Janus To Introduce New Fee System In 2007

Janus Capital Group plans to introduce a new system that will link manager fees to performance, the Denver Post reports. According to the Post, Janus will use performance fees for 13 of its mutual funds, including its three largest – Janus Mercury Fund, Janus Contrarian Fund and Janus Worldwide Fund.

Janus Capital Group plans to introduce next year a new system that will link manager fees to performance, the Denver Post reports. According to the Post, Janus will use performance fees for 13 of its mutual funds, including its three largest – Janus Mercury Fund, Janus Contrarian Fund and Janus Worldwide Fund. Performance fees will be based on a rolling three-year average, so that new investors for the most part would not pay a rate based on gains that occurred before they joined a fund.

“Funds need something to differentiate themselves now that expenses are scrutinized by investors,” Dan Sondheim of mutual fund consultant SunStar told the Post. Janus joins The Vanguard Group and Fidelity Investments, which recently announced performance-linked fees. Fewer than 10% of mutual funds use such a system.