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Money Management

Janus Henderson AUM rises 4.5% in quarter, records net inflows

Co-CEOs Richard Weil, center left, and Andrew Formica, center, of Janus Henderson Group ring the opening bell at the New York Stock Exchange in June.

Janus Henderson Group reported $360.5 billion in assets under management as of Sept. 30, up 4.5% from June 30 and up 10.5% from a year earlier.

The firm said in its earnings statement Thursday that comparative figures for the three months ended June 30 and the quarter ended Sept. 30, 2016, were pro forma since the two firms did not complete their merger until May 30 this year.

The firm recorded net inflows of $700 million in the third quarter, compared with $1 billion in net outflows for the three months ended June 30 and $3.2 billion in net outflows across the firms in the quarter ended Sept. 30, 2016.

Market movements and foreign exchange added $14.9 billion to assets under management, compared with $15.8 billion for the previous quarter and $11.5 billion for the three months ended Sept. 30, 2016.

All asset classes recorded increases in AUM for the quarter, with equities growing 5.1% to $182.3 billion. Net inflows were $600 million for the quarter. Fixed income recorded $400 million in net inflows, helping to bolster AUM 2.8% to $79.4 billion; and alternatives strategies attracted $500 million in net inflows, with assets under management growing 6.5% to $19.6 billion.

Quantitative equities strategies recorded net outflows of $500 million, although assets under management still grew 5.4% to $49 billion. Multiasset strategies had $300 million in net outflows, while AUM grew 2.7% to $30.2 billion.

INTECH, Janus Henderson's quantitative equity group, reported $500 million in net outflows with AUM rising 5.4% to $49 billion.

The firm also said it had expanded a long-standing strategic partnership with BNP Paribas Securities Services, which sees the custodian assume responsibility for the majority of Janus Henderson's back-office, middle-office and custody functions in the U.S. The move "will provide the firm with a consistent global platform to support growth," said co-CEOs Richard Weil and Andrew Formica in a statement accompanying the update.

"Our confidence in our ability to deliver cost synergies has enabled us to increase our target to at least $125 million on an annual run rate basis. Only five months have passed since the formation of Janus Henderson, yet pleasingly we are seeing green shoots in the cross-revenue opportunities, brought about by our global distribution footprint, expanded product set and collaborative culture," added the statement.

Revenue totaled $537.4 million for the quarter, up from $384.8 million in the previous quarter and $245 million in the quarter ended Sept. 30, 2016.

Net income was $99.5 million for the third quarter, compared with $41.7 million for the second quarter and $53.4 million for the three months ended Sept. 30, 2016.