investment idea

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INVESTMENT IDEA

2Q17 U.S. Equity

Concerned About Finding Growth in a Growth-Starved World? Concentrated Growth Strategy

A weak global economy is challenging for many companies, but select opportunities remain within equities. Finding a strategy that seeks to capitalize on the more limited opportunity set can be a valuable addition to client portfolios at a time when growth is harder to come by.

Uncovering Durable Growth Companies We seek dominant growth companies with sustainable competitive advantages that are driving innovation and change in their respective industries through disruptive technologies, products or business models. We think emphasizing companies with measurable competitive advantages can be a meaningful driver of outperformance over longer time horizons, as the market often underestimates the duration of growth for these companies and the potential return to shareholders.

5 Sustainable Competitive Advantages Wide moats can strengthen growth prospects by keeping competitors at bay

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Technology Distribution

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Cost Structure

Network Effect

Brand

Company Profitability

Seeking Growth Through Active Construction Leveraging our extensive team of tenured research analysts, we collect their best wide-moat ideas and formulate them into a concentrated portfolio with high active share, a percentage measurement of how our holdings distinguish us from the benchmark. This results in a high-conviction portfolio of approximately 30-40 equity names. We believe our differentiated view from the market drives growth where growth is scarce, positioning our investments to outperform the index over time.

Top Managers Struggled to Pull Away from the Bottom of the Pack Morningstar Large Growth Interquartile Range: 1/1/96 - 12/31/16 25% Difference between top and bottom quartile funds

20% 15% 10% 5% 0% 1996

1998

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Interquartile Range is based on total return and calculated by subtracting the 75th percentile from the 25th percentile. It measures the difference or “spread” between top managers and the lower tier. Source: Morningstar, Inc.

82%

Our Average Active Share since June 2013 Forty Fund as of 6/30/17 Source: Morningstar, Inc.

Our eclectic and differentiated portfolios are designed to set the strategy apart from the index.

FOR FINANCIAL PROFESSIONAL USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION

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Concentrated Growth Strategy How to Position Janus Henderson Concentrated Growth Concentrated Growth portfolios can be implemented as an alpha-focused satellite.

Role in a Diversified Portfolio:

Alpha-Focused Satellite

Core

Strategy Availability Mutual Fund

Separately Managed Account

Name: Forty Fund

Name: Concentrated Growth

Ticker

A: JDCAX R: JDCRX

What This Offers Investors „„ Concentrated Portfolio of Our Best Large-Cap Growth Ideas „„ Deliberate Active Share Designed to Deliver Outperformance „„ Exposure to Companies Driving Innovation and Change

C: JACCX I:JCAPX N: JFRNX S: JARTX T: JACTX

About Janus Henderson Equity We are bottom-up, fundamental investors that take a high-conviction approach to stock selection where we believe we have differentiated views and insights. Our investment culture is one of open exchange, collaboration and debate and is closely aligned with our mission of achieving better client outcomes through the disciplined pursuit of independent ideas. Today, we serve investors around the world through our broad offering of U.S. and global equity strategies, each with the goal of delivering superior risk-adjusted returns over time.

For more information, please visit janushenderson.com. Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus Henderson at 800.668.0434 or download the file from janushenderson.com/info. Read it carefully before you invest or send money.

© 2017 Morningstar, Inc. All Rights Reserved. The Forty Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance. Janus Henderson is a trademark of Janus Henderson Investors. © Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and Janus International Holding LLC. Funds distributed by Janus Henderson Distributors Janus Capital Management LLC serves as investment adviser.

There is no assurance that the investment process will consistently lead to successful investing. There is no assurance the stated objectives(s) will be met. When valuations fall and market and economic conditions change it is possible for both actively and passively managed investments to lose value. Mutual fund investing involves market risk. Investment return and fund share value will fluctuate and it is possible to lose money by investing. FOR FINANCIAL PROFESSIONAL USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION C-0617-10874 10-15-17

199-15-31762 07-17