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December 16, 2002 at 07:00 PM
Dec. 12, 2002 — Janus Capital Management is taking over its cousin Berger Funds.
Janus said trustees of the Berger funds have agreed to merge its growth funds into similar Janus offerings, and to fold its value-oriented funds into the Janus family.
Janus has also agreed to buy a 30% stake in Perkins, Wolf, McDonnell & Co., a Chicago investment firm that runs two of the value funds being acquired by Janus.
Janus, which has seen its assets under management decline over the last two years, will get control of about $4.7 billion in assets in the reorganization, bringing its total assets to about $135 billion. Janus and Berger are units of Stilwell Financial (SV), which is being organized into a single business that will operate under the Janus name.
Janus benefits from the deal by gaining a “substantial amount” of assets for which it will collect management fees, said Burton Greenwald, a mutual fund consultant in Philadelphia. Moreover, Janus will acquire the assets cheaply, he said.
“They’re basically paying the expenses of the transaction,” said Greenwald. He noted that companies typically have to pay a fee equivalent to 2%-4% or more of the assets they are buying to purchase an investment management firm.
Janus, whose funds are primarily growth-oriented, will also be broadening its product line with the addition of the value-oriented funds, Greeenwald added.
