Janus Capital Group Inc. is a public company headquarted in Denver, CO, US. It was founded in 1969. It provides growth and risk-managed investment strategies. As of September 30, 2007, Janus managed $208 billion in assets for more than four million shareholders, clients and institutions around the globe. Outside the U.S., Janus has offices in London, United Kingdom, Milan, Italy, Tokyo, Japan and Hong Kong, China. Janus Capital Group consists of Janus Capital Management LLC, Enhanced Investment Technologies, LLC (INTECH) and Capital Group Partners, Inc. (doing business as Rapid Solutions Group). In addition, Janus Capital Group owns 30% of Perkins, Wolf, McDonnell and Company, LLC. About Janus' Subsidiaries Janus Capital Management LLC Janus Capital Management is one of the largest equity managers in the U.S. For more than three decades the Denver-based firm has used a bottom-up, company-by-company investment approach based on the conviction that stock prices ultimately follow earnings growth. In addition to growth, core and international equity funds, Janus offers balanced, specialty fixed-income and money market funds. Janus Capital Management is a wholly owned subsidiary. INTECH Enhanced Investment Technologies, LLC has managed institutional portfolios since 1987, establishing one of the industry's longest continuous records of mathematically driven equity investing strategies. INTECH's unique investment process is based on a mathematical theory that attempts to capitalize on the random nature of stock price movements. The goal is to achieve long-term returns that outperform a passive index, while controlling risks and trading costs. Located in Palm Beach Gardens, Florida, INTECH manages assets for large institutions and endowments. Janus Capital Management has a majority ownership stake in INTECH. Perkins, Wolf, McDonnell and Company Perkins, Wolf, McDonnell and Company is an asset management firm with a 22-year value investing track record. Through a combination of industry experience, intensive research and careful consideration for risk, the firm has established a reputation for solid performance and capital preservation. From its Chicago headquarters, Perkins manages small- and mid-cap value mutual funds as well as separate accounts.
2003 Mutual Fund Scandal
Janus was implicated in the 2003 Mutual-fund scandal. On August 18, 2004, the SEC announced that JCM would pay $262 million [1][2]. This includes $100 million in disgorgements and penalties. [3] JCM also consented to a cease-and-desist order and a censure, and to undertake compliance and mutual-fund governance reforms. The SEC concluded that JCM negotiated market timing agreements with 12 entities. Simultaneously, prospectuses for the funds stated that JCM did not permit frequent trading or market timing in these funds. Furthermore, some of these agreements included the understanding that the market timer would make long-term investments, so-called "sticky assets," in certain Janus mutual funds. JCM would then waive all redemption fees that would have normally been assessed against the market timers for their frequent trades. These frequent trades caused dilution to the affected mutual funds. This financially benefited JCM in that JCM realized additional advisory fees from the timed funds and "sticky assets". This constituted a conflict of interest, and by failing to disclose the conflict of interest to the Board of Trustees and the shareholders of the affected mutual funds, JCM breached their fiduciary duty to the mutual funds.[4] In the agreement, JCM neither admits nor denies these findings. On July 30, 2006 the SEC accused three former executives of JCM of improperly allowing market timing of Janus mutual funds. The accused are Warren Lammert, manager of the Janus Mercury Fund from 1993 to 2003, Lars Soderberg, executive vice president and managing director of institutional services from 2003 to 2004, and Lance Newcomb, an institutional sales manager. [5] [6][7] A Janus spokesman, Blair Johnson, stated "it's a matter between the SEC and former Janus employees, not the company," and that "Janus resolved its regulatory issues more than two years ago, and we've moved on." The trial was set to begin February 14, 2007 in Denver, CO but was delayed. [8]
