Monday’s Headlines: Janus and Pimco diversify their fund offerings

Two mutual fund giants are diversifying their product offering and shaking up their images and the specialties on which they built their business, according to Investment News. Bond giant Pimco is rolling out equity funds, while Janus Capital is building out its fixed-income fund offering, deviating from its reputation as the mainstay of growth investing.

While the changes have been met with skepticism by investors, the moves aim to help the firms buoy themselves through turbulent market cycles.

The firms are focused on diversifying their lineups to help weather the various market cycles, the same as an investor looks to diversify his or her portfolio between a healthy mix of equities and fixed income. At stake is both firms' ability to continue growing regardless of which asset class is in favor, and both are putting significant resources toward making sure that happens, Investment News writes.

 

Other News:

Morgan Stanley, Credit Suisse and Citigroup made some of the largest cuts to compensation for the year. [Bloomberg]

Top Goldman executives get access to previously restricted stock awards, worth a combined $47.7 million. [Reuters]

Llyods CEO Antonio Horta-Osorio is expected to cut the ranks of his top executives from 14 to 10. [Financial Times]

The value of global mergers and acquisitions announced so far this year has been at the lowest level since 2003. [Financial Times]

RBS has almost finalized a deal to sell its Hoare Govett corporate broker business to Jefferies. [Financial Times]

Citi CEO Richard Parsons will decide by early March whether he will leave his post. [WSJ]

Citi’s investment bankers are seeing bonuses fall by an average of 30 percent. [Businessweek]

RBS CEO Stephen Hester turned down his bonus after facing pressure from British politicians. [DealBook]

Deutsche is preparing to start a fund to buy illiquid hedge fund holdings that have failed to recover. [Financial Times]

The White House aims to triple bank incentives under the Home Affordable Modification Program. [Bloomberg]

Ivy League schools hike prices most in six years. [Investment News]