Janus Announces First Quarter 2008 Results

Janus Capital Group Inc. (NYSE: JNS) today reported first quarter net income from continuing operations of $39.0 million, or $0.24 per diluted share, compared with net income from continuing operations of $51.6 million, or $0.30 per diluted share,2 in the fourth quarter 2007 and $38.0 million, or $0.20 per diluted share, in the first quarter 2007. The company’s operating margin from continuing operations for the first quarter 2008 was 31.8% compared with 29.0% for the fourth quarter 2007 and 27.8% for the first quarter 2007. Flows and Assets Under Management Average assets under management during the first quarter decreased 8.6% to $189.7 billion compared with $207.6 billion during the fourth quarter 2007. At March 31, 2008, the company’s total assets under management were $187.6 billion compared with $206.7 billion at December 31, 2007. The decrease in assets during the first quarter reflects $17.0 billion of net market depreciation and fund performance, long-term net outflows of $1.5 billion and money market net outflows of $0.6 billion. Janus’ INTECH subsidiary had long-term net outflows of $1.1 billion during the first quarter 2008 compared with long-term net inflows of $0.1 billion in the fourth quarter last year. Excluding INTECH, Janus had long-term net outflows during the first quarter this year of $0.4 billion compared with long-term net inflows of $3.1 billion in the previous quarter. The first quarter long-term net outflows included the redemption of a $1.1 billion fixed-income mandate. Investment Management Despite challenging market conditions, Janus’ relative investment performance remained strong during the first quarter, with approximately 86%, 85% and 87% of Janus' mutual funds in the top half of their Lipper categories on a one-, three- and five-year total-return basis, respectively, as of March 31, 2008.3 In addition, 77% of Janus mutual funds have a 4- or 5-star Overall Morningstar RatingTM at March 31, 2008.4 Of the Janus-managed equity funds that were launched during the last three years or that have new managers, 82% rank in the top Lipper quartile on a since portfolio manager inception basis, as of March 31, 2008. "The last several months have been tough for most money managers, but we're encouraged that our products have weathered the turbulence well,” said CEO Gary Black. "Our investment team continues to deliver strong relative performance over multiple time periods.” Financial Discussion Financial Highlights (dollars in millions, except per share data or as noted)           Three Months Ended March 31, 2008 December 31, 2007 * March 31, 2007   Continuing Operations (Investment Management) Average Assets (in billions) $ 189.7 $ 207.6 $ 172.1 Ending AUM (in billions) $ 187.6 $ 206.7 $ 176.2 Revenues $ 281.2 $ 311.5 $ 247.9 Operating Expenses $ 191.7 $ 221.3 $ 179.0 Operating Income $ 89.5 $ 90.2 $ 68.9 Operating Margin 31.8% 29.0% 27.8%   Net Income $ 39.0 $ 51.6 $ 38.0   Diluted Earnings per Share $ 0.24 $ 0.30 $ 0.20   Shares Repurchased (in millions) 5.2 5.2 9.4 Cost of Shares Repurchased $ 134.2 $ 168.4 $ 200.2 Average Price $ 25.75 $ 32.21 $ 21.22 Total shares outstanding end of period (in millions) 162.7 166.3 185.3 * Net income and diluted earnings per share for fourth quarter 2007 reflect a post-earnings revision of $10.0 million and $0.06, respectively, for an impairment charge related to the Stanfield Victoria Funding LLC securities. Continuing Operations First quarter 2008 revenues of $281.2 million decreased 9.7% from the previous quarter due to lower average assets under management driven primarily by declining markets. Operating expenses decreased $29.6 million, or 13.4%, from the previous quarter as a result of lower revenue-based compensation, long-term incentive compensation and distribution expenses. The decline in long-term incentive compensation is attributable to a fourth quarter charge of $17.0 million associated with departure-related accelerated vesting of awards. Fourth quarter operating expenses also included a $5.0 million insurance recovery for legal expenses incurred in prior periods. Non-operating items for the first quarter 2008 were impacted by a mark-to-market loss of $9.5 million on Janus’ consolidated seed capital investments while the fourth quarter 2007 included a $17.6 million mark-to-market gain. Fourth quarter 2007 non-operating items also reflect an $18.2 million impairment charge associated with an investment in securities issued by Stanfield Victoria Funding LLC. Acquisition / Disposition On March 31, 2008, Janus increased its ownership of INTECH to approximately 89.5% with the acquisition of an additional 3% interest for $60.7 million. On April 9, 2008, Rapid Solutions Group’s ("RSG”) digital print operations were sold to Bowne & Co., Inc. The disposition of RSG’s digital and offset operations is not expected to have a material impact on Janus’ second quarter 2008 results. Capital and Liquidity At March 31, 2008, Janus had stockholders’ equity of $1.6 billion, cash and investments of $473 million and $1.1 billion of outstanding debt. As part of its capital and liquidity management, Janus reduced its outstanding shares by 2.1% during the first quarter by repurchasing 5.2 million shares of its common stock at an average price of $25.75 per share and a total cost of $134 million. First Quarter 2008 Earnings Call Information Janus will discuss its results during a conference call on Thursday, April 24 at 10 a.m. Eastern Daylight Time. The call-in number will be 877-301-7574. Anyone outside the U.S. or Canada should call 706-643-3623. The slides used during the presentation will be available in the investor relations section of the Janus Capital Group Web site (www.janus.com/ir) approximately one hour prior to the call. For those unable to join the conference call at the scheduled time, an audio replay will be available on www.janus.com/ir. About Janus Capital Group Inc. 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 March 2008, Janus managed $187.6 billion in assets for more than four million shareholders, clients and institutions around the globe. Outside the U.S., Janus has offices in London, Tokyo, Hong Kong and Singapore. Janus Capital Group consists of Janus Capital Management LLC and Enhanced Investment Technologies, LLC (INTECH). 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 (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 (4/08). 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, 2007, 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 Funds included in the analysis are Janus Retail (JIF), Janus Adviser Series Class S Shares (JAD) and Janus Aspen Series Institutional Shares (JAS). The number of funds in each trust is 26, 20 and 12, respectively. Complete Lipper rankings are based on total returns and are on pages 11 and 12. 2 Net income and diluted earnings per share for the fourth quarter 2007 reflect a post-earnings revision of $10.0 million and $0.06, respectively, for an impairment charge related to the Stanfield Victoria Funding LLC securities. 3 Funds included in the analysis are JIF, JAD and JAS. The number of funds in each trust is 26, 20 and 12, respectively. Complete Lipper rankings are based on total returns and are on pages 11 and 12. 4 Funds included in the Morningstar analysis were JIF, JAD and JAS with at least a three-year history. Morningstar rankings are based on risk-adjusted return. Complete Morningstar ratings are on pages 13-15. JANUS CAPITAL GROUP INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data)             Three Months Ended March 31, 2008 December 31, 2007 March 31, 2007 Investment Management Revenues: Investment management fees $ 225.5 $ 247.9 $ 200.9 Performance fees 5.6 8.1 2.5 Shareowner servicing fees and other 50.1   55.5   44.5   Total 281.2   311.5   247.9     Investment Management Operating Expenses: Employee compensation and benefits 91.8 95.4 87.4 Long-term incentive compensation 12.1 30.4 18.7 Marketing and advertising 7.8 9.3 5.1 Distribution 36.3 41.2 30.6 Depreciation and amortization 9.9 9.1 7.1 General, administrative and occupancy 33.8   35.9   30.1   Total 191.7   221.3   179.0     Investment Management Operating Income 89.5 90.2 68.9   Interest expense (18.9 ) (18.9 ) (9.5 ) Investment gains (losses), net (9.5 ) 3.0 0.8 Other income, net 4.2 9.1 5.6 Income tax provision (24.5 ) (28.1 ) (23.4 ) Equity in earnings of unconsolidated affiliate 2.0 1.9 1.7 Minority interest in consolidated earnings (3.8 ) (5.6 ) (6.1 )   Income from Continuing Operations * 39.0 51.6 38.0   Loss from Discontinued Operations (1.6 ) (31.9 ) (2.4 )       Net income * $ 37.4   $ 19.7   $ 35.6       Diluted weighted average shares outstanding (in millions) 164.0 170.9 188.6 Diluted earnings per share: Continuing operations * $ 0.24 $ 0.30 $ 0.20 Discontinued operations (0.01 ) (0.19 ) (0.01 ) Diluted earnings per share * $ 0.23   $ 0.12   $ 0.19     Average Assets Under Management (in billions) $ 189.7 $ 207.6 $ 172.1   * Net income and diluted earnings per share for fourth quarter 2007 reflect a post-earnings revision of $10.0 million and $0.06, respectively, for the impairment charge related to the Stanfield Victoria Funding LLC securities. JANUS CAPITAL GROUP INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions)       March 31, December 31, 2008 2007 Assets Cash and cash equivalents $ 270.3 $ 480.7 Marketable securities 202.9 210.7 Other assets 335.8 344.9 Property and equipment, net 46.8 46.5 Intangibles and goodwill, net 2,510.1 2,451.5 Assets related to discontinued operations 28.1 29.8 Total Assets $ 3,394.0 $ 3,564.1   Liabilities and Stockholders' Equity Debt $ 1,127.8 $ 1,127.7 Other liabilities 205.0 297.8 Deferred income taxes 412.5 404.3 Liabilities related to discontinued operations 11.6 10.8 Stockholders' equity 1,637.1 1,723.5 Total Liabilities and Stockholders' Equity $ 3,394.0 $ 3,564.1 UNAUDITED CONDENSED CASH FLOW INFORMATION CONTINUING OPERATIONS (dollars in millions)           Three Months Ended March 31, December 31, March 31, Cash provided by (used in): 2008   2007   2007   Operating activities $ 1.9 $ 87.0 $ (19.3 ) Investing activities (76.4 ) (67.1 ) (20.8 ) Financing activities (135.9 ) (144.6 ) (208.9 ) Net change during period $ (210.4 ) $ (124.7 ) $ (249.0 )   JANUS CAPITAL GROUP INC. ASSETS & FLOWS BY INVESTMENT DISCIPLINE (dollars in billions)       Three Months Ended March 31,2008 December 31,2007 March 31,2007 Growth/Blend Beginning of period assets $ 83.5 $ 79.1 $ 64.4 Sales 5.9 6.3 3.8 Redemptions 5.6   3.7   4.5   Net sales (redemptions) 0.2 2.6 (0.7 ) Market appreciation (6.9 ) 1.8   2.0   End of period assets $ 76.8   $ 83.5   $ 65.7     Global/International Beginning of period assets $ 24.9 $ 24.4 $ 18.4 Sales 1.1 2.1 1.8 Redemptions 1.8   1.3   1.3   Net sales (redemptions) (0.7 ) 0.8 0.5 Market appreciation (2.1 ) (0.3 ) 0.6   End of period assets $ 22.1   $ 24.9   $ 19.5     Mathematical/Quantitative Beginning of period assets $ 69.7 $ 69.6 $ 62.3 Sales 1.8 4.0 5.0 Redemptions 2.9   3.9   1.9   Net sales (redemptions) (1.1 ) 0.1 3.1 Market appreciation (7.5 ) -   0.8   End of period assets $ 61.2   $ 69.7   $ 66.3     Fixed Income Beginning of period assets $ 4.9 $ 5.2 $ 4.6 Sales 0.5 0.2 0.6 Redemptions 1.6   0.5   0.5   Net sales (redemptions) (1.1 ) (0.3 ) 0.1 Market appreciation -   -   0.1   End of period assets $ 3.8   $ 4.9   $ 4.8     Alternatives Beginning of period assets $ 0.8 $ 0.6 $ 0.3 Sales 0.7 0.3 0.1 Redemptions 0.1   -   -   Net sales (redemptions) 0.6 0.3 0.1 Market appreciation -   -   -   End of period assets $ 1.4   $ 0.8   $ 0.4     Value Beginning of period assets $ 10.1 $ 10.6 $ 10.2 Sales 1.3 0.5 0.8 Redemptions 0.8   0.7   0.8   Net sales (redemptions) 0.5 (0.2 ) - Market appreciation (0.5 ) (0.3 ) 0.3   End of period assets $ 10.1   $ 10.1   $ 10.5     Money Market Beginning of period assets $ 12.8 $ 18.5 $ 7.5 Sales 24.9 35.7 19.1 Redemptions 25.5   41.4   17.6   Net sales (redemptions) (0.6 ) (5.7 ) 1.5 Market appreciation -   -   -   End of period assets $ 12.2   $ 12.8   $ 9.0       JANUS CAPITAL GROUP INC. ASSETS & FLOWS BY INVESTMENT DISCIPLINE (dollars in billions)   Three Months Ended March 31, 2008 December 31, 2007 March 31, 2007 Total Beginning of period assets $ 206.7 $ 208.0 $ 167.7 Sales 36.2 49.1 31.2 Redemptions 38.3   51.6   26.6   Net sales (redemptions) (2.1 ) (2.5 ) 4.6 Market appreciation (17.0 ) 1.2   3.9   End of period assets $ 187.6   $ 206.7   $ 176.2     Total Excluding Money Markets Beginning of period assets $ 194.0 $ 189.5 $ 160.2 Sales 11.3 13.4 12.1 Redemptions 12.8   10.2   9.0   Net sales (redemptions) (1.5 ) 3.2 3.1 Market appreciation (17.0 ) 1.2   3.9   End of period assets $ 175.4   $ 194.0   $ 167.2     Total Excluding Mathematical/Quantitative & Money Markets Beginning of period assets $ 124.2 $ 119.9 $ 97.9 Sales 9.5 9.4 7.1 Redemptions 9.9   6.3   7.1   Net sales (redemptions) (0.4 ) 3.1 - Market appreciation (9.5 ) 1.2   3.1   End of period assets $ 114.2   $ 124.2   $ 100.9     Each line has been rounded on the schedule individually to increase the accuracy of the amounts presented. Therefore totals and subtotals may not foot. Janus Investment Fund ("JIF")     Lipper Rankings Based on Total Returns as of 3/31/08   Lipper Rankings Based on Total Returns as of 3/31/08   Lipper Rankings Based on Total Returns as of 3/31/08   1-Year   3-Year   5-Year   10-Year Since PM Inception PM Inception Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Lipper Category           Growth Funds                                                 Janus Twenty Fund (1) Jan-08 Large-Cap  Growth Funds 1 3/739 1 1/615 1 1/521 2 3/247 ‡   0 Janus  Fund Oct-07 Large-Cap  Growth Funds 45 328/739 30 183/615 22 113/521 38 92/247 ‡   0 Janus Orion  Fund Dec-07 Multi-Cap  Growth Funds 2 10/527 2 5/403 1 1/343 - - ‡   0 Janus Research  Fund Jan-06 Large-Cap  Growth Funds 17 120/739 4 24/615 3 12/521 3 7/247 2 9/677 Janus Enterprise  Fund Oct-07 Mid-Cap  Growth Funds 12 71/607 7 31/503 10 38/414 38 68/178 ‡   0 Janus Venture  Fund (1) Jan-01 Small-Cap  Growth Funds 62 370/598 26 120/475 7 25/393 25 46/183 22 65/306 Janus Triton  Fund   Jun-06   Small-Cap  Growth Funds   8   47/598   1   3/475   -   -   -   -   3   13/544 Core Funds                                                 Janus Contrarian  Fund Feb-00 Multi-Cap Core Funds 2 16/869 1 1/663 1 2/504 - - 5 12/296 Janus Growth and Income  Fund Nov-07 Large-Cap Core Funds 25 207/828 21 140/685 28 159/567 7 19/295 ‡   0 Janus Balanced  Fund Apr-05 Mixed-Asset Target Alloc. Mod. Funds 1 1/457 1 2/331 22 50/235 4 5/135 1 1/355 Janus Fundamental Equity Fund Nov-07 Large-Cap Core Funds 20 164/828 3 20/685 7 38/567 1 2/295 ‡   0 INTECH Risk-Managed  Stock Fund   Feb-03   Multi-Cap Core Funds   70   606/869   63   416/663   34   167/504   -   -   37   182/503 Global/ International  Funds                                                 Janus Overseas  Fund (1) Jun-03 Inter- national Funds 1 9/1105 1 1/811 1 1/683 3 8/325 1 1/687 Janus Worldwide  Fund Jun-04 Global Funds 52 230/448 79 271/343 93 252/271 80 98/123 75 228/304 Janus Global Life Sciences  Fund Apr-07 Health/ Biotechnology Funds 8 15/193 20 30/154 21 30/142 - - ‡   0 Janus Global Technology  Fund Jan-06 Science & Technology Funds 33 87/270 23 55/241 38 84/221 - - 29 73/258 Janus Global Research  Fund Feb-05 Global Funds 4 15/448 3 10/343 - - - - 4 10/329 Janus Global Opportunities  Fund   Jun-01   Global Funds   49   216/448   93   318/343   47   127/271   -   -   21   43/210 Value Funds                                                 Janus Mid Cap Value Fund -  Inv (2) Aug-98 Mid-Cap Value Funds 5 14/330 9 22/256 19 37/203 - - 2 1/66 Janus Small Cap Value Fund -  Inv. (1,2)     Feb-97   Small-Cap Core Funds   10   77/795   24   149/626   48   229/485   12   22/183   10   13/129 Income Funds                                                 Janus Flexible Bond  und May-07 Intermediate Investment Grade Debt 8 39/552 6 25/467 12 45/396 33 62/192 ‡   0 Janus High-Yield  Fund Dec-03 High Current Yield Funds 50 224/453 35 133/381 78 258/332 20 31/160 42 147/350 Janus Short-Term  Bond Fund   May-07   Short Investment Grade Debt   18   45/263   17   34/210   12   19/162   31   26/84   ‡   0 Asset Allocation Funds                                                 Janus Smart Portfolio-  Growth Dec-05 Mixed-Asset Target Alloc. Growth Funds 5 29/667 - - - - - - 2 11/586 Janus Smart Portfolio-  Moderate Dec-05 Mixed-Asset Target Alloc. Mod. Funds 3 12/457 - - - - - - 5 16/389 Janus Smart Portfolio-  Conservative   Dec-05   Mixed-Asset Target Alloc. Cons. Funds   3   12/431   -   -   -   -   -   -   2   5/341 Data presented reflects past performance, which is no guarantee of future results. Lipper , a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period. Notes: (1) Closed to new investors. (2) Ranking is for the investor share class only; other classes may have different performance characteristics. ‡ In accordance with FINRA regulations, Lipper rankings cannot be publicly disclosed for time periods of less than one year. Janus Adviser Series ("JAD") Class S Shares   Lipper Rankings Based on Total Returns as of 3/31/08   Lipper Rankings Based on Total Returns as of 3/31/08   Lipper Rankings Based on Total Returns as of 3/31/08     1-Year   3-Year   5-Year   10-Year   Since PM Inception PM Inception Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Lipper Category         Growth  Funds                                                 Forty Fund Jan-08 Large-Cap Growth Funds 1 4/739 1 3/615 1 2/521 1 1/247 ‡   0 Mid Cap Growth  Fund Oct-07 Mid-Cap Growth Funds 12 69/607 6 29/503 11 42/414 42 74/178 ‡   0 Large Cap Growth  Fund Oct-07 Large-Cap Growth Funds 51 372/739 39 239/615 32 163/521 35 86/247 ‡   0 INTECH Risk- Managed Growth  Fund Jan-03 Multi-Cap Growth Funds 70 369/527 85 343/403 83 284/343 - - 82 279/340 Orion  Fund Dec-07 Mid-Cap Growth Funds 3 18/607 - - - - - - ‡   0 Small-Mid Growth  Fund   Jun-06   Small-Cap Growth Funds   9   52/598   -   -   -   -   -   -   3   16/544 Core Funds                                                 Balanced  Fund Apr-05 Mixed-Asset Target Alloc. Mod. Funds 3 18/667 7 34/539 39 166/425 4 7/228 7 39/559 Growth and Income  Fund Nov-07 Large-Cap Core Funds 30 248/828 30 203/685 40 227/567 - - ‡   0 Fundamental Equity Fund   Nov-07 Large-Cap Core Funds 18 149/828 4 21/685 8 40/567 1 1/295 ‡   0 Small Company Value  Fund Mar-02 Small-Cap Core Funds 66 524/795 40 249/626 60 288/485 - - 25 106/426 INTECH Risk- Managed Core Fund Jan-03 Multi-Cap Core Funds 71 611/869 65 425/663 36 179/504 - - 31 152/494 Contrarian  Fund   Aug-05   Multi-Cap Core Funds   7   57/869   -   -   -   -   -   -   1   3/708 Global/ International  Funds                                                 International Growth  Fund (1) Jun-03 International Funds 1 6/1105 1 3/811 1 2/683 2 6/325 1 2/687 Worldwide  Fund Jun-04 Global Funds 53 234/448 82 282/343 97 262/271 72 89/123 80 243/304 International Equity  Fund   Nov-06   International Funds   5   48/1105   -   -   -   -   -   -   3   30/1038 Value Funds                                                 Mid Cap  Value Fund Dec-02 Mid-Cap Value Funds 5 15/330 9 23/256 23 46/203 - - 24 48/201 INTECH Risk- Managed  Value Fund   Dec-05   Multi-Cap Value Funds   49   214/441   -   -   -   -   -   -   50   187/376 Alternative  Funds                                                 Long/Short  Fund (1)   Aug-06   Long/Short Equity Funds   5   4/86   -   -   -   -   -   -   5   3/64 Income  Funds                                                 Flexible  Bond Fund May-07 Intermediate Investment Grade Debt 9 48/552 10 45/467 19 73/396 34 65/192 ‡   0 High Yield  Fund   Aug-05   High Current Yield Funds   50   223/453   -   -   -   -   -   -   57   226/398 Rankings are for the Class S Shares only; other classes may have different performance characteristics. Note: (1) Closed to new investors. ‡ In accordance with FINRA regulations, Lipper rankings cannot be publicly disclosed for time periods of less than one year. Janus Aspen Series ("JAS") Institutional Shares   Lipper Rankings Based on Total Returns as of 3/31/08   Lipper Rankings Based on Total Returns as of 3/31/08   Lipper Rankings Based on Total Returns as of 3/31/08     1-Year   3-Year   5-Year   10-Year   Since PM Inception PM Inception Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Percen-tile Rank(%)   Rank / Total Funds Lipper Category           Growth Funds                                                 Large Cap Growth  Portfolio Oct-07 VA Large-Cap  Growth 35 71 / 204 26 49 / 193 27 45 / 166 42 23 / 55 ‡   0 Forty  Portfolio Dec-07 VA Large-Cap  Growth 1 1 / 204 1 1 / 193 1 1 / 166 2 1 / 55 ‡   0 Mid Cap Growth  Portfolio   Oct-07   VA Mid-Cap  Growth 5   7 / 155   3   3 / 140   10   11 / 120   40   13 / 32   ‡   0 Core Funds                                               Balanced  Portfolio Apr-05 VA Mixed-Asset Target Alloc  Mod. 1 1 / 133 2 1 / 90 11 8 / 73 5 2 / 41 2 1 / 98 Growth and Income  Portfolio Nov-07 VA Large-Cap  Core 22 45 / 206 18 31 / 176 33 52 / 161 - - ‡   0 Fundamental Equity  Portfolio   Nov-07   VA Large-Cap  Core   20   40 / 206   3   5 / 176   10   15 / 161   2   1 / 73   ‡   0 Global/ International  Funds                                                 Worldwide Growth  Portfolio   Jun-04 VA Global 36 37 / 104 77 61 / 79 95 64 / 67 73 21 / 28 76 59 / 77 International Growth  Portfolio (1) Jun-03 VA Inter-  national 1 2 / 245 1 1 / 209 1 1 / 188 4 3 / 87 1 1 / 198 Global Life Sciences  Portfolio Oct-04 VA Health/  Biotech-  nology 6 2 / 35 21 7 / 33 25 7 / 28 - - 3 1 / 33 Global Technology  Portfolio   Jan-06   VA Science & Technology   34   20 / 59   28   16 / 57   40   22 / 54   -   -   36   21 / 58 Value Funds                                                 Mid Cap Value  Portfolio   May-03   VA Mid-Cap  Value   3   2 / 68   12   7 / 58   -   -   -   -   2   1 / 53 Income Funds                                                 Flexible Bond  Portfolio   May-07   VA Inter- mediate Investment Grade  Debt   29   19 / 65   26   15 / 58   28   14 / 49   29   6 / 20   ‡   0 Data presented reflects past performance, which is no guarantee of future results. Lipper , a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period. Rankings are for the Institutional Shares only; other classes may have different performance characteristics. Note: (1) Closed to new investors. ‡ In accordance with FINRA regulations, Lipper rankings cannot be publicly disclosed for time periods of less than one year. Janus Investment Fund ("JIF")   The Overall Morningstar RatingTM is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating(TM) metrics.                                               Overall Rating Three-Year Rating Five-Year Rating Ten-Year Rating Fund Category Stars # of Funds Stars # of Funds Stars # of Funds Stars # of Funds                                       Janus Fund Large Growth Funds 3 1442 4 1442 3 1207 3 564 Janus Enterprise Fund Mid-Cap Growth Funds 4 827 5 827 5 694 2 305 Janus Growth and Income Fund Large Growth Funds 4 1442 3 1442 4 1207 5 564 Janus Research Fund Large Growth Funds 5 1442 5 1442 5 1207 4 564 Janus Orion Fund Mid-Cap Growth Funds 5 827 5 827 5 694 N/A Janus Twenty Fund (1) Large Growth Funds 5 1442 5 1442 5 1207 5 564 Janus Venture Fund (1) Small Growth Funds 3 681 4 681 4 561 2 268 Janus Triton Fund Small Growth Funds 5 681 5 681 N/A N/A Janus Global Research Fund World Stock Funds 5 460 5 460 N/A N/A Janus Global Life Sciences Fund Specialty-Health Funds 4 184 4 184 4 168 N/A Janus Global Technology Fund Specialty-Technology Funds 4 267 4 267 4 241 N/A Janus Overseas Fund (1) Foreign Large Growth Funds 5 179 5 179 5 156 4 73 Janus Worldwide Fund World Stock Funds 2 460 2 460 1 393 2 198 Janus Global Opportunities Fund World Stock Funds 2 460 1 460 3 393 N/A Janus Balanced Fund Moderate Allocation Funds 5 905 5 905 4 712 5 416 INTECH Risk-Managed Stock Fund Large Blend Funds 4 1664 3 1664 4 1314 N/A Janus Fundamental Equity Fund Large Blend Funds 5 1664 5 1664 4 1314 5 621 Janus Contrarian Fund Large Blend Funds 5 1664 5 1664 5 1314 N/A Janus Mid Cap Value Fund - Investor Shares (2) Mid-Cap Value Funds 5 287 5 287 5 215 N/A Janus Small Cap Value Fund - Investor Shares (1,2) Small Value Funds 4 336 4 336 3 261 4 98 Janus Flexible Bond Fund Intermediate-Term Bond Funds 4 974 5 974 4 830 3 433 Janus High-Yield Fund High Yield Bond Funds 3 464 3 464 2 401 4 205 Janus Short-Term Bond Fund Short-Term Bond Funds 4 383 4 383 4 291 3 164 Janus Smart Portfolio-Growth Moderate Allocation Funds N/A N/A N/A N/A Janus Smart Portfolio-Moderate Moderate Allocation Funds N/A N/A N/A N/A Janus Smart Portfolio-Conservative Conservative Allocation Funds     N/A     N/A     N/A     N/A   Percent of funds rated 4 / 5 Stars 78.3% 78.3% 76.2% 57.1% Data presented reflects past performance, which is no guarantee of future results. © 2008 Morningstar, Inc. All Rights Reserved. Notes: (1) Closed to new investors. (2) Rating is for this share class only; other classes may have different performance characteristics. For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Janus Adviser Series ("JAD") S Shares   The Overall Morningstar RatingTM is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating(TM) metrics.                                               Overall Rating Three-Year Rating Five-Year Rating Ten-Year Rating Fund Category Stars # of Funds Stars # of Funds Stars # of Funds Stars # of Funds                                       Balanced Fund Moderate Allocation Funds 5 905 5 905 4 712 5 416 Contrarian Fund Large Blend Funds N/A N/A N/A N/A Fundamental Equity Fund Large Blend Funds 5 1664 5 1664 4 1314 5 621 Flexible Bond Fund Intermediate-Term Bond Funds 4 974 4 974 4 830 3 433 International Equity Fund Foreign Large Growth Funds N/A N/A N/A N/A International Growth Fund Foreign Large Growth Funds 5 179 5 179 5 156 5 73 Forty Fund Large Growth Funds 5 1442 5 1442 5 1207 5 564 Growth & Income Fund Large Growth Funds 3 1442 3 1442 3 1207 N/A Floating Rate High Income Bank Loan Funds N/A N/A N/A N/A Global Real Estate Fund Specialty-Real Estate Funds N/A N/A N/A N/A Global Research Fund World Stock Funds N/A N/A N/A N/A Long/Short Fund (1) Long-Short Funds N/A N/A N/A N/A High Yield Fund High Yield Bond Funds N/A N/A N/A N/A International Growth Fund (1) Foreign Large Growth Funds 5 179 5 179 5 156 5 73 Large Cap Growth Fund Large Growth Funds 3 1442 3 1442 3 1207 3 564 Mid Cap Growth Fund Mid-Cap Growth Funds 4 827 5 827 5 694 2 305 Mid Cap Value Fund Mid-Cap Value Funds 4 287 5 287 4 215 N/A Orion Fund Mid-Cap Growth Funds N/A N/A N/A N/A Risk-Managed Core Fund Large Blend Funds 4 1664 3 1664 4 1314 N/A Risk-Managed Growth Fund Large Growth Funds 3 1442 2 1442 3 1207 N/A Risk-Managed Value Fund Large Value Funds N/A N/A N/A N/A Small Company Value Fund Small Value Funds N/A N/A N/A N/A Small-Mid Growth Fund Mid-Cap Growth Funds N/A N/A N/A N/A Worldwide Fund   World Stock Funds       N/A       N/A       N/A       N/A   Percent of funds rated 4 / 5 Stars 75.0% 66.7% 75.0% 62.5% Data presented reflects past performance, which is no guarantee of future results. © 2008 Morningstar, Inc. All Rights Reserved. Ratings are for Class S Shares only; other classes may have different performance characteristics. Note: (1) Closed to new investors. For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Janus Aspen Series ("JAS") Institutional Shares   The Overall Morningstar RatingTM is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating(TM) metrics.                   Overall Rating Three-Year Rating Five-Year Rating Ten-Year Rating Fund Category Stars # of Funds Stars # of Funds Stars # of Funds Stars # of Funds                                       Balanced Fund Moderate Allocation Funds 5 905 5 905 4 712 5 416 Flexible Bond Fund Intermediate-Term Bond Funds 5 974 5 974 5 830 4 433 Forty Fund Large Growth Funds 5 1442 5 1442 5 1207 5 564 Fundamental Equity Fund Large Blend Funds 4 1664 4 1664 4 1314 5 621 Global Life Sciences Fund Specialty-Health Funds 4 184 5 184 4 168 N/A Global Technology Fund Specialty-Technology Funds 4 267 4 267 4 241 N/A Growth & Income Fund Large Growth Funds 4 1442 3 1442 4 1207 N/A International Growth Fund (1) Foreign Large Growth Funds 5 179 5 179 5 156 4 73 Large Cap Growth Fund Large Growth Funds N/A N/A N/A N/A Mid Cap Growth Fund Mid-Cap Growth Funds N/A N/A N/A N/A Mid Cap Value Fund Mid-Cap Value Funds N/A N/A N/A N/A Worldwide Fund   World Stock Funds   2   460   2   460   1   393   2   198   Percent of funds rated 4 / 5 Stars 88.9% 77.8% 88.9% 83.3% Data presented reflects past performance, which is no guarantee of future results. © 2008 Morningstar, Inc. All Rights Reserved. Ratings are for Institutional Shares only; other classes may have different performance characteristics. Note: (1) Closed to new investors. For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)