Another top exec exits Janus as shake-up continues
The Janus Capital Group executive in charge of distribution for Janus mutual funds through financial intermediaries and international channels is stepping down Oct. 31.
The Janus Capital Group executive in charge of distribution for Janus mutual funds through financial intermediaries and international channels is stepping down Oct. 31.
Dominic Martellaro, an executive vice president and managing director of Janus Global Advisors, has been with the Denver-based fund firm since 2004.
“After nearly three decades in the industry, I want to take some personal time away from work and travel,” he said in a joint statement today with interim chief executive Tim Armour, who credited Mr. Martellaro with building up the firm’s presence in the adviser channel.
But some observers speculate the move may be another sign that the firm is changing direction.
Chief executive Gary Black who joined the firm in 2004 as president and chief investment officer and became CEO in 2006, resigned in July.
Mr. Martellaro’s imminent departure is not related to Mr. Black’s departure from the firm, said Janus spokeswoman Shelley Peterson.
“It was his decision and he felt this was the opportune time. It’s a very amicable departure,” she said.
In recent weeks, Janus treasurer Scott Grace also announced his resignation.
“These things tend to happen when the chief executive leaves,” said Greggory Warren, an equity analyst at Morningstar Inc. of Chicago.
“This could be a sign of the internal tussle for where the company is going to be going directionally. People tend to like to have their own people in place.”
A new chief executive has yet to be named but Mr. Warren speculated that Mr. Armour may be named to the top post.
“I think he [Tim Armour] has the kind of pedigree they would want there,” Mr. Warren said. “He has a lot of knowledge about the business. Perhaps we are seeing some underlying shifts in the management structure in anticipation of that happening.”
Mr. Martellaro’s exit speaks to the “unsettled nature of Janus as a firm,” said Geoff Bobroff, a mutual fund consultant based in East Greenwich, R.I.
“It’s unfortunate that the head of the intermediary channel is leaving because that’s where Janus cast their lot,” he said.
“Under [Gary] Black they made the long-term decision to focus on the intermediaries and move away from the direct sales channel.”
In recent months, Janus merged its two fund lineups, discontinuing future expansion into the direct sales market and moving to distribute all of its offerings through financial intermediaries and fund platforms.
The firm has made inroads into the intermediary channel, Ms. Peterson said.
“It’s a sign that we are forging ahead on what we said we are going to do and it’s a reflection of our commitment to the intermediary and institutional space,” she said.
In May, Janus announced plans to expand its business into Canada.
Distribution was a weak area for Janus in 2004, Mr. Warren said.
“They were heavily reliant on direct distribution and they didn’t have a lot of experience with brokers, investment advisers or the institutional side of the business,” he said. “They had to build up other channels.”
Mr. Martellaro’s responsibilities will be assumed by two other executives at the firm and he will remain until February 2010 in a consulting capacity, Ms. Peterson said.
Robin Beery, executive vice president and chief marketing officer, will take over the U.S. intermediary business.
Dan Charles, president and managing director of Janus’ institutional business, will assume leadership over the international distribution.
Janus had $132.6 billion in assets under management as of June 30.
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