Janus will close a deal to sell the Private Client Asset Management half of Bay Isle Financial to First Republic in the third quarter of 2004, the firm announced on Thursday. Janus will hold on to the institutional side of Bay Isle.

The firm "intends to address the [high-net worth] market segment through distribution partners," instead of directly, said Janus spokeswoman Shelley Peterson. The sale of Bay Isle's high-net worth division marks the last of Janus' directly-offered high-net worth services.

Peterson added that Janus has repeatedly stated its focus on the firm's "core growth business."

The high-net worth division of Bay Isle, based out of Oakland, California and Hawaii, manages $600 million in assets for more than 650 private clients in those states. Gary Pollock, Bay Isle's president and co-founder, heads the private client division.

Bill Schaff, Bay Isle chief executive officer, runs the other $600 million half of Bay Isle, the institutional side. Janus will retain the institutional business, which manages REIT investments for institutional clients and subadvises for Janus mutual funds.

Schaff will stay on with two portfolio managers and two research analysts at Janus, the rest of Bay Isle will go to First Republic. Schaff and the others will remain in Oakland.

"This allows my team and me to focus solely on delivering strong consistent performance to our institutional clients," said Schaff. 

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