In a perilous time for Janus Capital Group, the news is not improving. The company indicated that one of its clients plans to withdraw $5 billion by the end of 2004, a figure that represents a huge chunk 3.7% of the companys assets under management, according to Reuters.
For the fledgling fund giant, which settled its improper trading charges three months ago, bad news trickled into the executive office, as well. Executive Vice President of Institutional Services Lars Soderberg has decided to resign after a leave of absence.
While Janus spokesperson Steve Belgrad would not say which client was in withdrawal mode, he did say the unidentified companys board would meet in August to decide whether to remove its $5 billion in assets from Janus.
Since the onset of the mutual fund scandal last September and Janus subsequent settlement with New York Attorney General Eliot Spitzer, the companys stock price has dipped 22% to $13.89 per share.