Janus Capital Group Overview

Transcription

1 Janus Capital Group Overview INTRODUCED BY JANUS CAPITAL INTERNATIONAL LIMITED Janus Capital Group Overview Third Quarter 2010

2 TABLE OF CONTENTS Janus Capital Group Overview Janus Overview INTECH Overview Perkins Overview Appendix 2 JANUS CAPITAL GROUP OVERVIEW

3 JANUS CAPITAL GROUP OVERVIEW Janus Capital Group Investment Manager Investment Approach Investment Strategies Established: 1969 AUM: $100.6B Research-Driven Equity & Fixed Income Grounded in unconstrained, fundamental research Risk management overlay 40 years of experience Large, Mid and Small Cap Growth Global/International l/i l Fixed Income Core Blend Long/Short Established: 1987 AUM: $42.4B Janus ownership: ~95% Established: 1980 AUM: $17.8B Janus ownership: ~78% Mathematical Equity Proprietary mathematical approach Risk-managed process Virtually no style drift 22 years of experience Value Equity Singular approach to value investing Disciplined valuation process Focus on downside analysis before upside potential 30 years of experience Large Cap Growth Large Cap Value Large Cap Core Enhanced Global/International Long/Short Small Cap Value Mid Cap Value Large Cap Value All Cap Value Global Value Vl Value Plus Income 3 JANUS CAPITAL GROUP OVERVIEW

4 JANUS OVERVIEW FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION

5 JANUS OVERVIEW Janus Capital Group Investment Manager Investment Approach Investment Strategies Key Benefits: Established: 1969 AUM: $100.6B Research-Driven Equity & Fixed Income Grounded in unconstrained, fundamental research Risk management overlay 40 years of experience Large, Mid and Small Cap Growth Global/International Fixed Income Core Blend Long/Short We believe unconstrained research drives alpha for our clients. Research-driven approach designed to seek alpha Strive for outperformance irrespective of market cycles Collaborative culture promotes idea generation Guiding principles: Start with research, not the benchmark Invest with conviction where we believe we have research insight Uncover different or potentially better information Interpret information differently Employ a disciplined approach to portfolio construction Foster a culture of collaboration and debate As of 30 September, JANUS CAPITAL GROUP OVERVIEW

6 SECTOR PERFORMANCE HIGHLIGHTS STRENGTH OF RESEARCH Performance of Janus Global Research Growth Equity Portfolio Holdings, as of Q10 Period (30/6/10 30/9/10) 1 Year Period (30/9/09 30/9/10) 25% 30% Total Returns (% %) 20% 15% 10% 5% 13.1% 21.2% 15.3% 15.1% 14.2% 13.6% 17.1% 16.8% 13.3% 8.6% 20.9% 18.2% 17.1% 11.3% Total Returns (% %) 25% 20% 15% 10% 5% 13.4% 16.5% 16.2% 19.1% 10.0% 6.6% 6.1% 3.8% 3.8% 25.5% 15.7% 22.6% 9.0% 0% 0% Communications Communications Consumer Energy & Utilities Financials Healthcare Industrials & Materials Technology -5% Consumer Energy & Utilities -2.8% Financials Healthcare Industrials & Materials Technology 3 Year Period (30/9/07 30/9/10) 5 Year Period (30/9/05 30/9/10) Total Returns (% %) 5% 0% -5% -10% -15% -20% -9.0% -5.0% -0.3% 0.6% Consumer -8.7% -11.2% Energy & Utilities -12.6% -15.3% -6.1% -3.5% 3.2% -7.2% Financials Healthcare Industrials & Materials 0.6% -5.4% Technology Total Returns (% %) 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% 2.5% 2.4% Communications Communications 9.6% 6.2% Consumer 8.0% 0.1% Energy & Utilities -0.1% -4.0% 1.1% 1.3% 14.2% 5.7% Financials Healthcare Industrials & Materials 6.9% 2.5% Technology Janus Global Research Growth Equity Representative Account MSCI World Growth Index 6 Total returns are gross of advisory fees and may differ from actual return as it is based only on end-of-day equity holdings in the portfolio. Total returns represent the time a stock or group was held within the portfolio. Sector allocation source: Janus internal research sectors. Please see page 8 for standardized performance as of the most recent calendar quarter-end. Source: Janus JANUS CAPITAL GROUP OVERVIEW

7 JANUS INSTITUTIONAL STRATEGIES RANKINGS Since inception Period ended Equity Strategies Global Research Growth Equity International Equity Mid Cap Growth Small-Mid Cap Growth Percentile Rank king Benchmark(s) () MSCI World Growth Index MSCI EAFE Index Russell Midcap Growth Index Russell 2500 TM Growth Index Inception Date 4/05 1/97 4/89 3/05 Composite Benchmark Member Count Past performance cannot guarantee future results. Top quartile performance percentile rankings are versus each strategy s primary benchmark. Not all Janus strategies have ranked in the top quartile for all time periods. Please see pages 8-10 for standardized performance as of the most recent calendar quarter-end. end evestment Alliance software was used by Janus Capital Group to create the exhibits. A fee was paid to the firm for the use of the software. Rankings are based on results that are gross of fees and annualized since inception. Janus Capital Management LLC serves as investment adviser Source: Janus JANUS CAPITAL GROUP OVERVIEW

8 JANUS INSTITUTIONAL STRATEGIES RANKINGS Since inception Period ended Opportunistic Strategies Fixed Income Strategies Concentrated Growth Opportunistic Alpha Opportunistic Growth Core Plus Bond High Yield Bond Short Duration Bond Percentile Rank king Benchmark(s) Russell 1000 Growth Index S&P 500 Index MSCI All Country World Index SM Barclays Capital Barclays Capital Russell 1000 Barclays Capital U.S. Corporate 1-3 Year U.S. Growth Index U.S. Aggregate High Yield Bond Gov t./credit Bond Index Index Index Inception Date 10/94 4/00 4/00 1/91 1/93 Composite Benchmark Member Count / / Past performance cannot guarantee future results. Top quartile performance percentile rankings are versus each strategy s primary benchmark. Not all Janus strategies have ranked in the top quartile for all time periods. Please see pages 8-10 for standardized performance as of the most recent calendar quarter-end. end evestment Alliance software was used by Janus Capital Group to create the exhibits. A fee was paid to the firm for the use of the software. Rankings are based on results that are gross of fees and annualized since inception. Janus Capital Management LLC serves as investment adviser. Source: Janus JANUS CAPITAL GROUP OVERVIEW

9 PERFORMANCE: JANUS COMPOSITES as of Average Annual Total Returns (%) Composite (Inception Date) 3Q10 YTD 1 Year 3 Years 5 Years 10 Years 15 Years 20 Years Since Inception US Large Cap Equities Opportunistic Growth - Gross (1/91) Russell 1000 Growth Index Difference (Gross-Index) Opportunistic Growth - Net (1/91) Concentrated Growth - Gross (10/94) Russell 1000 Growth Index Difference (Gross-Index) Concentrated Growth - Net (10/94) Classic Growth - Gross (1/98) Russell 1000 Growth Index Difference (Gross-Index) Classic Growth - Net (1/98) US Research Growth Equity - Gross (8/07) Russell 1000 Growth Index Difference (Gross-Index) US Research Growth Equity - Net (8/07) US Research Concentrated Growth Equity - Gross (8/07) Russell 1000 Growth Index Difference (Gross-Index) US Research Concentrated Growth Equity - Net (8/07) US Research Core Equity - Gross (8/04) Russell 1000 Index Difference (Gross-Index) US Research Core Equity - Net (8/04) Past performance cannot guarantee future results. Your principal may be at risk during certain market periods. Composite returns for one year or greater are annualized. Please see pages for important disclosures. 3-month, year-to-date, 1-, 3-, 5-yr and since inception returns for Janus US Research Core Equity Composite reported as of September 30, 2010, were incorrectly overstated. Corrected returns are reflected above. 9 JANUS CAPITAL GROUP OVERVIEW

10 PERFORMANCE: JANUS COMPOSITES as of Average Annual Total Returns (%) Composite (Inception Date) 3Q10 YTD 1 Year 3 Years 5 Years 10 Years 15 Years 20 Years Since Inception US Small and Mid Cap Equities Small Company Growth - Gross (1/93) Russell 2000 Growth Index Difference (Gross-Index) Small Company Growth - Net (1/93) Small-Mid Cap Growth - Gross (3/05) Russell 2500 TM Growth Index Difference (Gross-Index) Small-Mid Cap Growth - Net (3/05) Mid Cap Growth - Gross (4/89) Russell Midcap Growth Index Difference (Gross-Index) Mid Cap Growth - Net (4/89) Global/International International Equity - Gross (1/97) MSCI EAFE Index MSCI All Country World ex-us Index SM Difference (Gross-Index) International Equity - Net (1/97) Global Research Growth Equity - Gross (4/05) MSCI World Growth Index MSCI All Country World Index SM Difference (Gross-Index) Global Research Growth Equity - Net (4/05) Global Research Core Equity - Gross (8/07) MSCI World Index SM MSCI All Country World Index SM Difference (Gross-Index) Global l Research Core Equity - Net (8/07) European Equity - Gross (10/08) MSCI Europe Index SM Difference (Gross-Index) European Equity Net of Fees (10/08) Past performance cannot guarantee future results. Your principal may be at risk during certain market periods. Composite returns for one year or greater are annualized. Please see pages for important disclosures. 3-month, year-to-date, 1-year, and since inception returns for Janus European Equity Composite reported as of September 30, 2010, were incorrectly overstated. Corrected returns are reflected above. JANUS CAPITAL GROUP OVERVIEW

11 PERFORMANCE: JANUS COMPOSITES as of Composite (Inception Date) 3Q10 YTD 1 Year 3 Years 5 Years Average Annual Total Returns (%) Fixed Income Core Plus Bond - Gross (1/93) Barclays Capital U.S. Aggregate Bond Index Difference (Gross-Index) Core Plus Bond - Net (1/93) Short Duration Bond - Gross (1/93) Barclays Capital 1-3 Year U.S. Government/Credit Index Difference (Gross-Index) Short Duration Bond Net Years 15 Years 20 Years Since Inception High Yield Bond - Gross (1/96) Barclays Capital U.S. Corporate High-Yield Bond Index Difference (Gross-Index) High Yield Bond - Net (1/96) Asset Allocation Balanced - Gross (1/88) Balanced Index Difference (Gross-Index) Balanced - Net (1/88) Alternative Global Life Science Gross (1/99) MSCI World Health Care Difference (Gross-Index) Net of Fees Global Technology Gross (1/99) MSCI World IT Index Difference (Gross-Index) Net of Fees Global Real Estate Gross (6/07) FTSE EPRA/NAREIT Global Index Difference (Gross-Index) Nt Net of Fees The year-to-date,1-, 3-, 5-, 10-, 15- year, since inception returns for Janus Short Duration Bond Composite reported as of September 30, 2010 were incorrectly understated. Corrected returns are reflected above. The 3- month, year-to-date, 1-, 3-, 5-, 10-, 15-year, since inception returns for Janus Core Plus Bond Composite reported as of September 30, 2010, were incorrectly understated. Corrected returns are reflected above. 3-month, year-to-date, 1-, 3-, 5-, 10-year, since inception returns for Janus High Yield Composite reported as of September 30, 2010, were incorrectly understated. Corrected returns are reflected above. 3-month, year-to-date, 1-, 3-year and since inception returns for Janus Global Real Estate Composite reported as of September 30, 2010, were incorrectly overstated. Corrected returns are reflected above. JANUS CAPITAL GROUP OVERVIEW

12 BROAD SPECTRUM OF JANUS CAPITAL FUNDS TO MEET CLIENT NEEDS Janus US Research Janus Global Janus Europe Fund Research Fund Fund US All Cap Growth Fund Investment Style US Equity Global Equity European Core Equity US Equity Investment Date Total Fund Net Assets $9.1 M $14.8 M 2.9 M $566.3 M Total Number of Holdings Weighted Average Market Cap. (US $/ Billions) $40.1 $ $20.8 Tracking Error N/A Information Ratio N/A 0.28 Alpha N/A 5.79 Lead Manager Janus Research Team Janus Research Team Wahid Chammas Guy Scott Carmel Wellso John Eisinger 12 JANUS CAPITAL GROUP OVERVIEW

13 BROAD SPECTRUM OF JANUS CAPITAL FUNDS TO MEET CLIENT NEEDS Janus US Twenty Fund Janus US Flexible Janus US High Yield Perkins US Strategic Income Fund Value Fund Value Fund Investment Style US Equity US Fixed Income US Fixed Income US Value Investment Date Total Fund Net Assets $859.4 M $742.7 M $988.0 M $1.1 B Total Number of Holdings Weighted Average Market Cap. (US $ Billions) $83.9 N/A N/A $29.5 Tracking Error Information Ratio Alpha Lead Manager Ron Sachs Gibson Smith/ Darrell Watters Gibson Smith/ Darrell Watters Perkins Investment Management LLC 13 JANUS CAPITAL GROUP OVERVIEW

14 INTECH Overview

15 INTECH Overview As of 30 September, 2010 Founded on June 30, 1987 Stable investment management team Risk-Managed Mathematical Investment Strategies Risk-Managed Mathematical Investment Strategies: - Core/Enhanced Index - Growth and Value - Global and International - Long/Short Locations: - Global headquarters West Palm Beach, FL - Research Princeton, NJ - International London, UK As of 30 September, 2010, INTECH has approximately $ billion under management Large Cap Value $677.4M Global Core $2.3B Large Cap Core $1.9B Enhanced $22.6B International Equity $641.9M European Equity $1.5M Long/Short $14.8M Large Cap Growth $14.3B An independently managed subsidiary of Janus Capital Group Inc. 15

16 Investment Process Step #1: Initial Investment Universe Benchmark Index Step #2: Stock kscreen Stocks less than 1 basis point in the index are excluded Step #3: Mathematical Process Analyzing relative volatility and correlation, INTECH attempts to build a more efficient portfolio. Robust and resistant statistical techniques are employed using proprietary models. Risk Controls Enhanced dindex Enhanced dplus Large Cap Core Large Cap pgrowth Large Cap Value Global Core International Equity 1% or 8x maximum differential vs. benchmark* Portfolio capitalization constraint 1% or 8x maximum differential vs. benchmark* 2.5% or 10x maximum differential vs. benchmark* 2.5% or 10x maximum differential vs. benchmark* 2% or 8x maximum differential vs. benchmark* 2.5% or 20x maximum differential vs. benchmark* 2.5% or 10x maximum differential vs. benchmark* Beta constraint Beta constraint Beta constraint Beta constraint Beta constraint Beta constraint Market capitalization constraint for non-u.s. portion of portfolio Maximize information ratio Maximize information ratio Maximize information ratio Maximize information ratio Maximize information ratio Maximize information ratio Maximize information ratio U.S. vs. non-u.s. correlation and weight constraint Step #4: More Efficient Portfolio Re-weight the index to a potentially more efficient combination Rebalance and re-optimize periodically * Trading system allows a slightly greater maximum distance around benchmark weights. Portfolio weights may slightly exceed the maximum differential over time due to market action. Risk controls do not promise any level of performance or guarantee against loss of principal. 16

17 How INTECH s Process Captures Relative Volatility PASSIVE PORTFOLIO Passive portfolio produces no net gain. Stocks have volatility, but opportunity to generate excess return has not been captured. 240 $ $ $ % -28.6% INTECH PORTFOLIO INTECH applies its mathematical formula to establish potentially more efficient weights. Dynamic process of maintaining and re-establishing those weights produces the potential excess return. Compound Return = 0%/Period $ $ the potential excess return. $ % Rebalance +25% Compound Return = 25%/Period Criteria for hypothetical illustration: two-stock portfolio, perfect negative correlation, move by a factor of two. Mathematically, a 50%/50% target weighting for a two-stock portfolio with equal growth rates maximizes long-term return. The hypothetical illustrations shown are provided to demonstrate INTECH s trading process and how relative volatility can be captured. Trading costs and other expenses have not been considered. 17

18 How INTECH s Investment Process is Implemented Target weights are determined at optimization. Trading bands around target weights may vary by strategy, stock and through time. Rebalance to target weights regularly only if stock weights move outside designated bands. STOCK WEIGHT Sell Sell Sell Target Weight Stock weight at optimization No trade necessary Buy Begin Rebalance Cycle Trading Day Hypothetical illustration. See Presentation Notes for additional information. Trading Trading Trading Trading Day Day Day Day 18

19 INTECH Product Vehicle Matrix Product Benchmark Excess Return Objective* Tracking Error Objective* Separate Commingled Institutional Account Pool ** Shares Min = $50M Min = $5M Min = $1M Inception Date Enhanced Index 1 S&P 500 Index bps bps Available Available Not Available 4/1/1998 Enh hanced Broad Enhanced Index 5 Russell 1000 Index bps bps Available Not Available Not Available 10/1/2008 Enhanced USA 9 MSCI USA Gross Index bps bps Available Available Not Available Not Funded Enhanced International Equity 33 MSCI EAFE Index bps bps Available Not Available Not Available Not Funded Enhanced Global Equity 29 MSCI World Index bps bps Available Not Available Not Available 1/1/2010 Enhanced Plus 2 S&P 500 Index bps bps Available Available Not Available 7/1/1987 Moderate Broad Enhanced Plus 6 Russell 1000 Index bps bps Available Available Not Available 4/1/2001 Enhanced Plus USA 10 MSCI USA Gross Index bps bps Available Not Available Not Available 1/1/2006 Large Cap Value 22 S&P 500 Value Index bps bps Available Available Not Available 7/1/1993 Broad Large Cap Value 26 Broad LCG Moderate 18 Russell 1000 Value Index Russell 1000 Growth Index bps bps Available Available Available 8/1/ bps bps Available Not Available Not Available 12/1/2005 Enhanced Plus Global Equity 30 MSCI World Index bps bps Available Not Available Not Available Not Funded Large Cap Growth 15 S&P 500 Growth Index bps bps Available Available Not Available 7/1/1993 Broad Large Cap Growth 19 Russell 1000 Growth Index bps bps Available Available Available 11/1/2000 Large Cap Core 3 S&P 500 Index bps bps Available Available Available 8/1/2001 Aggressive Global Core 31 MSCI World Index bps bps Available Available Not Available 1/1/2005 International Equity 35 MSCI EAFE Index bps bps Available Available Available 11/1/2006 European Equity 39 MSCI Europe Index bps bps Global Core ex Australia 43 MSCI World ex Australia Index Available (Min = 50M) Available (Min = 5M) Not Available 1/1/ bps bps Available Available Not Available 9/1/2008 Kokusai (Global Core ex Japan) 47 MSCI Kokusai Index bps bps Available Available Not Available 5/1/2009 g/ ort Lon Sho Market Neutral 52 3-Month LIBOR bps bps Available Not Available Not Available 12/1/2006 * Annualized long term, gross of fees. The excess return and tracking error objectives are based on mathematical projections that are reflective of what each strategy attempts to achieve during the optimization routine. Actual results may vary, and the objectives should not be considered or relied upon as a performance guarantee. ** A commingled pool is a private investment entity offered only to a limited number of qualified investors. Commingled pools, sub-advised by INTECH, are not registered as investment companies under the Investment Company Act of 1940, as amended and shares of the commingled pools will not be registered under the Securities Act of 1933, as amended, or any other relevant securities laws. 19

20 Risk Control is Important As of 30 September, Month Rolling Tracking Er rror INTECH Enhanced Plus Strategy 5% Enhanced Plus - Inception: 7/1/1987 4% 3% 2% 1% 0% Long-term tracking error target * : 2.00% % 1/1988 1/1989 1/1990 1/1991 1/1992 1/1993 1/1994 1/1995 1/1996 1/1997 1/1998 1/1999 1/2000 1/2001 1/2002 1/2003 1/2004 1/2005 1/2006 1/2007 1/2008 1/2009 1/2010 Because extreme adverse events Black Swans occur more frequently than most people think, INTECH has embedded tight risk controls in its investment process. Relative downside protection is equally if not more important than upside potential. Tracking error is a measure of how closely a portfolio tracks its index. It is realized in the form of above-average or below-average relative returns. * Gross of fees, annualized long term. Enhanced Plus tracking error is relative to the S&P 500 Index. Data presented reflects past performance, which is no guarantee of future results. Rolling periods calculated monthly since inception. See Composite Performance and Presentation Notes for additional information. 20

21 Skill vs. Luck? As of 30 September, 2010 INTECH Strategies Inception Date Annualized Excess Return Annualized Tracking Error Information Ratio* t Statistic One Tail Significance Enhanced Plus 7/1/ % 1.53% 1.99% % 0.01% Large Cap Growth 7/1/ % 4.40% % Large Cap Value 7/1/ % 4.09% % Enhanced Index 4/1/ % 1.29% 1.62% % 0.28% Broad Large Cap Growth 11/1/ % 4.90% % Broad Enhanced Plus 4/1/ % 1.82% % Large Cap Core 8/1/ % 2.27% 290% 2.90% % 0.98% Broad Large Cap Value 8/1/ % 1.59% % Global Core 1/1/ % 2.91% % Enhanced Plus USA 1/1/2006 // -0.19% 2.86% % International Equity 11/1/ % 4.09% % The one tail significance is the estimated probability that pure luck would produce the portfolio s observed alpha or better. A good a priori reason for thinking an investment process should work combined with a low one tail significance should provide a high degree of confidence to investors. *Source: FactSet. Information Ratio = Excess Return Tracking Error Data presented reflects past performance, which is no guarantee of future results. Data presented is gross of fees. Chart includes strategies with at least a three-year track record that do not involve the use of leverage. See Composite Performance and Presentation Notes for additional information. 21

22 INTECH Strategies: Composite Performance As of 30 September, 2010 Active Risk-Managed Annualized Returns Inception U.S. Strategies 3 Mos YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs 20 Yrs ITD Date Enhanced Plus Gross 11.42% 5.04% 11.68% -5.96% 1.15% 5.56% 1.71% 8.14% 10.75% 9.82% 7/1/1987 S&P 500 Index 11.29% 3.89% 10.16% -7.16% 0.64% 4.04% -0.43% 6.45% 9.05% 8.30% Difference (Gross-Index) 0.12% 1.15% 1.52% 1.20% 0.51% 1.52% 2.14% 1.69% 1.70% 1.53% Enhanced Plus Net 11.33% 4.80% 11.34% -6.25% 0.84% 5.22% 1.36% 7.75% 10.35% 9.42% Large Cap Growth Gross 13.09% 646% 6.46% 14.72% -3.07% 176% 1.76% 561% 5.61% 258% 2.58% 11.04% 11.94% 7/1/1993 S&P 500 Growth Index* 12.63% 3.63% 11.67% -4.32% 1.72% 3.77% -1.93% 6.32% 7.59% Difference (Gross-Index) 0.46% 2.83% 3.05% 1.25% 0.03% 1.84% 4.51% 4.71% 4.35% Large Cap Growth Net 12.96% 6.09% 14.18% -3.51% 1.29% 5.11% 2.07% 10.47% 11.36% Large Cap Value Gross 10.87% 6.03% 10.77% -8.57% 0.34% 5.90% 3.50% 8.58% 9.34% 7/1/1993 S&P 500 Value Index** 9.98% 4.15% 8.54% % -0.59% 4.17% 0.85% 6.24% 7.26% Difference (Gross-Index) 0.89% 1.88% 2.23% 1.56% 0.94% 1.73% 2.65% 2.34% 2.09% Large Cap Value Net 10.76% 5.72% 10.34% -8.93% -0.05% 5.49% 3.10% 8.16% 8.92% Enhanced Index Gross 11.59% 4.72% 11.30% -6.01% 1.32% 5.02% 0.77% 3.35% 4/1/1998 S&P 500 Index 11.29% 3.89% 10.16% -7.16% 0.64% 4.04% -0.43% 2.06% Difference (Gross-Index) 0.29% 0.83% 1.14% 1.16% 0.68% 0.99% 1.20% 1.29% Enhanced Index Net 11.49% 4.46% 46% 10.94% -6.31% 100% 1.00% 4.69% 0.44% 3.01% Broad Large Cap Growth Gross 12.19% 6.85% 15.31% -5.45% 0.87% 4.56% -0.27% 11/1/2000 Russell 1000 Growth Index 13.00% 4.36% 12.65% -4.36% 2.06% 4.14% -2.99% Difference (Gross-Index) -0.81% 2.49% 2.66% -1.09% -1.19% 0.42% 2.72% Broad Large Cap Growth Net 12.05% 6.44% 14.72% -5.93% 0.36% 4.03% -0.79% Broad Enhanced Plus Gross 11.78% 6.22% 12.80% -6.20% 0.82% 5.21% 3.73% 4/1/2001 Russell 1000 Index 11.55% 4.42% 10.76% -6.79% 0.86% 4.47% 2.23% Difference (Gross-Index) 0.22% 1.80% 2.04% 0.59% -0.04% 0.74% 1.51% Broad Enhanced Plus Net 11.70% 5.99% 12.47% -6.47% 0.53% 4.90% 3.40% Large Cap Core Gross 11.01% 5.08% 11.75% -5.87% 0.63% 6.12% 3.56% 8/1/2001 S&P 500 Index 11.29% 3.89% 10.16% -7.16% 0.64% 4.04% 1.29% Difference (Gross-Index) -0.29% 029% 119% 1.19% 159% 1.59% 129% 1.29% -0.01% 001% 208% 2.08% 227% 2.27% Large Cap Core Net 10.87% 4.68% 11.20% -6.33% 0.17% 5.63% 3.09% Broad Large Cap Value Gross 11.04% 5.84% 10.59% -7.67% 0.18% 3.77% 8/1/2004 Russell 1000 Value Index 10.13% 4.49% 8.90% -9.38% -0.49% 2.62% Difference (Gross-Index) 0.91% 1.35% 1.69% 1.72% 0.67% 1.15% Broad Large Cap Value Net 10.93% 5.53% 10.16% -8.01% -0.20% 3.38% * For Large Cap Growth from inception to 12/31/05, the composite s benchmark was the S&P 500/Barra Growth Index ( Barra Growth Index ). In 2005, S&P announced index name and methodology changes affecting the Barra Growth Index, which later became the S&P 500/Citigroup Growth Index ( Citigroup Growth Index ). During the transitional period, from 1/1/06 to 3/31/06, the benchmark return consisted partially of the return of the Barra Growth Index and the Citigroup Growth Index. On 4/1/06 the composite s benchmark was changed to the Citigroup Growth Index. Effective 12/9/2009, the Citigroup Growth Index s name was changed to S&P 500 Growth Index. ** For Large Cap Value from inception to 12/31/05, the composite s benchmark was the S&P 500/Barra Value Index ( Barra Value Index ). In 2005, S&P announced index name and methodology changes affecting the Barra Value Index, which later became the S&P 500/Citigroup Value Index ( Citigroup Value Index ). During the transitional period, from 1/1/06 to 3/31/06, the benchmark return consisted partially of the return of the Barra Value Index and the Citigroup Value Index. On 4/1/06, the composite s benchmark was changed to the Citigroup Value Index. Effective 12/9/2009, the Citigroup Value Index s name was changed to S&P 500 Value Index. Past performance does not guarantee future results. Past performance does not guarantee future results. Performance includes the reinvestment of dividends and other earnings. Difference may not agree with input data due to rounding. See Presentation Notes for additional information. 22

23 INTECH Strategies: Composite Performance (cont d) As of 30 September, 2010 Active Risk-Managed Annualized Returns Inception U.S. Strategies 3 Mos YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs 20 Yrs ITD Date Broad Large Cap Growth Moderate Gross 11.98% 6.29% 14.76% -4.73% 0.88% 12/1/2005 Russell 1000 Growth Index 13.00% 4.36% 12.65% -4.36% 1.45% Difference (Gross-Index) -1.03% 1.93% 2.11% -0.37% -0.57% Broad Large Cap Growth Moderate Net 11.90% 6.09% 14.47% -4.97% 0.61% Enhanced Plus USA Gross 11.50% 5.29% 12.20% -6.60% 0.15% 1/1/2006 MSCI USA Gross Index 11.53% 3.99% 10.27% -6.98% 0.34% Difference (Gross-Index) -0.03% 1.30% 1.93% 0.38% -0.19% Enhanced Plus USA Net 11.40% 5.02% 11.82% -6.90% -0.17% Broad Enhanced Index Gross 11.43% 4.93% 11.55% 1.50% 10/1/2008 Russell 1000 Index 11.55% 442% 4.42% 10.76% 196% 1.96% Difference (Gross-Index) -0.12% 0.51% 0.79% -0.46% Broad Enhanced Index Net 11.36% 4.70% 11.21% 1.17% Active Risk-Managed Global/International Strategies Global Core Gross 14.35% 4.37% 9.04% -6.70% 2.86% 4.43% 1/1/2005 MSCI World Index 13.89% 3.01% 7.31% -7.75% 1.85% 2.75% Difference (Gross-Index) 0.46% 1.36% 1.73% 1.04% 1.01% 1.68% Global Core Net 14.20% 3.95% 8.46% -7.21% 2.30% 3.87% International Equity Gross 17.08% 3.80% 5.97% -8.32% 0.20% 11/1/2006 MSCI EAFE Index 16.53% 1.46% 3.71% -9.06% -2.44% Difference (Gross-Index) 0.55% 2.34% 2.25%.5% 0.73% 2.64% International Equity Net 16.95% 3.47% 5.52% -8.71% -0.22% Global Core ex Australia Gross 13.87% 4.47% 9.31% -4.12% 9/1/2008 MSCI World ex Australia Index 13.52% 2.95% 7.22% -3.74% Difference (Gross-Index) 0.35% 1.52% 2.10% -0.38% Global Core ex Australia Net 13.73% 4.09% 8.78% -4.59% Kokusai (Global Core ex Japan) Gross 14.66% 4.64% 10.21% 24.84% 5/1/2009 MSCI Kokusai Index 14.83% 3.00% 8.12% 26.37% Difference (Gross-Index) -0.17% 1.64% 2.08% -1.53% Kokusai (Global Core ex Japan) Net 14.51% 4.22% 9.61% 24.17% Active Risk-Managed Long/Short Strategy Market Neutral Gross 0.31% 2.32% 3.34% 3.00% 2.82% 12/1/2006 LIBOR 3-Month Rate 0.09% 0.27% 0.34% 1.63% 2.43% Difference (Gross-Index) 0.23% 2.05% 3.01% 1.37% 0.38% 23 Market Neutral Net 0.09% 1.63% 2.42% 2.08% 1.90% Past performance does not guarantee future results. Performance includes the reinvestment of dividends and other earnings. Difference may not agree with input data due to rounding. See Presentation Notes for additional information.

24 PERKINS OVERVIEW

25 30-YEAR HISTORY OF MANAGING CLIENT ASSETS Perkins is founded Small Cap Value strategy launches Mid Cap Value strategy launches Janus Capital Group takes 30% ownership stake in Perkins Perkins assumed management of Perkins US Strategic Value Fund Large Cap Value strategy launches Janus acquires additional 50% ownership stake Value Plus Income strategy launches Management of Global Value transitions to Perkins Perkins Today (as of 30/9/10) $17.8 billion in total AUM ~40% of AUM from institutional clients Independent subsidiary of Janus Capital Group ~78% owned by Janus Capital Group Perkins Investment Management singular focus on value investing Janus Capital Group: Core business functions (global distribution and marketing; risk management and trading; operations; human resources; legal) l) 25

26 PERKINS INVESTMENT PROCESS OVERVIEW Identify undervalued companies Determine what we believe to be high quality companies Determine conservative downside price target Determine conservative upside price target Determine reward to risk ratio Reward/risk ratio drives portfolio management decisions Start small and build positions gradually Up and down quarters are determined by the performance of the composite s primary benchmark. 26

27 INVESTMENT DECISION AND PORTFOLIO CONSTRUCTION Portfolio managers make final investment decision Analysts write up recommendation and discuss with portfolio manager Tracker portfolios reflect real-time analyst conviction Portfolio managers build diversified portfolios Initial positions bps, build position gradually Maximum position size at firm of 4% Typically no more than 20% in any sector with exception of financials which is limited to 35% Reward/risk ratio drives portfolio management decisions 1.0 : 1.0 Reward/Risk ratio Position on watch 0.5 : 1.0 Reward/Risk ratio Exiting position 1.5 : 1.0 Reward/Risk ratio Initiate t or add to existing position LOW TRADE-OFF HIGH TRADE-OFF 27

28 PERFORMANCE AND REWARD/RISK STATISTICS Composite vs. benchmark as of 30/9/10 PERKINS SMALL CAP VALUE COMPOSITE (vs. Russell 2000 Value Index) Since Inception Average Up and Down Quarterly Returns 1/7/88 30/9/10 uarterly Return (%) Average Qu Perkins Small Cap Value Composite - Gross Perkins Small Cap Value Composite - Net Russell 2000 Value Index Down Quarters 63 Up Quarters REWARD & RISK STATISTICS (vs. Russell 2000 Value Index) Three-Year Percentile Rankings (30/9/07 30/9/10) Excess Return 5 th 6 th 6 th Information Ratio 76th Sharpe Ratio 68 th Tracking Error 46 th 85 th 79 th Standard Deviation Beta Perkins Small Cap Value Composite Russell 2000 Value Index ea Small Cap Value Equity Peer Group Median Member Count Performance figures represent a composite of fully discretionary portfolios and include reinvestment of dividends and other earnings. Please see standardized performance on page 28. Up and down calendar quarters are determined by the returns of the index shown. 28

29 PERFORMANCE AND REWARD/RISK STATISTICS Composite vs. benchmark as of 30/9/10 PERKINS MID CAP VALUE COMPOSITE (vs. Russell Midcap Value Index) Since Inception Average Up and Down Quarterly Returns 1/10/98 30/9/10 uarterly Return (%) Average Qu Perkins Mid Cap Value Composite - Gross Perkins Mid Cap Value Composite - Net Russell Midcap Value Index Down Quarters 32 Up Quarters REWARD & RISK STATISTICS (vs. Russell Midcap Value Index) Three-Year Percentile Rankings (30/9/07 30/9/10) th 25 th 30 th 28th Excess Return Information Ratio 58 th Sharpe Ratio 38 th Tracking Error 95 th 91 st Standard Beta Deviation Perkins Mid Cap Value Composite Russell Midcap Value Index ea Mid Cap Value Equity Peer Group Median Member Count Performance figures represent a composite of fully discretionary portfolios and include reinvestment of dividends and other earnings. Please see standardized performance on page 28. Up and down calendar quarters are determined by the returns of the index shown. 29

30 PERFORMANCE AND REWARD/RISK STATISTICS Composite vs. benchmark as of 30/9/10 PERKINS LARGE CAP VALUE COMPOSITE (vs. Russell 1000 Value Index) Since Inception Average Up and Down Quarterly Returns 1/10/06 30/9/10 e Quarterly Return (%) Perkins Large Cap Value Composite - Gross Perkins Large Cap Value Composite - Net Russell 1000 Value Index 8.78 Averag Down Quarters 8 Up Quarters REWARD & RISK STATISTICS (vs. Russell 1000 Value Index) Three-Year Percentile Rankings (30/9/07 30/9/10) th 32nd Excess Return Information Ratio 32 nd 39 th 79 th Sharpe Ratio 70 th 81 st 77 th Tracking Error Standard Deviation Beta Perkins Large Cap Value Composite Russell 1000 Value Index ea Large Cap Value Equity Peer Group Median Member Count Performance figures represent a composite of fully discretionary portfolios and include reinvestment of dividends and other earnings. Please see standardized performance on page 28. Up and down calendar quarters are determined by the returns of the index shown. 30

31 PERFORMANCE AND REWARD/RISK STATISTICS Composite vs. benchmark as of 30/9/10 PERKINS GLOBAL VALUE COMPOSITE (vs. MSCI World Index) Since Inception Average Up and Down Quarterly Returns 7/1/01 30/9/10 PERKINS GLOBAL VALUE COMPOSITE (vs. MSCI World Index) Since PM Inception Average Up and Down Quarterly Returns 7/1/05 30/9/10 uarterly Return (%) Average Qu Perkins Global l Value Composite - Gross Perkins Global l Value Composite - Gross Perkins Global Value Composite - Net Perkins Global Value Composite - Net 7.72 MSCI World Index SM 7.45 MSCI World Index SM Average Qu uarterly Return (%) Down Quarters 23 Up Quarters Down Quarters 13 Up Quarters REWARD & RISK STATISTICS (vs. MSCI World Index) Three-Year Percentile Rankings (30/9/07 30/9/10) th 43 rd 48 th 39 th Excess Return Information Ratio 70 th 59 th Sharpe Ratio Tracking Error 80 th 84 th Standard Deviation Beta Perkins Global Value Composite MSCI World Index SM ea Global Equity Peer Group Median Member Count Performance figures represent a composite of fully discretionary portfolios and include reinvestment of dividends and other earnings. Please see standardized performance on page 15. Up and down calendar quarters are determined by the returns of the index shown. 31

32 PERFORMANCE as of 30/9/10 Average Annual Total Returns (%) 3Q 2010 Year-to-Date 1 Year 3 Years 5 Years 10 Years Since Inception (1/7/88) Perkins Small Cap Value Composite Gross Perkins Small Cap Value Composite Net Russell 2000 Value Index Difference (Gross Returns vs. Index) Q 2010 Year-to-Date 1 Year 3 Years 5 Years 10 Years Since Inception (1/10/98) Perkins Mid Cap Value Composite Gross Perkins Mid Cap Value Composite Net Russell Midcap Value Index Difference (Gross Returns vs. Index) Q 2010 Year-to-Date 1 Year 3 Years Since Inception (1/10/06) Perkins Large Cap Value Composite Gross Perkins Large Cap Value Composite Net Russell 1000 Value Index Difference (Gross Returns vs. Index) Q 2010 Year-to-Date 1 Year 3 Years 5 Years Since PM Since Inception Inception (1/5/05) (1/6/01) Perkins Global Value Composite Gross Perkins Global Value Composite Net MSCI World Index Difference (Gross Returns vs. Index) Past performance cannot guarantee future results. Your principal may be at risk during certain market periods. Composite returns for one year or greater are annualized. 32

33 APPENDIX

34 For Janus and Perkins Composites: Returns are expressed in U.S. dollars. Returns reflect the reinvestment of dividends and other earnings. Janus returns are net of transaction costs and gross of non-reclaimable withholding taxes, if any. The gross performance results presented do not reflect the deduction of investment advisory fees and returns will be reduced by such advisory fees and other contractual expenses as described in the individual contract and Form ADV Part II. Net performance results do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite but they do reflect the deduction of model investment advisory fees based on the maximum fixed fee rate in effect for the respective time period. Actual advisory fees may vary among clients invested in the strategy shown and may be higher or lower than model advisory fees. Composites may include accounts with performance-based fees. Returns for each client will be reduced by such fees and expenses as negotiated in any client contract as discussed in Form ADV Part II. The index returns are provided to represent the investment environment existing during the time periods shown. For comparison purposes, the index is fully invested, which includes the reinvestment of dividends and capital gains. The returns for the index do not include any transaction costs, management fees or other costs. Composition of each individual portfolio may differ from securities in the corresponding benchmark index. The index is used as a performance benchmark only, as Janus does not attempt to replicate an index. Because Janus sector weightings are a residual of portfolio construction, significant differences between sector weightings in client portfolios and the index are common. Mid Cap Growth portfolios, benchmarked to the Russell Midcap Growth Index, invest in a diversified group of stocks with market capitalizations from $2 billion to $13 billion at the time of purchase. The portfolio stock selection process emphasizes predictability and sustainability of growth. Effective January 1, 2005 the composite definition was changed to include sub-advised pooled funds as well as separately managed institutional accounts. Effective January 1, 2009 the composite definition was expanded to also include proprietary mutual funds. A minimum asset size requirement of $5 million for composite participation was used prior to January 1, The composite was created in January Opportunistic Growth portfolios, benchmarked to the Russell 1000 Growth Index, pursue strong growth opportunities in companies of any size, wherever they may exist. Under normal market conditions, the portfolios hold less than 80 equity securities. Effective January 1, 2005 the composite definition was changed to include sub-advised pooled funds as well as separately managed Institutional accounts. From January 1, 2007 through December 31, 2008, the composite was known as the Select Growth composite. Prior to 2007 the composite was known as the Diversified Growth composite. A minimum asset size requirement of $1 million for composite participation was used prior to January 1, The composite was created in January Small Company Growth portfolios, benchmarked to the Russell 2000 Growth Index, invest primarily in small-sized companies selected for their growth potential. Small sized companies are generally those who have market capitalizations less the $4 billion. A typical portfolio invests in approximately 90 to 140 equity securities. Effective January 1, 2005 the composite definition was changed to include only proprietary mutual funds and exclude sub-advised pooled funds. Effective January 1, 2009 the composite definition was expanded to also include sub-advised pooled funds and separately managed institutional accounts. Prior to 2009, the composite was known as the Small Cap Growth-retail Composite. The composite was created in January Concentrated Growth portfolios, benchmarked to the Russell 1000 Growth Index, take concentrated positions in larger well-established companies along with smaller, more aggressive positions selected for their growth potential. A typical portfolio concentrates its investments in 20 to 40 equity securities. Effective January 1, 2005 the composite definition was changed to include sub-advised pooled funds as well as separately managed institutional accounts. Effective January 1, 2009 the composite definition was expanded to also include proprietary mutual funds. Prior to 2006 the composite was known as the Concentrated Aggressive Growth composite. A minimum asset size requirement of $5 million for composite participation was used prior to January 1, The composite was created in January Classic Growth portfolios, benchmarked to the Russell 1000 Growth Index, invest in a diversified portfolio of common stocks selected for their growth potential. Although the portfolios can invest in companies of any size, they generally emphasize positions in larger, well established companies. Generally, a typical portfolio invests in 70 to 90 equity securities. The composite was created in October 2008 and may include proprietary mutual funds, subadvised pooled funds, and separately managed institutional accounts. The composite was created in December Small-Mid Cap Growth portfolios, benchmarked to the Russell 2500 Growth Index, invest primarily in small-sized and medium-sized companies selected for their growth potential. Smalland medium-sized companies have market capitalizations less than $10 billion. Effective January 1, 2005 the composite definition was changed to include only proprietary mutual funds and exclude sub-advised pooled funds. Prior to 2009, the composite was known as the Small-Mid Growth-retail Composite. The composite was created in March US Research Growth Equity portfolios, benchmarked to the Russell 1000 Growth Index, invest in high conviction investment ideas selected by the Janus research team, based on rigorous fundamental research. The portfolios generally contain 75 to 100 large and mid size companies and maintain sector weightings that closely follow the Russell 1000 Growth Index. The composite was created in August JANUS CAPITAL GROUP OVERVIEW

35 US Research Concentrated Growth Equity portfolios, benchmarked to the Russell 1000 Growth Index, invest in high conviction investment ideas selected by the Janus research team, based on rigorous fundamental research. The portfolios are optimized to maintain market capitalization and sector weightings that closely follow the Russell 1000 Growth Index. A typical portfolio invests in 30 to 50 equity securities. The composite was created in August Balanced portfolios, benchmarked to the Balanced Index, generally have between 40%-60% invested in equity securities selected for their growth potential. The remainder of the portfolio is invested in income-producing securities. A typical portfolio will contain equity and income-generating securities. Effective January 1, 2005 the composite definition was changed to include sub-advised pooled funds as well as separately managed institutional accounts. Effective January 1, 2009 the composite definition was expanded to also include proprietary mutual funds. A minimum asset size requirement of $5 million for composite participation was used prior to January 1, The composite was created in January Opportunistic Alpha portfolios, benchmarked to the S&P 500 Index and the MSCI All Country World Index SM, seek to invest in under-valued companies with improving return on invested capital and an asymetrical risk/reward profile. Effective January 1, 2005 the composite definition was changed to include sub-advised pooled funds as well as separately managed institutional accounts. A typical portfolio invests in 50 to 75 securities. i Effective January 1, 2005 the composite definition i i was changed to include sub-advised d pooled funds as well as separately managed institutional accounts. Effective January 1, 2009 the composite definition was expanded to also include proprietary mutual funds. The strategy is closed to new separate accounts. Prior to 2005 the composite was known as the Strategic Value composite. A minimum asset size requirement of $5 million for composite participation was used prior to January 1, The composite was created in April US Research Core Equity portfolios, benchmarked to the Russell 1000 Index, invest in high conviction investment ideas selected by the Janus research team, based on rigorous fundamental research. Investments will primarily be in large and mid size companies. The portfolios generally contain securities and maintain sector weightings that closely follow the Russell 1000 Index. Effective January 1, 2009 the composite definition was expanded to also include proprietary mutual funds. Prior to October 2007 the composite was known as the US Equity Research composite. The composite was created in August International Equity portfolios, benchmarked to the MSCI EAFE Index, concentrate on finding growth companies located outside of the United States. Typically, no more than 10% is invested in companies based in the United States and no more than 20% in emerging markets. A typical portfolio will contain 60 to 100 securities. Effective January 1, 2005 the composite definition was changed to include sub-advised pooled funds as well as separately managed institutional accounts. Effective January 1, 2009 the composite definition was expanded to include proprietary mutual funds. Prior to July 1, 2006 the composite was known as the International Growth composite. A minimum asset size requirement of $5 million for composite participation was used prior to January 1, The composite was created in January Global Research Growth Equity portfolios, benchmarked to the MSCI World Growth Index, invest in high conviction investment ideas selected by the Janus research team, based on rigorous fundamental research. Investments will primarily be in large and mid size companies from around the world. The portfolios generally contain 100 to 150 securities and maintain sector weightings, based upon how Janus aligns sector research teams, that closely follow the MSCI World Growth Index. Effective January 1, 2009 the composite definition was expanded to also include proprietary mutual funds. Prior to October 2007 the composite was known as the Global Equity Research composite. The composite was created in April Global Research Core Equity portfolios, benchmarked to the MSCI World Index SM, invest in high conviction investment ideas selected by the Janus research team, based on rigorous fundamental research. Investments will primarily be in large and mid size companies from around the world. The portfolios generally contain 100 to 150 securities and maintain sector weightings, based upon how Janus aligns sector research teams, that closely follow the MSCI World Index SM. The composite was created in August Long/Short portfolios, benchmarked to the S&P 500 Index, seek strong absolute risk-adjusted returns over a full market cycle by investing primarily in both long and short positions in US and foreign equity securities. Securities are selected based on a fundamental bottom up approach and portfolios will normally hold more assets in long positions than in short positions. Portfolios may also employ leverage as well. Portfolios may invest in derivatives for the purpose of hedging certain risks, enhancing returns or to earn income. The composite currently includes only proprietary mutual funds. Effective January 1, 2009 the composite definition was expanded to also include sub-advised pooled funds and separately managed institutional accounts. Prior to 2009, the composite was known as the Long/Short-retail retail Composite. The composite was created in September Global Real Estate portfolios, benchmarked to the FTSE EPRA/NAREIT Global Index, seek total return through a combination of capital appreciation and current income by investing in the equity and debt securities of real estate-related companies of any size located throughout the world. A typical portfolio will contain securities. Effective January 1, 2009 the composite definition was expanded to also include sub-advised pooled funds and separately managed institutional accounts. Prior to 2009, the composite was known as the Global Real Estate-retail Composite. The composite was created in June Core Plus Bond portfolios, benchmarked to the Barclays Capital U.S. Aggregate Bond Index, pursue maximum total return by investing in various income-producing securities. The portfolios will maintain i an average-weighted effective maturity of five to ten years and, under normal market conditions, will limit it their investments t in high h yield/high h risk bonds to less than 35%. Total return is expected to result from a combination of current income and capital appreciation, with income normally being the dominant component of total return. Effective January 1, 2005 the composite definition was changed to include only proprietary mutual funds and exclude sub-advised pooled funds. Prior to 2009, the composite was known as the Flexible Income-retail Composite. The composite was created in January JANUS CAPITAL GROUP OVERVIEW