Janus Shuffles Manager Ranks at Three Funds

Janus is shuffling the managers of three funds, including the $8.3 billion (JAOSX)Janus Overseas fund and the struggling $1.5 billion (JAVTX)Janus Venture fund.

On Dec. 31, Brent Lynn will replace Laurence Chang as co-manager of the Overseas fund (Lynn will join Helen Young Hayes), while Chang retains his position as co-manager of the $34 billion (JAWWX)Janus Worldwide fund with Hayes. At the same time, William Bales will become the sole manager of the Venture fund, while former co-manager Jonathan Coleman becomes an assistant portfolio manager of the (JANSX)Janus fund, according to Thursday filings with regulators. All three funds are in the red for the year and are closed to new investors.

Also, Sharon Pichler will drop the Janus Money Market fund's reins to replace Darrell Watters at the helm of the (JATEX)Janus Federal Tax-Exempt fund, which is open to new investors. J. Eric Thorderson, manager of the Janus Government Money Market fund, will take over the Money Market fund. Watters will shift into a role analyzing high-yield bonds, according to Janus spokeswoman Jane Ingalls.

Watters had run the municipal bond fund since 1996, and it trailed its peers over the past one- and three-year periods, according to Morningstar.

Of the three changes, the Venture fund's adjustment might raise eyebrows due to the fund's recent struggles. Bales and Coleman have worked on the fund since 1997, but until late last year, former Chief Investment Officer Jim Craig held the reins, too. After riding a big tech stake to a 141% return last year, the fund has crashed harder than Janus' other tech-heavy growth funds. Since Jan. 1 the fund, closed to new investors since 1991, is down 50% and trails 98% of its peers, according to Morningstar.

The firm says the move is not performance-related, but rather an effort to bolster the research team on Blaine Rollins' Janus fund, with former Janus fund co-manager John Schreiber set to run the new Janus 2 fund next year.

"It has more to do with the fact that Jon Schreiber is now going to manage Janus 2. So, Blaine was interested in having more depth to his bench," says Ingalls. "Jonathan was willing to do that. He thought it was a good next step to take."

The Overseas and Worldwide funds are down 20.2% and 19.2%, respectively. Both funds retain solid long-term returns and neither's losses this year rank in their category's cellars, like the Venture fund. Lynn currently works with Hayes and Chang on the funds, and joined Janus nine years ago as a research analyst, according to biographical information on the firm's Web site.

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