4Q17 Fixed Income BOND FUND FLEXIBLE. 30 Years of Fundamental Fixed Income Investing A: JDFAX C: JFICX I: JFLEX N: JDFNX R: JDFRX S: JADFX T: JAFIX

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1 4Q17 Fixed Income FLEXIBLE BOND FUND 30 Years of Fundamental Fixed Income Investing A: JDFAX C: JFICX I: JFLEX N: JDFNX R: JDFRX S: JADFX T: JAFIX

2 Flexible Bond Fund Portfolio at a Glance Highlights Dynamic Core Bond Fund that actively allocates across fixed income sectors. Designed to generate risk-adjusted returns and capital preservation through bottom-up, fundamentally driven security selection. Diversification potential through low correlation to equities. Transparency through a back to basics approach. The Fund is not reliant on derivatives, so investors can see what they own. Portfolio Position Core Core Janus Henderson Fundamental Fixed Income Overview 30 Year History $36.6 Billion AUM (as of 9/30/17) Integrated Fixed Income & Equity Research Quantum Global Proprietary Investment Research & Risk Management System Global Trading & Resources Portfolio Management The portfolio managers make investment decisions across multiple sectors of fixed income, but often have a bias toward credit investing or individual company investing because that is where they believe the firm s in-depth fundamental research can give them a competitive advantage. Darrell Watters Head of U.S. Fundamental Fixed Income, Portfolio Manager Mayur Saigal Head of Fundamental Fixed Income Risk, Portfolio Manager Michael Keough Portfolio Manager Page 2 of 8

3 Given the complex nature of today s fixed income markets and the potential for heightened volatility, having an active, risk-focused manager could be important for preserving investor capital. Active Management Has Shined in Rising Rate Environments Given the inverse correlation between rates and bond prices (when rates rise, prices typically fall), investors should consider an active fixed income manager who can proactively adjust their fund ahead of potential rising rates or market volatility. Flexible Bond Fund Has Historically Navigated Interest Rate Risk 10-Year Treasury Yields (December 31, December 31, 2017) 10-Year Treasury Yield (%) Performance Difference Fund vs. Index (%) The Fund Employs Three Tools to Navigate Rising Interest Rates 1. Active & Flexible Duration 2. Careful Security Selection & Avoidance 3. Not Tied to the Benchmark Rising Rate Time Periods 10/1/93-11/30/94 10/1/98-1/31/00 7/1/05-6/30/06 1/1/09-12/31/09 7/24/12-12/31/13 10-Year Treasury Yield Change +2.57% +2.37% +1.09% +1.63% +1.65% Flexible Bond Fund (Class I Shares) Bloomberg Barclays U.S. Aggregate Bond Index Performance Morningstar Intermediate-Term Bond Category Average Performance Source: Morningstar, Inc % 0.80% -0.87% 12.61% 1.17% -3.03% -0.61% -0.81% 5.93% -1.13% -3.89% -1.11% -0.88% 13.47% 0.33% Past performance is no guarantee of future results. See back page for additional performance information and important disclosures. Page 3 of 8

4 Flexible Bond Fund Not owning parts of the market and not needing to own a sector just because it is in the index has paid off over time. Know Why You Own the Sectors You Own With market uncertainty and a potentially volatile rate environment, there are times when we believe investing in some fixed income sectors just doesn t make sense. Flexible Bond Fund is managed with high conviction and is not tied to its benchmark. We won t own areas of the market where we feel we are not properly compensated for the risk we are taking, regardless of their weight in the benchmark. Our Conviction Shows in Dynamic Sector Allocation Portfolio composition over ten years demonstrates the dynamic nature of the portfolio. Flexible Bond Fund Allocation Bloomberg Barclays U.S. Aggregate Bond Index Allocation High-Yield portion of the Fund U.S. Treasurys Sector Allocation 80% 70% In late-2007/early-2008 we believed there was too much risk in the financial systems and positioned the portfolio more defensively by buying Treasurys. 60% 50% 40% 30% 20% 10% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Credit Sector Allocation In December 2008, we believed that we had the most opportunity in corporate credit. 80% 70% 60% 50% 40% 30% 20% 10% 0% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Securitized Products Sector Allocation 50% While others believed there were opportunities in mortgages in June 2009, we moved entirely out of this sector because we didn t believe we could get compensated for the additional risk. 40% 30% 20% 10% 0% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Agency Sector Allocation Similarly, since December 2009, we have avoided Agencies due to stretched valuations and the downside risk associated with a potential conservatorship exit. 12% 10% 8% 6% 4% 2% 0% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Page 4 of 8

5 Weathering Volatile Fixed Income Markets is Important Fixed income should be a foundation for a well-diversified portfolio. Historically, investors have thought of their fixed income allocation as the income-generating, lower volatility piece of their portfolio. However, not all portfolios have a stable history of weathering market volatility that investors should demand. Strong, Competitive Performance Versus Both Peers and the Index Calendar Year Returns ( ) Flexible Bond Fund (Class I Shares) Bloomberg Barclays U.S. Aggregate Bond Index Morningstar Intermediate-Term Bond Category Median Credit Crisis (1/1/ /31/2008) 2013 Taper Tantrum (1/1/ /31/2013) 114% Difference in Max Drawdown Between the Fund (-4.6%) and Peer Median (-8.2%) 29% Difference in Max Drawdown Between the Fund (-3.1%) and Peer Median (-4.1%) Source: Morningstar, Inc. Source: Morningstar, Inc. Janus Henderson s active approach and unwavering focus on capital preservation has led to strong relative returns in a variety of markets like the difficult credit market of 2008 and the taper tantrum of 2013 when yields rose in reaction to Federal Reserve plans to curb bond purchases. Flexible Bond Fund is the only fund that was in both the Top 10% of Morningstar Intermediate-Term Bond funds in 2008 and Top 20% in 2013, based on total returns. Class I Shares ranked 62/809 for 2008 and 118/927 for Source: Morningstar, Inc. Max Drawdown is the peak-to-trough decline during a specific period. Past performance is no guarantee of future results. See back page for additional performance information and important disclosures. Page 5 of 8

6 Flexible Bond Fund Investors should consider managers who make risk management a central part of their process in today s volatile markets. Focusing On Risk Has Not Held Us Back It shouldn t come as a surprise, but when funds are able to provide steady streams of returns, they may be able to do so with less risk. That has historically been the case with Flexible Bond Fund, which over time has provided strong returns with less risk than peers. This is the potential payoff when you take an active, risk-aware approach to portfolio construction. By not being tied to the index and standing by our decision to not own certain investments, we have helped provide a lower-volatility portfolio than peers. Competitive Returns with Less Volatility than Majority of Peers Flexible Bond Fund (Class I Shares) Compared to Index and Peers (10 Years: 12/31/07-12/31/17) 6.5% 6.0% Reward: Annualized Return 5.5% 5.0% 4.5% 4.0% 3.5% Flexible Bond Fund Bloomberg Barclays U.S. Aggregate Bond Index Morningstar Intermediate-Term Bond Peer Group Median 3.0% 2.5% 3.0% 3.5% 4.0% 4.5% Risk: Standard Deviation 100% Positive Returns in Quarterly Rolling 3-year Periods Since Inception (7/87), with Average Annualized Returns of 6.96% Source: Morningstar, Inc. (As of 12/31/17) Risk Statistics vs. Bloomberg Barclays U.S. Aggregate Bond Index (10 Years: 12/31/07-12/31/17) Fund (Class I Shares) Index Peer Group Median Alpha Sharpe Ratio Standard Deviation Downside Capture Year Risk Statistics Fund (Class I Shares) vs. Bloomberg Barclays U.S. Aggregate Bond Index as of 12/31/17: Alpha: 0.08, Sharpe Ratio: 0.66, Standard Deviation: 2.54, Downside Capture: 88.63%. Alpha compares risk-adjusted performance relative to an index. Positive alpha means outperformance on a risk-adjusted basis. Sharpe Ratio measures risk-adjusted performance using excess returns versus the risk-free rate and the volatility of those returns. A higher ratio means better return per unit of risk. Standard Deviation measures historical volatility. Higher standard deviation implies greater volatility. Downside Capture is the extent to which the strategy lost value over months when the index declined. A measure of 100% means the strategy results went down exactly the same amount as the broader market index. Page 6 of 8

7 Navigating Three Central Risks of Fixed Income Markets Not all fixed income funds are created equal. In today s volatile and complex markets, having a fixed income manager who has navigated the core risks of fixed income may be essential. 1. Actively Managed Through Rising Rates In 2013, the Fed s mere mention of a slow end to its quantitative easing program sent yields soaring. During this period, the fund looked to shorten duration by overweighting both credit and high-yield sectors. 2. Navigated Periods of Illiquidity During the 2008 financial crisis, there was a dramatic drop in market liquidity. Flexible Bond Fund navigated this stressful time by decreasing exposure to credit and increasing exposure to Treasurys. The fund was able to reduce risk, while still outperforming the index and the majority of peers. 3. Offered Diversification Benefits In the current low yield and potentially volatile rate environment, many investors may be tempted to stretch for incrementally higher yield across riskier areas of the bond market. When investors do this they are taking on equity-like risk, which might negate the diversification benefit they are seeking from fixed income % 2013 Excess Return vs. Bloomberg Barclays U.S. Aggregate Bond Index 5.64% 2008 Return Year Correlation to S&P 500 Index (as of 12/31/17) Flexible Bond Fund has checked the box on all three. With its unwavering focus on capital preservation and a history of generating strong risk-adjusted returns, we believe the Fund is well positioned to serve as the anchor of an investor s fixed income portfolio. Correlation measures the degree to which two variables move in relation to each other. A value of 1.0 implies movement in parallel, -1.0 implies movement in opposite directions, and 0.0 implies no relationship. S&P 500 Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. Past performance is no guarantee of future results. See back page for additional performance information and important disclosures. Page 7 of 8

8 Flexible Bond Fund Performance (%) As of 12/31/17 1 yr 3 yr 5 yr 10 yr Since Inception (7/7/87) Class I Shares Bloomberg Barclays U.S. Aggregate Bond Index Expense Ratios: Class I Shares: Gross 0.56%, Class I Shares: Net 0.56%. Net expense ratios reflect the expense waiver, if any, contractually agreed to through 11/1/18. Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call or visit janushenderson.com/mutual-funds. For more information, please visit janushenderson.com. Please consider the charges, risks, expenses and investment objectives price volatility than U.S. Government and other high quality bonds. High-yield/high-risk bonds carefully before investing. For a prospectus or, if available, a summary can experience sudden and sharp price swings which will affect net asset value. prospectus containing this and other information, please call Janus Henderson The Morningstar percentile ranking is based on a fund s total return (including income and at or download the file from janushenderson.com/info. Read it capital gains, if any, and excluding sales charges) relative to all funds in the same category for the period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least carefully before you invest or send money. favorable) percentile rank is 100%. The top-performing funds in a category will always receive Returns include reinvestment of dividends and capital gains. Returns greater than one year a rank of 1. are annualized. As of 12/31/17, Flexible Bond Fund Class I Shares Morningstar Rankings in the Intermediate- Performance for Class I Shares prior to 7/6/09 reflects the performance of one or more Term Bond category: 552/1,025, 364/919 and 80/807, for the 1-, 5-, and 10-year periods, similar share classes of the Fund or a predecessor fund, adjusted, where applicable and respectively. permitted, for differing fees and expenses. See the Fund s prospectus for further details 2017 Morningstar, Inc. All Rights Reserved. concerning historical performance. Index performance does not reflect the expenses of managing a portfolio as an index is Investing involves risk, including the possible loss of principal and fluctuation of value. There unmanaged and not available for direct investment. is no assurance the stated objective(s) will be met. Diversification neither assures a profit nor eliminates the risk of experiencing investment losses. Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based measure of the investment grade, US dollar-denominated, fixed-rate taxable bond market. Fixed income securities are subject to interest rate, inflation, credit and default risk. The bond market is volatile. As interest rates rise, bond prices usually fall, and vice versa. The return of Not all Funds and Share classes may be available. Please consult your financial advisor. principal is not guaranteed, and prices may decline if an issuer fails to make timely payments Janus Henderson is a trademark of Janus Henderson Investors. Janus Henderson or its credit strength weakens. Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson High-yield/high-risk bonds, also known as junk bonds, involve a greater risk of default and Global Investors (Brand Management) Sarl and Janus International Holding LLC. Janus Henderson Distributors C