Investing in Bonds

[ozzeran]

Wanting to lock up my house purchase money in an investment. My advisor recommends bonds and has one in particular.

With the current economy is this smart?

I do NOT want to lose any of it, problem is CD rates are VERY low right now so this sounds like a better bet, but not sure right now.

[01vnms4v]

Wait till and see if the stupid govt shuts down... Too risky at the moment

[Denny]

Wanting to lock up my house purchase money in an investment. My advisor recommends bonds and has one in particular.

With the current economy is this smart?

I do NOT want to lose any of it, problem is CD rates are VERY low right now so this sounds like a better bet, but not sure right now.

Bonds? BONDS?!?!

/grabs chest and looks up
"Elizabeth... I'm coming, dear. Here I come!"

[ozzeran]

LOL, well my brother says the same thing right now.

Why would my advisor be recommending it??

I know I came to him asking, but he should say well right now it's risky, wtf?

[jw33]

You gotta know how to jack this shit, you gotta play this game rough, nameen? In-Out-Get-Grab-BONK!

[homealone]

Why would my advisor be recommending it??

Because he gets paid either way.

Invest in booze and strippers. As in alcohol sales and strip clubs. They seem to be impervious to a suffering economy. People will spend their very last dollar on a beer and boobies.

[ozzeran]

Because he gets paid either way.

Invest in booze and strippers. As in alcohol sales and strip clubs. They seem to be impervious to a suffering economy. People will spend their very last dollar on a beer and boobies.

Well I hear ya man. Seems like savings are a hindrance right now but I know it isn't.

Guess I can start looking for new Mustang's now while the interest rates are low.

[bcoop]

They seem to be impervious to a suffering economy.

Yep. Bars make money hand over fist when the economy hits the shitter. Because everyone is at the bar spending money they don't have, to forget that the economy sucks, they may get laid off tomorrow, etc.

[Denny]

Well I hear ya man. Seems like savings are a hindrance right now but I know it isn't.

Guess I can start looking for new Mustang's now while the interest rates are low.

Avoid debt. Period.

[TEAMJACOB]

First rule of bond investing; you do not talk about bond investing.

[slow99]

"A bond" doesn't really help me out much. Which bond?

[347Mike]

I am not touching anything until August 2nd or until they make a deal. I expect a short rally once they do which will help me short a few items of interest...

[ozzeran]

Ticker Symbol
2Q11
as of 6/30/11
Janus Flexible Bond Fund
A: JDFAX
C: JFICX
S: JADFX
I: JFLEX
R: JDFRX
T: JAFIX
Fund Overview
• Employs a bottom-up, fundamentally driven investment process that focuses on
credit-oriented investments
• Fundamental credit research is used to build a mosaic of information in an effort to
identify macro trends and inform allocations across fixed income sectors
• Credit research emphasizes free cash flow generation, quality of management and
security valuation
Performance (%)
Average Annual Total Returns
2Q11 YTD 1 yr. 3 yr. 5 yr. 10 yr. Since
Inception
Class A Shares
(@ NAV) 1.79 3.07 5.41 9.04 8.08 6.55 7.54
(@ MOP) -3.04 -1.83 0.43 7.28 7.03 6.03 7.33
Barclays Capital U.S.
Aggregate Bond Index
2.29 2.72 3.90 6.46 6.52 5.74 7.28
Data presented reflects past performance, which is no guarantee of future results.
Investment results and principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Due to market volatility, current performance may
be higher or lower than the performance shown. Call 877.33JANUS (52687) or visit
janus.com/advisor/mutual-funds for performance current to the most recent month end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the
Fund’s maximum sales charge of 4.75%. Performance shown at Net Asset Value (NAV) does
not include this charge and would have been lower had this charge been taken into account.
†Janus Capital has contractually agreed to waive each Fund’s total annual fund operating expenses allocated to any class (excluding any performance
adjustments to management fees if applicable, distribution and shareholder servicing fees – applicable to Class A Shares, Class C Shares, Class R Share
and Class S Shares, administrative services fees payable pursuant to the Transfer Agency Agreement – applicable to Class R Shares, Class S Shares and
Class T Shares, brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and
expenses) to certain limits until at least 11/1/11. The contractual waiver may be terminated or modified prior to this date only at the discretion of the
Board of Trustees. Returns shown include fee waivers, if any, and without such waivers returns would have been lower.
Growth of a Hypothetical $10,000 Investment (7/7/87 - 6/30/11)
Class A shares @ MOP. This hypothetical example does not represent the returns of any particular investment.
$0
$10,000
$30,000
$40,000
$50,000
$20,000
$60,000
’88 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04 ’06 ’08 ’10
$54,495 ●
Morningstar Style BoxTM
LIM
LOW
MOD
MEDIUM
EXT
HIGH
X
QUALITY
DURATION
Objective
Maximum total return,
consistent with
preservation of capital
Strategy
Invests at least 80% of
assets in bonds
Portfolio Managers
Gibson Smith
Darrell Watters
Inception Date
July 7, 1987
Fund Assets $3.4 B
Number of Debt Issues 284
Weighted Avg
Maturity 6.53 yrs
Weighted Avg
Duration 4.86 yrs
Average Coupon 5.0%
Regional Allocation (% of Fund)
U.S. 91%
Non-U.S. 7%
Cash/equivalents 2%
Annual Expense Ratios
(as of 6/30/10)
Gross Net†
A 0.76% 0.76%
C 1.51% 1.51%
S 0.95% 0.95%
I 0.59% 0.55%
R 1.20% 1.20%
T 0.70% 0.70%
Gross Expense Ratio
Does not include waivers
Net Expense Ratio
Includes waivers
Morningstar Category
Intermediate-Term Bond
Class A Shares of the Fund commenced operations on 7/6/09. The performance shown for Class A Shares for periods prior to 7/6/09, reflects the performance of the Fund’s Class J Shares, the initial share class,
calculated using the fees and expenses of Class A Shares, without the effect of any fee and expense limitations or waivers. If Class A Shares of the Fund had been available during periods prior to 7/6/09, the
performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class A Shares reflects the fees and expenses of Class A Shares, net of any fee and expense
limitations or waivers.
The fees and expenses shown were determined based on net assets as of the fiscal period ended 6/30/10. Contractual waivers agreed to by Janus Capital, where applicable, are included under “Net Annual Fund
Operating Expenses.” (All expenses 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.)
Barclays Capital U.S. Aggregate Bond Index is made up of the Barclays Capital U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Based Securities Index, including securities
that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. The Fund’s portfolio may differ significantly from the securities held in the
index. The index is unmanaged and not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.
Returns include reinvestment of dividends and capital gains.
C-0611-048 10-15-11 199-08-13627 07-11
Janus Flexible Bond Fund
2Q11
as of 6/30/11
Fund distributed by Janus
Distributors LLC (07/11)
Glossary
Alpha is a measure of the
portfolio’s risk-adjusted
performance. When compared to
the portfolio’s beta, a positive
alpha indicates better-thanexpected
portfolio performance
and a negative alpha indicates
worse-than-expected portfolio
performance.
Sharpe Ratio is a measure of
three-year historical adjusted
performance calculated by
dividing the portfolio’s excess
returns by the standard deviation
of those returns to determine
reward per unit of risk. The higher
the ratio, the better the portfolio’s
historical risk-adjusted
performance.
Beta is a measure of the volatility
of a portfolio relative to the
overall market. A beta less than
1.00 indicates lower risk than the
market; a beta greater than 1.00
indicates higher risk than the
market. Beta is most reliable as a
risk measure when the return
fluctuations of the portfolio are
highly correlated with the return
fluctuations of the index chosen
to represent the market.
R2 represents the percentage of
the portfolio’s movements that
can be explained by the general
movements of the market. Index
portfolios will tend to have R2
values very close to 1.00.
Standard Deviation is an
indicator of the portfolio’s total
return volatility, which is based on
a minimum of 36 monthly returns.
The larger the portfolio’s
standard deviation, the greater
the portfolio’s volatility.

Sector Allocation (% of Fund)
Treasuries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.5
Credit – Investment Grade . . . . . . . . . . . . . . . . . 44.5
Credit – High-Yield . . . . . . . . . . . . . . . . . . . . . . . . . 24.4
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.4
Cash/Equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2
Quality Breakdown (% of Fund)
S&P Ratings
AAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.34
AA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.21
A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.34
BBB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.32
BB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.06
B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.75
Not Rated* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.77
Credit Industry Allocation (% of Fund)
Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.0
Consumer Non-Cyclicals. . . . . . . . . . . . . . . . . . . . . 7.3
Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5
Consumer Cyclicals . . . . . . . . . . . . . . . . . . . . . . . . . 6.1
Finance Companies . . . . . . . . . . . . . . . . . . . . . . . . . 6.0
Basic Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4
REITs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2
Capital Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1
Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7
Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5
Brokerage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3
Electric. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4

[ozzeran]

Avoid debt. Period.

I've done this for awhile that's why I still drive my 05 Kia.

The car is fine, but boring, I know that's the wrong reason to buy a new car but hey, if I keep this outlook I will have next to nothing.

I am one to not splurge on major expenses but seem to buy little shit that adds up over time, so as of this week I am on a fairly strict budget, so I can afford the car and a house when it's time.

I have more than enough of this money to put down on a house but thought about using 15k to put down on a new car to keep the payments down.

I dunno, I would love to make good money on the investment but not sure right now without a lot of risk.

[347Mike]

I've done this for awhile that's why I still drive my 05 Kia.

The car is fine, but boring, I know that's the wrong reason to buy a new car but hey, if I keep this outlook I will have next to nothing.

I am one to not splurge on major expenses but seem to buy little shit that adds up over time, so as of this week I am on a fairly strict budget, so I can afford the car and a house when it's time.

I have more than enough of this money to put down on a house but thought about using 15k to put down on a new car to keep the payments down.

I dunno, I would love to make good money on the investment but not sure right now without a lot of risk.

I just sold my "newer" car for one that is ten years old because I was sick of payments. In a year or two it will be paid off and all I will have is my house payment. Screw buying a new car. New cars are nice and all but I would rather have the 20-30k in the bank then in a fancy car. JMO

It is amazing what 12 months and the mindset of making a return on everything you buy can do to your savings.