Shareholders of 13 long-term mutual funds advised by Janus Capital Management approved a proposal on Monday to introduce performance-based fees in early 2007, said Janus spokeswoman Shelley Peterson.
The new fees will range within a band of plus or minus 15 basis points from the current base fees across the board, although the extent by which a portfolio manager has to outperform the benchmark to earn the performance fee will differ depending on the level of risk for each investment strategy. Four funds that won shareholder approval earlier – the Janus Research Fund, Janus Risk-Managed Stock Fund, Janus Adviser Risk-Managed Core Fund and Janus Aspen Risk-managed Core Portfolio – will have performance-based fees go into effect Jan. 1, 2007. For the Janus Contrarian Fund, Janus Adviser Contrarian Fund, Janus Mercury Fund, Janus Mid Cap Value Fund, Janus Adviser Mid Cap Value Fund, Janus Aspen Mid Cap Value Portfolio, Janus Worldwide Fund, Janus Adviser Worldwide Fund and Janus Aspen Worldwide Growth Portfolio, the new fees will take effect Feb. 1, 2007.Ms. Peterson said the 13 funds account for about 30% of Janus' mutual fund assets. The firm is "extremely pleased" to win approval for the proposals, believing it will further align the interests of Janus with its shareholders, she said.