B-1 STATEMENT OF ADDITIONAL INFORMATION Dated May 1 ...

On August 25, 2005, the Court entered orders dismissing most of the claims asserted against JanusCapital and its affiliates by fund investors in the Marini and Steinberg cases (actions (i) and (ii) above),except certain claims under Section 10(b) of the Securities Exchange Act of 1934 and under Section 36(b)of the Investment Company Act of 1940, as amended (the “1940 Act”). On December 30, 2008, the Courtgranted partial summary judgment in Janus Capital’s favor with respect to Plaintiffs’ damage demand asit relates to what was categorized as “approved” market timing based on the court’s finding that there wasno evidence that investors suffered damages that exceed the $50 million they are entitled to receive underthe regulatory settlement. The Court did not grant summary judgment on the remaining causes of actionand requested the parties to submit additional briefing with respect to what was categorized as“unapproved” market timing. On August 15, 2006, the Wangberger complaint in the 401(k) plan classaction (action (iii) above) was dismissed by the district court with prejudice. The plaintiff appealed thatdismissal decision to the United States Court of Appeals for the Fourth Circuit, which remanded the caseback to the Court for further proceedings. Finally, a Motion to Dismiss the Wiggins suit (action (v)above) was granted and the matter was dismissed in May 2007. Plaintiffs appealed that dismissal to theUnited States Court of Appeals for the Fourth Circuit where the appeal is pending.In addition to the lawsuits described above, the Auditor of the State of West Virginia (“WV Auditor”), inhis capacity as securities commissioner, initiated administrative proceedings against many of thedefendants in the market timing cases (including JCGI and Janus Capital) and, as part of its relief, isseeking disgorgement and other monetary relief based on similar market timing allegations (In the Matterof Janus Capital Group Inc. et al., Before the Securities Commissioner, State of West Virginia, SummaryOrder No. 05-1320). In September 2006, JCGI and Janus filed their answer to the Auditor’s summaryorder instituting proceedings as well as a Motion to Discharge Order to Show Cause. This action ispending.During 2007, two lawsuits were filed against Janus Management Holdings Corporation (“JanusHoldings”), an affiliate of JCGI, by former Janus portfolio managers, alleging that Janus Holdingsunilaterally implemented certain changes to compensation in violation of prior agreements (Edward Keelyv. Janus Holdings, Denver District Court, Case No. 2007CV7366; Tom Malley v. Janus Holdings, DenverDistrict Court, Case No. 2007CV10719). These complaints allege some or all of the following claims inaddition to other allegations: (1) breach of contract; (2) willful and wanton breach of contract; (3) breachof good faith and fair dealing; and (4) estoppel. Janus Holdings filed Answers to these complaintsdenying any liability for these claims and intends to vigorously defend against the allegations.Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties inthe future. Janus Capital does not currently believe that these pending actions will materially affect itsability to continue providing services it has agreed to provide to the Janus funds.B-94