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Stilwell Lost $1.7 Billion/Day in Nov.
Stilwell Lost $1.7 Billion/Day in Nov.=20
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Stilwell Lost $1.7 Billion/Day in Nov.Stilwell Lost $1.7 Billion/Day in Nov=
By Christopher Noble
BOSTON (Reuters) - Janus Capital's parent, Stilwell Financial Inc. (NYSE:SV=
news), saw its assets shrink nearly $2 billion a day in November as the=20
hottest technology fund firm of the 1990s was hit by sharp market declines.
Stilwell reported on Friday it had $262 billion under management at the end=
of November -- a $38 billion plunge from the $300 billion at the end of=20
October. That works out to a huge $1.73 billion for each trading day, most =
it directly from Janus, which is 82.5 percent owned by Stilwell.
Much of the shrinkage is attributable to the dizzying drop of the Nasdaq,=
which logged a 23 percent decline in November, its second-worst fall ever.=
Only October 1987, the month of the stock market crash when Nasdaq lost 27=
percent, was worse.
The Dow Jones Industrial average, with much less exposure to technology, fe=
only 5.1 percent in November.
``The decline in assets under management has infinitely more to do with=20
market depreciation than it does with investor redemptions,'' said Jane=20
Ingalls, spokeswoman for Janus.
She declined to give specific figures for monthly net cash flow, but said=
November was shaping up much like September and October, when redemptions=
from Janus retail funds were offset by inflows through its institutional=20
``We were very squarely positive in September,'' she said. ''In October, we=
had modest outflows on the retail side, but they were offset almost entirel=
by institutional flows.''
Janus had retail outflows of $772 million in October after September net=20
redemptions of $46 million. September was the first time since December 199=
that Janus had net outflows.
``For November, it is still a little early to tell,'' she said. ``But again=
it's looking like modest outflows on the retail side and either flat or=20
slightly negative on the institutional side.''
A shrinking asset base is just the latest bump in the road the once sleepy=
fund firm traveled in the 1990s. It has endured an acrimonious dispute with=
its former parent, Kansas City Southern Industries, over a spinoff plan and=
its funds have been punished as investors soured on the tech and growth=20
sectors that are heavily favored by Janus portfolio managers.
Of Janus's 16 retail equity funds, 14 are in negative territory year-to-dat=
and all of them lost ground in November, according to data from fund tracke=
But recent filings with the Securities and Exchange Commission (news - web=
sites) show Janus has stuck with its investments and has not changed its=20
Stilwell also includes the Berger fund family, Nelson Money Managers Plc an=
a stake in DST Systems Inc.
Stilwell is not alone to suffer from investor hesitancy in recent months.
Preliminary estimates from TrimTabs, a firm that tracks money flowing in an=
out of the stock market, show $4.5 billion of new money flowed into mutual=
funds in November, the lowest figure for the year and the smallest since=20
February 1999, when inflows were $758 million.
The estimate excludes activity on Nov. 30 and is based on actual data from =
percent of the industry. TrimTabs extrapolates overall flows from its sampl=
The money still went heavily to technology and small capitalization funds,=
indicating a surprisingly resilient enthusiasm for the sectors, Wittnebert=
``The thing the public is really afraid of is missing a resumption of the=
rally of the Nasdaq and another indication of that is the continuing outflo=
from bond funds,'' he said.=20
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