Janus Henderson assets up on market, currency impacts

Assets under management at Janus Henderson Group increased 6.4% over the quarter and 0.6% for the year ended Sept. 30 to $358.3 billion, despite continued net outflows.

The money manager recorded $2.9 billion in net outflows for the third quarter, compared with $8.2 billion in net outflows for the previous quarter and $3.5 billion in net outflows for the quarter ended Sept. 30, 2019, according to an update Thursday.

Market and foreign exchange impacts were positive over the quarter, adding $24.5 billion to assets under management. That followed $50.5 billion in positive movements for the quarter ended June 30. For the quarter ended Sept. 30, 2019, markets and foreign exchange had a negative impact of $200 million.

Revenue was $568.5 million on a GAAP basis for the third quarter, up 9.7% over the three months and up 6.1% over the year. Net income was $118.9 million, up 15.5% for the quarter and 6.1% for the year.

Janus Henderson's investment strategies showed mixed performance relative to their benchmarks over one, three and five years. The update said 38% of equities AUM — accounting for $188.9 billion in assets as of Sept. 30 — outperformed their benchmark over one year, 53% over three years and 71% over five years. For the firm's $75.1 billion in fixed-income capabilities, 88% of AUM outperformed over one year, 92% over three years and 97% over five years.

Quantitative equities accounted for $40.7 billion of total assets as of Sept. 30, with 64% outperforming the benchmark over one year. Over both three- and five-year periods, just 8% of quantitative equities assets outperformed their benchmarks.

The firm's $43.6 billion in multiasset strategies outperformed 93%, 93% and 95% of the time over one, three and five years, respectively; while for the $10 billion in alternatives strategies, 97% of assets outperformed over one- and three-year periods, and 100% over five years. Overall, 58% of Janus Henderson's assets outperformed their benchmarks over the year ended Sept. 30, 61% over three years and 73% over five years.

"Our third quarter results reflect solid long-term investment performance, improved flows, strong financials and a continuation of returning excess cash to shareholders," Dick Weil, CEO, said in the update. "Importantly, we are making excellent progress toward our goal of building a strong and resilient foundation to support profitable growth. We are encouraged by the flow momentum we are seeing in several areas of the business, the unified culture of the firm, the ongoing efforts to simplify the way we operate our business and the support of new growth initiatives."