Weil, 49, said serving existing clients was “exponentially more important” than adding products. Even so, he said, “We’ve elected to make a huge bet on liquid alternatives by bringing in this really world-class team and making a commitment to filling out this area.”
Janus faces two hurdles in its latest attempt to diversify, according to Geoff Bobroff, a fund consultant in East Greenwich, Rhode Island. It lacks the track record in multiasset investing that firms such as Invesco and BlackRock carry, and it’s joining the trend late.
Many financial advisers, he said, will want to see two or three years of history before they use a fund, and by then, the draw of conservative asset allocation may have faded if equity markets continue their recent advance. Invesco’s Balanced Risk Fund returned 1.3 percent this year through Feb. 28 as the S&P 500 rose 6.6 percent.
“Part of the problem with these products is that they work well in saw-toothed markets,” Bobroff said, referring to elevated volatility. “If we end up in a bull market, they will severely underperform.”