https://www.sec.gov/Archives/edgar/data/277751/000119312517020127/d336634d497.htm497 1 d336634d497.htm 497
Janus Investment Fund
Janus International Equity Fund
Supplement dated January 27, 2017
to Currently Effective Prospectuses
The Board of Trustees (the “Trustees”) of Janus Investment Fund has approved a plan to liquidate and terminate Janus International Equity Fund (the “Fund”) with such liquidation effective on or about March 30, 2017 or at such other time as may be authorized by the Trustees (“Liquidation Date”). Termination of the Fund is expected to occur as soon as practicable following liquidation.
Effective at the close of business February 3, 2017, the Fund will no longer accept investments by new shareholders. The Fund may be required to make a distribution of any income and/or capital gains of the Fund in connection with its liquidation.
Shareholders of the Fund may redeem their shares or exchange their shares for shares of another Janus fund which they are eligible to purchase at any time prior to the Liquidation Date. Effective at the close of business February 3, 2017, any applicable contingent deferred sales charges (“CDSC”) charged by the Fund will be waived for redemptions or exchanges through the Liquidation Date. Exchanges by Class A shareholders into Class A Shares of another Janus fund are not subject to any applicable initial sales charge. For shareholders holding shares through an intermediary, check with your intermediary regarding other Janus funds and share classes offered through your intermediary.
If a shareholder has not redeemed their shares as of the Liquidation Date, the shareholder’s account will be automatically redeemed and proceeds will be sent to the shareholder of record. For shareholders of Class D Shares investing in a tax-deferred account, the shares will be placed in Janus Government Money Market Fund.
To prepare for the closing and liquidation of the Fund, the Fund’s portfolio managers may increase the Fund’s assets held in cash and similar instruments in order to pay for Fund expenses and meet redemption requests. As a result, the Fund may deviate from its stated investment strategies and policies and accordingly cease being managed to meet its investment objective during the liquidation of the Fund.
Additionally, any asset reductions and increase in cash and similar instruments could adversely affect the Fund’s short-term performance prior to the Liquidation Date. The Fund will incur transaction costs, such as brokerage commissions, when selling portfolio securities as a result of its plan to liquidate and terminate. These transaction costs may adversely affect performance.
The redemption or exchange of shares held by a shareholder will generally be considered a taxable event. A shareholder should consult their personal tax adviser concerning their particular tax situation.
A shareholder may obtain additional information by calling their plan sponsor, broker-dealer, or financial institution, or by contacting a Janus representative at 1-877-335-2687 (or 1-800-525-3713 if you hold shares directly with Janus Capital). ...
Comments
Money is still flowing out of that company. If I were a customer I would keep a close eye on all this.
Will the trend reverse? Dunno. I've read quite a bit recently (assorted interviews) that the investment tide is turning and indexes will enter a period of underperformance. Might draw money back to some successful active managers. The claim rests on the assumption that value (represented by some active managers) has lagged for years - and become undervalued - and that even indexes are subject to periods of euphoria - and hence overvaluation. Possibly this is simply active managers talking their shop. Who knows?
It's impossible to document the claim. And, no desire to get into a shouting match with the index disciples here of which there are several that I respect. Janus? I've never been enamoured by them. The arrival of BIll Gross certainly hasn't altered my perception. If they can afford to pay his "celebrity" rate, they're probably charging too much for their funds.
* Read "End of an Era" by Ed Studzinski in David's January Commentary. He addresses the fund flow (err ... outflow) issue. Among other brilliant observations is this one: "Often, as support staff and analysts are cut, it is the investment performance that continues to suffer as the investment research process becomes gutted. The other thing that happens is the quality of the personnel hired is ratcheted down (good enough) rather than the best available talent."