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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (4086)	9/27/2000 9:32:59 PM
From: Boplicity	Read Replies (1) \| Respond to of 65232

Janus on Track for 1st Monthly Outflows Since 1997 Denver, Sept. 27 (Bloomberg) -- Janus Capital Corp., the year's best-selling mutual fund company, said it's on pace to report monthly outflows for the first time in almost three years. Investors pulled a net $17 million from Janus's stock, bond and money market funds this month through Sept. 25. It would be the first cash leak since investors pulled $110.7 million in December 1997, spokeswoman Jane Ingalls said. The company's funds declined on average this year as the bets on technology stocks such as Priceline.com backfired. An investing style that emphasized fast-growing companies drove returns and sales last year. This year, the Nasdaq Composite Index has slumped. ``I'm concerned that maybe their style is out of favor, but at the end of the day the asset outflows are not as much as people think,'' said Phil Foreman, portfolio manager of the $1.48 billion Evergreen Growth & Income Fund, which owns shares of Janus's parent company, Stilwell Financial Inc. The outflows come amid the recent departures of several key Janus executives, including Chief Financial Officer Steve Goodbarn and Chief Investment Officer James Craig. Outflows Ingalls said the outflows probably resulted from the company's decision to close half of its 16 stock funds to new investors -- including five this year. Janus, which oversees about $305 billion, has no plans to reopen those funds. ``We saw tremendous inflows earlier this year, we took the unusual step of proactively closing five funds, and we knew that was in the best interests of our shareholders,'' Ingalls said. Janus had net sales through August of $37.81 billion, according to Boston-based Financial Research Corp. The Denver-based company closed Janus Global Technology Fund in January. It closed three funds, Janus Olympus Fund, Janus Global Life Sciences Fund and Janus Worldwide Fund, in May and closed Janus Fund in September. Fifteen of Janus's 16 equity funds were down for the month through Tuesday, according to Bloomberg. Nine of the 16 are down for 2000, Ingalls said. On Friday, Goodbarn resigned, ending an eight-year career at Janus. In August, Craig, who had been seen as heir apparent to Chief Executive Thomas Bailey, stepped down to run a family charitable foundation. Foreman said he read nothing into the recent departures. Though he would have preferred the spinoff company to be named Janus, he called Stilwell shares ``attractive.'' The shares were down 2.31 at 43 today. ``Stilwell is probably one of the better money managers in the country because they have a big presence in the 401(k) market that's growing,'' Foreman said, adding he believes it would be worth $65 (a share) if another company wanted to buy it. Industry Consolidation The money management industry is undergoing consolidation, with bigger firms buying ``jewel'' franchises. Though a Stilwell sale might face some tax barriers related to its spinoff from Kansas City Southern Industries Inc., a company that bought it at $65 a share might be willing to pay the taxes. Foreman also isn't worried about slowing cash flows at Janus. Ingalls said even after Craig's departure Janus's culture remains ``very much the same as it always has been.'' The company emphasizes that no individual is bigger than the team. About a year and a half ago, Craig created the executive investment committee at Janus, which includes a group of senior portfolio managers who handle the day-to-day running of the Janus investment team. Helen Young Hayes, Scott Schoelzel, Jim Goff, Warren Lammert and Blaine Rollins together with Bailey, 63, comprise the committee. ``Tom (Bailey) hasn't named a successor, and we don't expect him to,'' Ingalls said. ``It's probably not inconceivable that the person will come from the investment team. But as Tom has made it perfectly clear to all of us, he's not going anywhere.''

To: Boplicity who wrote (4086)	9/28/2000 5:27:40 AM
From: Clappy	Respond to of 65232

Greg, I was curious as to what they said about LHSP in that article that you posted. It looks as if you snipped it out. Was it good or bad news? -Clapper