Under the agreement, JP Morgan Private Bank will recommend Janus subsidiary INTECH's $700 million Risk Managed Core Fund worldwide to its wealthy clientele.
JP Morgan Private Bank, which requires a minimum of $5 million to open an account, manages assets worth $275 million, making it the biggest private bank in the U.S. and the third-largest in the world.
The fund company's ranking has slid to 14th place in the U.S. due to a substantial decline in assets over the years and allegations over market timing practices at some of its funds. Its tie-up with JP Morgan is expected to bolster its position as the private bank only offers select products after conducting rigorous research.
Janus has a 77.5% stake in Enhanced Investment Technologies (INTECH), which specializes in investments using mathematical strategies tailored around indexes.
INTECH's Risk Managed Core Fund, which invests mostly in U.S. equities, saw a 12.2% return in the 12 months ended January 31 compared with the 6.23% return of the S&P 500 Index.
Erich Gerth, who heads Janus' international business, told Reuters it was difficult to estimate the value of inflows from the deal.