Is Janus' Run Over?
From Wall Street Journal and From TheStreet.com
How much of Janus' growth resulted from the stellar performance of its funds and how much stemmed from its distribution smarts? The answer to that question may soon be provided. Janus's funds are no longer standouts -- through Monday, 15 of Janus's 18 retail stock and bond funds trailed their category averages, according to the paper. And, Jim Craig, chief investment officer and director of research, is stepping down at the end of September to manage a family charitable foundation. The return to Earth comes as Janus is trying to digest more than $38.5 billion of new cash so far this year. To handle the cash inflows Janus has closed seven of its 15 retail stock funds to new investors and has adopted an aggressive strategy of investing in private placements. A committee of the firm's top managers, including Jim Goff, Warren Lammert, Blaine Rollins, Scott Schoelzel, Helen Young Hayes and Chief Executive Officer Tom Bailey will take over Craig's responsibilities.
Janus opposes more disclosure
From Wall Street Journal
Janus Funds touts its analysts' legwork and ability to uncover information about companies in its television ads. To keep this edge, Janus is fighting the SEC over rules that would increase disclosure requirements on information companies reveal in private conversations. The SEC commissioners are set to act on the proposed rules Thursday. So far, the SEC has received a record of more than 6,000 letters on the idea, mostly in support. One letter, from Janus' General Counsel to the SEC took the other side. Thomas Early, wrote that the proposal could "severely limit the availability of corporate officials to Janus," reports the paper. Janus would be especially hampered by the rules since it offers advice to companies it invests in such as "rivals that companies should work with, the technologies they should investigate and the start-ups they should look at as takeover candidates."
BONY to buy hedge fund manager
From Boston Globe
Bank of New York Co. is expected to acquire closely held Ivy Asset Management Corp., according to the Journal. The paper says the bank is "seeking to expand investing options for its wealthiest clients and to beef up its growing asset-management operations." Ivy Asset, a "hedge fund of funds" manages about $2.4 billion in assets. Terms of the deal were not reported. Ivy is selling as a way "to resolve a succession issue as its founders" and to "offer its clients a wider range of services."
Summer sales in Europe are up
From Boston Globe
Europeans are known to take the summers off, but they are making their assets work harder than last summer. Cash flows into stock funds in Germany, France, Italy, Britain, Spain and Switzerland are running at twice last summer's rate. Still, flows fell 20% from May levels to $10.6 billion in June. Last June European funds took in $4.8 billion.
Details of German Pension reform surface
From Financial Times
The details of Germany's first overhaul of its "pay-as-you-go" pension system since the 1950s are starting to come out. Look for the draft pension bill to bolster private pension plans by providing incentives for occupational plans. The bill will reportedly give employees the legal right to have up to 4 per cent of their gross incomes paid tax-free into company or other private plans. Trade unions support the provision, as it would strengthen their hand in negotiating with employers for pensions. However, banks financial institutions reportedly oppose the requirement that plans provide an income for life on retirement and a guarantee that at least the sums invested would be paid out in order for the plan to qualify for preferred tax treatment. Another controversial idea being floated by the government is that women should pay the same "unisex" insurance contributions as men. The German Labor Ministry is expected to publish a draft of the bill in September.
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