If you're one of the small-potato investors Janus exploited to make their big-time clients a bundle in the the great fund timing scandal of 2004, we've got some good news. The Securities and Exchange Commission has given the go-ahead for the Denver-based behemoth to begin disbursement of $100 million of settlement money.
"The payment of nearly $18.23 million is the first disbursement of $100 million Denver-based Janus set aside to settle a market timing case.
The SEC directed the funds be transferred to Deutsche Bank to be distributed to 'injured investors.'
Investors in Janus have been waiting since 2004 to recoup some of their losses. The SEC estimates investors lost $20.9 million because of market timing arrangements with certain large investment companies.
The SEC said Janus benefited from market timing agreements because the investors agreed to make long-term investments in certain Janus mutual funds. But the prospectuses for the funds being timed stated, or strongly implied, that Janus did not permit frequent trading or market timing, according to the SEC."
Too bad they didn't just say in the prospectus "we favor certain clients to the possible detriment of other clients" and everything may have been honky-dory for Janus. Why Janus would risk a multi-billion dollar money machine over a few million dollars remains a mystery.
Investors in seven Janus funds during specific months of 2002 and 2003 are eligible for a piece of the pie. Read this FAQ for more info.
The Gods Must Be Crazy
If you're one of the small-potato investors Janus exploited to make their big-time clients a bundle in the the great fund timing scandal of 2004, we've got some good news. The Securities and Exchange Commission has given the go-ahead for the Denver-based behemoth to begin disbursement of $100 million of settlement money.
"The payment of nearly $18.23 million is the first disbursement of $100 million Denver-based Janus set aside to settle a market timing case.
The SEC directed the funds be transferred to Deutsche Bank to be distributed to 'injured investors.'
Investors in Janus have been waiting since 2004 to recoup some of their losses. The SEC estimates investors lost $20.9 million because of market timing arrangements with certain large investment companies.
The SEC said Janus benefited from market timing agreements because the investors agreed to make long-term investments in certain Janus mutual funds. But the prospectuses for the funds being timed stated, or strongly implied, that Janus did not permit frequent trading or market timing, according to the SEC."
Too bad they didn't just say in the prospectus "we favor certain clients to the possible detriment of other clients" and everything may have been honky-dory for Janus. Why Janus would risk a multi-billion dollar money machine over a few million dollars remains a mystery.
Investors in seven Janus funds during specific months of 2002 and 2003 are eligible for a piece of the pie. Read this FAQ for more info.
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