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SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-1879

 

Janus Investment Fund

(Exact name of registrant as specified in charter)

 

151 Detroit Street, Denver, Colorado

80206

(Address of principal executive offices)

(Zip code)

 

Kelley Abbott Howes, 151 Detroit Street, Denver, Colorado  80206

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

303-333-3863

 

 

Date of fiscal year end:

10/31

 

 

Date of reporting period:

4/30/05

 

 



 

Item 1 - Reports to Shareholders

 



2005 Semiannual Report

Janus Growth Funds

Growth

Janus Fund

Janus Enterprise Fund

Janus Mercury Fund

Janus Olympus Fund

Janus Orion Fund

Janus Triton Fund

Janus Twenty Fund

Janus Venture Fund

Specialty Growth

Janus Global Life Sciences Fund

Janus Global Technology Fund



Table of Contents

Janus Growth Funds

President and CIO Letter to Shareholders     1    
Portfolio Managers' Commentaries and Schedules of Investments          
Janus Fund     5    
Janus Enterprise Fund     11    
Janus Mercury Fund     17    
Janus Olympus Fund     22    
Janus Orion Fund     27    
Janus Triton Fund     32    
Janus Twenty Fund     36    
Janus Venture Fund     40    
Janus Global Life Sciences Fund     46    
Janus Global Technology Fund     51    
Statements of Assets and Liabilities     58    
Statements of Operations     60    
Statements of Changes in Net Assets     62    
Financial Highlights     66    
Notes to Schedules of Investments     71    
Notes to Financial Statements     74    
Additional Information     81    
Explanations of Charts, Tables and Financial Statements     83    

 

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a 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.



Dear Shareholder,

Having served as Janus' Chief Investment Officer for full a year now, it seems an appropriate time to assess the progress we've made for our shareholders over the past 12 months.

Report Card

In my first letter to Janus shareholders last April, I spoke about our collective efforts to expand our coverage of stocks, improve our risk-management discipline and foster additional collaboration between portfolio managers and analysts.

I am pleased to report that we have made significant progress on all three fronts, and would like to share details with you.

First, we hired eight new equity analysts this past year, which brings the total equity analyst team to 36. On the fixed-income side, we hired three new credit analysts. The expanded research staff has enabled Janus to increase its coverage of domestic and international stocks, with the goal of keeping the portfolios fresh with current ideas.

Second, we improved our risk-management oversight by creating the position of Director of Risk Management and Performance, a role recently filled by Daniel Scherman, who brings with him more than 20 years of experience in the investment management industry. While Janus' heritage is built on a willingness to invest with conviction when we believe we have a research edge, adding this additional layer of risk oversight should ensure that exposures, whether intended or not, are properly analyzed.

The third initiative on which we have made progress is enhancing the quality of debate and dialogue within the investment team, which is a critical, yet intangible component of any successful investment management organization. There are multiple venues available for portfolio managers and analysts to come together and discuss or review key stocks in the news or new buy recommendations. The senior analysts that lead the global sector teams play an important part in driving this dialogue with the portfolio managers, resulting in a more robust exchange of ideas.

Also noteworthy is the contribution our team of 12 research associates has made to our overall research effort. Created two years ago, the team continues to make solid contributions by uncovering real-time demand trends in the marketplace in key consumer categories, ranging from travel and lodging to online music and wireless communications.

While we're pleased with our accomplishments to date, these and other initiatives would be irrelevant if there was no concurrent improvement in relative fund performance. In that regard, I am pleased to report a significant improvement in the relative performance of a number of our funds, as described below.

Performance

As of April, 30, 2005, 73% of Janus growth and core funds ranked in Lipper's top two quartiles for the one- and three-year periods, based on total returns. Longer-term relative performance is also impressive, with 100% of our growth and core funds ranking in Lipper's top two quartiles for the life-of-fund periods.

In my opinion, the improvement in relative performance for many of our funds tells me that our research effort continues to set us apart from our peers and that the portfolios are well positioned to outperform in all types of markets. The investment team is working together to ensure that, in its view, the most compelling risk/reward stocks are properly positioned in the portfolios.

New Fund Offerings

We are very excited to bring our investors two new mutual funds, which were launched this past winter: Janus Triton Fund and Janus Research Fund. Janus Triton Fund, managed by Ron Sachs, outpaced its benchmark index since inception (the two-month period ended April 30, 2005). We attribute these results to the success that Ron and team have had uncovering promising investment ideas in the small- and mid-cap growth space.

Gary Black

President and Chief

Investment Officer

Past performance is no guarantee of future results.

Janus Growth Funds April 30, 2005 1



Continued

Janus Research Fund is a unique collection of the top picks of each analyst at Janus, thereby resulting in a diversified, multicap portfolio of both growth and value stocks. It, too, is backed by a solid research effort, and by focusing on what we believe are the best prospects for the long haul, we hope to deliver Index-beating returns with relatively low risks.

Market Review and Outlook

After hitting 31/2 year highs in early March, equity markets encountered stiff headwinds in late-March and April. Record-high oil prices, sluggish retail sales, falling consumer confidence, and slowing earnings growth all conspired to stymie the markets.

General Motors' announcement in mid-March that it has scaled back its earnings expectations for the remainder of 2005 was a clear sign that higher oil prices and rising interest rates were finally having a negative impact on consumer spending. Subsequent updates by Wal-Mart, Harley-Davidson and IBM provided further confirmation of a slightly softer macroeconomic environment as the second quarter unfolded.

It appears that two opposing opinions have crystallized regarding the near-term outlook for the economy. One camp is forecasting a deceleration in the economy due to the lagging effect of higher energy prices and rising interest rates. This group is projecting that gross domestic product (GDP) growth will slow to 2% in the second half of the year.

The other camp argues that the U.S. economy is better equipped to handle higher energy prices and interest rates when compared to the 1980s, and what we may be witnessing in the current volatile market is the handoff in spending from consumers to businesses.

Taking a step back from the day-to-day noise of the markets, the most likely scenario to unfold will be that the economy continues to grow at an acceptable rate given this stage of the business cycle. While it is reasonable to expect some moderation in economic growth as the business cycle matures, we do not think that GDP growth will decelerate markedly in the second half of the year.

In support of that view, it is important to note that unemployment is declining, business spending is improving, merger and acquisition activity is picking up, jobs are still being created, and corporate earnings generally have been reasonable.

Risks to economic growth are well known – rising energy prices, eroding consumer confidence, job cuts, reduced business spending, and higher interest rates. We believe these concerns will likely remain in the forefront of the market for the near term.

While all investors get impatient with sideways markets, we at Janus believe that the market will always reward superior business models with improving fundamental outlooks. Our job is to identify those companies that are winning in the marketplace and own them in your funds.

Thank you for your confidence and trust.

Sincerely,

Gary Black
President and Chief Investment Officer

There is no assurance that the investment process will consistently lead to successful investing. There is no guarantee these trends will continue.

As of April 30, 2005, General Motors Acceptance Corp. was 0.9% of the Janus Short-Term Bond Fund, 0.4% of the Janus High-Yield Fund, 0.2% of the Janus Balanced Fund and 0.1% of the Janus Flexible Bond Fund.

As of April 30, 2005, Wal-Mart Stores, Inc. was 1.5% of the Janus Research Fund, 0.5% of the Janus Balanced Fund, 0.5% of the Janus Mercury Fund, 0.5% of the Janus Olympus Fund and 0.4% of the Janus Risk-Managed Stock Fund.

As of April 30, 2005, Harley-Davidson, Inc. was 0.5% of the Janus Olympus Fund, 0.3% of the Janus Flexible Bond Fund, 0.2% of the Janus Risk-Managed Stock Fund and 0.2% of the Janus Fund.

As of April 30, 2005, International Business Machines Corp. was 1.6% of the Janus Global Technology Fund, 1.0% of the Janus Core Equity Fund, 0.6% of the Janus Balanced Fund, 0.3% of the Janus Flexible Bond Fund and 0.1% of the Janus Risk-Managed Stock Fund. There is no assurance that any Janus fund currently holds these securities.

2 Janus Growth Funds April 30, 2005



Lipper Rankings

        Lipper Rankings - Based on total return as of 4/30/05  
        ONE YEAR   THREE YEAR   FIVE YEAR   TEN YEAR   SINCE INCEPTION  
    LIPPER CATEGORY   PERCENTILE
RANK (%)
  RANK/
TOTAL FUNDS
  PERCENTILE
RANK (%)
  RANK/
TOTAL FUNDS
  PERCENTILE
RANK (%)
  RANK/
TOTAL FUNDS
  PERCENTILE
RANK (%)
  RANK/
TOTAL FUNDS
  PERCENTILE
RANK (%)
  RANK/
TOTAL FUNDS
 
Janus Investment Funds      
(Inception Date)  
Janus Fund (2/70)   Large-Cap Growth Funds     53     348/659     52     280/544     67       278/420       41       56/137       5     1/19  
Janus Enterprise Fund(1) (9/92)   Mid-Cap Growth Funds     22     115/537     10     39/426     92       264/289       58       65/112       38     19/50  
Janus Mercury Fund(1) (5/93)   Large-Cap Growth Funds     19     119/659     10     53/544     82       344/420       7       9/137       2     1/85  
Janus Olympus Fund(1) (12/95)   Multi-Cap Growth Funds     37     155/421     71     250/354     80       192/242                   15     13/90  
Janus Orion Fund (6/00)   Multi-Cap Growth Funds     10     38/421     10     33/354                             37     93/252  
Janus Twenty Fund* (4/85)   Large-Cap Growth Funds     3     19/659     1     2/544     73       305/420       1       1/137       6     2/38  
Janus Venture Fund* (4/85)   Small-Cap Growth Funds     25     125/510     15     62/418     62       190/310       37       31/83       10     1/9  
Janus Balanced Fund(1) (9/92)   Balanced Funds     38     228/601     58     257/447     58       208/362       7       10/162       4     3/76  
Janus Core Equity Fund(1) (6/96)   Large-Cap Core Funds     5     38/917     28     214/783     26       153/600                   2     5/291  
Janus Growth and Income Fund(1) (5/91)   Large-Cap Core Funds     6     52/917     28     217/783     62       371/600       3       5/230       5     5/110  
Janus Risk-Managed Stock Fund (2/03)   Multi-Cap Core Funds     3     22/739                                         16     96/616  
Janus Contrarian Fund(4) (2/00)   Multi-Cap Core Funds     7     46/739     5     23/527     26       95/367                   22     76/351  
Janus Federal Tax-Exempt Fund (5/93)   General Municipal Debt     78     219/280     73     188/257     85       191/224       71       102/143       83     69/83  
Janus Flexible Bond Fund(1)(2) (7/87)   Intermediate Inv Grade Debt Funds     68     308/453     14     51/383     58       153/265       8       10/135       12     3/24  
Janus High-Yield Fund (12/95)   High Current Yield Funds     36     150/418     80     280/350     38       108/285                   3     3/104  
Janus Short-Term Bond Fund(1) (9/92)   Short Investment Grade Debt     62     129/208     46     64/139     44       46/105       25       14/56       44     11/24  
Janus Global Life Sciences Fund (12/98)   Health/Biotechnology Funds     53     96/181     53     83/157     83       64/77                   32     16/49  
Janus Global Opportunities Fund(1) (6/01)   Global Funds     83     266/321     52     134/260                             10     22/234  
Janus Global Technology Fund (12/98)   Science and Technology Funds     59     172/292     58     158/275     54       81/149                   22     18/83  
Janus Overseas Fund(1) (5/94)   International Funds     80     674/851     58     405/706     83       423/513       5       8/171       6     7/123  
Janus Worldwide Fund(1) (5/91)   Global Funds     96     306/321     99     256/260     94       183/194       36       22/61       32     6/18  
Janus Mid Cap Value Fund - Inv(1)(3) (8/98)   Mid-Cap Value Funds     51     120/235     31     57/184     14       14/100                   5     4/79  
Janus Small Cap Value Fund - Inv*(3) (10/87)   Small-Cap Core Funds     50     293/591     68     320/474     17       53/324       N/A       N/A       N/A     N/A  

 

(1)The date of the Lipper ranking is slightly different from when the fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.

(2)Effective February 28, 2005, Janus Flexible Income Fund changed its name to Janus Flexible Bond Fund and added to its investment policy to state that at least 80% of its net assets (plus borrowings for investment purposes) will be invested in bonds.

(3)Rating is for the investor share class only; other classes may have different performance characteristics.

(4)Janus Contrarian Fund buys stock in overlooked or underappreciated companies of any size, in any sector. Overlooked and underappreciated stocks present special risks.

*Closed to new investors.

Data presented represents past performance, which is no guarantee of future results.

Janus Contrarian Fund, Janus Overseas Fund, Janus Global Technology Fund and Janus Orion Fund may have significant exposure to emerging markets which may lead to greater price volatility.

A fund's performance may be affected by risks that include those associated with non-diversification, investments in foreign securities, non-investment grade debt securities, undervalued companies or companies with a relatively small market capitalization. Please see a Janus prospectus for more detailed information.

There is no assurance that the investment process will consistently lead to successful investing.

Growth and value investing each have their own unique risks and potential for rewards, and may not be suitable for all investors. A growth investing strategy typically carries a higher risk of loss and a higher potential for reward than a value investing strategy. A growth investing strategy emphasizes capital appreciation; a value investing strategy emphasizes investments in companies believed to be undervalued.

Lipper Inc. - A Reuters Company, is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested.

Janus Growth Funds April 30, 2005 3



Useful Information About Your Fund Report

Portfolio Manager Commentaries

The portfolio manager commentaries in this report include valuable insight from the portfolio managers as well as statistical information to help you understand how your fund's performance and characteristics stack up against those of comparable indices.

Please keep in mind that the opinions expressed by the portfolio managers in their commentaries are just that: opinions. The commentary is a reflection of the portfolio manager's best judgment at the time this report was compiled, which was April 30, 2005. As the investing environment changes, so could the portfolio managers' opinions. These views are unique to each manager and aren't necessarily shared by their fellow employees or by Janus in general.

Fund Expenses

We believe it's important for our shareholders to have a clear understanding of fund expenses and the impact they have on investment return.

The following is important information regarding each Fund's Expense Example, which appears in each Fund's Portfolio Manager Commentary within this Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.

Example

As a shareholder of a fund, you incur two types of costs: (1) transaction costs such as redemption fees (where applicable) (and any related exchange fees) and (2) ongoing costs, including management fees and other Fund expenses. The example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period from November 1, 2004 to April 30, 2005 for all Funds except Janus Triton Fund which is based on the period February 25, 2005 to April 30, 2005.

Actual Expenses

The first line of the table in each example provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of the table in each example provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses. This is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Janus Capital Management LLC ("Janus Capital") has contractually agreed to waive Janus Triton Fund's total operating expenses, excluding brokerage commissions, interest, taxes and extraordinary expenses to certain limits until at least March 1, 2006. Expenses in the example reflect the application of this waiver. Had the waiver not been in effect, your expenses would have been higher. More information regarding the waiver is available in the Funds' Prospectuses.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees (where applicable). These fees are fully described in the prospectus. Therefore, the second line of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

4 Janus Growth Funds April 30, 2005



Janus Fund (unaudited)

Fund Snapshot

For more than 30 years, this traditional growth fund has exemplified Janus' research and stock-picking abilities.

Blaine Rollins

portfolio manager

Performance Overview

During the six-month period ended April 30, 2005, Janus Fund gained 1.54%, outpacing the Russell 1000® Growth Index's return of 1.14%. The Fund's secondary benchmark, the S&P 500® Index, returned 3.28% for the same time period. Investor sentiment shifted dramatically during the period, with confidence surging in the latter months of 2004 following the presidential election and then waning as concerns over interest rates, inflation, and rising commodity prices took hold in 2005. The environment was also challenging for us in that growth stocks continued to lag value stocks for the period.

We owe our outperformance of the Russell 1000® Growth Index to a range of factors, including strong stock selection across market sectors. Performance within the food and staples retailing, technology hardware and equipment, and retailing sectors was particularly strong. Conversely, the Fund's larger position than the Index in the weaker-performing semiconductor group held back our results during the period.

Strategy in This Environment

Over the past six months, we continued to perform in-depth, bottom-up research in pursuit of those leading growth companies we believe are taking market share from their peers and investing/deploying their profits wisely. We also took measures to reduce the Fund's risk profile by further diversifying assets across holdings – a strategy that worked to our advantage in a volatile period. Additionally, we continued to invest in new ideas that represent our expanded analyst team's best ideas. The result has been improved performance – a trend that we will be working to uphold as the year continues.

Portfolio Composition

As of April 30, 2005, the Fund was 94.4% invested in equities, with foreign stocks accounting for 17.2% of our net assets. The Fund's top 10 equity holdings represented 35.7% of its total net assets and we held a cash position of 5.5%.

Strong Performance from Select Holdings in Media, Healthcare, and Aerospace and Defense

Our strongest contribution during the semiannual period came from media leader Comcast, the nation's largest cable operator. We view Comcast as a defensive growth utility that is taking share away from competing single-service media companies. Throughout the semiannual period, Comcast benefited from its past investment in a high-speed, two-way plant, and consumers are finding additional value in Comcast's video, data and telephony services. Its digital video business continues to bring in new customers at a strong rate due to the growth of high-definition TV, digital video recorders and video-on-demand products. In March alone, Comcast's video-on-demand product, On Demand, registered 100 million viewings (or about 12 per digital cable household). Meanwhile, cable modem subscribers keep growing even as DSL pricing is falling, proving that cable is a speed- and service-differentiated product. We are also excited that while Comcast continues to invest in its own internal growth, the company is returning cash to shareholders via stock repurchases as well.

Other high-performing holdings could be found in healthcare. Our team identified a number of companies that provided 30-percent-plus upside during the period, including Alcon, Caremark, Patterson Dental, UnitedHealthcare, and Celgene. Although some clouds over the pharmaceutical industry remained, we were pleased with the Fund's outperformance in healthcare. Another noteworthy contributor was drugstore chain Walgreen Co., which is classified as a retail stock but in many ways is a

Top 10 Equity Holdings – (% of Net Assets)

    April 30, 2005   October 31, 2004  
Comcast Corp. - Special Class A     6.0 %     7.2 %  
Time Warner, Inc.     5.9 %     7.0 %  
Cisco Systems, Inc.     4.6 %     4.8 %  
Maxim Integrated Products, Inc.     3.5 %     6.7 %  
Walgreen Co.     3.3 %     2.8 %  
Procter & Gamble Co.     2.7 %     1.3 %  
Linear Technology Corp.     2.7 %     4.7 %  
Tyco International, Ltd.
(New York Shares)
    2.6 %     2.4 %  
Lockheed Martin Corp.     2.3 %     1.6 %  
McDonald's Corp.     2.1 %     2.3 %  

 

Janus Growth Funds April 30, 2005 5



Janus Fund (unaudited)

healthcare play. During the period, Walgreen benefited from an increase in prescriptions – a potential effect of the aging baby boomer demographic.

The Fund's outperformance can also be traced to our exposure to Boeing and other aerospace and defense names. In the case of Boeing, some investors were distracted by negative press regarding a competitor's new double-decker plane and issues surrounding senior management turnover at Boeing; however, we stayed focused on the fundamentals – namely orders for Boeing's 737 and 777 models, new business wins for producing the 787, and improving margins for all three of the company's main divisions. Our confidence was rewarded with strong performance from Boeing for the semiannual period.

Technology Names Detract

Our relative performance was hampered by some of the Fund's technology holdings. For example, semiconductor names Maxim Integrated Products and Linear Technology Company lagged other technology companies, despite their lower valuations and long-term potential for growth. Although I've trimmed our positions in both, Maxim and Linear have been defensible franchises that generate solid cash flow, which they're using to repurchase stock and increase their dividend payouts.

Other detractors were online auction house eBay and system networking giant Cisco Systems. In a sense, eBay was a victim of its own success in 2004. eBay's earnings and accomplishments were so stellar last year that it's been difficult to match investors' expectations in 2005. However, we believe eBay's business model is still sound. Turning to Cisco, performance was off potentially due to sluggish enterprise spending over the past six months. On the positive side, Cisco continues to aggressively repurchase its own stock, thereby shrinking the number of outstanding shares. This tactic typically helps companies succeed over time; with this in mind, we are willing to exercise patience with regard to Cisco.

Investment Strategy and Outlook

Looking ahead, we are optimistic about opportunities in the large-cap growth arena. Valuations for many high-quality names are at attractive levels, and at some point we believe we'll see an increase in companies' spending on new and better technology. In addition, we're confident that investors will be looking to redistribute assets into the fundamentally strong companies that we favor.

Thank you for your investment with Janus.

Significant Areas of Investment – Fund vs. Index (% of Net Assets)

6 Janus Growth Funds April 30, 2005



(unaudited)

Performance

Average Annual Total Return – for the periods ended April 30, 2005

    Fiscal
Year-to-Date
  One
Year
  Five
Year
  Ten
Year
  Since
Inception*
 
Janus Fund     1.54 %     0.92 %     (10.87 )%     7.72 %     13.76 %  
Russell 1000® 
Growth Index
    1.14 %     0.40 %     (10.75 )%     7.71 %     11.84 %**  
S&P 500® Index     3.28 %     6.34 %     (2.94 )%     10.26 %     11.30 %  
Lipper Ranking - based
on total returns for 
Large-Cap Growth Funds
    N/A       348/659       278/420       56/137       1/19    

 

Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 1-800-525-3713 or visit www.janus.com for performance current to the most recent month-end.

See Notes to Schedules of Investments for index definitions.

Total return includes reinvestment of dividends, distributions and capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

* The Fund's inception date – February 5, 1970

** The Russell 1000® Growth Index's since inception returns calculated from December 31, 1978

Fund Expenses

The example below shows you the ongoing costs (in dollars) of investing in your fund and allows you to compare these costs with those of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these charts.

Expense Example   Beginning Account Value
(11/1/04)
  Ending Account Value
(4/30/05)
  Expenses Paid During Period
(11/1/04-4/30/05)*
 
Actual   $ 1,000.00     $ 1,015.40     $ 4.45    
Hypothetical
(5% return before expenses)
  $ 1,000.00     $ 1,020.38     $ 4.46    

 

*Expenses are equal to the annualized expense ratio of 0.89%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

See "Explanations of Charts, Tables and Financial Statements."

The Fund's portfolio may differ significantly from the securities held in the index. The index is not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.

There is no assurance that the investment process will consistently lead to successful investing.

Lipper Inc. - A Reuters Company, is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested.

Effective February 25, 2005, Janus Fund changed its primary benchmark from S&P 500® Index to the Russell 1000® Growth Index. The new primary benchmark will provide a more appropriate comparison to the Fund's investment style. The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Fund will retain the S&P 500® Index as a secondary index.

Janus Growth Funds April 30, 2005 7



Janus Fund

Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Common Stock - 94.4%            
  Advertising Sales - 0.3%                
  949,545     Lamar Advertising Co.*   $ 35,493,992    
  Aerospace and Defense - 5.1%                
  4,948,596     BAE Systems PLC**     24,162,126    
  3,842,450     Boeing Co.#      228,702,624    
  655,765     General Dynamics Corp.     68,888,113    
  4,391,870     Lockheed Martin Corp.     267,684,476    
      589,437,339    
  Apparel Manufacturers - 0.7%                
  5,848,713     Burberry Group PLC**     40,328,090    
  1,375,130     Coach, Inc.*     36,853,484    
      77,181,574    
  Applications Software - 0.2%                
  758,140     NAVTEQ Corp.*     27,611,459    
  Athletic Footwear - 0.2%                
  362,455     NIKE, Inc. - Class B     27,840,169    
  Audio and Video Products - 0.5%                
  1,721,315     Sony Corp. (ADR)**     63,189,474    
  Automotive - Cars and Light Trucks - 0.2%                
  641,696     BMW A.G.**     27,197,261    
  Automotive - Truck Parts and Equipment - Original - 0.2%                
  425,460     Autoliv, Inc.     18,826,605    
  Beverages - Non-Alcoholic - 0.7%                
  1,512,250     PepsiCo, Inc.     84,141,590    
  Beverages - Wine and Spirits - 0.5%                
  937,325     Diageo PLC (ADR)**, #      56,005,169    
  Building - Residential and Commercial - 1.2%                
  1,759,738     D.R. Horton, Inc.     53,672,008    
  55,685     NVR, Inc.*, #      40,001,320    
  596,790     Pulte Homes, Inc.#      42,640,646    
      136,313,974    
  Building and Construction Products - Miscellaneous - 0.9%                
  3,465,880     Masco Corp.     109,140,561    
  Cable Television - 6.0%                
  21,917,161     Comcast Corp. - Special Class A*     695,431,519    
  Chemicals - Diversified - 0.3%                
  1,365,715     Lyondell Chemical Co.#      34,265,789    
  Chemicals - Specialty - 0.2%                
  1,049,465     Syngenta A.G. (ADR)***, #      21,755,409    
  Commercial Banks - 0.6%                
  805,785     UBS A.G. (ADR)**, #      64,704,536    
  Commercial Services - Finance - 1.0%                
  3,838,227     Paychex, Inc.#      117,449,746    
  Computer Services - 0%                
  156,555     Ceridian Corp.*     2,641,083    
  Computers - 1.0%                
  552,660     Dell, Inc.*     19,249,148    
  1,572,855     Research In Motion, Ltd. (New York Shares)*     101,307,590    
      120,556,738    
  Computers - Memory Devices - 0.4%                
  3,594,545     EMC Corp.*     47,160,430    
  Containers - Metal and Glass - 0.4%                
  1,047,855     Ball Corp.     41,390,273    

 

Shares or Principal Amount       Value  
Cosmetics and Toiletries - 2.7%          
  5,780,465     Procter & Gamble Co.   $ 313,012,180    
Cruise Lines - 1.0%          
  2,275,835     Carnival Corp. (New York Shares)     111,242,815    
Dental Supplies and Equipment - 0.6%          
  1,394,032     Patterson Companies, Inc.*, #      70,468,318    
Distribution/Wholesale - 0.3%          
  4,201,000     Esprit Holdings, Ltd.     31,448,455    
Diversified Minerals - 1.4%          
  6,070,255     Companhia Vale do Rio Doce (ADR)#      163,593,372    
Diversified Operations - 5.5%          
  3,124,720     General Electric Co.     113,114,864    
  3,896,065     Honeywell International, Inc.     139,323,284    
  887,875     Pentair, Inc.#      35,319,668    
  2,629,429     Smiths Group PLC**     43,111,090    
  9,793,825     Tyco International, Ltd. (New York Shares)     306,644,661    
      637,513,567    
  Diversified Operations - Commercial Services - 0.2%                
  1,004,260     ARAMARK Corp. - Class B#      24,614,413    
E-Commerce/Services - 1.1%          
  2,405,889     eBay, Inc.*     76,338,858    
  2,400,050     IAC/InterActiveCorp*, #      52,177,087    
      128,515,945    
  Electric - Generation - 0.3%                
  1,869,750     AES Corp.*     30,065,580    
Electronic Components - Miscellaneous - 0.7%          
  3,290,505     Koninklijke (Royal) Philips Electronics N.V.
(New York Shares)**, # 
    81,571,619    
Electronic Components - Semiconductors - 1.2%          
  1,963,010     Intel Corp.     46,169,995    
  3,814,425     Texas Instruments, Inc.     95,208,048    
      141,378,043    
  Electronic Forms - 0.4%                
  870,590     Adobe Systems, Inc.     51,773,987    
Finance - Credit Card - 0.4%          
  937,270     American Express Co.     49,394,129    
Finance - Investment Bankers/Brokers - 1.4%          
  1,441,555     Citigroup, Inc.     67,695,423    
  1,040,685     JPMorgan Chase & Co.     36,933,911    
  982,585     Merrill Lynch & Company, Inc.     52,990,809    
      157,620,143    
  Financial Guarantee Insurance - 0.3%                
  634,285     MBIA, Inc.#      33,223,848    
Food - Confectionary - 0.3%          
  554,550     Wm. Wrigley Jr. Co.     38,336,042    
Food - Retail - 0.8%          
  950,510     Whole Foods Market, Inc.#      94,784,857    
Food - Wholesale/Distribution - 0.5%          
  1,560,535     Sysco Corp.#      53,994,511    
Medical - Biomedical and Genetic - 0.8%          
  978,465     Celgene Corp.*     37,093,608    
  637,260     Genentech, Inc.*     45,207,225    
  213,115     Genzyme Corp.*, #      12,490,670    
      94,791,503    

 

See Notes to Schedules of Investments and Financial Statements.

8 Janus Growth Funds April 30, 2005



Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Medical - Drugs - 2.2%            
  3,053,965     Eli Lilly and Co.   $ 178,565,334    
  1,106,605     Sanofi-Aventis (ADR)**     49,100,064    
  658,415     Wyeth     29,589,170    
      257,254,568    
  Medical - Generic Drugs - 0.5%                
  1,924,355     Teva Pharmaceutical Industries, Ltd. (ADR)#      60,116,850    
  Medical - HMO - 1.2%            
  1,509,440     UnitedHealth Group, Inc.     142,657,174    
  Medical - Hospitals - 0.5%            
  951,010     HCA, Inc.     53,104,398    
  Medical Instruments - 0.8%            
  931,580     Medtronic, Inc.     49,094,266    
  1,004,805     St. Jude Medical, Inc.*     39,217,539    
      88,311,805    
  Medical Products - 3.0%                
  2,540,125     Johnson & Johnson     174,328,779    
  2,075,043     Stryker Corp.#      100,743,338    
  276,216     Synthes, Inc.     31,322,104    
  1,093,365     Varian Medical Systems, Inc.*, #      36,890,135    
      343,284,356    
  Metal - Diversified - 0.3%                
  1,103,825     Inco, Ltd. (New York Shares)     39,450,706    
  Metal Processors and Fabricators - 0.6%                
  927,940     Precision Castparts Corp.#      68,352,060    
  Motorcycle and Motor Scooter Manufacturing - 0.2%                
  596,870     Harley-Davidson, Inc.#      28,064,827    
  Multi-Line Insurance - 1.0%                
  2,192,735     American International Group, Inc.     111,500,575    
  Multimedia - 5.9%                
  40,875,994     Time Warner, Inc.*     687,125,459    
  Networking Products - 5.1%                
  30,731,550     Cisco Systems, Inc.*     531,041,184    
  2,787,905     Juniper Networks, Inc.*, #      62,978,774    
      594,019,958    
  Oil - Field Services - 1.6%                
  1,229,280     Halliburton Co.     51,125,755    
  1,950,915     Schlumberger, Ltd. (New York Shares)**, #      133,462,095    
      184,587,850    
  Oil and Gas Drilling - 0.6%                
  1,451,870     Transocean, Inc.*, #      67,323,212    
  Oil Companies - Exploration and Production - 1.1%                
  1,338,115     Apache Corp.     75,322,493    
  1,060,830     EOG Resources, Inc.     50,442,467    
      125,764,960    
  Oil Companies - Integrated - 0.9%                
  1,211,015     Exxon Mobil Corp.     69,064,186    
  934,905     Suncor Energy, Inc. (New York Shares)     34,460,598    
      103,524,784    
  Optical Supplies - 1.8%                
  2,182,125     Alcon, Inc. (New York Shares)**     211,666,125    
  Pharmacy Services - 1.3%                
  3,703,525     Caremark Rx, Inc.*     148,326,176    

 

Shares or Principal Amount       Value  
  Property and Casualty Insurance - 0.6%                
  2,129,785     W. R. Berkley Corp.   $ 69,218,013    
  Retail - Apparel and Shoe - 1.6%                
  1,664,230     Abercrombie & Fitch Co. - Class A     89,785,209    
  1,929,170     Foot Locker, Inc.#      51,431,672    
  2,314,235     Gap, Inc.     49,408,917    
              190,625,798    
  Retail - Building Products - 0.8%                
  1,738,200     Lowe's Companies, Inc.#      90,577,602    
  Retail - Consumer Electronics - 0.6%            
  1,325,510     Best Buy Company, Inc.     66,726,173    
  Retail - Discount - 0.2%            
  676,714     Costco Wholesale Corp.#      27,461,054    
  Retail - Drug Store - 3.3%            
  9,051,145     Walgreen Co.#      389,742,304    
  Retail - Major Department Stores - 0.8%            
  1,873,740     J.C. Penney Company, Inc.     88,834,013    
  Retail - Office Supplies - 0.6%            
  3,593,332     Staples, Inc.     68,524,841    
  Retail - Restaurants - 2.1%            
  8,167,335     McDonald's Corp.     239,384,589    
  Schools - 0.3%            
  564,710     Apollo Group, Inc. - Class A*     40,726,885    
  Semiconductor Components/Integrated Circuits - 6.2%            
  8,695,895     Linear Technology Corp.     310,791,287    
  11,000,520     Maxim Integrated Products, Inc.£      411,419,449    
              722,210,736    
  Soap and Cleaning Preparations - 0.6%                
  2,137,086     Reckitt Benckiser PLC**     69,383,965    
  Telecommunication Equipment - Fiber Optics - 1.3%            
  11,072,470     Corning, Inc.*     152,246,463    
  Television - 2.2%            
  4,460,443     British Sky Broadcasting Group PLC**     46,162,629    
  8,119,782     Univision Communications, Inc. - Class A*     213,469,069    
              259,631,698    
  Therapeutics - 0.6%                
  1,861,690     Gilead Sciences, Inc.*     69,068,699    
  Transportation - Railroad - 0.1%            
  296,645     Canadian National Railway Co.
(New York Shares)
    16,971,060    
  Transportation - Services - 1.1%            
  1,851,925     United Parcel Service, Inc. - Class B     132,060,772    
  Web Portals/Internet Service Providers - 1.1%            
  3,611,265     Yahoo!, Inc.*     124,624,755    
  Wireless Equipment - 1.2%            
  8,676,540     Nokia Oyj (ADR)**     138,651,109    
  Total Common Stock (cost $8,685,800,255)           10,976,184,389    
  Corporate Bonds - 0.1%                
  Advertising Sales - 0.1%            
  $13,850,000
 
 
    Lamar Advertising Co., 2.875%
senior notes, due 12/31/10
(cost $13,832,507)
   

12,516,937
   

 

See Notes to Schedules of Investments and Financial Statements.

Janus Growth Funds April 30, 2005 9



Janus Fund

Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Other Securities - 2.3%                
  265,987,247     State Street Navigator Securities Lending
Prime Portfolio† (cost $265,987,247)
  $ 265,987,247    
  Time Deposits - 5.1%                
$ 97,700,000     Societe Generale, ETD
2.94%, 5/2/05
    97,700,000    
  500,000,000     Rabobank Nederland N.V., ETD
2.94%, 5/2/05
    500,000,000    
  Total Time Deposits (cost $597,700,000)           597,700,000    
  Total Investments (total cost $9,563,320,009) – 101.9%           11,852,388,573    
  Liabilities, net of Cash, Receivables and Other Assets – (1.9)%           (216,602,373 )  
  Net Assets – 100%         $ 11,635,786,200    

 

Summary of Investments by Country

Country   Value   % of Investment
Securities
 
Bermuda   $ 338,093,116       2.9 %  
Brazil     163,593,372       1.4 %  
Canada     192,189,954       1.6 %  
Cayman Islands     67,323,212       0.6 %  
Finland     138,651,109       1.2 %  
France     49,100,064       0.4 %  
Germany     27,197,261       0.2 %  
Israel     60,116,850       0.5 %  
Japan     63,189,474       0.5 %  
Netherlands     215,033,714       1.8 %  
Panama     111,242,815       0.9 %  
Switzerland     298,126,070       2.5 %  
United Kingdom     279,153,069       2.4 %  
United States††     9,849,378,493       83.1 %  
Total   $ 11,852,388,573       100.0 %  

 

††Includes Short-Term Securities and Other Securities (75.8% excluding Short-Term Securities and Other Securities)

Forward Currency Contracts, Open

Currency Sold and
Settlement Date
  Currency
Units Sold
  Currency
Value in $ U.S.
  Unrealized
Gain/(Loss)
 
British Pound 5/20/05     53,100,000     $ 101,158,213     $ (1,716,861 )  
British Pound 7/15/05     4,900,000       9,312,078       (90,769 )  
British Pound 8/19/05     26,900,000       51,055,061       (536,861 )  
Euro 7/15/05     74,300,000       95,825,659       269,295    
Euro 9/9/05     8,500,000       10,986,254       230,347    
Japanese Yen 7/15/05     2,160,000,000       20,746,469       (489,506 )  
Japanese Yen 9/9/05     1,505,000,000       14,537,586       90,211    
Swiss Franc 7/15/05     16,400,000       13,792,468       (70,634 )  
Swiss Franc 8/19/05     14,300,000       12,057,674       (101,153 )  
Total           $ 329,471,462     $ (2,415,931 )  

 

See Notes to Schedules of Investments and Financial Statements.

10 Janus Growth Funds April 30, 2005



Janus Enterprise Fund (unaudited)

Fund Snapshot

This growth fund pursues companies that have grown large enough to be well established but are small enough to still have room to grow.

Jonathan Coleman

portfolio manager

Performance Overview

During the six months ended April 30, 2005, as mid-cap stocks modestly outpaced large-cap names, Janus Enterprise Fund advanced 3.53%. Meanwhile, the Fund's benchmark, the Russell Midcap® Growth Index, returned 4.07%. The Fund's secondary benchmark, the S&P MidCap 400 Index, returned 5.68% for the same time period.

Contributing to the Fund's underperformance versus its benchmark were select holdings in the consumer durables and apparel industry, as well as the media sector, which experienced setbacks during the period. Bolstering the Fund's performance, however, was a smaller position than the Index in the technology hardware and equipment industry, which, as a group, turned in weak results during the period. The Fund's relative results were also boosted by the strong performance of a number of stock picks within the energy sector.

Strategy in This Environment

The broader market experienced positive and negative swings as investors focused on stubbornly high oil prices and the health of consumer spending. To cushion the moves, we adhered to a diversified strategy, spreading our investments across a broad spectrum of companies in many industries. Regardless of where a company is located or what its business is, we employ a consistent investment thesis that we hope will be more fully recognized by the market over time through an improving stock price. In short, we are looking for companies we believe have exciting growth opportunities, predictable revenue streams, expanding profit margins, and disciplined management of balance sheets.

Portfolio Composition

As of April 30, 2005, the Fund was 97.9% invested in equities. The Fund's 10 largest equity positions represented 22.9% of its total net assets and we held 2.1% in cash.

Select Energy, Computer and Healthcare Stocks Fueled Gains

Reviewing the leading positive contributors, broad strength in the energy markets helped elevate two oil and natural gas exploration and production holdings – EOG Resources and Murphy Oil. EOG has a substantial ownership stake in the large Barnett Shale field in Texas, while Murphy has built an impressive portfolio of oil production sites ranging from North America to Malaysia. Clearly, both stocks have been helped by the underlying trends in energy prices and will be exposed to any drops, but we've long been attracted to each company's continued development potential regardless of the commodity markets.

Technology concern Apple Computer continued on an iPod-driven roll, accentuated by smaller, lower-priced versions of the digital music device. We also started to see evidence that Apple's personal computer sales are indeed benefiting from a carry-over effect among some iPod consumers who may have newly discovered the company's other products.

Health plan operator Coventry Health Care also rose, reflecting a growing confidence that it can effectively integrate First Health Group, a fee-for-service plan it announced it was acquiring in late 2004. Having had time to analyze what Coventry purchased and assess the potential cost savings, we believe the deal may prove more beneficial than originally hoped.

Top 10 Equity Holdings – (% of Net Assets)

    April 30, 2005   October 31, 2004  
Nextel Partners, Inc. - Class A     2.8 %     1.0 %  
EOG Resources, Inc.     2.8 %     2.1 %  
Lamar Advertising Co.     2.7 %     2.9 %  
Kinder Morgan, Inc.     2.4 %     2.8 %  
Ball Corp.     2.2 %     2.8 %  
Celgene Corp.     2.1 %     1.6 %  
Fisher Scientific International, Inc.     2.1 %     1.9 %  
Berkshire Hathaway, Inc. - Class B     2.0 %     2.4 %  
T. Rowe Price Group, Inc.     2.0 %     2.0 %  
Invitrogen Corp.     1.8 %     1.3 %  

 

Janus Growth Funds April 30, 2005 11



Janus Enterprise Fund (unaudited)

Beleaguered Biotech, Auto Component and Semiconductor Holdings Weighed on Returns

A pair of unexpected events undermined performance from the biotechnology portion of the Fund. Neurocrine Biosciences fell as a technical glitch forced to re-file a Food and Drug Administration application for its promising insomnia drug Indiplon. The oversight pushed a potential release date back by at least six months, which gives a competing treatment that's just being rolled out additional time to enjoy first-mover status. While we are frustrated with the delay, we believe Neurocrine, along with its marketing partner Pfizer, will ultimately carve out a strong market position for Indiplon.

We also experienced disappointing performance from Pharmion Corp, a biotech company with a focus on oncology treatments. Pharmion declined significantly in the period as investors became concerned with the growth of Vidaza, Pharmion's approved product which targets myelodysplastic syndrome. We trimmed the position late in the period as we became less certain of Vidaza's future growth.

Auto component supplier Harman International declined significantly during the period after delivering strong performance in the past. Investors became concerned with increased competition in Harman's lucrative navigation and infotainment segment. We believe navigation and infotainment penetration will continue in automobiles and that Harman is poised to benefit from that increased adoption. We trimmed the position during the period at prices we felt reflected fair value for the stock.

Elsewhere, semiconductor chip maker Advanced Micro Devices ("AMD") also disappointed, as its flash memory division suffered amid the industry's over-capacity issues and deteriorating pricing power. AMD showed its commitment to focusing on its core processor business in April when it announced that it was spinning off its flash memory division. We believe the core processor business could be undervalued as it has recently gained market share against industry behemoth Intel.

Investment Strategy and Outlook

Given the underlying pressures of elevated oil prices and increasing interest rates, the market may be range-bound during the next couple of quarters. Furthermore, considering the outperformance of small- and mid-cap stocks over the past five or so years, a rotation back into large-cap stocks could affect demand for smaller issues. At the same time, value stocks have outperformed growth names, and that cycle could be ready to shift as well. Regardless of the larger trends, we'll continue to invest in a wide array of industries in an effort to reduce the Fund's downside risk while maintaining exposure to an assortment of stocks we believe have the potential for price appreciation.

Thank you for your investment in Janus Enterprise Fund.

Significant Areas of Investment – Fund vs. Index (% of Net Assets)

12 Janus Growth Funds April 30, 2005



(unaudited)

Performance

Average Annual Total Return – for the periods ended April 30, 2005

    Fiscal
Year-to-Date
  One
Year
  Five
Year
  Ten
Year
  Since
Inception*
 
Janus Enterprise Fund     3.53 %     7.58 %     (14.11 )%     7.98 %     10.34 %  
Russell Midcap® 
Growth Index
    4.07 %     7.05 %     (6.15 )%     9.38 %     10.14 %  
S&P MidCap 400 Index     5.68 %     9.74 %     6.78 %     14.46 %     14.08 %  
Lipper Ranking - based
on total returns for
Mid-Cap Growth Funds
    N/A       115/537       264/289       65/112       19/50    

 

Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 1-800-525-3713 or visit www.janus.com for performance current to the most recent month-end.

See Notes to Schedules of Investments for index definitions.

Total return includes reinvestment of dividends, distributions and capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The date of the Lipper ranking is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.

* The Fund's inception date – September 1, 1992

Fund Expenses

The example below shows you the ongoing costs (in dollars) of investing in your fund and allows you to compare these costs with those of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these charts.

Expense Example   Beginning Account Value
(11/1/04)
  Ending Account Value
(4/30/05)
  Expenses Paid During Period
(11/1/04-4/30/05)*
 
Actual   $ 1,000.00     $ 1,035.30     $ 5.05    
Hypothetical
(5% return before expenses)
  $ 1,000.00     $ 1,019.84     $ 5.01    

 

*Expenses are equal to the annualized expense ratio of 1.00%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

See "Explanations of Charts, Tables and Financial Statements."

The Fund's portfolio may differ significantly from the securities held in the indices. The indices are not available for direct investment; therefore their performance does not reflect the expenses associated with the active management of an actual portfolio.

There is no assurance that the investment process will consistently lead to successful investing.

Lipper Inc. - A Reuters Company, is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested.

Funds that emphasize investments in small-sized companies may experience greater price volatility.

Janus Growth Funds April 30, 2005 13



Janus Enterprise Fund

Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Common Stock - 97.9%                
  Advertising Agencies - 0.9%                
  1,135,025     Interpublic Group of Companies, Inc.#    $ 14,596,422    
  Advertising Sales - 2.7%                
  1,171,235     Lamar Advertising Co.*     43,780,763    
  Airlines - 1.0%                
  411,223     Ryanair Holdings PLC (ADR)*, #      16,510,603    
  Apparel Manufacturers - 0.4%                
  242,510     Coach, Inc.*     6,499,268    
  Applications Software - 1.4%                
  314,705     Citrix Systems, Inc.*     7,080,863    
  425,360     NAVTEQ Corp.*     15,491,611    
      22,572,474    
  Athletic Footwear - 0.6%            
  43,451     Puma A.G. Rudolf Dassler Sport     10,018,694    
  Audio and Video Products - 1.3%                
  270,825     Harman International Industries, Inc.     21,281,429    
  Automotive - Truck Parts and Equipment - Original - 0.2%                
  82,885     Lear Corp.     2,808,973    
  Building - Mobile Home and Manufactured Homes - 0.7%                
  407,325     Thor Industries, Inc.#      10,977,409    
  Building - Residential and Commercial - 1.6%                
  35,030     NVR, Inc.#      25,163,801    
  Building Products - Air and Heating - 1.3%                
  460,590     American Standard Companies, Inc.     20,592,979    
  Cable Television - 1.2%                
  667,660     EchoStar Communications Corp. - Class A*     19,328,757    
  Casino Services - 0.3%                
  258,290     Scientific Games Corp. - Class A*, #      5,545,486    
  Cellular Telecommunications - 2.8%                
  1,937,478     Nextel Partners, Inc. - Class A*, #      45,569,482    
  Commercial Services - 0.5%                
  291,987     Iron Mountain, Inc.*, #      8,672,014    
  Commercial Services - Finance - 3.2%                
  522,455     Jackson Hewitt Tax Service, Inc.#      9,623,621    
  204,098     Moody's Corp.     16,764,609    
  828,716     Paychex, Inc.     25,358,709    
      51,746,939    
  Computer Services - 0.5%            
  171,990     Affiliated Computer Services, Inc. - Class A*, #      8,198,763    
  Computers - 1.1%                
  505,230     Apple Computer, Inc.     18,218,594    
  Computers - Integrated Systems - 1.0%                
  298,740     National Instruments Corp.#      6,434,860    
  282,925     NCR Corp.*     9,336,525    
      15,771,385    
  Containers - Metal and Glass - 3.0%            
  888,855     Ball Corp.     35,109,772    
  504,060     Owens-Illinois, Inc.*     12,359,551    
      47,469,323    
  Cruise Lines - 1.0%            
  363,690     Royal Caribbean Cruises, Ltd.
(New York Shares)# 
    15,282,254    

 

Shares or Principal Amount       Value  
  Disposable Medical Products - 0.5%                
  111,750     C.R. Bard, Inc.   $ 7,953,248    
  Distribution/Wholesale - 0.8%                
  298,315     United Stationers, Inc.#      12,582,927    
  Diversified Operations - 0.8%                
  339,025     Pentair, Inc.     13,486,415    
  Diversified Operations-Commercial Services - 0.9%                
  736,505     Cendant Corp.     14,663,815    
  Electric Products - Miscellaneous - 1.6%                
  684,250     AMETEK, Inc.     25,912,548    
  Electronic Components - Semiconductors - 3.4%                
  1,428,350     Advanced Micro Devices, Inc.*, #      20,325,420    
  248,630     Altera Corp.*     5,154,100    
  665,380     ATI Technologies, Inc. (New York Shares)*, #      9,847,624    
  455,405     International Rectifier Corp.*, #      19,372,928    
      54,700,072    
  Electronic Design Automation - 0.6%            
  740,670     Cadence Design Systems, Inc.*, #      10,369,380    
  Entertainment Software - 1.1%                
  530,926     Activision, Inc.*     7,677,190    
  181,835     Electronic Arts, Inc.*     9,708,171    
      17,385,361    
  Fiduciary Banks - 1.5%            
  253,462     Investors Financial Services Corp.#      10,632,731    
  280,590     Northern Trust Corp.     12,634,968    
      23,267,699    
  Finance - Other Services - 0.9%            
  74,910     Chicago Mercantile Exchange Holdings, Inc.#      14,646,403    
  Food - Dairy Products - 1.7%                
  780,772     Dean Foods Co.*     26,827,326    
  Hospital Beds and Equipment - 0.9%                
  222,560     Kinetic Concepts, Inc.*     13,676,312    
  Hotels and Motels - 2.3%                
  234,490     Marriott International, Inc. - Class A     14,714,248    
  417,750     Starwood Hotels & Resorts Worldwide, Inc.     22,700,534    
      37,414,782    
  Human Resources - 1.7%            
  540,525     Manpower, Inc.     20,837,239    
  271,105     Robert Half International, Inc.     6,728,826    
      27,566,065    
  Independent Power Producer - 1.0%            
  1,627,525     Reliant Energy, Inc.*     16,551,929    
  Industrial Audio and Video Products - 0.1%                
  112,885     Dolby Laboratories, Inc. - Class A*     2,308,498    
  Industrial Automation and Robotics - 0.5%                
  164,585     Rockwell Automation, Inc.     7,608,765    
  Instruments - Scientific - 2.1%                
  555,127     Fisher Scientific International, Inc.*     32,963,441    
  Insurance Brokers - 0.5%                
  220,520     Willis Group Holdings, Ltd.     7,376,394    
  Internet Infrastructure Software - 0.4%                
  929,120     TIBCO Software, Inc.*     6,633,917    

 

See Notes to Schedules of Investments and Financial Statements.

14 Janus Growth Funds April 30, 2005



Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Internet Security - 0.7%            
  511,180     Check Point Software Technologies, Ltd.
(New York Shares)*
  $ 10,709,221    
  Investment Management and Advisory Services - 2.0%            
  566,865     T. Rowe Price Group, Inc.#      31,273,942    
  Leisure and Recreation Products - 0.7%            
  268,405     Brunswick Corp.#      11,273,010    
  Machinery - Construction and Mining - 0.9%            
  398,250     Terex Corp.     14,886,585    
  Medical - Biomedical and Genetic - 3.9%            
  900,230     Celgene Corp.*     34,127,718    
  384,380     Invitrogen Corp.*, #      28,163,523    
      62,291,241    
  Medical - Drugs - 0.9%            
  119,655     Merck KGaA     9,130,535    
  229,834     Pharmion Corp.*     5,309,165    
      14,439,700    
  Medical - Generic Drugs - 0.7%            
  211,770     Barr Pharmaceuticals, Inc.*, #      10,982,392    
  Medical - HMO - 1.3%            
  300,352     Conventry Health Care, Inc.*     20,553,087    
  Medical - Nursing Homes - 0.3%            
  125,315     Manor Care, Inc.     4,179,255    
  Medical Instruments - 1.5%            
  189,155     Intuitive Surgical, Inc.*, #      8,122,316    
  407,665     St. Jude Medical, Inc.*     15,911,165    
      24,033,481    
  Medical Products - 1.1%            
  89,000     Synthes, Inc.     10,092,345    
  233,385     Varian Medical Systems, Inc.*, #      7,874,410    
      17,966,755    
  Miscellaneous Manufacturing - 0.9%            
  8,504,360     FKI PLC     15,148,436    
  Motion Pictures and Services - 1.0%            
  96,715     DreamWorks Animation SKG, Inc. -
Class A*
    3,626,813    
  1,208,450     Lions Gate Entertainment Corp.# 
(New York Shares)*
    11,673,627    
      15,300,440    
  Multi-Line Insurance - 1.1%            
  556,875     Assurant, Inc.#      18,426,994    
  Oil Companies - Exploration and Production - 4.2%            
  955,220     EOG Resources, Inc.     45,420,710    
  251,660     Murphy Oil Corp.     22,420,389    
      67,841,099    
  Optical Supplies - 0.7%            
  115,250     Alcon, Inc. (New York Shares)     11,179,250    
  Pipelines - 2.4%            
  498,086     Kinder Morgan, Inc.     38,083,655    
  Property and Casualty Insurance - 0.8%            
  397,800     W. R. Berkley Corp.     12,928,500    
  Publishing - Newspapers - 0.5%            
  112,880     McClatchy Co. - Class A#      7,980,616    
  Publishing - Periodicals - 0.5%            
  320,115     Dex Media, Inc.#      7,010,519    

 

Shares or Principal Amount       Value  
  Radio - 0.1%            
  62,495     Westwood One, Inc.   $ 1,143,659    
  Recreational Vehicles - 0.7%            
  197,885     Polaris Industries, Inc.#      11,390,261    
  Reinsurance - 2.0%            
  11,441     Berkshire Hathaway, Inc. - Class B*     32,012,032    
  Respiratory Products - 0.9%            
  230,815     Respironics, Inc.*     14,585,200    
  Retail - Apparel and Shoe - 1.1%            
  212,420     Abercrombie & Fitch Co. - Class A#      11,460,059    
  132,745     Urban Outfitters, Inc.*, #      5,880,604    
      17,340,663    
  Retail - Auto Parts - 0.9%            
  279,216     Advance Auto Parts, Inc.*     14,896,174    
  Retail - Office Supplies - 1.3%            
  1,118,815     Staples, Inc.     21,335,802    
  Retail - Restaurants - 1.6%            
  562,796     Yum! Brands, Inc.     26,428,900    
  Schools - 1.8%            
  263,784     Apollo Group, Inc. - Class A*     19,024,102    
  90,535     Strayer Education, Inc.#      9,712,595    
      28,736,697    
  Semiconductor Components/Integrated Circuits - 2.1%            
  352,845     Linear Technology Corp.     12,610,680    
  617,665     Marvell Technology Group, Ltd.*     20,679,425    
      33,290,105    
  Semiconductor Equipment - 1.3%            
  258,550     KLA-Tencor Corp.     10,088,621    
  433,920     Novellus Systems, Inc.*     10,166,746    
      20,255,367    
  Telecommunication Services - 1.0%            
  611,140     Amdocs, Ltd. (New York Shares)*     16,323,549    
  Television - 0.9%            
  571,573     Univision Communications, Inc. - Class A*, #      15,026,654    
  Textile-Home Furnishings - 1.0%            
  200,485     Mohawk Industries, Inc.*, #      15,599,738    
  Therapeutics - 1.9%            
  366,228     Gilead Sciences, Inc.*     13,587,059    
  486,527     Neurocrine Biosciences, Inc.*     17,008,984    
      30,596,043    
  Toys - 1.3%            
  1,044,122     Marvel Enterprises, Inc.*     20,464,791    
  Transportation - Marine - 0.5%            
  186,805     Alexander & Baldwin, Inc.#      7,608,568    
  Transportation - Railroad - 0.7%            
  183,385     Canadian National Railway Co.
(New York Shares)
    10,491,456    
  Transportation - Services - 0.7%            
  226,860     Expeditors International of Washington, Inc.#      11,141,095    
  Total Common Stock (cost $1,155,848,142)           1,569,656,041    

 

See Notes to Schedules of Investments and Financial Statements.

Janus Growth Funds April 30, 2005 15



Janus Enterprise Fund

Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Other Securities - 7.6%                
  122,311,744     State Street Navigator Securities Lending
Prime Portfolio† (cost $122,311,744)
  $ 122,311,744    
  Repurchase Agreement - 0.3%                
$ 4,600,000     Bear Stearns & Company, Inc., 3.00%
dated 4/29/05, maturing 5/2/05
to be repurchased at $4,601,150
collateralized by $5,308,047
in U.S. Government Agencies
0% - 7.00%, 2/1/11 - 4/20/35
with a value of $4,692,028
(cost $4,600,000)
   






4,600,000
   
  Time Deposit - 1.8%                
  29,300,000     Societe Generale, ETD
2.94%, 5/2/05 (cost $29,300,000)
    29,300,000    
  Total Investments (total cost $(1,312,059,886) – 107.6%           1,725,867,785    
  Liabilities, net of Cash, Receivables and Other Assets – (7.6)%           (122,576,769 )  
  Net Assets – 100%         $ 1,603,291,016    

 

Summary of Investments by Country

Country   Value   % of Investment
Securities
 
Bermuda   $ 28,055,819       1.6 %  
Canada     32,012,707       1.9 %  
Germany     19,149,229       1.1 %  
Ireland     16,510,603       1.0 %  
Israel     10,709,221       0.6 %  
Liberia     15,282,254       0.9 %  
Switzerland     11,179,250       0.6 %  
United Kingdom     31,471,985       1.8 %  
United States††     1,561,496,717       90.5 %  
Total   $ 1,725,867,785       100.0 %  

 

††Includes Short-Term Securities and Other Securities (81.4% excluding Short-Term Securities and Other Securities)

See Notes to Schedules of Investments and Financial Statements.

16 Janus Growth Funds April 30, 2005



Janus Mercury Fund (unaudited)

Fund Snapshot

This diversified growth fund typically pursues larger companies believed to be well-positioned for future growth.

David Corkins

portfolio manager

Performance Overview

Over the course of the six-month period ended April 30, 2005, investors' optimism, stemming from a quick resolution to the U.S. presidential election, diminished in the wake of steeper energy prices and higher interest rates. Amid the resulting downward pressure on stocks, Janus Mercury Fund posted a 3.48% gain, topping the 1.14% return generated by its benchmark, the Russell 1000® Growth Index. The Fund's secondary benchmark, the S&P 500®, returned 3.28% for the same time period.

The Fund's outperformance versus its benchmark is largely due to our research team's ability to uncover a diverse group of opportunities in a variety of different market sectors.

Strategy in This Environment

During a period characterized by economic uncertainty and market volatility, one of my goals in managing the Fund remained finding good investment opportunities across many different areas of the market. What's more, I remain confident in the current mix of companies held in the Fund, as our rigorous, research-driven investing process suggests the market will ultimately recognize their value.

Portfolio Composition

As of April 30, 2005, equities accounted for 94.6% of the Fund's total net assets, including 20.6% of total net assets in foreign holdings. The Fund's 10 largest equity holdings represented 30.3% of its total net assets and a cash position comprised 5.4% of total net assets.

Strong Performers Found in Media, Biotech and Manufacturing Sectors

Generally, I'll commit about a quarter of the Fund's resources to so-called "fallen-growth" names – former growth companies that are either restructuring or refocusing their businesses. By definition, these stocks require considerable patience, but can generate significant rewards. An example is Liberty Media, which was among the Fund's strongest positive contributors to performance. The media conglomerate, which owns stakes in hot cable properties such as News Corp., QVC and Starz Encore, long proved too difficult to value due to its myriad assets and ownership structures. The stock got a lift late in the period when management announced plans to spin off Ascent Media and 50% of Discovery Communications. Liberty remains committed to creating value for its shareholders by continuing to focus on its core businesses. Because of this we are confident the company will continue to reward us in the future.

While one quarter of the Fund is invested in "fallen-growth" names, the remaining three quarters of the Fund is typically invested in more traditional growth names. One such example is biopharmaceutical firm Celgene, another strong contributor for the period. Its stock moved ahead in January on news that the company's fourth-quarter profits more than doubled due to increased sales of Thalomid, a treatment used to help heal skin lesions caused by leprosy and more recently approved for the treatment of multiple myeloma, a common cancer of the blood. An added bounce occurred after Celgene disclosed that its new drug Revlimid, another multiple myeloma therapy, exceeded expectations in Phase III clinical trials.

Top 10 Equity Holdings – (% of Net Assets)

    April 30, 2005   October 31, 2004  
Liberty Media Corp. - Class A     4.2 %     4.5 %  
Berkshire Hathaway, Inc. - Class B     3.3 %     3.8 %  
Roche Holding A.G.     3.2 %     3.7 %  
Tyco International, Ltd.
(New York Shares)
    3.1 %     4.0 %  
Yahoo!, Inc.     3.1 %     3.2 %  
UnitedHealth Group, Inc.     3.1 %     3.0 %  
JP Morgan Chase & Co.     2.9 %     2.9 %  
Texas Instruments, Inc.     2.6 %     2.4 %  
Time Warner, Inc.     2.4 %     3.0 %  
Canadian National Railway Co.
(New York Shares)
    2.4 %     3.2 %  

 

Janus Growth Funds April 30, 2005 17



Janus Mercury Fund (unaudited)

Likewise, Starwood Hotels & Resorts rallied as supply constraints in the hotel sector, in combination with the increased demand from foreigners traveling to the United States and an improving economy, had led to an imbalance and allowed operators to raise prices. We are pleased to see that Starwood's 700-plus hotels, operated under several brand names including St. Regis, Sheraton and Westin, are benefiting from the increasingly higher room rates that these factors have created.

Additionally, diversified manufacturer American Standard performed well. Best known for its bathroom and kitchen fixtures, the company also produces air conditioning equipment and vehicle control systems. A stock we view as a "later-cycle" play, or a name that performs favorably when the economy is well into a recovery, American Standard's significant exposure to the commercial real estate market positions it well to continue to benefit in a healthy economy.

Pullback in Consumer Interests Weighed, as did Drug Sector Disappointment

It's worth noting that we haven't found anything fundamentally wrong with the Fund's laggards. Rather, certain holdings that were recent strong contributors to the Fund's performance experienced pullbacks while the market focused on shorter-term issues.

Most notably, high-end audio and automobile navigation system developer Harman International Industries dropped following a lengthy run of outperformance. Competitive pressures increased, which unsettled some observers, but we believe the firmly entrenched market leader is well equipped to endure this rocky stretch. Helping provide reassurance was management's recent decision to restart a stock repurchase plan. Online auctioneer eBay also dropped from its 2004 peak as questions over slowing domestic growth arose. The company's international prospects appear bright, however, which reinforce our long-term mindset.

Elsewhere, drugmaker Forest Laboratories faltered in the wake of a Food and Drug Administration decision to deny the company's application to market its flagship Lexapro treatment for social anxiety disorder and panic disorder. We reduced our position in the stock but continue to believe in its long-term prospects.

Investment Strategy and Outlook

Although data on the economy remains mixed, the environment for investing is generally positive. The job market, the biggest drag on economic growth until recently, continued to pick up, and the unemployment rate stabilized at 5.2%. Meanwhile, although soaring gas prices dented their confidence, Americans continued to spend freely on new cars and homes, taking advantage of special auto financing and mortgage interest rates that had yet to feel the effects of the Fed's persistent increase in short-term interest rates. We believe it is important to remain diligent and cautious, specifically with regard to rising interest rates and their impact on consumer spending, widely regarded as the engine of economic growth. As always, my team and I will comb every corner of the market for companies that we believe can further enhance diversification as they help us achieve an optimal balance between risk and reward.

Thank you for your investment in Janus Mercury Fund.

Significant Areas of Investment - Fund vs. Index (% of Net Assets)

18 Janus Growth Funds April 30, 2005



(unaudited)

Performance

Average Annual Total Return – for the periods ended April 30, 2005

    Fiscal
Year-to-Date
  One
Year
  Five
Year
  Ten
Year
  Since
Inception*
 
Janus Mercury Fund     3.48 %     3.75 %     (12.56 )%     10.13 %     12.19 %  
Russell 1000® 
Growth Index
    1.14 %     0.40 %     (10.75 )%     7.71 %     8.24 %  
S&P 500® Index     3.28 %     6.34 %     (2.94 )%     10.26 %     10.38 %  
Lipper Ranking - based
on total returns for
Large-Cap Growth Funds
    N/A       119/659       344/420       9/137       1/85     

 

Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 1-800-525-3713 or visit www.janus.com for performance current to the most recent month-end.

See Notes to Schedules of Investments for index definitions.

Total return includes reinvestment of dividends, distributions and capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The date of the Lipper ranking is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.

* The Fund's inception date – May 3, 1993

Fund Expenses

The example below shows you the ongoing costs (in dollars) of investing in your fund and allows you to compare these costs with those of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these charts.

Expense Example   Beginning Account Value
(11/1/04)
  Ending Account Value
(4/30/05)
  Expenses Paid During Period
(11/1/04-4/30/05)*
 
Actual   $ 1,000.00     $ 1,034.80     $ 4.84    
Hypothetical
(5% return before expenses)
  $ 1,000.00     $ 1,020.03     $ 4.81    

 

*Expenses are equal to the annualized expense ratio of 0.96%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

See "Explanations of Charts, Tables and Financial Statements."

The Fund's portfolio may differ significantly from the securities held in the indices. The indices are not available for direct investment; therefore their performance does not reflect the expenses associated with the active management of an actual portfolio.

There is no assurance that the investment process will consistently lead to successful investing.

Lipper Inc. - A Reuters Company, is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested.

Effective February 25, 2005, Janus Mercury Fund changed its primary benchmark from the S&P 500® Index to the Russell 1000® Growth Index. The new primary benchmark will provide a more appropriate comparison to the Fund's investment style. The Fund will retain the S&P 500® Index as a secondary index.

Janus Growth Funds April 30, 2005 19



Janus Mercury Fund

Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Common Stock - 94.2%                
  Advertising Sales - 0.7%                
  857,410     Lamar Advertising Co.*   $ 32,049,986    
  Aerospace and Defense - 1.4%                
  988,000     Lockheed Martin Corp.     60,218,600    
  Agricultural Operations - 0.2%                
  427,225     Delta and Pine Land Co.#      10,766,070    
  Applications Software - 2.1%                
  3,646,115     Microsoft Corp.     92,246,710    
  Athletic Footwear - 1.5%                
  867,800     NIKE, Inc. - Class B     66,655,718    
  Audio and Video Products - 0.7%                
  367,850     Harman International Industries, Inc.#      28,905,653    
  Automotive - Cars and Light Trucks - 0.9%                
  891,523     BMW A.G.**,#      37,785,780    
  Broadcast Services and Programming - 5.1%                
  1,241,110     Clear Channel Communications, Inc.     39,641,053    
  18,230,743     Liberty Media Corp. - Class A*     183,036,659    
      222,677,712    
  Building Products - Air and Heating - 0.5%            
  456,115     American Standard Companies, Inc.     20,392,902    
  Cable Television - 3.3%                
  2,372,905     Comcast Corp. - Special Class A*     75,292,275    
  721,465     EchoStar Communications Corp. - Class A*     20,886,412    
  1,186,050     Liberty Media International, Inc. - Class A*     49,185,494    
      145,364,181    
  Cellular Telecommunications - 0.6%            
  1,023,240     Nextel Partners, Inc. - Class A*,#      24,066,605    
  Chemicals - Specialty - 1.8%                
  75,454     Givaudan S.A.**,#      47,476,324    
  244,497     Syngenta A.G.*,**     25,289,755    
  351,670     Syngenta A.G. (ADR)*,**,#      7,290,119    
      80,056,198    
  Computers - 1.3%            
  1,580,805     Dell, Inc.*     55,059,438    
  Cosmetics and Toiletries - 3.0%                
  1,272,060     Avon Products, Inc.     50,984,165    
  1,457,690     Procter & Gamble Co.     78,933,913    
      129,918,078    
  Data Processing and Management - 0.7%            
  662,510     Automatic Data Processing, Inc.#      28,779,434    
  Diversified Operations - 6.6%                
  667,575     General Electric Co.     24,166,215    
  857,522     Louis Vuitton Moet Hennessy S.A.**,#      60,592,921    
  439,855     Pentair, Inc.#      17,497,432    
  3,155,724     Smiths Group PLC     51,740,017    
  4,299,685     Tyco International, Ltd. (New York Shares)     134,623,136    
      288,619,721    
  E-Commerce/Products - 0.2%            
  329,460     Amazon.com, Inc.*,#      10,661,326    
  E-Commerce/Services - 0.3%                
  422,135     eBay, Inc.*     13,394,344    
  Electric Products - Miscellaneous - 2.3%                
  215,056     Samsung Electronics Company, Ltd.**     98,676,749    

 

Shares or Principal Amount       Value  
  Electronic Components - Semiconductors - 2.6%            
  4,482,245     Texas Instruments, Inc.   $ 111,876,835    
  Entertainment Software - 1.0%            
  834,080     Electronic Arts, Inc.*,#      44,531,531    
  Finance - Credit Card - 0.9%            
  729,205     American Express Co.     38,429,104    
  Finance - Investment Bankers/Brokers - 5.0%            
  887,163     Citigroup, Inc.     41,661,174    
  430,265     Goldman Sachs Group, Inc.     45,947,999    
  3,590,735     JP Morgan Chase & Co.     127,435,186    
      215,044,359    
  Finance - Mortgage Loan Banker - 1.3%            
  268,990     Fannie Mae     14,512,011    
  662,865     Freddie Mac     40,779,454    
      55,291,465    
  Finance - Other Services - 0.2%            
  33,405     Chicago Mercantile Exchange Holdings, Inc.#      6,531,346    
  Food - Retail - 0.8%            
  359,800     Whole Foods Market, Inc.#      35,879,256    
  Hospital Beds and Equipment - 0.6%            
  412,595     Kinetic Concepts, Inc.*,#      25,353,963    
  Hotels and Motels - 2.3%            
  1,867,960     Starwood Hotels & Resorts Worldwide, Inc.     101,504,946    
  Independent Power Producer - 0.5%            
  2,241,410     Reliant Energy, Inc.*,#      22,795,140    
  Internet Security - 0.4%            
  745,130     Check Point Software Technologies, Ltd.
(New York Shares)*
    15,610,474    
  Medical - Biomedical and Genetic - 0.8%            
  954,150     Celgene Corp.*     36,171,827    
  Medical - Drugs - 6.3%            
  908,305     Eli Lilly and Co.     53,108,593    
  808,320     Forest Laboratories, Inc.*     28,840,858    
  1,149,986     Roche Holding A.G.*,**,#      139,119,016    
  607,481     Sanofi-Aventis**,#      53,786,483    
      274,854,950    
  Medical - HMO - 4.9%            
  488,715     Aetna, Inc.     35,857,020    
  1,409,600     UnitedHealth Group, Inc.     133,221,295    
  349,905     WellPoint, Inc.*     44,700,364    
      213,778,679    
  Medical - Hospitals - 0.3%            
  245,666     LifePoint Hospitals, Inc.*,#      10,919,854    
  Motion Pictures and Services - 0.3%            
  1,308,065     Lions Gate Entertainment Corp.
(New York Shares)*,# 
    12,635,908    
  Multimedia - 3.4%            
  6,225,244     Time Warner, Inc.*     104,646,352    
  1,618,345     Walt Disney Co.     42,724,308    
      147,370,660    
  Networking Products - 1.7%            
  4,370,745     Cisco Systems, Inc.*     75,526,474    
  Oil - Field Services - 1.0%            
  871,655     BJ Services Co.#      42,493,181    

 

See Notes to Schedules of Investments and Financial Statements.

20 Janus Growth Funds April 30, 2005



Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Oil and Gas Drilling - 0.5%                
  629,280     Global Santa Fe Corp.#    $ 21,143,808    
  Oil Companies - Integrated - 1.1%                
  802,600     BP PLC (ADR)     48,878,340    
  Pharmacy Services - 2.0%                
  2,221,195     Caremark Rx, Inc.*     88,958,860    
  Printing - Commercial - 0.4%                
  541,700     R.R. Donnelley & Sons Co.#      17,827,347    
  Reinsurance - 3.3%                
  51,005     Berkshire Hathaway, Inc. - Class B*,#      142,712,500    
  Retail - Building Products - 0.7%                
  568,330     Lowe's Companies, Inc.#      29,615,676    
  Retail - Consumer Electronics - 0.9%                
  767,965     Best Buy Company, Inc.     38,659,358    
  Retail - Discount - 0.5%                
  467,750     Wal-Mart Stores, Inc.     22,049,735    
  Retail - Office Supplies - 1.4%                
  3,143,857     Staples, Inc.     59,953,353    
  Retail - Pet Food and Supplies - 0.4%                
  684,245     PETsMART, Inc.#      18,235,129    
  Savings/Loan/Thrifts - 0.5%                
  1,784,636     NewAlliance Bancshares, Inc.#      23,378,732    
  Semiconductor Components/Integrated Circuits - 1.8%                
  2,032,060     Maxim Integrated Products, Inc.     75,999,044    
  Steel - Producers - 0.8%                
  203,060     POSCO**     36,799,797    
  Telecommunication Equipment - Fiber Optics - 0.8%                
  2,663,735     Corning, Inc.*     36,626,356    
  Television - 0.7%                
  1,088,365     Univision Communications, Inc. - Class A*,#      28,613,116    
  Therapeutics - 0.3%                
  360,835     Neurocrine Biosciences, Inc.*     12,614,792    
  Toys - 0.5%                
  1,153,187     Marvel Enterprises, Inc.*     22,602,465    
  Transportation - Railroad - 2.9%                
  1,816,085     Canadian National Railway Co.
(New York Shares)
    103,898,223    
  333,467     Union Pacific Corp.     21,318,545    
      125,216,768    
  Transportation - Services - 2.8%            
  854,990     C.H. Robinson Worldwide, Inc.#      44,117,484    
  911,955     FedEx Corp.#      77,470,577    
      121,588,061    

 

Shares or Principal Amount       Value  
  Web Portals/Internet Service Providers - 3.1%            
  3,899,445     Yahoo!, Inc.*   $ 134,569,847    
  Wireless Equipment - 1.3%            
  3,589,655     Motorola, Inc.     55,065,308    
  Total Common Stock (cost $3,183,612,561)           4,094,003,549    
  Preferred Stock - 0.4%            
  U.S. Government Agency - 0.4%            
  286,800     Fannie Mae, 7.00% (cost $14,340,000)     15,926,377    
  Other Securities - 8.3%            
  359,445,698     State Street Navigator Securities Lending
Prime Portfolio† (cost $359,445,698)
    359,445,698    
  Time Deposits - 6.2%            
$ 69,700,000     Rabobank Nederland N.V., ETD
2.94%, 5/2/04
    69,700,000    
  200,000,000     Societe Generale, ETD
2.94%, 5/2/04
    200,000,000    
  Total Time Deposits (cost $269,700,000)           269,700,000    
  Total Investments (total cost $3,827,098,259) – 109.1%           4,739,075,624    
  Liabilities, net of Cash, Receivables and Other Assets – (9.1)%           (396,775,357 )  
  Net Assets – 100%         $ 4,342,300,267    

 

Summary of Investments by Country

Country   Value   % of Investment
Securities
 
Bermuda   $ 134,623,136       2.8 %  
Canada     116,534,131       2.5 %  
Cayman Islands     21,143,808       0.4 %  
France     114,379,404       2.4 %  
Germany     37,785,780       0.8 %  
Israel     15,610,474       0.3 %  
South Korea     135,476,546       2.9 %  
Switzerland     219,175,214       4.7 %  
United Kingdom     100,618,357       2.1 %  
United States††     3,843,728,774       81.1 %  
Total   $ 4,739,075,624       100.0 %  

 

††Includes Short-Term Securities and Other Securities (67.8% excluding Short-Term Securities and Other Securities)

Forward Currency Contracts, Open

Currency Sold and
Settlement Date
  Currency
Units Sold
  Currency
Value in $ U.S.
  Unrealized
Gain/(Loss)
 
Euro 7/15/05     13,400,000     $ 17,282,151     $ 31,989    
Euro 8/19/05     15,300,000       19,758,374       (1,484 )  
Euro 9/9/05     6,080,000       7,858,402       164,765    
South Korean Won
5/27/05
    6,700,000,000       6,718,903       (700,488 )  
South Korean Won
11/14/05
    29,350,000,000       29,452,728       (219,660 )  
South Korean Won
11/30/05
    9,300,000,000       9,334,033       (66,469 )  
Swiss Franc 7/15/05     25,700,000       21,613,806       (134,228 )  
Swiss Franc 8/19/05     42,900,000       36,173,023       (303,458 )  
Total           $ 148,191,420     $ (1,229,033 )  

 

See Notes to Schedules of Investments and Financial Statements.

Janus Growth Funds April 30, 2005 21



Janus Olympus Fund (unaudited)

Fund Snapshot

This growth fund invests in what we believe are the #1 or #2 market leaders in their respective industries.

Claire Young

portfolio manager

Performance Overview

Janus Olympus Fund gained 2.51% for six months ended April 30, 2005, versus its benchmark, the Russell 1000® Growth Index, which returned 1.14%. The Fund's secondary benchmark, the S&P 500® Index, returned 3.28% for the same time period.

Portfolio Positioning in a Challenging Economic Environment

Over the past six months, the U.S. economy saw a number of gyrations. Gross domestic product ("GDP") in the fourth quarter of 2004 was much better than expected, but GDP in the first quarter of 2005 was weaker than forecasted. Oil prices fluctuated widely, hitting a peak of $57 in February before declining more recently. The Federal Reserve raised interest rates over a series of meetings; however, bond and mortgage rates remained stubbornly low. The consumer continued to surprise skeptics by spending heartily on new homes, cars, and other goods despite higher gasoline prices and tepid job growth; while corporate America was stingy in capital outlays.

Given the continued lack of corporate capital spending, weak job creation, and potential negative impact higher interest rates may have on the economy, my strategy over the past six months was to increase portfolio exposure to growth companies that are less reliant upon the economy and away from more cyclical, industrial stocks. For example, healthcare, which had been approximately 20% of the Fund's total assets at the beginning of the period, comprised over 30% of total assets by the end of the period. In looking at the strongest positive contributors to performance, 9 out of 10 stocks were in areas that were generally less economically sensitive.

Strong Performers Include Health-Related and Financial Services Companies

As the heaviest weighting within our portfolio, I was quite pleased with the performance of several healthcare stocks in the period. Genentech, a bio-technology firm with a focus on cancer products, led our list of winners during the period. The company completed several studies with favorable outcomes, including the use of Avastin for extending survival among patients inflicted with non-small cell lung cancer and Herceptin in the adjuvant breast cancer setting. We believe these drugs will provide long-term growth of revenue and profits, while enabling Genentech to reinvest in research for future therapies. Roche Holdings, a Swiss pharmaceutical company which owns 56% of Genentech, was also among our top performers, as it holds the European and Japanese distribution rights to these drugs.

Elsewhere in healthcare, UnitedHealth Group continued to have a positive impact on the Fund. The company capitalizes on the increasing utilization of healthcare and corporate America's desire to share more healthcare costs with its employees. Pricing has been strong for managed care as increases have been passed on in the form of higher copays and tiered drug pricing, while underlying costs have been very tightly controlled. Finally, we anticipate that UnitedHealth's merger with Oxford Health Plans should enable UnitedHealth to gain a market-leading position in New England and cut costs as the company's call centers and information systems are consolidated.

In another take on healthy living, Whole Foods Markets, the leading organic and natural foods retailer, continued to be one of the most exciting and best-performing investments in the Fund. The company is refining its store model to a larger format with unique fresh food offerings that generate excitement and intense loyalty among its customers. These new stores are generating more sales per square foot than the smaller stores and are providing better-than-expected same-store sales as they mature. With

Top 10 Equity Holdings – (% of Net Assets)

    April 30, 2005   October 31, 2004  
Yahoo!, Inc.     3.3 %     3.6 %  
Abercrombie & Fitch Co. - Class A     3.1 %        
UnitedHealth Group, Inc.     2.9 %     2.1 %  
Roche Holding A.G.     2.7 %     2.0 %  
Celgene Corp.     2.7 %     1.6 %  
Whole Foods Market, Inc.     2.5 %     1.6 %  
Four Seasons Hotels, Inc.     2.3 %     2.4 %  
Cisco Systems, Inc.     1.9 %     1.7 %  
Research In Motion, Ltd.
(New York Shares)
    1.9 %        
Alcon, Inc. (New York Shares)     1.9 %     1.2 %  

 

22 Janus Growth Funds April 30, 2005



(unaudited)

only 168 stores nationwide, I believe Whole Foods has tremendous growth potential over the next several years as the company penetrates new markets and continues to invest in existing locations.

In the financial services sector, two holdings were among our top ten contributors. Deutsche Boerse, a European electronic trading platform, announced its intent to purchase the London Stock Exchange. While the transaction subsequently failed to be approved by shareholders, the merger served as a catalyst for senior management to re-evaluate its capital structure and redeploy its substantial cash position to shareholders. Chicago Mercantile Exchange ("CME"), another electronic trading platform – this time for options and futures contracts – was also a winner. The company brings together buyers and sellers to trade products in interest rates, stock indexes, foreign exchange and commodities. Due to the volatility of the financial and commodity markets, CME experienced strong volume increases as investors sought to hedge their exposures.

A Series of Unfortunate Events and Competitive Fears Detract From the Fund's Results

Healthcare stocks, while important to positive results, also provided disappointment during the period. The largest performance detractor was Elan Plc. The biopharmaceutical firm's shares plunged after the company announced it was withdrawing Tysabri, a multiple sclerosis drug, from the market after two patients taking the drug succumbed to a rare brain infection. We had estimated the drug's potential to be over $2 billion prior to this event, but elected to liquidate the position as the investment thesis for Elan disappeared.

Another biopharmaceutical company, Neurocrine Biosciences, also negatively impacted the Fund over the past six months. Neurocrine has a unique drug compound for insomnia, Indiplon, which was submitted to the Food and Drug Administration ("FDA") for approval in October. In December, the FDA refused the application due to electronic formatting issues, causing a six-month delay in the approval process as the company had to resubmit the application. As we still believe in the potential of Indiplon as a non-addictive insomnia solution for sleep initiation, middle-of-the-night dosing, and sleep maintenance, we are maintaining a stake in the company.

Competitive fears in two different industries also hurt our performance. High-end stereo and infotainment equipment maker Harman International Industries declined on news that Mercedes-Benz had awarded a car-systems contract to a competitor. Also, reports of weak U.S. automobile sales weighed on the shares. McAfee Inc., an anti-virus and security software vendor, suffered when Microsoft announced a series of acquisitions and new product introductions aimed at the company's offerings.

Investment Strategy and Outlook

Looking ahead, in my opinion the economy is being pressured by several factors: Corporate profits may be under pressure due to rising interest rates and raw material costs; record consumer debt levels and high gasoline prices may finally take a toll on consumer spending; and tepid economic news from Europe and Japan could crimp U.S. export demand. In this environment, I expect to see the market gravitate toward companies that provide strong earnings despite these headwinds, so the Fund remains invested predominantly in stocks that we believe can grow organically and return shareholder value through intelligent capital allocation.

Thank you for your confidence and investment in Janus Olympus Fund.

Significant Areas of Investment – Fund vs. Index (% of Net Assets)

Janus Growth Funds April 30, 2005 23



Janus Olympus Fund (unaudited)

Performance

Average Annual Total Return – for the periods ended April 30, 2005

    Fiscal
Year-to-Date
  One
Year
  Five
Year
  Since
Inception*
 
Janus Olympus Fund     2.51 %     4.17 %     (12.65 )%     10.30 %  
Russell 1000® Growth Index     1.14 %     0.40 %     (10.75 )%     5.94 %  
S&P 500® Index     3.28 %     6.34 %     (2.94 )%     8.71 %  
Lipper Ranking - based on total
returns for Multi-Cap Growth Funds
    N/A       155/421       192/242       13/90    

 

Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 1-800-525-3713 or visit www.janus.com for performance current to the most recent month-end.

See Notes to Schedules of Investments for index definitions.

Total return includes reinvestment of dividends, distributions and capital gains. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The date of the Lipper ranking is slightly different from when the Fund began operations since Lipper provides fund rankings as of the last day of the month or the first Thursday after fund inception.

* The Fund's inception date – December 29, 1995

Fund Expenses

The example below shows you the ongoing costs (in dollars) of investing in your fund and allows you to compare these costs with those of other mutual funds. Please refer to page 4 for a detailed explanation of the information presented in these charts.

Expense Example   Beginning Account Value
(11/1/04)
  Ending Account Value
(4/30/05)
  Expenses Paid During Period
(11/1/04-4/30/05)*
 
Actual   $ 1,000.00     $ 1,025.10     $ 4.92    
Hypothetical
(5% return before expenses)
  $ 1,000.00     $ 1,019.93     $ 4.91    

 

*Expenses are equal to the annualized expense ratio of 0.98%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

See "Explanations of Charts, Tables and Financial Statements."

The Fund's portfolio may differ significantly from the securities held in the indices. The indices are not available for direct investment; therefore their performance does not reflect the expenses associated with the active management of an actual portfolio.

There is no assurance that the investment process will consistently lead to successful investing.

Lipper Inc. - A Reuters Company, is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested.

Effective February 25, 2005, Janus Olympus Fund changed its primary benchmark from the S&P 500® Index to the Russell 1000® Growth Index. The new primary benchmark will provide a more appropriate comparison to the Fund's investment style. The Fund will retain the S&P 500® Index as a secondary index.

24 Janus Growth Funds April 30, 2005



Janus Olympus Fund

Schedule of Investments (unaudited)

As of April 30, 2005

Shares or Principal Amount       Value  
  Common Stock - 96.7%            
  Aerospace and Defense - 1.1%                
  597,045     Raytheon Co.   $ 22,454,862    
  Applications Software - 1.5%                
  871,945     NAVTEQ Corp.*, #      31,756,237    
  Audio and Video Products - 1.4%                
  366,250     Harman International Industries, Inc.     28,779,925    
  Building - Mobile Home and Manufactured Homes - 0.8%                
  627,430     Thor Industries, Inc.#      16,909,239    
  Building - Residential and Commercial - 1.3%                
  517,855     Lennar Corp.#      26,653,997    
  Casino Hotels - 0.5%                
  147,695     Harrah's Entertainment, Inc.     9,691,746    
  Chemicals - Specialty - 0.3%                
  257,920     Syngenta A.G. (ADR)*,**     5,346,682    
  Commercial Banks - 0.8%                
  1,051,310     UCBH Holdings, Inc.#      16,537,106    
  Commercial Services - 0.2%                
  86,311     CoStar Group, Inc.*, #      3,413,600    
  Commercial Services - Finance - 1.5%                
  1,033,405     Paychex, Inc.#      31,622,193    
  Computers - 2.6%                
  443,115     Dell, Inc.*     15,433,695    
  615,520     Research In Motion, Ltd. (New York Shares)*     39,645,644    
      55,079,339    
  Computers - Memory Devices - 1.0%                
  1,558,835     EMC Corp.*     20,451,915    
  Containers - Metal and Glass - 0.8%                
  439,265     Ball Corp.     17,350,968    
  Cosmetics and Toiletries - 1.5%                
  517,745     Avon Products, Inc.#      20,751,220    
  185,000     Procter & Gamble Co.     10,017,750    
      30,768,970    
  Cruise Lines - 0.2%                
  119,060     Royal Caribbean Cruises, Ltd.
(New York Shares)# 
    5,002,901    
  Distribution/Wholesale - 1.1%                
  3,131,000     Esprit Holdings, Ltd.     23,438,494    
  Diversified Financial Services - 0.5%                
  187,595     Morgan Stanley Co.*     9,871,249    
  Diversified Operations - 2.9%                
  1,024,760     General Electric Co.     37,096,312    
  749,290     Tyco International, Ltd. (New York Shares)     23,460,270    
      60,556,582    
  Electric - Generation - 0.8%                
  997,290     AES Corp.     16,036,423    
  Electronic Components - Semiconductors - 2.2%                
  963,220     Advanced Micro Devices, Inc.*, #      13,706,621    
  295,990     ATI Technologies, Inc. (New York Shares)*     4,380,652    
  533,865     Broadcom Corp. - Class A*, #      15,967,902    
  529,580     Texas Instruments, Inc.     13,218,317    
      47,273,492    
  Electronic Forms - 0.8%                
  294,990     Adobe Systems, Inc.     17,543,055    

 

Shares or Principal Amount       Value  
  Entertainment Software - 1.3%            
  519,955     Electronic Arts, Inc.*   $ 27,760,397    
  Finance - Consumer Loans - 1.1%            
  475,585     SLM Corp.     22,656,869    
  Finance - Investment Bankers/Brokers - 1.0%            
  405,305     E*TRADE Financial Corp.*     4,502,939    
  314,780     Merrill Lynch & Company, Inc.     16,976,085    
      21,479,024    
  Finance - Other Services - 0.3%            
  36,895     Chicago Mercantile Exchange Holdings, Inc.#      7,213,710    
  Financial Guarantee Insurance - 0.5%            
  221,235     MBIA, Inc.#      11,588,289    
  Food - Retail - 2.5%            
  536,502     Whole Foods Market, Inc.#      53,499,979    
  Hazardous Waste Disposal - 1.3%            
  566,630     Stericycle, Inc.*, #      27,577,882    
  Hotels and Motels - 2.3%            
  769,625     Four Seasons Hotels, Inc.     48,848,099    
  Independent Power Producer - 1.2%            
  2,593,015     Reliant Energy, Inc.*     26,370,963    
  Internet Security - 0.6%            
  491,850     Check Point Software Technologies, Ltd.
(New York Shares)*
    10,304,257    
  110,625     McAfee, Inc.*     2,313,169