Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: Unethical Behavior Mutual Fund - 1,447 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

... , it is absolutely certain that the SEC frowns on this kind of activity and that market-timing harms long-term investors. Therefore, even if Janus did not break the law, they still violated the ethical and fiduciary duty owed to existing shareholders. Once news of these activities and Spitzer's complaint hit the press, Janus Capital shares tumbled. Wall Street had big concerns about the fund companies named in Spitzer's report, and for good reason. The mutual fund industry is built on trust, and in light of the current corporate governance concerns, any misstep by one of these companies could lead to disaster. In fact, Janus is expected to lose $ 7 billion in assets because of wary investors pulling money from the funds (Hayashi).

Since Janus earns. 65 % on assets invested, this comes to close to $ 50 million in lost revenue each year. Therefore, this net outflow will probably cost Janus Capital shareholders 5 % of net profit going forward each year. Investor's in Janus Capital stock were further harmed by the stock's reaction to the scandals. Prior to the announcement of the Spitzer report on September 4, Janus Capital was trading close to $ 18 per share. Shares eventually bottomed out in October closer to $ 13 per share (See Graph 2). Janus Capital lost over 25 % of its value based largely on the news that the fund company had violated their fiduciary duty to investors.

In addition, the actions of Janus executives and Canary Capital are estimated to have cost fund shareholders $ 31. 5 million in lost returns and transaction fees (Washington Times). However, it should be noted that Janus plans to repay these lost returns and transaction fees to fund shareholders. But who will repay owners of Janus Capital stock who saw the company lose nearly $ 1 billion in market capitalization? There are two ways to handle a crisis: proactively and relatively. Prior to their mutual fund scandals Janus has always taken more of a reactive approach. In 1997, fund manager Ron Speaker was accused by the SEC with usurping an investment opportunity from shareholders.

In that action, Speaker settled the matter with the SEC and was place on 90 -day suspension from managing his bond fund by Janus executives. Perhaps Janus could have sent a clearer message to employees that unethical behavior would not be tolerated in the future. This was a clear case where Janus reacted to a situation without taking measures to ensure there would be no further improprieties. With regards to the Canary Capital matter, Janus ignored many of the early warning signs, which indicated that their actions might not be good for the company. In the spring of 2003, a Janus employee sent numerous emails to then chief executive of Janus International, Richard Garland. The employee wrote "We need to keep our funds clean." Garland responded, "I have no interest in building a business around market-timers, but at the same time I do not want to turn away $ 10 -$ 20 million!" Garland later gave the approval for additional market-timing capacity (Milstead).

Since the disclosure of Janus' practices, they have begun to initiate a more proactive approach to crisis management, and are now more focused on crisis prevention. The parties responsible for allowing these questionable trades have been asked to resign since the Spitzer report and are no longer working for Janus (Janus. com). By removing the responsible parties Janus is sending an important message to employees that further improprieties will not be tolerated. We believe this is an important step to strengthening investor confidence. In addition, in April of 2004 Janus will launch a new national campaign in hopes to "emphasize a new, wider range of investment choices. " After investors withdrew $ 4 billion in the first two months of 2004 alone, Janus now wants investors to know that they are committed to improving performance.

Janus Chief Marketing Officer Robin Beery explains that the new advertisements are "an important step in demonstrating our commitment to delivering long-term results for investors and earning their confidence in everything we do (Forgrieve 3 C). " In conclusion, Janus acted irresponsibly towards its long-term investors, employees, the mutual fund industry, and the capital markets in general. Each of these groups shared one thing in common; they put their trust in a company that they thought was ethical. Their confidence in Janus has been shaken due to the actions of a few morally corrupt internal representatives who put profits above people. This may be a common current business practices, but the frequency of unethical behavior does not make it acceptable.

Many lives have been irrevocably altered or destroyed due to the lack of long-term focus by companies such as Janus. But how can a company decide unethical actions? One writer puts it like this, "There is a simple test: Would the other party mind? Chances are an investor would mind the dilutive effect of market-timing trades, which one expert has estimated could cost up to 2 percent of assets a year -- or $ 2, 000 on a $ 100, 000 investment (Weinreich). " The fact that investors withdrew over 4 billion dollars from Janus within the first six months of these allegations is evidence that investors do mind.

We think it is admirable that Janus is not refuting these allegations. This display of integrity and responsibility will help to ensure the long-term fiscal solvency of the company. In addition, Janus needs to realize that profits can be made ethically in the financial markets without malfeasance. We think that Janus must also adhere to its prospectus and internal regulations and provide a forum for employees who wish to voice their concerns regarding unethical behavior.

Employees must feel safe when reporting questionable activities and even be rewarded for putting the long-term health of the company first. In addition, Janus must be willing to hold employees responsible for their actions, which it appears they have begun to do. We also believe that Janus must try and prevent unethical behavior before it happens by providing training and counseling to its employees. It is our opinion that unethical conduct is a product of environment and the corporate culture at Janus must be adjusted so that employees put the interest of stakeholders ahead of short-term profit goals.

Finally, Janus executives must be consistent and committed to their policies and corporate beliefs. Once these changes are implemented, Janus stakeholders will regain confidence that the company is looking out for their long-term interests. Nevertheless, only when the leadership at Janus begins to stress ethical behavior will the employees of Janus follow suit. References Janus. com "Company Overview. " Janus Capital Group. 2004.

Retrieved from: < web on 03 / 28 / 04 Janus. com "News and Articles. " Janus Capital Group. 2004 Retrieved from: < web id = janus Server& articleId 8 ae 0 c 1 f 75 d 4982 b 7 each 39 1 a 221 d 25 > on 04 / 03 / 04 Strategic Insight. "Executive Review. " Growth Fund of America Retrieved from: < web reports / fedex executive review. pdf> on 04 / 01 / 04 SNL Financial. "Spitzer Probe Sends Janus Stock Spiraling. " Securities and Investments Weekly 8 Sept. 2004 Retrieved from: < web svc / archive / 20030908 si. asp> on 04 / 03 / 04 Securities Lawyer's Desk book. "Rules and Regulations Promulgated Under the Investment Company Act of 1940. " University of Cincinnati School of Law Rule 22 c- 1 Retrieved from: < web on 04 / 1 / 04 Janus Mercury Fund Prospectus. 27 Feb. 2004 Janus. com Website Retrieved from: web on 04 / 28 / 04 Hale and Door, "Investment Management Special Report. " Hale and Door Corporate Website. 12 Sept 2004 Retrieved from: < web detail. aspx?

ID# 61 & Type U 35 > on 3 / 28 / 04 Hayashi, Ya. "Analysts Downgrade Janus. " The Daily Camera. com 9 Mar. 2004 Retrieved from: < web intl business / article / 0, 1713, BDC 2464 2714155, 00. html> on 4 / 2 / 2004 Washington Times. com "Janus Capital Promises Changes, Payback. " United Press International 19 Dec. 2003 Retrieved from: < web on 4 / 1 / 2004 Milstead, David. "Janus CEO Out?" Rocky Mountain News 26 Mar. 2004 Retrieved from: web 4 2760121, 00. html on 04 / 07 / 04 Forgrieve, Janet. "Janus Ready to Run with Ads Touting Expanded Investment Choices. " Rocky Mountain News. 3 Apr. 2004: 3 C Weinreich, Gil "How to Handle the Scandal. " Tech Central Station 21 Mar. 2004 Retrieved from: < web on 04 / 09 / 04


Free research essays on topics related to: long term, unethical behavior, washington times, mutual fund, important step

Research essay sample on Unethical Behavior Mutual Fund

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com