DENVER--(BUSINESS WIRE)--
Janus Capital Group Inc. (NYSE: JNS) today reported fourth quarter
net income of $37.7 million, or $0.19 per diluted share, compared with
net income of $29.5 million, or $0.15 per diluted share, in the third
quarter 2006. For the full year 2006, net income totaled $133.6
million, or $0.66 per diluted share, compared with $87.8 million, or
$0.40 per diluted share for 2005. The company's investment management
operating margins for the fourth quarter 2006 were 25.6% compared with
24.9% for the third quarter 2006. For the entire year, Janus'
investment management operating margins were 25.5% compared with 22.3%
for 2005.
Beginning in the first quarter 2006, Janus reported only GAAP
results. For informational purposes, Janus previously disclosed
adjusted earnings per diluted share of $0.52 and adjusted investment
management operating margins of 24.3% for the full year 2005.
Flows and Assets Under Management
Average assets under management during the fourth quarter
increased 7.8% to $165.1 billion compared with $153.2 billion during
the third quarter 2006. At December 31, 2006, the company's total
assets under management were $167.7 billion compared with $158.3
billion at September 30, 2006. The increase in assets at the end of
the fourth quarter reflects $10.6 billion in market appreciation and
fund performance, money market net outflows of $0.5 billion and
long-term net outflows of $0.7 billion. Fourth quarter long-term net
outflows include $3.2 billion of Janus legacy subadvised mandate
redemptions. Company-wide long-term net inflows were $2.3 billion for
2006, the second consecutive year of positive long-term net flows.
Janus' INTECH subsidiary had long-term net inflows of $3.6 billion
in the fourth quarter compared with long-term net inflows of $1.7
billion in the third quarter 2006. Full year 2006 flows totaled $12.0
billion. Excluding INTECH, Janus' long-term net outflows totaled $4.3
billion in the fourth quarter 2006 versus long-term net outflows of
$1.8 billion in the third quarter 2006. Full year 2006 outflows
totaled $9.7 billion and included more than $4 billion of previously
announced subadvisory redemptions.
"Generating firmwide positive flows for a second year in a row was
another big step forward for Janus, and we're eager to build on that
momentum in 2007," said CEO Gary Black. "Despite losing some large
subadvised accounts last year, we're pleased to see positive net flows
from our broker-dealer and retail supermarket sales as well as our
international and institutional businesses."
Investment Management
Janus' relative investment management performance remained strong
during the fourth quarter, with approximately 63%, 73% and 72% of the
funds in the company's primary retail fund family, Janus Investment
Fund (JIF), in the top half of their Lipper categories on a one-,
three- and five-year total-return basis, respectively, at December 31,
2006. (Detailed Lipper rankings and performance data for all JIF funds
are on pages 10-12.)
"Our focus is on delivering consistently strong results, so we're
proud that more than 70% of our funds again beat their peers during
the last three- and five-year periods," Black said. "We're especially
encouraged that the performance of our flagship funds improved
significantly last year. At the end of 2006, Janus Fund was back in
the top two Lipper quartiles on a 1-, 3-, 5- and 10-year total-return
basis. Meanwhile, Janus Worldwide Fund finished the year in the 56th
Lipper percentile on a 1-year total-return basis, up from the 83rd
percentile at the end of September 2006."
Financial Discussion
Financial Highlights
(dollars in millions, except per share data or as noted)
Three Months Ended Year Ended
------------------ -------------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31,
2006 2006 2006 2005
-------- --------- -------- ----------
Investment Management Segment
------------------------------
Average Assets (billions) $165.1 $153.2 $156.7 $135.2
Ending AUM (billions) $167.7 $158.3 $167.7 $148.5
Revenues $241.2 $229.0 $935.8 $868.3
Operating Expenses $179.5 $172.0 $696.9 $675.1
Operating Income $61.7 $57.0 $238.9 $193.2
Operating Margin 25.6% 24.9% 25.5% 22.3%
Printing and Fulfillment
Operating Loss $(2.4) $(5.7) $(15.9) $(35.3)
Consolidated Net Income $37.7 $29.5 $133.6 $87.8
Diluted Earnings per Share $0.19 $0.15 $0.66 $0.40
Shares Repurchased 6.1 7.7 24.8 20.3
Cost of Shares Repurchased $124.9 $138.1 $492.9 $292.6
Investment Management Segment
Fourth quarter revenues of $241.2 million were up from $229.0
million in the previous quarter as a result of a 7.8% increase in
average assets under management that was partially offset by a higher
proportion of lower-yielding INTECH products. Fourth quarter 2006
operating expenses increased from the previous quarter primarily due
to the net items described below as well as higher compensation and
asset-based distribution expenses. Compensation included higher bonus
accruals (both Janus and INTECH) and increased fund-performance-driven
incentive compensation. In addition, as a result of adopting a new
investment team compensation plan that will be in effect for 2007, a
one-time charge of $2.0 million of incentive compensation was recorded
in the fourth quarter. In the new plan, portfolio manager compensation
continues to be driven primarily by long-term investment performance,
but the aggregate level of compensation is tied to the company's
investment management fees.
Fourth quarter operating expenses also include a net benefit of
$1.6 million, representing insurance recoveries for legal fees
incurred in prior periods and fund proxy costs, while third quarter
2006 included a net expense of $9.5 million resulting from impairment
charges, certain litigation fees and a decline in long-term
compensation expenses.
Printing and Fulfillment Segment
Janus' printing business, Rapid Solutions Group (RSG), reported an
operating loss of $2.4 million in the fourth quarter of 2006. The
improved results reflect higher seasonal production volume at RSG.
Capital and Liquidity
At December 31, 2006, Janus had stockholders' equity of $2.3
billion, cash and investments of $732.8 million and $537.2 million of
outstanding debt. During the fourth quarter, $113.1 million of debt
matured and was repaid.
As part of its capital and liquidity management, Janus reduced its
outstanding shares by 2.9% during the fourth quarter by repurchasing
6.1 million shares of its common stock at an average price of $20.50
per share and a total cost of $124.9 million. For the year, Janus has
repurchased 24.8 million shares of its common stock at an average
price of $19.85 per share and a total cost of $492.9 million, reducing
shares outstanding by 10.4%. On January 23, 2007, the Janus Board of
Directors approved a new $500 million stock repurchase program to
begin when the current authorization is completed. At December 31,
2006, $130.9 million was available for repurchase under the currently
authorized program.
Fourth Quarter 2006 Earnings Call Information
Janus Capital Group will discuss its results during a conference
call on Thursday, January 25 at 10 a.m. Eastern Standard Time. The
call-in number will be 877-301-7574. Anyone outside the U.S. or Canada
should call 706-643-3623. The slides used during the presentation will
be available in the investor relations section of the Janus Capital
Group Web site (www.janus.com/ir) approximately one hour prior to the
call. For those unable to join the conference call at the scheduled
time, an audio replay will be available on www.janus.com/ir.
About Janus Capital Group Inc.
Founded in 1969, Denver-based Janus Capital Group Inc. (Janus) is
a recognized leader of growth and risk-managed investment strategies.
Our commitment to deliver for investors is rooted in our
research-intensive approach and relentless passion to gain a
competitive edge.
At the end of December 2006, Janus managed $167.7 billion in
assets for more than four million shareholders, clients and
institutions around the globe. Outside the U.S., Janus has offices in
London, Milan, Tokyo and Hong Kong. Janus Capital Group consists of
Janus Capital Management LLC, Enhanced Investment Technologies, LLC
(INTECH) and Capital Group Partners, Inc. (doing business as Rapid
Solutions Group). In addition, Janus Capital Group owns 30% of
Perkins, Wolf, McDonnell and Company, LLC.
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.
Data presented reflects past performance, which is no guarantee of
future results. Rankings referenced exclude money markets.
Funds distributed by Janus Distributors LLC (1/07).
This press release includes statements concerning potential future
events involving Janus Capital Group Inc. that could differ materially
from the events that actually occur. The differences could be caused
by a number of factors including those factors identified in Janus'
Annual Report on Form 10-K for the year ended December 31, 2005, on
file with the Securities and Exchange Commission (Commission file no.
001-15253), including those that appear under headings such as "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations." Many of these factors are beyond
the control of the Company and its management. Any forward-looking
statements contained in this release are as of the date on which such
statements were made. The Company assumes no duty to update them, even
if experience, unexpected events, or future changes make it clear that
any projected results expressed or implied therein will not be
realized.
(1) Detailed Lipper rankings and performance data for all JIF
funds are on pages 10-12.
JANUS CAPITAL GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
Three Months Ended Year Ended
------------------ ------------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31,
2006 2006 2006 2005
-------- --------- -------- ---------
Investment Management Revenues:
Investment management fees $194.1 $183.5 $750.2 $673.1
Performance fees 2.4 4.0 14.9 26.8
Shareowner servicing fees and
other 44.7 41.5 170.7 168.4
-------- --------- -------- ---------
Total 241.2 229.0 935.8 868.3
-------- --------- -------- ---------
Investment Management Operating
Expenses:
Employee compensation and
benefits 82.9 70.7 315.2 299.5
Long-term incentive
compensation 20.7 17.0 82.7 75.1
Marketing and advertising 8.6 6.6 28.3 30.4
Distribution 30.1 26.1 110.2 102.9
Depreciation and amortization 7.8 7.6 32.0 35.9
General, administrative and
occupancy 33.0 33.5 131.6 135.1
Restructuring and impairments 0.5 10.5 11.0 5.5
Mutual fund investigation
recoveries, net of charges (4.1) - (14.1) (9.3)
-------- --------- -------- ---------
Total 179.5 172.0 696.9 675.1
-------- --------- -------- ---------
Investment Management Operating
Income 61.7 57.0 238.9 193.2
Printing and Fulfillment
Segment:
Revenue 24.7 21.1 90.9 84.8
Operating expenses 25.1 24.8 98.9 92.2
Depreciation and amortization 2.0 2.0 7.9 7.9
Restructuring and impairments - - - 20.0
-------- --------- -------- ---------
Printing and Fulfillment
Operating Loss (2.4) (5.7) (15.9) (35.3)
Interest expense (10.0) (8.1) (32.3) (28.6)
Other, net 14.0 8.6 39.4 39.3
Income tax provision (21.8) (18.4) (81.9) (67.9)
Equity in earnings of
unconsolidated affiliate 1.7 1.7 7.1 7.1
Minority interest in
consolidated earnings (5.5) (5.6) (21.7) (20.0)
-------- --------- -------- ---------
Net Income $37.7 $29.5 $133.6 $87.8
======== ========= ======== =========
Basic Earnings per Share
Weighted average shares
outstanding (in millions) 193.6 201.0 202.4 218.6
Basic earnings per share $0.19 $0.15 $0.66 $0.40
Diluted Earnings per Share
Weighted average shares
outstanding (in millions) 196.0 202.2 203.5 219.1
Diluted earnings per share $0.19 $0.15 $0.66 $0.40
Average Assets Under Management
(in billions) $165.1 $153.2 $156.7 $135.2
JANUS CAPITAL GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
December 31, December 31,
2006 2005
------------- --------------
Assets
Cash and cash equivalents $559.7 $552.6
Investments 173.1 334.1
Other assets 291.7 285.5
Property and equipment, net 60.3 64.7
Intangibles and goodwill, net 2,453.1 2,391.6
------------- --------------
Total Assets $3,537.9 $3,628.5
============= ==============
Liabilities and Stockholders' Equity
Debt $537.2 $376.3
Other liabilities 295.0 246.9
Deferred income taxes 399.3 424.1
Stockholders' equity 2,306.4 2,581.2
------------- --------------
Total Liabilities and Stockholders'
Equity $3,537.9 $3,628.5
============= ==============
UNAUDITED CONDENSED CONSOLIDATED
CASH FLOW INFORMATION
(dollars in millions)
Three Months Ended Year Ended
------------------- -----------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31,
Cash provided by (used for) 2006 2006 2006 2005
--------- --------- -------- --------
Operating activities $104.3 $50.7 $301.8 $273.2
Investing activities 229.5 (65.9) 45.8 64.8
Financing activities (234.0) 137.2 (340.5) (312.5)
--------- --------- -------- --------
Net change during period $99.8 $122.0 $7.1 $25.5
========= ========= ======== ========
JANUS CAPITAL GROUP INC.
ASSETS & FLOWS BY INVESTMENT DISCIPLINE
(dollars in billions)
Three Months Ended Year Ended
------------------ -----------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31,
2006 2006 2006 2005
-------- --------- -------- --------
Growth/Blend
Beginning of period assets $67.0 $66.9 $68.5 $71.4
Sales 2.3 1.9 11.2 8.5
Redemptions 7.0 3.5 19.0 17.2
-------- --------- -------- --------
Net Sales (redemptions) (4.7) (1.6) (7.8) (8.8)
Market appreciation 4.5 1.6 6.1 5.8
-------- --------- -------- --------
End of period assets $66.8 $67.0 $66.8 $68.5
======== ========= ======== ========
Global/International
Beginning of period assets $13.3 $12.6 $12.2 $14.6
Sales 1.4 0.7 4.0 1.5
Redemptions 0.7 0.7 3.8 5.3
-------- --------- -------- --------
Net Sales (redemptions) 0.7 - 0.2 (4.0)
Market appreciation 2.0 0.7 3.6 1.6
-------- --------- -------- --------
End of period assets $16.0 $13.3 $16.0 $12.2
======== ========= ======== ========
Mathematical/Quantitative
Beginning of period assets $55.6 $51.5 $44.7 $25.8
Sales 5.9 3.2 18.5 17.7
Redemptions 2.3 1.4 6.5 1.7
-------- --------- -------- --------
Net Sales (redemptions) 3.6 1.7 12.0 16.1
Market appreciation 3.1 2.3 5.6 2.9
-------- --------- -------- --------
End of period assets $62.3 $55.6 $62.3 $44.7
======== ========= ======== ========
Fixed Income
Beginning of period assets $4.7 $4.7 $5.2 $6.2
Sales 0.2 0.2 0.9 1.1
Redemptions 0.4 0.4 1.7 1.8
-------- --------- -------- --------
Net Sales (redemptions) (0.2) (0.2) (0.8) (0.9)
Market appreciation 0.1 0.1 0.3 (0.1)
-------- --------- -------- --------
End of period assets $4.6 $4.7 $4.6 $5.2
======== ========= ======== ========
Value
Beginning of period assets $9.7 $9.7 $10.4 $10.2
Acquisitions (dispositions) - - - (0.2)
Sales 0.6 0.6 3.0 3.2
Redemptions 0.7 0.7 4.2 3.7
-------- --------- -------- --------
Net Sales (redemptions) (0.1) (0.1) (1.2) (0.4)
Market appreciation 0.8 0.1 1.3 1.0
-------- --------- -------- --------
End of period assets $10.5 $9.7 $10.5 $10.4
======== ========= ======== ========
Money Market
Beginning of period assets $8.0 $7.9 $7.5 $10.8
Sales 14.6 11.7 48.2 38.0
Redemptions 15.0 11.4 48.3 41.2
-------- --------- -------- --------
Net Sales (redemptions) (0.5) 0.3 - (3.2)
Market appreciation - - - -
-------- --------- -------- --------
End of period assets $7.5 $8.0 $7.5 $7.5
======== ========= ======== ========
Total
Beginning of period assets $158.3 $153.4 $148.5 $139.0
Acquisitions (dispositions) - - - (0.2)
Sales 25.0 18.2 85.8 70.0
Redemptions 26.2 18.0 83.5 71.2
-------- --------- -------- --------
Net Sales (redemptions) (1.2) 0.2 2.3 (1.2)
Market appreciation 10.6 4.7 16.8 10.9
-------- --------- -------- --------
End of period assets $167.7 $158.3 $167.7 $148.5
======== ========= ======== ========
Total Excluding Money Markets
Beginning of period assets $150.3 $145.5 $141.0 $128.2
Acquisitions (dispositions) - - - (0.2)
Sales 10.5 6.5 37.5 31.8
Redemptions 11.2 6.6 35.2 29.8
-------- --------- -------- --------
Net Sales (redemptions) (0.7) (0.1) 2.3 2.0
Market appreciation 10.6 4.7 16.9 10.9
-------- --------- -------- --------
End of period assets $160.2 $150.3 $160.2 $141.0
======== ========= ======== ========
Total Excluding Mathematical/Quantitative
& Money Markets
Beginning of period assets $94.7 $94.0 $96.2 $102.4
Acquisitions (dispositions) - - - (0.2)
Sales 4.6 3.4 19.0 14.1
Redemptions 8.9 5.2 28.7 28.0
-------- --------- -------- --------
Net Sales (redemptions) (4.3) (1.8) (9.7) (14.1)
Market appreciation 7.5 2.4 11.3 8.1
-------- --------- -------- --------
End of period assets $97.9 $94.7 $97.9 $96.2
======== ========= ======== ========
Each line has been rounded on the schedule individually to increase
the accuracy of the amounts presented. Therefore totals and subtotals
may not foot.
JANUS CAPITAL GROUP INC.
NON-GAAP RECONCILIATIONS
(dollars in millions, except per share data)
In 2005, Janus management analyzed its historical results after
adjusting for certain items that were not ongoing or were non-
operational in nature. The company believed that excluding these
items was useful to management and investors because it provided a
more comparable basis for evaluating Janus' operating results and
financial performance over time. Internally, these adjusted results
were used to evaluate the performance of the Company.
Year Ended December 31, 2005
------------------------------------------------------
Investment Printing
Investment Non-GAAP Management and
Management Adjustments Adjusted Fulfillment
------------------------------------------------------
Revenues $868.3 $- $868.3 $84.8
Employee
compensation
and benefits 299.5 (9.8) (1) 289.7 5.5
Long-term
incentive
compensation 75.1 (1.5) (1) 73.6 0.2
Marketing and
advertising 30.4 (2.0) (2) 28.4 -
General,
administrative
and occupancy 135.1 (7.9)(1,3) 127.2 3.6
Restructuring
and
impairments 5.5 (5.5) (4) - 20.0
Provision for
mutual fund
investigation (9.3) 9.3 (5) - -
Operating
expenses 138.8 - 138.8 90.8
------------ ----------- ----------- -----------
Total 675.1 (17.4) 657.7 120.1
------------ ----------- ----------- -----------
Operating
income (loss) 193.2 17.4 210.6 (35.3)
Operating
margin 22.3% 24.3% -41.6%
Interest
expense (28.6) - (28.6) -
Other income
(expense) 37.9 (9.9) (6) 28.0 1.4
Income tax
benefit
(provision) (72.8) (2.2) (7) (75.0) 4.9
Equity earnings
in
unconsolidated
affiliate 7.1 - 7.1 -
Minority
interest in
consolidated
earnings (20.0) - (20.0) -
------------ ----------- ----------- -----------
Net income
(loss) $116.8 $5.3 $122.1 $(29.0)
============ =========== =========== ===========
Diluted
earnings
(loss) per
share $0.53 $0.02 $0.56 $(0.13)
Average AUM
(billions) $135.2
Year Ended December 31, 2005
------------------------------------------------------
Printing and
Non-GAAP Fulfillment Adjusted
Adjustments Adjusted Total
------------------------------------------------------
Revenues $- $84.8 $953.1
Employee
compensation
and benefits - 5.5 295.2
Long-term
incentive
compensation - 0.2 73.8
Marketing and
advertising - - 28.4
General,
administrative
and occupancy - 3.6 130.8
Restructuring
and
impairments (20.0)(8) - -
Provision for
mutual fund
investigation - - -
Operating
expenses - 90.8 229.6
-------------------------- ------------- ----------
Total (20.0) 100.1 757.8
-------------------------- ------------- ----------
Operating
income (loss) 20.0 (15.3) 195.3
Operating
margin -18.0% 20.5%
Interest
expense - - (28.6)
Other income
(expense) - 1.4 29.4
Income tax
benefit
(provision) - 4.9 (70.1)
Equity earnings
in
unconsolidated
affiliate - - 7.1
Minority
interest in
consolidated
earnings - - (20.0)
-------------------------- ------------- ----------
Net income
(loss) $20.0 $(9.0) $113.1
========================== ============= ==========
Diluted
earnings
(loss) per
share $0.09 $(0.04) $0.52
Average AUM
(billions)
Notes to non-GAAP adjustments:
(1)Severance charges related to the departure of the Chief Financial
Officer, Principal Operating Officer and other administrative
personnel and expenses incurred as result of the August 2005 cost
reduction plan.
(2)Costs associated with the settlement-mandated fund proxy mailing.
(3)Accrual related to the possible resolution of certain legal-related
matters.
(4)Charges related to the closure of a Bay Isle Financial LLC facility
in Oakland, California, severance of a Bay Isle portfolio manager
and impairment of intangibles associated with the loss of
institutional accounts.
(5)Insurance recoveries of $14.4 million for costs incurred related to
the mutual fund investigation, net of ongoing legal fees.
(6)Realized gain on the sale of investments. In the first half of
2005, the Company reduced its seed capital investments by $48.8
million which produced after-tax gains of $6.1 million. Included
in the second half of 2005 are $3.8 of investment gains which are
considered a component of normal investing activity and therefore,
have not been adjusted.
(7)Includes tax effect of adjustments and $5.0 million for the
reversal of a tax contingency.
(8)Impairment charge recorded to reduce goodwill at Rapid Solutions
Group (the operating unit of the Printing and Fulfillment
segment).
Janus Investment Funds Lipper Rankings Based
("JIF")
on Total Returns as of 12/31/06
------------------------------------
1-Year 3-Year
------------------ ----------------
Percen-
PM Lipper Percen- Rank / tile Rank /
Inception Category tile Total Rank Total
Rank (%) Funds (%) Funds
--------------------- ------------------ -----------------
Growth Funds
----------------------------------------------------------------------
Large-Cap
Growth
Janus Fund Jan-06 Funds 9 58/723 50 306/616
Large-Cap
Janus Twenty Growth
Fund(1) Aug-97 Funds 6 43/723 1 1/616
Janus Large-Cap
Research Growth
Fund Jan-06 Funds 25 178/723 14 82/616
Multi-Cap
Janus Orion Growth
Fund Jun-00 Funds 4 15/489 2 5/394
Janus Mid-Cap
Enterprise Growth
Fund Jan-02 Funds 15 90/621 9 42/489
Janus Small-Cap
Venture Growth
Fund(1) Jan-01 Funds 1 2/557 10 43/456
Janus Global Multi-Cap
Research Growth
Fund Feb-05 Funds 4 17/489 - -
Small-Cap
Janus Triton Growth
Fund Jun-06 Funds 16 88/557 - -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth Large-Cap
and Income Core
Fund Dec-03 Funds 94 757/811 18 122/680
Janus Multi-Cap
Contrarian Core
Fund Feb-00 Funds 1 2/909 1 1/646
Mixed-
Asset
Target
Janus Alloc.
Balanced Mod.
Fund Apr-05 Funds 53 224/425 25 75/306
Janus Large-Cap
Fundamental Core
Equity Fund Apr-05 Funds 83 669/811 2 9/680
INTECH Risk- Multi-Cap
Managed Core
Stock Fund Feb-03 Funds 74 671/909 12 76/646
----------------------------------------------------------------------
International/
Global Funds
----------------------------------------------------------------------
Janus Inter-
Overseas national
Fund Jun-03 Funds 1 1/968 1 1/798
Janus
Worldwide Global
Fund Jun-04 Funds 56 211/381 96 288/302
Science
&
Janus Global Tech-
Technology nology
Fund Jan-06 Funds 39 111/291 37 97/262
Janus Global Health/
Life Biotech-
Sciences nology
Fund Dec-98 Funds 89 160/179 38 60/159
Janus
Global
Oppor-
tunities Global
Fund Jun-01 Funds 97 368/381 93 279/302
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid
Cap Value Mid-Cap
Fund - Value
Inv(2) Aug-98 Funds 57 169/296 54 119/222
Janus Small
Cap Value Small-Cap
Fund - Core
Inv.(1,2) Feb-97 Funds 73 507/702 77 413/542
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Inter-
mediate
Inv
Janus Grade
Flexible Debt
Bond Fund Dec-91 Funds 40 192/486 53 221/419
High
Current
Janus High- Yield
Yield Fund Dec-03 Funds 25 114/457 38 147/388
Short
Investment
Janus Short- Grade
Term Bond Debt
Fund Jun-03 Funds 45 105/235 33 64/195
Janus
Federal General
Tax-Exempt Muni Debt
Fund Feb-05 Funds 57 145/257 77 193/250
----------------------------------------------------------------------
Asset
Allocation
Funds
----------------------------------------------------------------------
Mixed-
Asset
Target
Janus Smart Alloc.
Portfolio- Growth
Growth Dec-05 Funds 8 45/587 - -
Mixed-
Asset
Target
Janus Smart Alloc.
Portfolio- Mod.
Moderate Dec-05 Funds 12 51/425 - -
Mixed-
Janus Asset
Smart Target
Portfolio- Alloc.
Conserv- Cons.
ative Dec-05 Funds 5 14/337 - -
----------------------------------------------------------------------
Janus Investment Funds
("JIF") Lipper Rankings Based
on Total Returns as of 12/31/0
------------------------------------
5-Year 10-Year
------------------ ----------------
Percen-
PM Lipper Percen- Rank / tile Rank /
Inception Category tile Total Rank Total
Rank (%) Funds (%) Funds
--------------------- ------------------------------------
Growth Funds
----------------------------------------------------------------------
Large-Cap
Growth
Janus Fund Jan-06 Funds 34 170/505 43 80/186
Large-Cap
Janus Twenty Growth
Fund(1) Aug-97 Funds 3 12/505 2 2/186
Janus Large-Cap
Research Growth
Fund Jan-06 Funds 18 91/505 5 8/186
Multi-Cap
Janus Orion Growth
Fund Jun-00 Funds 6 17/310 - -
Janus Mid-Cap
Enterprise Growth
Fund Jan-02 Funds 21 80/385 60 92/153
Janus Small-Cap
Venture Growth
Fund(1) Jan-01 Funds 10 35/374 30 41/136
Janus Global Multi-Cap
Research Growth
Fund Feb-05 Funds - - - -
Small-Cap
Janus Triton Growth
Fund Jun-06 Funds - - - -
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth Large-Cap
and Income Core
Fund Dec-03 Funds 31 180/581 4 9/251
Janus Multi-Cap
Contrarian Core
Fund Feb-00 Funds 1 3/468 - -
Mixed-
Asset
Target
Janus Alloc.
Balanced Mod.
Fund Apr-05 Funds 38 82/219 4 4/107
Janus Large-Cap
Fundamental Core
Equity Fund Apr-05 Funds 7 36/581 1 1/251
INTECH Risk- Multi-Cap
Managed Core
Stock Fund Feb-03 Funds - - - -
----------------------------------------------------------------------
International/
Global Funds
----------------------------------------------------------------------
Janus Inter-
Overseas national
Fund Jun-03 Funds 8 51/650 4 9/260
Janus
Worldwide Global
Fund Jun-04 Funds 96 221/230 68 66/97
Science
&
Janus Global Tech-
Technology nology
Fund Jan-06 Funds 50 119/238 - -
Janus Global Health/
Life Biotech-
Sciences nology
Fund Dec-98 Funds 63 84/134 - -
Janus
Global
Oppor-
tunities Global
Fund Jun-01 Funds 52 120/230 - -
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid
Cap Value Mid-Cap
Fund - Value
Inv(2) Aug-98 Funds 46 76/166 - -
Janus Small
Cap Value Small-Cap
Fund - Core
Inv.(1,2) Feb-97 Funds 75 318/425 - -
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Inter-
mediate
Inv
Janus Grade
Flexible Debt
Bond Fund Dec-91 Funds 18 62/357 33 49/151
High
Current
Janus High- Yield
Yield Fund Dec-03 Funds 60 189/315 16 19/118
Short
Investment
Janus Short- Grade
Term Bond Debt
Fund Jun-03 Funds 44 62/140 36 26/72
Janus
Federal General
Tax-Exempt Muni Debt
Fund Feb-05 Funds 67 151/227 81 117/145
----------------------------------------------------------------------
Asset
Allocation
Funds
----------------------------------------------------------------------
Mixed-
Asset
Target
Janus Smart Alloc.
Portfolio- Growth
Growth Dec-05 Funds - - - -
Mixed-
Asset
Target
Janus Smart Alloc.
Portfolio- Mod.
Moderate Dec-05 Funds - - - -
Mixed-
Janus Asset
Smart Target
Portfolio- Alloc.
Conserv- Cons.
ative Dec-05 Funds - - - -
----------------------------------------------------------------------
Janus Investment Funds
("JIF") Lipper Rankings Based
on Total Returns as of 12/31/0
---------------------------------
Since PM Inception
---------------------------------
PM Lipper Percentile Rank/Total
Inception Category Rank (%) Funds
--------------------- ---------------------------------
Growth Funds
-------------------------------------------------------------------
Large-Cap ++
Growth
Janus Fund Jan-06 Funds
Large-Cap
Janus Twenty Growth
Fund(1) Aug-97 Funds 2 4/230
Janus Large-Cap ++
Research Growth
Fund Jan-06 Funds
Multi-Cap
Janus Orion Growth
Fund Jun-00 Funds 33 76/230
Janus Mid-Cap
Enterprise Growth
Fund Jan-02 Funds 12 46/391
Janus Small-Cap
Venture Growth
Fund(1) Jan-01 Funds 16 53/336
Janus Global Multi-Cap
Research Growth
Fund Feb-05 Funds 2 7/434
Small-Cap ++
Janus Triton Growth
Fund Jun-06 Funds
-------------------------------------------------------------------
Core Funds
-------------------------------------------------------------------
Janus Growth Large-Cap
and Income Core
Fund Dec-03 Funds 18 122/682
Janus Multi-Cap
Contrarian Core
Fund Feb-00 Funds 12 40/341
Mixed-
Asset
Target
Janus Alloc.
Balanced Mod.
Fund Apr-05 Funds 14 55/393
Janus Large-Cap
Fundamental Core
Equity Fund Apr-05 Funds 3 22/769
INTECH Risk- Multi-Cap
Managed Core
Stock Fund Feb-03 Funds 31 176/582
-------------------------------------------------------------------
International/
Global Funds
-------------------------------------------------------------------
Janus Inter-
Overseas national
Fund Jun-03 Funds 1 1/758
Janus
Worldwide Global
Fund Jun-04 Funds 81 250/309
Science ++
&
Janus Global Tech-
Technology nology
Fund Jan-06 Funds
Janus Global Health/
Life Biotech-
Sciences nology
Fund Dec-98 Funds 41 20/48
Janus
Global
Oppor-
tunities Global
Fund Jun-01 Funds 27 58/216
-------------------------------------------------------------------
Value Funds
-------------------------------------------------------------------
Janus Mid
Cap Value Mid-Cap
Fund - Value
Inv(2) Aug-98 Funds 6 4/68
Janus Small
Cap Value Small-Cap
Fund - Core
Inv.(1,2) Feb-97 Funds 15 20/135
-------------------------------------------------------------------
Income Funds
-------------------------------------------------------------------
Inter-
mediate
Inv
Janus Grade
Flexible Debt
Bond Fund Dec-91 Funds 4 2/52
High
Current
Janus High- Yield
Yield Fund Dec-03 Funds 38 147/388
Short
Investment
Janus Short- Grade
Term Bond Debt
Fund Jun-03 Funds 26 47/180
Janus
Federal General
Tax-Exempt Muni Debt
Fund Feb-05 Funds 52 131/251
-------------------------------------------------------------------
Asset
Allocation
Funds
-------------------------------------------------------------------
Mixed-
Asset
Target
Janus Smart Alloc.
Portfolio- Growth
Growth Dec-05 Funds 8 45/591
Mixed-
Asset
Target
Janus Smart Alloc.
Portfolio- Mod.
Moderate Dec-05 Funds 12 51/425
Mixed-
Janus Asset
Smart Target
Portfolio- Alloc.
Conserv- Cons.
ative Dec-05 Funds 5 14/341
-------------------------------------------------------------------
Percent of JIF Funds per Lipper Quartile based
on Total Returns
-----------------------------------------------
Since PM
1-Year 3-Year 5-Year 10-Year Inception
----------------------------------------------------------------------
1st Quartile 51.9% 50.0% 42.9% 50.0% 65.2%
2nd Quartile 11.1% 22.7% 28.6% 28.6% 26.1%
3rd Quartile 22.2% 9.1% 23.8% 14.3% 4.3%
4th Quartile 14.8% 18.2% 4.8% 7.1% 4.3%
----------------------------------------------------------------------
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. If an
expense waiver was in effect, it may have had a material effect on the
total return or yield for the period.
Data presented reflects past performance, which is no guarantee of
future results.
Notes:
(1) Closed to new investors
(2) Ranking is for the investor share class only; other classes
may have different performance characteristics.
++ The Fund's since PM-Inception ranking is not available.
Data presented reflects 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 1-800-975-9932 or
visit www.janus.com for performance current to the most recent
month-end.
See notes to performance on the following page.
Janus Investment Fund
("JIF")
Average Annual Total Returns (%) for
Periods Ended 12/31/06(1)
------------------------------------
Life
Inception of
Date 1 Year 3 Year 5 Year 10 Year Fund
---------- ------ ------- ------ ------- ------
Growth Funds
----------------------------------------------------------------------
Janus Fund 2/70 10.59 6.38 2.81 6.12 13.73
Janus Twenty Fund (2) 4/85 12.30 15.04 7.71 9.91 13.42
Janus Research Fund
(3) 5/93 8.65 8.74 3.82 8.57 12.40
Janus Orion Fund (5) 6/00 18.64 18.13 10.74 -- (0.02)
Janus Enterprise Fund 9/92 13.22 15.04 8.20 7.37 11.44
Janus Venture Fund
(2,4) 4/85 23.58 13.84 10.83 10.31 13.72
Janus Global Research
Fund (6) 2/05 18.40 -- -- -- 20.18
Janus Triton Fund (4) 2/05 15.85 -- -- -- 18.57
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth and
Income Fund 5/91 7.82 10.71 5.83 10.71 13.23
Janus Contrarian Fund
(8) 2/00 24.58 21.01 15.69 -- 10.43
Janus Balanced Fund 9/92 10.56 9.00 6.60 9.70 11.25
Janus Fundamental
Equity Fund (7) 6/96 10.28 13.44 8.09 11.84 12.78
INTECH Risk-Managed
Stock Fund (9,10) 2/03 11.37 13.33 -- -- 18.47
----------------------------------------------------------------------
International/Global
Funds
----------------------------------------------------------------------
Janus Overseas Fund
(7,9,11,12) 5/94 47.21 32.21 19.19 14.42 15.31
Janus Worldwide Fund
(9) 5/91 17.90 9.61 3.89 6.82 11.34
Janus Global
Technology Fund (7,9) 12/98 7.98 6.82 1.16 -- 3.47
Janus Global Life
Sciences Fund (7,9) 12/98 (1.95) 7.90 2.27 -- 8.83
Janus Global
Opportunities Fund
(9) 6/01 11.19 10.10 9.21 -- 9.72
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid Cap Value
Fund - Inv. (5,7,14) 8/98 15.25 14.61 12.76 -- 17.58
Janus Small Cap Value
Fund - Inv. (2,5,13) 10/87 12.37 11.60 9.92 14.48 14.45
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Flexible Bond
Fund (7,15,16) 7/87 4.12 3.24 5.17 5.83 7.48
Janus High-Yield Fund
(5,7,9,15,16) 12/95 11.10 7.70 8.26 6.96 8.40
Janus Short-Term Bond
Fund (7,15,16,17) 9/92 4.21 2.55 3.03 4.58 4.66
Janus Federal Tax-
Exempt Fund
(15,16,17,18) 5/93 4.26 3.09 4.46 4.36 4.59
----------------------------------------------------------------------
Asset Allocation Funds
----------------------------------------------------------------------
Janus Smart Portfolio-
Growth 12/05 18.51 -- -- -- 18.45
Janus Smart Portfolio-
Moderate 12/05 14.28 -- -- -- 14.24
Janus Smart Portfolio-
Conservative 12/05 11.09 -- -- -- 11.05
----------------------------------------------------------------------
Notes:
(1) All figures unaudited.
(2) Closed to new investors.
(3) Effective December 31, 2006, Janus Mercury Fund changed its
name to Janus Research Fund. The Fund will continue to be managed with
the same investment objective and strategies.
(4) This Fund has been significantly impacted, either positively
or negatively, by investing in initial public offerings (IPOs).
(5) Due to certain investment strategies, some funds may have an
increased position in cash.
(6) Effective December 31, 2006, Janus Research Fund changed its
name to Janus Global Research Fund and adopted an additional
investment strategy to normally invest at least 40% of its net assets
in securities of issuers from different countries located throughout
the world, excluding the United States.
(7) The Fund will invest at least 80% of its net assets in the
type of securities described by its name.
(8) The Fund held approximately 18.16% of its assets in
Indian securities as of September 30, 2006 and the Fund has
experienced significant gains due, in part, to its investments in
India. While holdings are subject to change without notice, the Fund's
returns and NAV may be affected to a large degree by fluctuations in
currency exchange rates or political or economic conditions in India.
(9) A 2% redemption fee may be imposed on shares held for 3 months
or less. Performance shown does not reflect this redemption fee and,
if reflected, performance would have been lower.
(10) For certain periods, the Fund's performance reflects the
effect of expense waivers. Without the effect of these expense
waivers, the performance shown would have been lower.
(11) Returns have sustained significant gains due to market
volatility in the financials and consumer discretionary sectors.
(12) The Fund held approximately 14.83% and 14.86% of its assets
in India and Brazil securities, respectively, as of September 30,
2006, and the Fund has experienced significant gains due, in part, to
its investments in India and Brazil. While holdings are subject to
change without notice, the Fund's returns and NAV may be affected to a
large degree by fluctuations in currency exchange rates or political
or economic conditions in India and/or Brazil.
(13) Returns shown for Janus Small Cap Value Fund prior to April
21, 2003 are those of Berger Small Cap Value Fund.
(14) Returns shown for Janus Mid Cap Value Fund prior to April 21,
2003 are those of Berger Mid Cap Value Fund.
(15) Bond funds have the same interest rate, inflation, and credit
risks that are associated with the underlying bonds owned by the Fund.
Unlike owning individual bonds, there are ongoing fees and expenses
associated with owning shares of bonds funds. The return of principal
is not guaranteed due to net asset value fluctuation that is caused by
changes in the price of specific bonds held in the Fund and selling of
bonds within the fund by the portfolio manager.
(16) As of December 31, 2006, the 30-day SEC Yield was 3.94% on
Janus Federal Tax-Exempt Fund, 5.04% on Janus Flexible Bond Fund,
6.21% on Janus High-Yield Fund and 4.62% on Janus Short-Term Bond
Fund.
(17) Janus Capital has contractually agreed to waive Janus
Short-Term Bond Fund and Janus Federal Tax-Exempt Fund's total
operating expenses to the levels indicated in the prospectus until at
least March 1, 2007. Without such waivers, Janus Short-Term Bond Fund
and Janus Federal Tax-Exempt Fund's yield as of December 31, 2006
would have been 4.27% and 3.60%, respectively and total returns would
have been lower.
(18) Income may be subject to state or local taxes and to a
limited extent certain federal tax. Capital gains are subject to
federal, state and local taxes.
Differences between compared investments may include objectives,
sales and management fees, liquidity, volatility, tax features and
other features, which may result in differences in performance.
A fund's performance may be affected by risks that include those
associated with non-diversification, investments in foreign securities
and emerging markets, non-investment grade debt securities,
undervalued or overlooked companies, companies with relatively small
market capitalizations and investments in specific industries or
countries. Please see a Janus prospectus or janus.com for more
information about fund holdings and details.
The proprietary mathematical process used by Enhanced Investment
Technologies LLC ("INTECH") may not achieve the desired results. Since
the portfolio is regularly re-balanced, this may result in a higher
portfolio turnover rate, higher expenses and potentially higher net
taxable gains or losses compared to a "buy and hold" or index fund
strategy.
Because Janus Capital is the adviser to the Janus Smart Portfolios
and to the underlying funds held within the Portfolios, it is subject
to certain potential conflicts of interest when allocating the assets
of the Portfolios among underlying Janus funds.
Source: Janus Capital Group Inc.
Contact: Janus Capital Group Inc.
Shelley Peterson, 303-316-5625
James Aber, 303-336-4513