US – An unnamed client is to pull five billion dollars (4.1 billion euros) from Janus Capital by the end of the year.
Denver-based Janus said that it has been informed that the client intends to redeem funds totalling around five billion dollars by year-end, subject to approval by the client’s board of directors in early August. The sum represents 3.7% of the 135 billion dollars Janus says it had under management as at the end of June.
The client is unlikely to be European as Janus only has two billion in assets under management in Europe.
“We appreciate the loyalty of our clients during the past bear market,” said Janus chief executive Steve Scheid. “We’re disappointed when any client comes to this conclusion, especially given our improved performance and the steps we’ve taken to put our fund holders first. We continue working hard to deliver strong, consistent performance.”
The firm was one of the highest-profile of a number of firms caught up in the US mutual fund market timing investigation. The affair claimed the scalp of chief executive Mark Whiston in April.
Last week Janus reported second-quarter earnings of 130 million dollars – up from 47.5 million dollars a year earlier.
The results included a pre-tax gain of 228.0 million dollars on the sale of the firm’s remaining nine percent stake in DST Systems. And there were pre-tax charges amounting to 83.1 million dollars.