(PUB) Investing 2015

Morningstar Analyst Rating

03-20-15

Morningstar Pillars

Process

Performance

People

Parent

Price

Positive

Neutral

Morningstar Analyst Rating

Morningstar evaluates mutual funds based on five key pillars, which

its analysts believe lead to funds that are more likely to outperform

over the long term on a risk-adjusted basis.

Analyst Rating Spectrum

Œ „ ´ˇ ¨

Pillar Spectrum

Positive

Negative

Neutral

NAV

8.63

8.52

9.18

9.32

8.73

9.09

8.49

6.79

9.24

9.83

9.53

9.92

Total Return %

2.74

0.69

7.31

14.28

3.20

15.72

40.86

-19.32

1.35

11.10

2.77

9.38

+/-BC Agg Bnd

2.55

-5.28

9.33

10.07

-4.64

9.18

34.93

-24.56

-5.62

6.77

0.34

5.04

+/-BofAML HY Master

0.20

-1.81

-0.11

-1.31

-1.18

0.53

-16.65

7.07

-0.89

-0.62

0.03

-1.49

Income Return %

1.45

6.07

6.34

7.18

7.36

8.28

14.25

8.50

7.65

7.78

6.78

7.08

Capital Return %

1.29

-5.38

0.97

7.10

-4.16

7.44

26.61

-27.82

-6.30

3.32

-4.01

2.30

Total Rtn % Rank Cat

Income $

0.12

0.54

0.57

0.61

0.65

0.68

0.91

0.75

0.73

0.72

0.65

0.67

Capital Gains $

0.00

0.20

0.23

0.01

0.00

Expense Ratio %

0.86

0.88

0.86

0.89

0.86

0.90

0.87

0.96

Income Ratio %

6.07

6.21

7.05

7.28

8.42

12.44

8.26

7.54

7.37

6.65

6.96

Turnover Rate %

109

114

119

102

133

Net Assets $mil

1,268

1,237

1,361

1,417

1,069

859

959

392

553

532

509

563

Performance

03-31-15

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

2010

2011

2012

2013

2014

3.80 -0.16

6.49 4.87 15.72

3.34 0.64

-6.31 5.90

3.20

5.45 1.15

3.80 3.22 14.28

2.61 -1.54

2.50 3.64

7.31

3.33 2.12

-2.07 -2.56

0.69

Trailing

Total

+/- BC +/- BofAML %Rank Growth of

Return% Agg Bnd HY Master

Cat

$10,000

3 Mo

6 Mo

1 Yr

3 Yr Avg

5 Yr Avg

10 Yr Avg

15 Yr Avg

2.74 2.55

0.20

18 10,274

0.12 -0.26

-1.33

70 10,012

0.12 -0.58

-1.93

71 10,012

6.36 5.79

-1.11

55 12,032

7.86 7.20

-0.54

35 14,598

7.31 5.20

-0.73

27 20,249

6.93 4.36

-0.67

30 27,321

Tax Analysis

Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

3 Yr (estimated)

5 Yr (estimated)

10 Yr (estimated)

3.29

2.89

4.90

2.74

4.24

2.86

Potential Capital Gain Exposure: -3% of assets

Rating and Risk

Time Load-Adj

Morningstar

Period Return % Rtn vs Cat

Risk vs Cat

Risk-Adj Rating

1 Yr

0.12

3 Yr

6.36

Avg

5 Yr

7.86

Avg

10 Yr

7.31

+Avg

-Avg

Incept

7.79

Other Measures

Standard Index

Best Fit Index

BC Agg Bnd Credit Suisse HY USD

Alpha

4.5

-0.5

Beta

0.56

0.98

R-Squared

Standard Deviation

4.35

Mean

6.36

Sharpe Ratio

1.43

Morningstar’s Take

by Sumit Desai, CFA 03-20-15

Janus High-Yield’s moderate approach to high-yield

bonds has led to attractive long-term returns while

keeping volatility in check. Its strong management,

bottom-up process, and historical results earn it a

Morningstar Analyst Rating of Bronze.

Gibson Smith, Janus’ CIO of fixed income, has

managed this fund since 2003, and Darrell Watters

was appointed as comanager in 2007. They’re

supported by a team of 15 credit analysts organized by

sector. A key component of the strategy is focused on

sector and credit quality rotation, paring back risk

when the team grows more concerned with the macro

environment and selectively adding risk back when

fundamentals begin to improve.

Individual security selection focuses on cash flow

generation and the firms’ management intentions.

Specifically, they look for management teams that

have a track record of reducing debt. The potential for

debt reduction led Smith and Watters to an

overweighting to the energy sector throughout 2014;

this positioning held the fund back as oil prices

plunged in the second half of 2014. The fund lost 4.6%

in the second half of 2014 versus a 3.6% decline for

the average high-yield peer, and its 0.7% return for

the full year trailed 65% of its peers. As oil prices

reset, the managers shed lower-quality energy names,

and overall exposure to the energy sector was reduced

to around 16% of assets from around 20%.

Aside from 2014, the fund has shone during periods

of market volatility. For example, Smith and Watters

took a protective stance ahead of the 2008 financial

crisis; as a result, the fund lost 7 percentage points

less than its average high-yield rival. A similar

maneuver prior to 2011’s volatile third quarter also

proved timely and helped mute the fund’s losses later

in the year. Since Smith took over the fund in

December 2003, the portfolio has bested almost 60%

of the high-yield bond Morningstar Category, returning

7.3% annually compared with 6.5% for the average

peer through February 2015. Importantly, the fund has

done so with volatility meaningfully lower than its

average peer’s.

Address:

Janus Investment Fund

Denver, CO 80206

877-335-2687

Web Address:

www.janus.com

Inception:

12-29-95

Advisor:

Janus Capital Management LLC

Subadvisor:

None

NTF Plans:

Fidelity Retail-NTF, Schwab OneSource

Minimum Purchase:

$2500

Add: $0 IRA: $0

Min Auto Inv Plan:

Add:

Sales Fees:

No-load

Management Fee:

0.65% mx./0.55% mn., 0.25%A

Actual Fees:

Mgt:0.56% Dist:

Expense Projections:

3Yr:$278

5Yr:$482 10Yr:$1073

Income Distribution:

Monthly

Data through March 31, 2015

Janus High-Yield T

Ticker Status Yield SEC Yield Total Assets Mstar Category

JAHYX Open 6.0% 5.72% $2,214 mil

High Yield Bond

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 03-15

Historical Profile

Return

Risk

Rating

Above Avg

Average

Above Avg

Investment Style

Fixed Income

Income Rtn %Rank Cat

Manager Change

Partial Manager Change

Growth of $10,000

Investment Values of

Fund

Investment Values of

BC Agg Bnd

Performance Quartile

(within Category)

History

10.0

12.5

15.0

18.0

20.5

Portfolio Analysis

12-31-14

Date of

Amount

Value % Net

Total Fixed-Income:173

Maturity

$000

$000 Assets

Ads Tactical 144A 11%

04-01-18 44,361 43,030 1.95

Supervalu 6.75%

06-01-21 40,317 39,611 1.80

Chesapeake Engy 6.125%

02-15-21 36,306 38,121 1.73

Blackboard 144A 7.75%

11-15-19 34,222 34,308 1.56

Landrys 144A 9.375%

05-01-20 31,571 33,465 1.52

Numericable Grp Sa 144A

05-15-22 30,253 30,419 1.38

Xpo Logistics 144A 7.875

09-01-19 24,942 26,064 1.18

Royal Bk Of Scotland 5.1

05-28-24 24,742 25,167 1.14

Fage Dairy Ind S A 144A

02-01-20 24,083 25,167 1.14

Kennedy-Wilson 5.875%

04-01-24 24,805 24,867 1.13

Simmons Foods Inc / 144A

10-01-21 24,769 24,336 1.10

Commscope Hldg Co 144A 6

06-01-20 23,382 24,083 1.09

Wok Acquisition 144A 10.

06-30-20 23,944 23,884 1.08

Markwest Engy Partners L

07-15-23 24,381 23,467 1.06

Howard Hughes 144A 6.875

10-01-21 22,380 23,163 1.05

Altice Sa 144A 7.75%

05-15-22 23,074 23,117 1.05

Roc Fin Llc / Roc Fin 14

09-01-18 21,147 22,310 1.01

Delta 2 Lux Sarl Lpar 2.

07-29-22 22,032 21,371 0.97

Mohegan Tribal Gaming Au

09-01-21 20,878 21,296 0.97

Florida East Coast Hldgs

05-01-19 21,047 20,837 0.95

Current Investment Style

Avg Eff Duration

3.8 Yrs

Avg Eff Maturity

5.9 Yrs

Avg Credit Quality

Avg Wtd Coupon

7.47%

Avg Wtd Price

173.06% of par

figure provided

by fund

Duration

Ltd Mod Ext

Quality

High

Med Low

Special Securities

Restricted/Illiquid Secs

Exotic Mortgage-Backed

Emerging-Markets Secs

Trace

Options/Futures/Warrants

Credit Analysis

% bonds 12-31-14

AAA

BBB

Below B 19

NR/NA 4

Sector Breakdown

% of assets

Government

Corporate Bond

Bank Loan

Convertible

Preferred

Agency MBS

Non-Agency Residential MBS 0

Commercial MBS

Asset-Backed

Covered Bond

Municipal

Cash & Equivalents

Other

Composition - Net

Cash

4.3

Bonds 91.9

Stocks 0.9

Other

2.9

Coupon Range

% of Bonds Rel Cat

1.00=Category Average

0% PIK

0.7 1.0

0% to 8%

68.7 1.1

8% to 11%

29.2 0.9

11% to 14%

1.4 0.3

More than 14%

0.0 0.0

timely. Pastperformance is no guarantee of future results.Access updated reportsat

Toorder reprints, call312-696-6100.

mfb.morningstar.com.

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