Hayes resigns at Janus as outflows continue

Her funds are sputtering

firm's earnings dwindle

April 18, 2003|By BLOOMBERG NEWS

DENVER - Helen Young Hayes, who was promoted 14 months ago to help prop up Janus Capital Group Inc.'s slumping mutual funds, resigned as investors continued withdrawing money after pulling $14.2 billion more than they added last year, the company announced yesterday.

After taking on new duties as managing director of investments, Hayes, 40, continued to oversee billions as co-portfolio manager of Janus Worldwide Fund and Janus Overseas Fund. Each of those funds fared worse than at least 83 percent of rival funds over three years. As assets under management tumbled, earnings slid 72 percent in 2002 and may fall again this year.

"She and everyone else at Janus has done poorly in the bear market," said Russ Kinnel, director of fund analysis at Morningstar Inc. "They've gone from heroes to goats."

The 16-year veteran was part of the new management team that took over the firm after its merger with parent company Stilwell Financial Inc. in January. Hayes was among two key executives named by new Chief Executive Officer Mark Whiston. Janus will replace her with a chief investment officer, a position last held by Jim Craig in September 2000, spokeswoman Shelley Peterson said.

Hayes' task as managing director of investments was to improve performance as client withdrawals escalated. In the past two years, Denver-based Janus lost $127 billion, or about half, of its assets under management, according to Friedman, Billings, Ramsey & Co. Inc., a Virginia-based investment company.

In 1997, she was named Morningstar's International Fund Manager of the Year. Three years later, Hayes, a Yale University graduate with an economics degree and a triathlete, was among the SmartMoney Power 30, a list of the most influential people in the investing industry.

Hayes is to step down from daily responsibilities June 16 but remain at Janus through the end of the year.

Laurence Chang, co-portfolio manager of Janus Worldwide Fund, and Brent Lynn, co-portfolio manager of Janus Overseas Fund, will now run their respective funds.

Hayes' departure marks the end of the Janus trio known for building up the firm in the late 1990s. Craig left at the end of 2000, though he has returned as a member of the board of directors of the newly merged company. Tom Marsico runs the Marsico Focus Fund, which has beaten 85 percent of rivals over three years.

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