Magazine article American Banker

Janus, Joining Trend, to Offer Cloned Funds for Investors Abroad

Magazine article American Banker

Janus, Joining Trend, to Offer Cloned Funds for Investors Abroad

Article excerpt

By GARMHAUSEN, STEPHEN

Janus, the Denver-based mutual fund company, is the latest money management firm to announce that it is getting into the fast-growing offshore-fund business.

The company's six funds, clones of its best-selling funds in the U.S. market, will open up to investors in December.

Industry experts expect increasing competition in offshore funds as overseas investors grow more sophisticated, governments ease restrictions on foreign investing, and pension systems are overhauled.

"Most U.S. fund companies are looking to gain overseas clients any way they can," said Ben Phillips, a consultant with Cerulli Associates, Boston.

"It's where the final frontier is."

U.S. companies had only a small slice of the offshore mutual fund market at the beginning of last year-about 8.5%, according to Cerulli and Micropal, a unit of Standard & Poor's.

The $52.4 billion of assets under management by U.S. firms was an increase of 33% from the year before.

Offshore funds are designed for investors who are not U.S. citizens. They are typically registered in countries that have strict privacy laws regarding financial assets.

The Janus funds will be domiciled in Dublin.

As they are in this case, the funds are often clones of domestic funds. They offer tax efficiency and international portfolio diversification.

The advantage of an offshore fund for a Brazilian investor, for example, is international reach.

Brazilian funds are allowed to invest only in Brazilian securities. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.