Janus strategy shift sees greater diversity

Once bitten, twice shy Janus announces it is to adopt a less vulnerable investment style, writes Roxane McMeeken.

The international arm of US funds house Janus is undergoing a strategy shift that will see it switch its core competency from asset management to product distribution. The distribution strategy will focus exclusively on institutions, in particular private banks, multi-managers and pension schemes. Hendrik Rox Hansen, newly recruited Brussels-based head of institutional sales for Northern Europe, said Janus would adopt a “new formula”. Under the old formula Janus was an “aggressive growth” manager. The firm was burned by the slump in the growth sector, led primarily by technology stocks, explained Mr Hansen. “We are now developing a much more diversified product range,” he said. “You are too vulnerable if you only offer one kind of investment style. There are too many ups and downs.” Janus is seeking to form a number of partnerships with fund managers. The process began early this year when Janus’ parent company Janus and Stillwell Financial pooled the operations of Janus and three other subsidiaries into a single entity called the Janus Capital Group. The subsidiaries add small, mid and large-cap value styles as well as property funds to the Janus offering. Janus is also about to sign a deal with Vontobel, under which the Swiss fund manager will sub-advise a number of emerging market strategies, further expanding the Janus range. The next step, said Mr Rox Hansen, would be to clinch an agreement with a European equity manager, with the aim of redressing Janus’ US bias. He added that hedge funds could follow. One of the Janus and Stillwell subsidiaries, US-based Perkins, Wolf, McDonnell & Co, is taking over a portion of Janus International’s fledgling value strategies. “Janus will still distribute the products,” said Mr Rox Hansen, “but we want best of breed managers.” As part of the effort another subsidiary, Florida-based Intech, is poised to launch funds with a more global focus, having until now been heavily US-orientated. Intech and Perkins Wolf will play a key part in Mr Hansen’s drive to win assets from the Nordic and Benelux regions, where Janus currently has little business. In his previous role at State Street, Mr Hansen grew Nordic business from nothing to around E7bn in five years. He hopes to repeat this record at Janus.

Hansen: unveils ‘new formula’