San Francisco City & County Employees' Retirement System is terminating five mutual funds - four from Janus and one from J.P. Morgan Fleming - as options in its $926 million 457 plan, largely for underperformance, said Clare Murphy, executive director. Market-timing issues involving Janus were a secondary concern, she said.
The plan is dropping the Janus Aspen Worldwide, Twenty, Aspen Balanced and Aspen Series Flexible Income funds; and the ING J.P. Morgan Fleming International stock fund. After Feb. 3, assets from the Janus Aspen Worldwide fund and the ING J.P. Morgan Fleming portfolio will be mapped into the ING International Value equity portfolio; assets from the Janus Twenty fund to the ING T. Rowe Price Growth Equity fund; Janus Aspen Balanced fund assets to the ING VP Balanced fund; and Janus Aspen Series Flexible Income assets to the ING VP Bond fund. All the funds receiving assets from the terminated funds are existing options.
Blair Johnson, Janus' director of public relations, said, "The vast majority of our shareholders and clients are taking a wait-and-see approach," noting performance has been very encouraging year-to-date. He said Janus hopes to earn back the fund's business in the future. Carolyn Jones, a spokeswoman for J.P. Morgan Fleming, declined to comment.