NEW YORK (CNNfn) - Janus announced Wednesday that it closed its $50 billion flagship Janus Fund to new investors and filed a registration statement for a new duplicate, Janus Fund 2.|
Current shareholders, however, can continue to buy shares and reinvest dividends or capital gains distributions. The closing took effect on Tuesday.
"If you're a current shareholder, you will not be affected. You can continue (to buy shares) just as you always have," said Janus spokeswoman Shelly Grice. For example, 401(k) investors who already own the fund can add to their holdings, she said.
"The reason that Blaine Rollins, the fund manager, did decide to close the fund is so he could continue to be selective in his stock picking," Grice said.
Janus Fund (JANSX: Research, Estimates), with $50.9 billion in net assets, is up 5.8 percent year to date as of Sept. 11. But many Janus funds have struggled this year, pushing the company to close several in recent months, according to Morningstar.
"Janus has closed a number of its funds when it felt that assets were getting a little too unwieldy and the real question is, since Janus is launching another fund that may be very similar to the original fund, is this particular closing really meaningful," said Morningstar analyst, Scott Cooley. "If Janus launches another fund that buys exactly the same stocks then what was the point of closing the original Janus Fund?"
Janus 2 Fund is scheduled to open on Dec. 29, and will be managed by John Schreiber.