The face of

Janus Capital Management

(JNS)

continues to change.

The firm announced Thursday morning that Helen Young Hayes would retire as manager of the $11.1 billion

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Janus Worldwide Fund and the $2.59 billion

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Janus Overseas Fund, and as managing director of investments. The two ailing funds had reopened to new investors in recent months, but that hasn't stopped the outflows.

The firm named existing co-managers at the two funds to replace Hayes and said it is starting a search to fill the "new and expanded" post of chief investment officer, a position vacation since Jim Craig left the firm in 2000. The news comes two months after another Janus fund manager, Janus Mercury skipper Warren Lammert, decided to step down.

Janus said Hayes, who joined the firm in 1987, made the decision to leave. "Helen has made a personal decision; it's time for her to retire," said Janus spokeswoman Shelley Peterson. Hayes will step down June 16, and she plans to stay on as an adviser to Janus through the remainder of 2003.

The company said Laurence Chang, co-manager of the Worldwide fund since September 1999, will assume the lead manager role at the fund. Brent Lynn, co-manager of Janus Overseas since Dec. 31, 2000, will become lead manager of the Overseas fund. Doug Kirkpatrick will become assistant portfolio manager at Overseas; Garth Yettick remains assistant portfolio manager at Worldwide.

The news is the latest in a seemingly endless succession of changes at Janus, whose name for many investors has become synonymous with the frothy, exuberant and hubristic bygone days of the 1990s tech-stock boom. During the past three years of the bear market, many Janus funds have substantially underperformed their peers, and investors have withdrawn billions of dollars. Meanwhile, many money managers have left, and the firm went through

a protracted battle with onetime parent Stilwell Financial. With Hayes' departure, few of the firm's stock funds -- Growth and Income, Olympus, Twenty and Venture among them -- will have managers whose experience goes back five years.

"The timing of my retirement may seem unexpected," Hayes said in a news release. "However, I believe the time is right for two very important reasons. First, I have two very capable successors already in place. Laurence Chang and Brent Lynn are ready to assume the reins after a decade of working alongside me on every aspect of the fund management process. Second, I believe, it's the right time for Janus to bring in a single-purpose chief of investments."

Janus is looking externally and internally for a new chief investment officer. The key distinction between the CIO job and Hayes' role as managing director of investments is that the new CIO won't manage funds. "CIO will be the sole responsibility of the job," Peterson said.

The two international funds helmed by Hayes were white-hot in the 1990s but have turned cold during the past few years. The Worldwide fund's 10-year average annual return of 7.65% ranks in the top 19% of its peers, but the 22.05% annual loss over the past three years trails 86% of its peers, according to Morningstar. The Overseas fund, meanwhile, has posted a three-year average annual loss of 22.5%, trailing 83% of its peers.