Janus Capital Group, the Denver-based mutual fund manager, said a $16.2 million writedown of debt issued by a structured investment vehicle cut previously reported fourth-quarter profit by 6 cents a share.
The debt, issued by Stanfield Victoria Funding LLC, was bought from Janus money-market funds, the company said Thursday in a filing with the Securities and Exchange Commission.
The write-off reduced profit from continuing operations to 30 cents a share.
Money managers including Janus and Legg Mason Inc. have acquired SIV debt from their money funds to protect investors against losses.
Janus holds $470 million in SIV debt issued by banks, or 3.3 percent of money-market assets, the company said in a separate filing Thursday.
Janus said Jan. 24 that fourth-quarter earnings were reduced by $2 million after it bought the Stanfield Victoria securities from its funds. The company’s additional risk of loss from Stanfield Victoria is $90.3 million.
