Janus Capital will pay the Securities and Exchange Commission and other regulators $225 million to settle charges of improper trades, but some industry insiders think the news will be worse for Amvescap, the manager of the Invesco Funds, eFinancial reports. A rumor, fueled by an internal memo mentioning "exceptional charges," says that Amvescap has allotted $300 million for fines and penalties.
One analyst told eFinancial that Amvescap is not only being downgraded for reports of the settlement, but also because the company's first quarter numbers fell short of analysts' projections.
Janus, which suffered $6 billion in outflows during 2003, agreed to pay $50 million back to investors, another $50 million in civil penalties and to cut fund fees by $125 million over the next five years, as part of the settlement. Janus' settlement includes the SEC, the attorneys general of New York and Colorado, and the Colorado Division of Securities.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.