Underperformance leads large client to pull big money from firm's oldest fund.
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
