US - The market-timing scandal hitting the US mutual fund industry claimed more casualties today as Richard Garland, CEO of Janus International and managing director of Janus Global Adviser quit the beleagured firm.
The news follows yesterday’s announcement by CalPERS, the world’s biggest pension fund, that it had dumped Putnam Investments from its roster following earlier fraud charges.
Garland resigned following investigations by the Securities and Exchange Commission (SEC) and the US Attorney General Spitzer into improper market trading.
A Janus spokesman said: “Both Janus and Mr Garland were of the view that it would for the best if he left the company.”
Garland’s fall comes after Putnam chief executive Lawrence J. Lasser quit following allegations of state and federal fraud charges against his firm.
Putnam and Janus, two of the more well-known names in the US mutual fund industry, have suffered an exodus of assets from anxious investors. Putnam has seen a drain of $22bn so far, while investors have pulled in excess of $7.9bn from Janus, according to recent reports.
Experts have also warned that US fund managers could face an asset loss worth several billion dollars from pension funds across Europe.
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