Janus Capital Group reported rising profits and revenues in the quarter ended Sept. 30, but net outflows continued another quarter.
The hiring of William H. Gross in the last days of the quarter wasn't able to turn the tables for the money management firm, which has not experienced a quarter of net inflows since 2007.
Janus reported assets under management of $174.4 billion as of Sept. 30, down 1.9% from three months earlier but up 4.6% from a year earlier.
Janus reported long-term net outflows of $2.1 billion and net market depreciation of $1.2 billion. Fixed income saw net inflows of $300 million in the quarter, but fundamental equity and mathematical equity saw long-term net outflows of $2.1 billion and $300 million, respectively, according to the firm's third-quarter earnings release.
Net income of $40.9 million was up 12.7% from the prior quarter and up 25.5% from the year-earlier quarter, while revenue of $237 million was up 2.5% from the previous quarter and up 8.9% from a year earlier.
The announcement that Mr. Gross was leaving PIMCO and joining Janus occurred on Sept. 26, and equity analysts who follow Janus have predicted inflows of up to $45 billion to fixed-income products over the next two years that the star portfolio manager will manage.
Janus CEO Richard Weil said in a conference call with analysts Thursday that he expects Mr. Gross' hiring will result in an uptick in AUM over coming months affecting not just the firm's fixed-income group but the entire Janus organization.
But Mr. Weil said while Mr. Gross' addition will attract clients as the firm expands its fixed-income unit, the hiring did not have an effect on third-quarter AUM results.
So, far it has been announced that Mr. Gross will be the manager of the Janus' Unconstrained Bond Fund.
But Mr. Weil said Thursday he expects Mr. Gross will work in conjunction with the firm's recent purchase of VelocityShares, an ETF business
“With Bill's arrival and the acquisition of VelocityShares, we have an opportunity to develop future products in the exchange-traded product space,” Mr. Weil said.