Janus Group

Jim Craig doesn't like the idea that big stocks and small stocks should be an either/or proposition for a mutual fund manager. His employer, Denver-based Janus Group, solved that problem: They gave him both types of funds to run. So far, Craig's shareholders can't complain about his split personality. Both his big-stock Janus Fund and small-stock Janus Venture Fund boasted total returns in excess of 90% in the five years ended June 30--far surpassing the 49% return of the average U.S.

Jim Craig doesn't like the idea that big stocks and small stocks should be an either/or proposition for a mutual fund manager. His employer, Denver-based Janus Group, solved that problem: They gave him both types of funds to run. So far, Craig's shareholders can't complain about his split personality. Both his big-stock Janus Fund and small-stock Janus Venture Fund boasted total returns in excess of 90% in the five years ended June 30--far surpassing the 49% return of the average U.S.

Investor suits claiming that Putnam Investments and Janus Capital Group engaged in improper trading will be led by California Investment Advisors and the Ohio Tuition Trust Authority, court papers said Thursday. The two groups will act as lead plaintiffs for suits filed across the country. Ohio will oversee the Putnam suits and California Investment Advisors will oversee the Janus suits, according to an order issued by a group of federal judges in Baltimore.

Janus Capital Group Inc., the Denver-based mutual fund company that settled accusations over improper trading agreements, said Thursday that it was supplying regulators with information about the firm's relationships with brokers. The Securities and Exchange Commission is examining agreements between Janus and brokerages that sell Janus funds, the company said in a filing. The agreements weren't covered in Janus' $226-million settlements with regulators last month, the filing said.

Janus Capital Group Inc., a Denver-based mutual fund company under investigation by state and federal regulators, said it would pay $31.5 million to reimburse fund investors hurt by improper trading. The company also split the role of chairman and chief executive, naming Steven Scheid, 50, former vice chairman of Charles Schwab Corp., as chairman. Mark Whiston, 41, remains as chief executive. Janus rose $1.08 to $15.91 on the New York Stock Exchange.

Janus Capital Group Inc. said one of its clients plans to pull about $5 billion from the firm's mutual funds by the end of the year, a sum that represents 3.7% of Janus' assets under management. Denver-based Janus is one of a number of fund giants that have suffered blows to their images since September because of allegations that they allowed favored clients to engage in abusive trading of fund shares.

Los Angeles-based American Funds led all mutual fund companies in net cash inflows to stock and bond funds in April, continuing the pattern of the last year, fund tracker Financial Research Corp. said Monday. American Funds, which markets conservatively managed stock and bond funds, took in a net $8.7 billion in April. It was followed by Vanguard Group, with $4.6 billion in net inflows.

Janus Capital Group Inc., the mutual fund giant that was among the many big investors caught by surprise by Enron Corp.'s accounting scandal, had some accounting problems of its own in 2002: The firm said Wednesday that an error in bookkeeping meant per-share diluted earnings were understated. Janus' full-year diluted profit was 38 cents a share, not the 31 cents previously reported, the firm said.

U.S. stock funds could have their second best year for inflows, although six firms connected to improper trading scandals suffered combined outflows of $21.3 billion in November, fund research firm Lipper Inc. said Thursday. Despite the scandals, U.S. equity mutual funds had inflows overall of $22 billion in November, down from $23.8 billion in October, Lipper said. Lipper named the six firms suffering the combined $21.3 billion in outflows as Alliance Capital Management, Bank of America Corp.

Janus Capital Group Inc. Chief Executive Steven Scheid said Wednesday that his pay would be one-third less than his predecessor's and that he would work without a specified term to "set the tone" after the U.S. fund company reached a settlement with regulators over improper trading. Scheid, 50, last week succeeded Mark Whiston, who received $4 million in compensation in 2003.

Janus Capital Group Inc. said Wednesday that its third-quarter earnings declined 33%, but that it was the first time since the mutual funds manager was targeted by an improper trading investigation that more money was being added to the funds than was being withdrawn. Janus shares rose $1.61, or 11%, to $16.78. Chief Executive Steve Scheid also announced the promotion of Chief Investment Officer Gary Black to replace him, effective in January, saying it would be a natural transition.