Gross' fund at Janus Capital suffers net redemptions as performance trails

Gross' fund at Janus Capital suffers net redemptions as performance trails
February marks first month of outflows since bond manager joined firm
MAR 03, 2015
Bill Gross's Janus Global Unconstrained Bond Fund suffered its first month of net client redemptions last month since he joined as performance returns trailed peers. Investors pulled $18.5 million from the fund in February, leaving it with about $1.45 billion in assets, Chicago-based research firm Morningstar Inc. estimated. The fund has declined 0.8% this year, trailing 96% of similarly managed funds, Morningstar said. (More: Janus unconstrained fund attracts least net new money since Bill Gross took over) The redemptions are a setback for Mr. Gross, 70, who fueled much of the fund's growth last year as assets surged from about $13 million before he joined. Richard M. Weil, chief executive officer of Janus Capital Group Inc., said on a Jan. 22 conference call that more than $700 million of the fund's assets came from Mr. Gross himself. The firm saw an 18% increase in profit last quarter as it attracted net new money for the first time in more than five years. Janus reported $2 billion in net subscriptions for the fourth quarter, mostly into bond funds. Mr. Gross and his family held a 51.2% stake in the fund as of Dec. 31, according to a Janus filing, with a market value of about $739 million at year-end. Mr. Gross previously ran the world's biggest bond fund, the Pimco Total Return Fund, at Newport Beach, Calif.-based Pacific Investment Management Co., the firm he co-founded in 1971 before abruptly departing for Janus on Sept. 26.

Latest News

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors
Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors

The hundreds of millions of dollars from a sale of Inspired Healthcare properties does not mean an immediate windfall for investors.

Class action alleges Webull misled investors about China operations
Class action alleges Webull misled investors about China operations

Its SEC filings said one thing - a congressional probe said another.

Investors accuse Netcapital of inflating revenue through sham deals
Investors accuse Netcapital of inflating revenue through sham deals

Sham agreements allegedly padded revenue by 345%.

Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli
Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli

"Most pre-retirees are uncomfortable making key retirement income decisions without an advisor's help," said Chris Bailey of Cerulli.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor