Janus Capital's Fund Performance "Remains under Significant Pressure," J.P. Morgan Reports

J.P. Morgan reports that, according to Bloomberg, Bank of America Merrill Lynch has removed Janus (NYSE: JNS) Twenty and Forty funds from a model portfolio, “thereby implying the funds have also been removed from Merrill's SMA platform.”

“This follows the removal of 10 funds from the Schwab Select List over the last year and the removal of 3 funds from the Fidelity Fund Picks list in the last quarter,” J.P. Morgan writes. “We reaffirm our Underweight rating and see Janus as an earnings and a sales disappointment story for the foreseeable future.

“Janus' fund performance remains under significant pressure. Performance fees rebates remain at peak levels and are on pace to cost Janus $15 million per quarter in 2012. Seven of Janus' 10 largest funds are bottom quartile.”

Janus Capital closed Tuesday at $40.23.