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Fund Times

Gibson Smith to Resign From Janus

His departure is a setback for the firm's fundamental fixed-income team, so funds under his management are now Under Review.


We have placed our Morningstar Analyst Ratings for several Janus fixed-income and allocation funds under review following the Dec. 2, 2015, announcement that Gibson Smith, Janus' chief investment officer of fundamental fixed income, plans to resign from the firm effective March 31, 2016. This departure is a significant setback to Janus' fundamental fixed-income platform, which Smith effectively built during his tenure as CIO while generating strong long-term results.

Janus' fundamental fixed-income team will reorganize following Smith's departure early next year. Smith's longtime comanager Darrell Watters will assume the title of head of U.S. domestic fundamental fixed income, while Chris Diaz, who joined Janus in 2011, will become head of global fundamental fixed income. Keeping Watters, who joined Janus in 1993, on board is especially crucial to maintaining continuity to the team's process, as he has comanaged portfolios with Smith since 2007 and is particularly well-versed in bottom-up security selection. Both Watters and Diaz will report to Enrique Chang, who joined Janus in 2013 to head up the firm's equity investing efforts and will take on the newly created title of head of investments.

Sumit Desai, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.