October 26, 2012 Money Market Janus Government Money Market Fund... Janus Money Market Fund... Class T Shares Ticker JAGXX JAMXX Janus Investment Fund Prospectus The Securities and Exchange Commission has not approved or disapproved of these securities or passed on the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense.
This Prospectus describes two portfolios (each, a Fund and collectively, the Funds ) of Janus Investment Fund (the Trust ). Janus Capital Management LLC ( Janus Capital or Janus ) serves as investment adviser to each Fund. The Funds currently offer one or more classes of shares. Only Class T Shares (the Shares ) are offered by this Prospectus. The Shares are not offered directly to individual investors. For additional information about Class T Shares and whether or not you are eligible to purchase the Shares, please refer to the Shareholder s Guide section of the Prospectus.
Janus Investment Fund Janus Government Money Market Fund Janus Money Market Fund Supplement dated January 28, 2013 to Currently Effective Prospectuses The following replaces the corresponding information for each of Janus Government Money Market Fund and Janus Money Market Fund (each, a Fund ) in the Funds Prospectuses. 1. The following replaces in its entirety the corresponding information found under Management in the Fund Summary section of Janus Government Money Market Fund s Prospectus: Portfolio Manager: J. Eric Thorderson, CFA, is Executive Vice President and Portfolio Manager of the Fund, which he has managed or co-managed since February 1999. 2. The following replaces in its entirety the corresponding information found under Management in the Fund Summary section of Janus Money Market Fund s Prospectus: Portfolio Manager: J. Eric Thorderson, CFA, is Executive Vice President and Portfolio Manager of the Fund, which he has managed or co-managed since February 2004. 3. The following replaces in its entirety the corresponding information in the Investment Personnel section of the Prospectuses related to the portfolio management of each Fund: Janus Government Money Market Fund J. Eric Thorderson, CFA, is Executive Vice President and Portfolio Manager of Janus Government Money Market Fund, which he has managed or co-managed since February 1999. He is also Portfolio Manager of other Janus accounts. Mr. Thorderson joined Janus Capital in 1996 as a money market analyst. He holds a Bachelor of Arts degree in Business Administration from Wayne State University and a Master s degree in Business Administration from the University of Illinois. Mr. Thorderson holds the Chartered Financial Analyst designation. Janus Money Market Fund J. Eric Thorderson, CFA, is Executive Vice President and Portfolio Manager of Janus Money Market Fund, which he has managed or co-managed since February 2004. He is also Portfolio Manager of other Janus accounts. Mr. Thorderson joined Janus Capital in 1996 as a money market analyst. He holds a Bachelor of Arts degree in Business Administration from Wayne State University and a Master s degree in Business Administration from the University of Illinois. Mr. Thorderson holds the Chartered Financial Analyst designation. All references to David Spilsted as Co-Portfolio Manager of either Fund are deleted. Please retain this Supplement with your records. 125-31-69267 01-13 225-31-69267 01-13 07JAN089332
TABLE OF CONTENTS FUND SUMMARY Janus Government Money Market Fund.... 2 Janus Money Market Fund.... 5 ADDITIONAL INFORMATION ABOUT THE FUNDS Fees and expenses... 8 Additional investment strategies and general portfolio policies... 8 MANAGEMENT OF THE FUNDS Investment adviser... 12 Management expenses... 12 Administration fee... 12 Investment personnel... 13 OTHER INFORMATION... 14 DISTRIBUTIONS AND TAXES... 15 SHAREHOLDER S GUIDE Pricing of fund shares... 17 Payments to financial intermediaries by Janus Capital or its affiliates... 17 Purchases... 18 Exchanges... 19 Redemptions... 19 Shareholder communications... 21 FINANCIAL HIGHLIGHTS... 22 GLOSSARY OF INVESTMENT TERMS... 24 1 Janus Investment Fund
FUND SUMMARY Janus Government Money Market Fund Ticker: JAGXX Class T Shares INVESTMENT OBJECTIVES Janus Government Money Market Fund seeks capital preservation and liquidity with current income as a secondary objective. FEES AND EXPENSES OF THE FUND This table describes the fees and expenses that you may pay if you buy and hold Shares of the Fund. ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) Class T Management Fees 0.20% Other Expenses 0.51% Total Annual Fund Operating Expenses 0.71% EXAMPLE: The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, reinvest all dividends and distributions, and then redeem all of your Shares at the end of each period. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years Class T Shares $ 73 $ 227 $ 395 $ 883 PRINCIPAL INVESTMENT STRATEGIES The Fund pursues its investment objectives by investing exclusively in obligations issued and/or guaranteed as to principal and interest by the United States Government or by its agencies and instrumentalities, and repurchase agreements secured by such obligations. Although U.S. Government agencies and instrumentalities may be chartered or sponsored by Acts of Congress, their securities are not issued by, and may not be guaranteed by (i.e., backed by the full faith and credit of), the United States Treasury. Some government agency and instrumentality securities not backed by the full faith and credit of the United States are supported by the issuer s ability to borrow from the U.S. Treasury, some are supported only by the credit of the issuer, and some are supported by the United States in some other way. For securities not backed by the full faith and credit of the U.S. Treasury, the Fund must look principally to the agency or instrumentality issuing or guaranteeing the securities for repayment and may not be able to assert a claim against the United States if the agency or instrumentality does not meet its commitment. The Fund s investments in securities issued by U.S. Government agencies and instrumentalities may be significant. The Fund will: invest in high quality, short-term money market instruments that present minimal credit risks, as determined by Janus Capital invest only in U.S. dollar-denominated instruments that have a remaining maturity of 397 days or less (as calculated pursuant to Rule 2a-7 under the Investment Company Act of 1940, as amended) maintain a dollar-weighted average portfolio maturity of 60 days or less and maintain a dollar-weighted average portfolio life (portfolio maturity measured without reference to any maturity shortening provisions of adjustable rate securities by reference to their interest rate reset dates) of 120 days or less 2 Janus Government Money Market Fund
PRINCIPAL INVESTMENT RISKS Market Risk. The Fund s yield will vary as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates. For capital preservation and liquidity, the Fund may have a greater concentration in short-term securities including, but not limited to, investing up to all of its assets in overnight securities, which may result in a reduction of the Fund s yield. Over time, the real value of the Fund s yield may be eroded by inflation. Although the Fund invests only in high-quality, short-term money market instruments, there is a risk that the value of the securities it holds will fall as a result of changes in interest rates, an issuer s actual or perceived creditworthiness, or an issuer s ability to meet its obligations. The credit quality of the Fund s holdings can change rapidly in certain market environments and any downgrade or default of a portfolio security could cause the Fund s share price or yield to fall. Collateral Risk. With respect to collateral received in repurchase transactions or other investments, the Fund may have significant exposure to government agencies not secured by the full faith and credit of the United States. Such exposure, depending on market conditions, could have a negative impact on the Fund, including minimizing the value of any collateral. Money Market Risk. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. PERFORMANCE INFORMATION The following information provides some indication of the risks of investing in the Fund by showing how the Fund s performance has varied over time. Class T Shares (formerly named Class J Shares, the initial share class) of the Fund commenced operations with the Fund s inception. The performance shown for Class T Shares is calculated using the fees and expenses of Class T Shares in effect during the periods shown, net of any applicable fee and expense limitations or waivers. The bar chart depicts the change in performance from year to year during the periods indicated. The table shows how the Fund s returns over different periods average out. All figures assume reinvestment of dividends and distributions. 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. The Fund s past performance does not necessarily indicate how it will perform in the future. Updated performance information is available at janus.com/advisor/mutual-funds or by calling 1-877-335-2687. Annual Total Returns for Class T Shares (calendar year-end) 4.52% 4.66% 1.33% 0.65% 0.85% 2.70% 1.83% 0.01% 0.02% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Best Quarter: Fourth Quarter 2006 1.21% Worst Quarter: Third Quarter 2011 0.00% The Fund s year-to-date return as of the calendar quarter ended September 30, 2012 was 0.00%. 3 Janus Government Money Market Fund
Average Annual Total Returns (periods ended 12/31/11) 1 Year 5 Years 10 Years Since Inception (2/14/95) Class T Shares Return Before Taxes 0.00% 1.29% 1.64% 2.99% The 7-day yield on December 31, 2011 was 0.00% for Janus Government Money Market Fund. MANAGEMENT Investment Adviser: Janus Capital Management LLC Portfolio Managers: David Spilsted is Executive Vice President and Co-Portfolio Manager of the Fund, which he has co-managed since September 2009. J. Eric Thorderson, CFA, is Executive Vice President and Co-Portfolio Manager of the Fund, which he has managed or co-managed since February 1999. PURCHASE AND SALE OF FUND SHARES Minimum Investment Requirements The minimum investment for Class T Shares is $2,500 per Fund account for non-retirement accounts and $500 per Fund account for certain tax-deferred accounts or UGMA/UTMA accounts. Purchases, exchanges, and redemptions can generally be made only through institutional channels, such as financial intermediaries and retirement platforms. You should contact your financial intermediary or refer to your plan documents for information on how to invest in the Fund. Requests must be received in good order by the Fund or its agents (financial intermediary or plan sponsor, if applicable) prior to the close of the regular trading session of the New York Stock Exchange in order to receive that day s net asset value. For additional information, refer to Purchases, Exchanges, and/or Redemptions in the Prospectus. TAX INFORMATION The Fund s distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment or to recommend one share class over another. Ask your salesperson or visit your financial intermediary s website for more information. 4 Janus Government Money Market Fund
FUND SUMMARY Janus Money Market Fund Ticker: JAMXX Class T Shares INVESTMENT OBJECTIVES Janus Money Market Fund seeks capital preservation and liquidity with current income as a secondary objective. FEES AND EXPENSES OF THE FUND This table describes the fees and expenses that you may pay if you buy and hold Shares of the Fund. ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) Class T Management Fees 0.20% Other Expenses 0.49% Total Annual Fund Operating Expenses 0.69% EXAMPLE: The Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, reinvest all dividends and distributions, and then redeem all of your Shares at the end of each period. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years Class T Shares $ 70 $ 221 $ 384 $ 859 PRINCIPAL INVESTMENT STRATEGIES The Fund pursues its investment objectives by investing primarily in high quality debt obligations and obligations of financial institutions. Debt obligations may include commercial paper, notes and bonds, and variable amount master demand notes. Obligations of financial institutions include certificates of deposit and time deposits. The Fund also intends to invest in repurchase agreements including those secured by U.S. Government agencies. Some government agencies backed by the full faith and credit of the United States are supported by the issuer s ability to borrow from the United States Treasury, some are supported only by the credit of the issuer, and some are supported by the United States in some other way. The Fund will: invest in high quality, short-term money market instruments that present minimal credit risks, as determined by Janus Capital invest only in U.S. dollar-denominated instruments that have a remaining maturity of 397 days or less (as calculated pursuant to Rule 2a-7 under the Investment Company Act of 1940, as amended) maintain a dollar-weighted average portfolio maturity of 60 days or less and maintain a dollar-weighted average portfolio life (portfolio maturity measured without reference to any maturity shortening provisions of adjustable rate securities by reference to their interest rate reset dates) of 120 days or less PRINCIPAL INVESTMENT RISKS Market Risk. The Fund s yield will vary as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates. For capital preservation and liquidity, the Fund may have a greater concentration in short-term securities including, but not limited to, investing up to all of its assets in overnight securities, which may result in a reduction of the Fund s yield. Over time, the real value of the Fund s yield may be eroded by inflation. Although the Fund invests only in high-quality, short-term money market instruments, there is a risk that the value of the securities it holds will fall as a result of changes in interest rates, an issuer s actual or perceived creditworthiness, or an issuer s ability to meet its 5 Janus Money Market Fund
obligations. The credit quality of the Fund s holdings can change rapidly in certain market environments and any downgrade or default of a portfolio security could cause the Fund s share price or yield to fall. Collateral Risk. With respect to collateral received in repurchase transactions or other investments, the Fund may have significant exposure to financial services, mortgage markets, and government agencies not secured by the full faith and credit of the United States. Such exposure, depending on market conditions, could have a negative impact on the Fund, including minimizing the value of any collateral. Money Market Risk. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. PERFORMANCE INFORMATION The following information provides some indication of the risks of investing in the Fund by showing how the Fund s performance has varied over time. Class T Shares (formerly named Class J Shares, the initial share class) of the Fund commenced operations with the Fund s inception. The performance shown for Class T Shares is calculated using the fees and expenses of Class T Shares in effect during the periods shown, net of any applicable fee and expense limitations or waivers. The bar chart depicts the change in performance from year to year during the periods indicated. The table shows how the Fund s returns over different periods average out. All figures assume reinvestment of dividends and distributions. 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. The Fund s past performance does not necessarily indicate how it will perform in the future. Updated performance information is available at janus.com/advisor/mutual-funds or by calling 1-877-335-2687. Annual Total Returns for Class T Shares (calendar year-end) 4.60% 4.86% 1.38% 0.71% 0.93% 2.77% 2.09% 0.07% 0.01% 0.01% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Best Quarter: Fourth Quarter 2006 1.23% Worst Quarter: Third Quarter 2011 0.00% The Fund s year-to-date return as of the calendar quarter ended September 30, 2012 was 0.00%. Average Annual Total Returns (periods ended 12/31/11) 1 Year 5 Years 10 Years Since Inception (2/14/95) Class T Shares Return Before Taxes 0.01% 1.39% 1.73% 3.08% The 7-day yield on December 31, 2011 was 0.01% for Janus Money Market Fund. 6 Janus Money Market Fund
MANAGEMENT Investment Adviser: Janus Capital Management LLC Portfolio Managers: David Spilsted is Executive Vice President and Co-Portfolio Manager of the Fund, which he has co-managed since September 2009. J. Eric Thorderson, CFA, is Executive Vice President and Co-Portfolio Manager of the Fund, which he has managed or co-managed since February 2004. PURCHASE AND SALE OF FUND SHARES Minimum Investment Requirements The minimum investment for Class T Shares is $2,500 per Fund account for non-retirement accounts and $500 per Fund account for certain tax-deferred accounts or UGMA/UTMA accounts. Purchases, exchanges, and redemptions can generally be made only through institutional channels, such as financial intermediaries and retirement platforms. You should contact your financial intermediary or refer to your plan documents for information on how to invest in the Fund. Requests must be received in good order by the Fund or its agents (financial intermediary or plan sponsor, if applicable) prior to the close of the regular trading session of the New York Stock Exchange in order to receive that day s net asset value. For additional information, refer to Purchases, Exchanges, and/or Redemptions in the Prospectus. TAX INFORMATION The Fund s distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment or to recommend one share class over another. Ask your salesperson or visit your financial intermediary s website for more information. 7 Janus Money Market Fund
ADDITIONAL INFORMATION ABOUT THE FUNDS FEES AND EXPENSES Please refer to the following important information when reviewing the Fees and Expenses of the Fund table in each Fund Summary of the Prospectus. The fees and expenses shown were determined based on net assets as of the fiscal year ended June 30, 2012. Annual Fund Operating Expenses are paid out of a Fund s assets and include fees for portfolio management and administrative services, including recordkeeping, subaccounting, and other shareholder services. You do not pay these fees directly but, as the Example in each Fund Summary shows, these costs are borne indirectly by all shareholders through the management fee and the administration fee paid to Janus Capital. The Management Fee is the investment advisory fee rate paid by each Fund to Janus Capital. Refer to Management Expenses in this Prospectus for additional information with further description in the Statement of Additional Information ( SAI ). Other Expenses for Janus Government Money Market Fund and Janus Money Market Fund include an administration fee of 0.48% of the average daily net assets of each Fund to compensate Janus Capital for providing certain administration services including, but not limited to, recordkeeping and registration functions and also to pay for costs such as shareholder servicing and custody. Janus Capital has agreed to waive one-half of each of Janus Government Money Market Fund s and Janus Money Market Fund s investment advisory fee. Such waiver is voluntary and could change or be terminated at any time at the discretion of Janus Capital. Janus Capital may also voluntarily waive and/or reimburse additional fees to the extent necessary to assist the Funds in attempting to maintain a yield of at least 0.00%. These waivers and reimbursements are voluntary and could change or be terminated at any time at the discretion of Janus Capital. There is no guarantee that the Funds will maintain a positive yield. All expenses in a Fund s Fees and Expenses of the Fund table are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses. ADDITIONAL INVESTMENT STRATEGIES AND GENERAL PORTFOLIO POLICIES This section takes a closer look at investment strategies and general policies that apply to the Funds. Some of these strategies and policies may be part of a principal strategy. Other strategies and policies may be utilized to a lesser extent. The Funds are subject to certain specific Securities and Exchange Commission ( SEC ) rule requirements. Among other things, the Funds are limited to investing in U.S. dollar-denominated instruments with a remaining maturity of 397 days or less (as calculated pursuant to Rule 2a-7 under the Investment Company Act of 1940, as amended). Counterparties Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to a Fund ( counterparty risk ). Counterparty risk may arise because of the counterparty s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty s inability to fulfill its obligation may result in significant financial loss to a Fund. A Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. A Fund may be exposed to counterparty risk through participation in various programs including, but not limited to, lending its securities to third parties, as well as investments in, but not limited to, repurchase agreements and debt securities. Each Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital s analysis of a counterparty s creditworthiness is incorrect or may change due to market conditions. To the extent that a Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties. Debt Obligations Janus Money Market Fund may invest in U.S. dollar-denominated debt obligations. Debt obligations include: commercial paper notes and bonds 8 Janus Investment Fund
variable amount master demand notes (the payment obligations on these instruments may be backed by securities, swap agreements or other assets, by a guarantee of a third party, or solely by the unsecured promise of the issuer to make payments when due) privately issued commercial paper or other securities that are restricted as to disposition under the federal securities laws Demand Features Demand features give a Fund the right to resell securities at specified periods prior to their maturity dates. Demand features may shorten the life of a variable or floating rate security or preferred stock, enhance the instrument s credit quality, and provide a source of liquidity. Demand features are often issued by third party financial institutions, generally domestic and foreign banks. Accordingly, the credit quality and liquidity of the Funds investments may be dependent in part on the credit quality of the banks supporting the Funds investments. This will result in exposure to risks pertaining to the banking industry, including the foreign banking industry. Brokerage firms and insurance companies also provide certain liquidity and credit support. Liquidity Each Fund has adopted liquidity requirements (measured at the time of purchase) as noted: Daily liquidity. Each Fund will invest at least 10% of its total assets in cash (including demand deposits), direct obligations of the U.S. Government, and/or securities (including repurchase agreements) that will mature or are subject to a demand feature that is exercisable and payable within one business day. Weekly liquidity. Each Fund will invest at least 30% of its assets in cash (including demand deposits), direct obligations of the U.S. Government, agency discount notes with remaining maturities of 60 days or less, and securities (including repurchase agreements) that will mature or are subject to a demand feature that is exercisable and payable within five business days. Each Fund will limit its investments in illiquid securities to 5% or less of its total assets. Mortgage- and Asset-Backed Securities Each Fund may purchase fixed or variable rate mortgage-backed securities issued by the Government National Mortgage Association ( Ginnie Mae ), the Federal National Mortgage Association ( Fannie Mae ), the Federal Home Loan Mortgage Corporation ( Freddie Mac ), or other governmental or government-related entities. Historically, Fannie Maes and Freddie Macs were not backed by the full faith and credit of the U.S. Government, and may not be in the future. In September 2008, the Federal Housing Finance Agency ( FHFA ), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship to provide stability in the financial markets, mortgage availability and taxpayer protection by preserving Fannie Mae s and Freddie Mac s assets, and placing them in a sound and solvent condition. Under the conservatorship, the management of Fannie Mae and Freddie Mac was replaced. Since 2008, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases, and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities mortgage portfolios. This mortgage-backed securities purchase program ended in 2010. However, the U.S. Treasury has committed to continue its support for Fannie Mae s and Freddie Mac s capital as necessary to prevent them having a negative net worth through at least 2012. However, there is no assurance that any Federal Reserve, U.S. Treasury, or FHFA initiatives will ensure Fannie Mae s and Freddie Mac s continued solvency, or that federal support will continue beyond 2012. Janus Money Market Fund may purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying assets fail to perform, these investment vehicles could be forced to sell the assets and recognize losses on such assets, which could impact a Fund s yield and your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Prepayments of the principal of underlying loans at a faster pace than expected is known as prepayment risk, and may shorten the effective maturities of these securities. This may result in the Fund having to reinvest proceeds at a lower interest rate. 9 Janus Investment Fund
In addition to prepayment risk, investments in mortgage-backed securities, including those comprised of subprime mortgages, and investments in other asset-backed securities comprised of under-performing assets may be subject to a higher degree of credit risk, valuation risk, and liquidity risk. Mortgage- and asset-backed securities are also subject to extension risk, which is the risk that rising interest rates could cause mortgages or other obligations underlying these securities to be paid more slowly than expected, increasing a Fund s sensitivity to interest rate changes and causing its price to decline. Municipal Leases Janus Money Market Fund may invest in municipal leases. Municipal leases frequently have special risks not normally associated with general obligation or revenue bonds. Municipal leases are municipal securities which may take the form of a lease or an installment purchase or conditional sales contract. Municipal leases are issued by state and local governments and authorities to acquire a wide variety of equipment and facilities. Leases and installment purchase or conditional sale contracts (which normally provide for title to the leased asset to pass eventually to the government issuer) have evolved as a means for governmental issuers to acquire property and equipment without meeting the constitutional and statutory requirements for the issuance of debt. The debt-issuance limitations of many state constitutions and statutes are deemed to be inapplicable because of the inclusion in many leases or contracts of non-appropriation clauses that provide that the governmental issuer has no obligation to make future payments under the lease or contract unless money is appropriated for such purpose by the appropriate legislative body on a yearly or other periodic basis. The Fund will only purchase municipal leases subject to a non-appropriation clause when the payment of principal and accrued interest is backed by an unconditional, irrevocable letter of credit, or guarantee of a bank or other entity that meets certain criteria. Obligations of Financial Institutions Janus Money Market Fund may invest in obligations of financial institutions. Examples of obligations of financial institutions include: negotiable certificates of deposit, bankers acceptances, time deposits, and other obligations of U.S. banks (including savings and loan associations) having total assets in excess of one billion dollars and U.S. branches of foreign banks having total assets in excess of ten billion dollars Eurodollar and Yankee bank obligations (Eurodollar bank obligations are dollar-denominated certificates of deposit or time deposits issued outside the U.S. capital markets by foreign branches of U.S. banks and by foreign banks. Yankee bank obligations are dollar-denominated obligations issued in the U.S. capital markets by foreign banks.) other U.S. dollar-denominated obligations of foreign banks having total assets in excess of ten billion dollars that Janus Capital believes are of an investment quality comparable to obligations of U.S. banks in which the Fund may invest An economic downturn or other market event can have a significant negative effect on issuers in the financial services sector. The Fund may focus its investments in this sector, which increases the risk of your investment. A decline in the credit quality of an issuer, the provider of credit support, may also have a negative effect on the Fund. Foreign, Eurodollar, and, to a limited extent, Yankee bank obligations are subject to certain sovereign risks. One such risk is the possibility that a foreign government might prevent dollar-denominated funds from flowing across its borders. Other risks include: adverse political and economic developments in a foreign country, the extent and quality of government regulation of financial markets and institutions, the imposition of foreign withholding taxes, and expropriation or nationalization of foreign issuers. Participation Interests A participation interest gives a Fund a proportionate, undivided interest in underlying debt securities and usually carries a demand feature. Repurchase Agreements Each Fund may enter into collateralized repurchase agreements by cash or U.S. Government securities. Repurchase agreements are transactions in which a Fund purchases securities and simultaneously commits to resell those securities to the seller at an agreed-upon price on an agreed-upon future date. The repurchase price reflects a market rate of interest. 10 Janus Investment Fund
If the seller of the securities underlying a repurchase agreement fails to pay the agreed resale price on the agreed delivery date, a Fund may incur costs in disposing of the collateral and may experience losses if there is any delay in its ability to do so. U.S. Government Securities The Funds may invest in U.S. Government securities. U.S. Government securities include those issued directly by the U.S. Treasury and those issued or guaranteed by various U.S. Government agencies and instrumentalities. Some government securities are backed by the full faith and credit of the United States. Other government securities are backed only by the rights of the issuer to borrow from the U.S. Treasury. Others are supported by the discretionary authority of the U.S. Government to purchase the obligations. Certain other government securities are supported only by the credit of the issuer. For securities not backed by the full faith and credit of the United States, a Fund must look principally to the agency or instrumentality issuing or guaranteeing the securities for repayment and may not be able to assert a claim against the United States if the agency or instrumentality does not meet its commitment. Although they are high-quality, such securities may involve increased risk of loss of principal and interest compared to government debt securities that are backed by the full faith and credit of the United States. Variable and Floating Rate Securities Janus Government Money Market Fund may purchase variable and floating rate demand notes of U.S. Government issuers. Janus Money Market Fund may invest in securities which have variable or floating rates of interest. These securities pay interest at rates that are adjusted periodically according to a specified formula, usually with reference to an interest rate index or market interest rate. Variable and floating rate securities are subject to changes in value based on changes in market interest rates or changes in the issuer s or guarantor s creditworthiness. 11 Janus Investment Fund
MANAGEMENT OF THE FUNDS INVESTMENT ADVISER Janus Capital Management LLC, 151 Detroit Street, Denver, Colorado 80206-4805, is the investment adviser to each Fund. Janus Capital is responsible for the day-to-day management of the Funds investment portfolios and furnishes continuous advice and recommendations concerning the Funds investments. Janus Capital also provides certain administration and other services and is responsible for other business affairs of each Fund. Janus Capital (together with its predecessors) has served as investment adviser to Janus mutual funds since 1970 and currently serves as investment adviser to all of the Janus funds, acts as subadviser for a number of private-label mutual funds, and provides separate account advisory services for institutional accounts and other unregistered products. Janus Capital furnishes certain administration, compliance, and accounting services for the Funds, and provides continuous advice and recommendations concerning the Funds investments. In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. Janus Capital provides office space for the Funds and generally pays the salaries, fees, and expenses of Fund officers, although some expenses related to compensation payable to the Janus funds Chief Compliance Officer and compliance staff are shared with the Janus funds. MANAGEMENT EXPENSES Each Fund pays Janus Capital an investment advisory fee and incurs other expenses, including legal and auditing fees and Independent Trustees fees and expenses. Each Fund s investment advisory fee is calculated daily and paid monthly. Each Fund s advisory agreement details the investment advisory fee and other expenses that each Fund pays. The following table reflects each Fund s contractual investment advisory fee rate (expressed as an annual rate), as well as the actual investment advisory fee rate paid by each Fund to Janus Capital (net of fee waivers). The rate shown is a fixed rate based on each Fund s average daily net assets. Contractual Investment Advisory Fee (%) (annual rate) Actual Investment Advisory Fee Rate (%) (for the fiscal year ended June 30, 2012) Average Daily Net Assets Fund Name of the Fund Janus Government Money Market Fund All Asset Levels 0.20 0.10 (1) Janus Money Market Fund All Asset Levels 0.20 0.10 (1) (1) Janus Capital has agreed to waive one-half of the Fund s investment advisory fee. Such waiver is voluntary and could change or be terminated at any time at the discretion of Janus Capital. A discussion regarding the basis for approval by the Board of Trustees ( Trustees ) of the Funds investment advisory agreements is included in the Funds annual or semiannual report to shareholders. You can request the Funds annual or semiannual reports (as they become available), free of charge, by contacting your plan sponsor, broker-dealer, or financial intermediary, or by contacting a Janus representative at 1-877-335-2687. The reports are also available, free of charge, at janus.com/info. ADMINISTRATION FEE Each Fund pays an administration fee of 0.48% of the average daily net assets of Class T Shares to compensate Janus Capital for providing certain administration services including, but not limited to, recordkeeping, fund accounting, preparation of reports and prospectuses distributed to current shareholders, and registration functions. This administration fee also covers expenses including, but not limited to, custody, transfer agency, shareholder servicing, including servicing provided by third party intermediaries, and provision of office facilities and personnel necessary to carry on the business of the Funds. 12 Janus Investment Fund
INVESTMENT PERSONNEL Unless otherwise noted, the Portfolio Manager has primary responsibility for the day-to-day management of the Fund described. Janus Government Money Market Fund Co-Portfolio Managers David Spilsted and J. Eric Thorderson jointly share responsibility for the day-to-day management of the Fund, with no limitation on the authority of one co-portfolio manager in relation to the other. David Spilsted is Executive Vice President and Co-Portfolio Manager of Janus Government Money Market Fund, which he has co-managed since September 2009. Mr. Spilsted is also Portfolio Manager of other Janus accounts. He joined Janus Capital in 1998 and became a fixed-income trader in 2001. He holds a Bachelor s degree in Business Administration from Kuring-Gai College of Advanced Education in Sydney, Australia. J. Eric Thorderson, CFA, is Executive Vice President and Co-Portfolio Manager of Janus Government Money Market Fund, which he has managed or co-managed since February 1999. He is also Portfolio Manager of other Janus accounts. Mr. Thorderson joined Janus Capital in 1996 as a money market analyst. He holds a Bachelor of Arts degree in Business Administration from Wayne State University and a Master s degree in Business Administration from the University of Illinois. Mr. Thorderson holds the Chartered Financial Analyst designation. Janus Money Market Fund Co-Portfolio Managers David Spilsted and J. Eric Thorderson jointly share responsibility for the day-to-day management of the Fund, with no limitation on the authority of one co-portfolio manager in relation to the other. David Spilsted is Executive Vice President and Co-Portfolio Manager of Janus Money Market Fund, which he has co-managed since September 2009. Mr. Spilsted is also Portfolio Manager of other Janus accounts. He joined Janus Capital in 1998 and became a fixed-income trader in 2001. He holds a Bachelor s degree in Business Administration from Kuring-Gai College of Advanced Education in Sydney, Australia. J. Eric Thorderson, CFA, is Executive Vice President and Co-Portfolio Manager of Janus Money Market Fund, which he has managed or co-managed since February 2004. He is also Portfolio Manager of other Janus accounts. Mr. Thorderson joined Janus Capital in 1996 as a money market analyst. He holds a Bachelor of Arts degree in Business Administration from Wayne State University and a Master s degree in Business Administration from the University of Illinois. Mr. Thorderson holds the Chartered Financial Analyst designation. Conflicts of Interest Janus Capital manages many funds and numerous other accounts, which may include separate accounts and other pooled investment vehicles, such as hedge funds. Side-by-side management of multiple accounts, including the management of a cash collateral pool for securities lending and investing the Janus funds cash, may give rise to conflicts of interest among those accounts, and may create potential risks, such as the risk that investment activity in one account may adversely affect another account. For example, short sale activity in an account could adversely affect the market value of long positions in one or more other accounts (and vice versa). Side-by-side management may raise additional potential conflicts of interest relating to the allocation of investment opportunities and the aggregation and allocation of trades. Additionally, Janus Capital is the adviser to the Janus funds of funds, which are funds that invest primarily in other mutual funds managed by Janus Capital. Because Janus Capital is the adviser to the Janus funds of funds and the Funds, it is subject to certain potential conflicts of interest when allocating the assets of a Janus fund of funds among such Funds. To the extent that a Fund is an underlying fund in a Janus fund of funds, a potential conflict of interest arises when allocating the assets of the Janus fund of funds to the Fund. Purchases and redemptions of fund shares by a Janus fund of funds due to reallocations or rebalancings may result in a fund having to sell securities or invest cash when it otherwise would not do so. Such transactions could accelerate the realization of taxable income if sales of securities resulted in gains and could also increase a fund s transaction costs. Large redemptions by a Janus fund of funds may cause a fund s expense ratio to increase due to a resulting smaller asset base. A further discussion of potential conflicts of interest and a discussion of certain procedures intended to mitigate such potential conflicts are contained in the Funds SAI. 13 Janus Investment Fund
OTHER INFORMATION CLOSED FUND POLICIES A Fund may limit sales of its Shares to new investors if Janus Capital and the Trustees believe continued sales may adversely affect the Fund s ability to achieve its investment objective. If sales of a Fund are limited, it is expected that existing shareholders invested in the Fund would be permitted to continue to purchase Shares through their existing Fund accounts and to reinvest any dividends or capital gains distributions in such accounts, absent highly unusual circumstances. Requests for new accounts into a closed fund would be reviewed by management, taking into consideration eligibility requirements and whether the addition to the fund is believed to negatively impact existing fund shareholders. The closed fund may decline opening new accounts, including eligible new accounts, if it would be in the best interests of the fund and its shareholders. If applicable, additional information regarding general policies and exceptions can be found in the closed funds prospectuses. LIQUIDATION/REORGANIZATION OF A FUND It is important to know that, pursuant to the Trust s Amended and Restated Agreement and Declaration of Trust and in accordance with any applicable regulations and laws, the Trustees have the authority to merge, liquidate, and/or reorganize a Fund into another fund without seeking shareholder vote or consent. DISTRIBUTION OF THE FUNDS The Funds are distributed by Janus Distributors LLC ( Janus Distributors ), which is a member of the Financial Industry Regulatory Authority, Inc. ( FINRA ). To obtain information about FINRA member firms and their associated persons, you may contact FINRA at www.finra.org, or 1-800-289-9999. 14 Janus Investment Fund
DISTRIBUTIONS AND TAXES DISTRIBUTIONS To avoid taxation of the Funds, the Internal Revenue Code requires each Fund to distribute all or substantially all of its net investment income and any net capital gains realized on its investments at least annually. A Fund s income from certain dividends, interest, and any net realized short-term capital gains are paid to shareholders as ordinary income dividends. Certain dividend income may be reported to shareholders as qualified dividend income, which is generally subject to reduced rates of taxation. Net realized long-term capital gains, if any, are paid to shareholders as capital gains distributions, regardless of how long Shares of the Fund have been held. Distributions are made at the class level, so they may vary from class to class within a single Fund. Dividends representing substantially all of the net investment income and any net realized gains on sales of securities are declared daily (Saturdays, Sundays, and holidays included) and distributed as of the last business day of each month. If a month begins on a Saturday, Sunday, or holiday, dividends for those days are declared and distributed at the end of the preceding month. Purchase orders received prior to 4:00 p.m. (New York time) on a bank business day (a day when both the New York Stock Exchange ( NYSE ) and the Federal Reserve Banks are open) will begin to accrue dividends on the following bank business day. Redemption requests received prior to 4:00 p.m. (New York time) on a bank business day will receive that day s dividends. Proceeds of such redemption will normally be sent on the next bank business day. The Funds reserve the right to require purchase and redemption requests and payments prior to these times on days when the bond markets or NYSE close early. Janus Government Money Market Fund reserves the right to close in conjunction with the closure of the bond markets (i.e., when the bond markets are closed or close early). For your convenience, distributions of dividends and capital gains are automatically reinvested in additional Shares of the Fund. To receive distributions in cash, contact your financial intermediary. Whether reinvested or paid in cash, the distributions may be subject to taxes, unless your shares are held in a qualified tax-deferred plan or account. TAXES As with any investment, you should consider the tax consequences of investing in the Funds. Any time you sell or exchange shares of a fund in a taxable account, it is considered a taxable event. For federal income tax purposes, an exchange is treated the same as a sale. Depending on the purchase price and the sale price, you may have a gain or loss on the transaction; whether the gain or loss is long-term or short-term depends on how long you owned the shares. Any tax liabilities generated by your transactions are your responsibility. The following discussion does not apply to qualified tax-deferred accounts or other non-taxable entities, nor is it a complete analysis of the federal income tax implications of investing in the Funds. You should consult your tax adviser if you have any questions. Additionally, state or local taxes may apply to your investment, depending upon the laws of your state of residence. Taxes on Distributions Distributions by the Funds are subject to federal income tax, regardless of whether the distribution is made in cash or reinvested in additional shares of a Fund. When gains from the sale of a security held by a Fund are paid to shareholders, the rate at which the gain will be taxed to shareholders depends on the length of time the Fund held the security. In certain states, a portion of the distributions (depending on the sources of a Fund s income) may be exempt from state and local taxes. A Fund s net investment income and capital gains are distributed to (and may be taxable to) those persons who are shareholders of the Fund at the record date of such payments. Although a Fund s total net income and net realized gain are the results of its operations, the per share amount distributed or taxable to shareholders is affected by the number of Fund shares outstanding at the record date. Generally, account tax information will be made available to shareholders on or before January 31st of each year. Information regarding distributions may also be reported to the Internal Revenue Service. Distributions made by a Fund with respect to Shares purchased through a qualified retirement plan will generally be exempt from current taxation if left to accumulate within the qualified plan. 15 Janus Investment Fund