Janus Capital Group
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| Type | Public company |
|---|---|
| Founded | 1969 |
| Founder(s) | Thomas H. Bailey |
| Headquarters |  Denver, US |
| Key people | Gary D. Black (CEO) |
| Industry | investment |
| Revenue | $ 1.117 billion (2007) [1] |
| Total assets | $160 billion[2] |
| Employees | 1,213 (2007) [1] |
| Website | www.janus.com |
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Janus Capital Group, Inc. (NYSE: JNS) is a publicly owned Investment firm headquartered in Denver, Colorado. It provides growth and risk-managed investment strategies and manages equity, fixed income, money market, as well as balanced mutual funds.
As of June 30, 2008, Janus managed approximately $191.8 billion in assets for more than four million shareholders, clients and institutions around the globe. Outside the U.S., Janus has offices in London, Milan, Tokyo and Hong Kong, Melbourne and Singapore. Janus Capital Group consists of Janus Capital Management LLC, and Enhanced Investment Technologies, LLC (INTECH). Additionally, Janus Capital Group owns 80% of Perkins Investment Management (formerly Perkins, Wolf, McDonnell and Company).
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[edit] History
Janus was founded in 1969 by Thomas H. Bailey as a subsidiary of Kansas City Southern Industries. Bailey stepped down as president and CEO in June of 2002.[3]
The firm was formerly known as Stilwell Financial Incorporated. The company was renamed following the January 2003 merger of Janus Capital Corporation into its parent company, Stilwell Financial.[4]
[edit] 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. [5][6] This includes $100 million in disgorgements and penalties. 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. 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. [7][8][9] A hearing was held in October and November 2007, but the SEC's administrative law judge has not yet issued a decision. [10]
On April 25, 2008, the SEC approved the Modified Plan of Distribution. Distribution will begin on August 15, 2008 and is estimated to continue through the end of this year.
[edit] External links
[edit] References
- ^ a b "Annual Report, Format 10-K, 2007". Janus Capital Group Inc.. http://ir.janus.com/downloads/2007_10k.pdf. Retrieved on 31 December 2008.
- ^ As of September 30, 2008. Janus: Company Overview
- ^ Janus Fund Chief and Founder to Step Down. The Street, June 12, 2002
- ^ Stilwell Financial and Janus to Combine Operations Under the Janus Name. September 3 2002
- ^ Janus Capital Management Agrees to Pay $100 Million to Settle SEC Fraud Charges for Undisclosed Market Timing Agreements
- ^ Janus Agrees To A Settlement Of $226 Million
- ^ USA Today, SEC accuses three ex-Janus executives of allowing market-timing trades
- ^ SEC accuses 3 former Janus execs in trading deals
- ^ SEC accuses former Janus execs
- ^ [1]
