Janus assets rise 4.4% in quarter despite continued outflows

Janus

Janus Capital Group reported $163.8 billion in total assets under management as of March 31, up 4.4% from the previous quarter but down a slight 0.1% from a year earlier, according to the money manager's first-quarter earnings statement released Tuesday.

Net market appreciation of $11 billion accounted for the quarter's asset gain, while net outflows totaled $3.9 billion — the 15th straight quarter of redemptions at Janus. Net outflows in the fourth quarter were $3.6 billion.

INTECH, its quantitative equity division, saw net outflows of $2.4 billion, powered by $3.2 billion in redemptions, while net outflows from fundamental equity totaled $1.8 billion. Fixed income saw net inflows of $300 million.

Revenue for the latest quarter was $214.2 million, down 1.1% from the fourth quarter and 1.9% below a year earlier. Janus said in the statement that the decline in the latest quarter was because of low private account fees that were only partially offset by increases in higher investment management fee revenue.

Net income was $28 million in the first quarter, down 10.2% from the previous quarter but 23.8% higher than the prior year.

Daniel Fannon, analyst for Jefferies & Co. wrote in a note to clients Tuesday that Janus' net outflows were greater than Jefferies' $2 billion estimate, although growth and core equity flows improved in the latest quarter, to $100 million in net inflows compared with $1.1 billion in outflows in the fourth quarter.