July 30, 2010

Janus, Perkins Link Up to Launch New Income Fund

Perkins Value Plus Income Fund allocates assets between equities and fixed income

Janus Capital Group rolled out Perkins Value Plus Income Fund, the first product it will jointly manage with another firm, on Thursday, July 29. The new fund will combine Perkins Investment Management's value expertise and the credit expertise of Janus's fixed income team, a statement by Janus said.

Perkins Value Plus Income Fund, which has an effective date of July 30, seeks to provide investors current income with the potential for additional capital appreciation by investing in a combination of equity securities and credit-oriented fixed income securities, according to Janus. The fund will typically invest 50% of its assets in equity securities using the Perkins's methodology with an additional screen for income and 50% of its assets in credit-oriented fixed income securities, including high-yield and preferred securities.

However, the portfolio has the flexibility to adjust this mix in response to changing economic and market conditions. Perkins will be responsible for the day-to-day management of the equity allocation, and Janus will manage the fixed income allocation.

Jeff Kautz and Ted Thome of Perkins will serve as the equity portfolio managers. Kautz is the firm's chief investment officer and co-portfolio manager of the Perkins Mid Cap Value strategy. Thome is a research analyst, who covers the healthcare industry.

Janus' Gibson Smith and Darrell Watters will co-manage the fixed income portfolio. Smith serves as co-chief investment officer for fixed income of Janus Capital Management. Watters is co-portfolio manager of the Janus Short-Term Bond strategy as well as co-portfolio manager and executive vice president of the Janus fund based on that strategy.

Russell 1000 Value will be the benchmark for the equity allocation, while the benchmark for the fixed income allocation will be Barclays Capital U.S. Aggregate Bond. The blended benchmark will be 50% Russell 1000 Value and 50% Barclays Capital U.S. Aggregate Bond.

Perkins, 30, is a value equity manager with $16 million in assets under management as of June 30. Janus Capital Management is a wholly owned subsidiary of Janus Capital Group, which was managing $147 billion at the end of June.

Michael S. Fischer (msf7@columbia.edu) is a New York-based financial writer and editor and a frequent contributor to WealthManagerWeb.com.

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