Janus Capital is off the schneid.

The troubled mutual fund manager reported a spike in assets for the first time in nine months, citing the strength of its Intech subsidiary, which uses a mathematical model to make investment decisions.

Total assets under management rose 1.9% to $130.2 billion in September, up from $127.8 billion the previous month, the Denver-based company said in a release. Janus also posted net sales in both stock and bond portfolios for the first time since April 2003. Redemptions in September were $0.5 billion less than August

Known for its aggressive growth funds, Janus took a pounding after the collapse of the high-flying technology sector and subsequent bear market. Allegations the company allowed improper market-timing trades exacerbated its woes and sent fund shareholders fleeing in droves. As a result, assets under management have fallen to their current level from more than $300 million.

Intech, founded in 1987, has helped the fund shop stop some of the bleeding with its risk-managed portfolios, Janus CEO Steve Scheid said. Intech, headquartered in Palm Beach Gardens, Fla., has seen its assets balloon to more than $20 billion from a mere $6 billion at the start of 2002.

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