Markets drive asset gains for DWS, Janus Henderson

Rising markets helped bolster assets under management at DWS Group and Janus Henderson Group in the second quarter, after a difficult first quarter for money managers amid the coronavirus pandemic.

DWS assets grew 6.4% over the quarter ended June 30 to €745 billion ($838 billion) and grew 3.6% for the year, according to a financial update Wednesday.

Market moves added €43 billion to assets, compared with a €66 billion loss in the three months ended March 31. For the second quarter 2019, market impacts added €15 billion to assets.

Foreign exchange moves subtracted €7 billion from assets, compared with a €5 billion addition for the first quarter and a €4.6 billion loss in the second quarter 2019.

Total net inflows were €6.2 billion for the first half of 2020, compared with €6.7 billion for the first half of 2019. In the second quarter, net inflows totaled €8.7 billion, compared with net outflows of €2.5 billion for the first quarter. Net inflows totaled €4.2 billion for the second quarter of 2019.

Institutional assets under management grew 4.4% in the quarter and 6% for the year to €426 billion.

Institutional net inflows were €3.7 billion for the quarter vs. €2.1 billion in net outflows for the previous quarter. The second quarter of 2019 recorded net inflows of €3.3 billion.

Revenue for the six months ended June 30 fell 6.1% year-on-year, to €1.1 billion. Net income grew 13.6% over the period to €243 million.

For the quarter, revenues grew 5.2% over the quarter but fell 9.4% year-on-year to €551 million. Net income fell 7.4% in the quarter and was flat vs. the second quarter of 2019 at €112 million.

Second-quarter net inflows were primarily driven by passive and cash strategies, while active ex-cash "suffered from redemptions by a very few institutional fixed-income investors," the update said.

For Janus Henderson, market and foreign-exchange moves added $50.5 billion to assets under management vs. a $64 billion loss in the first quarter. Markets and FX added $12.3 billion in the second quarter of 2019, according to a financial update Wednesday.

Assets under management grew 14.4% over the three months but fell 6.4% over the year ended June 30 to $336.7 billion.

Institutional assets grew 7.6% in the quarter but fell 18.4% over the year to $109.5 billion.

Total net outflows were $8.2 billion in the second quarter, $12.2 billion in the first quarter and $9.8 billion in the second quarter of 2019. Institutional net flows were not available.

Half-year adjusted revenue, taking a one-off transaction into account, grew 0.5% year-on-year to $856 million. Adjusted revenue fell 6.8% for the quarter and 4.8% year-on-year to $413 million.

Adjusted net income for the first half grew 3.9% to $239 million vs. the six months ended June 30, 2019. Adjusted net income grew 12.4% vs. the first quarter and grew 5.8% vs. the second quarter of 2019 to $127 million.

Details on the transaction were not available.

In a statement accompanying the update, CEO Dick Weil highlighted institutional net outflows, though further details were not available.

"Despite these institutional outflows, we continue to have a strong global pipeline across a diverse set of clients and strategies," he said. "And we remain confident in our ability to convert those opportunities into net flows in the quarters to come."