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Section 1: 8-K (8-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)

October 22, 2015

 

 

Janus Capital Group Inc.

(Exact name of registrant as specified in its charter)

 

DELAWARE

 

001-15253

 

43-1804048

(State or other jurisdiction

 

(Commission file

 

(IRS Employer

of incorporation)

 

number)

 

Identification Number)

 

151 DETROIT STREET

DENVER, COLORADO 80206

(Address of principal executive offices)  (Zip Code)

 

Registrant’s telephone number, including area code

(303) 691-3905

 

Not Applicable

(Former name or former address if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02.  Results of Operations and Financial Condition.

 

On October 22, 2015, Janus Capital Group Inc. (“JCG”) issued a press release reporting its financial results for the third quarter 2015. Copies of that press release and the earnings presentation are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report.

 

Item 9.01.  Financial Statements and Exhibits.

 

(d)                                 Exhibits

 

99.1                        Janus Capital Group Inc. press release reporting its financial results for the third quarter 2015.

 

99.2                        Janus Capital Group Inc. third quarter 2015 earnings presentation.

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Janus Capital Group Inc.

 

 

Date: October 22, 2015

By:

/s/ Jennifer J. McPeek

 

 

Jennifer J. McPeek 

 

 

Executive Vice President and

 

 

Chief Financial Officer

 

2



 

EXHIBIT INDEX

 

Exhibit No.

 

Document

 

 

 

99.1

 

Janus Capital Group Inc. press release reporting its financial results for the third quarter 2015.

 

 

 

99.2

 

Janus Capital Group Inc. third quarter 2015 earnings presentation.

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

October 22, 2015

 

JANUS CAPITAL GROUP INC. ANNOUNCES

THIRD QUARTER 2015 RESULTS

 


 

Third quarter earnings of $0.10 per diluted share,

or $0.22 as adjusted for early retirement of debt

 


 

DENVER — Janus Capital Group Inc. (“JCG”) (NYSE: JNS) today reported third quarter 2015 net income of $19.9 million, or $0.10 per diluted share, or $0.22 as adjusted for early retirement of debt, compared with second quarter 2015 net income of $44.7 million, or $0.23 per diluted share, and net income of $40.9 million, or $0.22 per diluted share, in the third quarter 2014. Third quarter 2015 included a $0.12 per diluted share loss from the early retirement of all outstanding $344.5 million aggregate principal amount of the Company’s 6.70% Senior Notes due June 15, 2017.

 

Flows, Assets Under Management, and Exchange-Traded Products

 

Average assets under management during the third quarter 2015 were $192.1 billion compared with $193.0 billion during the second quarter 2015 and $176.5 billion during the third quarter 2014.

 

At September 30, 2015, JCG’s complex-wide assets totaled $185.0 billion compared with $192.5 billion at June 30, 2015, and $174.4 billion at September 30, 2014. The decrease in complex-wide assets during the third quarter 2015 reflects net market depreciation of $11.0 billion, long-term net outflows of $3.3 billion, exchange-traded product net outflows of $0.4 billion, and money market net inflows of $0.1 billion. Mathematical equity, fundamental equity (Janus and Perkins flows), and fixed income long-term net outflows totaled $1.6 billion, $1.5 billion and $0.2 billion, respectively. The July 1, 2015 acquisition of Kapstream Capital Pty Limited (“Kapstream”) contributed $7.1 billion in fixed income assets.

 

1



 

Investment Performance

 

As of September 30, 2015, 56% of complex-wide mutual funds had a 4- or 5-star Overall Morningstar RatingTM.(1)

 

As of September 30, 2015, 69%, 75% and 56% of fundamental equity mutual fund assets ranked in the top half of their Morningstar categories on a one-, three- and five-year total return basis, respectively.(2)

 

As of September 30, 2015, 75%, 100% and 100% of fixed income mutual fund assets ranked in the top half of their Morningstar categories on a one-, three- and five-year total return basis, respectively.(3)

 

As of September 30, 2015, 80%, 53% and 75% of mathematical equity relative return strategies surpassed their respective benchmarks, net of fees, over the one-, three- and five-year periods, respectively.(4)

 


(1)         For the period ending September 30, 2015, 58%, 50% and 65% of complex-wide mutual funds had a 4- or 5-starMorningstar rating for the 3-, 5- and 10-year periods based on risk-adjusted returns for 50, 40 and 31 funds, respectively. 50 funds were included in the analysis for the Overall period.

 

(2)         References Morningstar relative performance on an asset-weighted basis. For the 10-year period ending September 30, 2015, 72% of the fundamental equity mutual fund assets outperformed the majority of their Morningstar peers based on total returns. For the 1-, 3-, 5- and 10-year periods ending September 30, 2015, 68%, 64%, 55% and 69% of the 41, 39, 33 and 26 fundamental equity mutual funds outperformed the majority of their Morningstar peers based on total returns.

 

(3)         References Morningstar relative performance on an asset-weighted basis. For the 10-year period ending September 30, 2015, 100% of the fixed income mutual fund assets outperformed the majority of their Morningstar peers based on total returns. For the 1-, 3-, 5- and 10-year periods ending September 30, 2015, 75%, 100%, 100% and 100% of the 8, 6, 4 and 4 fixed income mutual funds outperformed the majority of their Morningstar peers based on total returns.

 

(4)         Mathematical relative return strategies exclude absolute volatility strategies. For the period ending September 30, 2015, 100%, 100%, 100% and 60% of the relative return mathematical equity mutual funds were beating their benchmarks on a 1-, 3-, 5-year and since-fund inception basis. Funds included in the analysis and their inception dates are: INTECH  U.S. Core Fund — Class T (2/03); INTECH U.S. Managed Volatility Fund — Class I (12/05); INTECH International Managed Volatility Fund — Class I (5/07); INTECH Global Income Managed Volatility Fund — Class I (12/11) and INTECH Emerging Markets Managed Volatility Fund — Class I (12/14).

 

2



 

Financial Discussion

 

Financial Highlights

(dollars in millions, except per share data or as noted)

 

 

 

Three Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

 

 

2015

 

2015

 

2014

 

 

 

 

 

 

 

 

 

Average Assets Under Management (in billions)(1)

 

$

192.1

 

$

193.0

 

$

176.5

 

Ending Complex-wide Assets (in billions)

 

$

185.0

 

$

192.5

 

$

174.4

 

Revenues

 

$

273.8

 

$

271.9

 

$

237.0

 

Operating Expenses

 

$

190.4

 

$

189.8

 

$

165.4

 

Operating Income

 

$

83.4

 

$

82.1

 

$

71.6

 

Operating Margin

 

30.5

%

30.2

%

30.2

%

 

 

 

 

 

 

 

 

Net Income Attributable to JCG

 

$

19.9

 

$

44.7

 

$

40.9

 

 

 

 

 

 

 

 

 

Diluted Earnings per Share

 

$

0.10

 

$

0.23

 

$

0.22

 

 


(1)         Does not include VelocityShares assets, as VelocityShares is not the named advisor or subadvisor to its branded products.

 

Third quarter 2015 revenues of $273.8 million increased slightly from second quarter 2015, with lower negative performance fees offset by lower investment management fees. Third quarter 2015 operating expenses of $190.4 million were flat against second quarter operating expenses of $189.8 million. General and administrative expenses were higher on the adjustment of the VelocityShares contingent consideration, along with a charge related to an operational error. This was offset by lower expenses related to employee compensation, mostly from lower incentive compensation.

 

Capital and Liquidity

 

At September 30, 2015, JCG had total equity of $1.7 billion, cash and investments of $649.7 million and outstanding debt of $405.3 million.

 

Cash flows from operations during the third quarter 2015 were $122.0 million compared with $87.3 million during the second quarter 2015 and $100.1 million during the third quarter 2014.

 

As part of its capital management, JCG repurchased 1,699,517 shares of its common stock at an average price of $15.30 per share and a total cost of $26.0 million during the third quarter 2015.

 

On October 15, 2015, JCG’s Board of Directors declared a regular quarterly cash dividend of $0.09 per share. The quarterly dividend will be paid on November 20, 2015, to stockholders of record at the close of business on November 6, 2015.

 

3



 

Second Quarter 2015 Earnings Call Information

 

JCG will host a conference call and webcast to discuss its results on Thursday, October 22, 2015, at 10 a.m. Eastern Daylight Time. To participate in the conference call, please dial (888) 397-5338 in the U.S. and Canada or (719) 325-2145 internationally. The webcast of the conference call and the slides used during the presentation can be accessed via the investor relations section of JCG’s website, www.janus.com/ir. For those unable to join the conference call at the scheduled time, an audio replay will be available on www.janus.com/ir for a period of at least seven days following the call.

 

About Janus Capital Group Inc.

 

Janus Capital Group Inc. (JCG) is a global investment firm dedicated to delivering better outcomes for clients through a broad range of actively managed investment solutions, including fixed income, equity, alternative and multi-asset class strategies. It does so through a number of distinct investment platforms, including investment teams within Janus Capital Management LLC (Janus), as well as INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins), in addition to a suite of exchange-traded products under the VelocityShares brand as well as global macro fixed income products under the Kapstream brand. Each team brings distinct asset class expertise, perspective, style-specific experience and a disciplined approach to risk. Investment strategies are offered through open-end funds domiciled in both the U.S. and offshore, as well as through separately managed accounts, collective investment trusts and exchange-traded products.

 

At the end of September 2015, JCG’s complex-wide assets totaled approximately $185.0 billion for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in London, Milan, Singapore, Hong Kong, Tokyo, Melbourne, Sydney, Paris, The Hague, Zurich, Frankfurt, Dubai and Taipei.

 

Investor Relations Contact:

John Groneman

[email protected]

(303) 336-7466

 

Media Contact:

Erin Passan

[email protected]

(303) 394-7681

 

4



 

JANUS CAPITAL GROUP INC.

UNAUDITED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data or as noted)

 

 

 

Three Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

 

 

2015

 

2015

 

2014

 

Revenues:

 

 

 

 

 

 

 

Investment management fees

 

$

231.0

 

$

233.7

 

$

213.3

 

Performance fees

 

(1.2

)

(4.4

)

(14.0

)

Shareowner servicing fees and other

 

44.0

 

42.6

 

37.7

 

Total revenues

 

273.8

 

271.9

 

237.0

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

 

85.9

 

91.2

 

82.2

 

Long-term incentive compensation

 

17.6

 

19.7

 

11.6

 

Marketing and advertising

 

4.9

 

5.5

 

4.1

 

Distribution

 

36.8

 

34.7

 

33.2

 

Depreciation and amortization

 

9.0

 

7.6

 

6.2

 

General, administrative and occupancy

 

36.2

 

31.1

 

28.1

 

Total operating expenses

 

190.4

 

189.8

 

165.4

 

 

 

 

 

 

 

 

 

Operating income

 

83.4

 

82.1

 

71.6

 

 

 

 

 

 

 

 

 

Interest expense

 

(8.0

)

(7.2

)

(7.6

)

Investment gains (losses), net

 

(7.2

)

(3.1

)

1.3

 

Loss on extinguishment of debt

 

(36.3

)

 

 

Other income (expense), net

 

1.2

 

(2.2

)

(1.1

)

Income tax provision

 

(13.2

)

(24.7

)

(23.6

)

 

 

 

 

 

 

 

 

Net income

 

19.9

 

44.9

 

40.6

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

 

(0.2

)

0.3

 

 

 

 

 

 

 

 

 

Net income attributable to JCG

 

$

19.9

 

$

44.7

 

$

40.9

 

 

 

 

 

 

 

 

 

Net income attributable to JCG

 

$

19.9

 

$

44.7

 

$

40.9

 

Less: Allocation of earnings to restricted stock

 

0.7

 

1.6

 

1.4

 

Net income attributable to JCG common shareholders

 

$

19.2

 

$

43.1

 

$

39.5

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding (in millions)

 

179.9

 

180.8

 

181.4

 

Diluted weighted-average shares outstanding (in millions)

 

186.4

 

189.4

 

182.8

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to JCG common shareholders

 

$

0.10

 

$

0.23

 

$

0.22

 

 

 

 

 

 

 

 

 

Average assets under management (in billions)

 

$

192.1

 

$

193.0

 

$

176.5

 

 

5



 

JANUS CAPITAL GROUP INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

 

 

 

September 30,

 

December 31,

 

 

 

2015

 

2014

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

292.4

 

$

452.5

 

Investment securities

 

357.3

 

344.0

 

Other assets

 

225.5

 

198.5

 

Property and equipment, net

 

35.5

 

31.1

 

Intangible assets and goodwill, net

 

1,947.0

 

1,767.1

 

Total assets

 

$

2,857.7

 

$

2,793.2

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

Debt

 

$

405.3

 

$

450.5

 

Other liabilities

 

238.8

 

270.8

 

Deferred income taxes

 

523.7

 

478.4

 

Redeemable noncontrolling interests

 

36.3

 

5.4

 

Total equity

 

1,653.6

 

1,588.1

 

Total liabilities, redeemable noncontrolling interests and equity

 

$

2,857.7

 

$

2,793.2

 

 

UNAUDITED CONDENSED CASH FLOW INFORMATION

(dollars in millions)

 

 

 

Three Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

 

 

2015

 

2015

 

2014

 

Cash provided by (used in):

 

 

 

 

 

 

 

Operating activities

 

$

122.0

 

$

87.3

 

$

100.1

 

Investing activities

 

0.9

 

(112.7

)

(2.5

)

Financing activities

 

(128.8

)

(27.0

)

(100.9

)

Effect of exchange rate changes

 

(0.9

)

(3.5

)

 

Net change during period

 

$

(6.8

)

$

(55.9

)

$

(3.3

)

 

6



 

JANUS CAPITAL GROUP INC.

ASSETS & FLOWS BY INVESTMENT DISCIPLINE

(dollars in billions)

 

 

 

Growth /
Core (1)

 

Global /
International

 

Mathematical
Equity

 

Fixed
Income
(1)

 

Value

 

Total
Company
(Excluding
Money
Market
and ETPs)

 

Exchange-
Traded
Products
(“ETPs”)
(2)

 

Money
Market

 

Total
Company

 

September 30, 2015

 

$

61.6

 

$

21.7

 

$

46.6

 

$

41.6

 

$

8.7

 

$

180.2

 

$

3.5

 

$

1.3

 

$

185.0

 

Sales

 

3.1

 

2.7

 

1.5

 

4.2

 

0.2

 

11.7

 

0.9

 

0.3

 

12.9

 

Redemptions

 

(4.0

)

(2.3

)

(3.1

)

(4.4

)

(1.2

)

(15.0

)

(1.3

)

(0.2

)

(16.5

)

Net Sales (Redemptions)

 

(0.9

)

0.4

 

(1.6

)

(0.2

)

(1.0

)

(3.3

)

(0.4

)

0.1

 

(3.6

)

Market/Fund Performance

 

(4.6

)

(3.0

)

(2.6

)

(1.0

)

(0.7

)

(11.9

)

0.9

 

 

(11.0

)

Acquisitions (3)

 

 

 

 

7.1

 

 

7.1

 

 

 

7.1

 

June 30, 2015

 

$

67.1

 

$

24.3

 

$

50.8

 

$

35.7

 

$

10.4

 

$

188.3

 

$

3.0

 

$

1.2

 

$

192.5

 

Sales

 

3.6

 

2.6

 

2.2

 

2.7

 

0.5

 

11.6

 

0.7

 

0.2

 

12.5

 

Redemptions

 

(3.5

)

(1.7

)

(2.2

)

(2.4

)

(1.6

)

(11.4

)

(0.8

)

(0.2

)

(12.4

)

Net Sales (Redemptions)

 

0.1

 

0.9

 

 

0.3

 

(1.1

)

0.2

 

(0.1

)

 

0.1

 

Market/Fund Performance

 

(0.3

)

0.6

 

(0.3

)

(0.3

)

(0.1

)

(0.4

)

0.4

 

 

 

March 31, 2015

 

$

67.3

 

$

22.8

 

$

51.1

 

$

35.7

 

$

11.6

 

$

188.5

 

$

2.7

 

$

1.2

 

$

192.4

 

Sales

 

3.9

 

2.7

 

1.4

 

3.5

 

0.8

 

12.3

 

0.9

 

0.1

 

13.3

 

Redemptions

 

(3.0

)

(1.4

)

(2.7

)

(2.7

)

(1.4

)

(11.2

)

(0.5

)

(0.2

)

(11.9

)

Net Sales (Redemptions)

 

0.9

 

1.3

 

(1.3

)

0.8

 

(0.6

)

1.1

 

0.4

 

(0.1

)

1.4

 

Market/Fund Performance

 

2.5

 

1.2

 

1.4

 

0.5

 

 

5.6

 

(0.1

)

 

5.5

 

December 31, 2014

 

$

63.9

 

$

20.3

 

$

51.0

 

$

34.4

 

$

12.2

 

$

181.8

 

$

2.4

 

$

1.3

 

$

185.5

 

Sales

 

3.1

 

1.8

 

2.0

 

5.3

 

0.7

 

12.9

 

0.1

 

0.1

 

13.1

 

Redemptions

 

(3.1

)

(1.3

)

(2.6

)

(2.5

)

(1.4

)

(10.9

)

 

(0.2

)

(11.1

)

Net Sales (Redemptions)

 

 

0.5

 

(0.6

)

2.8

 

(0.7

)

2.0

 

0.1

 

(0.1

)

2.0

 

Market/Fund Performance

 

3.7

 

0.2

 

2.2

 

0.1

 

0.6

 

6.8

 

 

 

6.8

 

Acquisitions (2)

 

 

 

 

 

 

 

2.3

 

 

2.3

 

September 30, 2014

 

$

60.2

 

$

19.6

 

$

49.4

 

$

31.5

 

$

12.3

 

$

173.0

 

$

 

$

1.4

 

$

174.4

 

Sales

 

3.0

 

1.5

 

1.6

 

3.1

 

0.7

 

9.9

 

 

0.1

 

10.0

 

Redemptions

 

(4.2

)

(1.4

)

(1.9

)

(2.8

)

(1.7

)

(12.0

)

 

(0.1

)

(12.1

)

Net Sales (Redemptions)

 

(1.2

)

0.1

 

(0.3

)

0.3

 

(1.0

)

(2.1

)

 

 

(2.1

)

Market/Fund Performance

 

 

(0.5

)

(0.1

)

(0.2

)

(0.4

)

(1.2

)

 

 

(1.2

)

June 30, 2014

 

$

61.4

 

$

20.0

 

$

49.8

 

$

31.4

 

$

13.7

 

$

176.3

 

$

 

$

1.4

 

$

177.7

 

 


Notes:

(1)             Growth / Core and Fixed Income assets and flows reflect an even split of the Janus Balanced fund between the two categories.

(2)             VS Holdings Inc., the parent company of VelocityShares, LLC, was acquired on December 1, 2014, prior to that the firm did not have exchange-traded products.

(3)             Kapstream was acquired  on July 1, 2015.

 

NON-GAAP FINANCIAL MEASURES

(amounts in millions, except per share data)

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2015

 

 

 

 

 

Net income attributable to JCG

 

$

19.9

 

Less: Allocation of earnings to restricted stock

 

0.7

 

Net income attributable to JCG common shareholders

 

19.2

 

Non-GAAP adjustments:

 

 

 

Loss on extinguishment of debt

 

36.3

 

Tax effect of loss on extinguishment of debt

 

(13.5

)

Allocation of loss on extinguishment of debt to participating restricted stock awards

 

(0.8

)

Net income attributable to JCG common shareholders, adjusted

 

$

41.2

 

 

 

 

 

Diluted weighted-average shares outstanding

 

186.4

 

 

 

 

 

Diluted earnings per share attributable to JCG common shareholders

 

$

0.10

 

Diluted earnings per share attributable to JCG common shareholders, adjusted

 

$

0.22

 

 

7



 

Data presented reflects past performance, which is no guarantee of future results. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS (52687) or visit janus.com/advisor/mutual-funds for performance, rankings and ratings current to the most recent month-end.

 

Janus Capital Group Inc. (“JCG”) provides investment advisory services through its primary subsidiaries, Janus Capital Management LLC (“Janus”), INTECH Investment Management LLC (“INTECH”) and Perkins Investment Management LLC (“Perkins”).

 

“Complex-Wide Mutual Funds” means all affiliated mutual funds managed by Janus, INTECH and Perkins. “Fundamental Equity Mutual Funds” means all mutual funds managed by Janus or Perkins that invest in equity securities. “Fixed Income Mutual Funds” means all mutual funds managed by Janus that invest primarily in fixed income securities. “Mathematical Equity Relative Return Strategies” means all relative return discretionary managed accounts (not mutual funds) that are advised or sub-advised by INTECH with at least a one-year track record.

 

Mutual fund relative performance analysis shown is for each Fund’s parent share class (typically the share class with the longest performance history): Class T, S or I Shares in the Janus retail fund (“JIF”) trust and the Institutional or Service Shares in the Janus Aspen Series (“JAS”). These share classes may not be eligible for purchase by all investors. Other share classes may have higher sales and management fees, which can result in differences in performance.

 

Investing involves risk, including the possible loss of principal. The value of your investment will fluctuate over time and you may gain or lose money. A fund’s performance may be affected by risks that include those associated with non-diversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to funds may include those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (“REITs”), derivatives, short sales, commodity linked investments and companies with relatively small market capitalizations. Each fund has different risks. Please see a Janus prospectus for more information about risks, fund holdings and other details.

 

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The Overall Morningstar RatingTM for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar RatingTM metrics. For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages). The Morningstar RatingTM may differ among share classes of a mutual fund as a result of different sales loads and/or expense structures. It may be based, in part, on the performance of a predecessor fund. Morningstar does not rate funds with less than a three-year performance history.

 

The Morningstar percentile ranking is based on the fund’s total-return percentile rank relative to all funds that have the same category for the same time period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. Morningstar total-return includes both income and capital gains or losses and is not adjusted for sales charges. The top-performing funds in a category will always receive a rank of 1.

 

Morningstar performance on an asset-weighted basis is calculated by taking all funds and assigning the assets under management (“AUM”) in each respective fund to either the 1st, 2nd, 3rd or 4th quartile bucket based on each fund’s respective Morningstar relative ranking. The total AUM of each quartile’s bucket is then divided by complex-wide total AUM to arrive at the respective percent of AUM in each bucket.

 

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at (800) 525-3713 or download the file from www.janus.com/info. Read it carefully before you invest or send money.

 

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Funds distributed by Janus Distributors LLC.

 

Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “may increase,” “may fluctuate,” “forecast” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements. These statements are based on the beliefs and assumptions of Company management based on information currently available to management.

 

Various risks, uncertainties, assumptions and factors that could cause future results to differ materially from those expressed by the forward-looking statements included in this press release include, but are not limited to, risks specified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, included under headings such as “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in other filings and furnishings made by the Company with the SEC from time to time. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. Many of these factors are beyond the control of the Company and its management. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except for the Company’s ongoing obligations to disclose material information under the applicable securities law and stock exchange rules, the Company undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

 

C-1015-102023 01-15-16

 

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Section 3: EX-99.2 (EX-99.2)

Exhibit 99.2

Third Quarter 2015 Earnings Presentation October 22, 2015 Dick Weil Chief Executive Officer Jennifer McPeek Chief Financial Officer

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3Q 2015 GAAP EPS of $0.10, adjusted EPS of $0.22, compared to $0.23 in 2Q 2015 and $0.22 in 3Q 2014 (1) 3Q 2015 adjusted EPS excludes a $0.12 non-operating loss due to the early extinguishment of debt 3Q 2015 total company long-term net flows of $(3.3) billion reflect $2.9 billion of mandate losses and the impact of the challenging market backdrop the industry experienced during the quarter Our investment teams are continuing to deliver good results for our clients 70% and 79% of complex-wide assets were in the top 2 Morningstar quartiles on a 1- and 3-year basis, respectively, as of September 30, 2015 (2) Most strategies with volatility or risk outcome objectives delivered strong relative returns during the quarter We are continuing to execute on our strategy of Intelligent Diversification Our non-U.S. business posted its 9th consecutive quarter of inflows with net flows of $1.6 billion during the quarter Recent acquisitions are positively contributing to results – VelocityShares average assets for 3Q 2015 increased 16% quarter over quarter, and Kapstream had net inflows for the quarter of $300 million Executive summary Notes: Only the current period (3Q 2015) is adjusted. See detail to non-GAAP adjustments on p. 21. References Morningstar relative performance. Refer to p. 24 for the 5-year period and p. 31 for 10-year period and quantity of funds in the analysis.

 


Janus Capital Group 3Q 2015 results 3Q 2015 adjusted EPS of $0.22 compared to $0.23 in 2Q 2015 3Q 2015 adjusted EPS excludes a $0.12 non-operating loss due to the early extinguishment of debt Assets Under Management of $181.5 billion at September 30, 2015, decreased 4% versus June 30, 2015 Operating margin in 3Q 2015 of 30.5% vs. 30.2% in 2Q 2015 Total company long-term net flows were $(3.3) billion in 3Q 2015 compared to $0.2 billion in 2Q 2015 Generated $238.8 million of cash flow from operations over the last 12 months Adjusted EPS(1) AUM(2) Long-Term Net Flows Margin Cash Flow From Operations Notes: Only the current period (3Q 2015) is adjusted. See detail to non-GAAP adjustments on p. 21. AUM does not include $3.5 billion of VelocityShares assets.

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3Q 2015 Results Jennifer McPeek Chief Financial Officer

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3Q 2015 financial review Adjusted EPS(2) Average AUM(1) ($ in billions) Total Revenue ($ in millions) Operating Income & Operating Margin ($ in millions) Quarter over Quarter Year over Year Notes: Average AUM does not include $3.5 billion of VelocityShares assets. 3Q 2015 EPS excludes a $0.12 non-operating loss due to the early extinguishment of debt. Only the current period (3Q 2015) is adjusted. See detail to non-GAAP adjustments on p. 21. $271.9 $273.8 2Q 2015 3Q 2015 $82.1 $83.4 30.2% 30.5% 2Q 2015 3Q 2015 $193.0 $192.1 2Q 2015 3Q 2015 $0.23 $0.22 2Q 2015 3Q 2015 $0.22 $0.22 3Q 2014 3Q 2015 $176.5 $192.1 3Q 2014 3Q 2015 $71.6 $83.4 30.2% 30.5% 3Q 2014 3Q 2015 $237.0 $273.8 3Q 2014 3Q 2015

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3Q 2015 investment performance summary Notes: References Morningstar relative performance on an asset-weighted, total return basis as of September 30, 2015. Refer to p. 24 and 25 for the 1-, 3- and 5-year periods and p. 31 for the 10-year period for percent of assets, percent of funds in top 2 Morningstar quartiles for all periods and quantity of funds in analysis. Excludes absolute volatility strategies. References relative performance net of fees as of September 30, 2015, as shown on p. 28 and 29. Refer to p. 30 for INTECH mutual fund analysis and disclosure. Complex-wide as of September 30, 2015. Refer to p. 31 for 3-, 5- and 10-year Morningstar ratings and quantity of funds in the analysis. Morningstar ratings are based on risk-adjusted returns. Period Ending September 30, 2015 1-Year 3-Year 5-Year % of Assets in Top Two Morningstar Quartiles Complex-Wide Mutual Fund Assets (1) 70% 79% 63% Fundamental Equity Mutual Fund Assets (1) 69% 75% 56% Fixed Income Mutual Fund Assets (1) 75% 100% 100% % of Relative Return Strategies Which Outperformed Respective Benchmarks Mathematical Equity Strategies (2) 80% 53% 75% % of Complex-Wide Mutual Funds with 4- or 5-Star Overall Morningstar Rating TM Complex-Wide Mutual Funds (3) 56%

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3Q 2015 long-term net flow summary Notes: Long-term flows exclude money market flows. Annualized sales and redemption rates calculated as a percentage of beginning of period assets. Long-term flows do not include VelocityShares. 22% 29% 27% 25% 25% Total Company Long-Term Flows (1,2) ($ in billions) Gross Redemptions Gross Sales Net Sales Annualized Redemption Rate Annualized Gross Sales Rate 22% 24% 31% 27% 23% 30% 25% 24% 27% 29% 13% 16% 11% 17% 12% 15% 21% 22% 18% 25% 39% 67% 41% 30% 39% 35% 32% 32% 27% 41% Fundamental Equity ($ in billions) Mathematical Equity ($ in billions) Fixed Income ($ in billions) 27% 25% 25% 24% 32% $3.1 $5.3 $3.5 $2.7 $4.2 ($2.8) ($2.5) ($2.7) ($2.4) ($4.4) $0.3 $2.8 $0.8 $0.3 ($0.2) ($10) ($6) ($2) $2 $6 $10 3Q14 4Q14 1Q15 2Q15 3Q15 $1.6 $2.0 $1.4 $2.2 $1.5 ($1.9) ($2.6) ($2.7) ($2.2) ($3.1) ($0.3) ($0.6) ($1.3) ($0.0) ($1.6) ($6) ($3) $0 $3 $6 3Q14 4Q14 1Q15 2Q15 3Q15 $5.2 $5.6 $7.4 $6.7 $6.0 ($7.3) ($5.8) ($5.8) ($6.8) ($7.5) ($2.1) ($0.2) $1.6 ($0.1) ($1.5) ($20) ($10) $0 $10 $20 3Q14 4Q14 1Q15 2Q15 3Q15 $9.9 $12.9 $12.3 $11.6 $11.7 ($12.0) ($10.9) ($11.2) ($11.4) ($15.0) ($2.1) $2.0 $1.1 $0.2 ($3.3) ($32) ($16) $0 $16 $32 3Q14 4Q14 1Q15 2Q15 3Q15

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3Q 2015 total revenue Total Revenue ($ in millions) Note: Includes mutual fund and private account performance fees. (1) Management Fees Shareowner Servicing Fees and Other Performance Fees Total revenue increased 1% quarter over quarter Performance fees improved by $3.2 million versus 2Q 2015 due to better mutual fund and private account performance fees Shareowner servicing fees and other revenue increased $1.4 million primarily due to higher exchange-traded note (“ETN”) assets Management fees declined slightly due to lower average AUM $42.6 $44.0 ($4.4) ($1.2) $233.7 $231.0 $271.9 $273.8 2Q 2015 3Q 2015

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3Q 2015 operating expenses Operating Expenses ($ in millions) Note: 2015 annual long-term incentive compensation is currently expected to be $75-$78 million. (1) 3Q 2015 operating expenses of $190.4 million increased slightly compared to 2Q 2015 Employee compensation and benefits declined $5.3 million compared to 2Q 2015 primarily as a result of decreased variable compensation on lower profitability and sales Long-term incentive compensation decreased $2.1 million primarily due to mark-to-market on mutual fund share awards G&A increased $5.1 million as a result of the VelocityShares earnout and an operational error, which were partially offset by the absence of deal costs that were recognized in the prior quarter 3Q 2015 operating margin improved to 30.5% from 30.2% in 2Q 2015 $31.1 $36.2 $7.6 $9.0 $34.7 $36.8 $5.5 $4.9 $19.7 $17.6 $91.2 $85.9 $189.8 $190.4 2Q 2015 3Q 2015 $79.9 $71.2 $17.7 $16.4 $8.2 $6.2 $39.6 $35.5 $8.4 $8.1 $28.4 $25.3 2Q 2011 3Q 2011 Employee Compensation & Benefits Long - Term Incentive Compensation Marketing & Advertising Distribution Depreciation & Amortization G&A

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3Q 2015 balance sheet profile 9/30/2015 2018 Maturity Investment Securities (2) 6/30/2015 Cash & Investments Debt Debt Cash and Cash Equivalents Notes: Numbers may not foot due to rounding. Includes Seed Investments of $338.2 million, Investments in Advised Mutual Funds of $4.5 million and Investments Related to Deferred Compensation Plans of $12.4 million as of June 30, 2015; includes Seed Investments of $337.5 million, Investments in Advised Mutual Funds of $4.0 million and Investments Related to Deferred Compensation Plans of $15.8 million as of September 30, 2015. 2025 Maturity Cash & Investments Balance Sheet Profile (Carrying Value) (1) – 6/30/2015 vs. 9/30/2015 ($ in millions) 2017 Maturity Total cash and marketable securities decreased $4 million versus 2Q 2015 Cash and cash equivalents decreased by $7 million, driven by cash used for debt retirement, dividends and buybacks largely offset by strong cash flow generation Carrying value of debt decreased 10% or $47 million compared to the prior quarter, following the issuance of Senior Notes due 2025 and a make-whole call on the 2017 Senior Notes During 3Q 2015, we used cash to fund the following: Share buybacks – $26 million (repurchased 1.7 million shares at an average price of $15.30 per share) Quarterly dividends – $17 million Generated cash flow from operations of $239 million over the last 12 months $299 $292 $355 $357 $654 $650 $345 $297 $108 $108 $452 $405

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Topics of Discussion Jennifer McPeek Chief Financial Officer

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Assets by channel presentation changes (1) The presentation of our assets by channel now coincides with how we view channels strategically Retail Intermediary 59% Institutional 20% International 21% Self-Directed 29% Intermediary 37% Note: See p. 17 for additional channel detail and p. 18 for historical asset breakdown. 9/30/15 AUM of $181.5 Billion (Excludes ETP Assets of $3.5 Billion) By Channel By Channel Institutional 34% By Domicile Non-U.S. 20% U.S. 80% 9/30/15 Assets of $185.0 Billion

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Impact of Kapstream acquisition Notes: Reflects consolidation of Kapstream-related balances beginning July 1, 2015. Kapstream 3Q 2015 EBITDA of $2.7 million includes operating income of $2.1 million plus intangible amortization of $0.6 million. Consolidated Statement of Income & Balance Sheet As of and for the three months ended September 30, 2015 ($ in millions, except per share data) JCG As Reported Kapstream (1) Consolidated Statement of Income: Total revenues 273.8 $ 4.9 $ Operating expenses Employee compensation and benefits 85.9 $ 1.0 $ Long-term incentive compensation 17.6 0.2 Marketing and advertising 4.9 - Distribution 36.8 0.4 Depreciation and amortization 9.0 0.6 General, administrative and occupancy 36.2 0.6 Total operating expenses 190.4 $ 2.8 $ Operating income (2) 83.4 $ 2.1 $ Interest expense (8.0) - Investment gains (losses), net (7.2) - Other income, net 1.2 0.1 Loss on early extinguishment of debt (36.3) - Income tax provision (13.2) (0.6) Noncontrolling interests - (0.8) Allocation of earnings to restricted stock (0.7) - Net income attributable to JCG common shareholders 19.2 $ 0.8 $ Balance Sheet: Assets: Cash and investment securities 649.7 $ 7.8 $ Other assets & property and equipment, net 261.0 12.4 Intangible assets and goodwill, net 1,947.0 187.2 Total assets 2,857.7 $ 207.4 $ Liabilities and equity: Debt 405.3 $ - $ Other liabilities 238.8 15.5 Deferred income taxes 523.7 31.4 Redeemable noncontrolling interests 36.3 - Investment in Kapstream - 88.2 Total equity 1,653.6 72.3 Total liabilities, redeemable noncontrolling interests and equity 2,857.7 $ 207.4 $

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Q&A Jennifer McPeek Chief Financial Officer Dick Weil Chief Executive Officer

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Appendix

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3Q 2015 asset diversification 9/30/15 Assets of $185.0 Billion By Investment Discipline ($ in Billions) Note: Percentages and numbers may not foot due to rounding. By Distribution Channel ($ in Billions) By Domicile ($ in Billions) $61.6 46.6 41.6 21.7 8.7 3.5 1.3 $68.8 62.7 53.5 $147.2 37.8 33% 25% 22% 12% 5% 2% 1% Growth / Blend Mathematical Fixed Income Global / International Value ETPs Money Market 37% 34% 29% Intermediary Institutional Self-Directed 80% 20% U.S. Non-U.S.

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Assets by channel presentation changes (1) Note: Items in red font in the tables are new additions; shaded items are reorganized. Previous Channel View Current Channel View The presentation of our assets by channel now coincides with how we view channels strategically Retail Intermediary Defined Contribution Platform Advisory Services Variable Insurance Trusts Retail Direct Supermarket Retail Institutional Corporate Endowments & Foundations Public Funds Taft Hartley International All Internationally-Domiciled Assets Intermediary Defined Contribution Platform Advisory Services Variable Insurance Trusts Non-U.S. Mutual Funds ETFs Institutional Corporate Endowments & Foundations Public Funds Taft Hartley Non-U.S. Separate Accounts Self-Directed Retail Direct Supermarket Retail ETNs

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Historical assets by channel and domicile (1) By Distribution Channel ($ in Billions) Note: Numbers may not foot due to rounding. By Domicile ($ in Billions) $61 $66 $70 $72 $69 $61 $63 $65 $63 $63 $52 $56 $58 $58 $54 $174 $185 $192 $193 $185 $0 $50 $100 $150 $200 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Intermediary Institutional Self-Directed $147 $157 $162 $161 $147 $27 $29 $31 $32 $38 $174 $185 $192 $193 $185 $0 $50 $100 $150 $200 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 U.S. Non-U.S.

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3Q 2015 EPS of $0.10 compared to $0.23 in 2Q 2015 September 30, June 30, Variance September 30, September 30, Variance ($ in millions, except AUM and per share) 2015 2015 (%) 2015 2014 (%) Average AUM ($ in billions) 192.1 $ 193.0 $ -0.5% 192.1 $ 176.5 $ 8.8% Revenues 273.8 $ 271.9 $ 0.7% 273.8 $ 237.0 $ 15.5% Operating expenses 190.4 189.8 0.3% 190.4 165.4 15.1% Operating income 83.4 $ 82.1 $ 1.6% 83.4 $ 71.6 $ 16.5% Operating margin 30.5% 30.2% 30.5% 30.2% Interest expense (8.0) $ (7.2) $ -11.1% (8.0) $ (7.6) $ -5.3% Investment gains (losses), net (7.2) (3.1) n/m (7.2) 1.3 n/m Other income (expense), net 1.2 (2.2) n/m 1.2 (1.1) n/m Loss on early extinguishment of debt (36.3) - n/a (36.3) - n/a Income tax provision (13.2) (24.7) 46.6% (13.2) (23.6) 44.1% Net income 19.9 $ 44.9 $ -55.7% 19.9 $ 40.6 $ -51.0% Noncontrolling interests - (0.2) n/m - 0.3 n/m Net income attributable to JCG 19.9 $ 44.7 $ -55.5% 19.9 $ 40.9 $ -51.3% Allocation of earnings to restricted stock 0.7 1.6 -56.3% 0.7 1.4 -50.0% Net income attributable to JCG common shareholders 19.2 $ 43.1 $ -55.5% 19.2 $ 39.5 $ -51.4% Diluted earnings per share attributable to JCG common shareholders 0.10 $ 0.23 $ -56.5% 0.10 $ 0.22 $ -54.5% Diluted weighted average shares outstanding (in millions) 186.4 189.4 -1.6% 186.4 182.8 2.0% Quarter Ended Quarter Ended

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3Q 2015 operating margin of 30.5% versus 30.2% in 2Q 2015 September 30, June 30, Variance September 30, September 30, Variance ($ in millions, except AUM) 2015 2015 (%) 2015 2014 (%) Average AUM ($ in billions) 192.1 $ 193.0 $ -0.5% 192.1 $ 176.5 $ 8.8% Revenues Investment management fees 231.0 $ 233.7 $ 231.0 $ 213.3 $ Performance fees - mutual funds (3.9) (6.6) (3.9) (14.4) Performance fees - private accounts 2.7 2.2 2.7 0.4 Shareowner servicing fees and other 44.0 42.6 44.0 37.7 Total revenues 273.8 $ 271.9 $ 0.7% 273.8 $ 237.0 $ 15.5% Basis points Investment management fees 47.7 48.6 47.7 47.9 Investment management fees and performance fees 47.5 47.7 47.5 44.8 Operating expenses Employee compensation and benefits 85.9 $ 91.2 $ 85.9 $ 82.2 $ Long-term incentive compensation 17.6 19.7 17.6 11.6 Marketing and advertising 4.9 5.5 4.9 4.1 Distribution 36.8 34.7 36.8 33.2 Depreciation and amortization 9.0 7.6 9.0 6.2 General, administrative and occupancy 36.2 31.1 36.2 28.1 Total operating expenses 190.4 $ 189.8 $ 0.3% 190.4 $ 165.4 $ 15.1% Operating income 83.4 $ 82.1 $ 1.6% 83.4 $ 71.6 $ 16.5% Operating margin 30.5% 30.2% 30.5% 30.2% Quarter Ended Quarter Ended

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Reconciliation of non-GAAP financial measures – 3Q 2015 Quarter Ended September 30, ($ in millions, except per share amounts) 2015 Net income attributable to JCG $ 19.9 Less: Allocation of earnings to participating restricted stock awards 0.7 Net income attributable to JCG common shareholders 19.2 Non-GAAP adjustments: Loss on extinguishment of debt 36.3 Tax effect of loss on extinguishment of debt (13.5) Allocation of loss on extinguishment of debt to participating restricted stock awards (0.8) Net income attributable to JCG common shareholders, adjusted $ 41.2 Weighted-average diluted common shares outstanding 186.4 Diluted earnings per share $ 0.10 Diluted earnings per share, adjusted $ 0.22

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Mutual funds with performance-based advisory fees Please refer to footnotes on p. 23. Mutual Funds with Performance Fees (1) (AUM $ in millions, performance fees $ in thousands) EOP AUM 9/30/2015 Benchmark Base Fee Performance Fee (2) Performance Hurdle vs. Benchmark 3Q 2015 P&L Impact Janus Contrarian Fund (3) $3,352.7 S&P 500 ® Index 0.64% ± 15 bps ± 7.00% $1,336.0 Janus Research Fund (3) 4,420.4 Russell 1000 ® Growth Index 0.64% ± 15 bps ± 5.00% 1,513.0 Janus Global Research Fund (3,4) 3,173.6 MSCI World Index SM 0.60% ± 15 bps ± 6.00% 650.3 Janus Global Real Estate Fund (5) 265.6 FTSE EPRA / NAREITGlobal Index 0.75% ± 15 bps ± 4.00% 51.7 Janus International Equity Fund (6) 245.4 MSCI EAFE ® Index 0.68% ± 15 bps ± 7.00% (46.3) INTECH U.S. Core Fund (7) 607.2 S&P 500 ® Index 0.50% ± 15 bps ± 4.00% 207.5 Perkins Mid Cap Value Fund (3) 4,717.0 Russell Midcap ® Value Index 0.64% ± 15 bps ± 4.00% (3,629.3) Perkins Small Cap Value Fund (8) 1,460.2 Russell 2000 ® Value Index 0.72% ± 15 bps ± 5.50% 297.9 Perkins Large Cap Value Fund (8) 152.4 Russell 1000 ® Value Index 0.64% ± 15 bps ± 3.50% (56.2) Janus Fund (9) 8,479.6 Core Growth Index 0.64% ± 15 bps ± 4.50% 765.6 Perkins Global Value Fund (9,10) 240.9 MSCI World Index SM 0.64% ± 15 bps ± 7.00% (80.6) Janus Aspen Overseas Portfolio (11) 852.5 MSCI All Country World ex-U.S. Index SM 0.64% ± 15 bps ± 7.00% (495.5) Janus Overseas Fund (12) 2,130.0 MSCI All Country World ex-U.S. Index SM 0.64% ± 15 bps ± 7.00% (1,672.3) Janus Twenty Fund (13) 8,490.5 Russell 1000 ® Growth Index 0.64% ± 15 bps ± 8.50% (3,147.1) Janus Forty Fund (13) 2,920.5 Russell 1000 ® Growth Index 0.64% ± 15 bps ± 8.50% 418.5 Janus Emerging Markets Fund (14) 39.7 MSCI Emerging Markets Index SM 1.00% ± 15 bps ± 6.00% 11.4 Janus Asia Equity (15) 9.4 MSCI All Country Asia ex-Japan Index SM 0.92% ± 15 bps ± 7.00% 2.2 Perkins Select Value (16) 73.9 Russell 3000 ® Value Index 0.70% ± 15 bps ± 5.00% (28.9) Total Existing Funds with Fees $41,631.3 ($3,902.1)

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Mutual funds with performance-based advisory fees (cont.) Notes: The funds listed have a performance-based investment advisory fee that adjusts upward or downward based on each fund’s performance relative to an approved benchmark index over a performance measurement period. Please see the funds’ Statements of Additional Information for more details. Actual performance measurement periods used for calculating the performance fees are from 12 months up to 36 months, and then over 36-month rolling periods. Adjustment of ± 15 bps assumes constant assets and could be higher or lower depending on asset fluctuations. The performance measurement period began on 2/1/2006, and the performance adjustment was implemented as of 2/1/2007. Effective close of business on March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund; following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund (the “Combined Fund”). The Combined Fund’s surviving performance track record is that of the former Janus Global Research Fund, and the performance measurement benchmark is the MSCI World Index. For three years after the merger, Janus will waive its management fee to at least a level that is equivalent to the fee rate the Combined Fund would have paid if, after the merger, the performance history of Janus Worldwide Fund were used to calculate the performance fee adjustment to the base management fee. The performance measurement period began on 12/1/2007 and the performance adjustment was implemented as of 12/1/2008. Beginning 7/1/2010, Janus Global Real Estate Fund’s benchmark index changed from the FTSE EPRA/NAREIT Developed Index to the FTSE EPRA/NAREIT Global Index for purposes of measuring the Fund’s performance and calculating the performance adjustment. Because the Fund’s performance adjustment is based upon a rolling 36-month performance measurement period, comparisons to the FTSE EPRA/NAREIT Global Index will not be fully implemented until 36 months after July 1, 2010. During this transition period, the Fund's returns will be compared to a blended index return. The performance measurement period began on 12/1/2006, and the performance adjustment was implemented as of 12/1/2007. The performance measurement period began on 1/1/2006, and the performance adjustment was implemented as of 1/1/2007. Effective 12/7/11, INTECH Risk-Managed Core Fund was renamed INTECH U.S. Core Fund. The performance measurement period began on 1/1/2009, and the performance adjustment was implemented as of 1/1/2010. The performance measurement period began on 7/1/2010, and the performance adjustment was implemented as of 6/30/2011. Effective 7/1/10, Janus Global Opportunities Fund was renamed Perkins Global Value Fund. The performance measurement period began on 7/1/2010, and the performance adjustment was implemented as of 9/30/2011. The performance measurement period began on 8/1/2010, and the performance adjustment was implemented as of 10/31/2011. The performance measurement period began on 7/1/2010, and the performance adjustment was implemented as of 12/31/2011. The performance measurement period began on 12/31/2010, and the performance adjustment was implemented as of 12/31/2011. The performance measurement period began on 7/29/2011, and the performance adjustment was implemented as of 7/31/2012. The performance measurement period began on 1/1/2012, and the performance adjustment was implemented as of 12/31/2012.

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Complex-Wide: Percent in Top 2 Morningstar Quartiles Based on Total Returns 1-Year 3-Year 5-Year % of Funds % of Assets Complex-wide performance (1) Note: References Morningstar relative performance as of September 30, 2015. Refer to p. 31 for 10-year periods and quantity of funds in the analysis. 46% 61% 63% 61% 48% 24% 27% 31% 33% 39% 88% 94% 88% 94% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 Percent of Janus Managed Equity JIF Funds . 1st Quartile 2nd Quartile 46% 61% 63% 61% 48% 24% 27% 31% 33% 39% 88% 94% 88% 94% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 Percent of Janus Managed Equity JIF Funds . 1st Quartile 2nd Quartile 32% 56% 60% 56% 53% 29% 1% 3% 2% 17% 62% 57% 63% 58% 70% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 29% 46% 47% 41% 61% 42% 35% 22% 35% 18% 71% 82% 69% 75% 79% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 14% 22% 27% 23% 35% 37% 31% 28% 32% 27% 50% 53% 55% 55% 63% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 31% 44% 49% 38% 43% 31% 11% 18% 24% 28% 63% 56% 67% 62% 70% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 26% 32% 37% 32% 42% 38% 34% 24% 32% 30% 64% 66% 61% 64% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 28% 28% 33% 26% 33% 35% 35% 28% 26% 30% 63% 63% 60% 51% 63% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15

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Fundamental Equity: Percent in Top 2 Morningstar Quartiles Based on Total Returns Fundamental equity performance (1) 1-Year 3-Year 5-Year % of Funds % of Assets Note: References Morningstar relative performance as of September 30, 2015. Refer to p. 31 for 10-year periods and quantity of funds in the analysis. 46% 61% 63% 61% 48% 24% 27% 31% 33% 39% 88% 94% 88% 94% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 Percent of Janus Managed Equity JIF Funds . 1st Quartile 2nd Quartile 34% 64% 70% 67% 63% 21% 1% 2% 1% 6% 55% 66% 73% 68% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 33% 54% 54% 48% 58% 33% 27% 15% 23% 17% 66% 81% 68% 71% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 14% 24% 30% 27% 27% 31% 24% 21% 24% 29% 45% 48% 50% 50% 56% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 33% 50% 55% 45% 41% 29% 14% 19% 21% 27% 62% 64% 74% 67% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 24% 36% 38% 35% 38% 35% 31% 23% 25% 26% 59% 67% 60% 60% 64% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15 22% 25% 25% 22% 21% 34% 31% 28% 22% 33% 56% 56% 53% 44% 55% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9/30/14 12/31/14 3/31/15 6/30/15 9/30/15

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Complex-wide mutual fund rankings (1) Morningstar Quartile: 1st 2nd 3rd 4th Note: In accordance with FINRA regulations, rankings cannot be publicly disclosed for time periods of less than one year. Refer to p. 31 for additional Morningstar disclosure. Janus Aspen Series ("JAS") and Janus Investment Funds ("JIF") PM Percentile Rank / Percentile Rank / Percentile Rank / Percentile Rank / Percentile Rank / Inception Morningstar Category Rank (%) Total Funds Rank (%) Total Funds Rank (%) Total Funds Rank (%) Total Funds Rank (%) Total Funds Janus Equity Janus Aspen Balanced Instl Apr-05 Moderate Allocation 16 151/947 15 132/906 23 180/799 1 6/630 3 15/626 Janus Aspen Enterprise Instl Oct-07 Mid-Cap Growth 8 61/770 9 64/719 14 93/690 7 39/625 14 90/652 Janus Aspen Forty Instl Jun-13 Large Growth 1 7/1735 21 344/1695 36 556/1552 14 184/1326 13 218/1709 Janus Aspen Global Allocation Mod Instl Aug-11 World Allocation 30 173/571 27 136/502 / / 12 52/435 Janus Aspen Global Research Instl Mar-11 World Stock 36 449/1261 8 79/1086 53 454/859 55 306/560 48 426/893 Janus Aspen Global Technology Instl May-11 Technology 36 76/209 40 83/206 32 67/206 30 60/198 33 68/206 Janus Aspen Janus Instl May-11 Large Growth 14 235/1735 30 499/1695 63 974/1552 43 573/1326 41 654/1585 Janus Aspen Overseas Instl Jun-03 Foreign Large Blend 98 813/827 97 748/767 98 680/691 22 112/517 11 49/449 Janus Asia Equity I Jul-11 Pacific/Asia ex-Japan Stk 27 25/92 58 49/83 / 59 47/79 Janus Balanced T Apr-05 Moderate Allocation 17 163/947 20 176/906 30 241/799 4 21/630 5 30/626 Janus Contrarian T Jun-11 Large Blend 97 1630/1665 7 96/1522 94 1346/1424 63 760/1206 65 953/1451 Janus Diversified Alternatives I Dec-12 Multialternative 53 221/419 / / 87 233/267 Janus Emerging Markets I Dec-10 Diversified Emerging Mkts 23 191/843 23 146/635 / 66 317/476 Janus Enterprise T Oct-07 Mid-Cap Growth 10 75/770 14 98/719 22 150/690 12 73/625 20 131/652 Janus Forty S Jun-13 Large Growth 1 11/1735 20 341/1695 42 653/1552 21 273/1326 14 230/1709 Janus Global Allocation Cnsrv T Aug-14 World Allocation 17 95/571 45 228/502 39 153/387 14 77/571 Janus Global Allocation Growth T Aug-14 World Allocation 46 263/571 8 40/502 24 94/387 54 309/571 Janus Global Allocation Moderate T Aug-14 World Allocation 32 184/571 27 133/502 33 128/387 38 217/571 Janus Global Life Sciences T Apr-07 Health 14 19/131 3 4/126 22 28/125 27 33/119 22 27/119 Janus Global Real Estate I Nov-07 Global Real Estate 76 188/245 30 63/212 60 116/192 5 8/159 Janus Global Research T Feb-05 World Stock 37 465/1261 29 317/1086 41 349/859 5 27/560 3 12/537 Janus Global Select T Aug-12 World Stock 65 819/1261 19 205/1086 94 812/859 50 280/560 28 299/1079 Janus Global Technology T May-11 Technology 40 83/209 49 102/206 36 75/206 33 65/198 40 82/206 Janus Growth & Income T Nov-07 Large Blend 61 1023/1665 57 864/1522 66 943/1424 84 1022/1206 70 908/1301 Janus International Equity I Jun-10 Foreign Large Growth 95 338/355 53 180/339 75 241/319 / 75 241/318 Janus Overseas T Jun-03 Foreign Large Blend 99 822/827 99 762/767 99 686/691 57 294/517 24 108/449 Janus Preservation Series - Global I Dec-11 World Stock 58 738/1261 91 988/1086 / / 95 916/962 Janus Preservation Series - Growth I May-11 Large Growth 39 670/1735 99 1685/1695 / / 99 1579/1585 Janus Research T Jan-06 Large Growth 16 271/1735 7 119/1695 28 438/1552 13 164/1326 11 141/1350 Janus T May-11 Large Growth 14 237/1735 36 611/1695 71 1103/1552 59 783/1326 53 845/1585 Janus Triton T May-13 Small Growth 24 182/751 12 85/713 19 126/686 2 7/594 21 153/718 Janus Twenty T May-13 Large Growth 56 978/1735 70 1192/1695 80 1244/1552 26 346/1326 66 1135/1709 Janus Venture T May-13 Small Growth 20 145/751 13 91/713 7 46/686 8 45/594 17 117/718 Morningstar Rankings Based on Total Returns as of 09/30/2015 3 Years 1 Year 5 Years 10 Years Since PM Inception

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Complex-wide mutual fund rankings, cont. (1) Morningstar Quartile: 1st 2nd 3rd 4th Note: ‡ In accordance with FINRA regulations, rankings cannot be publicly disclosed for time periods of less than one year. Refer to p. 31 for additional Morningstar disclosure. Since PM inception performance for Perkins Small Cap Value T Shares is not available for comparison. Janus Aspen Series ("JAS") and Janus Investment Funds ("JIF") PM Percentile Rank / Percentile Rank / Percentile Rank / Percentile Rank / Percentile Rank / Inception Morningstar Category Rank (%) Total Funds Rank (%) Total Funds Rank (%) Total Funds Rank (%) Total Funds Rank (%) Total Funds Fixed Income Janus Aspen Flexible Bond Instl May-07 Intermediate-Term Bond 38 416/1095 20 205/1049 17 166/991 2 18/861 2 17/901 Janus Flexible Bond T May-07 Intermediate-Term Bond 45 489/1095 25 259/1049 25 246/991 7 54/861 5 45/901 Janus Global Bond I Dec-10 World Bond 34 128/374 34 117/342 24 68/285 Janus Global Unconstrained Bond I Oct-14 Nontraditional Bond 51 231/449 / / / ‡ Janus High-Yield T Dec-03 High Yield Bond 34 265/793 21 151/709 24 152/627 19 100/528 23 114/509 Janus Multi-Sector Income I Feb-14 Multisector Bond 4 13/309 / / / 7 19/284 Janus Real Return I Oct-12 Multisector Bond 21 65/309 45 112/247 43 106/247 Janus Short-Term Bond T May-07 Short-Term Bond 67 381/567 36 190/522 50 241/479 30 125/419 30 135/454 INTECH Janus Aspen INTECH US Low Volatil Svc Sep-12 Large Blend 1 14/1665 16 236/1522 / / 17 258/1524 INTECH Global Income Mgd Vol I Dec-11 World Stock 7 87/1261 38 409/1086 / 55 532/962 INTECH Intl Mgd Volatility I May-07 Foreign Large Blend 15 120/827 10 77/767 14 96/691 28 163/581 INTECH U.S. Core T Feb-03 Large Growth 65 1126/1735 33 554/1695 22 344/1552 53 699/1326 28 336/1209 INTECH US Mgd Volatility I Dec-05 Large Value 3 30/1433 3 40/1339 5 52/1243 21 233/1099 Perkins Janus Aspen Perkins Mid Cap Value Svc Dec-02 Mid-Cap Value 60 300/498 89 417/465 91 388/423 52 189/361 58 181/313 Perkins Global Value T Apr-05 World Stock 52 652/1261 68 740/1086 42 363/859 51 288/560 64 351/551 Perkins International Value I Apr-13 Foreign Large Value 18 62/353 24 86/353 Perkins Large Cap Value I Dec-08 Large Value 48 686/1433 74 992/1339 70 869/1243 67 822/1220 Perkins Mid Cap Value T Aug-98 Mid-Cap Value 56 280/498 89 416/465 92 389/423 54 197/361 10 16/164 Perkins Select Value I Dec-11 Mid-Cap Value 20 99/498 91 424/465 89 402/452 Perkins Small Cap Value T Feb-97 Small Value 21 90/437 50 207/409 81 299/367 13 40/311 N/A N/A Perkins Value Plus Income I Jul-10 Moderate Allocation 40 377/947 57 520/906 38 306/799 41 323/795 Morningstar Rankings Based on Total Returns as of 09/30/2015 1 Year 3 Years 5 Years 10 Years Since PM Inception

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Mathematical equity performance: relative return strategies (1) Past performance is no guarantee of future results. Notes: Excludes absolute volatility strategies. Returns for periods greater than 1 year are annualized. Refer to p.30 for performance disclosure. Differences may not agree with input data due to rounding. Inception Since Composite and Respective Benchmark Date 1 Year 3 Year 5 Year 10 Year Inception U.S. Enhanced Plus Gross 7/87 3.45 13.97 14.56 7.64 10.65 U.S. Enhanced Plus Net 3.16 13.64 14.22 7.32 10.25 S&P 500 ® Index (0.61) 12.40 13.34 6.80 9.17 Difference versus S&P 500 ® Index Net of Fees 3.77 1.24 0.88 0.52 1.08 U.S. Large Cap Growth Gross 7/93 1.17 12.40 13.56 7.50 12.30 U.S. Large Cap Growth Net 0.69 11.87 13.03 7.00 11.73 S&P 500 ® Growth Index 2.78 13.49 14.72 8.03 9.15 Difference versus S&P 500 ® Growth Index Net of Fees (2.10) (1.62) (1.69) (1.03) 2.58 U.S. Enhanced Index Gross 4/98 (0.09) 12.11 13.40 7.19 6.13 U.S. Enhanced Index Net (0.38) 11.77 13.05 6.86 5.78 S&P 500 ® Index (0.61) 12.40 13.34 6.80 5.16 Difference versus S&P 500 ® Index Net of Fees 0.23 (0.63) (0.29) 0.06 0.62 U.S. Broad Large Cap Growth Gross 11/00 6.27 13.92 15.14 7.77 4.65 U.S. Broad Large Cap Growth Net 5.76 13.36 14.57 7.23 4.11 Russell 1000 ® Growth Index 3.17 13.61 14.47 8.09 2.54 Difference versus Russell 1000 ® Growth Index Net of Fees 2.58 (0.25) 0.10 (0.86) 1.57 U.S. Broad Enhanced Plus Gross 4/01 3.46 13.75 14.46 7.42 7.31 U.S. Broad Enhanced Plus Net 3.16 13.40 14.10 7.10 6.97 Russell 1000 ® Index (0.61) 12.67 13.42 6.95 5.96 Difference versus Russell 1000 ® Index Net of Fees 3.77 0.73 0.69 0.15 1.02 U.S. Large Cap Core Gross 8/01 5.40 14.27 14.50 7.34 7.30 U.S. Large Cap Core Net 4.88 13.72 13.94 6.84 6.80 S&P 500 ® Index (0.61) 12.40 13.34 6.80 5.39 Difference versus S&P 500 ® Index Net of Fees 5.50 1.31 0.61 0.04 1.41 U.S. Broad Large Cap Value Gross 8/04 (2.82) 11.68 13.26 6.52 7.92 U.S. Broad Large Cap Value Net (3.18) 11.27 12.84 6.12 7.51 Russell 1000 ® Value Index (4.42) 11.59 12.29 5.71 6.84 Difference versus Russell 1000 ® Value Index Net of Fees 1.24 (0.33) 0.55 0.41 0.67 Global Large Cap Core Gross 1/05 (1.49) 11.20 10.98 6.84 7.43 Global Large Cap Core Net (1.93) 10.70 10.47 6.31 6.88 MSCI World ® Index (4.57) 9.18 8.89 5.31 5.56 Difference versus MSCI World ® Index Net of Fees 2.64 1.52 1.58 0.99 1.32 International Large Cap Core Gross 11/06 (4.28) 8.91 6.89 - 3.90 International Large Cap Core Net (4.67) 8.46 6.45 - 3.46 MSCI EAFE ® Index (8.27) 6.08 4.44 - 1.36 Difference versus MSCI EAFE ® Index Net of Fees 3.59 2.38 2.00 - 2.10 U.S. Broad Enhanced Index Gross 10/08 (0.45) 12.37 13.44 - 9.89 U.S. Broad Enhanced Index Net (0.67) 12.13 13.19 - 9.61 Russell 1000 ® Index (0.61) 12.67 13.42 - 10.02 Difference versus Russell 1000 ® Index Net of Fees (0.05) (0.54) (0.23) - (0.40) Annualized Returns (%) for Periods Ended 9/30/2015 (2)

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Mathematical equity performance: relative return strategies (cont.) (1) Past performance is no guarantee of future results. Notes: Excludes absolute volatility strategies. Returns for periods greater than 1 year are annualized. Refer to p.30 for performance disclosure. Differences may not agree with input data due to rounding. Inception Since Composite and Respective Benchmark Date 1 Year 3 Year 5 Year 10 Year Inception Global Large Cap Core ex Japan (Kokusai) Gross 5/09 (2.20) 11.40 11.29 - 14.15 Global Large Cap Core ex Japan (Kokusai) Net (2.62) 10.88 10.73 - 13.57 MSCI KOKUSAI ® World ex Japan Index (4.81) 9.18 9.27 - 12.84 Difference versus MSCI KOKUSAI ® World ex Japan Index Net of Fees 2.19 1.70 1.46 - 0.73 European Large Cap Core Gross (EUR) 1/10 9.77 16.47 13.09 - 13.60 European Large Cap Core Net (EUR) 9.22 15.85 12.49 - 12.99 MSCI Europe ® Index (EUR) 3.15 11.77 9.20 - 8.88 Difference versus MSCI Europe ® Index (EUR) Net of Fees 6.07 4.09 3.28 - 4.10 Global All Country Enhanced Index Gross 11/11 (5.45) 8.15 - - 9.04 Global All Country Enhanced Index Net (5.78) 7.77 - - 8.67 MSCI All Country World ® Index (6.16) 7.52 - - 8.28 Difference versus MSCI All Country World ® Index Net of Fees 0.38 0.26 - - 0.39 Enhanced Index North America Gross 7/12 (2.00) 11.40 - - 12.64 Enhanced Index North America Net (2.26) 11.09 - - 12.33 MSCI North America ® Index (2.17) 11.25 - - 12.58 Difference versus MSCI North America ® Index Net of Fees (0.10) (0.16) - - (0.25) Large Cap Core USA Gross 8/12 (1.07) 12.60 - - 13.79 Large Cap Core USA Net (1.50) 12.13 - - 13.32 MSCI USA ® Index (0.58) 12.47 - - 13.50 Difference versus MSCI USA ® Index Net of Fees (0.93) (0.34) - - (0.18) Global All Country Core Gross 5/13 (3.68) - - - 5.08 Global All Country Core Net (4.18) - - - 4.50 MSCI All Country World ® Index (6.16) - - - 4.00 Difference versus MSCI All Country World ® Index Net of Fees 1.98 - - - 0.50 Emerging Markets Core Gross 6/13 (12.98) - - - (5.69) Emerging Markets Core Net (13.67) - - - (6.43) MSCI Emerging Markets® Index (18.98) - - - (7.14) Difference versus MSCI Emerging Markets ® Index Net of Fees 5.31 - - - 0.71 Global All Country Core Select Gross 6/13 (2.86) - - - 5.81 Global All Country Core Select Net (3.51) - - - 5.09 MSCI All Country World ® Index (6.16) - - - 4.23 Difference versus MSCI All Country World ® Index Net of Fees 2.65 - - - 0.86 Global Defensive Core Gross 4/14 3.59 - - - 3.79 Global Defensive Core Net 3.02 - - - 3.23 Russell Global Large Cap Defensive ® Index (4.11) - - - (0.63) Difference versus Russell Global Large Cap Defensive ® Index Net of Fees 7.13 - - - 3.86 Global All Country Core ex U.S. Gross 7/14 (8.57) - - - (11.30) Global All Country Core ex U.S. Net (9.12) - - - (11.83) MSCI All Country World ® ex USA Index (11.78) - - - (13.32) Difference versus MSCI All Country World ® ex USA Index Net of Fees 2.66 - - - 1.49 Annualized Returns (%) for Periods Ended 9/30/2015 (2)

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Mathematical equity performance disclosure For the period ending September 30, 2015, 100%, 100%, 100% and 60% of the mathematical equity mutual funds were beating their benchmarks on a 1-, 3-, 5-year and since-fund inception basis. Funds included in the analysis and their inception dates are: INTECH U.S. Core Fund – Class T (2/03); INTECH US Managed Volatility Fund – Class I (12/05); INTECH International Managed Volatility Fund – Class I (5/07), INTECH Global Income Managed Volatility Fund – Class I (12/11) and INTECH Emerging Markets Managed Volatility Fund – Class I (12/14). INTECH's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets and may not achieve the desired level of protection in down markets. The proprietary mathematical process used by INTECH may not achieve the desired results. Since the portfolios are regularly re-balanced, this may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a "buy and hold" or index fund strategy. Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Performance results reflect the reinvestment of dividends and other earnings. Composite performance results shown are time-weighted rates of return using daily valuation, include the effect of transaction costs (commissions, exchange fees, etc.), and are gross of non-reclaimable withholding taxes, if any. The composites include all actual fee-paying accounts managed on a fully discretionary basis according to the investment strategy from inception date, including those no longer under management. Portfolios meeting such criteria enter the composite upon the full first month under management. Reporting currency is USD, unless otherwise noted. The gross performance results presented do not reflect the deduction of investment advisory fees. Returns will be reduced by such advisory fees and other contractual expenses as described in each client’s individual contract. The net performance results do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite. However, the net performance results do reflect the deduction of model investment advisory fees. Through 12/31/04, net returns were derived using the maximum fixed fee in effect for each strategy. As of 1/1/05, net returns are calculated by applying the standard fee schedule in effect for the respective period to each account in the composite on a monthly basis. Actual advisory fees may vary among clients invested in this strategy. Actual advisory fees paid may be higher or lower than model advisory fees. Some clients may utilize a performance-based fee. For U.S. Large Cap Growth from inception to 12/31/05, the composite’s benchmark was the S&P 500/Barra Growth Index (“Barra Growth Index”). In 2005, S&P announced index name and methodology changes affecting the Barra Growth Index, which later became the S&P 500/Citigroup Growth Index (“Citigroup Growth Index”). During the transitional period, from 1/1/06 to 3/31/06, the benchmark return consisted partially of the return of the Barra Growth Index and the Citigroup Growth Index. On 4/1/06, the composite’s benchmark was changed to the Citigroup Growth Index. Effective 12/9/2009, the Citigroup Growth Index's name was changed to S&P 500 Growth Index. The S&P 500 Growth Index is a market-capitalization-weighted index developed by Standard and Poor's consisting of those stocks within the S&P 500 Index that exhibit strong growth characteristics. The index measures the performance of the growth style of investing in large cap U.S. stocks. The S&P 500 Growth Index will be reconstituted annually. Prior to May 21, 2010, with respect to non-U.S. securities traded on non-U.S. exchanges, INTECH used fair value prices that reflected current market conditions at the end of regular trading hours of the NYSE, normally 4:00 PM ET, rather than unadjusted closing prices in local markets. Therefore, the prices as well as foreign exchange rates used to calculate the U.S. dollar market values of securities may have differed from those used by an index. Indices typically use the unadjusted closing price in local markets instead of fair value pricing. As of May 21, 2010, prices for non-U.S. securities traded on non-U.S. exchanges are valued as of the close of their respective local markets. Non-U.S. securities are translated into U.S. dollars using the 4:00 PM London spot rate. Non-U.S. investments are subject to certain risks of overseas investing, including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets. With respect to European Large Cap Core, prices assigned to investments are published prices on their primary markets or exchanges since the composite’s inception. The returns for the indices shown do not include any transaction costs, management fees or other costs, and are gross of dividend tax withholdings. Mathematical equity strategies included in the investment performance summaries include those strategies with at least a 1-year track record. Absolute volatility strategies are excluded. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products This report has not been approved, reviewed or produced by MSCI.

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Other important disclosures Data presented reflects past performance, which is no guarantee of future results. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS (52687) or visit janus.com/advisor/mutual-funds for performance, rankings and ratings current to the most recent month-end. Janus Capital Group Inc. (“JCG”) provides investment advisory services through its primary subsidiaries, Janus Capital Management LLC (“Janus”), INTECH Investment Management LLC (“INTECH”) and Perkins Investment Management LLC (“Perkins”). VelocityShares ETNs are issued by Credit Suisse AG (Credit Suisse), the Janus Volatility Hedged Large Cap ETF and the Janus Velocity Tail Risk Hedged ETF are advised by ALPS Advisors, Inc. (ALPS), and the Janus Equal Risk Weighted Large Cap ETF is advised by Exchange Traded Concepts, LLC (ETC). Credit Suisse, ALPS and ETC are not affiliated with Janus Capital Group Inc. “Complex-Wide Mutual Funds” means all affiliated mutual funds managed by Janus, INTECH and Perkins. “Fundamental Equity Mutual Funds” means all mutual funds managed by Janus or Perkins that invest in equity securities. “Fixed Income Mutual Funds” means all mutual funds managed by Janus that invest primarily in fixed income securities. “Mathematical Equity Strategies” means all relative return, discretionary managed accounts (not mutual funds) that are advised or sub-advised by INTECH. Mutual fund relative performance analysis shown is for each Fund's parent share class (typically the share class with the longest performance history): Class T, S or I Shares in the Janus retail fund (“JIF”) trust and the Institutional or Service Shares in the Janus Aspen Series (“JAS”). These share classes may not be eligible for purchase by all investors. Other share classes may have higher sales and management fees, which can result in differences in performance. Morningstar Comparative Performance Morningstar performance on an asset-weighted basis is calculated by taking all funds and assigning the assets under management ("AUM") in each respective fund to either the 1st, 2nd, 3rd or 4th quartile bucket based on each fund's respective Morningstar relative ranking. The total AUM of each quartile’s bucket is then divided by complex-wide total AUM to arrive at the respective percent of AUM in each bucket. The Morningstar percentile ranking is based on the fund’s total-return percentile rank relative to all funds that have the same category for the same time period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. Morningstar total-return includes both income and capital gains or losses and is not adjusted for sales charges. The top-performing funds in a category will always receive a rank of 1. For the 1-, 3-, 5- and 10-year periods ending September 30, 2015, 70%, 72%, 63% and 71% of the 54, 50, 40 and 31 Complex-Wide mutual funds; 68%, 64%, 55% and 69% of the 41, 39, 33 and 26 Fundamental Equity mutual funds; 75%, 100%, 100% and 100% of the 8, 6, 4 and 4 Fixed Income mutual funds outperformed the majority of their Morningstar peers based on total returns. On an asset-weighted basis, 76% of the Complex-Wide mutual fund assets, 72% of the Fundamental Equity mutual fund assets and 100% of the Fixed Income mutual fund assets outperformed the majority of their Morningstar peers based on total returns for the 10-year period. The Overall Morningstar RatingTM for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar RatingTM metrics. For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Morningstar RatingTM may differ among share classes of a mutual fund as a result of different sales loads and/or expense structures. It may be based, in part, on the performance of a predecessor fund. Morningstar does not rate funds with less than a 3-year performance history. For the period ending September 30, 2015, 58%, 50% and 65% of Complex-Wide mutual funds had a 4- or 5-star Morningstar rating for the 3-, 5- and 10-year periods based on risk-adjusted returns for 50, 40 and 31 funds, respectively. 50 funds were included in the analysis for the Overall period. Investing involves risk, including the possible loss of principal. The value of your investment will fluctuate over time and you may gain or lose money. A fund’s performance may be affected by risks that include those associated with non-diversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to funds may include those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity linked Investments and companies with relatively small market capitalizations. Each fund has different risks, please see a Janus prospectus for more information about risks, fund holdings and other details.

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Other important disclosures Indexes are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio. Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Russell Midcap® Value Index measures the performance of those Russell Midcap® companies with lower price-to-book ratios and lower forecasted growth rates. Russell 2000® Value Index measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. S&P 500® Index is a commonly recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. MSCI World IndexSM is a market capitalization weighted index composed of companies representative of the market structure of Developed Market countries in North America, Europe and the Asia/Pacific Region. MSCI EAFE® Index is a market capitalization weighted index composed of companies representative of the market structure of Developed Market countries in Europe, Australasia and the Far East. MSCI World Growth Index is a subset of the Morgan Stanley Capital WorldSM Index which is a market capitalization weighted index composed of companies representative of the market structure of developed market countries around the world. The index includes reinvestment of dividends, net of foreign withholding taxes. MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure performance of global developed and emerging equity markets. MSCI All Country World ex-U.S. IndexSM is an unmanaged, free float-adjusted, market capitalization weighted index composed of stocks of companies located in countries throughout the world, excluding the United States. It is designed to measure equity market performance in global developed and emerging markets outside the United States. The index includes reinvestment of dividends, net of foreign withholding taxes. Russell 1000 Index measures performance of the 1,000 largest companies in the Russell 3000 Index. Core Growth Index is an internally calculated, hypothetical combination of unmanaged indices that combines total returns from the Russell 1000® Growth Index (50%) and the S&P 500® Index (50%). MSCI USA Index is a free float-adjusted market capitalization index that is designed to measure large and mid cap U.S. equity market performance. MSCI World ex Australia Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets excluding Australia. MSCI KOKUSAI World ex Japan Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets excluding Japan. MSCI Europe Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe. MSCI North America Index is a free float-adjusted market capitalization-weighted index that is designed to measure the performance of the developed equity markets in Canada and the United States. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Russell Global Large Cap Defensive Index measures the performance of the investable securities in the Global Large Cap Defensive segment of the market. Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 1-800-525-3713 or download the file from www.janus.com. Read it carefully before you invest or send money. Funds distributed by Janus Distributors LLC. C-1015-101922 01-15-16

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Safe harbor statement This presentation includes statements concerning potential future events involving Janus Capital Group Inc. that could differ materially from the events that actually occur. The differences could be caused by a number of factors including those factors identified in Janus’ Annual Report on Form 10-K for the year ended December 31, 2014, on file with the Securities and Exchange Commission (Commission file no. 001-15253), including those that appear under headings such as “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Many of these factors are beyond the control of the company and its management. Any forward-looking statements contained in this presentation are as of the date on which such statements were made. The company assumes no duty to update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or implied therein will not be realized.

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