MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
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Tuesday, September 3, 2002 Janus is the Word After years of struggle Janus is coming out on top. At lease it is in name. Today Kansas City-based Stilwell Financial said that it is adopting Janus Capital as its new name and that it has a new chief executive. The reorganization will put all of Stilwell's investment management units (Janus, Nelson Money Managers, Berger and two Berger subsidiaries) under the control of one executive. It will also move all of the firm's executive management to Denver from Kansas City. When the reorganization is fully implemented, the Stilwell expects to realize annual savings of approximately $40 million from the elimination of redundant expenses, such as salaries, facilities and back office operations, said the company. Stilwell also expects to record a one-time third quarter charge of approximately $36 million for severance and other costs associated with this transaction. "Through this transaction, we will create a stronger, more efficient organization that will begin to unlock the potential value of our stockholders' investments. Our holding company structure will no longer be necessary, and we will be able to eliminate redundant expenses," explained Landon H. Rowland, president, CEO and chairman of Stilwell Financial in a statement. "The new Janus will have greater growth potential with a more diverse product line distributed under Janus' well-recognized global brand." The new chief is Mark Whiston, an 11-year veteran of Denver-based Janus. He will assume the top spot at the fund firm at the end of 2002 when the firm adopts it new structure. He will take over management of all of the firm's units, including Berger Financial Group and its Enhanced Investment Technologies (INTECH) and Bay Isle Financial units and United Kingdom-based Nelson Money Managers. Whiston is currently interim president of retail and institutional services. Whiston will also become vice chairman and a director of the Janus board. Rowland will serve as the non-executive chairman of the board of directors until January 1, 2004 and will continue as a director for one year thereafter. It is expected that Whiston will be appointed chairman on January 1, 2004. "Over the past decade, Mark Whiston has been an effective, strategic leader at Janus," Rowland added. "Mark has been responsible for the diversification of Janus' product distribution and has been instrumental in consistently delivering strong margins to stockholders. He is committed to creating a new, diversified Janus that capitalizes on its outstanding global distribution network and provides superior product alternatives." "As a result of this merger, Janus will be a streamlined organization with a much more competitive business model," said Mark Whiston. "The merger brings enhanced corporate stability, increased transparency and greater clarity in pursuit of our common business goals. Under this structure, we'll be able to maintain Janus' research focus while offering investors a broader range of choices by adding complementary investment disciplines. Finally, we will take full advantage of Janus' brand and global distribution network while realizing significant recurring cost savings." Bay Isle and INTECH will become direct subsidiaries of Janus. They will continue to oversee the products they manage and will operate at their present locations. Stilwell managers also said they are exploring the merger of Berger's growth-style mutual funds, now managed in Denver, into similar Janus funds. Finally, three new independent directors and two inside directors will also join the new board of Janus Capital Management at the start of 2003. The two inside directors are Helen Young Hayes and Jim Craig. The firm is searching for the three independent directors. Printed from: MFWire.com/story.asp?s=3409 Copyright 2002, InvestmentWires, Inc. All Rights Reserved |