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Janus Henderson posts $32.1bn outflows

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Janus Henderson Group’s revenue fell by 10 per cent year-on-year during the first half of 2019, while the company saw net outflows of $32.1 billion (US$22 billion).

The group saw its revenue drop in the first half on an adjusted basis, to $1.2 billion. Adjusted revenue for the second quarter came to $634.3 million, which was an improvement from the Q1 but down by 10 per cent from the prior corresponding period (pcp).  

Janus Henderson’s AUM during Q2 came to $525.4 billion, up 1 per cent compared to the prior quarter but slipping by 3 per cent on Q2 2018. The company experienced $14.3 billion in net outflows during the quarter.

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The asset manager cited lower management fee revenues for the decline, with lower average AUM in the first half in addition to a lowering in performance fees. 

Management fee revenue came to $651.9 million for the half, down by 10 per cent from the pcp, while revenue performance fees plunged by 75 per cent to $5.1 million. 

Janus Henderson’s slumped revenue as well as one-off acquisition and transaction-related costs drove down its income. Operating income came to $431.4 million on an adjust basis for the first half, down by 22 per cent from the prior year. 

Dick Weil, chief executive of Janus Henderson said the net flow result “remains challenging.”

“Overall, we are seeing improving trends across many areas of our business, but the current concentration of outflows is masking much of this progress,” Mr Weil said. 

“We remain committed to the strategic agenda we have laid out, which is to provide dependable excellence and deliver on our promises to our clients, shareholders and employees.”

The company issued diluted earnings per share of $1.70 (US$1.17) for the half, a fall of 20 per cent from the year before.

Following the release of the results, Janus Henderson’s shares on the ASX diminished by 10 per cent to $28.83 on Thursday morning. At 2pm, they had slipped further to $28.36.

 

Janus Henderson posts $32.1bn outflows
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

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