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Janus Capital


said a client intends to withdraw $5 billion from its funds by year-end, or 3.7% of the company's total assets under management.

Denver-based Janus didn't identify the client. Janus CEO Steve Scheid announced the development in a note to investors.

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"We appreciate the loyalty of our clients during the past bear market," said Scheid. "We're disappointed when any client comes to this conclusion, especially given our improved performance and the steps we've taken to put our fundholders first."

The announcement is the latest difficulty for Janus, which agreed to a $225 million settlement with federal and state regulators earlier this year to resolve claims it allowed improper mutual fund trading. Investors have redeemed $28.5 billion in the past nine months.

Last week, Janus reported quarterly earnings of 17 cents a share, down from 24 cents a share for the same period last year. Janus said second-quarter assets under management were $138.6 billion, down from $143.1 billion for the comparable 2003 quarter, a decrease of 3.1%.

Janus shares recently traded down $1.04, or 7.56%, to $12.84.