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Money Management

Janus Henderson’s AUM flat for quarter; revenue, net income fall

Janus Henderson Group reported $371.9 billion in assets under management as of March 31, up 0.3% over the quarter and up 12.4% from a year earlier, despite net outflows.

The money management firm, the result of a merger between Janus Group and Henderson Global Investors last year, said in a financial update Wednesday that net outflows totaled $2.7 billion for the quarter, compared to $2.9 billion of net outflows for the previous quarter and net outflows of $7 billion for the first quarter of 2017. All figures related to March 31, 2017, were calculated on a pro forma basis since they precede the completion of the merger.

Despite net outflows, market and foreign exchange effects helped to bolster assets under management, contributing $3.8 billion for the first quarter. That compared with $13.2 billion in gains for the three months ended Dec. 31 and $18.6 billion for the quarter ended March 31, 2017.

Equities assets under management grew 0.5% for the quarter to $190.7 billion, despite net outflows of $1.8 billion. Fixed-income net outflows totaled $300 million, with assets under management falling 0.1% to $80 billion. Quantitative equity strategies had $300 million in net inflows as assets increased 1% to $50.4 billion. Multiasset net inflows totaled $100 million, with assets growing 0.6% to $31.8 billion; and alternatives assets under management fell 2.6% to $19 billion, with net outflows of $1 billion.

"Against the backdrop of elevated market volatility, we are pleased to have maintained robust investment performance through the quarter," said Andrew Formica and Dick Weil, co-CEOs, in a statement accompanying the update. "As we approach our first anniversary as Janus Henderson, we are pleased with the pace of integration and that we have already exceeded our year-one target of $90 million in run rate net cost synergies. We remain disciplined in our financial investment and focus on sustainable growth, and are delighted to announce an increase in the quarterly dividend, underlining the board's confidence in the future cash flow generating capabilities of our business."

Revenue for the three months ended March 31 totaled $587.7 million, down 5.5% vs. the quarter ended Dec. 31, but up 14.5% from the year-over-year quarter. Net income totaled $165.2 million for the first quarter, down from $471.7 million the prior quarter but up from $75.8 billion for the year-earlier quarter.