Janus Funds post highest withdrawals in more than three years

Underperformance leads large client to pull big money from firm's oldest fund.

Aug 14, 2013 @ 3:33 pm

+ Zoom
(Bloomberg News)

Janus Capital Group Inc. had its biggest monthly mutual-fund withdrawals in more than three years after a large client pulled money from the money manager's oldest fund.

Investors pulled a net $2.2 billion from the Denver-based company's long-term funds in July, the most since May 2010, according to research firm Morningstar Inc. A single client redeemed $1.3 billion from the now $7 billion Janus Fund in July, John Groneman, head of investor relations at Denver-based Janus, said today in a telephone interview.

“The redemptions are a function of the underperformance the fund has experienced over the last three years,” Groneman said.

Janus, with more than 80 percent of its assets in actively managed equity products, has struggled to retain clients over the past four years as investors flooded into bonds and index- based products. The company last month reported its 16th straight quarter of net investor withdrawals for the three months ended June 30.

The Janus Fund, started in 1970, has trailed 87 percent of competing funds over the past three years, according to data compiled by Bloomberg. Jonathan Coleman, who stepped down as Janus's chief investment officer for equities in April, dropped his role as co-manager of the Janus Fund in May to take over the $5.2 billion Triton Fund. Barney Wilson is now sole manager of the Janus Fund.

Investors removed money from Janus even as they deposited $15.9 billion with long-term U.S.-registered mutual funds in July, according to Morningstar. Stock funds that invest mostly in the U.S. got $5.7 billion in investor money and international equity funds drew $7.9 billion.

Janus fell 0.6 percent to $9.12 at 12:24 p.m. in New York. The shares have risen 6.9 percent this year, compared with a 28 percent gain for the Standard & Poor's index for asset managers and custody banks.

Bloomberg News

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Building a practice for tomorrow's tomorrow

Advisers: it is time to take a long view of your practice. Check out some tips and strategies on how to do it (and why) with Tom Stefaniak of Pinnacle Wealth Management.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

10 signs your client is cheating on you

Sure signs that clients may be on the way out the door.

Morgan Stanley sees slower fee-based asset flows on fiduciary rule delay

Flows to advisory accounts, while still higher than the start of 2016, dropped off more than 20% from Q2 and were the lowest in a year.

How adviser salaries stack up to other jobs

Median compensation hovers just under $100,000 on the low end and reaches nearly $300,000 for bosses.

Finra ranking brokers in effort to crack down on industry's bad apples

All 634.403 reps have been ranked based on factors such as prior regulatory disclosures, disciplinary actions and employment history.

How to save retirement planning from tax reform

Losing big deductions, even in lieu of a larger standard deduction, may cause taxes to rise in retirement.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print