Janus merges two retail fund lines

Janus Capital Group Inc. yesterday said that its trustees approved a proposal to merge its two retail-fund series. The Janus Adviser Series Fund Trust, a set of commission-based funds, will be merged into the Janus Investment Fund Trust on or about July 6. At the time of the merger, the Janus Investment Funds, which are no-load, will be closed to new investors but will continue to be available to existing investors and their immediate family. The move reflects an industry trend of investors’ moving more toward advice driven channels than self-directed investing, the firm said. The Adviser Fund series was launched in 2000 to meet the needs of investors who use financial intermediaries. “Over the last several years, most of our assets have been coming in through third-party intermediaries and institutional channels,” said Janus spokesman James Aber. “Very little of our business was coming to us direct,” he said. “The no-load funds were our legacy business.” As of Dec. 31, the majority of Janus’ $123.5 billion in assets were in the two fund series, with 18% of that total in adviser funds and 82% in no-load funds, Mr. Aber said. The two series of funds have similar products managed by the same portfolio managers or teams, the firm noted. “Larger asset bases will allow for reduced expenses over time,” Mr. Aber said. In addition, Janus will create 10 funds in the Janus Investment Fund Trust for Adviser Funds that have no corresponding strategy. They will also create a T share class of no-load options for these funds which will be available through third-party intermediaries such as fund supermarkets and wrap accounts. Janus had $123.5 billion in assets under management as of Dec. 31.