Products February 3, 2003

Janus Shoots for More With "Less" in New Fund

March 3, 2003 (PLANSPONSOR.com) - Janus Capital Group has unveiled a new stock fund that purports to use a mathematical model to outdo the S&P 500 by anywhere from 1.5 to 4 or 5 percentage points.
Reported by

The Janus Risk-Managed Stock Fund will be managed by Enhanced Investment Technologies LLC (INTECH), a subsidiary of Janus.   INTECH had been 50.1%-owned by Berger Financial Group LLC, a former Stilwell unit that is now part of Janus (see  Berger Buys INTECH from Pru ).

Math “Matic”

The fund will use complex mathematics to construct a portfolio that will have fewer stocks and different weightings than its targeted index, identifying stocks with high relative volatility and low correlations with each other.   The portfolio is regularly rebalanced back to the target weights in an effort to “capture” an excess return, according to the firm.

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The INTECH proprietary investment process was developed by its chief investment officer, Dr. Robert Fernholz, a former professor at Princeton University.   The process relies on mathematical methodology rather than fundamental analysis of companies, according to the firm.

The strategy has been in place for portfolios that INTECH has managed for its institutional clients for the past 15 years, according to the report.

The new fund is available directly from Janus, unlike two other INTECH-managed fund products launched earlier this year and sold through financial advisers and other intermediaries.

Administration February 2, 2003

Banking Cie. To Consider Lowering SEC Fees

February 26, 2001 (PLANSPONSOR.com) - The Senate Banking Committee will meet Thursday to consider a bill that could save investors billions in securities trading fees.
Reported by

Senate Banking Committee Chairman Phil Gramm (R-Texas) said the Competitive Market Supervision Act would save investors $8 billion over five years by lowering fees paid whenever securities are registered, bought or sold, according to Dow Jones.

In January, Gramm noted that an average investor with a simple 401(k) retirement plan currently pays about $1,000 over their lifetime in SEC fees alone.

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The SEC currently collects about $2.3 billion each year in section 31 fees, though it requires less than $400 million annually in operating expenses.

The bill also would bring the salaries of SEC staff in line with those at other regulatory agencies.

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