Janus is making quiet moves to take the volatility out of its funds, but the changes may be coming too late to keep all of its current business. This week the WM Group of funds, the Seattle-based fund unit of Washington Mutual, filed paperwork with the SEC revealing that the unit is ending its exclusive subadvisory agreement with Janus for its Growth Fund.

Janus acts as subadvisor to the WM Growth fund and the similar annuity portfolio. The mandate is worth $780 million in assets. The filing reveals that though Janus will retain a portion of the fund it will be one of just three subadvisors in the future.

The fund's two additional subadvisors will be Columbia Management and OppenheimerFunds if the change is approved by shareholders at a February 1 meeting.

Though WM officials say that performance is not a reason for the change, the SEC filing tells shareholders something different. It recommends the change by suggesting that adding subadvisors with different investment process will reduce the portfolio's volatility.

Another reason for the change may be economic. Janus earned 46 basis points as subadvisor to the fund but the new managers will earn a lower fee.  

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