Tucked away in the folds of the "I'm Sorry" card that Janus Capital Group
A full $100 million of that will be evenly split between its mutual fund shareholders and civil penalties. The balance -- a sizable $125 million -- is earmarked for fee reductions over the next five years.
I know what you're thinking. It is odd that the company's future investors stand to reap a larger reward than those who were actually wronged by the company's misdeeds. Sometimes, a settlement is just a flimsy cover for marketing.
It's like repulsing your party guests by jamming your grubby fingers into the celebratory cake only to win them back by rolling out a pinata. That's what this is, really. It's Janus reducing its fees -- a public relations move that would have been warranted anyway if the company wanted to shut the valve of redemptions -- to reward the loyalty of fund owners willing to turn the other cheek. In that regard, it's fitting that the company's mythological namesake has two faces.
Janus will also pay up $1.2 million to the state of Colorado for the sake of investor education. Hey, that sounds like a whole lot of Motley Fool Champion Funds subscriptions.
Other scandalized companies like Alliance Capital
Janus also reported its quarterly earnings last night. Before a series of charges, the company grew its earnings from $0.17 to $0.19 a share. That's pretty paltry when one considers that rival T. Rowe Price
Still, I wouldn't write the company off. Its funds have exemplary track records in bull markets. Selling the public on a newer, nicer Janus is a tall task, but it's awfully tempting to make your way toward that swinging pinata. Just be sure to know what you're stepping into.
Longtime Fool contributor Rick Munarriz invests in no-load mutual funds though his core holdings will probably always be individual stocks. He does not own shares in any company mentioned in this story.