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Money Management

Janus Henderson’s AUM falls 13.1% for quarter, drops 11.4% for year

Richard M. Weil

Janus Henderson Group's assets under management dropped 13.1% for the quarter and fell 11.4% over the year ended Dec. 31, to $328.5 billion, reflecting market conditions and net outflows.

A financial update Tuesday said the money manager recorded $8.4 billion in net outflows in the fourth quarter, compared with $4.3 billion in net outflows in the third quarter and $2.9 million in net outflows in the fourth quarter of 2017.

The negative impact of market and foreign-exchange moves caused assets to decline $41.2 billion.

By asset class, equity AUM fell 15.8% for the quarter to $167.6 billion, and fell 11.6% over the year ended Dec. 31. Fixed-income AUM fell 2.8% for the three months and dropped 9.6% for the 12 months ended Dec. 31, to $72.4 billion. Quantitative equity assets dropped 16% for the quarter and 11.2% for the year to $44.3 billion. Multiasset strategy AUM totaled $30.2 billion as of Dec. 31, down 12.7% from Sept. 30 and down 4.4% from Dec. 31, 2017. Alternatives assets fell 17% during the quarter and declined 28% over the year to $14 billion.

"Against a backdrop of volatile markets and ongoing change in the asset management sector, 2018 was a year of further transformation for our firm," CEO Richard M. Weil said in a statement accompanying the update. "On the positive side, we made significant progress driving towards merger completion, transforming from two separate legacy companies into Janus Henderson. I am very pleased that we were able to complete our integration efforts and realize (savings) of $125 million well ahead of plan in 2018."

Mr. Weil added in the statement: "Despite this progress and our continued success taking market share in our largest geography — U.S. active equity mutual funds — we faced the same global market challenges and headwinds as the wider industry, combined with an aggregate $18 billion outflow, which was disappointing."

Revenue totaled $545.1 million for the quarter, down 6.2% from the previous quarter and down 12% from the year-earlier quarter.

Net income was $106.8 million in the fourth quarter, down 4.5% vs. the third quarter and down 77% compared with the fourth quarter of 2017.