Profits plunging, Janus drops institutional money funds

Janus Capital Group Inc. today reported that its fourth-quarter profit fell 85%, and it announced plans to get out of the institutional money market business. The Denver-based company’s earnings fell to $7.8 million, or 5 cents a share, from $51.6 million, or 30 cents a share, a year earlier. Janus will exit the money market business by April 30, according to a statement from the firm. It will shutter the Janus Institutional Cash Management Fund (JCAXX), the Janus Institutional Government Money Market Fund (JIGXX) and the Janus Institutional Money Market Fund (JMOXX). “Janus is taking this action to focus resources on its core business,” the company said in a statement. The firm reported that its assets under management dropped to $123.5 billion as of Dec. 31, from $206.7 billion a year earlier. Including its affiliates Intech of West Palm Beach, Fla., and Perkins Investment Management LLCof Chicago, the companywide net outflow totaled $600 million. Janus reported net income of $138.4 million for the full year, compared with $192 million in 2007.