Janus Funds post highest withdrawals in more than three years

Underperformance leads large client to pull big money from firm's oldest fund.
JAN 23, 2014
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

Latest News

Social Security COLA rises to 3.6% for 2027, largest since 2023
Social Security COLA rises to 3.6% for 2027, largest since 2023

Fuel-driven inflation drove the supersized adjustment, but advocates say retirees are still losing ground as trust fund insolvency nears.

Retirement advisors have a major small business opportunity
Retirement advisors have a major small business opportunity

State mandates and plan complexity are opening doors for financial advisors in the 401 market.

Most pre-retirees are planning without a planner - and it shows
Most pre-retirees are planning without a planner - and it shows

New LIMRA data reveal a stubborn advice gap that financial professionals are well-positioned to close.

Treasury hits BofA with $1.2B fine over money laundering violations
Treasury hits BofA with $1.2B fine over money laundering violations

“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” said Treasury Secretary Scott Bessent.

The hidden cost of growing a firm without intention
The hidden cost of growing a firm without intention

To build a truly self-sustaining practice, enterprising advisors have to start with a vision of what they want to be – and accept the realities that come with building toward it.

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