Janus Henderson’s AUM up 6% in Q2

Assets under management at Janus Henderson Group rose in the second quarter, the firm reported Thursday.

The 6% increase from the previous quarter's 0.9% growth reflected positive markets that were partially offset by net outflows of $2.5 billion, it said.

Second quarter 2021 operating income was $225 million while adjusted operating income was $269.3 million, a 95% increase compared to the same period a year ago, related to one-time, acquisition and transaction-related costs.

Roughly two-thirds of the $427.6 billion assets under management outperformed their relevant benchmarks on a three-year and five-year basis in the second quarter.

Janus Henderson Group CEO Dick Weil said in the news release that the "extremely strong" second quarter financial results reflected growth in assets "due to positive markets and good investment performance, which translated into significant performance fees, adjusted operating income and EPS."

Of $734.1 million in total revenue for the quarter, $544.1 million came from management fees and $77.4 million from performance fees.

For the same quarter in 2020, total revenue was $518 million, with $407.7 million from management fees and $17.2 million from performance fees.

The strong balance sheet and cash flow allowed the firm to return excess cash to shareholders through a $200 million stock buyback announced Thursday, pending appointment of a broker.

Mr. Weil said that winning high-quality new business is driving the firm's net management-fee rate higher, even as the industry experiences fee compression.