Products November 28, 2007

Janus Introduces Two New Adviser Funds

Janus Capital Group Inc. has launched two new funds to be sold through third-party financial institutions and intermediaries: the Janus Adviser Global Research Fund and Janus Adviser Global Real Estate Fund.
Reported by

The Janus Adviser Global Research Fund (JRGSX) is a sector-neutral and highly diversified strategy that seeks to outperform the MSCI World Growth Index by “leveraging the most compelling ideas uncovered by Janus’ in-depth, fundamental research process,’ the firm said in an announcement. Janus expects the fund to have between 100 and 150 holdings and normally invest at least 40% of its net assets in non-U.S. securities. The fund will be managed by Janus’ team of 37 equity analysts and led by Jim Goff, Janus’ Director of Research.

The Janus Adviser Global Real Estate Fund (JERSX) seeks total return through long-term capital appreciation and current income by investing in global real estate securities. A portion of the fund may be invested in non-U.S. securities in real estate markets with high barriers to entry and attractive growth opportunities, the firm explained. Patrick Brophy, supported by Janus’ equity research team, will manage the fund.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

At the end of September 2007, Janus managed approximately $208 billion in assets for more than four million shareholders, clients and institutions around the world.

Compliance November 28, 2007

IRS Offers Model 403(b) Plan Language for Public Schools

The IRS has issued model plan language that may be used by public schools either to adopt a written plan to reflect the requirements of § 403(b) or to amend their § 403(b) plans to reflect the requirements of § 403(b).
Reported by

The 2007 final 403(b) regulations included the requirement that § 403(b) contracts must be maintained pursuant to a written plan (See Final 403(b) Regulations Released).

The IRS pointed out the preamble to the regulations indicated that, while § 403(b) contracts that are subject to the Employee Retirement Income Security Act (ERISA) are already maintained pursuant to written plans, there may be a potential cost associated with satisfying the written plan requirement for those employers that do not have existing plan documents, such as public schools. The new revenue procedure is intended to address this concern by providing model plan language that may be used for this purpose by public schools.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Any public school employer may comply with the written plan requirements of the 2007 regulations by adopting the model provision(s) contained in the Appendix to the revenue procedure. The model language has been prepared to take into account the general requirement that a § 403(b) plan include all the material terms and conditions for benefits under the plan.

If a public school employer amends its plan language to include any portion of the model language, the form of the written plan will be treated as meeting the requirements of § 403(b), to the extent covered by the model plan language that is adopted, according to the IRS.

To the extent a public school employer’s § 403(b) plan does not include the model plan language or an amendment that is substantially similar in all respects, a public school that requests a private letter ruling from the IRS with respect to the qualification of its § 403(b) written plan must clearly highlight and describe in the written request how its plan provisions differ from the model language.

An eligible employer that is not a public school may use the provisions of the Appendix as sample language to comply with one or more of the requirements imposed by the 2007 regulations issued under § 403(b).

A § 403(b) plan will be treated as having been amended in a timely fashion to reflect a requirement of the 2007 regulations if an amendment that satisfies that requirement is adopted no later than the first day of the first taxable year beginning after December 31, 2008, the amendment is effective as of the applicable effective date of the requirement under the 2007 regulations, and the written plan is operated as if that amendment is in effect.

The revenue procedure also provides guidance relating to the application of § 403(b) to certain contracts issued before 2009.

Revenue Procedure 2007-71 is here.

«