Bloomberg News

DENVER - Jim Craig has resigned as chief investment officer of Janus Capital Corp. to manage a new family foundation that will help local people.

Mr. Craig, 44, who was also research chief, had spent 17 years at what has been the fastest-growing mutual fund company the in past two years. He had been designated to succeed chief executive officer Thomas Bailey.

A committee formed last year by Mr. Craig, will oversee Janus' investing process. The members include Mr. Bailey and fund managers Jim Goff, Warren Lammert, Blaine Rollins, Scott Schoelzel, and Helen Young Hayes.

The resignation announcement came a month after Kansas City Southern Industries Inc. spun off Janus' parent company, Stilwell Financial Inc. Janus executives had opposed the spinoff; they wanted independence for the company instead.

"I've spent half my life making money for other people to retire and send their kids to college," Mr. Craig said. "I'm looking forward to using my skill in making money for this new pursuit."

In December, Mr. Craig stepped down as manager of the Janus Fund, the firm's $47 billion flagship, to become research director. The move was aimed at beefing up management after a decade of rapid growth. He joined Janus in 1983 and had managed the fund since 1987, when it had $377 million of assets.

Second-quarter assets under management at Stilwell, which also includes the asset managers Berger LLC and Nelson Money Managers PLC and a stake in DST Systems Inc., totaled to $313 billion - up 94% from a year earlier but down 3.7% from the first quarter, reflecting a drop in U.S. stocks.

Stilwell amassed a record $17.6 billion in new net assets in the second quarter, $17.5 billion of which came from Janus, the best-selling mutual fund manager this year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.