JNS Company Profile

Janus’ strategy is centered on developing “best of breed” investment management across multiple investment disciplines, developed internally and through acquisition. Janus has long been recognized for growth equity investing, beginning with the launch of the Janus Fund in 1969. Over the last few years, Janus began to expand its product offerings, adding risk-managed products with the acquisition of Enhanced Investment Technologies, LLC (“INTECH”), and value products through investments in Bay Isle Financial LLC (“Bay Isle”) and Perkins, Wolf, McDonnell and Company, LLC (“PWM”), and a strategic alliance with Vontobel Asset Management,  Inc. (“Vontobel”).

The diverse lineup of products in various investment disciplines offered by Janus includes growth, core/blend, international, value and risk-managed equity funds, as well as specialty fixed income and money market funds. This business model attempts to leverage a single Janus brand and global distribution network and, most importantly, bring greater diversity to Janus’ product offerings that may ultimately help to insulate the Company from market fluctuations as investment styles and disciplines shift in and out of favor.

Each investment discipline is managed according to the style and strength of the respective money management firm. This strategy allows each affiliate to stay focused on its respective core competency or area of expertise, as follows:

• Janus Capital Management LLC (“JCM”) is one of the largest equity managers in the United States specializing primarily in growth, core/blend and international equity investing. For more than three decades, JCM has employed a bottom-up, company-by-company investment approach based on the conviction that stock prices ultimately follow earnings growth.

• INTECH has been managing institutional assets since 1987 using mathematically driven equity investing strategies. INTECH’s unique investment process is based on a mathematical theory that attempts to capitalize on the random nature of stock price movements with the goal of outperforming a passive index while minimizing risk.

• PWM, with more than 22 years of industry experience, focuses on small- and mid-cap value investing through intensive research and careful consideration of risks.

• Bay Isle specializes in large- and small-cap value, and REIT equity investing. For more than 16 years, Bay Isle has employed a bottom-up analysis with an intense focus on quality companies that trade at discounts to their fair market value.

• Vontobel has been managing value-style equity portfolios for institutional clients since 1988. Vontobel’s concentrated approach to value investing is available in large-cap U.S. value and international equity disciplines.

Janus employs a broad and open distribution strategy both domestically and abroad. Janus’ domestic distribution network includes its direct no-load business and its well-established third-party partnerships across the mutual fund supermarket, retirement plan, variable annuity and mutual fund wrap channels. Additionally, Janus packages products for distribution in the institutional separate account and subadvised channels both domestically and abroad.

Janus has three segments: Investment Management, representing businesses that derive the majority of their revenues from providing investment management services under investment advisory agreements; DST, composed of the Company’s equity investment in DST Systems, Inc. (“DST”); and Printing and Fulfillment, composed of the graphics design, commercial printing and fulfillment operations.

Competition

The investment management industry is relatively mature and saturated with competitors that provide services similar to Janus and often have undifferentiated capabilities. As such, Janus generally encounters significant competition in most areas of its business. Janus competes with mutual fund advisors, brokerage and investment banking firms, insurance companies, banks and other financial institutions, many of which are larger, have proprietary access to distribution, have a broader range of product choices and investment capabilities and have greater capital resources. Janus’ ability to successfully compete in this market is based on its ability to achieve superior short- and long-term investment performance; to maintain its current distribution relationships and to continue to build new ones; to develop products with pricing that aligns well with its distribution channels and are attractive to underlying clients and investors; to offer multiple investment choices; to provide effective shareowner servicing; to retain and grow the confidence of its clients; and to develop and leverage its brand.

Competition in the mutual fund industry continues to increase as a result of greater flexibility afforded to banks and other financial institutions to sponsor mutual funds and distribute mutual fund shares, and as a result of consolidation and acquisition activity within the industry. Furthermore, the marketplace for investment products is rapidly changing; investors are becoming more sophisticated, the demand for and access to investment advice and information are becoming more widespread, and more investors are demanding investment vehicles that are customized to their personal situations. The extent of any adverse impact on mutual fund demand due to the increasing availability of alternative product types, such as hedge funds, exchange traded funds and separate accounts, is uncertain.