|
 Gross, who began managing the Janus Global Unconstrained Bond Fund
in October, will continue to be primary portfolio manager,
Denver-based Janus said. Palghat will be co-portfolio manager.
The fund has underperformed 80 percent of its peer category so far
this year and has had low cash inflows. In May, it posted net
outflows of $11.7 million and had assets under management of $1.5
billion at the end of the month, according to Morningstar.
Kapstream is a pioneer in managing global unconstrained fixed
income, Janus said.
"Combining the success and experience of Kapstream's unconstrained
fixed income business with Bill's reputation as one of the world's
most successful fixed income investors creates a powerful
opportunity for our clients and for Janus Capital," Janus Chief
Executive Officer Dick Weil said in a statement.
Gross, Weil and Palghat worked together at bond giant Pacific
Investment Management Co (Pimco) for 10 years.
Janus is spending at least $85 million to buy a majority interest in
Kapstream, an Australian-U.S. global bond firm that managed $6.6
billion as of March 31. The company said its stake in Kapstream
would result in total Janus Global Macro Fixed Income assets under
management of $8.7 billion as of March 31.
Janus said the combined Janus Global Macro Fixed Income team,
consisting of 15 professionals once the transaction is completed,
will operate jointly from Kapstream's base in Sydney and Janus's
Newport Beach, California, office.
[to top of second column] |
Gross, known as the "Bond King" for his decades-long run of
successful returns, shocked fixed-income markets last year when he
quit Pimco, which he built into a $2 trillion powerhouse, in
September for Janus.
Todd Rosenbluth, head of exchange traded fund and mutual fund
research at S&P Capital IQ, praised the moves by Janus, saying, "The
increased asset base and additional resources is a positive as Janus
looks for the best bond investment ideas around the world.
"While at Pimco, Gross had a much broader team of fixed income
professionals to help with the portfolios he was the lead manager
on," Rosenbluth said in an email. "However, it is unclear if the
investment approach will change, either positively or negatively."
(Additional reporting by Sam Forgione; Editing by Jonathan Oatis)
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