Responding to declines in its direct mutual fund business, Janus said it has cut 222 jobs in its Denver retail shareholder servicing department. None of the firms investment management staff were affected by the cuts.
The firm said that it was reacting to an overall trend in the industry where investors are increasingly turning to intermediaries for advice about what mutual funds they should buy. As a result, the Denver-based company said activity in its direct channel had declined markedly.
"This wasnt an easy decision," Janus service company president Tim Hudner said in a statement. "But it makes sense given the reduced demand were seeing in the direct retail part of the mutual fund industry. Given the stock markets recent turbulence, more individual investors are seeking help form financial professionals and our direct retail business reflects that trend."
In addition, Hudner said that lower call volumes at the firms service center may be the result of an increasing number of Janus funds that have closed to new investors as well as shareholders increasing use of Web technology to service their accounts.