its
chips, particularly from manufacturers of telephones and digital TVs. In
addition, its 1999 acquisition of chip-maker VLSI has raised its profile in
semiconductors for digital and wireless devices.
Despite these successes, several of our holdings fell short of expectations.
Sony, one of Japan's most visible companies, fell significantly despite its
dominance in the video-game console business. NTT DoCoMo, another Japanese
bellwether, also declined even as the company's international strategy for its
wireless Internet business gained momentum and growth continued to accelerate.
We believe much of the selling in Sony and NTT DoCoMo was related to
profit-taking after long periods of strength, and, as a result, our optimism
surrounding both companies remains intact.
Looking ahead, we remain generally optimistic regarding the future of
international markets. Although impacted by liquidity issues related to rising
U.S. interest rates, prospects for Asia and emerging markets appear considerably
brighter. Europe, however, while experiencing solid economic growth, will likely
see further volatility until the euro stabilizes. In anticipation, we have let
our cash position build in order to increase our flexibility as compelling
investment opportunities arise. Still, we will stay focused on the fundamentals
of individual companies, carefully watching valuation levels and investing in
businesses we believe can generate strong results in any economic environment.
In closing, we would like to thank you for your investment and confidence in
Janus Aspen International Growth Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Equities 78.7% 90.3%
Foreign 74.3% 82.0%
Top 10 Equities 28.7% 31.8%
Number of Stocks 138 123
Cash, Cash Equivalents
& Fixed-Income Securities 21.3% 9.7%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends. Net dividends reinvested are the
dividends that remain to be reinvested after foreign tax obligations have
been met. Such obligations vary from country to country.
Past performance does not guarantee future results.
28 Janus Aspen Series / June 30, 2000
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/2/94)
1 Year 70.41%
5 Year 32.44%
From Inception 26.23%
--------------------------------------------------------------------------------
Morgan Stanley Capital International EAFE Index(2)
1 Year 17.16%
5 Year 11.33%
From Inception Date of Institutional Shares 9.53%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 69.58%
5 Year 31.23%
From Portfolio Inception 25.23%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 67.81%
5 Year 32.16%
From Portfolio Inception 26.23%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or 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 waived a portion of the Portfolio's expenses
for certain periods. 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.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
This Portfolio may invest in initial public offerings (IPO's). IPO's and other
investment techniques may have a magnified performance impact on a portfolio
with a small asset base. The Portfolio may not experience similar performance as
its assets grow.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 77.3%
Advertising Sales - 0.8%
559,598 Havas Advertising S.A.** ....................... $ 12,847,366
Aerospace and Defense - 0.1%
1,332,500 Finmeccanica S.p.A.*,** ........................ 1,831,677
Agricultural Biotechnology - 0.5%
162,110 Pharmacia Corp. ................................ 8,379,061
Applications Software - 0.3%
597,031 Sage Group PLC** ............................... 4,799,418
Audio and Video Products - 1.9%
298,400 Sony Corp.** ................................... 27,921,720
35,520 Sony Corp. (ADR)** ............................. 3,349,980
31,271,700
Broadcast Services and Programming - 1.5%
90,486 EM.TV & Merchandising A.G.** ................... 5,351,789
286,130 Grupo Televisa S.A. (GDR)* ..................... 19,725,087
25,076,876
Cable Television - 1.2%
21,285 Globo Cabo S.A. (ADR) .......................... 295,329
310,702 Le Groupe Videotron ltee.** .................... 7,213,583
324,696 Rogers Communications, Inc. - Class B*,** ...... 9,193,003
23,075 Rogers Communications, Inc. - Class B
- New York Shares*,** ....................... 657,638
571,878 Telewest Communications PLC*,** ................ 1,997,912
19,357,465
Cellular Telecommunications - 10.6%
1,096,000 China Mobile, Ltd.*,** ......................... $ 9,666,412
298,450 China Telecom, Ltd. (ADR)*,** .................. 53,068,141
119,578 Egyptian Mobile Service Co.* ................... 3,891,692
1,677 NTT DoCoMo, Inc.** ............................. 45,490,751
560,210 Partner Communications
Company, Ltd. (ADR)* ........................ 5,321,995
191,050 Telesp Celular Participacoes S.A. (ADR) ........ 8,573,369
10,765,033 Vodafone AirTouch PLC** ........................ 43,066,937
101,310 Vodafone AirTouch PLC (ADR)** .................. 4,198,033
173,277,330
Computer Data Security - 2.1%
477,632 Baltimore Technologies PLC*,** ................. 3,615,435
146,525 Check Point Software Technologies, Ltd.* ....... 31,026,669
34,642,104
Computer Services - 1.1%
529,850 Adcore A.B.* ................................... 4,107,961
20,720 Atos S.A.*,** .................................. 1,946,472
20,745 Cap Gemini S.A.** .............................. 3,668,954
305,067 Getronics N.V.** ............................... 4,722,807
176,503 Logica PLC** ................................... 4,179,131
18,625,325
Computer Software - 0.5%
48,600 Software A.G.** ................................ 4,495,687
132,029 Tietoenator Oyj** .............................. 4,423,326
8,919,013
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 29
<PAGE>
Janus|Aspen International Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Computers - Integrated Systems - 1.6%
81,937 ASM Lithography Holding N.V.*,** ............... $ 3,536,047
42,537 ASM Lithography Holding N.V. (ADR)*,** ......... 1,876,945
1,377,200 Dimension Data Holdings, Ltd. .................. 11,395,796
86,000 Fujitsu, Ltd.** ................................ 2,983,133
406,900 Psion PLC** .................................... 3,936,278
160,735 SEMA Group PLC** ............................... 2,287,365
26,015,564
Computers - Micro - 0.9%
15,368,000 Legend Holdings, Ltd.** ........................ 14,884,915
Containers - Paper and Plastic - 0%
6,923 IFCO Systems N.V.*,** .......................... 185,153
8,465 IFCO Systems N.V. (ADR)*,** .................... 215,858
401,011
Data Processing and Management - 0.2%
7,520 Autonomy Corp. PLC*,** ......................... 902,400
14,855 Autonomy Corp. PLC (ADR)*,** ................... 1,827,165
2,729,565
Distribution and Wholesale - 0.1%
974,000 Global Tech Holdings, Ltd.** ................... 1,124,562
Diversified Financial Services - 0.1%
709,917 Egg PLC*,**,+ .................................. 1,837,811
Diversified Operations - 1.0%
175,194 Bombardier, Inc. - Class B** ................... 4,753,284
2,042,000 Citic Pacific, Ltd.** .......................... 10,688,037
264,069 Hays PLC** ..................................... 1,477,657
16,918,978
Electric Products - 1.8%
74,670 Samsung Electronics** .......................... 24,711,678
51,200 Samsung Electronics (GDR)**,+ .................. 4,631,040
29,342,718
Electronic Components - 6.1%
5,726 Celestica, Inc.*,** ............................ 278,635
276,100 Celestica, Inc. - New York Shares*,** .......... 13,701,463
45,090 Flextronics International, Ltd.*,** ............ 3,097,119
376,158 Koninklijke (Royal) Philips Electronics N.V.** . 17,812,698
633,983 Koninklijke (Royal) Philips Electronics N.V.
- New York Shares** ......................... 30,114,193
97,000 Murata Manufacturing Company, Ltd.** ........... 13,953,866
664,000 NEC Corp.** .................................... 20,898,757
99,856,731
Electronic Components - Semiconductors - 4.0%
114,520 Chartered Semiconductor
Manufacturing, Ltd. (ADR)*,** ............... 10,306,800
4,200 Rohm Company, Ltd.** ........................... 1,230,606
96,045 St Assembly Test Services, Ltd. (ADR)*,** ...... 2,473,159
124,441 STMicroelectronics N.V. ** ..................... 7,872,993
257,625 STMicroelectronics N.V .........................
- New York Shares** ......................... 16,536,305
119,601 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)* ........................ 4,634,539
556,630 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)*,+ ...................... 21,604,202
64,658,604
Electronic Connectors - 0.2%
25,400 Hirose Electric Company, Ltd.** ................ 3,963,592
Electronic Safety Devices - 0.3%
815,426 Williams PLC** ................................. $ 4,752,723
Fiber Optics - 1.3%
392,225 Completel Europe N.V ........................... 4,887,773
6,070 E-Tek Dynamics, Inc.* .......................... 1,601,342
128,084 JDS Uniphase Corp.* ............................ 15,354,070
21,843,185
Food - Catering - 0.3%
372,740 Compass Group PLC** ............................ 4,912,154
Food - Dairy Products - 0.3%
91,915 Koninklijke Numico N.V.** ...................... 4,379,003
Food - Diversified - 0.2%
77,159 Unilever N.V.** ................................ 3,553,959
Human Resources - 0.3%
220,552 Capita Group PLC** ............................. 5,399,061
Internet Content - 0.6%
169,295 Melbourne IT Ltd.* ............................. 852,523
63,600 Softbank Corp.** ............................... 8,656,209
9,508,732
Internet Software - 0.3%
27,420 Commtouch Software, Ltd.* ...................... 891,150
59,475 GEO Interactive Media Group PLC*,**,+ .......... 1,134,494
805,926 Interactive Investor International PLC*,** ..... 567,342
4,907 Intershop Communications A.G.*,** .............. 2,224,896
4,817,882
Life and Health Insurance - 0.4%
476,771 Prudential PLC** ............................... 6,986,865
Machinery - Electrical - 0.3%
63,939 Schneider Electric S.A.** ...................... 4,474,259
Medical - Biomedical and Genetic - 1.3%
281,780 Cambridge Antibody Technology
Group PLC*,** ............................... 12,754,944
298,174 Oxford GlycoSciences PLC*,** ................... 8,463,855
21,218,799
Medical - Drugs - 2.6%
352,842 AstraZeneca Group PLC** ........................ 16,479,067
1,885 AstraZeneca Group PLC (ADR)** .................. 87,653
8,524 Serono S.A. - Class B** ........................ 7,129,260
451,000 Shionogi & Company, Ltd.** ..................... 8,589,339
129,000 Takeda Chemical Industries, Ltd.** ............. 8,486,080
35,000 Yamanouchi Pharmaceutical Company, Ltd.** ...... 1,915,379
42,686,778
Medical Products - 0.2%
6,080 Synthes-Stratec, Inc.*,**,+ .................... 2,766,400
Metal Processors and Fabricators - 0.6%
487,273 Assa Abloy A.B. - Class B ...................... 9,833,545
Money Center Banks - 2.0%
1,743,295 Banco Bilbao Vizcaya Argentaria S.A.** ......... 26,152,768
203,525 DBS Group Holdings, Ltd.** ..................... 2,613,252
474,000 Fuji Bank, Ltd.** .............................. 3,610,950
32,376,970
Multimedia - 0.7%
99,002 Corus Entertainment, Inc. - Class B*,** ........ 2,639,305
9,630 News Corporation, Ltd. (ADR) ................... 524,835
328,524 Shaw Communications, Inc. - Class B** .......... 8,092,980
11,257,120
See Notes to Schedules of Investments.
30 Janus Aspen Series / June 30, 2000
<PAGE>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Oil Companies - Integrated - 2.9%
579,010 Petroleo Brasileiro S.A. (ADR) ................. $ 17,080,332
201,530 Total Fina Elf S.A.** .......................... 31,025,421
48,105,753
Petrochemicals - 0.6%
616,349 Reliance Industries, Ltd. ...................... 4,703,569
252,960 Reliance Industries, Ltd. (GDR)+ ............... 5,375,400
10,078,969
Property and Casualty Insurance - 0.1%
189,000 Tokio Marine & Fire Insurance
Company, Ltd.** ............................. 2,186,510
Publishing - Newspapers - 0.1%
154,000 Singapore Press Holdings, Ltd.** ............... 2,404,889
Recycling - 0.5%
295,504 Tomra Systems A.S.A ............................ 7,865,162
Retail - Diversified - 0.1%
33,000 Ito-Yokado Company, Ltd.** ..................... 1,989,953
Security Services - 0.8%
578,488 Securitas A.B. - Class B ....................... 12,333,901
Telecommunication Equipment - 12.6%
2,805 ADVA A.G. Optical Networking** ................. 1,599,861
181,735 Alcatel S.A.** ................................. 11,968,170
143,187 Alcatel S.A. (ADR)** ........................... 9,521,936
76,815 Comverse Technology, Inc.* ..................... 7,143,795
955,760 Datacraft Asia, Ltd.** ......................... 8,410,688
504,291 Nokia Oyj** .................................... 25,838,147
1,118,025 Nokia Oyj (ADR)** .............................. 55,831,373
42,309 Nortel Networks Corp.** ........................ 2,932,592
615,223 Nortel Networks Corp. - New York Shares** ...... 41,988,970
1,098,056 Telefonaktiebolaget L.M. Ericsson A.B. (ADR) ... 21,961,120
920,512 Telefonaktiebolaget L.M. Ericsson A.B
- Class B ................................... 18,314,261
205,510,913
Telecommunication Services - 4.5%
283,210 Amdocs, Ltd.* .................................. 21,736,368
179,405 China Unicom, Ltd. (ADR)*,** ................... 3,812,356
283,235 COLT Telecom Group PLC*,** ..................... 9,433,368
27,220 Dacom Corp. .................................... 3,942,669
95,786 Energis PLC*,** ................................ 3,593,358
84,360 FirstCom Corp.* ................................ 1,270,673
125,000 GT Group Telecom, Inc. - Class B
- New York Shares*,** ....................... 1,976,563
183,450 Infonet Services Corp. - Class B* .............. 2,189,934
142,951 NTL, Inc.* ..................................... 8,559,191
465,760 SK Telecom Company, Ltd. (ADR) ................. 16,912,910
73,427,390
Telephone - Integrated - 5.6%
545 Nippon Telegraph & Telephone Corp.** ........... 7,263,129
972,439 Telefonica S.A.*,** ............................ 20,973,810
62,200 Telefonica S.A. (ADR)*,** ...................... 3,984,688
834,875 Telefonos de Mexico S.A. (ADR) ................. 47,692,234
200,134 Versatel Telecom International N.V.*,** ........ 8,441,235
97,810 Viatel, Inc.* .................................. 2,793,698
91,148,794
Television - 0.2%
16,327 Canal Plus S.A.** .............................. 2,754,555
Tobacco - 0.3%
578 Japan Tobacco, Inc.** .......................... 5,086,109
Wire and Cable Products - 0.7%
521,000 Furukawa Electric Company, Ltd.** .............. $ 10,907,359
--------------------------------------------------------------------------------
Total Common Stock (cost $998,902,560) ....................... 1,265,329,078
--------------------------------------------------------------------------------
Corporate Bonds - 0%
Cable Television - 0%
$ 330,000 United Pan-Europe Communications N.V.
11.25%, senior notes, due 2/1/10**
(cost $327,600) ............................. 293,700
--------------------------------------------------------------------------------
Preferred Stock - 1.4%
Automotive - Cars and Light Trucks - 0.4%
2,367 Porsche A.G.** ................................. 6,466,593
Insurance Brokers - 0.4%
15,022 Marschollek, Lautenschlaeger und
Partner A.G.** .............................. 7,545,560
Multimedia - 0.1%
19,160 News Corporation, Ltd. (ADR) ................... 910,100
Telephone - Integrated - 0.5%
83,365 Telecomunicacoes Brasileiras S.A. (ADR) ........ 8,096,826
--------------------------------------------------------------------------------
Total Preferred Stock (cost $15,839,708) ..................... 23,019,079
--------------------------------------------------------------------------------
Repurchase Agreement - 2.6%
$ 42,600,000 Morgan Stanley Dean Witter & Co., 6.75%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $42,623,963 collateralized
by $48,607,703 in Fannie Mae, 0.65%-
10.25%, 1/1/06-6/1/30; $58,848,009 in
Freddie Mac, 0%-8.40%, 7/15/10-12/1/29;
with respective values of $16,031,495
and $27,436,987 (cost $42,600,000) .......... 42,600,000
--------------------------------------------------------------------------------
U.S. Government Agencies - 18.2%
Federal Home Loan Bank System:
25,000,000 5.82%, 7/14/00 .............................. 24,947,458
50,000,000 5.78%, 7/19/00 .............................. 49,855,500
25,000,000 5.94%, 7/21/00 .............................. 24,917,500
50,000,000 6.36%, 8/18/00 .............................. 49,576,000
50,000,000 5.87%, 9/8/00 ............................... 49,397,500
50,000,000 6.40%, 9/18/00 .............................. 49,308,000
50,000,000 6.02%, 9/22/00 .............................. 49,272,000
--------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $297,337,722) ........... 297,273,958
--------------------------------------------------------------------------------
Total Investments (total cost $1,355,007,590) - 99.5% ........ 1,628,515,815
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.5% 8,725,249
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 1,637,241,064
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 31
<PAGE>
Janus|Aspen International Growth Portfolio
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Australia 0.2% $ 2,287,458
Brazil 2.1% 34,045,856
Canada 5.7% 93,428,016
Egypt 0.2% 3,891,692
Finland 5.3% 86,092,846
France 6.3% 102,616,443
Germany 1.7% 27,684,386
Hong Kong 5.7% 93,244,421
India 0.6% 10,078,969
Israel 2.4% 38,374,308
Italy 0.1% 1,831,677
Japan 11.0% 178,483,423
Mexico 4.1% 67,417,321
Netherlands 4.9% 80,019,369
Norway 0.5% 7,865,162
Singapore 1.6% 26,208,788
South Africa 0.7% 11,395,796
South Korea 3.1% 50,198,297
Spain 3.1% 51,111,266
Sweden 4.1% 66,550,788
Switzerland 0.6% 9,895,660
Taiwan 1.6% 26,238,741
United Kingdom 9.1% 147,555,933
United States++ 25.3% 411,999,199
--------------------------------------------------------------------------------
Total 100.0% $ 1,628,515,815
++ Includes Short-Term Securities (4.4% excluding Short-Term Securities)
FORWARD CURRENCY CONTRACTS, OPEN AT JUNE 30, 2000
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
--------------------------------------------------------------------------------
British Pound 9/22/00 5,500,000 $ 8,357,800 $ 403,838
British Pound 9/29/00 17,500,000 26,596,500 1,186,500
British Pound 10/5/00 9,500,000 14,440,000 594,700
British Pound 1/26/01 800,000 1,219,040 5,360
Canadian Dollar 9/22/00 8,900,000 6,028,177 104,172
Canadian Dollar 11/17/00 6,100,000 4,138,118 (12,315)
Euro 9/8/00 13,200,000 12,650,880 (456,068)
Euro 9/22/00 8,800,000 8,440,960 51,128
Euro 9/29/00 26,300,000 25,237,480 230,125
Euro 11/17/00 14,200,000 13,664,660 (671,944)
Euro 1/19/01 3,000,000 2,897,400 (62,040)
Euro 1/26/01 18,300,000 17,679,630 135,343
Hong Kong Dollar
3/16/01 241,000,000 30,931,143 723
Hong Kong Dollar
5/7/01 169,000,000 21,694,480 (150,419)
Hong Kong Dollar
5/10/01 166,000,000 21,309,371 (67,134)
Hong Kong Dollar
6/27/01 60,400,000 7,754,028 (866)
Japanese Yen 9/1/00 1,400,000,000 13,368,882 (146,478)
Japanese Yen 9/8/00 4,720,000,000 45,128,123 509,105
Japanese Yen 9/14/00 700,000,000 6,699,853 43,040
Japanese Yen 9/29/00 160,000,000 1,535,487 22,449
Japanese Yen 10/5/00 405,000,000 3,891,058 110,918
Japanese Yen 11/17/00 850,700,000 8,239,329 (209,312)
Japanese Yen 1/19/01 35,000,000 342,990 (2,026)
Singapore Dollar 7/16/01 2,300,000 1,387,214 35,629
South Korean Won
1/26/01 420,000,000 375,402 (1,071)
South Korean Won
2/8/01 1,247,000,000 1,114,487 (955)
South Korean Won
2/15/01 1,750,000,000 1,563,896 349
Swiss Franc 9/8/00 1,900,000 1,171,899 5,666
Swiss Franc 10/5/00 950,000 587,362 (4,182)
--------------------------------------------------------------------------------
Total $ 308,445,649 $ 1,654,235
See Notes to Schedules of Investments.
32 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Worldwide Growth Portfolio
[PHOTO]
Helen Young Hayes
portfolio manager
[PHOTO]
Laurence Chang
portfolio manager
For the six months ended June 30, 2000, Janus Aspen Worldwide Growth Portfolio
gained 2.06% for its Institutional Shares, 1.82% for its Retirement Shares and
1.95% for its Service Shares. This compares with a (3.73%) decline posted by the
Morgan Stanley Capital International World Index.(1)
Judging by our modest gains, the environment for global equities proved
increasingly challenging. In the U.S., growing inflation concerns prompted the
Federal Reserve to raise short-term interest rates on three separate occasions.
Although the effects of monetary tightening were slow in coming, signs of an
economic pullback appeared late in the period. At the same time, European
markets struggled with uneven economic growth and weakness in the euro currency,
also fueling inflation fears. Meanwhile, the emerging markets of Asia and Latin
America fared better, bolstered by improving economic fundamentals. In contrast,
Japanese equities, particularly technology and telecommunications stocks, were
pressured by a growing budget deficit and lackluster economy.
Against this backdrop, the market volatility increased dramatically. During the
first half of the period, demand for a narrow group of technology,
telecommunications and other so-called "new economy" stocks drove a number of
indices to all-time highs. Beginning in March, a broad market sell-off took
hold, brought on largely by profit-taking in technology issues. Investors then
redirected their attention to "old economy" companies including pharmaceuticals
and financials. In reality, though, the markets seemed to have no clear
direction, experiencing abrupt swings on an almost daily basis.
Macroeconomic and market events aside, we stood by our strategy of identifying
individual companies that combine dominant franchises, compelling products and
services, and visionary management. In particular, we continued to pursue
opportunities with the potential to transcend short-term fluctuations, such as
optical networking. In this area, Canada's Nortel Networks remained one of our
favorites. The company has successfully transformed itself from a telecom
equipment supplier to a leading player in Internet infrastructure. As a dominant
force in photonics, which increases the capacity of existing fiber-optic lines,
Nortel's optical revenues are growing at an impressive 150% annually. Recent
acquisitions, focused on next-generation technology, could ensure that Nortel
maintains or even extends its franchise.
As the Internet becomes more of a marketing and procurement tool in the
business-to-business space, safeguarding communications and e-commerce
transactions takes on even greater importance. Israel's Check Point Software
Technologies, which has assumed a first-mover advantage in firewall software,
recently announced the introduction of new systems that secure a number of
integrated applications from one central location. Superior fundamentals pushed
Check Point substantially higher during the period despite the dramatic declines
of many Internet-related companies.
The rapid growth of the Internet is also driving demand for data storage.
U.S.-based EMC, the leader in high-end computer storage software, benefited from
its new line of network-attached storage systems aimed at the middle market.
EMC's technological edge is impressive and has resulted in substantial pricing
power over its competition.
These successes aside, market volatility took its toll on several of our
holdings. Japanese telecom giant NTT DoCoMo declined even as its wireless
Internet service experienced rapid growth. Sony, the Japanese consumer
electronics bellwether, fell significantly despite its dominance in the popular
video-game console business. In either case, profit-taking may have contributed
to much of the selling. At this writing, our research reflects improving
fundamentals, and, as a result, we have maintained both positions.
Going forward, we remain generally optimistic regarding the future of the global
economy. Prospects for Asia and emerging markets appear considerably brighter.
In the near term, however, lingering economic uncertainty, particularly with
regard to nascent inflationary pressures and the interest rate environment
globally, will likely lead to further volatility. The same goes for the U.S.,
even though it may be nearing the end of its tightening cycle. Therefore, we
have let our cash position build slightly, allowing us to revisit companies that
provide compelling buying opportunities. Still, we will stay focused on the
fundamentals of individual companies, carefully watching valuation levels and
investing in businesses we believe can generate strong results in any economic
environment.
In closing, we would like to thank you for your investment and confidence in
Janus Aspen Worldwide Growth Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Equities 86.3% 90.4%
Foreign 58.8% 61.2%
Top 10 Equities 30.4% 34.3%
Number of Stocks 146 130
Cash, Cash Equivalents
& Fixed-Income Securities 13.7% 9.6%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends. Net dividends reinvested are the
dividends that remain to be reinvested after foreign tax obligations have
been met. Such obligations vary from country to country.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 33
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 48.85%
5 Year 31.84%
From Inception 27.65%
--------------------------------------------------------------------------------
Morgan Stanley Capital International World Index(2)
1 Year 12.19%
5 Year 17.07%
From Inception Date of Institutional Shares 15.11%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 48.09%
5 Year 31.01%
From Portfolio Inception 26.77%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 47.92%
5 Year 31.50%
From Portfolio Inception 27.31%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or 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 waived a portion of the Portfolio's expenses
for certain periods. 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.
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 85.3%
Aerospace and Defense - 0.1%
7,580,000 Finmeccanica S.p.A.*,** ........................ $ 10,419,594
Agricultural Biotechnology - 0.6%
991,440 Pharmacia Corp. ................................ 51,245,055
Applications Software - 0.5%
222,485 Microsoft Corp.* ............................... 17,798,800
3,560,125 Sage Group PLC** ............................... 28,619,165
46,417,965
Audio and Video Products - 1.3%
1,240,800 Sony Corp.** ................................... 116,103,451
Broadcast Services and Programming - 2.9%
4,083,320 AT&T Corp./Liberty Media Group - Class A* ...... 99,020,510
463,570 Clear Channel Communications, Inc.* ............ 34,767,750
575,713 EM.TV & Merchandising A.G.** ................... 34,050,512
1,439,960 Grupo Televisa S.A. (GDR)* ..................... 99,267,243
267,106,015
Cable Television - 1.2%
1,379,760 Comcast Corp. - Special Class A* ............... 55,880,280
187,455 Globo Cabo S.A. (ADR) .......................... 2,600,938
129,480 Le Groupe Videotron ltee.** .................... 3,006,143
941,834 Rogers Communications, Inc. - Class B*,** ...... 26,665,814
209,740 Rogers Communications, Inc. - Class B
- New York Shares*,** ....................... 5,977,590
3,614,691 Telewest Communications PLC*,** ................ 12,628,278
106,759,043
Cellular Telecommunications - 11.3%
8,598,000 China Mobile, Ltd.*,** ......................... 75,831,943
1,967,180 China Telecom, Ltd. (ADR)*,** .................. 349,789,194
334,429 Egyptian Mobile Service Co.* ................... 10,884,066
10,629 NTT DoCoMo, Inc.** ............................. 288,325,102
64,421,001 Vodafone AirTouch PLC** ........................ 257,724,727
1,129,825 Vodafone AirTouch PLC (ADR)** .................. 46,817,123
1,029,372,155
Commercial Services - 0.3%
639,435 Paychex, Inc. .................................. $ 26,856,270
Computer Data Security - 1.6%
533,225 Check Point Software Technologies, Ltd.* ....... 112,910,394
191,645 VeriSign, Inc.* ................................ 33,825,343
146,735,737
Computer Services - 1.1%
131,228 Atos S.A.*,** .................................. 12,327,784
161,445 Cap Gemini S.A.** .............................. 28,553,110
2,149,764 Getronics N.V.** ............................... 33,280,953
1,174,742 Logica PLC** ................................... 27,814,832
101,976,679
Computer Software - 0.3%
78,063 Software A.G.** ................................ 7,221,127
731,101 Tietoenator Oyj** .............................. 24,493,847
31,714,974
Computers - Integrated Systems - 1.7%
521,949 ASM Lithography Holding N.V.*,** ............... 22,525,062
205,635 ASM Lithography Holding N.V. (ADR)*,** ......... 9,073,644
8,803,100 Dimension Data Holdings, Ltd. .................. 72,842,238
963,000 Fujitsu, Ltd.** ................................ 33,404,156
1,034,991 SEMA Group PLC** ............................... 14,728,605
152,573,705
Computers - Memory Devices - 1.3%
1,275,080 EMC Corp.* ..................................... 98,101,468
177,390 VERITAS Software Corp.* ........................ 20,047,842
118,149,310
Computers - Micro - 1.0%
15,592,000 Legend Holdings, Ltd.** ........................ 15,101,873
818,740 Sun Microsystems, Inc.* ........................ 74,454,169
89,556,042
See Notes to Schedules of Investments.
34 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Worldwide Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Data Processing and Management - 0.2%
47,856 Autonomy Corp. PLC*,** ......................... $ 5,742,720
85,585 Autonomy Corp. PLC (ADR)*,** ................... 10,526,955
16,269,675
Diversified Operations - 1.9%
12,700,000 Citic Pacific, Ltd.** .......................... 66,473,099
1,687,155 General Electric Co. ........................... 89,419,215
2,473,907 Hays PLC** ..................................... 13,843,301
169,735,615
E-Commerce - 0.2%
474,720 Amazon.com, Inc.* .............................. 17,238,270
Electric Products - 1.7%
456,110 Samsung Electronics** .......................... 150,947,412
Electronic Components - 4.9%
50,654 Celestica, Inc.*,** ............................ 2,464,890
1,303,315 Celestica, Inc. - New York Shares*,** .......... 64,677,007
129,520 Flextronics International, Ltd.* ............... 8,896,405
2,629,971 Koninklijke (Royal) Philips Electronics N.V.** . 124,540,427
1,584,774 Koninklijke (Royal) Philips Electronics N.V.
- New York Shares** ......................... 75,276,765
267,550 Lattice Semiconductor Corp.* ................... 18,494,394
400,000 Murata Manufacturing Company, Ltd.** ........... 57,541,714
3,175,000 NEC Corp.** .................................... 99,930,052
451,821,654
Electronic Components - Semiconductors - 2.1%
200,360 Applied Materials, Inc.* ....................... 18,157,625
569,585 Conexant Systems, Inc.* ........................ 27,696,071
38,900 Rohm Company, Ltd.** ........................... 11,397,758
1,104,368 STMicroelectronics N.V.** ...................... 69,869,911
156,105 STMicroelectronics N.V.
- New York Shares** ......................... 10,019,990
820,580 Texas Instruments, Inc. ........................ 56,363,589
193,504,944
Electronic Connectors - 0.1%
58,000 Hirose Electric Company, Ltd.** ................ 9,050,722
Enterprise Software and Services - 0.3%
305,830 BEA Systems, Inc.* ............................. 15,119,471
160,540 i2 Technologies, Inc.* ......................... 16,738,803
31,858,274
Fiber Optics - 1.9%
276,605 Corning, Inc. .................................. 74,648,774
49,220 E-Tek Dynamics, Inc.* .......................... 12,984,851
727,910 JDS Uniphase Corp.* ............................ 87,258,211
174,891,836
Finance - Credit Card - 0.6%
1,075,725 American Express Co. ........................... 56,072,166
Food - Catering - 0.3%
1,902,740 Compass Group PLC** ............................ 25,075,258
Food - Dairy Products - 0.1%
264,029 Koninklijke Numico N.V.** ...................... 12,578,836
Food - Diversified - 0.2%
447,442 Unilever N.V.** ................................ 20,609,328
Human Resources - 0.4%
1,531,133 Capita Group PLC** ............................. 37,481,773
Instruments - Scientific - 0.2%
302,720 PE Corp./PE Biosystems Group ................... 19,941,680
Internet Content - 0.4%
284,300 Softbank Corp.** ............................... $ 38,694,345
Internet Software - 0.7%
731,610 America Online, Inc.* .......................... 38,592,428
28,394 Intershop Communications A.G.*,** .............. 12,874,197
257,700 Phone.com, Inc.* ............................... 16,782,713
68,249,338
Life and Health Insurance - 0.7%
4,083,580 Prudential PLC** ............................... 59,843,035
Machinery - Electrical - 0.3%
387,319 Schneider Electric S.A.** ...................... 27,103,421
Medical - Biomedical and Genetic - 0.6%
133,830 Genentech, Inc.* ............................... 23,018,760
74,440 Human Genome Sciences, Inc. .................... 9,928,435
25,570 Incyte Genomics, Inc. .......................... 2,101,534
101,215 Incyte Genomics, Inc.*,ss.,+ ................... 7,798,695
12,905 Millennium Pharmaceuticals, Inc.* .............. 1,443,747
124,245 PE Corp./Celera Genomics Group ................. 11,616,908
55,908,079
Medical - Drugs - 3.8%
1,800,168 AstraZeneca Group PLC** ........................ 84,074,713
14,695 AstraZeneca Group PLC (ADR)** .................. 683,318
2,607,704 Pfizer, Inc. ................................... 125,169,792
399,385 Schering-Plough Corp. .......................... 20,168,942
309,320 Sepracor, Inc.* ................................ 37,311,725
949,000 Takeda Chemical Industries, Ltd.** ............. 62,428,601
317,000 Yamanouchi Pharmaceutical Company, Ltd.** ...... 17,347,863
347,184,954
Medical Instruments - 0.7%
1,364,140 Medtronic, Inc. ................................ 67,951,224
Medical Products - 1.2%
798,115 Johnson & Johnson .............................. 81,307,966
51,851 Synthes-Stratec, Inc.*,+ ....................... 23,592,205
104,900,171
Metal Processors and Fabricators - 0.8%
3,505,541 Assa Abloy A.B. - Class B ...................... 70,744,523
Money Center Banks - 2.4%
9,770,430 Banco Bilbao Vizcaya Argentaria S.A.** ......... 146,575,188
867,885 Chase Manhattan Corp. .......................... 39,976,953
4,205,000 Fuji Bank, Ltd.** .............................. 32,033,854
218,585,995
Multimedia - 3.9%
63,360 News Corporation, Ltd. (ADR) ................... 3,453,120
1,870,517 Shaw Communications, Inc. - Class B** .......... 46,078,999
2,712,145 Time Warner, Inc. .............................. 206,123,020
1,536,570 Viacom, Inc. - Class B* ........................ 104,774,867
360,430,006
Networking Products - 4.1%
743,610 3Com Corp.* .................................... 42,850,526
5,198,535 Cisco Systems, Inc.* ........................... 330,431,881
373,282,407
Oil Companies - Integrated - 2.3%
3,187,210 Petroleo Brasileiro S.A. (ADR) ................. 94,020,145
760,302 Total Fina Elf S.A.** .......................... 117,048,032
211,068,177
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 35
<PAGE>
Janus|Aspen Worldwide Growth Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Petrochemicals - 0.6%
5,958,180 Reliance Industries, Ltd. ...................... $ 45,468,903
393,795 Reliance Industries, Ltd. (GDR)+ ............... 8,368,144
53,837,047
Pipelines - 0.4%
561,590 Enron Corp. .................................... 36,222,555
Property and Casualty Insurance - 0.2%
1,643,000 Tokio Marine & Fire Insurance
Company, Ltd.** ............................. 19,007,593
Radio - 0.2%
190,300 AMFM, Inc.* .................................... 13,130,700
154,760 Infinity Broadcasting Corp. - Class A* ......... 5,639,068
18,769,768
Retail - Apparel and Shoe - 0.2%
698,965 Gap, Inc. ...................................... 21,842,656
Retail - Diversified - 0.2%
271,000 Ito-Yokado Company, Ltd.** ..................... 16,341,733
Retail - Office Supplies - 0.1%
508,940 Staples, Inc.* ................................. 7,824,953
Security Services - 0.7%
3,070,394 Securitas A.B. - Class B ....................... 65,463,651
Telecommunication Equipment - 9.9%
1,165,155 Alcatel S.A.** ................................. 76,731,357
367,019 Alcatel S.A. (ADR)** ........................... 24,406,763
468,090 Comverse Technology, Inc.* ..................... 43,532,370
4,798,909 Nokia Oyj** .................................... 245,879,695
3,802,560 Nokia Oyj (ADR)** .............................. 189,890,340
2,363,640 Nortel Networks Corp. - New York Shares** ...... 161,318,430
137,800 QUALCOMM, Inc.* ................................ 8,268,000
3,468,508 Telefonaktiebolaget L.M. Ericsson A.B. (ADR) ... 69,370,160
4,335,688 Telefonaktiebolaget L.M. Ericsson A.B
- Class B ................................... 86,261,689
905,658,804
Telecommunication Services - 4.4%
1,251,515 Amdocs, Ltd.* .................................. 96,053,776
186,578 Carrier 1 International S.A.* .................. 10,552,245
1,017,155 China Unicom, Ltd. (ADR)*,** ................... 21,614,544
2,467,131 COLT Telecom Group PLC*,** ..................... 82,169,772
65,150 Dacom Corp.** .................................. 9,436,624
1,294,866 Energis PLC*,** ................................ 48,576,175
1,535,670 Infonet Services Corp. - Class B* .............. 18,332,061
310,635 Level 3 Communications, Inc.* .................. 27,335,880
393,413 NTL, Inc.* ..................................... 23,555,603
1,665,790 SK Telecom Company, Ltd. (ADR)** ............... 60,488,999
398,115,679
Telephone - Integrated - 5.0%
242,675 AT&T Corp. ..................................... 7,674,597
1,157 Nippon Telegraph & Telephone Corp.** ........... 15,419,157
8,733,004 Telefonica S.A.*,** ............................ 188,355,635
508,916 Telefonica S.A. (ADR)*,** ...................... 32,602,431
3,558,810 Telefonos de Mexico S.A. (ADR) ................. 203,297,021
313,130 Viatel, Inc.* .................................. 8,943,776
456,292,617
Television - 0.2%
101,843 Canal Plus S.A.** .............................. 17,182,102
Wire and Cable Products - 1.0%
4,356,000 Furukawa Electric Company, Ltd.** .............. 91,194,732
--------------------------------------------------------------------------------
Total Common Stock (cost $5,400,069,132) ..................... 7,793,763,003
--------------------------------------------------------------------------------
Corporate Bond - 0%
Cable Television - 0%
$ 2,750,000 United Pan-Europe Communications N.V.
11.25%, senior notes, due 2/1/10
(cost $2,729,994)** ......................... $ 2,447,500
--------------------------------------------------------------------------------
Preferred Stock - 1.0%
Automotive - Cars and Light Trucks - 0.3%
11,997 Porsche A.G.** ................................. 32,775,548
Multimedia - 0.1%
135,785 News Corporation, Ltd. (ADR) ................... 6,449,787
Telephone - Integrated - 0.6%
561,295 Telecomunicacoes Brasileiras S.A. (ADR) ........ 54,515,777
--------------------------------------------------------------------------------
Total Preferred Stock (cost $72,285,337 ) .................... 93,741,112
--------------------------------------------------------------------------------
Repurchase Agreement - 0.2%
$ 20,100,000 Morgan Stanley Dean Witter & Co., 6.75%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $20,111,390 collateralized
by $22,934,620 in Fannie Mae, 0.65%-
10.25%, 1/1/06-6/1/30; $27,766,314 in
Freddie Mac, 0%-8.40%, 7/15/10-
12/1/29; with respective values of
$7,564,156 and $12,945,621
(cost $20,100,000) .......................... 20,100,000
--------------------------------------------------------------------------------
Short-Term Corporate Notes - 4.4%
240,000,000 Associates Corp. N.A.
6.85%, 7/3/00 ............................... 239,908,667
160,000,000 UBS Financial Corp.
7.10%, 7/5/00 ............................... 159,873,778
--------------------------------------------------------------------------------
Total Short-Term Corporate Notes
(amortized cost $399,782,445) ............................. 399,782,445
--------------------------------------------------------------------------------
U.S. Government Agencies - 8.6%
Fannie Mae:
50,000,000 6.41%, 8/21/00 .............................. 49,545,958
50,000,000 6.40%, 10/5/00 .............................. 49,129,222
Federal Home Loan Bank System:
50,000,000 5.78%, 7/19/00 .............................. 49,855,500
60,000,000 5.94%, 7/21/00 .............................. 59,802,000
30,000,000 5.97%, 7/28/00 .............................. 29,865,675
50,000,000 5.84%, 8/14/00 .............................. 49,643,111
50,000,000 5.92%, 8/18/00 .............................. 49,605,333
50,000,000 5.86%, 8/31/00 .............................. 49,449,222
50,000,000 5.87%, 9/8/00 ............................... 49,381,194
50,000,000 6.45%, 9/13/00 .............................. 49,335,083
50,000,000 5.89%, 9/15/00 .............................. 49,318,639
50,000,000 6.40%, 9/18/00 .............................. 49,290,222
50,000,000 6.46%, 9/27/00 .............................. 49,209,056
50,000,000 6.53%, 11/10/00 ............................. 48,802,361
Freddie Mac:
50,000,000 6.42%, 7/7/00 ............................... 49,946,500
50,000,000 6.40%, 10/6/00 .............................. 49,120,222
--------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $781,515,925) ........... 781,299,298
--------------------------------------------------------------------------------
Total Investments (total cost $6,676,482,833) - 99.5% ........ 9,091,133,358
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.5% 41,041,261
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 9,132,174,619
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
36 Janus Aspen Series / June 30, 2000
<PAGE>
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Australia 0.1% $ 9,902,907
Brazil 1.7% 151,136,860
Canada 3.4% 310,188,873
Egypt 0.1% 10,884,066
Finland 5.1% 460,263,882
France 4.2% 383,242,470
Germany 1.0% 86,921,384
Hong Kong 5.8% 528,810,653
India 0.6% 53,837,047
Israel 1.3% 112,910,394
Italy 0.1% 10,419,594
Japan 10.0% 908,220,833
Mexico 3.3% 302,564,264
Netherlands 3.3% 300,332,515
South Africa 0.8% 72,842,238
South Korea 2.4% 220,873,035
Spain 4.0% 367,533,254
Sweden 3.2% 291,840,023
Switzerland 0.4% 34,144,450
United Kingdom 8.3% 756,349,750
United States++ 40.9% 3,717,914,866
--------------------------------------------------------------------------------
Total 100.0% $ 9,091,133,358
++ Includes Short-Term Securities (27.7% excluding Short-Term Securities)
FORWARD CURRENCY CONTRACTS, OPEN AT JUNE 30, 2000
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
--------------------------------------------------------------------------------
British Pound 9/8/00 43,700,000 $ 66,389,040 $ 2,680,599
British Pound 9/22/00 27,000,000 41,029,200 1,982,475
British Pound 9/29/00 37,000,000 56,232,600 2,508,600
British Pound 1/26/01 62,900,000 95,847,020 421,430
Canadian Dollar 9/22/00 10,400,000 7,044,161 121,729
Canadian Dollar 11/17/00 10,800,000 7,326,504 (21,804)
Euro 9/8/00 18,500,000 17,730,400 84,760
Euro 9/22/00 53,800,000 51,604,960 312,578
Euro 9/29/00 150,100,000 144,035,960 1,313,375
Euro 10/5/00 36,200,000 34,748,380 39,820
Euro 11/17/00 75,000,000 72,172,500 (3,549,000)
Euro 1/19/01 26,300,000 25,400,540 (543,884)
Euro 1/26/01 40,300,000 38,933,830 297,830
Hong Kong Dollar
3/16/01 1,116,500,000 143,297,183 1,215
Hong Kong Dollar
5/7/01 1,047,000,000 134,403,081 (1,055,959)
Hong Kong Dollar
5/10/01 1,046,000,000 134,274,711 (568,705)
Hong Kong Dollar
6/27/01 427,000,000 54,817,382 (6,686)
Japanese Yen 9/1/00 11,900,000,000 113,635,496 (1,245,064)
Japanese Yen 9/8/00 14,860,000,000 142,077,098 1,547,139
Japanese Yen 9/14/00 3,900,000,000 37,327,754 239,795
Japanese Yen 9/29/00 2,300,000,000 22,072,619 322,707
Japanese Yen 10/5/00 550,000,000 5,284,153 150,630
Japanese Yen 11/17/00 6,050,000,000 58,596,379 (1,488,583)
Japanese Yen 1/19/01 2,700,000,000 26,459,252 (156,281)
South Korean Won
1/26/01 1,700,000,000 1,519,485 (4,334)
South Korean Won
2/8/01 4,960,000,000 4,432,925 (3,806)
South Korean Won
2/15/01 7,000,000,000 6,255,586 1,398
South Korean Won
7/16/01 2,750,000,000 2,456,455 (160,961)
--------------------------------------------------------------------------------
Total $1,545,404,654 $ 3,221,013
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 37
<PAGE>
Janus|Aspen Global Life Sciences Portfolio
[PHOTO]
Thomas Malley
portfolio manager
From its inception on January 18, 2000, through June 30, 2000, Janus Aspen
Global Life Sciences Portfolio declined (13.70%) for its Institutional Shares
and (13.80%) for its Service Shares, outpaced by its benchmark, the S&P 500
Index, which returned 0.49%.(1)
The final month of the first quarter was indeed an interesting time to open a
Portfolio that focuses primarily on biotechnology, pharmaceuticals and medical
devices. After a strong start to the year, much of the biotech sector dropped
dramatically in early March after President Clinton recommended that the results
of the human genome-mapping project be made available to the public free of
charge. Such a move would undermine the leading genome mapping companies'
efforts to patent each gene as it was deciphered, which could erode those
companies' future prospects. Meanwhile, pharmaceuticals rebounded somewhat in a
flight to safety after the Nasdaq Composite Index performed a free-fall from its
all-time high. Finally, the Federal Reserve put its own spin on the markets with
a quarter-point rate hike in mid-March and a half-point increase in May.
By the end of June, many of our holdings had recovered from their lows, boosted
by news that a complete schematic of the human genetic code was nearly finished.
Further brightening the picture was the Fed's decision to take a breather after
six rate increases over the previous year, although it hinted that an August
increase was still a possibility. Higher oil prices also raised the specter of
inflation.
Traditionally, pharmaceutical companies are viewed as a defensive position in
uncertain markets. In this Portfolio, we certainly aim to benefit from the
stability of established drugmakers, but we're also very excited about the
possibilities within the biotechnology sector. Over the next five years, we
expect biotech companies to create much of the value in the life sciences field,
and that's where we believe our commitment to digging beyond the headlines and
press releases will pay off.
One biotech company with strong potential value is Sepracor, which alters the
essential compounds within existing drugs to generate improved medications. Upon
approval by the Food & Drug Administration (FDA), this company either licenses
the new-and-improved compounds to the original patent holder or markets the
drugs itself. Currently, Sepracor's first stand-alone product Xopenex, a
modified version of two previously patented asthma drugs, is on the market.
Also, an improved version of Schering-Plough's allergy drug Claritin is under
review at the FDA. Along with a group of compounds in late-stage trials, this
company has a deep pipeline that should drive rapid growth over the next decade.
Within the realm of genomics, we anticipate strong returns from PE Biosystems
Group. PE Biosystems builds a variety of machines for sequencing DNA and
analyzing the proteins within the genes. We feel it is the best-positioned
genomics tool and equipment company and that its growth will accelerate as the
gene sequence mapping is completed and genetic analysis becomes more common.
One of our largest holdings is drugmaker Pfizer, which recently completed its
merger with Warner Lambert. Cost savings created by the union are already ahead
of schedule, and we expect to see some real synergies in 2001. Ultimately, we
believe the company is well-diversified and positioned for growth rates of 20% a
year. Powering its current growth is Lipitor, a cholesterol treatment, and
Norvasc, a hypertension medication. However, the company's pipeline includes
potential products for treating diabetes, schizophrenia and chronic pain.
Through this initial period, our goal has been to establish positions in a
select group of companies we believe have significant future potential. The
Portfolio is currently balanced between pharmaceuticals and biotechnology, with
a smaller weighting in medical devices. Moving ahead, we will continue to invest
in biotechnology and attempt to size our positions appropriately relative to
risk level.
We've also been exploring the international life science market, which we
believe has a number of untapped opportunities. We're expecting the lag between
European and U.S. opportunities to close, and we may see volatility emerge as
interest in European life sciences companies picks up. Meanwhile, it's a good
time to get over there and start learning things ahead of the curve.
Thank you for your investment in Janus Aspen Global Life Sciences Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000
--------------------------------------------------------------------------------
Equities 61.2%
Foreign 4.9%
Top 10 Equities 26.4%
Number of Stocks 57
Cash & Cash Equivalents 38.8%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
38 Janus Aspen Series / June 30, 2000
<PAGE>
CUMULATIVE TOTAL RETURN(1)
For the Period Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 1/18/00)
From Inception (13.70%)
--------------------------------------------------------------------------------
S&P 500 Index
From Portfolio Inception 0.49%
--------------------------------------------------------------------------------
Service Shares (Inception Date 1/18/00)
From Inception (13.80%)
--------------------------------------------------------------------------------
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
(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 (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 61.2%
Agricultural Biotechnology - 3.4%
9,705 Pharmacia Corp. ................................ $ 501,627
Chemicals - Specialty - 1.0%
3,260 Symyx Technologies, Inc.* ...................... 138,907
Cosmetics and Toiletries - 1.8%
4,320 Colgate-Palmolive Co. .......................... 258,660
Diagnostic Equipment - 0.5%
1,215 Cytyc Corp.* ................................... 64,851
Drug Delivery Systems - 4.9%
6,090 ALZA Corp.* .................................... 360,071
4,520 Andrx Corp.* ................................... 288,927
1,820 Emisphere Technologies, Inc.* .................. 77,549
726,547
Health Care Cost Containment - 0.7%
2,075 MedQuist, Inc.* ................................ 105,825
Instruments - Scientific - 3.5%
5,845 PE Corp./PE Biosystems Group ................... 385,039
995 Waters Corp.* .................................. 124,188
509,227
Internet Software - 0.4%
6,500 e-MedSoft.com* ................................. 52,000
Life and Health Insurance - 2.1%
3,320 CIGNA Corp. .................................... 310,420
Medical - Biomedical and Genetic - 7.7%
1,610 Alexion Pharmaceuticals, Inc.* ................. $ 115,115
3,595 Amgen, Inc.* ................................... 252,549
10,975 Cellegy Pharmaceuticals, Inc.* ................. 90,544
2,190 Genzyme Corp.* ................................. 130,168
2,985 Immunomedics, Inc.* ............................ 73,132
625 Immunomedics, Inc.*,ss ......................... 15,312
1,095 Incyte Genomics, Inc.* ......................... 89,995
1,705 Invitrogen Corp.* .............................. 128,221
1,035 Millennium Pharmaceuticals, Inc.* .............. 115,791
714 Oxford GlycoSciences PLC* ...................... 20,267
635 Protein Design Labs, Inc.* ..................... 104,745
1,135,839
Medical - Drugs - 20.5%
4,505 Abbott Laboratories ............................ 200,754
8,210 American Home Products Corp. ................... 482,338
1,385 AstraZeneca Group PLC (ADR) .................... 64,403
2,846 Aventis S.A .................................... 208,567
795 Biovail Corp. - New York Shares* ............... 44,073
2,205 Celgene Corp.* ................................. 129,819
1,800 Forest Laboratories, Inc.* ..................... 181,800
280 Glaxo Wellcome PLC (ADR) ....................... 16,188
3,805 MedImmune, Inc.* ............................... 281,570
825 Merck & Co., Inc. .............................. 63,216
620 OSI Pharmaceuticals, Inc.* ..................... 17,864
10,630 Pfizer, Inc. ................................... 510,240
1,890 Priority Healthcare Corp.* ..................... 140,451
1,040 Schering-Plough Corp. .......................... 52,520
2,155 Sepracor, Inc.* ................................ 259,947
4 Serono S.A. - Class B .......................... 3,346
2,761 Shire Pharmaceuticals Group PLC* ............... 47,943
38,874 SkyePharma PLC* ................................ 50,024
2,000 Takeda Chemical Industries, Ltd. ............... 131,567
2,350 Teva Pharmaceutical Industries, Ltd. (ADR) ..... 130,278
3,016,908
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 39
<PAGE>
Janus|Aspen Global Life Sciences Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Medical Information Systems - 0.7%
4,720 Allscripts, Inc.* .............................. $ 108,560
Medical Instruments - 3.5%
5,120 Medtronic, Inc. ................................ 255,040
5,645 St. Jude Medical, Inc.* ........................ 258,964
514,004
Medical Products - 1.9%
645 Johnson & Johnson .............................. 65,709
1,770 MiniMed, Inc.* ................................. 208,860
274,569
Optical Supplies - 3.4%
6,760 Allergan, Inc. ................................. 503,620
Therapeutics - 4.4%
1,910 CV Therapeutics, Inc.* ......................... 132,387
1,855 Gilead Sciences, Inc.* ......................... 131,937
4,500 ILEX Oncology, Inc.* ........................... 158,625
355 NaPro BioTherapeutics, Inc.* ................... 2,640
2,400 Neurogen Corp.* ................................ 69,300
1,025 Trimeris, Inc.* ................................ 71,686
675 United Therapeutics Corp.* ..................... 73,153
639,728
Wireless Equipment - 0.8%
9,575 Data Critical Corp.* ........................... 124,475
--------------------------------------------------------------------------------
Total Common Stock (cost $8,381,817) ......................... 8,985,767
--------------------------------------------------------------------------------
Repurchase Agreements - 40.1%
$ 2,900,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $2,901,655 collateralized
by $1,479,046 in Fannie Mae, 5.9142%-
7.6562%, 2/25/24-4/18/28; $765,586 in
Freddie Mac, 7.1512%-7.5875%, 2/15/24-
11/15/28; $2,160,649 in Ginnie Mae,
6.40%-7.50%, 4/20/22-2/16/30; with
respective values of $726,311, $339,383
and $1,892,306 .............................. 2,900,000
3,000,000 Morgan Stanley Dean Witter & Co., 6.80%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $3,001,700 collateralized
by $3,423,078 in Fannie Mae, 0.65%-
10.25%, 1/1/06-6/1/30; $4,144,226 in
Freddie Mac, 0%-8.40%, 7/15/10-12/1/29;
with respective values of $1,128,979
and $1,932,182 .............................. 3,000,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $5,900,000) ................ 5,900,000
--------------------------------------------------------------------------------
U.S. Government Agency - 3.4%
Federal Farm Credit Bank
500,000 6.41%, 7/31/00
(amortized cost $497,329) ................... 497,329
--------------------------------------------------------------------------------
Total Investments (total cost $14,779,146) - 104.7% .......... 15,383,096
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (4.7%) (686,262)
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 14,696,834
--------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Canada 0.3% $ 44,073
France 1.4% 208,567
Israel 0.8% 130,278
Japan 0.9% 131,567
Switzerland -- 3,346
United Kingdom 1.3% 198,825
United States++ 95.3% 14,666,440
--------------------------------------------------------------------------------
Total 100.0% $ 15,383,096
++ Includes Short-Term Securities (53.8% excluding Short-Term Securities)
See Notes to Schedules of Investments.
40 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Global Technology Portfolio
[PHOTO]
Mike Lu
portfolio manager
I would like to express my deepest appreciation to the many investors who helped
launch Janus Aspen Global Technology Portfolio. Since its inception on January
18, 2000, the Portfolio declined (1.70%) for its Institutional Shares and
(1.80%) for its Service Shares. In comparison, our benchmark, the S&P 500 Index,
returned 0.49% for the same period ended June 30, 2000.(1)
Although our charter is flexible, the Portfolio reflects the rigorous analytical
and research standards that are hallmarks of the Janus investment style. Because
technology is such a rapidly evolving and far-reaching driver of the global
economy, we do everything in our power to stay on top of new developments. We
read technical journals, attend trade shows, examine academic research and, of
course, place a huge emphasis on hands-on research. In particular, I spend more
than half my time on the road, talking face to face with our companies'
managements, competitors and suppliers, as well as the end users of their
technology. Most important, we insist on investing in companies that are
stretching and breaking existing technological boundaries. This has led us to
focus our efforts on what we call technology enablers - primarily leading or
emerging franchises in the areas of networking, telecommunications and Internet
enablement.
That said, the period proved challenging in that emotion ruled the day. The
first half was driven by euphoria, the second half by fear. Many Internet
stocks, particularly the consumer-oriented dot-coms, were hurt the most. Still,
fundamental research of the Portfolio's top holdings, primarily companies
providing the innovative hardware and software for the technological revolution,
continued to indicate strengthening segment dynamics and business models.
Two of our favorites, Teradyne and Applied Materials, are leading producers of
machinery needed for semiconductor chip production. Applied Materials
specializes in front-end production equipment, while Teradyne focuses on the
back-end. Both are examples of "enabling enablers," meaning their systems allow
chip manufacturers to produce greater quantities of higher-performance
components at lower cost, improving their time-to-market schedules and better
positioning them for producing next-generation semiconductor designs.
Unfortunately, profit taking related to the broad-based tech sell-off and
negative reports suggesting decelerating growth in the semiconductor industry
took their toll. However, we believe each company's business remains solid as
evidenced by enduring strong demand. Our ongoing research closely monitors
industry capital expenditure plans, and the continuing demand-supply
disequilibrium has only reinforced our confidence.
The period's dramatic price swings also gave us the opportunity to buy some
promising Asian companies at attractive prices, namely South Korea's Samsung
Electronics and Japan's Furukawa Electric. Although most investors recognize
Samsung as a producer of dynamic random-access memory, that business actually
makes up less than a quarter of overall revenues. And while demand for the
company's volatile and nonvolatile memory should remain robust, we particularly
like the prospects for its burgeoning, yet underappreciated, wireless
telecommunications business. In the fiber-optic networking space, Furukawa,
which designs and produces optical components that increase network capacity,
benefited from continued buildouts as carriers struggle to keep up with the data
demands created by booming global Internet use. Through our regular dialogues
with leading fiber-optic systems vendors as well as telecom carriers, we remain
convinced that demand for optical components has nowhere to go but up.
As Internet usage grows exponentially, solutions consultant Sapient continued to
perform well. Early in the period, the company declined after reporting earnings
that did not meet the market's overly aggressive "whisper" expectations. Since
then, Sapient, with its fundamentals solidly on track, recorded strong
first-quarter results. The IT consulting domain is only as scalable as the
talents of its consultants, and Sapient remains at the head of the pack in terms
of employee quality and retention. Furthermore, we believe demand for Sapient's
consulting services will persist as "brick and mortar" firms worldwide
increasingly leverage the Internet and intranets to enhance productivity, cut
costs and pursue new revenue opportunities.
While interest rate concerns and increasing sensitivity to "new economy"
valuations will likely fuel market volatility for the foreseeable future, we
will not deviate from our long-term, diversified approach to technology
investing. We will stay focused on finding tomorrow's dominant franchises.
Sometimes that means uncovering small emerging companies, but just as often it
means singling out market leaders capable of defending their position. Either
way, it means rolling up our sleeves and getting to know our companies better
than anyone. Fortunately, that's what we love to do.
Once again, thank you for your investment in Janus Aspen Global Technology
Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000
--------------------------------------------------------------------------------
Equities 72.4%
Foreign 34.0%
Top 10 Equities 20.3%
Number of Stocks 126
Cash, Cash Equivalents
& Fixed-Income Securities 27.6%
--------------------------------------------------------------------------------
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 41
<PAGE>
CUMULATIVE TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 1/18/00)
From Inception (1.70%)
--------------------------------------------------------------------------------
S&P 500 Index
From Portfolio Inception 0.49%
--------------------------------------------------------------------------------
Service Shares (Inception Date 1/18/00)
From Inception (1.80%)
--------------------------------------------------------------------------------
The Portfolio's returns may have been positively impacted by buying technology
companies in a period favorable for these stocks.
This Portfolio may invest in initial public offerings (IPO's). IPO's and other
investment techniques may have a magnified performance impact on a portfolio
with a small asset base. The Portfolio may not experience similar performance as
its assets grow.
(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. Past performance does not guarantee future results.
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Common Stock - 71.8%
Applications Software - 0.4%
2,970 Adobe Systems, Inc. ............................ $ 386,100
6,585 Siebel Systems, Inc.* .......................... 1,077,059
1,463,159
Audio and Video Products - 0.2%
7,600 Sony Corp.** ................................... 711,143
Cellular Telecommunications - 4.4%
32,270 China Telecom, Ltd. (ADR)*,** .................. 5,738,009
65,045 Crown Castle International Corp.* .............. 2,374,143
125 NTT DoCoMo, Inc.** ............................. 3,390,783
15,195 Sprint Corp./PCS Group* ........................ 904,103
339,665 Vodafone AirTouch PLC .......................... 1,358,875
13,150 Vodafone AirTouch PLC (ADR) .................... 544,903
14,540 VoiceStream Wireless Corp.* .................... 1,690,957
16,001,773
Circuit Boards - 0.1%
20,780 Viasystems Group, Inc.* ........................ 336,376
Circuits - 1.5%
91,120 Integrated Device Technology, Inc.* ............ 5,455,810
Commercial Services - 0.1%
22,935 MarchFirst, Inc.* .............................. 418,564
Communications Software - 0.7%
4,665 Puma Technology, Inc.* ......................... 125,080
57,835 Research in Motion, Ltd.* ...................... 2,617,034
2,742,114
Computer Data Security - 1.2%
3,895 Check Point Software Technologies, Ltd.* ....... 824,766
20,285 VeriSign, Inc.* ................................ 3,580,303
4,405,069
Computer Services - 1.2%
2,200 Fujitsu Support and Service, Inc.** ............ $ 218,333
168,800 HiQ International A.B .......................... 1,635,897
24,765 Sapient Corp.* ................................. 2,648,307
4,502,537
Computer Software - 0%
400 Mercury Interactive Corp.* ..................... 38,700
Computers - Integrated Systems - 3.6%
160,855 ASM Lithography Holding N.V.* .................. 7,097,727
12,905 Brocade Communications Systems, Inc.* .......... 2,367,866
49,780 eSoft, Inc.* ................................... 348,460
103,000 Fujitsu, Ltd.** ................................ 3,572,822
13,386,875
Computers - Memory Devices - 1.9%
57,405 EMC Corp.* ..................................... 4,416,597
22,192 VERITAS Software Corp.* ........................ 2,508,043
6,924,640
Computers - Micro - 1.9%
910 Compaq Computer Corp. .......................... 23,262
1,100,000 Legend Holdings, Ltd.** ........................ 1,065,422
63,750 Sun Microsystems, Inc.* ........................ 5,797,266
6,885,950
Computers - Peripheral Equipment - 0.5%
80,600 Creative Technology, Ltd. ...................... 1,943,935
Distribution and Wholesale - 0.1%
226,000 Global Tech Holdings, Ltd.** ................... 260,935
Diversified Operations - 0.8%
552,000 Citic Pacific, Ltd.** .......................... 2,889,224
E-Commerce - 0.2%
4,100 Amazon.com, Inc.* .............................. 148,881
11,100 PurchasePro.com, Inc.* ......................... 455,100
603,981
See Notes to Schedules of Investments.
42 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Global Technology Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Electric Products - 2.0%
21,960 Samsung Electronics** .......................... $ 7,267,556
Electronic Components - 6.0%
78,320 Celestica, Inc. - New York Shares* ............. 3,886,630
4,865 CTS Corp. ...................................... 218,925
33,000 Murata Manufacturing Company, Ltd.** ........... 4,747,191
169,000 NEC Corp.** .................................... 5,319,111
28,480 Samsung SDI Company, Ltd.** .................... 1,366,544
132,960 SCI Systems, Inc.* ............................. 5,210,370
30,000 Vishay Intertechnology, Inc.* .................. 1,138,125
21,886,896
Electronic Components - Semiconductors - 11.5%
14,730 Advanced Micro Devices, Inc.* .................. 1,137,893
7,000 Analog Devices, Inc.* .......................... 532,000
100,840 Applied Materials, Inc.* ....................... 9,138,625
21,260 Atmel Corp.* ................................... 783,962
21,497 Bookham Technology PLC* ........................ 1,251,654
24,895 Chartered Semiconductor
Manufacturing, Ltd. (ADR)* .................. 2,240,550
35,220 Conexant Systems, Inc.* ........................ 1,712,572
199,087 Hyundai Electronics Industries Co.*,** ......... 3,928,215
6,375 Intel Corp. .................................... 852,258
37,140 Marvell Technology Group, Ltd.* ................ 2,116,980
20,040 Micron Technology, Inc.* ....................... 1,764,772
9,465 STMicroelectronics N.V. - New York Shares ...... 607,535
37,850 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)* ........................ 1,469,053
37,510 Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR)*,+ ...................... 1,453,512
105,840 Teradyne, Inc.* ................................ 7,779,240
77,700 Texas Instruments, Inc. ........................ 5,337,019
1,000 Xilinx, Inc.* .................................. 82,562
42,188,402
Enterprise Software and Services - 1.9%
20,970 BEA Systems, Inc.* ............................. 1,036,704
38,673 i2 Technologies, Inc.* ......................... 4,032,265
22,625 Oracle Corp.* .................................. 1,901,914
6,970,883
Entertainment Software - 0.2%
8,240 Electronic Arts, Inc.* ......................... 601,005
Fiber Optics - 4.8%
35,945 Avanex Corp.* .................................. 3,432,748
9,465 Corning, Inc. .................................. 2,554,367
20,705 E-Tek Dynamics, Inc.* .......................... 5,462,238
18,930 Finisar Corp.* ................................. 495,729
5,110 JDS Uniphase Corp.* ............................ 612,561
63,740 Metromedia Fiber Network, Inc. - Class A* ...... 2,529,681
12,390 New Focus, Inc.* ............................... 1,017,529
4,830 SDL, Inc.* ..................................... 1,377,456
17,482,309
Identification Systems and Devices - 0.3%
20,500 Symbol Technologies, Inc. ...................... 1,107,000
Instruments - Scientific - 0.3%
19,020 PE Corp./PE Biosystems Group ................... 1,252,943
Internet Content - 0.5%
5,150 DoubleClick, Inc.* ............................. 196,344
6,970 Proxicom, Inc.* ................................ 333,689
10,500 Softbank Corp.** ............................... 1,429,091
1,959,124
Internet Software - 4.6%
22,135 America Online, Inc.* .......................... $ 1,167,621
38,620 Exodus Communications, Inc.* ................... 1,778,934
80,000 Gauss Interprise A.G.* ......................... 1,380,368
11,350 Inktomi Corp.* ................................. 1,342,138
29,330 Macromedia, Inc.* .............................. 2,835,844
854,000 Pacific Century CyberWorks, Ltd.*,** ........... 1,687,177
23,620 Portal Software, Inc.* ......................... 1,508,728
126,755 PSINet, Inc.* .................................. 3,184,719
7,805 TIBCO Software, Inc.* .......................... 836,964
23,835 Vignette Corp.* ................................ 1,239,792
16,962,285
Life and Health Insurance - 0.1%
25,992 Prudential PLC ................................. 380,901
Machinery - Electrical - 0.6%
26,500 Nidec Corp.** .................................. 2,304,315
Medical - Biomedical and Genetic - 0.2%
3,495 Affymetrix, Inc.* .............................. 577,112
Network Software - 0.9%
20,780 Micromuse, Inc.* ............................... 3,438,765
Networking Products - 2.9%
20,040 3Com Corp.* .................................... 1,154,805
144,980 Cisco Systems, Inc.* ........................... 9,215,291
2,925 ONI Systems Corp.* ............................. 342,819
10,712,915
Petrochemicals - 0.3%
46,653 Reliance Industries, Ltd. (GDR)+ ............... 991,376
Pipelines - 0.5%
27,470 Enron Corp. .................................... 1,771,815
Satellite Telecommunications - 0.6%
59,450 Adaptive Broadband Corp.* ...................... 2,184,788
Telecommunication Equipment - 7.1%
24,375 Alcatel S.A. (ADR) ............................. 1,620,938
295,360 Datacraft Asia, Ltd.* .......................... 2,599,168
8,485 Digital Lightwave, Inc.* ....................... 852,743
12,570 Ditech Communications Corp.* ................... 1,188,651
5,510 LG Information & Communication, Ltd.** ......... 309,848
16,000 Matsushita Communication Industrial
Company, Ltd.** ............................. 1,872,185
2,200 Next Level Communications, Inc.* ............... 188,650
211,915 Nokia Oyj (ADR) ................................ 10,582,505
89,955 Nortel Networks Corp. - New York Shares ........ 6,139,429
8,610 QUALCOMM, Inc.* ................................ 516,600
25,870,717
Telecommunication Services - 3.5%
10,865 Amdocs, Ltd.* .................................. 833,889
153,100 China Unicom, Ltd. (ADR)*,** ................... 3,253,375
13,000 Korea Thrunet Company, Ltd. - Class A*,** ...... 182,000
39,105 Level 3 Communications, Inc.* .................. 3,441,240
97,965 McLeodUSA, Inc. - Class A* ..................... 2,026,651
71,100 SK Telecom Company, Ltd. (ADR)** ............... 2,581,819
10,315 Sonera Oyj (ADR) ............................... 474,490
12,793,464
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 43
<PAGE>
Janus|Aspen Global Technology Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Telephone - Integrated - 2.2%
18 Japan Telecom Company, Ltd.** .................. $ 782,598
22,400 NEXTLINK Communications, Inc. - Class A* ....... 849,800
79,280 SBC Communications, Inc. ....................... 3,428,860
4,794 Telefonica S.A.* ............................... 103,398
13,495 Telefonica S.A. (ADR)* ......................... 864,523
34,245 Telefonos de Mexico S.A. (ADR) ................. 1,956,246
7,985,425
Toys - 0.2%
135,000 Takara Company, Ltd.*,** ....................... 663,507
Wire and Cable Products - 1.4%
237,000 Furukawa Electric Company, Ltd.** .............. 4,961,697
Wireless Equipment - 0.4%
2,500 Aether Systems, Inc.* .......................... 512,500
12,520 RF Micro Devices, Inc.* ........................ 1,097,065
1,609,565
--------------------------------------------------------------------------------
Total Common Stock (cost $264,133,542) ....................... 262,895,550
--------------------------------------------------------------------------------
Corporate Bonds - 6.1%
Cable Television - 0.7%
$ 1,000,000 Telewest Communications PLC, 9.875%
senior notes, due 2/1/10+ ................... 930,000
United Pan-Europe Communications N.V.:
1,000,000 11.25%, senior notes, due 2/1/10 ............ 890,000
1,000,000 11.50%, senior notes, due 2/1/10 ............ 890,000
2,710,000
Computer Software - 0.5%
1,790,000 Mercury Interactive Corp., 4.75%
convertible bonds, due 7/1/07+ .............. 1,927,606
Computers - Integrated Systems - 0.2%
1,000,000 Candescent Technologies Corp., 7.00%
convertible senior subordinated
debentures, due 5/1/03+ ..................... 750,000
Fiber Optics - 0.3%
1,000,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 12/15/09 .................. 985,000
Internet Software - 1.1%
1,000,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 .................... 990,000
2,000,000 Globix Corp., 12.50%
senior notes, due 2/1/01 .................... 1,640,000
1,000,000 PSINet, Inc., 10.50%
senior notes, due 12/1/06+ .................. 920,000
3,550,000
Telecommunication Services - 2.5%
1,000,000 Global Crossing Holdings, Ltd., 9.50%
company guaranteed notes, due 11/15/09 ...... 965,000
Level 3 Communications, Inc.:
2,000,000 11.00%, senior notes, due 3/15/08+ .......... 1,980,000
2,000,000 zero coupon, convertible subordinated
debentures, due 3/15/10 ..................... 1,800,000
3,000,000 12.875%, senior discount notes
due 3/15/10+ ................................ 1,642,500
1,000,000 NTL, Inc., zero coupon
senior notes, due 2/1/06 .................... 922,500
2,000,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09 .................... 1,890,000
9,200,000
Telephone - Integrated - 0.8%
$ 2,000,000 NEXTLINK Communications, Inc., 12.50%
senior notes, due 4/15/06 ................... $ 2,090,000
1,000,000 Versatel Telecom B.V., 11.875%
senior notes, due 7/15/09 ................... 985,000
3,075,000
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $23,443,533) ..................... 22,197,606
--------------------------------------------------------------------------------
Preferred Stock - 0.6%
Internet Software - 0.3%
32,620 PSINet, Inc., convertible, 7.00% ............... 1,105,003
Multimedia - 0.3%
22,580 News Corporation, Ltd. (ADR) ................... 1,072,550
--------------------------------------------------------------------------------
Total Preferred Stock (cost $2,879,893) ...................... 2,177,553
--------------------------------------------------------------------------------
Repurchase Agreements - 12.4%
$ 25,400,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00 to be
repurchased at $25,414,499 collateralized
by $12,954,405 in Fannie Mae, 5.9142%-
7.6562%, 2/25/24-4/18/28; $6,705,481
in Freddie Mac, 7.1512%-7.5875%,
2/15/24-11/15/28; $18,924,303 in
Ginnie Mae, 6.40%-7.50%, 4/20/22-
2/16/30; with respective values of
$6,361,484, $2,972,524 and $16,573,992 ...... 25,400,000
20,000,000 Morgan Stanley Dean Witter & Co., 6.80%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $20,011,333 collateralized
by $22,820,518 in Fannie Mae, 0.65%-
10.25%, 1/1/06-6/1/30; $27,628,173 in
Freddie Mac, 0%-8.40%, 7/15/10-12/1/29;
with respective values of $7,526,524
and $12,881,215 ............................. 20,000,000
--------------------------------------------------------------------------------
Total Repurchase Agreements (cost $45,400,000) ............... 45,400,000
--------------------------------------------------------------------------------
U.S. Government Agencies - 10.9%
Fannie Mae
13,882,000 6.44%, 7/27/00 .............................. 13,817,433
Federal Home Loan Bank System
5,000,000 5.81%, 7/3/00 ............................... 4,998,264
Freddie Mac:
5,000,000 6.37%, 7/5/00 ............................... 4,996,461
13,000,000 6.44%, 7/11/00 .............................. 12,976,744
3,000,000 6.36%, 7/13/00 .............................. 2,993,640
--------------------------------------------------------------------------------
Total U.S. Government Agencies (amortized cost $39,782,542) .. 39,782,542
--------------------------------------------------------------------------------
Total Investments (total cost $375,639,510) - 101.8% ......... 372,453,251
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (1.8%) (6,435,768)
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $366,017,483
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
44 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen Global Technology Portfolio
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000
COUNTRY % OF INVESTMENT SECURITIES MARKET VALUE
--------------------------------------------------------------------------------
Australia 0.3% $ 1,072,550
Bermuda 0.8% 3,081,980
Canada 3.9% 14,533,093
Finland 3.0% 11,056,995
France 0.6% 2,228,473
Germany 0.4% 1,380,368
Hong Kong 4.0% 14,894,142
India 0.3% 991,376
Israel 0.2% 824,766
Japan 8.1% 29,972,776
Mexico 0.5% 1,956,246
Netherlands 2.6% 9,862,727
Singapore 1.8% 6,783,653
South Korea 4.2% 15,635,982
Spain 0.3% 967,921
Sweden 0.4% 1,635,897
Taiwan 0.8% 2,922,565
United Kingdom 1.2% 4,466,333
United States++ 66.6% 248,185,408
--------------------------------------------------------------------------------
Total 100.0% $ 372,453,251
++ Includes Short-Term Securities (43.8% excluding Short-Term Securities)
FORWARD CURRENCY CONTRACTS, OPEN AT JUNE 30, 2000
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
--------------------------------------------------------------------------------
Hong Kong Dollar
3/16/01 65,600,000 $ 8,419,431 $ (1,129)
Hong Kong Dollar
5/10/01 3,000,000 385,109 440
Hong Kong Dollar
6/27/01 7,200,000 924,321 (147)
Japanese Yen 9/1/00 315,000,000 3,007,998 (32,958)
Japanese Yen 9/8/00 880,000,000 8,413,718 79,467
Japanese Yen 9/14/00 20,000,000 191,424 959
Japanese Yen 10/5/00 40,000,000 384,302 10,956
South Korean Won
1/26/01 1,030,000,000 920,629 (2,107)
South Korean Won
2/8/01 810,000,000 723,925 (609)
South Korean Won
2/15/01 1,265,000,000 1,130,476 251
--------------------------------------------------------------------------------
Total $ 24,501,333 $ 55,123
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 45
<PAGE>
Janus|Aspen Flexible Income Portfolio
[PHOTO]
Ronald Speaker
portfolio manager
During the six-month period ended June 30, 2000, Janus Aspen Flexible Income
Portfolio returned 1.23% for its Institutional Shares, 1.03% for its Retirement
Shares and 1.05% for its Service Shares, while its benchmark, the Lehman
Brothers Government/Corporate Bond Index, returned 4.18%.(1)
Considering the investing landscape, this period proved to be unique for
fixed-income investors. Through the first part of the year, the economy was
growing at an extreme rate of 5% to 7%, the Nasdaq Composite Index was peaking,
and Internet stocks were soaring. Wary of the increasing potential for
inflation, the Federal Reserve extended the tightening trend it started in 1999
and ratcheted rates up three times in the first six months of the year. In late
June, the central bank decided to ease up on the brakes and left rates where
they stood.
While the Fed's aggressive stance helped set the tone in the fixed-income
market, another major event was the Treasury Department's January announcement
that it would buy back $30 billion worth of U.S. debt in 2000. The buyback, made
possible by huge budget surpluses, targeted the long end of the market and
shortened the supply of new issues just as demand was beginning to increase. As
a result, where we traditionally see an upward-sloping yield curve - an event
that occurs when 30-year bonds yield more than two-year bonds - we saw an
inverted curve with two-year bonds yielding more than 30-year bonds.
The spread, or difference in yield, between corporate bonds and Treasuries
widened during the period due to investors' flight to Treasuries. As such, our
focus on corporate issues hindered the Portfolio's performance. Even the spreads
on high-quality names widened. For example, those on Wal-Mart and Procter &
Gamble widened 50 basis points during this volatile period.
High-yield corporate securities felt the brunt of this downturn as investors
traded in their high-yield bonds so that they could redeploy their assets in the
stock market. However, in the case of high-yield issuer Stater Brothers, a
California-based grocery store operator, an earnings disappointment related to a
series of one-time acquisition expenses also worked against the bonds. But after
several company visits, our confidence in the business remains strong, and we
anticipate a recovery through the rest of 2000. We consequently added to the
position.
We won't be waiting out a rebound at Conseco, as we exited our position. We
believed the Personal Finance Division, which was created following the 1998
purchase of Green Tree Financial, was important to the company's underlying
fundamentals. So when Conseco announced in March that it was putting the
struggling division up for sale and would take a $350 million write-down against
its 1999 earnings, we decided our reasons for holding the company were no longer
valid.
On the positive side, we were rewarded for our patience in Hard Rock Hotel. A
new management team improved cash operations at its Las Vegas location and is
leading a fiscal turnaround. The company also benefited from an equity injection
by its founder, Peter Morton.
Looking ahead, we're watching closely to see if the recent signs of an economic
slowdown are real and lasting. Although the Federal Reserve decided to skip
increasing rates at its meeting in late June, it still expressed concerns over
the country's low unemployment figures and promised to remain vigilant on the
inflation front. Obviously, we're cautiously looking ahead to the Fed's meeting
in late August, but we're also monitoring oil prices closely. Any sustained
uptick is potentially an inflationary event, and we need to be prepared.
Meanwhile, on the corporate side, investment-quality bonds have begun to retrace
their losses from earlier this year, but we're keeping a critical eye on this
group. Corporate bond spreads are volatile during periods of rate hikes,
reacting to the fear that the Fed will go too far and cause a hard landing of
the economy. High-yield bonds are similarly affected because of their leveraged
balance sheets and sensitivity to the economy.
While our focus on corporate issues and their disappointing performance hindered
the Portfolio's results, the developments of the past six months have left
numerous opportunities to buy issues of world-class companies at bargain prices.
Rest assured that we'll be working hard to uncover those opportunities.
Thank you for your continued investment in Janus Aspen Flexible Income
Portfolio.
Portfolio Asset Mix (% of Assets) June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Corporate Bonds
Investment Grade/Warrants 42.5% 39.1%
High-Yield/High-Risk 20.2% 30.4%
U.S. Government Bonds 10.8% 7.8%
Foreign Dollar/
Non-Dollar Bonds 5.4% 8.4%
Preferred Stock 0.9% 1.7%
Cash & Cash Equivalents 20.2% 12.6%
Portfolio Profile
Weighted Average Maturity 5.1 Yrs. 6.5 Yrs.
Average Modified Duration* 3.7 Yrs. 4.5 Yrs.
30-Day Average Yield**
Institutional Shares** 8.03% 8.22%
Retirement Shares** 7.52% 7.56%
Service Shares** 7.75% N/A
Average Rating A- BBB
--------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
46 Janus Aspen Series / June 30, 2000
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 9/13/93)
1 Year 3.51%
5 Year 8.57%
From Inception 8.05%
--------------------------------------------------------------------------------
Lehman Brothers Govt./Corp. Bond Index
1 Year 4.32%
5 Year 6.10%
From Inception Date of Institutional Shares 4.99%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 3.02%
5 Year 7.93%
From Portfolio Inception 7.45%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 3.14%
5 Year 8.34%
From Portfolio Inception 7.90%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or 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 (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Corporate Bonds - 67.0%
Automotive - Cars and Light Trucks - 0.8%
$ 1,500,000 DaimlerChrysler N.A. Holding Corp., 7.75%
company guaranteed notes, due 5/27/03 ....... $ 1,511,250
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
Broadcast Services and Programming - 1.6%
2,000,000 AT&T Corp./Liberty Media Group, 7.875%
notes, due 7/15/09 .......................... 1,925,000
1,250,000 Paxson Communications Corp., 11.625%
senior subordinated notes, due 10/1/02 ...... 1,278,125
3,203,125
Cable Television - 2.8%
1,500,000 Diamond Cable Communications PLC
zero coupon, senior discount notes
due 12/15/05 ................................ 1,423,125
1,000,000 Jones Intercable, Inc., 7.625%
senior notes, due 4/15/08 ................... 976,250
Lenfest Communications, Inc.:
1,000,000 10.50%, senior subordinated notes
due 6/15/06 ................................. 1,116,250
1,000,000 7.625%, senior notes, due 2/15/08 ........... 975,000
1,115,000 LodgeNet Entertainment Corp., 10.25%
senior notes, due 12/15/06 .................. 1,070,400
5,561,025
Casino Hotels - 1.0%
$ 500,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 .......... $ 496,250
1,000,000 Station Casinos, Inc., 10.125%,
senior subordinated notes, due 3/15/06 ...... 1,012,500
500,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 ...... 505,000
2,013,750
Casino Services - 0.4%
750,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04 ........... 817,500
Commercial Banks - 2.0%
1,000,000 City National Bank, 6.375%
subordinated notes, due 1/15/08 ............. 877,500
700,000 Hudson United Bancorp, Inc., 8.20%
subordinated debentures, due 9/15/06 ........ 672,875
1,650,000 Local Financial Corp., 11.00%
senior notes, due 9/8/04 .................... 1,654,125
1,000,000 Provident Trust I Corp., 8.29%
company guaranteed notes, due 4/15/28 ....... 821,250
4,025,750
Commercial Services - 1.2%
2,500,000 Cendant Corp., 7.75%
notes, due 12/1/03 .......................... 2,415,625
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 47
<PAGE>
Janus|Aspen Flexible Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Computer Services - 2.8%
$ 4,500,000 Electronic Data Systems Corp., 7.125%
notes, due 10/15/09 ......................... $ 4,376,250
1,250,000 Equinix, Inc., 13.00%
senior notes, due 12/1/07+ .................. 1,185,938
5,562,188
Computers - Integrated Systems - 0.4%
1,000,000 Candescent Technologies Corp., 7.00%,
convertible senior subordinated
debentures, due 5/1/03+ ..................... 750,000
Containers - Paper and Plastic - 2.0%
3,925,000 Stone Container Corp., 10.75%
first mortgage notes, due 10/1/02 ........... 3,978,969
Cosmetics and Toiletries - 1.9%
4,000,000 Procter & Gamble Co., 6.875%
unsubordinated notes, due 9/15/09 ........... 3,900,000
Cruise Lines - 0.9%
2,000,000 Royal Caribbean Cruises, Ltd., 7.00%
senior notes, due 10/15/07 .................. 1,772,500
Diversified Financial Services - 5.7%
2,000,000 Citigroup, Inc., 7.45%
notes, due 6/6/02 ........................... 2,000,000
7,500,000 General Electric Capital Corp., 7.00%
notes, due 3/1/02 ........................... 7,481,250
1,850,000 IBM Credit Corp., 7.00%
notes, due 1/28/02 .......................... 1,843,063
11,324,313
Diversified Operations - 0.2%
500,000 Tyco International Group S.A., 6.875%
notes, due 9/5/02+ .......................... 495,000
Electric - Generation - 0.2%
410,491 Caithness Coso Funding Corp., 6.80%
secured notes, due 12/15/01 ................. 404,333
Electric - Integrated - 0.3%
625,000 El Paso Electric Co., 9.40%
first mortgage bonds, due 5/1/11 ............ 656,250
Fiber Optics - 1.8%
2,500,000 NorthEast Optic Network, Inc., 12.75%
senior notes, due 8/15/08 ................... 2,387,500
1,250,000 Williams Communications Group, Inc.
10.875%, senior notes, due 10/1/09 .......... 1,221,875
3,609,375
Finance - Auto Loans - 2.7%
5,500,000 Ford Motor Credit Co., 7.50%
notes, due 6/15/03 .......................... 5,472,500
Food - Retail - 6.0%
3,500,000 Kroger Co., 8.05%
notes, due 2/1/10 ........................... 3,478,125
2,000,000 Marsh Supermarkets, Inc., 8.875%
company guaranteed notes, due 8/1/07 ........ 1,860,000
Safeway, Inc.:
3,500,000 5.875%, notes, due 11/15/01 ................. 3,434,375
2,000,000 7.00%, notes, due 9/15/02 ................... 1,985,000
1,500,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 ................... 1,320,000
12,077,500
Internet Software - 0.2%
$ 420,000 Exodus Communications, Inc., 11.25%
senior notes, due 7/1/08 .................... $ 415,800
Leisure, Recreation and Gaming - 0.7%
1,500,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 ....... 1,376,250
Life and Health Insurance - 0.4%
815,000 Delphi Financial Group, Inc., 8.00%
senior notes, due 10/1/03 ................... 791,569
Medical - Hospitals - 0.7%
500,000 Columbia/HCA Healthcare Corp., 8.36%
debentures, due 4/15/24 ..................... 453,125
1,000,000 Tenet Healthcare Corp., 7.875%
senior notes, due 1/15/03 ................... 975,000
1,428,125
Multimedia - 0.9%
Time Warner, Inc.:
1,000,000 8.18%, notes, due 8/15/07 ................... 1,022,500
1,000,000 6.95%, company guaranteed notes
due 1/15/28 ................................. 878,750
1,901,250
Networking Products - 1.0%
500,000 Anixter International, Inc., 8.00%
company guaranteed notes, due 9/15/03 ....... 490,625
1,500,000 Concentric Network Corp., 12.75%
senior notes, due 12/15/07 .................. 1,582,500
2,073,125
Oil Companies - Integrated - 0.5%
1,000,000 Chevron Corp., 6.625%
notes, due 10/1/04 .......................... 987,500
Optical Supplies - 0.5%
950,000 Bausch & Lomb, Inc., 6.75%
notes, due 12/15/04 ......................... 902,500
Paint and Related Products - 0.2%
500,000 Sherwin-Williams Co., 6.85%
notes, due 2/1/07 ........................... 484,375
Physical Therapy and Rehabilitation Centers - 0.8%
1,500,000 HEALTHSOUTH Corp., 9.50%
senior subordinated notes, due 4/1/01 ....... 1,503,750
Pipelines - 1.3%
Enron Corp.:
1,750,000 7.875%, notes, due 6/15/03 .................. 1,760,938
1,000,000 7.375%, bonds, due 5/15/19 .................. 942,500
2,703,438
Property and Casualty Insurance - 0.2%
500,000 First America Capital Trust, 8.50%
company guaranteed notes, due 4/15/12 ....... 463,750
Recreational Centers - 0.7%
1,500,000 Bally Total Fitness Holding Corp., 9.875%
senior subordinated notes, due 10/15/07 ..... 1,357,500
Reinsurance - 1.7%
3,500,000 GE Global Insurance Corp., 7.50%
notes, due 6/15/10 .......................... 3,469,375
Retail - Discount - 2.0%
4,000,000 Wal-Mart Stores, Inc., 6.875%
senior notes, due 8/10/09 ................... 3,920,000
See Notes to Schedules of Investments.
48 Janus Aspen Series / June 30, 2000
<PAGE>
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Retail - Leisure Products - 0.1%
$ 150,000 Selmer Company, Inc., 11.00%
senior subordinated notes, due 5/15/05 ...... $ 154,500
Retail - Regional Department Stores - 1.0%
2,000,000 Fred Meyer, Inc., 7.15%
company guaranteed notes, due 3/1/03 ........ 1,965,000
Retail - Restaurants - 0.2%
500,000 Perkins Family Restaurants L.P., 10.125%
senior notes, due 12/15/07 .................. 480,000
Savings/Loan/Thrifts - 2.8%
Dime Bancorp, Inc.:
1,650,000 6.375%, senior notes, due 1/30/01 ........... 1,637,625
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 .................... 927,500
5,535,125
Telecommunication Services - 7.7%
775,000 CapRock Communications Corp., 11.50%
senior notes, due 5/1/09 .................... 697,500
2,000,000 Cox Communcations, Inc., 7.00%
notes, due 8/15/01 .......................... 1,990,000
1,000,000 Dominion Resources, Inc., 8.125%
senior notes, due 6/15/10 ................... 1,008,750
1,220,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ...... 1,055,300
3,000,000 Global Crossing Holdings, Ltd., 9.50%
company guaranteed notes, due 11/15/09 ...... 2,895,000
1,000,000 Level 3 Communications, Inc., 11.00%,
senior notes, due 3/15/08+ .................. 990,000
720,000 NTL, Inc., 12.75%
senior notes, due 4/15/05 ................... 732,600
200,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09 .................... 202,000
150,000 Pegasus Media and Communications, Inc.
12.50%, notes, due 7/1/05 ................... 159,750
4,000,000 Qwest Communications International, Inc.
7.50%, senior notes, due 11/1/08 ............ 3,880,000
2,000,000 Worldwide Fiber, Inc., 12.00%,
senior notes, due 8/1/09 .................... 1,890,000
15,500,900
Telephone - Integrated - 3.8%
2,500,000 Deutsche Telekom Integrated Finance, 8.00%
notes, due 6/15/10** ........................ 2,518,750
1,500,000 NEXTLINK Communications, Inc., 12.50%
senior notes, due 4/15/06 ................... 1,567,500
500,000 Versatel Telecom International N.V., 13.25%
senior notes, due 5/15/08** ................. 508,750
3,000,000 WorldCom, Inc., 6.125%
senior notes, due 8/15/01 ................... 2,962,500
7,557,500
Telephone - Local - 1.5%
3,000,000 US West Communications, Inc., 7.625%
notes, due 6/9/03+ .......................... 2,992,500
Television - 2.2%
$ 3,000,000 Fox/Liberty Networks L.L.C., 8.875%
senior notes, due 8/15/07 ................... $ 2,977,500
250,000 Pegasus Communications Corp., 12.50%
senior notes, due 8/01/07 ................... 266,250
1,000,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 ...... 1,075,000
4,318,750
Textile - Products - 0.5%
1,000,000 Collins & Aikman Floorcovering, Inc.
10.00%, senior subordinated notes
due 1/15/07 ................................. 972,500
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $137,498,365) .................... 134,212,285
--------------------------------------------------------------------------------
Foreign Bonds - 0.9%
Finance - Other Services - 0.3%
EUR 555,000 Ono Finance PLC, 14.00%
senior notes, due 7/15/10**,+ ............... 518,716
Telecommunication Services - 0.6%
EUR 750,000 Jazztel PLC, 13.25%
senior notes, due 12/15/09** ................ 639,858
EUR 650,000 Level 3 Communications, Inc., 10.75%
senior notes, due 3/15/08**,+ ............... 588,813
1,228,671
--------------------------------------------------------------------------------
Total Foreign Bonds (cost $1,931,180) ........................ 1,747,387
--------------------------------------------------------------------------------
Preferred Stocks - 0.9%
Savings/Loan/Thrifts - 0.4%
35,600 Chevy Chase Savings Bank, 13.00% ............... 876,650
Telephone - Integrated - 0.5%
1,038 Nextlink Communications, Inc.
- Series B, 13.50% .......................... 1,023,727
--------------------------------------------------------------------------------
Total Preferred Stocks (cost $1,866,544) ..................... 1,900,377
--------------------------------------------------------------------------------
Warrants - 0.2%
Computer Services - 0.1%
1,250 Equinix, Inc. - expires 12/1/07* ............... 125,000
Finance - Other Services - 0%
1,000 Ono Finance PLC - expires 5/31/09*,**,+ ........ 100,000
Retail - Diversified - 0%
450 SpinCycle, Inc. - expires 5/1/05* .............. 0
Telephone - Integrated - 0.1%
225 Versatel Telecom International N.V.
- expires 5/15/08*,** ....................... 117,000
--------------------------------------------------------------------------------
Total Warrants (cost $0) ..................................... 342,000
--------------------------------------------------------------------------------
U.S Government Obligations - 10.8%
U.S. Government Agency - 2.5%
$ 5,000,000 Fannie Mae
7.25%, due 1/15/10 .......................... 5,040,800
U.S. Treasury Notes - 8.3%
16,000,000 U.S. Treasury Notes
6.50%, due 2/15/10 .......................... 16,519,520
--------------------------------------------------------------------------------
Total U.S. Government Obligations (cost $21,575,153) ......... 21,560,320
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 49
<PAGE>
Janus|Aspen Flexible Income Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Repurchase Agreement - 20.5%
$ 41,000,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00
to be repurchased at $41,023,404
collateralized by $20,910,653 in
Fannie Mae, 5.9142%-7.6562%,
2/25/24-4/18/28; $10,823,808 in
Freddie Mac, 7.1512%-7.5875%,
2/15/24-11/15/28; $30,547,104 in
Ginnie Mae, 6.40%-7.50%, 4/20/22-
2/16/30; with respective values of
$10,268,537, $4,798,169 and
$26,753,294 (cost $41,000,000) .............. $ 41,000,000
--------------------------------------------------------------------------------
Total Investments (total cost $203,871,242) - 100.3% ......... 200,762,369
--------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.3%) (571,487)
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 200,190,882
--------------------------------------------------------------------------------
FORWARD CURRENCY CONTRACTS, OPEN AT JUNE 30, 2000
CURRENCY SOLD AND CURRENCY CURRENCY UNREALIZED
SETTLEMENT DATE UNITS SOLD VALUE IN $ U.S. GAIN/(LOSS)
--------------------------------------------------------------------------------
Euro 9/22/00 1,305,000 $ 1,251,756 $ 7,582
--------------------------------------------------------------------------------
Total $ 1,251,756 $ 7,582
See Notes to Schedules of Investments.
50 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen High-Yield Portfolio
[PHOTO]
Sandy Rufenacht
portfolio manager
For the six months ended June 30, 2000, Janus Aspen High-Yield Portfolio gained
3.06% for its Institutional Shares, 2.81% for its Retirement Shares and 2.98%
for its Service Shares. These returns outpaced our benchmark, the Lehman
Brothers High-Yield Bond Index, which declined (1.21%).(1)
Renewed inflation fears and a severe correction in the technology-focused Nasdaq
Composite Index set the stage for a challenging environment. As Federal Reserve
Chairman Alan Greenspan continued his assault on an overheated economy, raising
short-term interest rates on three occasions, the technology sector experienced
a broad sell-off in response to sky-high valuations. The high-yield market,
which often correlates to the Nasdaq, reacted negatively to the volatility and
struggled throughout most of the period.
Another obstacle facing high-yield securities was the Treasury Department's
announced buyback in January of longer-term government debt. This caused
wider-than-usual spreads, or differences in yields, between longer-term
Treasuries and corporate bonds, pushing Treasury prices up while corporates
headed lower. At the same time, shorter-maturity securities, particularly in the
investment-grade area, became exceedingly more attractive from a yield
perspective. Strange as it may seem, this development provided the Portfolio
with an interesting opportunity.
In the past, we have attempted to offset the risks of investing in high-yield
securities by maintaining a position in yield-to-call bonds. These holdings
generally trade close to their call price, providing a generous coupon with
little price fluctuation until they are retired. But with average yields in the
high-yield market currently at about 13%, the opportunities for refinancing to a
lower rate are virtually nonexistent. However, by investing in short-term
investment-grade securities, issued by such well-known companies as General
Electric, WorldCom and Safeway, we have locked in exceptional yields with
practically no credit risk and limited interest rate risk.
In the traditional high-yield arena, two of our standouts were Venetian Casino
and Hard Rock Hotel, both premier Las Vegas destinations. Venetian, with its
world-class gaming area and 1.5 million square foot convention center, has
experienced substantial traffic. Hard Rock Hotel advanced as well, benefiting
from a recent expansion and a $20 million equity infusion by its owner, Peter
Morton. The local gaming market also contributed to performance as Isle of Capri
Casino in Blackhawk, Colorado, our top position at period end, continued to use
cash flow to reinvest in the business and pay down debt.
Despite volatility in the telecommunications sector, a number of our holdings
held up under the pressure and produced gains for the Portfolio. Split Rock
Communications was acquired by McLeodUSA, and our bonds were tendered at a
significant premium. Internet hosting and infrastructure company Verio moved
ahead when Japanese telecom giant NTT DoCoMo announced plans to complete its
acquisition of the firm. Another leader in Web hosting, Exodus Communications,
rebounded nicely as signs of positive cash flow began to emerge.
While pleased with the Portfolio's overall results, we had our share of
disappointments. Cable provider Galaxy fell victim to rising interest rates and
credit concerns. While benefiting from stable cash flows and growing demand, the
company has recently sought a buyer, which may allow us to recoup our losses.
Radio station operator Cumulus Media also declined on reports of integration
issues surrounding recent acquisitions as well as speculation of accounting
irregularities. Given that, we liquidated the position.
Going forward, we believe the Fed is near the end of its tightening cycle,
although one more rate hike may be in the cards. Fed Chairman Alan Greenspan
will need to achieve a delicate balance, keeping inflation in check without
pushing the economy into recession. If his attempts at a "soft landing" are
successful, the resulting scenario of sustainable economic growth with little or
no inflation would be a perfect environment for high-yield bonds. However, with
rate hikes still a possibility, we'll be paying close attention to the recent
rise in defaults. In any case, we'll continue to employ our rigorous
company-by-company research, digging for overlooked and unrecognized
opportunities that often allow us to capitalize on the market's inefficiencies.
In closing, I'd like to thank you for your continued investment in Janus Aspen
High-Yield Portfolio.
Portfolio Profile June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------
Weighted Average Maturity 5.2 Yrs. 5.1 Yrs.
Average Modified Duration* 3.8 Yrs. 3.6 Yrs.
30-Day Average Yield
Institutional Shares** 9.67% 9.45%
Without Reimbursement** 5.91% 6.94%
Retirement Shares** 9.15% 8.80%
Without Reimbursement** 5.41% 6.32%
Service Shares** 9.37% N/A
Without Reimbursement** 5.63% N/A
Average Rating B+ B-
--------------------------------------------------------------------------------
* A theoretical measure of price volatility.
** Yields will fluctuate.
(1) All returns include reinvested dividends.
Past performance does not guarantee future results.
Janus Aspen Series / June 30, 2000 51
<PAGE>
AVERAGE ANNUAL TOTAL RETURN(1)
For the Periods Ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/96)
1 Year 5.17%
From Inception 9.40%
--------------------------------------------------------------------------------
Lehman Brothers High-Yield Bond Index
1 Year (1.03%)
From Inception Date of Institutional Shares 5.87%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 4.71%
From Portfolio Inception 6.14%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 2.89%
From Portfolio Inception 5.25%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
Shares.
(1) All returns reflect reinvested dividends. The Portfolio's securities may
differ significantly from the securities in the Index. Index returns do not
include taxes or 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 (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Corporate Bonds - 86.1%
Agricultural Operations - 1.4%
$ 23,000 Hines Horticulture, Inc., 11.75%
senior subordinated notes, due 10/15/05 ..... $ 23,000
Beverages - Wine and Spirits - 1.8%
30,000 Joseph E. Seagram & Sons, Inc., 5.79%
company guaranteed notes, due 4/15/01 ....... 29,625
Building and Construction - 0.8%
15,000 MDC Holdings, Inc., 8.375%
senior notes, due 2/1/08 .................... 13,275
Cable Television - 10.0%
15,000 Diamond Cable Communications PLC
zero coupon, senior discount notes
due 12/15/05 ................................ 14,231
50,000 FrontierVision Holdings L.P., 11.00%
senior subordinated notes, due 10/15/06 ..... 50,500
25,000 Fundy Cable, Ltd., 11.00%
senior notes, due 11/15/05 .................. 26,500
30,000 Telewest Communications PLC, 9.875%
senior notes, due 2/1/10+ ................... 27,900
United Pan-Europe Communications N.V.:
40,000 11.25%, senior notes, due 2/1/10 ............ 35,600
10,000 11.50%, senior notes, due 2/1/10 ............ 8,900
163,631
Casino Hotels - 4.6%
30,000 Santa Fe Hotel, Inc., 11.00%
first mortgage notes, due 12/15/00 .......... 29,775
30,000 Station Casinos, Inc., 10.125%
senior subordinated notes, due 3/15/06 ...... 30,375
15,000 Venetian Casino Resort L.L.C., 12.25%
company guaranteed notes, due 11/15/04 ...... 15,150
75,300
Casino Services - 3.2%
$ 48,000 Isle of Capri Black Hawk L.L.C., 13.00%
first mortgage bonds, due 8/31/04 ........... $ 52,320
Cellular Telecommunications - 1.5%
25,000 Nextel Communications, Inc., 9.375%
senior notes, due 11/15/09 .................. 23,875
Computer Software - 1.0%
15,000 Mercury Interactive Corp., 4.75%
convertible bonds, due 7/1/07+ .............. 16,153
Computers - Micro - 1.8%
30,000 IBM Corp., 7.25%
notes, due 11/1/02 .......................... 30,038
Containers - Paper and Plastic - 4.6%
60,000 SF Holdings Group, Inc., zero coupon
senior discount notes, due 3/15/08 .......... 30,000
Stone Container Corp.:
20,000 10.75%, first mortgage notes, due 10/1/02 ... 20,275
15,000 11.50%, senior notes, due 10/01/04 .......... 15,488
10,000 Sweetheart Cup Companies, Inc., 9.625%
senior notes, due 9/1/00 .................... 10,050
75,813
Diversified Financial Services - 1.9%
30,000 General Electric Capital Corp., 7.00%
notes, due 3/1/02 ........................... 29,925
Fiber Optics - 3.9%
50,000 Metromedia Fiber Network, Inc., 10.00%
senior notes, due 12/15/09 .................. 49,250
15,000 NorthEast Optic Network, Inc., 12.75%
senior notes, due 8/15/08 ................... 14,325
63,575
See Notes to Schedules of Investments.
52 Janus Aspen Series / June 30, 2000
<PAGE>
Janus|Aspen High-Yield Portfolio
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Food - Retail - 2.1%
$ 35,000 Safeway, Inc., 7.00%
notes, due 9/15/02 .......................... $ 34,738
Gambling - Non-Hotel Casinos - 3.7%
10,000 Horseshoe Gaming Holding Corp., 8.625%
company guarantee notes, due 5/15/09 ........ 9,425
50,000 Louisiana Casino Cruises, Inc., 11.00%
notes, due 12/1/05 .......................... 51,500
60,925
Internet Software - 7.5%
Exodus Communications, Inc.:
30,000 11.25%, senior notes, due 7/1/08 ............ 29,700
15,000 11.625%, senior notes, due 7/15/10+ ......... 15,037
32,000 Globix Corp., 12.50%
senior notes, due 2/1/01 .................... 26,240
Verio, Inc.:
30,000 13.50%, senior notes, due 6/15/04 ........... 33,862
15,000 11.25%, senior notes, due 12/1/08 ........... 16,837
121,676
Leisure, Recreation and Gaming - 1.7%
30,000 Hard Rock Hotel, Inc., 9.25%
senior subordinated notes, due 4/1/05 ....... 27,525
Manufacturing - 0.8%
15,000 Packaged Ice, Inc., 9.75%
company guaranteed notes, due 2/1/05 ........ 12,450
Music/Clubs - 1.9%
30,000 SFX Entertainment, Inc., 9.125%
company guaranteed notes, due 2/1/08 ........ 30,150
Pipelines - 1.9%
30,000 Enron Corp., 7.875%
notes, due 6/15/03 .......................... 30,188
Quarrying - 0.6%
10,000 Oglebay Norton Co., 10.00%
senior subordinated notes, due 2/1/09 ....... 9,100
Radio - 1.3%
20,000 Radio One, Inc., 12.00%
company guaranteed notes, due 5/15/04 ....... 21,600
Satellite Telecommunications - 0.9%
15,000 Echostar DBS Corp., 9.375%
senior notes, due 2/1/09 .................... 14,400
Telecommunication Services - 13.7%
30,000 Alaska Communications Systems, Inc.
9.375%, company guaranteed notes
due 5/15/09 ................................. 27,675
23,000 Galaxy Telecom L.P., 12.375%
senior subordinated notes, due 10/1/05 ...... 19,895
40,000 ITC DeltaCom, Inc., 11.00%
senior notes, due 6/1/07 .................... 40,400
15,000 Level 3 Communications, Inc., 11.00%
senior notes, due 3/15/08+ .................. 14,850
50,000 NTL, Inc., zero coupon
senior notes, due 2/1/06 .................... 46,125
24,000 Pac-West Telecomm, Inc., 13.50%
senior notes, due 2/1/09 .................... 24,240
20,000 Qwest Communications International, Inc.
10.875%, senior notes, due 4/1/07 ........... 21,750
30,000 Worldwide Fiber, Inc., 12.00%
senior notes, due 8/1/09 .................... 28,350
223,285
Telephone - Integrated - 7.2%
$ 50,000 NEXTLINK Communications, Inc., 12.50%
senior notes, due 4/15/06 ................... $ 52,250
Versatel Telecom International N.V.:
20,000 13.25%, senior notes, due 5/15/08 ........... 20,350
15,000 11.875%, senior notes, due 7/15/09 .......... 14,775
30,000 Worldcom, Inc., 7.875%
notes, due 5/15/03 .......................... 30,263
117,638
Television - 1.6%
25,000 Price Communications Wireless, Inc., 11.75%
senior subordinated notes, due 7/15/07 ...... 26,875
Textile - Products - 0.6%
10,000 Collins & Aikman Floorcovering, Inc., 10.00%
senior subordinated notes, due 1/15/07 ...... 9,725
Transportation - Services - 1.1%
20,000 Atlantic Express Transportation Corp., 10.75%
company guaranteed notes, due 2/1/04 ........ 17,700
Wire and Cable Products - 1.2%
20,000 International Wire Group, Inc., 11.75%
senior subordinated notes, due 6/1/05 ....... 20,100
Wireless Equipment - 1.8%
30,000 Nextel Partners, Inc., 11.00%
senior notes, due 3/15/10+ .................. 29,850
--------------------------------------------------------------------------------
Total Corporate Bonds (cost $1,445,112) ...................... 1,404,455
--------------------------------------------------------------------------------
Common Stock - 0%
Containers - Paper and Plastic - 0%
12 SF Holdings Group - Class C*,+ (cost $0) ....... 0
--------------------------------------------------------------------------------
Repurchase Agreement - 6.1%
$ 100,000 ABN AMRO Securities, Inc., 6.85%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $100,057 collateralized
by $51,002 in Fannie Mae, 5.9142%-
7.6562%, 2/25/24-4/18/28; $26,400 in
Freddie Mac, 7.1512%-7.5875%,
2/15/24-11/15/28; $74,505 in Ginnie
Mae, 6.40%-7.50%, 4/20/22-2/16/30;
with respective values of $25,045,
$11,703 and $65,252 (cost $100,000) ......... 100,000
--------------------------------------------------------------------------------
Total Investments (total cost $1,545,112) - 92.2% ............ 1,504,455
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 7.8% 127,064
--------------------------------------------------------------------------------
Net Assets - 100% ............................................ $ 1,631,519
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 53
<PAGE>
Janus|Aspen Money Market Portfolio
[PHOTO]
Sharon Pichler
portfolio manager
For the six months ended June 30, 2000, Janus Aspen Money Market Portfolio
returned 2.95% for its Institutional Shares, 2.69% for its Retirement Shares and
2.82% for its Service Shares.(1) The seven-day current yield for this same
period was 6.30%, 5.81% and 6.06% for the Institutional Shares, Retirement
Shares and Service Shares, respectively. The Portfolio's strong performance
earned it a top-quartile ranking for the 12 months ended June 30, 2000, placing
it 14th out of 106 U.S. money market portfolios tracked by Lipper, Inc., a
leading mutual fund rating company.(2)
Although the Portfolio is managed for liquidity and stability of capital, your
returns were higher than those reported six months ago due primarily to rising
short-term interest rates. These rate hikes were in response to ongoing
inflation concerns, as Federal Reserve Chairman Alan Greenspan continued in his
efforts to moderate a robust U.S. economy. Although rates were raised on three
separate occasions this year, following three increases in the second half of
1999, visible signs of an economic pullback were slow to materialize. However,
as the period came to a close, consumer spending, particularly in the housing
and retail sectors, appeared to dampen slightly.
Against this backdrop, the Portfolio emphasized liquidity in order to take
advantage of reinvestment opportunities at higher rates. While maturities
overall were naturally kept short, the Portfolio took advantage of several
buying opportunities in longer-term securities. One such opportunity involved
coupling floating-rate notes with one-year issues, the longest end of our
spectrum, when rates already reflected the risks of further increases. This
allowed us to lock in higher yields before anticipated rate increases actually
took place. Of course, economic conditions are always subject to change, which
is why we are constantly on the lookout for advantageous yield combinations.
At this writing, economic data is inconclusive as to the future direction of
interest rates. Many investors currently believe the Fed is near the end of its
tightening cycle. However, that leaves open the prospect of at least one more
rate hike, possibly in August. We do not profess to have a crystal ball. For
that reason, we will continue to maintain the Portfolio's liquidity. At the same
time, we will keep a close eye on the economic landscape, seeking to protect our
ability - and our flexibility - to respond to changing market conditions on your
behalf.
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 June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Institutional Shares (Inception Date 5/1/95)
1 Year 5.69%
5 Year 5.24%
From Inception 5.26%
--------------------------------------------------------------------------------
Retirement Shares (Inception Date 5/1/97)
1 Year 5.16%
5 Year 4.48%
From Portfolio Inception 4.48%
--------------------------------------------------------------------------------
Service Shares (Inception Date 12/31/99)
1 Year 5.46%
5 Year 5.03%
From Portfolio Inception 5.05%
--------------------------------------------------------------------------------
Returns shown for Retirement and Service 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 and Service
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 June 30, 2000, Janus
Aspen Money Market Portfolio ranked 24/88 of U.S. money market funds for
the 5-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.
54 Janus Aspen Series / June 30, 2000
<PAGE>
SCHEDULE OF INVESTMENTS (unaudited)
SHARES OR PRINCIPAL AMOUNT MARKET VALUE
--------------------------------------------------------------------------------
Short-Term Corporate Notes - 14.6%
$ 3,000,000 Countrywide Home Loans
6.92%, 7/5/00 ............................... $ 2,997,693
2,000,000 Eaton Corp.
6.00%, 7/10/00 .............................. 1,997,000
4,500,000 Mitsubishi Motors Credit
6.77%, 7/10/00 .............................. 4,492,384
--------------------------------------------------------------------------------
Total Short-Term Corporate Notes (cost $9,487,077) ........... 9,487,077
--------------------------------------------------------------------------------
Taxable Variable Rate Demand Notes - 35.8%
1,475,000 Arapahoe County, Colorado, Industrial
Development Revenue, (Cottrell), Series B
6.81%, 10/1/19 .............................. 1,475,000
300,000 Asset Partners, Inc., 6.80%, 11/1/27 ........... 300,000
3,200,000 Breckenridge Terrace L.L.C., 6.7343%, 5/1/39 ... 3,200,000
900,000 Bridgeton, Missouri Industrial Development
Authority Industrial Revenue, (Gold Dust
Project), Series B, 7.22%, 3/1/21 ........... 900,000
1,660,000 Chattanooga, Tennessee Industrial
Development Board of Revenue, (Radisson
Read Project), 7.42%, 3/1/08 ................ 1,660,000
335,000 Chicago Illinois Industrial Development
Revenue, (BTI, Inc. Project), Series B
6.81%, 9/1/27 ............................... 335,000
1,000,000 Colorado Housing and Finance Authority
Economic Development Revenue, (White
Wave, Inc. Project), Series B, 6.73%
10/1/18 ..................................... 1,000,000
3,600,000 Colorado Housing Facilities Revenue,
(Tenderfoot Seasonal Housing L.L.C.)
Series A, 6.7343%, 7/1/35 ................... 3,600,000
2,000,000 Medical Properties, Inc.
(Dakota Clinic Project)
6.82%, 12/22/24 ............................. 2,000,000
5,200,000 Montgomery, Alabama Industrial
Development Board of Revenue, (Jenkins
Brick Co.), Series A, 6.86%, 9/1/14 ......... 5,200,000
1,675,000 Phoenix, Illinois Realty Special Account
Multifamily Revenue, (Brightons Mark)
7.07%, 4/1/20 ............................... 1,675,000
1,000,000 South Carolina Jobs Economic Development
Authority Industrial Development Revenue
(Roller Bearing Co. Project), Series B
7.22%, 9/1/17 ............................... 1,000,000
1,000,000 Washington, Missouri Industrial
Development Authority Revenue
(Pauwels Project), 7.02%, 12/1/19 ........... 1,000,000
--------------------------------------------------------------------------------
Total Taxable Variable Rate Demand Notes (cost $23,345,000) .. 23,345,000
--------------------------------------------------------------------------------
Floating Rate Notes - 21.5%
$ 3,000,000 Bank One N.A., Illinois
6.2025%, 4/19/01 ............................ $ 2,998,147
2,000,000 Bayerische Landesbank, New York
6.75%, 8/2/00 ............................... 1,999,911
2,000,000 Homeside Lending, Inc.
6.9337%, 8/16/00 ............................ 1,999,864
2,000,000 National Bank of Commerce
6.6987%, 7/18/00 ............................ 1,999,908
3,000,000 Northern Rock PLC
6.65%, 4/20/01 .............................. 3,000,000
2,000,000 Norwest Financial, Inc.
6.675%, 7/7/00 .............................. 1,999,986
--------------------------------------------------------------------------------
Total Floating Rate Notes (cost $13,997,816) ................. 13,997,816
--------------------------------------------------------------------------------
Certificates of Deposit - 15.3%
2,000,000 Barclays Bank PLC, New York
5.90%, 10/2/00 .............................. 1,999,241
2,000,000 Commerzbank A.G., New York
6.83%, 4/27/01 .............................. 1,999,688
1,000,000 Compagnie Financiere de CIC et de L'Union
Europeene, 6.39%, 12/20/00 .................. 999,955
1,000,000 Deutsche Bank, New York
6.75%, 2/22/01 .............................. 999,693
1,000,000 Regions Bank
6.09%, 10/10/00 ............................. 999,842
2,000,000 Skandinaviska Enskilda Banken
5.96%, 8/10/00 .............................. 1,999,916
1,000,000 Unibank A/S, New York
6.92%, 3/30/01 .............................. 999,859
--------------------------------------------------------------------------------
Total Certificates of Deposit (cost $9,998,194) .............. 9,998,194
--------------------------------------------------------------------------------
Put Bond - 4.2%
2,765,000 Aurora Colorado Centertech Metropolitan
District, Series B, 6.65%, 12/1/17
(cost $2,765,000) ........................... 2,765,000
--------------------------------------------------------------------------------
Repurchase Agreement - 5.4%
3,522,000 Deutsche Bank Securities, Inc., 7.18%
dated 6/30/00, maturing 7/3/00, to be
repurchased at $3,524,107 collateralized
by $46,045 in Federal Farm Credit Bank,
5.17%-6.00%, 12/11/01-1/24/05;
$53,895 in Federal Home Loan Bank
System, 0%-6.395%, 12/14/01-8/26/05;
$386,635 in Freddie Mac, 0%-7.5687%,
8/17/27; $3,438,294 in Ginnie Mae,
0.66%-8.50%, 1/15/07-6/15/30; $7,030
in Sallie Mae, 0%, 7/20/00; $35,149 in
Tennessee Valley Authority, 5.00%,
12/18/03; $2,119,306 in U.S. Treasury,
0%-10.75%, 8/24/00-8/15/29; with
respective values of $45,082, $52,438,
$38,778, $2,145,577, $7,029, $33,056
and $1,270,484 (cost $3,522,000) ............ 3,522,000
--------------------------------------------------------------------------------
Total Investments (total cost $63,115,087) - 96.8% ........... 63,115,087
--------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 3.2% 2,056,165
--------------------------------------------------------------------------------
Net Assets - 100 % ........................................... $ 65,171,252
--------------------------------------------------------------------------------
See Notes to Schedules of Investments.
Janus Aspen Series / June 30, 2000 55
<PAGE>
Statements of|Operations
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
Janus Aspen Aggressive Capital Janus Aspen
For the six months or period ended June 30, 2000 (unaudited) Growth Growth Appreciation Balanced
(all numbers in thousands) Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest $ 10,216 $ 4,648 $ 9,376 $ 49,636
Dividends 5,385 691 948 5,204
Foreign tax withheld (121) -- (40) (67)
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 15,480 5,339 10,284 54,773
------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 11,673 14,520 3,347 9,311
Transfer agent expenses 3 1 3 2
Registration fees 160 202 93 113
System fees 10 9 10 12
Custodian fees 195 119 30 108
Insurance expense 2 -- -- 2
Audit fees 7 13 6 5
Distribution fees - Retirement Shares 146 173 72 111
Distribution fees - Service Shares 2 5 173 1
Administrative fees - Retirement Shares 146 173 72 111
Other expenses 9 9 2 8
------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 12,353 15,224 3,808 9,784
------------------------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (24) (29) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 12,329 15,195 3,808 9,784
------------------------------------------------------------------------------------------------------------------------------------
Excess Expense Reimbursement -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Expenses After Reimbursement 12,329 15,195 3,808 9,784
------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) 3,151 (9,856) 6,476 44,989
------------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 132,939 148,412 (17,647) 73,846
Net realized gain/(loss) from foreign currency transactions 2,055 -- -- 360
Net realized gain/(loss) from futures contracts -- -- -- --
Change in net unrealized appreciation or depreciation of
investments and foreign currency (88,520) (177,003) (59,757) (98,725)
------------------------------------------------------------------------------------------------------------------------------------
Net Gain/(Loss) on Investments 46,474 (28,591) (77,404) (24,519)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations $ 49,625 $(38,447) $(70,928) $ 20,470
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Period May 1, 2000 (inception) to June 30, 2000.
(2) Period January 18, 2000 (inception) to June 30, 2000.
See Notes to Financial Statements.
56 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen
Equity Growth and Strategic International Worldwide Global Global Flexible
Income Income Value Growth Growth Life Sciences Technology Income
Portfolio Portfolio Portfolio(1) Portfolio Portfolio Portfolio(2) Portfolio(2) Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 84 $ 754 $ 8 $ 7,743 $ 34,005 $ 52 $ 2,087 $ 7,576
56 224 1 17,794 17,832 2 451 82
(1) (5) -- (452) (2,035) -- (13) --
------------------------------------------------------------------------------------------------------------------------------------
139 973 9 25,085 49,802 54 2,525 7,658
------------------------------------------------------------------------------------------------------------------------------------
63 407 1 4,165 26,820 10 531 617
1 1 1 2 2 2 2 3
55 25 -- 79 265 -- 4 80
6 7 1 9 11 5 6 6
19 24 3 341 1,565 14 39 26
-- -- -- 1 7 -- -- --
5 4 -- 5 14 1 3 7
2 14 -- 38 372 -- -- 1
-- -- -- 134 3 1 145 --
2 14 -- 38 372 -- -- 1
1 1 -- 5 20 -- -- 2
------------------------------------------------------------------------------------------------------------------------------------
154 497 6 4,817 29,451 33 730 743
------------------------------------------------------------------------------------------------------------------------------------
-- (2) -- (12) (49) -- (2) (3)
------------------------------------------------------------------------------------------------------------------------------------
154 495 6 4,805 29,402 33 728 740
------------------------------------------------------------------------------------------------------------------------------------
(32) -- (3) -- -- (13) -- --
------------------------------------------------------------------------------------------------------------------------------------
122 495 3 4,805 29,402 20 728 740
------------------------------------------------------------------------------------------------------------------------------------
17 478 6 20,280 20,400 34 1,797 6,918
------------------------------------------------------------------------------------------------------------------------------------
1,967 (1,096) 1 59,457 513,714 (425) (12,381) (4,791)
-- (1) -- 14,649 90,931 -- (8) 349
-- -- -- -- -- -- -- 309
(2,088) (5,222) 14 (114,297) (539,640) 604 (3,131) (360)
------------------------------------------------------------------------------------------------------------------------------------
(121) (6,319) 15 (40,191) 65,005 179 (15,520) (4,493)
------------------------------------------------------------------------------------------------------------------------------------
$ (104) $ (5,841) $ 21 $(19,911) $ 85,405 $ 213 $(13,723) $ 2,425
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus Aspen
Janus Aspen Money
High-Yield Market
Portfolio Portfolio
-----------------------------
<S> <C>
$ 76 $ 2,066
-- --
-- --
-----------------------------
76 2,066
-----------------------------
6 83
2 3
53 35
5 7
15 --
-- --
10 2
-- 5
-- --
-- 5
-- 1
-----------------------------
91 141
-----------------------------
-- --
-----------------------------
91 141
-----------------------------
(83) --
-----------------------------
8 141
-----------------------------
68 1,925
-----------------------------
(1) --
-- --
-- --
(20) --
-----------------------------
(21) --
-----------------------------
$ 47 $ 1,925
-----------------------------
</TABLE>
Janus Aspen Series / June 30, 2000 57
<PAGE>
Statements of|Assets & Liabilities
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
Janus Aspen Aggressive Capital Janus Aspen
As of June 30, 2000 (unaudited) (all numbers in thousands Growth Growth Appreciation Balanced
except net asset value per share) Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments at cost $3,318,184 $3,836,444 $1,313,804 $2,912,716
Investments at value: $4,133,321 $5,055,369 $1,444,215 $3,192,962
Cash 925 6,227 652 406
Receivables:
Investments sold 31,449 19,139 -- 13,296
Portfolio shares sold 7,484 15,145 5,748 9,457
Dividends 292 8 31 838
Interest 177 17 37 25,322
Due from Advisor -- -- -- --
Other assets -- 6 1 1
Variation margin -- -- -- --
Forward currency contracts 548 -- -- 984
------------------------------------------------------------------------------------------------------------------------------------
Total Assets 4,174,196 5,095,911 1,450,684 3,243,266
------------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Investments purchased 67,056 4,044 -- 12,758
Portfolio shares repurchased 1,903 6,899 1,937 1,516
Advisory fees 2,158 2,625 737 1,689
Accrued expenses 159 189 142 110
------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 71,276 13,757 2,816 16,073
------------------------------------------------------------------------------------------------------------------------------------
Net Assets $4,102,920 $5,082,154 $1,447,868 $3,227,193
------------------------------------------------------------------------------------------------------------------------------------
Net Assets - Institutional Shares $3,910,688 $4,789,625 $1,004,169 $3,093,444
Shares Outstanding, $0.001 Par Value (unlimited shares authorized) 118,891 85,845 31,652 117,557
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 32.89 $ 55.79 $ 31.73 $ 26.31
------------------------------------------------------------------------------------------------------------------------------------
Net Assets - Retirement Shares $ 179,748 $ 264,389 $ 102,072 $ 126,096
Shares Outstanding, $0.001 Par Value (unlimited shares authorized) 5,478 4,822 3,229 4,774
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 32.82 $ 54.83 $ 31.61 $ 26.41
------------------------------------------------------------------------------------------------------------------------------------
Net Assets - Service Shares $ 12,484 $ 28,140 $ 341,627 $ 7,653
Shares Outstanding, $0.001 Par Value (unlimited shares authorized) 381 508 10,875 287
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 32.74 $ 55.38 $ 31.41 $ 26.68
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
58 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen Janus Aspen
Equity Growth and Strategic International Worldwide Global Global Flexible
Income Income Value Growth Growth Life Sciences Technology Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 15,827 $ 133,107 $ 2,129 $1,355,008 $6,676,483 $ 14,779 $ 375,640 $ 203,871
$ 18,986 $ 151,467 $ 2,143 $1,628,516 $9,091,133 $ 15,383 $ 372,453 $ 200,762
13 30 66 1,887 9,927 40 1,314 191
48 668 -- 13,040 53,476 273 1,524 368
26 462 10 16,292 24,835 169 3,263 257
9 34 -- 1,350 4,965 1 34 --
19 67 -- 25 142 1 684 3,442
-- -- -- -- -- -- -- --
2 -- 3 -- 5 5 -- --
-- -- -- -- -- -- -- --
10 -- -- 1,654 3,221 -- 55 8
------------------------------------------------------------------------------------------------------------------------------------
19,113 152,728 2,222 1,662,764 9,187,704 15,872 379,327 205,028
------------------------------------------------------------------------------------------------------------------------------------
103 902 46 23,202 44,567 965 12,827 4,534
-- 38 -- 1,296 5,635 201 244 158
10 79 1 847 4,810 5 173 105
32 20 2 178 517 4 66 40
------------------------------------------------------------------------------------------------------------------------------------
145 1,039 49 25,523 55,529 1,175 13,310 4,837
------------------------------------------------------------------------------------------------------------------------------------
$ 18,968 $ 151,689 $ 2,173 $1,637,241 $9,132,175 $ 14,697 $ 366,017 $ 200,191
------------------------------------------------------------------------------------------------------------------------------------
$ 17,515 $ 134,665 $ 2,163 $1,307,787 $8,729,092 $ 4,912 $ 65,225 $ 199,382
739 6,841 214 32,948 181,741 569 6,637 17,725
------------------------------------------------------------------------------------------------------------------------------------
$ 23.71 $ 19.68 $ 10.10 $ 39.69 $ 48.03 $ 8.63 $ 9.83 $ 11.25
------------------------------------------------------------------------------------------------------------------------------------
$ 1,423 $ 13,463 N/A $ 44,259 $ 388,881 N/A N/A $ 797
61 688 N/A 1,118 8,139 N/A N/A 69
------------------------------------------------------------------------------------------------------------------------------------
$ 23.41 $ 19.57 N/A $ 39.58 $ 47.48 N/A N/A $ 11.50
------------------------------------------------------------------------------------------------------------------------------------
$ 30 $ 3,561 $ 10 $ 285,195 $ 14,202 $ 9,785 $ 300,792 $ 12
1 182 1 7,247 297 1,135 30,638 1
------------------------------------------------------------------------------------------------------------------------------------
$ 23.53 $ 19.55 $ 10.09 $ 39.35 $ 47.76 $ 8.62 $ 9.82 $ 11.24
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Janus Aspen
Janus Aspen Money
High-Yield Market
Portfolio Portfolio
----------------------------
<S> <C>
$ 1,545 $ 63,115
$ 1,504 $ 63,115
94 2
149 --
-- 1,359
-- --
34 732
4 --
1 --
-- --
-- --
----------------------------
1,786 65,208
----------------------------
124 --
-- --
-- 15
30 22
----------------------------
154 37
----------------------------
$ 1,632 $ 65,171
----------------------------
$ 1,609 $ 60,285
155 60,285
----------------------------
$ 10.41 $ 1.00
----------------------------
$ 13 $ 4,876
1 4,876
----------------------------
$ 10.63 $ 1.00
----------------------------
$ 10 $ 10
1 10
----------------------------
$ 10.40 $ 1.00
----------------------------
</TABLE>
Janus Aspen Series / June 30, 2000 59
<PAGE>
Statements of|Changes in Net Assets
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
For the six months or period ended June 30 (unaudited) Growth Aggressive Growth
and for the fiscal year ended December 31 Portfolio Portfolio
(all numbers in thousands) 2000 1999 2000 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 3,151 $ 5,209 $ (9,856) $ (7,523)
Net realized gain/(loss) from investment transactions 134,994 155,359 148,412 392,796
Change in unrealized net appreciation or depreciation
of investments and foreign currency (88,520) 582,872 (177,003) 1,148,333
------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 49,625 743,440 (38,447) 1,533,606
------------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (2,283) (4,543) -- --
Net realized gain from investment transactions* (155,582) (9,036) (394,160) (52,162)
Distributions (in excess of realized gains)* -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (157,865) (13,579) (394,160) (52,162)
------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 1,028,062 1,298,997 1,912,935 1,695,094
Retirement Shares 135,521 52,393 255,105 34,652
Service Shares 12,287 -- 26,661 --
Reinvested dividends and distributions
Institutional Shares 150,647 13,566 371,828 52,029
Retirement Shares 6,777 13 20,369 133
Service Shares 441 -- 1,963 --
Shares repurchased
Institutional Shares (108,963) (194,056) (408,229) (665,828)
Retirement Shares (15,566) (2,358) (33,403) (2,937)
Service Shares (29) -- (15) --
------------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 1,209,177 1,168,555 2,147,214 1,113,143
------------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 1,100,937 1,898,416 1,714,607 2,594,587
Net Assets:
Beginning of period 3,001,983 1,103,567 3,367,547 772,960
------------------------------------------------------------------------------------------------------------------------------------
End of period $ 4,102,920 $ 3,001,983 $ 5,082,154 $ 3,367,547
------------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 3,150,734 $ 1,941,557 $ 3,735,612 $ 1,588,397
Undistributed net investment income/(loss)* 1,732 864 (9,858) (2)
Undistributed net realized gain/(loss) from investments* 134,775 155,363 137,478 383,226
Unrealized appreciation/(depreciation) of investments
and foreign currency 815,679 904,199 1,218,922 1,395,926
------------------------------------------------------------------------------------------------------------------------------------
$ 4,102,920 $ 3,001,983 $ 5,082,154 $ 3,367,547
------------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares - Institutional Shares
Shares sold 29,976 47,425 30,014 45,266
Reinvested dividends and distributions 4,651 486 6,826 1,555
------------------------------------------------------------------------------------------------------------------------------------
Total 34,627 47,911 36,840 46,821
------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (3,193) (7,339) (6,603) (19,177)
Net Increase/(Decrease) in Portfolio Shares 31,434 40,572 30,237 27,644
Shares Outstanding, Beginning of Period 87,457 46,885 55,608 27,964
------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 118,891 87,457 85,845 55,608
------------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares - Retirement Shares(2)
Shares sold 3,960,649 1,844,663 4,179,391 872,484
Reinvested dividends and distributions 209,753 475 380,437 4,023
------------------------------------------------------------------------------------------------------------------------------------
Total 4,170,402 1,845,138 4,559,828 876,507
------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (457,410) (81,361) (551,726) (63,544)
Net Increase/(Decrease) in Portfolio Shares 3,712,992 1,763,777 4,008,102 812,963
Shares Outstanding, Beginning of Period 1,764,531 754 813,583 620
------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 5,477,523 1,764,531 4,821,685 813,583
------------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares - Service Shares(2)
Shares sold 368,491 -- 472,051 --
Reinvested dividends and distributions 13,688 -- 36,313 --
------------------------------------------------------------------------------------------------------------------------------------
Total 382,179 -- 508,364 --
------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (911) -- (247) --
Net Increase/(Decrease) in Portfolio Shares 381,268 -- 508,117 --
Shares Outstanding, Beginning of Period -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 381,268 -- 508,117 --
------------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 1,786,089 $ 1,792,760 $ 3,650,546 $ 2,594,856
Proceeds from sales of securities 834,347 845,225 2,021,203 1,580,979
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..
See Notes to Financial Statements.
60 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Janus Aspen
Capital Appreciation Balanced Equity Income
Portfolio Portfolio Portfolio
2000 1999 2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 6,476 $ 1,957 $ 44,989 $ 46,012 $ 17 $ 45
(17,647) 3,659 74,206 180,516 1,967 2,279
(59,757) 169,996 (98,725) 185,339 (2,088) 2,881
-------------------------------------------------------------------------------------------------------
(70,928) 175,612 20,470 411,867 (104) 5,205
-------------------------------------------------------------------------------------------------------
(3,146) (1,635) (23,806) (42,435) (13) (38)
(586) -- (179,798) -- (2,281) (59)
-- -- -- -- -- --
-------------------------------------------------------------------------------------------------------
(3,732) (1,635) (203,604) (42,435) (2,294) (97)
-------------------------------------------------------------------------------------------------------
460,796 425,454 660,464 1,279,277 2,953 9,006
90,516 21,310 92,336 34,954 1,065 382
376,085 -- 7,656 -- 29 --
3,551 1,635 195,733 41,850 2,117 97
41 -- 7,469 585 173 --
140 -- 403 -- 4 --
(35,480) (44,052) (40,389) (112,729) (4,300) (4,176)
(6,227) (2,391) (19,896) (6,449) (114) (15)
(17,034) -- (126) -- -- --
-------------------------------------------------------------------------------------------------------
872,388 401,956 903,650 1,237,488 1,927 5,294
-------------------------------------------------------------------------------------------------------
797,728 575,933 720,516 1,606,920 (471) 10,402
650,140 74,207 2,506,677 899,757 19,439 9,037
-------------------------------------------------------------------------------------------------------
$ 1,447,868 $ 650,140 $ 3,227,193 $ 2,506,677 $ 18,968 $ 19,439
-------------------------------------------------------------------------------------------------------
$ 1,332,292 $ 459,904 $ 2,846,974 $ 1,943,324 $ 13,819 $ 11,892
3,686 356 25,287 4,104 15 11
(18,521) (288) 73,702 179,294 1,964 2,278
130,411 190,168 281,230 379,955 3,170 5,258
-------------------------------------------------------------------------------------------------------
$ 1,447,868 $ 650,140 $ 3,227,193 $ 2,506,677 $ 18,968 $ 19,439
-------------------------------------------------------------------------------------------------------
13,709 16,966 23,608 51,595 109 405
113 55 7,511 1,581 91 4
-------------------------------------------------------------------------------------------------------
13,822 17,021 31,119 53,176 200 409
-------------------------------------------------------------------------------------------------------
(1,064) (1,847) (1,442) (4,522) (156) (179)
12,758 15,174 29,677 48,654 44 230
18,894 3,720 87,880 39,226 695 465
-------------------------------------------------------------------------------------------------------
31,652 18,894 117,557 87,880 739 695
-------------------------------------------------------------------------------------------------------
2,705,159 805,168 3,290,697 1,385,492 40,312 16,783
1,320 -- 285,501 22,009 7,510 5
-------------------------------------------------------------------------------------------------------
2,706,479 805,168 3,576,198 1,407,501 47,822 16,788
-------------------------------------------------------------------------------------------------------
(190,217) (93,123) (713,930) (259,945) (4,181) (662)
2,516,262 712,045 2,862,268 1,147,556 43,641 16,126
713,045 1,000 1,911,699 764,143 17,139 1,013
-------------------------------------------------------------------------------------------------------
3,229,307 713,045 4,773,967 1,911,699 60,780 17,139
-------------------------------------------------------------------------------------------------------
11,408,589 -- 276,031 -- 1,113 --
4,481 -- 15,255 -- 158 --
-------------------------------------------------------------------------------------------------------
11,413,070 -- 291,286 -- 1,271 --
-------------------------------------------------------------------------------------------------------
(537,957) -- (4,465) -- -- --
10,875,113 -- 286,821 -- 1,271 --
-- -- -- -- -- --
-------------------------------------------------------------------------------------------------------
10,875,113 -- 286,821 -- 1,271 --
-------------------------------------------------------------------------------------------------------
$ 540,248,526 $ 380,037 $ 1,087,170 $ 2,132,273 $ 7,552 $ 20,547
57,785,240 105,924 762,629 1,209,464 8,972 16,287
-- -- 185,225 479,559 -- --
-- -- -- 199,818 -- --
<CAPTION>
Janus Aspen Janus Aspen
Growth and Income Strategic Value
Portfolio Portfolio
2000 1999 2000(1)
--------------------------------------------------
<S> <C> <C>
$ 478 $ 165 $ 6
(1,097) 2,395 1
(5,222) 22,577 14
--------------------------------------------------
(5,841) 25,137 21
--------------------------------------------------
(202) (137) --
(2,330) -- --
-- -- --
--------------------------------------------------
(2,532) (137) --
--------------------------------------------------
61,104 59,997 2,416
8,870 6,207 --
3,552 -- 10
2,274 137 --
208 -- --
50 -- --
(5,609) (5,500) (273)
(1,834) (804) --
(15) -- (1)
--------------------------------------------------
68,600 60,037 2,152
--------------------------------------------------
60,227 85,037 2,173
91,462 6,425 --
--------------------------------------------------
$ 151,689 $ 91,462 $ 2,173
--------------------------------------------------
$ 134,174 $ 65,574 $ 2,152
306 30 6
(1,151) 2,276 1
18,360 23,582 14
--------------------------------------------------
$ 151,689 $ 91,462 $ 2,173
--------------------------------------------------
2,928 3,889 242
117 7 --
--------------------------------------------------
3,045 3,896 242
--------------------------------------------------
(271) (365) (28)
2,774 3,531 214
4,067 536 --
--------------------------------------------------
6,841 4,067 214
--------------------------------------------------
427,229 392,132 N/A
10,762 -- N/A
--------------------------------------------------
437,991 392,132 N/A
--------------------------------------------------
(87,799) (55,446) N/A
350,192 336,686 N/A
337,686 1,000 N/A
--------------------------------------------------
687,878 337,686 N/A
--------------------------------------------------
180,224 -- 1,000
2,604 -- --
--------------------------------------------------
182,828 -- 1,000
--------------------------------------------------
(725) -- --
182,103 -- 1,000
-- -- --
--------------------------------------------------
182,103 -- 1,000
--------------------------------------------------
$ 69,747 $ 60,532 $ 1,313
16,485 15,498 34
-- -- --
-- -- --
</TABLE>
(1) Period May 1, 2000 (inception) to June 30, 2000.
(2) Transactions in Portfolio Shares - Retirement and Service Shares numbers
are not in thousands.
Janus Aspen Series / June 30, 2000 61
<PAGE>
Statements of|Changes in Net Assets (continued)
<TABLE>
<CAPTION>
For the six months or period ended June 30 (unaudited) Janus Aspen Janus Aspen
and for the fiscal year ended December 31 International Growth Worldwide Growth
(all numbers in thousands) Portfolio Portfolio
2000 1999 2000 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) $ 20,280 $ 1,093 $ 20,400 $ 7,750
Net realized gain/(loss) from investment transactions 74,106 9,375 604,645 191,001
Change in unrealized net appreciation or depreciation of
investments and foreign currency (114,297) 333,771 (539,640) 2,184,175
------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations (19,911) 344,239 85,405 2,382,926
------------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (3,284) (1,019) (10,729) (6,818)
Net realized gain from investment transactions* -- -- (118,826) --
Distributions (in excess of realized gains)* -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (3,284) (1,019) (129,555) (6,818)
------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Institutional Shares 1,049,036 438,134 2,768,939 2,167,550
Retirement Shares 35,792 12,225 290,161 137,824
Service Shares 355,221 -- 14,325 --
Reinvested dividends and distributions
Institutional Shares 3,284 1,018 124,421 6,818
Retirement Shares -- 1 4,963 --
Service Shares -- -- 171 --
Shares repurchased
Institutional Shares (543,505) (277,609) (624,094) (898,433)
Retirement Shares (8,553) (738) (73,303) (14,907)
Service Shares (58,217) -- (430) --
------------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 833,058 173,031 2,505,153 1,398,852
------------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 809,863 516,251 2,461,003 3,774,960
Net Assets:
Beginning of period 827,378 311,127 6,671,172 2,896,212
------------------------------------------------------------------------------------------------------------------------------------
End of period $ 1,637,241 $ 827,378 $ 9,132,175 $ 6,671,172
------------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in surplus)* $ 1,279,301 $ 446,243 $ 6,113,345 $ 3,608,193
Undistributed net investment income/(loss)* 17,165 169 10,743 1,072
Undistributed net realized gain/(loss) from investments* 65,624 (8,482) 590,289 104,470
Unrealized appreciation/(depreciation) of investments
and foreign currency 275,151 389,448 2,417,798 2,957,437
------------------------------------------------------------------------------------------------------------------------------------
$ 1,637,241 $ 827,378 $ 9,132,175 $ 6,671,172
------------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares - Institutional Shares
Shares sold 25,295 17,341 55,679 62,563
Reinvested dividends and distributions 83 44 2,625 209
------------------------------------------------------------------------------------------------------------------------------------
Total 25,378 17,385 58,304 62,772
------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (13,385) (11,053) (12,612) (26,096)
Net Increase/(Decrease) in Portfolio Shares 11,993 6,332 45,692 36,676
Shares Outstanding, Beginning of Period 20,955 14,623 136,049 99,373
------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 32,948 20,955 181,741 136,049
------------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares - Retirement Shares(2)
Shares sold 889,679 466,618 5,850,674 3,868,907
Reinvested dividends and distributions -- 40 105,249 --
------------------------------------------------------------------------------------------------------------------------------------
Total 889,679 466,658 5,955,923 3,868,907
------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (212,006) (26,923) (1,483,200) (403,114)
Net Increase/(Decrease) in Portfolio Shares 677,673 439,735 4,472,723 3,465,793
Shares Outstanding, Beginning of Period 440,543 808 3,666,659 200,866
------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 1,118,216 440,543 8,139,382 3,666,659
------------------------------------------------------------------------------------------------------------------------------------
Transactions in Portfolio Shares - Service Shares(2)
Shares sold 8,716,166 -- 303,032 --
Reinvested dividends and distributions -- -- 3,621 --
------------------------------------------------------------------------------------------------------------------------------------
Total 8,716,166 -- 306,653 --
------------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (1,468,904) -- (9,320) --
Net Increase/(Decrease) in Portfolio Shares 7,247,262 -- 297,333 --
Shares Outstanding, Beginning of Period -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 7,247,262 -- 297,333 --
------------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 875,551 $ 446,784 $ 3,653,837 $ 3,549,960
Proceeds from sales of securities 295,081 325,107 1,774,477 2,490,945
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 January 18, 2000 (inception) to June 30, 2000
(2) Transactions in Portfolio Shares - Retirement and Service Shares numbers
are not in thousands.
See Notes to Financial Statements.
62 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen
Global Life Global Janus Aspen Janus Aspen Janus Aspen
Sciences Technology Flexible Income High-Yield Money Market
Portfolio Portfolio Portfolio Portfolio Portfolio
2000(1) 2000(1) 2000 1999 2000 1999 2000 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 34 $ 1,797 $ 6,918 $ 11,300 $ 68 $ 207 $ 1,925 $ 2,717
(425) (12,389) (4,133) (3,338) (1) (113) -- 3
604 (3,131) (360) (5,120) (20) 55 -- --
------------------------------------------------------------------------------------------------------------------------------------
213 (13,723) 2,425 2,842 47 149 1,925 2,720
------------------------------------------------------------------------------------------------------------------------------------
-- -- (5,367) (11,043) (56) (209) (1,925) (2,717)
-- -- -- (977) -- -- -- (3)
-- -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
-- -- (5,367) (12,020) (56) (209) (1,925) (2,720)
------------------------------------------------------------------------------------------------------------------------------------
11,965 78,714 37,171 92,026 1,039 1,725 125,752 211,038
-- -- 299 872 -- -- 13,598 1,225
9,994 321,901 12 -- 10 -- 10 --
-- -- 5,344 12,003 55 208 1,806 2,713
-- -- 23 17 1 1 117 7
-- -- -- -- -- -- -- --
(6,969) (9,607) (26,884) (37,764) (1,096) (3,230) (136,539) (183,175)
-- -- (355) (47) -- -- (9,992) (90)
(506) (11,268) -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
14,484 379,740 15,610 67,107 9 (1,296) (5,248) 31,718
------------------------------------------------------------------------------------------------------------------------------------
14,697 366,017 12,668 57,929 -- (1,356) (5,248) 31,718
-- -- 187,523 129,594 1,632 2,988 70,419 38,701
------------------------------------------------------------------------------------------------------------------------------------
$ 14,697 $ 366,017 $ 200,191 $ 187,523 $ 1,632 $ 1,632 $ 65,171 $ 70,419
------------------------------------------------------------------------------------------------------------------------------------
$ 14,484 $ 379,740 $ 208,866 $ 193,256 $ 1,820 $ 1,811 $ 65,171 $ 70,419
34 1,797 1,943 392 18 6 -- --
(425) (12,389) (7,517) (3,384) (165) (164) -- --
604 (3,131) (3,101) (2,741) (41) (21) -- --
------------------------------------------------------------------------------------------------------------------------------------
$ 14,697 $ 366,017 $ 200,191 $ 187,523 $ 1,632 $ 1,632 $ 65,171 $ 70,419
------------------------------------------------------------------------------------------------------------------------------------
1,413 7,594 3,243 7,752 98 156 125,752 211,038
-- -- 475 1,047 5 20 1,806 2,713
------------------------------------------------------------------------------------------------------------------------------------
1,413 7,594 3,718 8,799 103 176 127,558 213,751
------------------------------------------------------------------------------------------------------------------------------------
(844) (957) (2,350) (3,192) (103) (295) (136,539) (183,175)
569 6,637 1,368 5,607 -- (119) (8,981) 30,576
-- -- 16,357 10,750 155 274 69,266 38,690
------------------------------------------------------------------------------------------------------------------------------------
569 6,637 17,725 16,357 155 155 60,285 69,266
------------------------------------------------------------------------------------------------------------------------------------
N/A N/A 25,491 73,392 -- -- 13,597,930 1,224,357
N/A N/A 1,989 1,470 37 83 117,476 7,522
------------------------------------------------------------------------------------------------------------------------------------
N/A N/A 27,480 74,862 37 83 13,715,406 1,231,879
------------------------------------------------------------------------------------------------------------------------------------
N/A N/A (30,033) (4,008) -- -- (9,992,227) (89,650)
N/A N/A (2,553) 70,854 37 83 3,723,179 1,142,229
N/A N/A 71,843 989 1,122 1,039 1,153,031 10,802
------------------------------------------------------------------------------------------------------------------------------------
N/A N/A 69,290 71,843 1,159 1,122 4,876,210 1,153,031
------------------------------------------------------------------------------------------------------------------------------------
1,195,211 31,836,650 1,039 -- 960 -- 10,001 --
-- -- 27 -- 30 -- 278 --
------------------------------------------------------------------------------------------------------------------------------------
1,195,211 31,836,650 1,066 -- 990 -- 10,279 --
------------------------------------------------------------------------------------------------------------------------------------
(60,293) (1,199,032) -- -- -- -- (1) --
1,134,918 30,637,618 1,066 -- 990 -- 10,278 --
-- -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
1,134,918 30,637,618 1,066 -- 990 -- 10,278 --
------------------------------------------------------------------------------------------------------------------------------------
$ 8,823 $ 319,438 $ 107,196 $ 203,810 $ 2,099 $ 12,244 -- --
4,031 16,679 114,963 134,399 1,989 13,089 -- --
-- -- 50,153 21,790 -- 50 -- --
-- -- 44,087 35,724 -- 148 -- --
</TABLE>
Janus Aspen Series / June 30, 2000 63
<PAGE>
Financial|Highlights - Institutional Shares
<TABLE>
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Growth Portfolio
or through each fiscal year ended December 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 33.65 $ 23.54 $ 18.48 $ 15.51 $ 13.45 $ 10.57
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .03 .07 .05 .15 .17 .28
Net gains/(losses) on securities
(both realized and unrealized) .53 10.24 6.36 3.34 2.29 2.90
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .56 10.31 6.41 3.49 2.46 3.18
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.02) (.06) (.05) (.15) (.17) (.30)
Distributions (from capital gains) (1.30) (.14) (1.30) (.37) (.23) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.32) (.20) (1.35) (.52) (.40) (.30)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 32.89 $ 33.65 $ 23.54 $ 18.48 $ 15.51 $ 13.45
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 1.72% 43.98% 35.66% 22.75% 18.45% 30.17%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 3,910,688 $ 2,942,649 $ 1,103,549 $ 608,281 $ 325,789 $ 126,911
Average Net Assets for the Period (in thousands) $ 3,492,998 $ 1,775,373 $ 789,454 $ 477,914 $ 216,125 $ 77,344
Ratio of Gross Expenses to Average Net Assets**(1) 0.67% 0.67% 0.68% 0.70% 0.69% 0.78%
Ratio of Net Expenses to Average Net Assets**(1) 0.67% 0.67% 0.68% 0.69% 0.69% 0.76%
Ratio of Net Investment Income to Average Net Assets** 0.19% 0.30% 0.26% 0.91% 1.39% 1.24%
Portfolio Turnover Rate** 51% 53% 73% 122% 87% 185%
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Aggressive Growth Portfolio
or through each fiscal year ended December 31 2000 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 59.70 $ 27.64 $ 20.55 $ 18.24 $ 17.08 $ 13.62
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.11) -- -- -- -- .24
Net gains/(losses) on securities
(both realized and unrealized) .91 33.46 7.09 2.31 1.36 3.47
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .80 33.46 7.09 2.31 1.36 3.71
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- -- -- (.25)
Distributions (from capital gains) (4.71) (1.40) -- -- (.19) --
Tax return of capital -- -- -- -- (.01) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (4.71) (1.40) -- -- (.20) (.25)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 55.79 $ 59.70 $ 27.64 $ 20.55 $ 18.24 $ 17.08
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 1.57% 125.40% 34.26% 12.66% 7.95% 27.48%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 4,789,625 $ 3,319,619 $ 772,943 $ 508,198 $ 383,693 $ 185,911
Average Net Assets for the Period (in thousands) $ 4,341,937 $ 1,476,445 $ 576,444 $ 418,464 $ 290,629 $ 107,582
Ratio of Gross Expenses to Average Net Assets**(1) 0.67% 0.70% 0.75% 0.76% 0.76% 0.86%
Ratio of Net Expenses to Average Net Assets**(1) 0.67% 0.69% 0.75% 0.76% 0.76% 0.84%
Ratio of Net Investment Income to Average Net Assets** (0.42%) (0.50)% (0.36)% (0.10)% (0.27)% 0.58%
Portfolio Turnover Rate** 94% 105% 132% 130% 88% 155%
</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.
See Notes to Financial Statements.
64 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Capital Appreciation Portfolio
or through each fiscal year or period ended December 31 2000 1999 1998 1997(1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 33.17 $ 19.94 $ 12.62 $ 10.00
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .16 .12 .01 .05
Net gains/(losses) on securities
(both realized and unrealized) (1.49) 13.22 7.32 2.61
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (1.33) 13.34 7.33 2.66
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.10) (.11) (.01) (.04)
Distributions (from capital gains) (.01) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.11) (.11) (.01) (.04)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 31.73 $ 33.17 $ 19.94 $ 12.62
------------------------------------------------------------------------------------------------------------------------------------
Total Return* (4.00%) 67.00% 58.11% 26.60%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,004,169 $ 626,611 $ 74,187 $ 6,833
Average Net Assets for the Period (in thousands) $ 838,440 $ 257,422 $ 25,964 $ 2,632
Ratio of Gross Expenses to Average Net Assets**(2) 0.68% 0.70% 0.92% 1.26%
Ratio of Net Expenses to Average Net Assets**(2) 0.68% 0.70% 0.91% 1.25%
Ratio of Net Investment Income to Average Net Assets** 1.30% 0.76% 0.27% 1.43%
Portfolio Turnover Rate** 15% 52% 91% 101%
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Balanced Portfolio
or through each fiscal year ended December 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 27.91 $ 22.50 $ 17.47 $ 14.77 $ 13.03 $ 10.63
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .37 .59 .39 .34 .32 .17
Net gains/(losses) on securities
(both realized and unrealized) (.19) 5.38 5.51 2.89 1.81 2.45
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .18 5.97 5.90 3.23 2.13 2.62
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.21) (.56) (.38) (.35) (.30) (.22)
Distributions (from capital gains) (1.57) -- (.45) (.18) (.09) --
Distributions (in excess of realized gains) -- -- (.04) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.78) (.56) (.87) (0.53) (.39) (.22)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 26.31 $ 27.91 $ 22.50 $ 17.47 $ 14.77 $ 13.03
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 0.71% 26.76% 34.28% 22.10% 16.18% 24.79%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 3,093,444 $ 2,453,079 $ 882,495 $ 362,409 $ 85,480 $ 14,021
Average Net Assets for the Period (in thousands) $ 2,744,291 $ 1,583,635 $ 555,002 $ 176,432 $ 43,414 $ 5,739
Ratio of Gross Expenses to Average Net Assets**(2) 0.67% 0.69% 0.74% 0.83% 0.94% 1.37%
Ratio of Net Expenses to Average Net Assets**(2) 0.67% 0.69% 0.74% 0.82% 0.92% 1.30%
Ratio of Net Investment Income to Average Net Assets** 3.21% 2.86% 2.41% 2.87% 2.92% 2.41%
Portfolio Turnover Rate** 58% 92% 70% 139% 103% 149%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) Period May 1, 1997 (inception) to December 31, 1997.
(2) See footnote #5 in Notes to Financial Statements.
See Notes to Financial Statements.
Janus Aspen Series / June 30, 2000 65
<PAGE>
Financial|Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Equity Income Portfolio
or through each fiscal year or period ended December 31 2000 1999 1998 1997(1)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 27.32 $ 19.41 $ 13.46 $ 10.00
--------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .03 .07 .02 .01
Net gains/(losses) on securities
(both realized and unrealized) (.33) 7.99 6.16 3.46
--------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.30) 8.06 6.18 3.47
--------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.02) (.06) (.02) (.01)
Distributions (from capital gains) (3.29) (.09) (.21) --
--------------------------------------------------------------------------------------------------------------------
Total Distributions (3.31) (.15) (.23) (.01)
--------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.71 $ 27.32 $ 19.41 $ 13.46
--------------------------------------------------------------------------------------------------------------------
Total Return* (0.94%) 41.58% 46.24% 34.70%
--------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 17,515 $ 18,975 $ 9,017 $ 3,047
Average Net Assets for the Period (in thousands) $ 17,917 $ 14,663 $ 5,629 $ 1,101
Ratio of Gross Expenses to Average Net Assets**(2) 1.25% 1.25% 1.25% 1.25%
Ratio of Net Expenses to Average Net Assets**(2) 1.25% 1.25% 1.25% 1.25%
Ratio of Net Investment Income to Average Net Assets** 0.21% 0.31% 0.17% 0.35%
Portfolio Turnover Rate** 87% 114% 79% 128%
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Growth and Income Portfolio
or through each fiscal year or period ended December 31 2000 1999 1998(3)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.77 $ 11.96 $ 10.00
--------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .06 .04 .02
Net gains/(losses) on securities
(both realized and unrealized) (.81) 8.81 1.96
--------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.75) 8.85 1.98
--------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.03) (.04) (.02)
Distributions (from capital gains) (.31) -- --
--------------------------------------------------------------------------------------------------------------------
Total Distributions (.34) (.04) (.02)
--------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 19.68 $ 20.77 $ 11.96
--------------------------------------------------------------------------------------------------------------------
Total Return* (3.55%) 74.04% 19.80%
--------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 134,665 $ 84,480 $ 6,413
Average Net Assets for the Period (in thousands) $ 114,533 $ 28,838 $ 2,883
Ratio of Gross Expenses to Average Net Assets**(2) 0.75% 1.06% 1.25%
Ratio of Net Expenses to Average Net Assets**(2) 0.75% 1.05% 1.25%
Ratio of Net Investment Income to Average Net Assets** 0.81% 0.56% 0.66%
Portfolio Turnover Rate** 31% 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.
66 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Strategic Value Portfolio
For a share outstanding during the period ended June 30 (unaudited) 2000(1)
------------------------------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $ 10.00
------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .03
Net gains/(losses) on securities
(both realized and unrealized) .07
------------------------------------------------------------------------------------------------------
Total from Investment Operations .10
------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) --
Distributions (from capital gains) --
Distributions (in excess of realized gains) --
------------------------------------------------------------------------------------------------------
Total Distributions --
------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.10
------------------------------------------------------------------------------------------------------
Total Return* 1.00%
------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,163
Average Net Assets for the Period (in thousands) $ 1,457
Ratio of Gross Expenses to Average Net Assets**(2) 1.25%
Ratio of Net Expenses to Average Net Assets**(2) 1.25%
Ratio of Net Investment Income to Average Net Assets** 2.41%
Portfolio Turnover Rate** 19%
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen International Growth Portfolio
or through each fiscal year ended December 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 38.67 $ 21.27 $ 18.48 $ 15.72 $ 11.95 $ 9.72
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .51 .06 .13 .11 .05 .09
Net gains/(losses) on securities
(both realized and unrealized) .61 17.40 3.07 2.80 4.06 2.16
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.12 17.46 3.20 2.91 4.11 2.25
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.10) (.06) (.14) (.11) (.11) (.02)
Distributions (from capital gains) -- -- -- (.01) (.23) --
Distributions (in excess of realized gains) -- -- (.27) (.03) -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.10) (.06) (.41) (.15) (.34) (.02)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 39.69 $ 38.67 $ 21.27 $ 18.48 $ 15.72 $ 11.95
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.90% 82.27% 17.23% 18.51% 34.71% 23.15%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,307,787 $ 810,392 $ 311,110 $ 161,091 $ 27,192 $ 1,608
Average Net Assets for the Period (in thousands) $ 1,149,487 $ 425,876 $ 234,421 $ 96,164 $ 7,437 $ 1,792
Ratio of Gross Expenses to Average Net Assets**(2) 0.72% 0.77% 0.86% 0.96% 1.26% 2.69%
Ratio of Net Expenses to Average Net Assets**(2) 0.72% 0.76% 0.86% 0.96% 1.25% 2.50%
Ratio of Net Investment Income to Average Net Assets** 2.94% 0.26% 0.73% 0.70% 0.62% (.80)%
Portfolio Turnover Rate** 57% 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, 2000 (inception) to June 30, 2000.
(2) See footnote #5 in Notes to Financial Statements.
Janus Aspen Series / June 30, 2000 67
<PAGE>
Financial|Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Worldwide Growth Portfolio
or through each fiscal year ended December 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 47.75 $ 29.09 $ 23.39 $ 19.44 $ 15.31 $ 12.07
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .11 .07 .16 .16 .16 .11
Net gains/(losses) on securities
(both realized and unrealized) .87 18.65 6.59 4.14 4.27 3.19
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .98 18.72 6.75 4.30 4.43 3.30
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.06) (.06) (.18) (.17) (.17) (.06)
Dividends (in excess of net investment income) -- -- -- (.02) -- --
Distributions (from capital gains) (.64) -- -- (.16) (.13) --
Distributions (in excess of realized gains) -- -- (.87) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.70) (.06) (1.05) (.35) (.30) (.06)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 48.03 $ 47.75 $ 29.09 $ 23.39 $ 19.44 $ 15.31
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.06% 64.45% 28.92% 22.15% 29.04% 27.37%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 8,729,092 $ 6,496,773 $ 2,890,375 $ 1,576,548 $ 582,603 $ 108,563
Average Net Assets for the Period (in thousands) $ 7,997,185 $ 3,862,773 $ 2,217,695 $ 1,148,951 $ 304,111 $ 59,440
Ratio of Gross Expenses to Average Net Assets**(1) 0.70% 0.71% 0.72% 0.74% 0.80% 0.90%
Ratio of Net Expenses to Average Net Assets**(1) 0.69% 0.71% 0.72% 0.74% 0.80% 0.87%
Ratio of Net Investment Income to Average Net Assets** 0.51% 0.20% 0.64% 0.67% 0.83% 0.95%
Portfolio Turnover Rate** 50% 67% 77% 80% 62% 113%
<CAPTION>
Janus Aspen Global Life Sciences Portfolio
For a share outstanding during the period ended June 30 (unaudited) 2000(2)
--------------------------------------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $ 10.00
--------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .04
Net gains/(losses) on securities
(both realized and unrealized) (1.41)
--------------------------------------------------------------------------------------------------------------
Total from Investment Operations (1.37)
--------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) --
Distributions (from capital gains) --
Distributions (in excess of realized gains) --
--------------------------------------------------------------------------------------------------------------
Total Distributions --
--------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.63
--------------------------------------------------------------------------------------------------------------
Total Return* (13.70%)
--------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 4,912
Average Net Assets for the Period (in thousands) $ 2,764
Ratio of Gross Expenses to Average Net Assets**(1) 1.23%
Ratio of Net Expenses to Average Net Assets**(1) 1.23%
Ratio of Net Investment Income to Average Net Assets** 1.91%
Portfolio Turnover Rate** 308%
</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 January 18, 2000 (inception) to June 30, 2000.
See Notes to Financial Statements.
68 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Global Technology Portfolio
For a share outstanding during the period ended June 30 (unaudited) 2000(1)
-----------------------------------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $ 10.00
-----------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .08
Net gains/(losses) on securities
(both realized and unrealized) (.25)
-----------------------------------------------------------------------------------------------------------
Total from Investment Operations (.17)
-----------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) --
Distributions (from capital gains) --
Distributions (in excess of realized gains) --
-----------------------------------------------------------------------------------------------------------
Total Distributions --
-----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.83
-----------------------------------------------------------------------------------------------------------
Total Return* (1.70%)
-----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 65,225
Average Net Assets for the Period (in thousands) $ 52,257
Ratio of Gross Expenses to Average Net Assets**(2) 0.70%
Ratio of Net Expenses to Average Net Assets**(2) 0.70%
Ratio of Net Investment Income to Average Net Assets** 2.33%
Portfolio Turnover Rate** 22%
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Flexible Income Portfolio
or through each fiscal year ended December 31 2000 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 11.41 $ 12.05 $ 11.78 $ 11.24 $ 11.11 $ 9.48
------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .40 .76 .64 .67 .74 .53
Net gains/(losses) on securities
(both realized and unrealized) (.25) (.58) .41 .62 .24 1.70
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .15 .18 1.05 1.29 .98 2.23
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.31) (.75) (.67) (.64) (.72) (.60)
Distributions (from capital gains) -- (.07) (.11) (.11) (.13) --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.31) (.82) (.78) (.75) (.85) (.60)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.25 $ 11.41 $ 12.05 $ 11.78 $ 11.24 $ 11.11
------------------------------------------------------------------------------------------------------------------------------------
Total Return* 1.23% 1.60% 9.11% 11.76% 9.19% 23.86%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 199,382 $ 186,681 $ 129,582 $ 54,098 $ 25,315 $ 10,831
Average Net Assets for the Period (in thousands) $ 189,995 $ 161,459 $ 86,627 $ 36,547 $ 17,889 $ 5,556
Ratio of Gross Expenses to Average Net Assets**(2) 0.78% 0.72% 0.73% 0.75% 0.84% 1.07%
Ratio of Net Expenses to Average Net Assets**(2) 0.78% 0.72% 0.73% 0.75% 0.83% 1.00%
Ratio of Net Investment Income to Average Net Assets** 7.29% 6.99% 6.36% 6.90% 7.31% 7.46%
Portfolio Turnover Rate** 197% 116% 145% 119% 250% 236%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) Period January 18, 2000 (inception) to June 30, 2000.
(2) See footnote #5 in Notes to Financial Statements.
Janus Aspen Series / June 30, 2000 69
<PAGE>
Financial|Highlights - Institutional Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen High-Yield Portfolio
or through each fiscal year or period ended December 31 2000 1999 1998 1997 1996(1)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.45 $ 10.85 $ 11.78 $ 10.83 $ 10.00
----------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .46 1.14 .87 .70 .43
Net gains/(losses) on securities
(both realized and unrealized) (.13) (.41) (.70) .99 .80
----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .33 .73 .17 1.69 1.23
----------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.37) (1.13) (.89) (.68) (.40)
Distributions (from capital gains) -- -- (.05) (.06) --
Distributions (in excess of realized gains) -- -- (.16) -- --
----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.37) (1.13) (1.10) (.74) (.40)
----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.41 $ 10.45 $ 10.85 $ 11.78 $ 10.83
----------------------------------------------------------------------------------------------------------------------------
Total Return* 3.06% 6.85% 1.26% 15.98% 12.40%
----------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,609 $ 1,620 $ 2,977 $ 2,914 $ 783
Average Net Assets for the Period (in thousands) $ 1,602 $ 2,448 $ 3,281 $ 1,565 $ 459
Ratio of Gross Expenses to Average Net Assets**(2) 1.00% 1.00% 1.00% 1.00% 1.01%
Ratio of Net Expenses to Average Net Assets**(2) 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of Net Investment Income to Average Net Assets** 8.43% 8.41% 7.76% 7.98% 5.74%
Portfolio Turnover Rate** 288% 554% 301% 299% 301%
<CAPTION>
For a share outstanding during the six months ended June 30 (unaudited) Janus Aspen Money Market Portfolio
or through each fiscal year or period ended December 31 2000 1999 1998 1997 1996 1995(3)
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .03 .05 .05 .05 .05 .04
Net gains/(losses) on securities
(both realized and unrealized) -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .05 .05 .05 .05 .04
------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.03) (.05) (.05) (.05) (.05) (.04)
Distributions (from capital gains) -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.03) (.05) (.05) (.05) (.05) (.04)
------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------
Total Return* 2.95% 4.98% 5.36% 5.17% 5.05% 3.63%
------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 60,285 $ 69,266 $ 38,690 $ 15,374 $ 6,106 $ 1,735
Average Net Assets for the Period (in thousands) $ 62,052 $ 54,888 $ 31,665 $ 8,926 $ 3,715 $ 1,543
Ratio of Gross Expenses to Average Net Assets**(2) 0.39% 0.43% 0.34% 0.50% 0.50% 0.50%
Ratio of Net Expenses to Average Net Assets**(2) 0.39% 0.43% 0.34% 0.50% 0.50% 0.50%
Ratio of Net Investment Income to Average Net Assets** 5.85% 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, 1996 (inception) to December 31, 1996.
(2) See footnote #5 in Notes to Financial Statements.
(3) Period May 1, 1995 (inception) to December 31, 1995.
See Notes to Financial Statements.
70 Janus Aspen Series / June 30, 2000
<PAGE>
Financial|Highlights - Retirement Shares
<TABLE>
<CAPTION>
For a share outstanding during the six months Janus Aspen Growth Portfolio
ended June 30 (unaudited) or through
each fiscal year or period ended December 31 2000 1999 1998 1997(1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 33.63 $ 23.45 $ 18.46 $ 16.18
---------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.02) .07 (.03) .04
Net gains/(losses) on securities (both realized and unrealized) .51 10.25 6.32 2.71
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .49 10.32 6.29 2.75
---------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- (.10)
Distributions (from capital gains) (1.30) (.14) (1.30) (.37)
---------------------------------------------------------------------------------------------------------------------
Total Distributions (1.30) (.14) (1.30) (.47)
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 32.82 $ 33.63 $ 23.45 $ 18.46
---------------------------------------------------------------------------------------------------------------------
Total Return* 1.52% 44.12% 34.99% 17.22%
---------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 179,748 $ 59,334 $ 18 $ 12
Average Net Assets for the Period (in thousands) $ 117,244 $ 12,209 $ 13 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.17% 1.17% 1.18% 1.20%
Ratio of Net Expenses to Average Net Assets**(2) 1.17% 1.17% 1.18% 1.20%
Ratio of Net Investment Income/(Loss) to Average Net Assets** (0.33%) (0.25)% (0.23)% 0.29%
Portfolio Turnover Rate** 51% 53% 73% 122%
<CAPTION>
Janus Aspen
For a share outstanding during the six months Aggressive Growth Portfolio
ended June 30 (unaudited) or through
each fiscal year or period ended December 31 2000 1999 1998 1997(1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 58.91 $ 27.42 $ 20.49 $ 16.12
---------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.16) .19 (.12) (.06)
Net gains/(losses) on securities (both realized and unrealized) .79 32.70 7.05 4.43
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .63 32.89 6.93 4.37
---------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- --
Distributions (from capital gains) (4.71) (1.40) -- --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (4.71) (1.40) -- --
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 54.83 $ 58.91 $ 27.42 $ 20.49
---------------------------------------------------------------------------------------------------------------------
Total Return* 1.27% 124.34% 33.58% 27.11%
---------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 264,389 $ 47,928 $ 17 $ 13
Average Net Assets for the Period (in thousands) $ 139,343 $ 9,786 $ 14 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.17% 1.19% 1.26% 1.32%
Ratio of Net Expenses to Average Net Assets**(2) 1.17% 1.19% 1.26% 1.32%
Ratio of Net Investment Income/(Loss) to Average Net Assets** (1.06%) (1.00)% (0.86)% (0.62)%
Portfolio Turnover Rate** 94% 105% 132% 130%
<CAPTION>
For a share outstanding during the six months Janus Aspen Capital
ended June 30 (unaudited) or through Appreciation Portfolio
each fiscal year or period ended December 31 2000 1999 1998 1997(1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 33.00 $ 19.86 $ 12.62 $ 10.00
---------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .07 (.08) (.04) .12
Net gains/(losses) on securities (both realized and unrealized) (1.45) 13.22 7.28 2.50
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (1.38) 13.14 7.24 2.62
---------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- --
Distributions (from capital gains) (.01) -- -- --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.01) -- -- --
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 31.61 $ 33.00 $ 19.86 $ 12.62
---------------------------------------------------------------------------------------------------------------------
Total Return* (4.17%) 66.16% 57.37% 26.20%
---------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 102,072 $ 23,529 $ 20 $ 13
Average Net Assets for the Period (in thousands) $ 57,826 $ 4,402 $ 15 $ 12
Ratio of Gross Expenses to Average Net Assets**(2) 1.18% 1.19% 1.44% 1.73%
Ratio of Net Expenses to Average Net Assets**(2) 1.18% 1.19% 1.44% 1.73%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 0.87% 0.23% (0.25)% 1.55%
Portfolio Turnover Rate** 15% 52% 91% 101%
For a share outstanding during the six months Janus Aspen
ended June 30 (unaudited) or through Balanced Portfolio
each fiscal year or period ended December 31 2000 1999 1998 1997(1)
Net Asset Value, Beginning of Period $ 28.04 $ 22.59 $ 17.47 $ 15.38
Income from Investment Operations:
Net investment income/(loss) .24 .46 .21 .27
Net gains/(losses) on securities (both realized and unrealized) (.13) 5.41 5.58 2.30
Total from Investment Operations .11 5.87 5.79 2.57
Less Distributions:
Dividends (from net investment income) (.17) (.42) (.18) (.30)
Distributions (from capital gains) (1.57) -- (.49) (.18)
Total Distributions (1.74) (.42) (.67) (.48)
Net Asset Value, End of Period $ 26.41 $ 28.04 $ 22.59 $ 17.47
Total Return* 0.50% 26.13% 33.59% 16.92%
Net Assets, End of Period (in thousands) $ 126,096 $ 53,598 $ 17,262 $ 12
Average Net Assets for the Period (in thousands) $ 89,571 $ 28,498 $ 3,650 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.17% 1.19% 1.24% 1.32%
Ratio of Net Expenses to Average Net Assets**(2) 1.17% 1.19% 1.24% 1.32%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 2.69% 2.36% 2.04% 2.38%
Portfolio Turnover Rate** 58% 92% 70% 139%
</TABLE>
* Total return not annualized for periods of less than one full year.
** Annualized for periods of less than one full year.
(1) Period May 1, 1997 (inception) to December 31, 1997.
(2) See footnote #5 in Notes to Financial Statements.
See Notes to Financial Statements.
Janus Aspen Series / June 30, 2000 71
<PAGE>
Financial|Highlights - Retirement Shares (continued)
<TABLE>
<CAPTION>
For a share outstanding during the six months Janus Aspen Equity Income
ended June 30 (unaudited) or through Portfolio
each fiscal year or period ended December 31 2000 1999 1998 1997(1)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 27.07 $ 19.28 $ 13.42 $ 10.00
----------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.02) .03 (.05) .01
Net gains/(losses) on securities (both realized and unrealized) (.35) 7.85 6.12 3.41
----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.37) 7.88 6.07 3.42
----------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- -- --
Distributions (from capital gains) (3.29) (.09) (.21) --
----------------------------------------------------------------------------------------------------------------------
Total Distributions (3.29) (.09) (.21) --
----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.41 $ 27.07 $ 19.28 $ 13.42
----------------------------------------------------------------------------------------------------------------------
Total Return* (1.21%) 40.94% 45.55% 34.20%
----------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,423 $ 464 $ 20 $ 13
Average Net Assets for the Period (in thousands) $ 1,234 $ 128 $ 16 $ 12
Ratio of Gross Expenses to Average Net Assets**(2) 1.76% 1.78% 1.75% 1.74%
Ratio of Net Expenses to Average Net Assets**(2) 1.76% 1.77% 1.75% 1.74%
Ratio of Net Investment Income/(Loss) to Average Net Assets** (0.28%) (0.04)% (0.33)% 0.07%
Portfolio Turnover Rate** 87% 114% 79% 128%
<CAPTION>
For a share outstanding during the six months Janus Aspen Growth and
ended June 30 (unaudited) or through Income Portfolio
each fiscal year or period ended December 31 2000 1999 1998(3)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.68 $ 11.94 $ 10.00
--------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .02 (.01) .01
Net gains/(losses) on securities (both realized and unrealized) (.82) 8.75 1.93
--------------------------------------------------------------------------------------------------------
Total from Investment Operations (.80) 8.74 1.94
--------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- --
Distributions (from capital gains) (.31) -- --
--------------------------------------------------------------------------------------------------------
Total Distributions (.31) -- --
--------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 19.57 $ 20.68 $ 11.94
--------------------------------------------------------------------------------------------------------
Total Return* (3.86%) 73.20% 19.40%
--------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 13,464 $ 6,982 $ 12
Average Net Assets for the Period (in thousands) $ 10,894 $ 1,826 $ 10
Ratio of Gross Expenses to Average Net Assets**(2) 1.25% 1.53% 1.72%
Ratio of Net Expenses to Average Net Assets**(2) 1.25% 1.53% 1.72%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 0.32% 0.11% 0.21%
Portfolio Turnover Rate** 31% 59% 62%
<CAPTION>
For a share outstanding during the six months Janus Aspen International
ended June 30 (unaudited) or through Growth Portfolio
each fiscal year or period ended December 31 2000 1999 1998 1997(1)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 38.56 $ 21.27 $ 18.44 $ 16.80
--------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .42 -- .05 .04
Net gains/(losses) on securities (both realized and unrealized) .60 17.30 3.07 1.73
--------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.02 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 $ 39.58 $ 38.56 $ 21.27 $ 18.44
--------------------------------------------------------------------------------------------------------------------
Total Return* 2.67% 81.32% 16.86% 10.53%
--------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 44,259 $ 16,986 $ 17 $ 11
Average Net Assets for the Period (in thousands) $ 30,848 $ 3,738 $ 13 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.22% 1.25% 1.35% 1.45%
Ratio of Net Expenses to Average Net Assets**(2) 1.22% 1.24% 1.35% 1.45%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 3.04% (0.29)% 0.26% 0.26%
Portfolio Turnover Rate** 57% 80% 93% 86%
<CAPTION>
For a share outstanding during the six months Janus Aspen Worldwide
ended June 30 (unaudited) or through Growth Portfolio
each fiscal year or period ended December 31 2000 1999 1998 1997(1)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 47.56 $ 29.06 $ 23.36 $ 20.72
--------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .03 (.04) .02 .14
Net gains/(losses) on securities (both realized and unrealized) .83 18.54 6.57 2.80
--------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .86 18.50 6.59 2.94
--------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- -- (.02) (.14)
Distributions (from capital gains) (.64) -- (.87) (.16)
--------------------------------------------------------------------------------------------------------------------
Total Distributions (.64) -- (.89) (.30)
--------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 47.78 $ 47.56 $ 29.06 $ 23.36
--------------------------------------------------------------------------------------------------------------------
Total Return* 1.82% 63.66% 28.25% 14.22%
--------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 388,881 $ 174,399 $ 5,837 $ 403
Average Net Assets for the Period (in thousands) $ 49,424 $ 49,424 $ 1,742 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.20% 1.21% 1.22% 1.26%
Ratio of Net Expenses to Average Net Assets**(2) 1.20% 1.21% 1.22% 1.26%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 0.04% (0.34)% (0.02)% 0.16%
Portfolio Turnover Rate** 50% 67% 77% 80%
</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.
72 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding during the six months Janus Aspen Flexible Income
ended June 30 (unaudited) or through Portfolio
each fiscal year ended December 31 2000 1999 1998 1997(1)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 11.72 $ 12.05 $ 11.77 $ 11.41
----------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .41 .37 .73 .50
Net gains/(losses) on securities (both realized and unrealized) (.29) (.27) .27 .58
----------------------------------------------------------------------------------------------------------------
Total from Investment Operations .12 .10 1.00 1.08
----------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.34) (.36) (.61) (.61)
Distributions (from capital gains) -- (.07) (.11) (.11)
----------------------------------------------------------------------------------------------------------------
Total Distributions (.34) (.43) (.72) (.72)
----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.50 $ 11.72 $ 12.05 $ 11.77
----------------------------------------------------------------------------------------------------------------
Total Return* 1.03% 0.90% 8.58% 9.73%
----------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 797 $ 842 $ 12 $ 11
Average Net Assets for the Period (in thousands) $ 817 $ 250 $ 11 $ 10
Ratio of Gross Expenses to Average Net Assets**(2) 1.29% 1.20% 1.24% 1.23%
Ratio of Net Expenses to Average Net Assets**(2) 1.28% 1.20% 1.23% 1.23%
Ratio of Net Investment Income to Average Net Assets** 6.80% 6.80% 5.92% 6.39%
Portfolio Turnover Rate** 197% 116% 145% 119%
<CAPTION>
For a share outstanding during the six months Janus Aspen
ended June 30 (unaudited) or through High-Yield Portfolio
each fiscal year ended December 31 2000 1999 1998 1997(1)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.67 $ 10.84 $ 11.78 $ 11.19
----------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .44 .89 .87 .59
Net gains/(losses) on securities (both realized and unrealized) (.13) (.21) (.77) .71
----------------------------------------------------------------------------------------------------------------
Total from Investment Operations .31 .68 .10 1.30
----------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.35) (.85) (.83) (.65)
Distributions (from capital gains) -- -- (.21) (.06)
----------------------------------------------------------------------------------------------------------------
Total Distributions (.35) (.85) (1.04) (.71)
----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.63 $ 10.67 $ 10.84 $ 11.78
----------------------------------------------------------------------------------------------------------------
Total Return* 2.81% 6.35% 0.67% 11.96%
----------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 13 $ 12 $ 11 $ 11
Average Net Assets for the Period (in thousands) $ 12 $ 12 $ 12 $ 11
Ratio of Gross Expenses to Average Net Assets**(2) 1.48% 1.50% 1.50% 1.50%
Ratio of Net Expenses to Average Net Assets**(2) 1.48% 1.50% 1.50% 1.50%
Ratio of Net Investment Income to Average Net Assets** 7.97% 8.05% 7.33% 7.42%
Portfolio Turnover Rate** 288% 554% 301% 299%
<CAPTION>
For a share outstanding during the six months Janus Aspen Money
ended June 30 (unaudited) or through Market Portfolio
each fiscal year ended December 31 2000 1999 1998 1997(1)
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .03 .04 .05 .03
Net gains/(losses) on securities (both realized and unrealized) -- -- -- --
------------------------------------------------------------------------------------------------------------
Total from Investment Operations .03 .04 .05 .03
------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.03) (.04) (.05) (.03)
Distributions (from capital gains) -- -- -- --
------------------------------------------------------------------------------------------------------------
Total Distributions (.03) (.04) (.05) (.03)
------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------
Total Return* 2.69% 4.45% 4.85% 3.13%
------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 4,876 $ 1,153 $ 11 $ 10
Average Net Assets for the Period (in thousands) $ 4,376 $ 150 $ 10 $ 10
Ratio of Gross Expenses to Average Net Assets**(2) 0.91% 0.86% 0.84% 1.00%
Ratio of Net Expenses to Average Net Assets**(2) 0.91% 0.86% 0.84% 1.00%
Ratio of Net Investment Income to Average Net Assets** 5.49% 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 / June 30, 2000 73
<PAGE>
Financial|Highlights - Service Shares
<TABLE>
<CAPTION>
Janus Aspen
For a share outstanding during the six months Janus Aspen Growth Portfolio Aggressive Growth Portfolio
ended June 30 (unaudited) 2000 2000
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 33.52 $ 59.16
------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- (.03)
Net gains/(losses) on securities (both realized and unrealized) .52 .96
------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .52 .93
------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- --
Distributions (from capital gains) (1.30) (4.71)
------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.30) (4.71)
------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 32.74 $ 55.38
------------------------------------------------------------------------------------------------------------------------
Total Return* 1.61% 1.79%
------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 12,484 $ 28,140
Average Net Assets for the Period (in thousands) $ 1,666 $ 4,063
Ratio of Gross Expenses to Average Net Assets**(1) 0.95% 0.93%
Ratio of Net Expenses to Average Net Assets**(1) 0.95% 0.93%
Ratio of Net Investment Income/(Loss) to Average Net Assets** (0.08%) (0.76%)
Portfolio Turnover Rate** 51% 94%
<CAPTION>
Janus Aspen Capital Janus Aspen
For a share outstanding during the six months Appreciation Portfolio Balanced Portfolio
or period ended June 30 (unaudited) 2000 2000
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 32.77 $ 27.82
------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .08 .05
Net gains/(losses) on securities (both realized and unrealized) (1.43) .41
------------------------------------------------------------------------------------------------------------
Total from Investment Operations (1.35) .46
------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- (.03)
Distributions (from capital gains) (.01) (1.57)
------------------------------------------------------------------------------------------------------------
Total Distributions (.01) (1.60)
------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 31.41 $ 26.68
------------------------------------------------------------------------------------------------------------
Total Return* (4.08%) 1.75%
------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 341,627 $ 7,653
Average Net Assets for the Period (in thousands) $ 139,280 $ 936
Ratio of Gross Expenses to Average Net Assets**(1) 0.93% 0.95%
Ratio of Net Expenses to Average Net Assets**(1) 0.93% 0.95%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 1.19% 3.13%
Portfolio Turnover Rate** 15% 58%
</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.
See Notes to Financial Statements.
74 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Equity Income Janus Aspen Growth and
For a share outstanding during the six months Portfolio Income Portfolio
or period ended June 30 (unaudited) 2000 2000
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 27.15 $ 20.63
--------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- .01
Net gains/(losses) on securities (both realized and unrealized) (.33) (.78)
--------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.33) (.77)
--------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- --
Distributions (from capital gains) (3.29) (.31)
--------------------------------------------------------------------------------------------------------------------
Total Distributions (3.29) (.31)
--------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 23.53 $ 19.55
--------------------------------------------------------------------------------------------------------------------
Total Return* (1.06%) (3.73%)
--------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 30 $ 3,561
Average Net Assets for the Period (in thousands) $ 12 $ 432
Ratio of Gross Expenses to Average Net Assets**(1) 1.50% 0.96%
Ratio of Net Expenses to Average Net Assets**(1) 1.50% 0.96%
Ratio of Net Investment Income/(Loss) to Average Net Assets** -- 0.87%
Portfolio Turnover Rate** 87% 31%
<CAPTION>
Janus Aspen Janus Aspen International
For a share outstanding during the six months Strategic Value Portfolio Growth Portfolio
or period ended June 30 (unaudited) 2000(2) 2000
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 38.29
---------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .04 .42
Net gains/(losses) on securities (both realized and unrealized) .05 .64
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .09 1.06
---------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- --
Distributions (from capital gains) -- --
---------------------------------------------------------------------------------------------------------------------
Total Distributions -- --
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.09 $ 39.35
---------------------------------------------------------------------------------------------------------------------
Total Return* 0.90% 2.77%
---------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 10 $ 285,195
Average Net Assets for the Period (in thousands) $ 10 $ 107,597
Ratio of Gross Expenses to Average Net Assets**(1) 1.45% 0.98%
Ratio of Net Expenses to Average Net Assets**(1) 1.45% 0.98%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 2.38% 5.64%
Portfolio Turnover Rate** 19% 57%
</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, 2000 (inception) to June 30, 2000.
See Notes to Financial Statements.
Janus Aspen Series / June 30, 2000 75
<PAGE>
Financial|Highlights - Service Shares (continued)
<TABLE>
<CAPTION>
Janus Aspen Worldwide Janus Aspen Global
For a share outstanding during the six months Growth Portfolio Life Sciences Portfolio(1)
ended June 30 (unaudited) 2000 2000(2)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 47.49 $ 10.00
-----------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .01 .01
Net gains/(losses) on securities (both realized and unrealized) .90 (1.39)
-----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .91 (1.38)
-----------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- --
Distributions (from capital gains) (.64) --
-----------------------------------------------------------------------------------------------------------------------
Total Distributions (.64) --
-----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 47.76 $ 8.62
-----------------------------------------------------------------------------------------------------------------------
Total Return* 1.95% (13.80%)
-----------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 14,202 $ 9,785
Average Net Assets for the Period (in thousands) $ 1,952 $ 699
Ratio of Gross Expenses to Average Net Assets**(1) 0.97% 1.62%
Ratio of Net Expenses to Average Net Assets**(1) 0.97% 1.62%
Ratio of Net Investment Income to Average Net Assets** 0.44% 3.08%
Portfolio Turnover Rate** 50% 308%
<CAPTION>
Janus Aspen Global Janus Aspen Flexible Income
For a share outstanding during the six months Technology Portfolio Portfolio
ended June 30 (unaudited) 2000(2) 2000
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 11.41
------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .04 .38
Net gains/(losses) on securities (both realized and unrealized) (.22) (.26)
------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.18) .12
------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) -- (.29)
Distributions (from capital gains) -- --
------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.29)
------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.82 $ 11.24
------------------------------------------------------------------------------------------------------------------------------
Total Return* (1.80%) 1.05%
------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 300,792 $ 12
Average Net Assets for the Period (in thousands) $ 128,853 $ 11
Ratio of Gross Expenses to Average Net Assets**(1) 0.97% 1.04%
Ratio of Net Expenses to Average Net Assets**(1) 0.97% 1.03%
Ratio of Net Investment Income to Average Net Assets** 2.15% 7.23%
Portfolio Turnover Rate** 22% 197%
</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 January 18, 2000 (inception) to June 30, 2000.
76 Janus Aspen Series / June 30, 2000
<PAGE>
<TABLE>
<CAPTION>
Janus Aspen Janus Aspen Money
For a share outstanding during the six months High-Yield Portfolio Market Portfolio
ended June 30 (unaudited) 2000 2000
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 10.42 $ 1.00
---------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .43 .03
Net gains/(losses) on securities (both realized and unrealized) (.12) --
---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .31 .03
---------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income) (.33) (.03)
Distributions (from capital gains) -- --
---------------------------------------------------------------------------------------------------------------------
Total Distributions (.33) (.03)
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.40 $ 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return* 2.98% 2.82%
---------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 10 $ 10
Average Net Assets for the Period (in thousands) $10 $ 10
Ratio of Gross Expenses to Average Net Assets**(1) 1.25% 0.64%
Ratio of Net Expenses to Average Net Assets**(1) 1.24% 0.64%
Ratio of Net Investment Income/(Loss) to Average Net Assets** 8.10% 5.54%
Portfolio Turnover Rate** 288% N/A
</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.
See Notes to Financial Statements.
Janus Aspen Series / June 30, 2000 77
<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 June 30, 2000.
Money market funds may hold securities with stated maturities of greater than
397 days when those securities have features that allow a fund to "put" back the
security to the issuer or to a third party within 397 days of acquisition. The
maturity dates shown in the security descriptions are the stated maturity dates.
Repurchase Agreements held by a 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.
78 Janus Aspen Series / June 30, 2000
<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 fourteen Portfolios or series of shares with differing investment
objectives and policies. Eleven Portfolios invest primarily in equity
securities: Janus Aspen Growth Portfolio, Janus Aspen Aggressive Growth
Portfolio, Janus Aspen Capital Appreciation Portfolio, Janus Aspen Balanced
Portfolio, Janus Aspen Equity Income Portfolio, Janus Aspen Growth and
Income Portfolio, Janus Aspen Strategic Value Portfolio, Janus Aspen
International Growth Portfolio, Janus Aspen Worldwide Growth Portfolio,
Janus Aspen Global Life Sciences Portfolio and Janus Aspen Global
Technology 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, Capital Appreciation Portfolio, Global Life Sciences Portfolio,
Global Technology Portfolio and Strategic Value 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.
A Special Meeting of Shareholders of the Retirement Shares class (the
"Retirement Shares") of each portfolio other than High-Yield Portfolio will
be held on July 20, 2000 to approve a reorganization that would transfer
the assets relating to the Retirement Shares class of each Janus Aspen
Series Portfolio to a corresponding Fund of Janus Adviser Series.
Effective December 31, 1999, the Trust issued a new class of shares, the
Service Shares. Service 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.
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 a
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 / June 30, 2000 79
<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 at least
semiannual distributions of substantially all of its investment income and
at least 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
The management fee for each equity Portfolio decreased 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
also decreased to this rate, effective January 31, 2000. Due to the fee
reductions described above, this had the effect of lowering each equity
Portfolio's management fee on January 31, 2000, also.
Prior to May 1, 2000, investment advisory fees for eight of the Portfolios
were 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 had voluntarily agreed to reduce each
Portfolio's advisory fee to the extent that such fee exceeded 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 were reduced to the
effective rates of Janus Fund, Janus Enterprise Fund, Janus Twenty Fund,
Janus
80 Janus Aspen Series / June 30, 2000
<PAGE>
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 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.
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, as well as the distribution fee applicable to the Service 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 and Service 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 and
Service Shares at an annual rate, as determined from time to time by the
Board of Trustees, of up to .25% of the Retirement and Service 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 June 30, 2000, are noted below:
<TABLE>
<CAPTION>
DST Securities, Inc. Portfolio Expense DST Systems
Portfolio Commissions Paid* Reduction* Costs
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Janus Aspen Growth Portfolio -- -- $11,013
Janus Aspen Aggressive Growth Portfolio -- -- 10,832
Janus Aspen Capital Appreciation Portfolio -- -- 10,685
Janus Aspen Balanced Portfolio -- -- 10,688
Janus Aspen Equity Income Portfolio $ 37 $ 7 7,318
Janus Aspen Growth and Income Portfolio 305 229 7,505
Janus Aspen Strategic Value Portfolio -- -- --
Janus Aspen International Growth Portfolio 1,241 931 9,385
Janus Aspen Worldwide Growth Portfolio 16,745 12,559 10,955
Janus Aspen Global Life Sciences Portfolio -- -- 5,341
Janus Aspen Global Technology Portfolio -- -- 5,847
Janus Aspen Flexible Income Portfolio -- -- 8,272
Janus Aspen High-Yield Portfolio -- -- 7,432
Janus Aspen Money Market Portfolio -- -- 8,201
------------------------------------------------------------------------------------------------------
</TABLE>
* The difference between commissions paid to DST Securities, Inc. and
expenses reduced constituted commissions paid to an unaffiliated clearing
broker.
Janus Aspen Series / June 30, 2000 81
<PAGE>
Notes to|Financial Statements (continued)
3. FEDERAL INCOME TAX
The Portfolios have elected to treat gains and losses on forward foreign
currency contracts as capital gains and losses. Other foreign currency
gains and losses on debt instruments are treated as ordinary income for
federal income tax purposes pursuant to Section 988 of the Internal Revenue
Code. As of June 30, 2000, 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.
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax
purposes as of June 30, 2000, are also noted below.
<TABLE>
<CAPTION>
Post-October
Net Capital Loss Capital Currency Federal Tax Unrealized
Portfolio Carryovers Losses Losses Cost Appreciation
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio -- -- $ (60) $ 3,318,621,127 $ 1,027,813,836
Janus Aspen Aggressive Growth
Portfolio -- -- (1,984) 3,879,364,415 1,597,624,786
Janus Aspen Capital Appreciation
Portfolio -- $ (873,431) -- 1,313,804,504 197,877,145
Janus Aspen Balanced Portfolio -- -- (7,055) 2,913,139,979 353,434,429
Janus Aspen Equity Income Portfolio -- -- (45) 15,844,617 3,705,015
Janus Aspen Growth and Income
Portfolio -- (11,710) -- 133,136,590 27,100,892
Janus Aspen Strategic Value Portfolio -- -- -- 2,128,943 75,443
Janus Aspen International Growth
Portfolio $ (6,761,112) -- -- 1,355,850,119 352,226,999
Janus Aspen Worldwide Growth
Portfolio -- -- (8,857) 6,682,957,035 2,841,313,196
Janus Aspen Global Life Sciences
Portfolio -- -- -- 14,824,503 694,172
Janus Aspen Global Technology
Portfolio -- -- -- 375,729,207 24,390,050
Janus Aspen Flexible Income
Portfolio (2,276,738) -- (30,342) 203,895,951 1,061,881
Janus Aspen High-Yield Portfolio (147,288) (15,207) -- 1,545,399 9,900
Janus Aspen Money Market Portfolio -- -- -- 63,115,087 --
Unrealized Net Appreciation/
Portfolio (Depreciation) (Depreciation)
---------------------------------------------------------------------------
Janus Aspen Growth Portfolio $ (213,113,845) $ 814,699,991
Janus Aspen Aggressive Growth
Portfolio (421,620,400) 1,176,004,386
Janus Aspen Capital Appreciation
Portfolio (67,466,640) 130,410,505
Janus Aspen Balanced Portfolio (73,612,224) 279,822,205
Janus Aspen Equity Income Portfolio (563,263) 3,141,752
Janus Aspen Growth and Income
Portfolio (8,770,086) 18,330,806
Janus Aspen Strategic Value Portfolio (61,360) 14,083
Janus Aspen International Growth
Portfolio (79,561,303) 272,665,696
Janus Aspen Worldwide Growth
Portfolio (433,136,873) 2,408,176,323
Janus Aspen Global Life Sciences
Portfolio (135,579) 558,592
Janus Aspen Global Technology
Portfolio (27,666,006) (3,275,956)
Janus Aspen Flexible Income
Portfolio (4,195,463) (3,133,582)
Janus Aspen High-Yield Portfolio (50,844) (40,944)
Janus Aspen Money Market Portfolio -- --
</TABLE>
4. EXPENSES
The Portfolios' expenses may be reduced through expense reduction
arrangements. Those arrangements include the use of broker commissions paid
to DST Securities, Inc. and uninvested cash balances earning interest with
the Portfolios' custodian. The Statements of Operations reflect the total
expenses before any offset, the amount of the offset and the net expenses.
The expense ratios listed in the Financial Highlights reflect 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.
Janus Aspen Series Service Shares incur a pro rata share of operating
expenses. In addition, the Service Shares pay a distribution fee of up to
.25% of average net assets.
82 Janus Aspen Series / June 30, 2000
<PAGE>
5. EXPENSE RATIOS
Listed below are the gross expense ratios for the various Portfolios that
would be in effect, absent the waiver of certain fees, 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>
Service
Institutional Shares Retirement Shares Shares
Portfolio 2000 1999 1998 1997 1996 1995 2000 1999 1998 1997(1) 2000
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Janus Aspen Growth Portfolio 0.67% 0.69% 0.75% 0.78% 0.83% 0.98% 1.18% 1.19% 1.25% 1.28% 0.95%
Janus Aspen Aggressive Growth
Portfolio 0.67% 0.70% 0.75% 0.78% 0.83% 0.93% 1.17% 1.19% 1.29% 1.34% 0.93%
Janus Aspen Capital Appreciation
Portfolio 0.68% 0.79% 0.97% 2.19% N/A N/A 1.18% 1.28% 1.49% 2.66% 0.93%
Janus Aspen Balanced Portfolio 0.67% 0.69% 0.74% 0.83% 1.07% 1.55% 1.17% 1.19% 1.26% 1.33% 0.95%
Janus Aspen Equity Income Portfolio 1.59% 1.38% 1.86% 5.75% N/A N/A 2.10% 1.91% 2.36% 6.19% 1.84%
Janus Aspen Growth and Income
Portfolio 0.75% 1.15% 3.06% N/A N/A N/A 1.25% 1.62% 3.53% N/A 0.96%
Janus Aspen Strategic Value Portfolio 2.63% N/A N/A N/A N/A N/A N/A N/A N/A N/A 2.83%
Janus Aspen International Growth
Portfolio 0.72% 0.84% 0.95% 1.08% 2.21% 3.57% 1.22% 1.32% 1.44% 1.57% 0.98%
Janus Aspen Worldwide Growth
Portfolio 0.70% 0.71% 0.74% 0.81% 0.91% 1.09% 1.20% 1.21% 1.32% 1.32% 0.97%
Janus Aspen Global Life Sciences
Portfolio 1.23% N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.62%
Janus Aspen Global Technology
Portfolio 0.70% N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.97%
Janus Aspen Flexible Income Portfolio 0.78% 0.72% 0.73% 0.75% 0.84% 1.07% 1.29% 1.20% 1.24% 1.23% 1.04%
Janus Aspen High-Yield Portfolio 11.28% 4.92% 2.11% 3.27% 6.29% N/A 11.76% 5.42% 2.61% 3.42% 11.52%
Janus Aspen Money Market Portfolio 0.39% 0.43% 0.34% 0.55% 0.78% 1.07% 0.91% 0.86% 0.84% 1.10% 0.64%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Period May 1, 1997, (inception) to December 31, 1997.
Janus Aspen Series / June 30, 2000 83
<PAGE>
Explanations of|Charts, Tables and Financial Statements
1. PERFORMANCE OVERVIEWS
When comparing the performance of a Portfolio with an index, keep in mind
that market indexes do not include brokerage commissions that would be
incurred if you purchased the individual securities in the index. They also
do not include taxes payable on dividends and interest or operating
expenses incurred if you maintained a Portfolio invested in the index.
Average annual total returns are also quoted for each class of Portfolio.
Average annual total return is calculated by taking the growth or decline
in value of an investment over a period of time, including reinvestment of
dividends and distributions, then calculating the annual compounded
percentage rate that would have produced the same result had the rate of
growth been constant throughout the period.
2. SCHEDULES OF INVESTMENTS
Following the performance overview section is each Portfolio's Schedule of
Investments. This schedule reports the industry concentrations and types of
securities held in each Portfolio on the last day of the reporting period.
Securities are usually listed by type (common stock, corporate bonds, U.S.
government obligations, etc.) and by industry classification (banking,
communications, insurance, etc.).
The market value of each security is quoted as of the last day of the
reporting period. The value of securities denominated in foreign currencies
is converted into U.S. dollars.
Portfolios that invest in foreign securities also provide a summary of
investments by country. This summary reports the Portfolio's exposure to
different countries by providing the percentage of securities invested in
each country.
2a. FORWARD CURRENCY CONTRACTS
A table listing forward currency contracts follows each Portfolio's
Schedule of Investments (if applicable). Forward currency contracts are
agreements to deliver or receive a preset amount of currency at a future
date. Forward currency contracts are used to hedge against foreign currency
risk in the Portfolio's long-term holdings.
The table provides the name of the foreign currency, the settlement date of
the contract, the amount of the contract, the value of the currency in U.S.
dollars and the amount of unrealized gain or loss. The amount of unrealized
gain or loss reflects the change in currency exchange rates from the time
the contract was opened to the last day of the reporting period.
3. STATEMENT OF OPERATIONS
This statement details the Portfolios' income, expenses, gains and losses
on securities and currency transactions, and appreciation or depreciation
of current Portfolio holdings.
The first section in this statement, titled "Investment Income," reports
the dividends earned from stocks and interest earned from interest-bearing
securities in the Portfolio.
The next section reports the expenses and expense offsets incurred by the
Portfolios, including the advisory fee paid to the investment adviser,
transfer agent fees, shareholder servicing expenses, and printing and
postage for mailing statements, financial reports and prospectuses.
The last section lists the increase or decrease in the value of securities
held in the Portfolios. Portfolios realize a gain (or loss) when they sell
their position in a particular security. An unrealized gain (or loss)
refers to the change in net appreciation or depreciation of the Portfolios
during the period. "Net Gain/(Loss) on Investments" is affected both by
changes in the market value of Portfolio holdings and by gains (or losses)
realized during the reporting period.
84 Janus Aspen Series / June 30, 2000
<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 / June 30, 2000 85
<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.
86 Janus Aspen Series / June 30, 2000
<PAGE>
Janus Aspen Series / June 30, 2000 87
<PAGE>
88 Janus Aspen Series / June 30, 2000
<PAGE>
Janus Aspen Series / June 30, 2000 89
<PAGE>
[LOGO] Janus
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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