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Money Management

Janus Henderson assets rise 2.9% in quarter despite outflows

Janus Henderson Group reported $370.8 billion in assets under management as of Dec. 31, up 2.9% from three months earlier and up 16.2% for the year, despite net outflows.

Janus Group and Henderson Global Investors merged May 31, 2017. The firm's earnings update Tuesday said figures for the calendar years 2016 and 2017 were calculated pro forma as though the merger had occurred at the beginning of the relevant periods.

Net outflows totaled $2.9 billion for the quarter and $10.2 billion for all of 2017. That compared with net inflows of $700 million for the three months ended Sept. 30, $2.1 billion in net outflows for the three months ended Dec. 31, 2016, and net outflows of $8.4 billion for 2016.

However, market and foreign-exchange impacts bolstered assets under management by $62.5 billion in 2017. For the three months ended Dec. 31, market and FX effects added $13.2 billion to AUM, compared to $14.9 billion in the three months ended Sept. 30 and a loss of $4.9 billion for the three months ended Dec. 31, 2016.

Janus Henderson recorded net outflows across almost all strategies in the quarter ended Dec. 31, but market and FX impacts still bolstered assets under management for these individual strategies. Equities net outflows totaled $700 million, with assets under management growing 4.1% in the quarter to $189.7 billion. Fixed-income assets grew 0.9% to $80.1 billion, and net inflows totaled $200 million for the quarter.

Quantitative equity strategies grew 1.8% to $49.9 billion despite net outflows of $1.6 billion. Multiasset strategies grew 4.6% to $31.6 billion, with net outflows of $200 million; and alternatives strategies recorded net outflows of $600 million and assets under management fell 0.5% to $19.5 billion.

"Investment performance is strong, which is a testament to the quality of our investment teams and an endorsement of our commitment to active management. Despite outflows in 2017, we continue to see strong levels of engagement and support from our clients globally and remain encouraged by developing relationships," said Richard Weil and Andrew Formica, co-CEOs of the firm, in a joint statement accompanying the update.

Revenue totaled $592 million for the quarter, compared to $537.4 million in the quarter ended Sept. 30 and $243.4 million in the year-earlier quarter. Net income, meanwhile, was $471.7 million in the quarter ended Dec. 31, up from $99.5 million the previous quarter and $37.8 million in the year-over-year quarter.

The fourth quarter net income gain was attributed to a one-time benefit of $340.7 million related to U.S. tax reform.