While Morningstar has recommended that investors rethink their holdings in the four fund families named in New York Attorney General Eliot Spitzers complaint Janus, Bank of Americas Nations Funds, Bank One and Strong at least one mutual fund family has confirmed its faith in the company, Reuters reports.
IDEX Funds board of directors has decided to allow Janus to continue to run five of its funds with $2.3 billion in assets. However, Reuters notes, these funds have not performed well. The IDEX Janus Growth fund, for instance, has trailed its category over the past three years by an average of 8.6%.
One member of the IDEX board said that it has decided to reserve judgement until all of the facts on the complaint are in. But Morningstar Analyst Brian Portnoy said that investors, financial planners and companies that do business with Janus would be wise to reassess their relationship with the beleaguered fund complex.
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.