Janus Capital Group Inc. Announces Second Quarter 2009 Results, Interim CEO And Capital Raise
Second Quarter Earnings from Continuing Operations of $0.10 Per Diluted Share
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Long-Term Net Flows of $2.3 Billion for the Quarter
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65%, 84% And 85% of Firmwide Mutual Funds Outperformed Their Lipper Peer Group Medians for 1-, 3- and 5-Years1
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Gary Black Steps Down as CEO; Tim Armour Named Interim CEO
DENVER--(BUSINESS WIRE)-- Janus Capital Group Inc. ("JCG") (NYSE: JNS) today announced strong second quarter earnings, the appointment of Tim Armour as interim chief executive officer, and the intent to raise capital through a public offering of common stock and convertible debt. A separate press release was issued today providing details about the proposed capital raise.
Second Quarter 2009 Earnings Results
JCG today reported second quarter net income from continuing operations of $15.8 million, or $0.10 per diluted share, compared with a net loss from continuing operations of $818.1 million, or $5.22 per diluted share in the first quarter 2009 and net income from continuing operations of $65.6 million, or $0.40 per diluted share, in the second quarter 2008. First quarter 2009 included a goodwill and intangible asset impairment charge of $856.7 million, or $5.21 per diluted share, a litigation charge of $7.5 million, or $0.03 per diluted share, and a non-operating impairment charge on unconsolidated seed capital investments of $0.03 per diluted share. The company's operating margin for the second quarter 2009 was 23.5% compared with 34.5% for the second quarter 2008.
Appointment of Tim Armour as Interim CEO, Replacing Gary Black
The JCG Board of Directors also announced today that Gary Black has resigned as chief executive officer, effective July 13, 2009. Tim Armour, a Janus Capital Group Director, has been named chief executive officer on an interim basis.
"After much consideration, Gary and the Board have come to the mutual decision that the time is right to bring new leadership to Janus," said Steve Scheid, chairman of the Janus Capital Group Board of Directors. "During Gary's tenure Janus made significant progress on its goals, including strengthening the firm's investment performance and risk-management, revitalizing the Janus brand, generating positive net flows, and building out the firm's product and global distribution platforms. We thank him for his dedication in helping build Janus into a world-class investment organization and wish him well in his future endeavors."
"The firm is in a much stronger place than when I joined, and the time is right for a change," said Black. "Long-term performance is strong, flows have rebounded, we have a broad diversified product platform, and we've built a global distribution footprint across both the intermediary and institutional channels that is gaining market share. I'm proud of the progress Janus has made during the last five years and I am confident that the firm is well positioned to build on that success going forward."
The firm will take a $12.1 million charge, including approximately $6.8 million of cash and $5.3 million of non-cash consideration for the acceleration of Mr. Black's unvested stock, options and mutual fund share awards. The charge will be reflected in the company's third quarter results.
Armour, 60, has more than 20 years of investment industry experience, including 10 years as a senior executive at Morningstar and five years as president of Stein Roe Farnham's mutual fund division. Armour joined the Janus Capital Group Board in March 2008 and served on the Board's strategic planning committee, working closely with Janus' executive leadership on the firm's strategy. Tim will assume day-to-day management of the company and assist the Board with the recruitment of a permanent successor.
"We're bullish about the future of Janus," said CEO Tim Armour. "Despite the challenging economic environment, the fundamentals of our business are strong thanks to strong long-term investment performance, expanded distribution and positive flows. These important achievements position the firm very competitively as we move forward and the market improves."
"Tim's industry experience, combined with his role on the strategic planning committee, will help make this transition seamless," said Scheid. "Importantly, Tim has worked closely with Janus' leadership team, including Janus' co-chief investment officers. We don't anticipate any changes to the investment process or the structure of the investment team, which is serving our shareholders and clients extraordinarily well."
The Janus investment team will continue to report to co-chief investment officers, Jonathan Coleman and Gibson Smith, who have managed Janus' investment team since early 2006 and have been at Janus for 15 and eight years, respectively. INTECH and Perkins Investment Management will continue to be managed independently under their existing leadership structures.
Capital Raise and Tender Offer
JCG also announced today that it intends to concurrently offer $150 million in common shares and $150 million of convertible senior notes due 2014 and that it is offering to repurchase approximately $400 million of the principal amount of outstanding debt in a tender offer.
Flows and Assets Under Management
Average assets under management during the second quarter increased 12.0% to $126.7 billion compared with $113.1 billion during the first quarter 2009. At June 30, 2009, the company's total assets under management were $132.6 billion compared with $110.9 billion at March 31, 2009, and $191.8 billion at June 30, 2008. The increase in firmwide assets during the second quarter reflects $20.0 billion of net market appreciation and long-term net inflows of $2.3 billion.
Investment Performance
Relative long-term investment performance remained strong with approximately 65%, 84% and 85% of firmwide mutual funds in the top half of their Lipper categories on a one-, three- and five-year total-return basis, respectively, as of June 30, 2009.2 In addition, 64% of firmwide mutual funds have a 4- or 5-star Overall Morningstar RatingTM at June 30, 2009.3
Janus-managed equity mutual funds continue to outperform the majority of peers with 61%, 88% and 82% of equity mutual funds ranking in the top half of their Lipper categories on a one-, three- and five-year total return basis, respectively, as of June 30, 2009.2
INTECH's near-term relative investment performance was weak, while longer-term performance remained strong with 33%, 56%, 86% of strategies outperforming their respective benchmarks over the one-, three- and five-year periods, as of June 30, 2009.
Perkins continues to deliver exceptional investment performance with the Mid Cap Value Fund ranked in the top 16% and Small Cap Value Fund ranked in the top 10% of their respective Lipper categories across the one-, three- and five-year periods on a total-return basis as of June 30, 2009.4
Financial Highlights
(dollars in millions, except per share data or as noted)
Three Months Ended
June 30, March 31, June 30,
2009 2009 2008
Continuing Operations (Investment Management)
Average Assets (in billions) $ 126.7 $ 113.1 $ 200.1
Ending AUM (in billions) $ 132.6 $ 110.9 $ 191.8
Revenues $ 200.2 $ 170.3 $ 304.2
Operating Expenses * $ 153.2 $ 1,000.1 $ 199.1
Operating Income (Loss) * $ 47.0 $ (829.8 ) $ 105.1
Operating Margin * 23.5 % -487.3 % 34.5 %
Net Income (Loss) * $ 15.8 $ (818.1 ) $ 65.6
Diluted Earnings (Loss) per Share * $ 0.10 $ (5.22 ) $ 0.40
* First quarter 2009 results include goodwill and intangible asset impairment
charges totaling $856.7 million, or $5.21 loss per diluted share. The intangible
asset impairment charge has an associated non-cash tax benefit of $40.6 million.
Second quarter 2009 revenues of $200.2 million increased 17.6% from first quarter 2009 from higher average assets under management, driven primarily by improving global markets and mutual fund performance fees. Quarter-over-quarter operating expenses, excluding the first quarter 2009 goodwill and intangible asset impairment and litigation charges, increased in the second quarter as a result of higher revenue-based expenses and costs associated with the previously announced July 2009 merger of two of JCG's domestic mutual fund trusts.
Capital and Liquidity
At June 30, 2009, JCG had stockholders' equity of $718 million, cash and investments of $331 million and $1.1 billion of outstanding debt.
Second Quarter 2009 Earnings Call Information
JCG will discuss its results during a conference call on Tuesday, July 14 at 5:30 p.m. Eastern Daylight Time. The call-in number will be 877-301-7574. Anyone outside the U.S. or Canada should call 706-643-3623. The slides used during the presentation will be available in the investor relations section of the Janus Capital Group Web site (www.janus.com/ir) approximately one hour prior to the call. For those unable to join the conference call at the scheduled time, an audio replay will be available on www.janus.com/ir.
About Janus Capital Group Inc.
Janus Capital Group Inc. (JCG) is a global investment firm offering strategies from three individual investment boutiques: Janus Capital Management LLC (Janus), INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins). Each manager employs a research-intensive approach that is distinct within its respective asset class. This multi-boutique approach enables the firm to provide style-specific expertise across an array of strategies, including growth, value and risk-managed equities, fixed income and alternatives through one common distribution platform.
At the end of June 2009, JCG managed $132.6 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in London, Tokyo, Hong Kong and Singapore.
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call JCG at
(800) 525-3713 or download the file from www.janus.com. Read it carefully before you invest or send money.
This presentation should not be considered sales material and is not an offer or a solicitation for any securities. Performance information in this material is based on assets that existed prior to the previously announced July 6, 2009 JCG domestic mutual fund trust merger.
Data presented reflects past performance, which is no guarantee of future results. Rankings referenced exclude money markets.
Funds distributed by Janus Distributors LLC (6/09).
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 associated with the appointment of an interim CEO and our ability to identify a permanent CEO and resulting potential disruptions to the Company and our business, risks associated with our proposed capital raising transaction and related debt tender offer, including whether such offers and tender offers will be successful and on what terms they may be completed, and other risks, uncertainties, assumptions and factors specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 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 federal securities laws, 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 unless required by law.
1 Strong relative performance is not indicative of positive fund returns. Year-to-date absolute performance for some funds is negative. Funds included in the analysis are Janus Retail (JIF), Janus Adviser Series Class S Shares (JAD) and Janus Aspen Series Institutional Shares (JAS). The number of funds in each trust is 26, 24 and 12, respectively. Complete Lipper rankings are based on total returns and are on pages 12 and 13.
2 Strong relative performance is not indicative of positive fund returns. Year-to-date absolute performance for some funds is negative. Funds included in the analysis are JIF, JAD and JAS. The number of funds in each trust is 26, 24 and 12, respectively. Complete Lipper rankings are based on total returns and are on pages 12 and 13.
3 Funds included in the Morningstar analysis were JIF, JAD and JAS with at least a three-year history. Morningstar rankings are based on risk-adjusted returns. Complete Morningstar ratings are on pages 14-16.
4 Rankings are for the "JIF" investor share class only; other classes may have different performance characteristics. See pages 11 and 12 for complete Lipper rankings. Janus Mid Cap Value Fund and Janus Small Cap Value Fund changed names and are now Perkins Mid Cap Value Fund and Perkins Small Cap Value Fund, respectively.
JANUS CAPITAL GROUP INC.
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data or as noted)
Three Months Ended
June 30, March 31, June 30,
2009 2009 2008
Revenues:
Investment management fees $ 159.8 $ 136.8 $ 239.8
Performance fees 6.5 3.4 11.6
Shareowner servicing fees and other 33.9 30.1 52.8
Total 200.2 170.3 304.2
Operating Expenses:
Employee compensation and benefits 66.2 62.2 91.6
Long-term incentive compensation 14.0 13.4 12.5
Marketing and advertising 8.2 5.6 8.7
Distribution 25.4 20.1 38.2
Depreciation and amortization 8.0 8.9 10.7
General, administrative and occupancy 31.4 33.2 37.4
Goodwill impairment * - 856.7 -
Total 153.2 1,000.1 199.1
Operating income (loss) * 47.0 (829.8 ) 105.1
Interest expense (19.7 ) (19.9 ) (18.8 )
Investment gains (losses), net 0.3 (7.2 ) 3.0
Other income, net 0.4 - 1.0
Income tax provision * (8.8 ) 41.3 (23.8 )
Equity in earnings of unconsolidated affiliate - - 2.3
Income (loss) from Continuing Operations * 19.2 (815.6 ) 68.8
Income from Discontinued Operations - - 0.7
Net income (loss) * 19.2 (815.6 ) 69.5
Noncontrolling interest (3.4 ) (2.5 ) (3.2 )
Net income (loss) attributable to JCG * $ 15.8 $ (818.1 ) $ 66.3
Diluted weighted average shares outstanding 158.9 156.6 162.4
(in millions)
Diluted earnings (loss) per share
attributable to JCG common shareholders:
Continuing operations * $ 0.10 $ (5.22 ) $ 0.40
Discontinued operations - - 0.00
Diluted earnings per share * $ 0.10 $ (5.22 ) $ 0.41
Amounts attributable to JCG common
shareholders:
Income (loss) from Continuing Operations * $ 15.8 $ (818.1 ) $ 65.6
Income from Discontinued Operations - - 0.7
Net income * $ 15.8 $ (818.1 ) $ 66.3
Average Assets Under Management (in billions) $ 126.7 $ 113.1 $ 200.1
* First quarter 2009 results include non-cash goodwill and intangible asset
impairment charges totaling $856.7 million,
or $5.21 loss per diluted share. The intangible asset impairment charge has an
associated non-cash tax benefit of
$40.6 million.
JANUS CAPITAL GROUP INC.
PRELIMINARY AND UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
June 30, December 31,
2009 2008
Assets
Cash and cash equivalents $ 218.7 $ 282.6
Marketable securities 112.1 125.3
Other assets 260.6 236.2
Property and equipment, net 53.3 51.1
Intangibles and goodwill, net 1,780.0 2,641.5
Total Assets $ 2,424.7 $ 3,336.7
Liabilities and Stockholders' Equity
Debt $ 1,106.1 $ 1,128.0
Other liabilities 248.1 303.8
Deferred income taxes 352.4 388.1
Stockholders' equity 718.1 1,516.8
Total Liabilities and Stockholders' Equity $ 2,424.7 $ 3,336.7
UNAUDITED CONDENSED CASH FLOW INFORMATION
CONTINUING OPERATIONS
(dollars in millions)
Three Months Ended
June 30, March 31, June 30,
Cash provided by (used in): 2009 2009 2008
Operating activities $ 47.4 $ (27.4 ) $ 78.8
Investing activities (27.6 ) (17.6 ) 6.9
Financing activities (33.2 ) (5.5 ) (80.3 )
Net change during period $ (13.4 ) $ (50.5 ) $ 5.4
JANUS CAPITAL GROUP INC.
ASSETS & FLOWS BY INVESTMENT DISCIPLINE
(dollars in billions)
Three Months Ended
June 30, 2009 March 31, 2009 June 30, 2008
Growth/Blend
Beginning of period assets $ 46.6 $ 49.5 $ 76.8
Sales 3.3 2.4 8.9
Redemptions 2.6 3.4 4.7
Net sales (redemptions) 0.7 (1.0 ) 4.2
Market / fund performance 9.1 (2.0 ) 0.9
End of period assets $ 56.4 $ 46.6 $ 81.8
Global/International
Beginning of period assets $ 10.7 $ 10.9 $ 22.1
Sales 1.2 0.5 1.0
Redemptions 0.5 0.6 0.9
Net sales (redemptions) 0.7 (0.1 ) 0.1
Market / fund performance 3.3 (0.1 ) (1.2 )
End of period assets $ 14.7 $ 10.7 $ 21.0
Mathematical(1)
Beginning of period assets $ 38.3 $ 42.4 $ 61.2
Sales 1.6 0.9 2.5
Redemptions 1.8 1.4 2.3
Net sales (redemptions) (0.2 ) (0.5 ) 0.2
Market / fund performance 5.7 (3.5 ) -
End of period assets $ 43.8 $ 38.3 $ 61.3
Fixed Income
Beginning of period assets $ 3.7 $ 3.2 $ 3.8
Sales 0.9 0.8 0.2
Redemptions 0.5 0.3 0.5
Net sales (redemptions) 0.4 0.5 (0.2 )
Market / fund performance 0.3 - -
End of period assets $ 4.4 $ 3.7 $ 3.7
Alternatives
Beginning of period assets $ 0.4 $ 0.5 $ 1.4
Sales - - 0.1
Redemptions 0.1 0.1 0.2
Net sales (redemptions) (0.1 ) (0.1 ) -
Market / fund performance - (0.1 ) (0.1 )
End of period assets $ 0.3 $ 0.4 $ 1.2
Value(2)
Beginning of period assets $ 8.6 $ 9.1 $ 10.1
Sales 1.4 1.4 1.5
Redemptions 0.6 1.1 0.6
Net sales (redemptions) 0.8 0.3 0.9
Market / fund performance 1.6 (0.8 ) -
End of period assets $ 11.0 $ 8.6 $ 10.9
Money Market
Beginning of period assets $ 2.6 $ 7.9 $ 12.2
Sales 0.2 3.0 23.0
Redemptions 0.8 8.3 23.4
Net sales (redemptions) (0.6 ) (5.3 ) (0.4 )
Market / fund performance - - -
End of period assets $ 2.0 $ 2.6 $ 11.8
Total Company
Beginning of period assets $ 110.9 $ 123.5 $ 187.6
Sales 8.6 9.0 37.2
Redemptions 6.9 15.2 32.6
Net sales (redemptions) 1.7 (6.2 ) 4.6
Market / fund performance 20.0 (6.4 ) (0.4 )
End of period assets $ 132.6 $ 110.9 $ 191.8
Total Excluding Money Market
Beginning of period assets $ 108.3 $ 115.6 $ 175.4
Sales 8.4 6.0 14.2
Redemptions 6.1 6.9 9.2
Net sales (redemptions) 2.3 (0.9 ) 5.0
Market / fund performance 20.0 (6.4 ) (0.4 )
End of period assets $ 130.6 $ 108.3 $ 179.9
Each line has been rounded on the schedule individually to increase the
accuracy of the amounts presented. Therefore totals
and subtotals may not foot
Notes:
(1) Represents all assets managed by INTECH
Investment Management LLC.
(2) Represents all assets managed by
Perkins Investment Management LLC.
Janus Investment Fund ("JIF") Lipper Rankings Based on Total Returns as of 6/30/09
1-Year 3-Year 5-Year 10-Year Since PM
Inception
Rank Rank Rank Rank Rank
PM Lipper Category Percentile / Percentile / Percentile / Percentile / Percentile /
Inception Rank (%) Total Rank (%) Total Rank (%) Total Rank (%) Total Rank (%) Total
Funds Funds Funds Funds Funds
Growth Funds
Janus Twenty Fund (1) Jan-08 Large-Cap Growth Funds 81 681 / 1 1 / 1 2 / 12 36 / 26 209 /
841 717 602 313 815
Janus Fund Oct-07 Large-Cap Growth Funds 42 347 / 35 250 / 49 294 / 65 201 / 46 365 /
841 717 602 313 799
Janus Orion Fund Dec-07 Multi-Cap Growth Funds 90 409 / 20 71 / 3 9 / - - 75 324 /
458 365 306 434
Janus Research Fund Jan-06 Large-Cap Growth Funds 57 473 / 13 89 / 9 53 / 37 114 / 14 92 /
841 717 602 313 693
Janus Enterprise Fund Oct-07 Mid-Cap Growth Funds 46 238 / 16 71 / 10 37 / 77 137 / 26 128 /
522 457 376 179 496
Janus Venture Fund (1) Jan-01 Small-Cap Growth Funds 24 138 / 18 86 / 24 97 / 60 127 / 22 64 /
578 498 412 214 291
Janus Triton Fund Jun-06 Small-Cap Growth Funds 4 19 / 2 5 / - - - - 2 5 /
578 498 498
Core Funds
Janus Growth and Nov-07 Large-Cap Core Funds 40 370 / 57 458 / 25 163 / 29 107 / 38 332 /
Income Fund 936 809 673 379 890
Janus Contrarian Fund Feb-00 Multi-Cap Core Funds 88 661 / 17 102 / 3 12 / - - 16 32 /
755 610 454 203
Janus Balanced Fund Apr-05 Mixed-Asset Target 3 11 / 1 3 / 2 3 / 11 15 / 1 2 /
Alloc. Mod. Funds 524 388 295 147 342
Janus Fundamental Nov-07 Large-Cap Core Funds 70 647 / 64 516 / 18 117 / 19 71 / 63 560 /
Equity Fund 936 809 673 379 890
INTECH Risk-Managed Feb-03 Multi-Cap Core Funds 53 396 / 68 414 / 46 205 / - - 45 164 /
Stock Fund 755 610 454 366
Global/International
Funds
Janus Overseas Fund Jun-03 International Funds 8 90 / 1 8 / 1 1 / 3 9 / 1 1 /
1237 935 711 378 643
Janus Worldwide Fund Apr-09 Global Funds 19 96 / 45 170 / 69 201 / 87 132 / *** 0
524 381 294 152
Janus Global Life Global 36 / 20 / 21 / 4 / 8 /
Sciences Fund Apr-07 Healthcare/Biotechnology 72 49 45 44 49 42 25 15 16 49
Funds
Janus Global Jan-06 Global Science & 33 26 / 22 16 / 27 18 / 46 10 / 28 20 /
Technology Fund Technology Funds 78 73 67 21 73
Janus Global Research Feb-05 Global Funds 51 264 / 10 38 / - - - - 6 18 /
Fund 524 381 318
Janus Global Apr-09 Global Funds 6 31 / 24 88 / 61 179 / - - *** 0
Opportunities Fund 524 381 294
Value Funds
Perkins Mid Cap Value Aug-98 Mid-Cap Value Funds 16 45 / 4 8 / 3 5 / 2 1 / 2 1 /
Fund - Inv(1) 291 235 179 63 52
Perkins Small Cap Feb-97 Small-Cap Core Funds 1 6 / 2 7 / 10 46 / 14 33 / 5 6 /
Value Fund - Inv*(1) 768 617 503 242 130
Income Funds
Janus Flexible Bond May-07 Intermediate Investment 6 29 / 6 26 / 6 23 / 21 44 / 7 35 /
Fund Grade Debt 566 462 395 210 511
Janus High-Yield Fund Dec-03 High Current Yield Funds 8 35 / 19 74 / 18 60 / 10 20 / 18 55 /
462 392 333 202 322
Janus Short-Term Bond May-07 Short Investment Grade 1 1 / 2 3 / 3 4 / 9 8 / 3 7 /
Fund Debt 255 210 175 90 248
Asset Allocation Funds
Janus Smart Dec-05 Mixed-Asset Target 63 414 / 7 35 / - - - - 6 29 /
Portfolio-Growth Alloc. Growth Funds 661 536 521
Janus Smart Dec-05 Mixed-Asset Target 24 121 / 3 8 / - - - - 5 16 /
Portfolio-Moderate Alloc. Mod. Funds 524 388 376
Janus Smart Dec-05 Mixed-Asset Target 20 83 / 3 9 / - - - - 2 6 /
Portfolio-Conservative Alloc. Cons. Funds 422 345 314
Data presented reflects past performance, which is no guarantee of future results. Strong rankings are not indicative of positive fund performance. Year-to-date absolute performance for some funds is negative.
Lipper, a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.
Notes:
(1) Closed to new investors.
(2) Ranking is for the
investor share class only; other classes may have different performance
characteristics.
*** In accordance with FINRA regulations, Lipper
rankings cannot be publicly disclosed for time periods of less than one
year.
Janus Adviser Series ("JAD") Class S Shares Lipper Rankings Based on Total Returns as of 6/30/09
1-Year 3-Year 5-Year 10-Year Since PM
Inception
PM Rank Rank Rank Rank Rank
Lipper Percentile / Percentile / Percentile / Percentile / Percentile /
Inception Category Rank (%) Total Rank (%) Total Rank (%) Total Rank (%) Total Rank (%) Total
Funds Funds Funds Funds Funds
Growth Funds
Forty Fund Jan-08 Large-Cap 86 720 / 1 4 / 1 3 / 2 6 / 43 346 /
Growth Funds 841 717 602 313 815
Mid Cap Growth Fund Oct-07 Mid-Cap 36 187 / 10 45 / 6 21 / 75 135 / 19 94 /
Growth Funds 522 457 376 179 496
Large Cap Growth Fund Oct-07 Large-Cap 41 343 / 42 301 / 56 335 / 53 166 / 45 357 /
Growth Funds 841 717 602 313 799
INTECH Risk-Managed Jan-03 Multi-Cap 60 274 / 70 254 / 82 251 / - - 80 221 /
Growth Fund Growth Funds 458 365 306 277
Orion Fund Dec-07 Mid-Cap 55 285 / 11 49 / - - - - 54 272 /
Growth Funds 522 457 503
Small-Mid Growth Fund Jun-06 Small-Cap 5 26 / 2 9 / - - - - 2 9 /
Growth Funds 578 498 498
Core Funds
Mixed-Asset 12 / 4 / 4 / 14 / 3 /
Balanced Fund Apr-05 Target Alloc. 3 524 2 388 2 295 10 147 1 342
Mod. Funds
Growth and Income Nov-07 Large-Cap 64 597 / 76 610 / 42 279 / 21 77 / 63 557 /
Fund Core Funds 936 809 673 379 890
Fundamental Equity Nov-07 Large-Cap 71 662 / 66 527 / 19 127 / 23 84 / 69 614 /
Fund Core Funds 936 809 673 379 890
Small Company Value Mar-09 Small-Cap 13 94 / 31 188 / 28 141 / - - ***
Fund Core Funds 768 617 503
INTECH Risk-Managed Jan-03 Multi-Cap 48 357 / 67 407 / 44 196 / - - 35 124 /
Core Fund Core Funds 755 610 454 357
Contrarian Fund Aug-05 Multi-Cap 92 690 / 38 229 / - - - - 17 90 /
Core Funds 755 610 541
Global/International/
Funds
International Growth Jun-03 International 8 96 / 1 7 / 1 1 / 3 8 / 1 2 /
Fund Funds 1237 935 711 378 643
Worldwide Fund Apr-09 Global Funds 8 39 / 26 96 / 53 155 / 76 115 / ***
524 381 294 152
International Equity Nov-06 International 15 179 / - - - - - - 2 18 /
Fund Funds 1237 979
INTECH Risk-Managed May-07 International 62 761 / - - - - - - 48 513 /
International Fund Funds 1237 1070
International Forty May-08 International 50 616 / - - - - - - 30 355 /
Fund Funds 1237 1207
Global Research Fund Nov-07 Global Funds 56 294 / - - - - - - 43 195 /
524 461
Value Funds
Perkins Mid Cap Value Dec-02 Mid-Cap Value 15 41 / 2 4 / 3 4 / - - 8 12 /
Fund Funds 291 235 179 155
INTECH Risk-Managed Dec-05 Multi-Cap 54 187 / 60 168 / - - - - 60 156 /
Value Fund Value Funds 346 283 259
Alternative Funds
Long/Short Fund Aug-06 Long/Short 46 47 / - - - - - - 30 14 /
Equity Funds 103 47
Global Real Estate Nov-07 Global Real 5 4 / - - - - - - 4 3 /
Fund Estate Funds 81 74
Income Funds
Intermediate 22 / 30 / 29 / 42 / 35 /
Flexible Bond Fund May-07 Investment 4 566 7 462 8 395 20 210 7 511
Grade Debt
High-Yield Fund Aug-05 High Current 14 64 / 27 103 / - - - - 27 99 /
Yield 462 392 369
Rankings are for the Class S Shares only; other classes may have different performance characteristics.
Note:
*** In accordance with FINRA regulations, Lipper rankings
cannot be publicly disclosed for time periods of less than one year.
Janus Aspen Series ("JAS") Institutional Shares Lipper Rankings Based on Total Returns as of 6/30/09
1-Year 3-Year 5-Year 10-Year Since PM
Inception
PM Rank Rank Rank Rank Rank
Lipper Category Percentile / Percentile / Percentile / Percentile /Total Percentile /
Inception Rank (%) Total Rank (%) Total Rank (%) Total Rank (%) Funds Rank (%) Total
Funds Funds Funds Funds
Growth Funds
Forty Portfolio Jan-08 VA Large-Cap Growth 87 206 / 1 1 / 1 1 / 3 2 / 76 31 70 /
236 213 192 229
Janus Portfolio Oct-07 VA Large-Cap Growth 37 86 / 32 68 / 58 111 / 62 47 / 36 80 /
236 213 192 76 224
Enterprise Portfolio Oct-07 VA Mid-Cap Growth 59 80 / 12 15 / 9 9 / 73 31 / 23 29 /
136 124 111 42 129
Core Funds
Balanced Portfolio Apr-05 VA Mixed-Asset 2 3 / 1 1 / 3 2 / 13 6 / 47 2 1 /
Target Alloc. Mod. 185 120 78 95
Growth and Income Nov-07 VA Large-Cap Core 21 48 / 30 62 / 14 24 / 11 9 / 87 17 37 /
Portfolio 230 207 182 221
Fundamental Equity Nov-07 VA Large-Cap Core 65 149 / 56 116 / 15 27 / 16 14 / 53 117 /
Portfolio 230 207 182 87 221
Global/International
Funds
Worldwide Growth Apr-09 VA Global 29 36 / 39 34 / 82 60 / 87 31 / *** 0
Portfolio 125 88 73 35
International Growth Jun-03 VA International 4 10 / 1 2 / 1 1 / 3 2 / 97 1 1 /
Portfolio 275 232 193 185
Global Life Sciences Oct-04 VA 95 36 / 43 15 / 19 6 / - - 16 5 /
Portfolio Health/Biotechnology 37 34 31 31
Global Technology Jan-06 VA Science & 37 21 / 26 14 / 16 8 / - - 28 15 /
Portfolio Technology 57 54 52 54
Value Funds
Perkins Mid Cap May-03 VA Mid-Cap Value 6 4 / 2 1 / 2 1 / - - 2 1 /
Value Portfolio 76 63 52 49
Income Funds
Flexible Bond VA Intermediate 7 / 11 / 11 / 9 /
Portfolio May-07 Investment Grade 10 73 17 67 19 60 18 5 / 28 13 69
Debt
Data presented reflects past performance, which is no guarantee of future results. Strong rankings are not indicative of positive fund performance. Year-to-date absolute performance for some funds is negative.
Lipper, a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.
Rankings are for the Institutional Shares only; other classes may have different performance characteristics.
Note:
*** In accordance with FINRA regulations, Lipper rankings
cannot be publicly disclosed for time periods of less than one year.
The Overall Morningstar RatingTMis derived from a
Janus Investment Fund ("JIF") weighted average of the performance figures
associated with its three-, five-, and ten-year
(if applicable) Morningstar RatingTMmetrics.
Overall Three-Year Five-Year Ten-Year
Rating Rating Rating Rating
Fund Category Stars # of Stars # of Stars # of Stars # of
Funds Funds Funds Funds
Janus Fund Large Growth 3 1565 4 1565 3 1294 2 663
Funds
Janus Enterprise Fund Mid-Cap Growth 3 794 4 794 4 658 2 331
Funds
Janus Growth and Large Growth 3 1565 2 1565 3 1294 4 663
Income Fund Funds
Janus Research Fund Large Growth 3 1565 3 1565 3 1294 2 663
Funds
Janus Twenty Fund (1) Large Growth 4 1565 5 1565 5 1294 3 663
Funds
Janus Venture Fund (1) Small Growth 3 687 3 687 3 573 2 310
Funds
Janus Overseas Fund Foreign Large 5 226 5 226 5 172 4 89
(1) Growth Funds
Janus Balanced Fund Moderate 5 960 5 960 5 793 5 453
Allocation Funds
Janus Fundamental Large Growth 4 1565 2 1565 4 1294 4 663
Equity Fund Funds
Janus Mid Cap Value Mid-Cap Value
Fund - Investor Shares Funds 5 332 5 332 5 245 5 87
(2)
Janus Small Cap Value
Fund - Investor Shares Small Value Funds 5 318 5 318 5 242 4 117
(1,2)
Janus Flexible Bond Intermediate-Term 5 983 5 983 5 860 4 476
Fund Bond Funds
Janus High-Yield Fund High Yield Bond 4 478 4 478 4 404 4 252
Funds
Janus Short-Term Bond Short-Term Bond 5 358 5 358 5 301 4 157
Fund Funds
Janus Worldwide Fund World Stock Funds 2 544 3 544 2 446 2 253
Janus Orion Fund Health Funds 3 159 3 159 3 146 2 59
Janus Global Life Technology Funds 4 215 4 215 4 194 4 75
Sciences Fund
Janus Global Mid-Cap Growth 4 794 3 794 4 658 N/A
Technology Fund Funds
INTECH Risk-Managed Large Blend Funds 4 1740 3 1740 4 1363 N/A
Stock Fund
Janus Contrarian Fund Large Blend Funds 4 1740 2 1740 5 1363 N/A
Janus Global World Stock Funds 3 544 4 544 3 446 N/A
Opportunities Fund
Janus Triton Fund Small Growth 5 687 5 687 N/A N/A
Funds
Janus Global Research World Stock Funds 4 544 4 544 N/A N/A
Fund
Janus Smart Moderate 4 960 4 960 N/A N/A
Portfolio-Growth Allocation Funds
Janus Smart Moderate 5 960 5 960 N/A N/A
Portfolio-Moderate Allocation Funds
Janus Smart Conservative 5 485 5 485 N/A N/A
Portfolio-Conservative Allocation Funds
Percent of funds rated 4 / 5 Stars 69.2% 65.4% 66.7% 58.8%
Data presented reflects past performance, which is no guarantee of future results. Strong ratings are not indicative of positive fund performance. Year-to-date absolute performance for some funds is negative. (C) 2009 Morningstar, Inc. All Rights Reserved.
Notes:
(1) Closed to new investors.
(2) Rating is for this
share class only; other classes may have different performance
characteristics.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating TM 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 Overall Morningstar RatingTMis derived from a
Janus Adviser Series ("JAD") S weighted average of the performance figures
Shares associated with its three-, five-, and ten-year
(if applicable) Morningstar RatingTMmetrics.
Overall Three-Year Five-Year Ten-Year
Rating Rating Rating Rating
Fund Category Stars # of Stars # of Stars # of Stars # of
Funds Funds Funds Funds
Balanced Fund Moderate 5 960 5 960 5 793 5 453
Allocation Funds
Fundamental Large Growth 4 1565 2 1565 4 1294 4 663
Equity Fund Funds
Flexible Bond Intermediate-Term 5 983 5 983 5 860 4 476
Fund Bond Funds
Forty Fund Large Growth 5 1565 5 1565 5 1294 4 663
Funds
Growth & Large Growth 3 1565 2 1565 3 1294 4 663
Income Fund Funds
International Foreign Large 5 226 5 226 5 172 5 89
Growth Fund Growth Funds
Large Cap Large Growth 3 1565 3 1565 3 1294 3 663
Growth Fund Funds
Mid Cap Mid-Cap Growth 3 794 4 794 4 658 2 331
Growth Fund Funds
Worldwide World Stock Funds 3 544 4 544 3 446 2 253
Fund
Perkins Mid Mid-Cap Value
Cap Value Funds 5 332 5 332 5 245 N/A
Fund
INTECH
Risk-Managed Large Blend Funds 4 1740 3 1740 4 1363 N/A
Core Fund
INTECH Large Growth
Risk-Managed Funds 2 1565 2 1565 2 1294 N/A
Growth Fund
Perkins Small
Company Value Small Value Funds 3 318 3 318 3 242 N/A
Fund
Contrarian Large Blend Funds 2 1740 2 1740 N/A N/A
Fund
Orion Fund Mid-Cap Growth 3 794 3 794 N/A N/A
Funds
Small-Mid Mid-Cap Growth 5 794 5 794 N/A N/A
Growth Fund Funds
High-Yield High Yield Bond 4 478 4 478 N/A N/A
Fund Funds
INTECH
Risk-Managed Large Value Funds 3 1154 3 1154 N/A N/A
Value Fund
International Foreign Large N/A N/A N/A N/A
Equity Fund Growth Funds
Perkins Large
Cap Value Large Value Funds N/A N/A N/A N/A
Fund
Global Real Global Real N/A N/A N/A N/A
Estate Fund Estate Funds
Global World Stock Funds N/A N/A N/A N/A
Research Fund
Long/Short Long-Short Funds N/A N/A N/A N/A
Fund
International Foreign Large N/A N/A N/A N/A
Forty Fund Growth Funds
INTECH
Risk-Managed Foreign Large N/A N/A N/A N/A
International Blend Funds
Fund
Modular
Portfolio Moderate N/A N/A N/A N/A
Construction Allocation Funds
Fund
Percent of funds rated 4 / 5 50.0% 50.0% 61.5% 66.7%
Stars
Data presented reflects past performance, which is no guarantee of future results. Strong ratings are not indicative of positive fund performance. Year-to-date absolute performance for some funds is negative. (C) 2009 Morningstar, Inc. All Rights Reserved.
Ratings are for Class S Shares only; other classes may have different performance characteristics.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating TM 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 Overall Morningstar RatingTMis derived from a
Janus Aspen Series ("JAS") weighted average of the performance figures
Institutional Shares associated with its three-, five-, and ten-year (if
applicable) Morningstar RatingTMmetrics.
Overall Three-Year Five-Year Ten-Year
Rating Rating Rating Rating
Fund Category Stars # of Stars # of Stars # of Stars # of
Funds Funds Funds Funds
Balanced Moderate 5 960 5 960 5 793 5 453
Fund Allocation Funds
Flexible Intermediate-Term 5 983 5 983 5 860 5 476
Bond Fund Bond Funds
Forty Fund Large Growth 5 1565 5 1565 5 1294 4 663
Funds
Research Large Growth 4 1565 2 1565 4 1294 4 663
Core Fund Funds
Growth & Large Growth
Income Funds 4 1565 3 1565 4 1294 4 663
Fund
Overseas Foreign Large 5 226 5 226 5 172 5 89
Fund Growth Funds
Worldwide World Stock Funds 2 544 3 544 2 446 2 253
Fund
Janus Fund Large Growth 3 1565 4 1565 3 1294 2 663
Funds
Enterprise Mid-Cap Growth 3 794 4 794 4 658 2 331
Fund Funds
Global
Life Health Funds 4 159 3 159 4 146 N/A
Sciences
Fund
Global
Technology Technology Funds 4 215 3 215 4 194 N/A
Fund
Perkins Mid-Cap Value
Mid Cap Funds 5 332 5 332 5 245 N/A
Value Fund
Percent of funds rated 4 / 5 75.0% 58.3% 83.3% 66.7%
Stars
Data presented reflects past performance, which is no guarantee of future results. Strong ratings are not indicative of positive fund performance. Year-to-date absolute performance for some funds is negative. (C) 2009 Morningstar, Inc. All Rights Reserved.
Ratings are for Institutional Shares only; other classes may have different performance characteristics.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating TM 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.)
Source: Janus Capital Group Inc.
Contact: Janus Capital Group Inc.
Shelley Peterson, 303-316-5625
or
Scott Grace, 303-394-7709
