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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)

April 26, 2016

 

 

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 April 26, 2016, Janus Capital Group Inc. (“JCG”) issued a press release reporting its financial results for the first quarter 2016. 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 first quarter 2016.

 

99.2                        Janus Capital Group Inc. first quarter 2016 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: April 26, 2016

 

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 first quarter 2016.

 

 

 

99.2

 

Janus Capital Group Inc. first quarter 2016 earnings presentation.

 

3


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

April 26, 2016

 

JANUS CAPITAL GROUP INC. ANNOUNCES

FIRST QUARTER 2016 RESULTS

 

DENVER — Janus Capital Group Inc. (“JCG”) (NYSE: JNS) today reported first quarter 2016 net income of $35.1 million, or $0.19 per diluted share, compared with fourth quarter 2015 net income of $46.6 million, or $0.25 per diluted share, and net income of $44.6 million, or $0.23 per diluted share, in the first quarter 2015.

 

Flows, Assets Under Management, and Exchange-Traded Products

 

Average assets under management during the first quarter 2016 were $180.2 billion compared with $191.2 billion during the fourth quarter 2015 and $186.0 billion during the first quarter 2015.

 

At March 31, 2016, JCG’s complex-wide assets totaled $191.3 billion compared with $192.3 billion at December 31, 2015, and $192.4 billion at March 31, 2015. The decrease in complex-wide assets during the first quarter 2016 reflects net market deprecation of $1.3 billion and long-term net outflows of $0.3 billion, partially offset by exchange-traded product net inflows of $0.6 billion. Fundamental equity (Janus and Perkins equity flows) and fixed income long-term outflows of $0.9 billion and $0.1 billion, respectively, each in the first quarter were partially offset by mathematical equity long-term net inflows of $0.7 billion.

 



 

Investment Performance

 

As of March 31, 2016, 59% of complex-wide mutual funds had a 4- or 5-star Overall Morningstar RatingTM.(1)

 

As of March 31, 2016, 67%, 84% and 82% 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 March 31, 2016, 20%, 100% and 83% 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 as of March 31, 2016.(3)

 

As of March 31, 2016, 42%, 53% and 67% 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 March 31, 2016, 59%, 55% and 63% 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 49, 42 and 35 funds, respectively. 49 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 March 31, 2016, 76% 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 March 31, 2016, 67%, 61%, 65% and 76% of the 39, 38, 34 and 29 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 March 31, 2016, 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 March 31, 2016, 56%, 100%, 80% and 100% of the 9, 6, 5 and 4 fixed income mutual funds outperformed the majority of their Morningstar peers based on total returns.

 

(4)         For the period ending March 31, 2016, 83%, 100%, 100% and 83% 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 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), Janus Aspen INTECH U.S. Low Volatility Portfolio — Service Shares (9/12) and INTECH Emerging Markets Managed Volatility Fund — Class I (12/14).

 



 

Financial Discussion

 

Financial Highlights

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

 

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2015

 

2015

 

 

 

 

 

 

 

 

 

Average Assets Under

 

 

 

 

 

 

 

Management (in billions)

 

$

180.2

 

$

191.2

 

$

186.0

 

Ending Complex-Wide

 

 

 

 

 

 

 

Assets (in billions)

 

$

191.3

 

$

192.3

 

$

192.4

 

Revenues

 

$

248.5

 

$

267.8

 

$

262.7

 

Operating Expenses

 

$

185.9

 

$

187.0

 

$

186.7

 

Operating Income

 

$

62.6

 

$

80.8

 

$

76.0

 

Operating Margin

 

25.2

%

30.2

%

28.9

%

 

 

 

 

 

 

 

 

Net Income Attributable to JCG

 

$

35.1

 

$

46.6

 

$

44.6

 

 

 

 

 

 

 

 

 

Diluted Earnings per Share

 

$

0.19

 

$

0.25

 

$

0.23

 

 

First quarter 2016 revenues of $248.5 million decreased from fourth quarter 2015 due to lower investment management fees and shareholder servicing fees as a result of lower average assets under management. First quarter 2016 operating expenses of $185.9 million decreased $1.1 million from fourth quarter operating expenses of $187.0 million, primarily due to lower distribution and general, administrative and occupancy expenses, partially offset by seasonally higher employee compensation expense compared to the fourth quarter 2015.

 

Capital and Liquidity

 

At March 31, 2016, JCG had total equity of $1.7 billion, cash and investments of $608.4 million and outstanding debt of $403.3 million.

 

Cash flows from operations during the first quarter 2016 were ($46.7) million compared with $124.0 million during the fourth quarter 2015 and ($58.9) million during the first quarter 2015. The change in cash flows from operations comparing first quarter 2016 to fourth quarter 2015 is due to payment of annual incentive compensation in the first quarter 2016.

 

As part of its capital management, JCG repurchased 2,542,784 shares of its common stock at an average price of $12.82 per share and a total cost of $32.6 million during the first quarter 2016.

 



 

Additionally, the Board of Directors approved a 22% increase in the Company’s regular quarterly dividend to $0.11 per share from $0.09 per share, and on April 21, 2016, declared a regular quarterly cash dividend of $0.11 per share. The quarterly dividend will be paid on May 20, 2016, to stockholders of record at the close of business on May 9, 2016.

 

First Quarter 2016 Earnings Call Information

 

JCG will host a conference call and webcast to discuss its results on Tuesday, April 26, 2016, 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 and smart beta investment solutions, including fixed income, equity, alternative and multi-asset class strategies. JCG operates through a number of distinct asset management investment platforms, including investment teams within Janus Capital Management LLC (Janus), INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins), in addition to a suite of exchange-traded products (ETPs) under the VelocityShares brand and a suite of 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. Based in Denver, JCG has offices located in 12 countries throughout North America, Europe, Asia and Australia; the firm had complex-wide assets under management and ETP assets totaling $191.3 billion as of March 31, 2016.

 

Investor Relations Contact:

Media Contact:

John Groneman

Erin Passan

[email protected]

[email protected]

(303) 336-7466

(303) 394-7681

 



 

JANUS CAPITAL GROUP INC.

UNAUDITED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

 

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2015

 

2015

 

Revenues:

 

 

 

 

 

 

 

Investment management fees

 

$

210.3

 

$

226.4

 

$

222.6

 

Performance fees

 

(2.4

)

(1.9

)

(2.3

)

Shareowner servicing fees and other

 

40.6

 

43.3

 

42.4

 

Total revenues

 

248.5

 

267.8

 

262.7

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

 

87.9

 

84.0

 

91.4

 

Long-term incentive compensation

 

19.5

 

19.3

 

20.2

 

Marketing and advertising

 

5.3

 

5.9

 

5.7

 

Distribution

 

32.4

 

35.3

 

34.2

 

Depreciation and amortization

 

9.1

 

9.0

 

7.4

 

General, administrative and occupancy

 

31.7

 

33.5

 

27.8

 

Total operating expenses

 

185.9

 

187.0

 

186.7

 

 

 

 

 

 

 

 

 

Operating income

 

62.6

 

80.8

 

76.0

 

 

 

 

 

 

 

 

 

Interest expense

 

(5.2

)

(5.2

)

(7.3

)

Investment gains (losses), net

 

1.7

 

(2.3

)

4.4

 

Other income (expense), net

 

1.8

 

4.3

 

(0.1

)

Income tax provision

 

(23.9

)

(29.3

)

(26.8

)

 

 

 

 

 

 

 

 

Net income

 

37.0

 

48.3

 

46.2

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

(1.9

)

(1.7

)

(1.6

)

 

 

 

 

 

 

 

 

Net income attributable to JCG

 

$

35.1

 

$

46.6

 

$

44.6

 

 

 

 

 

 

 

 

 

Net income attributable to JCG

 

$

35.1

 

$

46.6

 

$

44.6

 

Less: Allocation of earnings to restricted stock

 

1.3

 

1.6

 

1.6

 

Net income attributable to JCG common shareholders

 

$

33.8

 

$

45.0

 

$

43.0

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding (in millions)

 

178.4

 

178.0

 

180.2

 

Diluted weighted-average shares outstanding (in millions)

 

181.3

 

183.6

 

188.2

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.19

 

$

0.25

 

$

0.23

 

 

 

 

 

 

 

 

 

Average assets under management (in billions)

 

$

180.2

 

$

191.2

 

$

186.0

 

 



 

JANUS CAPITAL GROUP INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions)

 

 

 

March 31,

 

December 31,

 

 

 

2016

 

2015

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

307.2

 

$

364.4

 

Investment securities

 

262.7

 

327.1

 

Other assets

 

191.4

 

182.2

 

Property and equipment, net

 

37.9

 

38.7

 

Intangible assets and goodwill, net

 

1,962.3

 

1,955.3

 

Assets of consolidated variable interest entities

 

39.6

 

 

Total assets

 

$

2,801.1

 

$

2,867.7

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Debt

 

$

403.3

 

$

402.3

 

Other liabilities

 

157.6

 

272.6

 

Deferred income taxes

 

523.2

 

498.9

 

Liabilities of consolidated variable interest entities

 

0.7

 

 

Redeemable noncontrolling interests

 

29.0

 

21.8

 

Total equity

 

1,687.3

 

1,672.1

 

Total liabilities, redeemable noncontrolling interests and equity

 

$

2,801.1

 

$

2,867.7

 

 

UNAUDITED CONDENSED CONSOLIDATED

CASH FLOW INFORMATION

(dollars in millions)

 

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2015

 

2015

 

Cash provided by (used in):

 

 

 

 

 

 

 

Operating activities

 

$

(46.7

)

$

124.0

 

$

(58.9

)

Investing activities

 

41.4

 

5.4

 

(33.0

)

Financing activities

 

(51.9

)

(57.5

)

(5.2

)

Effect of exchange rate changes

 

 

0.1

 

(0.3

)

Net change during period

 

$

(57.2

)

$

72.0

 

$

(97.4

)

 



 

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”) (3)

 

Money
Market

 

Total
Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

 

$

64.3

 

$

20.1

 

$

48.8

 

$

45.2

 

$

8.3

 

$

186.7

 

$

3.3

 

$

1.3

 

$

191.3

 

Sales

 

3.3

 

0.6

 

2.1

 

3.6

 

0.4

 

10.0

 

3.8

 

0.2

 

14.0

 

Redemptions

 

(3.2

)

(1.4

)

(1.4

)

(3.7

)

(0.6

)

(10.3

)

(3.2

)

(0.2

)

(13.7

)

Net Sales (Redemptions)

 

0.1

 

(0.8

)

0.7

 

(0.1

)

(0.2

)

(0.3

)

0.6

 

 

0.3

 

Market/Fund Performance

 

(0.7

)

(1.6

)

0.5

 

0.9

 

0.1

 

(0.8

)

(0.5

)

 

(1.3

)

December 31, 2015

 

$

64.9

 

$

22.5

 

$

47.6

 

$

44.4

 

$

8.4

 

$

187.8

 

$

3.2

 

$

1.3

 

$

192.3

 

Sales

 

3.2

 

1.3

 

1.5

 

5.8

 

0.3

 

12.1

 

2.6

 

0.1

 

14.8

 

Redemptions

 

(3.7

)

(1.6

)

(3.0

)

(3.4

)

(1.0

)

(12.7

)

(1.9

)

(0.1

)

(14.7

)

Net Sales (Redemptions)

 

(0.5

)

(0.3

)

(1.5

)

2.4

 

(0.7

)

(0.6

)

0.7

 

 

0.1

 

Market/Fund Performance

 

3.8

 

1.1

 

2.5

 

0.4

 

0.4

 

8.2

 

(1.0

)

 

7.2

 

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

 

3.7

 

0.3

 

15.7

 

Redemptions

 

(4.0

)

(2.3

)

(3.1

)

(4.4

)

(1.2

)

(15.0

)

(1.9

)

(0.2

)

(17.1

)

Net Sales (Redemptions)

 

(0.9

)

0.4

 

(1.6

)

(0.2

)

(1.0

)

(3.3

)

1.8

 

0.1

 

(1.4

)

Market/Fund Performance

 

(4.6

)

(3.0

)

(2.6

)

(1.0

)

(0.7

)

(11.9

)

(1.3

)

 

(13.2

)

Acquisitions (2)

 

 

 

 

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

 

2.7

 

0.2

 

14.5

 

Redemptions

 

(3.5

)

(1.7

)

(2.2

)

(2.4

)

(1.6

)

(11.4

)

(2.7

)

(0.2

)

(14.3

)

Net Sales (Redemptions)

 

0.1

 

0.9

 

 

0.3

 

(1.1

)

0.2

 

 

 

0.2

 

Market/Fund Performance

 

(0.3

)

0.6

 

(0.3

)

(0.3

)

(0.1

)

(0.4

)

0.3

 

 

(0.1

)

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

 

3.6

 

0.1

 

16.0

 

Redemptions

 

(3.0

)

(1.4

)

(2.7

)

(2.7

)

(1.4

)

(11.2

)

(2.8

)

(0.2

)

(14.2

)

Net Sales (Redemptions)

 

0.9

 

1.3

 

(1.3

)

0.8

 

(0.6

)

1.1

 

0.8

 

(0.1

)

1.8

 

Market/Fund Performance

 

2.5

 

1.2

 

1.4

 

0.5

 

 

5.6

 

(0.5

)

 

5.1

 

December 31, 2014

 

$

63.9

 

$

20.3

 

$

51.0

 

$

34.4

 

$

12.2

 

$

181.8

 

$

2.4

 

$

1.3

 

$

185.5

 

 


Notes:

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

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

(3)  ETP sales and redemptions across all periods (exclusive of the first quarter 2016) were adjusted due to a revised reporting method by the subsidiary; ending and average assets were not impacted.

 



 

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.

 



 

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.

 



 

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, 2015, 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-0416-1046 07-15-16

 


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Section 3: EX-99.2 (EX-99.2)

Exhibit 99.2

First Quarter 2016 Earnings Presentation April 26, 2016 Dick Weil Chief Executive Officer Jennifer McPeek Chief Financial Officer

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Executive summary 1Q 2016 total company long-term net flows of $(0.3) billion, compared to $(0.6) billion in 4Q 2015 INTECH net flows of $0.7 billion marked the strongest quarter of flows for this business since 3Q 2013 With fixed income flows of $(0.1) billion, we continued to capture market share, despite recent changes in fundamental fixed income leadership (1) Fundamental equity net flows of $(0.9) billion, compared to $(1.5) billion in 4Q 2015 Investment performance was mixed during the quarter; however, most mutual funds with a focus on volatility management or risk mitigation delivered strong relative returns (2) 1Q 2016 operating margin of 25.2% reflects a 6% decline in average AUM levels quarter over quarter, as well as 1Q seasonal compensation expenses Our Board of Directors approved a $0.02 increase in the regular quarterly dividend to $0.11 per share from $0.09 per share Notes: Industry data per Strategic Insight. Comparable industry fixed income flows reflect U.S.-domiciled, actively-managed, taxable bond mutual fund flows. Reflects investment performance across complex-wide mutual funds as defined on p. 29.

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Janus Capital Group 1Q 2016 results 1Q 2016 EPS of $0.19 compared to 4Q 2015 EPS of $0.25 Assets Under Management of $188.0 at March 31, 2016 decreased 1% versus December 31, 2015 Operating margin in 1Q 2016 of 25.2% versus 30.2% in 4Q 2015 Total company long-term net flows were $(0.3) billion in 1Q 2016 compared to $(0.6) billion in 4Q 2015 Generated LTM cash flow from operations of $286.6 million EPS AUM(1) Long-Term Net Flows Margin Cash Flow From Operations Note: AUM does not include $3.3 billion of VelocityShares ending assets.

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1Q 2016 Results Jennifer McPeek Chief Financial Officer

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1Q 2016 financial review EPS Average AUM(1) ($ in billions) Total Revenue ($ in millions) Operating Income & Operating Margin ($ in millions) Quarter over Quarter Year over Year Note: Average AUM does not include VelocityShares average assets. $80.8 $62.6 30.2% 25.2% 4Q 2015 1Q 2016 $0.25 $0.19 4Q 2015 1Q 2016 $267.8 $248.5 4Q 2015 1Q 2016 $262.7 $248.5 1Q 2015 1Q 2016 $76.0 $62.6 28.9% 25.2% 1Q 2015 1Q 2016 $186.0 $180.2 1Q 2015 1Q 2016 $0.23 $0.19 1Q 2015 1Q 2016 $191.2 $180.2 4Q 2015 1Q 2016

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1Q 2016 investment performance summary Notes: References Morningstar relative performance on an asset-weighted, total return basis as of March 31, 2016. Refer to p. 22 and 23 for the 1-, 3- and 5-year periods and p. 29 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 March 31, 2016, as shown on p. 26 and 27. Refer to p. 28 for INTECH mutual fund analysis and disclosure. Complex-wide as of March 31, 2016. Refer to p. 29 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 March 31, 2016 1-Year 3-Year 5-Year % of Assets in Top Two Morningstar Quartiles Complex-Wide Mutual Fund Assets (1) 61% 86% 82% Fundamental Equity Mutual Fund Assets (1) 67% 84% 82% Fixed Income Mutual Fund Assets (1) 20% 100% 83% % of Relative Return Strategies Which Outperformed Respective Benchmarks Mathematical Equity Strategies (2) 42% 53% 67% % of Complex-Wide Mutual Funds with 4- or 5-Star Overall Morningstar Rating TM Complex-Wide Mutual Funds (3) 59%

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1Q 2016 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. 27% 25% 25% 27% 22% Total Company Long-Term Flows (1,2) ($ in billions) Gross Redemptions Gross Sales Net Sales Annualized Redemption Rate Annualized Gross Sales Rate 31% 27% 23% 21% 18% 24% 27% 29% 27% 22% 11% 17% 12% 13% 18% 22% 18% 25% 26% 12% 41% 30% 39% 55% 33% 32% 27% 41% 32% 33% Fundamental Equity ($ in billions) Mathematical Equity ($ in billions) Fixed Income ($ in billions) 25% 24% 32% 28% 22% $3.5 $2.7 $4.2 $5.8 $3.6 ($2.7) ($2.4) ($4.4) ($3.4) ($3.7) $0.8 $0.3 ($0.2) $2.4 ($0.1) ($12) ($6) $0 $6 $12 1Q15 2Q15 3Q15 4Q15 1Q16 $1.4 $2.2 $1.5 $1.5 $2.1 ($2.7) ($2.2) ($3.1) ($3.0) ($1.4) ($1.3) ($0.0) ($1.6) ($1.5) $0.7 ($6) ($3) $0 $3 $6 1Q15 2Q15 3Q15 4Q15 1Q16 $7.4 $6.7 $6.0 $4.8 $4.3 ($5.8) ($6.8) ($7.5) ($6.3) ($5.2) $1.6 ($0.1) ($1.5) ($1.5) ($0.9) ($20) ($10) $0 $10 $20 1Q15 2Q15 3Q15 4Q15 1Q16 $12.3 $11.6 $11.7 $12.1 $10.0 ($11.2) ($11.4) ($15.0) ($12.7) ($10.3) $1.1 $0.2 ($3.3) ($0.6) ($0.3) ($32) ($16) $0 $16 $32 1Q15 2Q15 3Q15 4Q15 1Q16

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1Q 2016 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 decreased 7% quarter over quarter Management fees and shareholder servicing fees declined mid-single digits quarter over quarter, corresponding to a similar decline in average AUM Performance fees declined modestly quarter over quarter, as a result of lower mutual fund and private account performance fees $43.3 $40.6 ($1.9) ($2.4) $226.4 $210.3 $267.8 $248.5 4Q 2015 1Q 2016

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1Q 2016 operating expenses Operating Expenses ($ in millions) Note: 2016 annual long-term incentive compensation is currently expected to be $70-75 million. (1) 1Q 2016 operating expenses of $185.9 million decreased $1.1 million compared to 4Q 2015 Total compensation increased 4%, primarily from seasonal payments Distribution expenses declined $2.9 million, in line with a decrease in average AUM G&A expense declined $1.8 million due to the absence of certain costs from the prior quarter, partially offset by an increase in the projected earnout payment for VelocityShares 1Q 2016 operating margin of 25.2% compared to 4Q 2015 operating margin of 30.2% $33.5 $31.7 $9.0 $9.1 $35.3 $32.4 $5.9 $5.3 $19.3 $19.5 $84.0 $87.9 $187.0 $185.9 4Q 2015 1Q 2016 $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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1Q 2016 balance sheet profile 3/31/2016 2018 Maturity Investment Securities(2) 12/31/2015 Cash & Investments Debt Debt Cash and Cash Equivalents Notes: Numbers may not foot due to rounding. Includes Seed Investments of $306.6 million, Investments in Advised Mutual Funds of $4.2 million and Investments Related to Deferred Compensation Plans of $16.3 million as of December 31, 2015; includes Seed Investments of $280.2 million (including investment securities of consolidated variable interest entities of $38.5 million), Investments in Advised Mutual Funds of $4.3 million and Investments Related to Deferred Compensation Plans of $16.7 million as of March 31, 2016. 2025 Maturity Cash & Investments Balance Sheet Profile (Carrying Value) (1) – 12/31/2015 vs. 3/31/2016 ($ in millions) Total cash and investments decreased $83 million quarter over quarter Cash and cash equivalents decreased $57 million, driven by seasonal compensation payments Investments decreased $26 million, due to the redemption of seed capital during the current quarter During 1Q 2016, we returned $50 million to shareholders in the form of dividends and share repurchases Share repurchases – $33 million (repurchased 2.5 million shares at an average price of $12.82 per share) Quarterly dividends – $17 million $364 $307 $327 $301 $692 $608 $295 $295 $108 $108 $402 $403

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Topics of Discussion Dick Weil Chief Executive Officer

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INTECH Firm-Wide Annualized Rolling 3-Year Period Composite Performance INTECH rolling 3-year performance Older rolling periods reflect fewer strategies than more recent rolling periods. Performance for rolling periods other than three years are different and are available upon request. Data reflects past performance, which does not guarantee future results. Performance presented net of fees. Performance includes the reinvestment of dividends and other earnings. Outperformance is not indicative of positive absolute performance. Rolling periods calculated quarterly since each strategy’s inception. Chart includes performance for all active relative-risk strategies with at least a three-year track record. Chart excludes terminated published composites. See p. 26 and 27 for standardized performance and p. 28 for additional information on the strategies, inception dates and benchmarks included in this chart. INTECH composites outperformed their respective benchmarks 68% of the time over the annualized, rolling, 3-year measurement periods From July 1, 1987 through March 31, 2016 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Benchmark (Absolute Performance) INTECH strategies outperformed 374 of 548 periods, or 68% of the time (15 composites, net of fees). Underperformance Outperformance INTECH Composite (Absolute Performance, Net of Fees) Annualized Rolling Three - Year Performance

 


INTECH’s business is diversifying Total AUM Breakdown – By Domicile INTECH’s focus on new capabilities has led to further globalization and diversification of its business 41% of INTECH’s AUM is now domiciled outside the U.S. Non-U.S. AUM has grown at a compound annual growth rate of 26%, from the end of 2010 through 1Q 2016, and flows have been positive for 5 consecutive years Performance in INTECH’s managed volatility strategies is strong, with volatility reduction consistent with expectations, and this performance is beginning to translate into net flows Going forward, INTECH is focusing on further diversifying its global business across client type, geography and products by providing institutional investors with customizable risk/return objectives Notes: Total AUM for the 5 strategies shown is $28.5 billion or 58% of INTECH’s total AUM, as of March 31, 2016. References relative performance on a total return basis as of March 31, 2016, as shown on p. 26 and 27. Refer to p. 28 for INTECH mutual fund analysis and disclosure. Annualized Return vs. Benchmark – 5 Largest Strategies (1) (%, net of fees) for Periods Ended March 31, 2016 (2) 12/31/2013 3/31/2016 Assets: $47.6 Billion Assets: $48.8 Billion 59% 41% 73% 27% 22% 78% Non-U.S. U.S. 1 Year 3 Year 5 Year U.S. Enhanced Plus (1.34) 0.67 0.47 Global Large Cap Core ex Japan (Kokusai) 0.44 0.75 1.07 Global Large Cap Core 0.87 0.91 1.31 U.S. Large Cap Growth (0.08) (1.86) (1.83) U.S. Enhanced Index (0.68) (0.83) (0.40) Morningstar Percentile Rankings (2) Managed Volatility Funds 1-Year 3-Year 5-Year 10-Year INTECH US Mgd Volatility 8 7 5 30 INTECH Intl Mgd Volatility 4 4 8 N/A INTECH Global Income Mgd Vol 1 7 N/A N/A Janus Aspen INTECH US Low Volatil Svc 1 2 N/A N/A INTECH Emrg Mkts Mgd Vol 44 N/A N/A N/A

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We believe we are well positioned to continue to grow our market share in multiple categories Today we are seeing the investments we have made in this business translating into market share gains, and we remain committed to growing the business throughout 2016 As of March 31, 2016, we had 49 external wholesalers and 50 internal wholesalers, compared to 40 external wholesalers and 26 internal wholesalers, as of March 31, 2014 In 2015, we had the 7th highest growth in Advisor sales for firms with more than $5 billion in annual sales(2) We are being utilized on all 25 of the top-25 DC provider record keepers(3) We are encouraged by future growth opportunities in recently launched Asset Allocation and ETF products, as well as INTECH’s suite of managed volatility strategies Notes: Industry data per Strategic Insight. Comparable industry fixed income flows reflect U.S.-domiciled, actively-managed, taxable bond mutual fund flows. Comparable equity flows reflect U.S.-domiciled, actively-managed, equity mutual fund flows. Actively-managed flows exclude indexed (passive) flows. Janus data reflects mutual fund flows into JIF and JAS trusts. Janus-managed equity excludes Perkins and INTECH. Source: 2015 Market Metrics Report. Top 25 DC platforms is measured by assets as of May 31, 2015. U.S. Intermediary channel update Janus Fixed Income vs. Industry Janus-Managed Equity vs. Industry Industry Janus - 1.6% - 1.0% - 3.6% - 3.1% Last Twelve Months Organic Growth Rates vs. Industry (1)

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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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1Q 2016 asset diversification 3/31/16 Assets of $191.3 Billion(1) By Investment Discipline ($ in Billions) Note: Percentages and numbers may not foot due to rounding. By Distribution Channel ($ in Billions) By Domicile ($ in Billions) $64.3 48.8 45.2 20.1 8.3 3.3 1.3 $70.3 67.7 53.4 $146.6 44.7 34% 25% 24% 10% 4% 2% 1% Growth / Blend Mathematical Fixed Income Global / International Value ETPs Money Market 37% 35% 28% Intermediary Institutional Self-Directed 77% 23% U.S. Non-U.S.

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1Q 2016 EPS of $0.19 compared to $0.25 in 4Q 2015 March 31, December 31, Variance March 31, March 31, Variance ($ in millions, except AUM and per share) 2016 2015 (%) 2016 2015 (%) Average AUM ($ in billions) 180.2 $ 191.2 $ -5.8% 180.2 $ 186.0 $ -3.1% Revenues 248.5 $ 267.8 $ -7.2% 248.5 $ 262.7 $ -5.4% Operating expenses 185.9 187.0 -0.6% 185.9 186.7 -0.4% Operating income 62.6 $ 80.8 $ -22.5% 62.6 $ 76.0 $ -17.6% Operating margin 25.2% 30.2% 25.2% 28.9% Interest expense (5.2) $ (5.2) $ 0.0% (5.2) $ (7.3) $ 28.8% Investment gains (losses), net 1.7 (2.3) n/m 1.7 4.4 -61.4% Other income (expense), net 1.8 4.3 -58.1% 1.8 (0.1) n/m Income tax provision (23.9) (29.3) 18.4% (23.9) (26.8) 10.8% Net income 37.0 $ 48.3 $ -23.4% 37.0 $ 46.2 $ -19.9% Noncontrolling interests (1.9) (1.7) -11.8% (1.9) (1.6) -18.8% Net income attributable to JCG 35.1 $ 46.6 $ -24.7% 35.1 $ 44.6 $ -21.3% Allocation of earnings to restricted stock 1.3 1.6 -18.8% 1.3 1.6 -18.8% Net income attributable to JCG common shareholders 33.8 $ 45.0 $ -24.9% 33.8 $ 43.0 $ -21.4% Diluted earnings per share attributable to JCG common shareholders 0.19 $ 0.25 $ -24.0% 0.19 $ 0.23 $ -17.4% Diluted weighted average shares outstanding (in millions) 181.3 183.6 -1.3% 181.3 188.2 -3.7% Quarter Ended Quarter Ended

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1Q 2016 operating margin of 25.2% versus 30.2% in 4Q 2015 March 31, December 31, Variance March 31, March 31, Variance ($ in millions, except AUM) 2016 2015 (%) 2016 2015 (%) Average AUM ($ in billions) 180.2 $ 191.2 $ -5.8% 180.2 $ 186.0 $ -3.1% Revenues Investment management fees 210.3 $ 226.4 $ 210.3 $ 222.6 $ Performance fees - mutual funds (9.9) (9.6) (9.9) (8.7) Performance fees - private accounts 7.5 7.7 7.5 6.4 Shareowner servicing fees and other 40.6 43.3 40.6 42.4 Total revenues 248.5 $ 267.8 $ -7.2% 248.5 $ 262.7 $ -5.4% Basis points Investment management fees 46.9 47.0 46.9 48.5 Investment management fees and performance fees 46.4 46.6 46.4 48.0 Operating expenses Employee compensation and benefits 87.9 $ 84.0 $ 87.9 $ 91.4 $ Long-term incentive compensation 19.5 19.3 19.5 20.2 Marketing and advertising 5.3 5.9 5.3 5.7 Distribution 32.4 35.3 32.4 34.2 Depreciation and amortization 9.1 9.0 9.1 7.4 General, administrative and occupancy 31.7 33.5 31.7 27.8 Total operating expenses 185.9 $ 187.0 $ -0.6% 185.9 $ 186.7 $ -0.4% Operating income 62.6 $ 80.8 $ -22.5% 62.6 $ 76.0 $ -17.6% Operating margin 25.2% 30.2% 25.2% 28.9% Quarter Ended Quarter Ended

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Mutual funds with performance-based advisory fees Please refer to footnotes on p. 21. Mutual Funds with Performance Fees (1) (AUM $ in millions, performance fees $ in thousands) EOP AUM 3/31/2016 Benchmark Base Fee Performance Fee (2) Performance Hurdle vs. Benchmark 1Q 2016 P&L Impact Janus Contrarian Fund (3) $2,970.5 S&P 500 ® Index 0.64% ± 15 bps ± 7.00% ($1,377.9) Janus Research Fund (3) 4,495.3 Russell 1000 ® Growth Index 0.64% ± 15 bps ± 5.00% (265.8) Janus Global Research Fund (3,4) 3,132.5 MSCI World Index SM 0.60% ± 15 bps ± 6.00% (608.1) Janus Global Real Estate Fund (5) 251.9 FTSE EPRA / NAREITGlobal Index 0.75% ± 15 bps ± 4.00% (25.4) Janus International Equity Fund (6) 213.2 MSCI EAFE ® Index 0.68% ± 15 bps ± 7.00% (57.1) INTECH U.S. Core Fund (7) 608.9 S&P 500 ® Index 0.50% ± 15 bps ± 4.00% 106.8 Perkins Mid Cap Value Fund (3) 4,163.5 Russell Midcap ® Value Index 0.64% ± 15 bps ± 4.00% (3,136.7) Perkins Small Cap Value Fund (8) 1,396.9 Russell 2000 ® Value Index 0.72% ± 15 bps ± 5.50% 747.8 Perkins Large Cap Value Fund (8) 157.3 Russell 1000 ® Value Index 0.64% ± 15 bps ± 3.50% (56.4) Janus Fund (9) 8,147.4 Core Growth Index 0.64% ± 15 bps ± 4.50% (1,741.5) Perkins Global Value Fund (9,10) 226.3 MSCI World Index SM 0.64% ± 15 bps ± 7.00% (47.8) Janus Aspen Overseas Portfolio (11) 726.7 MSCI All Country World ex-U.S. Index SM 0.64% ± 15 bps ± 7.00% (457.0) Janus Overseas Fund (12) 1,729.1 MSCI All Country World ex-U.S. Index SM 0.64% ± 15 bps ± 7.00% (1,407.0) Janus Twenty Fund (13) 8,784.8 Russell 1000 ® Growth Index 0.64% ± 15 bps ± 8.50% (1,488.0) Janus Forty Fund (13) 2,934.0 Russell 1000 ® Growth Index 0.64% ± 15 bps ± 8.50% (51.8) Janus Emerging Markets Fund (14) 54.5 MSCI Emerging Markets Index SM 1.00% ± 15 bps ± 6.00% 10.7 Janus Asia Equity (15) 8.7 MSCI All Country Asia ex-Japan Index SM 0.92% ± 15 bps ± 7.00% (0.9) Perkins Select Value (16) 77.2 Russell 3000 ® Value Index 0.70% ± 15 bps ± 5.00% (29.6) Total Existing Funds with Fees $40,078.8 ($9,885.6)

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Mutual funds with performance-based advisory fees (cont.) Notes: (1) 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. (2) Adjustment of ± 15 bps assumes constant assets and could be higher or lower depending on asset fluctuations. (3) The performance measurement period began on 2/1/2006, and the performance adjustment was implemented as of 2/1/2007. (4) 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 waived its management fee to at least a level that was 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. (5) 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. (6) The performance measurement period began on 12/1/2006, and the performance adjustment was implemented as of 12/1/2007. (7) 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. (8) The performance measurement period began on 1/1/2009, and the performance adjustment was implemented as of 1/1/2010. (9) The performance measurement period began on 7/1/2010, and the performance adjustment was implemented as of 6/30/2011. (10) Effective 7/1/10, Janus Global Opportunities Fund was renamed Perkins Global Value Fund. (11) The performance measurement period began on 7/1/2010, and the performance adjustment was implemented as of 9/30/2011. (12) The performance measurement period began on 8/1/2010, and the performance adjustment was implemented as of 10/31/2011. (13) The performance measurement period began on 7/1/2010, and the performance adjustment was implemented as of 12/31/2011. (14) The performance measurement period began on 12/31/2010, and the performance adjustment was implemented as of 12/31/2011. (15) The performance measurement period began on 7/29/2011, and the performance adjustment was implemented as of 7/31/2012. (16) 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 March 31, 2016. Refer to p. 29 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 49% 38% 43% 36% 39% 18% 24% 28% 34% 30% 67% 62% 70% 70% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 37% 32% 42% 37% 39% 24% 32% 30% 33% 31% 61% 64% 72% 69% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 33% 26% 33% 36% 33% 28% 26% 30% 31% 36% 60% 51% 63% 67% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 60% 56% 53% 40% 40% 3% 2% 17% 44% 21% 63% 58% 70% 84% 61% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 47% 41% 61% 41% 47% 22% 35% 18% 34% 39% 69% 75% 79% 74% 86% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 27% 23% 35% 48% 42% 28% 32% 27% 17% 41% 55% 55% 63% 65% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16

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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 March 31, 2016. Refer to p. 29 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 55% 45% 41% 28% 33% 19% 21% 27% 38% 33% 74% 67% 68% 67% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 38% 35% 38% 37% 34% 23% 25% 26% 24% 26% 60% 60% 64% 61% 61% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 25% 22% 21% 26% 26% 28% 22% 33% 35% 38% 53% 44% 55% 62% 65% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 70% 67% 63% 44% 43% 2% 1% 6% 40% 24% 73% 68% 69% 84% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 54% 48% 58% 46% 54% 15% 23% 17% 24% 29% 68% 71% 75% 70% 84% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16 30% 27% 27% 44% 47% 21% 24% 29% 18% 35% 50% 50% 56% 62% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3/31/15 6/30/15 9/30/15 12/31/15 3/31/16

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Complex-wide mutual fund rankings (1) * Closed to new investors. Note: ‡ In accordance with FINRA regulations, rankings cannot be publicly disclosed for time periods of less than one year. Refer to p. 29 for additional Morningstar disclosure. Morningstar Quartile: 1st 2nd 3rd 4th 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 29 279/963 20 181/926 16 129/828 3 17/668 4 21/640 Janus Aspen Enterprise Instl Oct-07 Mid-Cap Growth 5 35/736 2 12/697 5 34/672 4 22/616 9 53/629 Janus Aspen Forty Instl Jun-13 Large Growth 19 329/1727 13 206/1678 10 153/1535 8 100/1330 14 235/1684 Janus Aspen Global Allocation Mod Instl Aug-11 World Allocation 39 227/575 30 154/509 / / 17 76/441 Janus Aspen Global Research Instl Mar-11 World Stock 91 1147/1258 36 386/1088 53 473/884 56 344/616 59 521/884 Janus Aspen Global Technology Instl May-11 Technology 46 96/206 53 110/206 35 73/205 30 60/197 34 71/205 Janus Aspen Janus Instl May-11 Large Growth 57 987/1727 30 503/1678 38 581/1535 46 617/1330 41 640/1545 Janus Aspen Overseas Instl Dec-15 Foreign Large Blend 99 815/820 98 771/781 98 708/721 70 372/533 ‡ Janus Asia Equity I Jul-11 Pacific/Asia ex-Japan Stk 49 47/94 48 39/81 / 51 40/77 Janus Balanced T Apr-05 Moderate Allocation 34 322/963 24 223/926 22 183/828 6 35/668 5 31/640 Janus Contrarian T Jun-11 Mid-Cap Blend 95 422/441 72 301/417 73 275/376 83 258/309 60 226/377 Janus Diversified Alternatives I Dec-12 Multialternative 18 85/475 60 165/274 / 73 190/260 Janus Emerging Markets I Aug-12 Diversified Emerging Mkts 32 279/880 16 105/661 59 293/496 13 76/618 Janus Enterprise T Oct-07 Mid-Cap Growth 7 52/736 8 54/697 8 50/672 6 36/616 12 72/629 Janus Forty S Jun-13 Large Growth 24 412/1727 14 230/1678 16 235/1535 15 201/1330 17 281/1684 Janus Global Allocation Cnsrv T Aug-14 World Allocation 30 172/575 38 191/509 26 111/425 10 30/306 22 121/556 Janus Global Allocation Growth T Aug-14 World Allocation 56 322/575 18 93/509 27 116/425 24 74/306 49 273/556 Janus Global Allocation Moderate T Aug-14 World Allocation 40 229/575 27 139/509 28 118/425 13 38/306 34 189/556 Janus Global Life Sciences T Apr-07 Health 67 87/130 4 6/130 11 14/124 29 35/118 23 27/118 Janus Global Real Estate I Nov-07 Global Real Estate 81 208/257 53 116/218 66 131/198 5 8/162 Janus Global Research T Feb-05 World Stock 91 1149/1258 46 504/1088 51 452/884 10 62/616 4 21/554 Janus Global Select T Aug-12 World Stock 96 1210/1258 67 734/1088 97 859/884 69 424/616 46 480/1037 Janus Global Technology T May-11 Technology 49 101/206 58 120/206 39 81/205 33 65/197 38 78/205 Janus Growth & Income T Nov-07 Large Blend 14 219/1625 35 524/1519 43 610/1404 77 945/1228 61 787/1285 Janus International Equity I Jun-10 Foreign Large Growth 96 361/375 79 284/357 78 261/334 / 85 282/329 Janus Overseas T Dec-15 Foreign Large Blend 98 809/820 99 776/781 99 715/721 92 491/533 ‡ Janus Research T Jan-06 Large Growth 53 917/1727 18 298/1678 27 413/1535 11 137/1330 11 140/1319 Janus T May-11 Large Growth 58 1004/1727 35 586/1678 49 747/1535 60 802/1330 52 803/1545 Janus Triton T* May-13 Small Growth 13 96/754 3 20/713 5 29/694 1 6/603 4 26/715 Janus Twenty T* May-13 Large Growth 6 105/1727 31 516/1678 39 590/1535 12 156/1330 46 772/1684 Janus Venture T* May-13 Small Growth 30 229/754 6 43/713 5 34/694 5 28/603 10 71/715 Morningstar Rankings Based on Total Returns as of 03/31/2016 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 * Closed to new investors. Note: In accordance with FINRA regulations, rankings cannot be publicly disclosed for time periods of less than one year. Refer to p. 29 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 63 688/1085 34 350/1039 18 178/992 3 26/866 3 25/892 Janus Aspen Global Unconstnd Bd Instl Jan-15 Nontraditional Bond 44 222/499 / / / 54 270/496 Janus Flexible Bond T May-07 Intermediate-Term Bond 65 711/1085 41 421/1039 29 286/992 7 62/866 6 52/892 Janus Global Bond I May-11 World Bond 71 266/372 23 80/348 25 71/286 26 76/288 Janus Global Unconstrained Bond I Oct-14 Nontraditional Bond 17 84/499 / / / 23 100/444 Janus High-Yield T Jun-08 High Yield Bond 23 177/792 29 207/723 33 208/625 24 124/529 17 93/566 Janus Multi-Sector Income I Feb-14 Multisector Bond 24 77/325 / / / 11 31/283 Janus Real Return I Oct-12 Multisector Bond 7 23/325 17 43/258 39 98/248 Janus Short-Term Bond T May-07 Short-Term Bond 54 312/576 50 265/530 53 259/483 34 142/420 32 142/451 INTECH Janus Aspen INTECH US Low Volatil Svc Sep-12 Large Blend 1 1/1625 2 25/1519 / / 2 30/1488 INTECH Emrg Mkts Mgd Vol I Dec-14 Diversified Emerging Mkts 44 390/880 / / / 29 250/869 INTECH Global Income Mgd Vol I Dec-11 World Stock 1 1/1258 7 72/1088 / 19 173/940 INTECH Intl Mgd Volatility I May-07 Foreign Large Blend 4 29/820 4 32/781 8 59/721 23 131/578 INTECH U.S. Core T* Feb-03 Large Growth 26 450/1727 34 560/1678 13 200/1535 46 615/1330 24 274/1170 INTECH US Mgd Volatility I Dec-05 Large Blend 8 118/1625 7 108/1519 5 69/1404 30 372/1228 27 325/1221 Perkins Janus Aspen Perkins Mid Cap Value Svc Dec-02 Mid-Cap Value 16 75/478 72 323/445 84 339/402 40 136/337 49 135/274 Perkins Global Value T Apr-05 World Stock 30 376/1258 67 726/1088 33 289/884 40 248/616 65 372/567 Perkins International Value I Apr-13 Foreign Large Value 8 31/380 / / 27 94/347 Perkins Large Cap Value I Dec-08 Large Value 31 449/1444 62 825/1335 64 786/1226 64 769/1193 Perkins Mid Cap Value T* Aug-98 Mid-Cap Value 18 85/478 72 322/445 83 334/402 42 142/337 6 9/141 Perkins Select Value I Dec-11 Mid-Cap Value 7 31/478 64 284/445 88 376/426 Perkins Small Cap Value T Feb-97 Small Value 11 49/467 19 82/436 50 197/394 8 25/332 N/A N/A Perkins Value Plus Income I Jul-10 Moderate Allocation 50 484/963 64 590/926 38 317/828 44 350/804 Morningstar Rankings Based on Total Returns as of 03/31/2016 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. 28 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 0.72 12.81 12.38 7.55 10.70 U.S. Enhanced Plus Net 0.44 12.50 12.05 7.22 10.30 S&P 500 ® Index 1.78 11.82 11.58 7.01 9.32 Difference versus S&P 500 ® Index Net of Fees (1.34) 0.67 0.47 0.22 0.99 U.S. Large Cap Growth Gross 7/93 3.95 12.63 11.75 7.57 12.39 U.S. Large Cap Growth Net 3.44 12.10 11.22 7.07 11.83 S&P 500 ® Growth Index 3.53 13.96 13.06 8.48 9.33 Difference versus S&P 500 ® Growth Index Net of Fees (0.08) (1.86) (1.83) (1.41) 2.50 U.S. Enhanced Index Gross 4/98 1.40 11.33 11.52 7.20 6.39 U.S. Enhanced Index Net 1.10 11.00 11.18 6.86 6.04 S&P 500 ® Index 1.78 11.82 11.58 7.01 5.49 Difference versus S&P 500 ® Index Net of Fees (0.68) (0.83) (0.40) (0.15) 0.55 U.S. Broad Large Cap Growth Gross 11/00 1.57 14.46 12.79 7.80 5.04 U.S. Broad Large Cap Growth Net 1.08 13.90 12.23 7.26 4.50 Russell 1000 ® Growth Index 2.52 13.61 12.38 8.28 2.98 Difference versus Russell 1000 ® Growth Index Net of Fees (1.44) 0.29 (0.15) (1.02) 1.52 U.S. Broad Enhanced Plus Gross 4/01 (0.19) 11.99 11.92 7.30 7.47 U.S. Broad Enhanced Plus Net (0.48) 11.65 11.57 6.98 7.13 Russell 1000 ® Index 0.50 11.52 11.35 7.06 6.28 Difference versus Russell 1000 ® Index Net of Fees (0.99) 0.13 0.22 (0.08) 0.85 U.S. Large Cap Core Gross 8/01 1.50 13.20 12.52 7.31 7.56 U.S. Large Cap Core Net 0.99 12.65 11.98 6.81 7.06 S&P 500 ® Index 1.78 11.82 11.58 7.01 5.79 Difference versus S&P 500 ® Index Net of Fees (0.79) 0.82 0.40 (0.20) 1.27 U.S. Broad Large Cap Value Gross 8/04 (1.37) 8.96 10.81 6.48 8.14 U.S. Broad Large Cap Value Net (1.74) 8.56 10.40 6.08 7.73 Russell 1000 ® Value Index (1.54) 9.38 10.25 5.72 7.19 Difference versus Russell 1000 ® Value Index Net of Fees (0.20) (0.82) 0.16 0.36 0.54 Global Large Cap Core Gross 1/05 (1.59) 8.81 8.92 6.30 7.58 Global Large Cap Core Net (2.03) 8.33 8.43 5.77 7.04 MSCI World ® Index (2.90) 7.41 7.12 4.86 5.81 Difference versus MSCI World ® Index Net of Fees 0.87 0.91 1.31 0.91 1.23 International Large Cap Core Gross 11/06 (3.19) 5.45 5.36 - 4.10 International Large Cap Core Net (3.59) 5.01 4.92 - 3.66 MSCI EAFE ® Index (7.87) 2.68 2.76 - 1.47 Difference versus MSCI EAFE ® Index Net of Fees 4.27 2.34 2.16 - 2.19 U.S. Broad Enhanced Index Gross 10/08 (0.82) 10.72 11.11 - 10.10 U.S. Broad Enhanced Index Net (1.03) 10.48 10.86 - 9.83 Russell 1000 ® Index 0.50 11.52 11.35 - 10.41 Difference versus Russell 1000 ® Index Net of Fees (1.54) (1.04) (0.49) - (0.59) Annualized Returns (%) for Periods Ended 3/31/2016 (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. 28 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 (1.67) 8.96 8.99 - 13.81 Global Large Cap Core ex Japan (Kokusai) Net (2.08) 8.48 8.46 - 13.24 MSCI KOKUSAI ® World ex Japan Index (2.52) 7.73 7.40 - 12.76 Difference versus MSCI KOKUSAI ® World ex Japan Index Net of Fees 0.44 0.75 1.07 - 0.49 European Large Cap Core Gross (EUR) 1/10 (8.14) 11.55 11.10 - 12.32 European Large Cap Core Net (EUR) (8.60) 10.97 10.51 - 11.72 MSCI Europe ® Index (EUR) (13.25) 7.47 7.27 - 7.80 Difference versus MSCI Europe ® Index (EUR) Net of Fees 4.65 3.50 3.23 - 3.92 Global All Country Enhanced Index Gross 11/11 (2.85) 6.47 - - 9.28 Global All Country Enhanced Index Net (3.19) 6.10 - - 8.90 MSCI All Country World ® Index (3.81) 6.10 - - 8.63 Difference versus MSCI All Country World ® Index Net of Fees 0.62 (0.00) - - 0.27 Enhanced Index North America Gross 7/12 (0.19) 9.97 - - 12.77 Enhanced Index North America Net (0.46) 9.67 - - 12.45 MSCI North America ® Index 0.29 10.58 - - 13.04 Difference versus MSCI North America ® Index Net of Fees (0.74) (0.91) - - (0.58) Large Cap Core USA Gross 8/12 (0.17) 11.33 - - 13.97 Large Cap Core USA Net (0.64) 10.85 - - 13.49 MSCI USA ® Index 0.90 11.59 - - 13.87 Difference versus MSCI USA ® Index Net of Fees (1.53) (0.74) - - (0.39) Global All Country Core Gross 5/13 (2.87) - - - 5.93 Global All Country Core Net (3.39) - - - 5.35 MSCI All Country World ® Index (3.81) - - - 5.23 Difference versus MSCI All Country World ® Index Net of Fees 0.42 - - - 0.11 Emerging Markets Core Gross 6/13 (11.33) - - - (3.82) Emerging Markets Core Net (12.03) - - - (4.59) MSCI Emerging Markets® Index (11.70) - - - (3.80) Difference versus MSCI Emerging Markets ® Index Net of Fees (0.33) - - - (0.79) Global All Country Core Select Gross 6/13 (1.94) - - - 6.94 Global All Country Core Select Net (2.59) - - - 6.23 MSCI All Country World ® Index (3.81) - - - 5.46 Difference versus MSCI All Country World ® Index Net of Fees 1.22 - - - 0.76 Global All Country Core ex U.S. Gross 7/14 (5.93) - - - (6.61) Global All Country Core ex U.S. Net (6.50) - - - (7.16) MSCI All Country World ® ex USA Index (8.78) - - - (8.15) Difference versus MSCI All Country World ® ex USA Index Net of Fees 2.29 - - - 0.99 Annualized Returns (%) for Periods Ended 3/31/2016 (2)

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Mathematical equity performance disclosure For the period ending March 31, 2016, 83%, 100%, 100% and 83% 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 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), Janus Aspen INTECH U.S. Low Volatility Portfolio – Service Shares (9/12) 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”). “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 March 31, 2016, 69%, 69%, 69% and 80% of the 54, 49, 42 and 35 Complex-Wide mutual funds; 67%, 61%, 65% and 76% of the 39, 38, 34 and 29 Fundamental Equity mutual funds; 56%, 100%, 80% and 100% of the 9, 6, 5 and 4 Fixed Income mutual funds outperformed the majority of their Morningstar peers based on total returns. On an asset-weighted basis, 80% of the Complex-Wide mutual fund assets, 76% 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 March 31, 2016, 59%, 55% and 63% 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 49, 42 and 35 funds, respectively. 49 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 USA 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. 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-0416-1044 07-15-16

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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, 2015, 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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