Janus adds performance fees to eight more funds

Janus Capital Group Inc. is adding performance-based fees to eight more of its equity funds in an effort to further prove to the market that it stands by its research and management capabilities.
Although the move is somewhat risky for the publicly traded fund firm because it could make revenue more volatile, it also better aligns shareholder interests with those of its fund investors, chief executive Richard M. Weil said in an interview.
“We would ask our Janus Capital Group equity investors to understand that they get better alignment with our ultimate clients in exchange for greater volatility,” he said.
Janus joins a small number of mutual fund firms with performance fees, but it is the only publicly traded asset management shop so far that has chosen to do this.
“It’s a risky move because it affects earnings,” said Geoff Bobroff, a mutual fund consultant. “But this is a message they have to get out there.”
Adding performance fees is one of the clearest ways for the firm to prove that it believes in its research, said Andrew Gogerty, a mutual fund analyst with Morningstar Inc.
“I think this is a further indication of their confidence in their research process,” he said.
Pending shareholder approval, Janus will add a 15-basis-point performance fee to eight of its equity funds. The fee is based on a rolling three-year average.
Janus is adding the fees to its Janus Fund Ticker:(JANDX); Janus Aspen Portfolio Ticker:(JAGRX); Janus Aspen Forty Portfolio Ticker:(JCAX); Janus Aspen Overseas Portfolio Ticker: (JAIGX); Janus Forty Fund Ticker:(JDCAX); Janus Global Opportunities Fund Ticker:(JNGOX); Janus Overseas Fund Ticker:(JNOSX); and Janus Twenty Fund Ticker:(JNTFX).
The firm already has performance fees in place for 14 of its funds.
Shareholders are scheduled to vote on the fees June 12.

Related Topics: Janus Capital Group