Weak equity markets are generally driving flows out of equities. However, within equities, there are some managers “that are pulling in more flows than they ever have,” said Craig Siegenthaler, equity analyst at Credit Suisse Group, New York.
Janus Capital Group, Denver, reported $191.8 billion in assets, up 2% from the first quarter, reflecting its highest quarterly inflows in eight years.
“Janus has had very good performance and because of that, they are starting to get better sales traction on their products,” said Roger Smith, an analyst who covers asset management firms at Fox-Pitt Kelton Cochran Caronia Waller LLC, a New York investment bank.
Based on returns for the year ended June 30, 80% of Janus-managed equity mutual funds ranked in the top half of their respective peer groups in Lipper Inc.'s rankings. Roughly 85% of Janus funds placed in the top half for the three years and 85% in the top half for the five-year period.
In the second quarter, Janus posted net new flows of $5 billion, of which $4.8 billion came from Janus-managed strategies, and the rest from its quantitative institutional subsidiary, Enhanced Investment Technologies LLC, Palm Beach Gardens, Fla.
Waddell & Reed Financial Inc., Overland Park, Kan., posted the biggest percentage gain, with assets swelling 8.1% in the second quarter to $70.1 billion; BlackRock Inc., New York, reported a 5% gain for the quarter, with assets of $1.4 trillion; and T. Rowe Price Group Inc., Baltimore, clocked in a 2% gain with assets of $387.7 billion.
Prudential Financial Inc., Newark, N.J., reported an increase in assets of 1.2%, bringing total assets under management to $638 billion. Bank of New York Mellon Asset Management, a holding company for 13 asset management firms, reported $1.1 trillion in assets under management, up 1%. Calamos Asset Management Inc., Naperville, Ill., a growth-stock and convertible bond manager, saw a similar gain and reported $41.2 billion in total assets.
Waddell & Reed's ability to deliver strong relative investment returns in a turbulent market helped the firm attract assets, said Chief Executive Officer Hank Herrmann in a news release. The firm's largest strategy, the $4.6 billion Large Cap Growth portfolio, returned 5.9% in the year ended June 30 vs. -6% for the Russell 1000 Growth index, the strategy's benchmark, according to data by eVestment Alliance, Marietta, Ga.