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Client redemptions, market drag Janus Henderson assets

— 1 minute read

The COVID-19 market downturn and net outflows saw Janus Henderson close its first quarter of the year with a fifth less in assets under management.

Janus Henderson closed March on US$294.4 billion ($454.6 billion) in assets under management (AUM), down 21 per cent compared to the prior quarter.

Negative market movements during the downturn had impacted the group’s AUM the most, decreasing it by US$64 million ($98.8 million).

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Janus Henderson saw US$33.6 million ($51.8 million) in redemptions during the quarter, contributing to net outflows of US$12.2 million ($18.8 million).

Chair Richard Gillingwater however remained optimistic in his letter to shareholders.

“Although we are disappointed by the decline in AUM, current AUM is up by more than 5 per cent from the end of March,” Mr Gillingwater said.

“Our investment teams are talking to management teams of the companies, we invest in, revisiting their financial models, and stress testing companies’ ability to withstand the disruption this event is presenting.”

The group’s revenue of US$554.9 million ($856.5 million) for the quarter had risen by 6 per cent year-on-year, but it slipped by 8 per cent from the prior quarter, brought down by lower average AUM and decreased performance fees.  

Performance fee revenue was down by 20 per cent from the prior quarter, to US$14.6 million ($22.5 million).

Goodwill and intangible asset impairment charges of US$487.3 million ($752.3 million) brought the first-quarter operating income to a loss of US$332.4 million ($513.1 million), or a diluted loss per share of US$1.35 ($2.08). 

Without the impairment charges, operating income was up 15 per cent year-on-year to US$164.5 million ($254 milllion). 

The board declared a quarterly dividend of US$0.36 cents (55 cents) per share.

 

Client redemptions, market drag Janus Henderson assets
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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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