Strategy Profile

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Institutional Strategy Profile

Concentrated Growth

As of 12/31/17

Investment Philosophy

Portfolio Management

We believe that constructing a concentrated portfolio of quality growth companies will

Doug Rao

allow us to outperform our benchmark over time. We define quality as companies that enjoy sustainable “moats” around their businesses, potentially allowing companies to grow faster, with higher returns, than their competitors. We believe the market often



Portfolio Manager



20 years of financial industry experience

underestimates these companies’ sustainable competitive advantage periods.

Target Portfolio Composition

Nick Schommer, CFA

Compounding Growth 

Distinct long-term competitive advantages



Strong free cash flow generation



Profitable business selling at attractive valuation



Larger position sizes up to 7 – 8%

Narrow moats becoming wider



Large addressable market



Smaller position sizes, typically 1 – 1.5%

10% – 15% of the portfolio

Embedded assets and the ability to create value underappreciated by the market



Restructuring of balance sheet or cost structure



Asymmetrical risk/reward

11 years of financial industry experience

Strategy Characteristics

Special Situations 

Portfolio Manager



70% – 80% of the portfolio

Benchmark

Russell 1000® Growth Index

Investment Style

High-conviction large-cap growth equities

Assets Under Management

$13.8 billion (as of 9/30/17)

Excess Return Objective

+250 bps

Expected Tracking Error Range

300 – 700 bps

Typical Beta

0.85 – 1.15

Holdings Range

30 – 40

Expected Annual Turnover

20% – 40%

Maximum Position Size

8.0% (2.5% – 3% core weight)

Market Cap Range

70% of the portfolio > $15 billion

Available Vehicles

Separate account Commingled pool Institutional mutual fund

Blue Sky Opportunities 



10% – 15% of the portfolio

Actual results may vary, and the information should not be considered or relied upon as a performance guarantee. Various account minimums or other eligibility qualifications apply depending on the investment strategy or vehicle. 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. FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION

Janus Henderson Concentrated Growth (As of 12/31/17) Absolute Weight

Active Weight

Information Technology

44.04

+6.10

Health Care

16.02

+3.20

10.00

Consumer Discretionary

13.97

-4.14

-1.20

Financials

10.97

+7.58

Real Estate

4.00

+1.48

Performance (%)

4Q 2017

YTD

1 Year

3 Year

5 Year

10 Year

Composite (gross)

4.68

31.04

31.04

15.09

17.18

8.80

Composite (net)

4.49

30.23

30.23

14.36

16.48

8.15

Russell 1000® Growth Index

7.86

30.21

30.21

13.79

17.33

Difference (gross vs. index)

-3.21

+0.83

+0.83

+1.30

-0.15

Risk/Reward

3 Year

5 Year

Materials

3.84

+0.10

Std. Dev. (composite)

11.99

11.32

Industrials

2.72

-10.06

1.50

Std. Dev. (index)

10.69

9.98

Consumer Staples

—

-6.82

108%

102%

Tracking Error

3.81

3.91

Utilities

—

-0.01

104%

108%

Beta

1.07

1.07

Energy

—

-0.88

Telecommunication Services

—

-0.99

4.44

+4.44

Absolute Weight

Active Weight

Alphabet, Inc.

5.77

+3.29

Mastercard, Inc.

5.73

+4.61

Microsoft Corp.

4.53

-0.49

salesforce.com, Inc.

4.36

+3.82

American Tower Corp.

4.00

+3.53

3 Year

5 Year

Information Ratio

0.34

-0.04

Sharpe Ratio

1.23

Up Market Capture Down Market Capture

Characteristics

Representative Account

Russell 1000® Growth Index

Number of Holdings

42

551

$205.4 B

$228.0 B

$61.0 B

$11.8 B

72%

—

Weighted Avg. Market Cap Median Market Cap Active Share

Sector Allocation (%)

Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. Composite returns are net of transaction costs and gross of non-reclaimable withholding taxes, if any, and reflect the reinvestment of dividends and other earnings. 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 2A. 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 performancebased 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 2A. Index returns are provided to represent the investment environment during the periods shown. The index is fully invested, including the reinvestment of dividends and capital gains. Index returns do not include transaction costs, management fees or other costs, and are gross of non-reclaimable withholding taxes, if any. Absolute weight based on representative account Active weight reflects over/under relative to index 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.

Cash & Equivalents

Top Holdings (%)

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, 2006. The composite was created in January 2005. Information relating to portfolio holdings is based on the representative account in the composite and may vary for other accounts in the strategy due to asset size, client guidelines and other factors. The representative account is believed to most closely reflect the current portfolio management style. Equity country, regional, sector and industry weights based on MSCI and GICS classifications. In Canada, Janus Henderson products and services are offered through Janus Capital Management LLC which is registered as an adviser in the category of portfolio manager and as a dealer in the category of exempt market dealer in each of the provinces of Alberta, British Columbia, Manitoba, Ontario and Quebec. In these provinces, these services are offered only to institutional investors that are “Accredited Investors” as defined in National Instrument 45106 and “Permitted Clients” as that term is defined in National Instrument 31103. This is intended to provide you with general information about Janus Henderson and about certain of its products and services. This is solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, including any security referred to herein. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Janus Capital Management LLC serves as investment adviser.

C-0118-14931 04-30-18

FOR INSTITUTIONAL INVESTOR USE ONLY / NOT FOR PUBLIC VIEWING OR DISTRIBUTION

399-15-30721 01-18