Another top exec to exit Janus as shake-up goes on

The executive in charge of distributing Janus Capital Group's mutual funds through financial intermediaries and international channels is stepping down Oct. 31.
JAN 07, 2010
The executive in charge of distributing Janus Capital Group's mutual funds through financial intermediaries and international channels is stepping down Oct. 31. Dominic Martellaro, an executive vice president and managing director, has been with Janus Global Advisors 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 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 move 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. “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 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,” he said. Mr. Martellaro's exit speaks to the “unsettled nature of Janus as a firm,” said mutual fund consultant Geoff Bobroff. “It's unfortunate that the head of the intermediary channel is leaving because that's where Janus cast their lot,” he said. “Under 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 head the U.S. intermediary business. Dan Charles, president and managing director of Janus' institutional business, will assume leadership over international distribution. Janus had $132.6 billion in assets under management as of June 30. E-mail Sue Asci at [email protected].

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income