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7/4/2004

Janus Group outlines cuts in investor fees

The Associated Press

DENVER — Janus Capital Group has cut investor fees in its mutual funds by up to 23 percent as part of a settlement of allegations of improper trading.

The cuts, effective Thursday, range from 1.5 percent to 23 percent, the Denver-based money manager said in a letter filed with the Securities and Exchange Commission.

The changes should affect nearly all Janus investors, company spokesman Blair Johnson said.

Janus slashed annual fees at the Janus Worldwide, Balanced, Core Equity and Risk-Managed Stock funds and other offerings. Balanced fund holders now will pay $80 a year for every $10,000 invested, down from $89 late last year, while Risk-Managed Stock investors will pay $98 a year, instead of $113.

The Janus Fund, Enterprise, Global Opportunities, Mercury, Olympus, Overseas, Twenty and Venture funds also will see cuts, according to the SEC filing.

Most Janus funds already had fees in the lowest quartile of their peer groups, Johnson said.

Janus considered the funds’ performance over the past few years and expenses relative to industry rivals in determining the changes, Johnson said. The company also sought to benefit as many investors as possible, he said.

Janus in April agreed to reduce fund-management fees by $125 million over five years to settle claims by state and federal regulators that it allowed certain investors to engage in market timing.

Janus also agreed to $100 million in penalties and restitution.