Named after the Roman god with two faces, Janus Capital Group provides investment management and advisory services for institutional and individual customers. Known for its intensive equities research, the company manages about 40 mutual funds, including its flagship Janus Fund (formed in 1969), as well as separate accounts and sub-advised portfolios. Subsidiary INTECH manages institutional portfolios by utilizing investment strategies based on mathematical analysis of the stock market, while Perkins Investment Management focuses on long-term value investments. All told, Janus Capital and its subsidiaries have more than $160 billion of assets under management.
In addition its Janus-branded mutual funds, the company also oversees the Janus World Funds, which are available only to investors outside of the US, and Janus Aspen portfolios, available through retirement plans. Janus Capital, which sells its products through financial advisors, retirement plans, banks, insurance companies, brokerages, and other channels, has operations in the US, Europe, Asia, and Australia. Overseas expansion is a key part of the company's strategy.
Janus Capital's funds are managed by co-chief investment officers who endeavor to identify strong businesses or undervalued stocks in which to invest. To illustrate their commitment to their choices, portfolio managers invest in the funds they oversee. Investment disciplines include growth, value, international, alternative, fixed income, asset allocation, and risk-managed portfolios. In order to reduce its reliance on equities, Janus Capital is building its more conservative fixed-income assets under management.
Much of Janus Capital's revenue is based on its assets under management. The company reported more than $750 million in losses in 2009, mainly due to slumping stock markets that ate away its assets under management. To help offset the commensurate decline in revenue, the company announced plans to implement performance fees on several of its funds. Janus Capital's assets under management rebounded and the company returned to profitability in 2010 as market conditions improved.
The company's assets under management and net income increased again in 2011. Its bottom line was helped by lower compensation costs, as several of its funds (and their managers) failed to meet performance benchmarks; Janus Capital has since changed its incentive plan to link investment performance and net income. The company cut the pay of CEO Richard Weil by 40% after a 2012 shareholder vote and capped his compensation at $10 million. – less