Janus Hikes Redemption Fee to Quell Frequent Tradi

Whiston added that none of the current portfolio managers on the affected funds established the frequent trading arrangements in their respective funds; no Janus portfolio manager or senior executive engaged in frequent trading activity in Janus funds through his or her own personal accounts, including retirement accounts; and that Janus has no agreements allowing investors or clients to buy fund shares after market close and obtain that day’s closing price.

As reported in the Wall Street Journal, Richard Garland, a Janus executive who investigators say gave e-mail approval to rapid trading of Janus mutual fund shares, stepped down as head of the fund firm’s international business.

Garland’s e-mails were featured prominently in the complaint filed against hedge fund Canary Capital partners LLP by New York Attorney General Eliot Spitzer on Sept. 3., the Journal said. The complaint alleged that Canary and managing principal Edward Stern had executed rapid trades in and out of several firms’ mutual funds, including some at Janus.