Tags: Janus | Gross | funds | investing

Money's Flowing Into Janus But It's Not Headed Toward Bill Gross

Monday, 23 March 2015 01:38 PM

Analysts from Jefferies Group paid a visit to the headquarters of Janus Capital Group Inc. last week and produced a lengthy report.

Sadly, it contained very little gossip about the colorful new kid on the block, Bill Gross. Happily, it did contain these interesting tidbits: analyst Daniel T. Fannon and colleagues reduced their estimate for next year’s inflows into one asset class by two thirds, from $24 billion to $8 billion. Meanwhile, in another asset class, they doubled their inflow estimate from $5 billion to $10 billion.

Ah, of course, that makes all the sense in the world, you may be thinking. Now that the Bond King has had enough time to get a decent groove going on his new chair at Janus, the money is pouring in. And all those active equity funds are probably getting smoked by the S&P 500 and struggling for deposits, right?

Well, no, not really. The raised inflow estimate is for the equity business and the reduced estimate is for the fixed-income business.

“With the press focused on Mr. Gross, the equity franchise has re-emerged with strong relative performance across a number of products,” the analysts wrote. “Following several years of net outflows in its retail equity franchises, JNS has been net positive in each of the last three months,” they wrote, to the tune of about $500 million total.

Life Sciences

The optimism surrounding the stock funds comes as equity investments at Janus are up about 5.3 percent year-to-date, according to Jefferies. One of the standouts is the $4 billion Janus Global Life Sciences Fund, whose top holdings at the end of the third quarter included Gilead Sciences Inc., Valeant Pharmaceuticals International and Celgene Corp. It returned 39 percent over the past year through Friday, beating 88 percent of similar funds and the 24 percent return for the MSCI World Health Care Index, according to data compiled by Bloomberg.

On the other hand, the analysts note, Gross’s Global Unconstrained Bond Fund, flat year to date, ranks in the bottom quintile of similar funds so far this year. Its total assets slipped slightly to less than $1.45 billion at the end of February from more than $1.46 billion at the end of January, data compiled by Bloomberg show.

Fixed-income assets have the potential to grow significantly given Gross’s reputation, the report notes. However:

“While still early, the Bill Gross era has started slowly in terms of relative performance,” Fannon and colleagues write.

Hmm, come to think of it, when it comes to Bill Gross gossip, that’s not half bad.

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Bill Gross’s Global Unconstrained Bond Fund saw its total assets slip slightly to less than $1.45 billion at the end of February from more than $1.46 billion at the end of January.
Janus, Gross, funds, investing
Monday, 23 March 2015 01:38 PM
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