Reuters: Global Markets: Janus shares fall after downgrade

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Janus shares fall after downgrade Mar 29th 2012, 19:05 BOSTON | Thu Mar 29, 2012 3:05pm EDT BOSTON (Reuters) - Shares of Denver asset manager Janus Capital Group Inc (JNS.N) were down about 4 percent in trading on Thursday afternoon after an analyst downgrade. In a research note sent to investors, Jefferies & Co analyst Daniel Fannon wrote that he cut his rating on the stock to "hold" from "buy," citing its recent run-up and the continued pressures it faces on earnings. Shares in Janus were down 3.8 percent to $8.84, compared with a decline in the Dow Jones index of U.S. asset managers of about 1.5 percent. For all of 2012 through Wednesday, Janus shares had gained 48 percent, among the most of all publicly traded fund companies, on hopes for improved flows and performance as equity markets rose. In his research note, however, Fannon noted Janus has been moving aggressively to assign performance fees to its fund products. While in theory the move should please the company's retail investors and fund performance has improved of late, the new fee structure is likely to hold back Janus profits at least in the near term, he wrote. Another challenge is continued outflows from its well-known equity funds, he wrote. "While fundamentals have improved thus far in 2012, particularly around investment performance, performance fees will take time to recover as will a return to equity inflows," Fannon wrote. (Reporting by Ross Kerber; Editing by Gerald E. McCormick) Link this Share this Digg this Email Reprints

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