A report that Janus Capital Group hemorrhaged an additional $900 million in net outflows during October has reinforced fears that the mutual fund giant is on a very slow road to recovery from recent problems with securities regulators.
The saving grace in an otherwise dismal month for Janus was the $900 million stream of new net inflows generated by its INTECH computer modeling subsidiary. The firms traditional stock and bond mutual funds, on the other hand, bled $1.8 billion.
October also marked the end of a brief $200 million rally of new net inflows in Sept., which was largely propped up by $1.7 billion of new net inflows stemming from INTECH. Janus has endured a rough patch of net outflows ever since April 2003, triggered by settlements with regulators and a rocky stock market. But the firms management is talking up improved performance, noting that in the 12-months ended Oct. 31, 61% of the Janus retail funds were in the top half of their Lipper categories.