ING US Financial Services
is pulling $5 billion out of Janus
funds. Janus revealed last month that an unnamed client was planning on making the large redemption but did not reveal the client's name at that time.
ING's redemption affects several Janus funds, but it will have a particularly large impact on the Aspen Balanced Portfolio, Aspen Flexible Income Portfolio, Aspen Mid Cap Growth Portfolio and Aspen Worldwide Growth Portfolio.
ING is dropping the Aspen funds from its variable annuities and defined contribution retirement plans.
As of July 31, Janus had approximately $129 billion in assets under management. The four hardest-hit Aspen funds had approximately $9 billion in assets. ING's redemption then represents more than 50 percent of the Aspen assets and approximately 3.9 percent of total assets.
Most likely, ING will take the redemption largely in kind (in securities rather than cash). That will decrease the amount of upset the redemption causes in the Janus funds. And shareholders, hopefully, won't feel any pain. A Janus spokesperson reportedly said that additional expenses caused by the redemption would not be passed on to other fund shareholders.
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