Thursday 02 May 2019 11:52 am

Janus Henderson outflows sparks declining profits

Asset management firm Janus Henderson saw profits decline as outflows continued in the first quarter of 2018.

The figures

Net income was $94.1m, down 43 per cent from $165.2m in the first quarter of 2018.

Revenue was $519.m, down from $545.1m at the end of December 2018 and $587.7m at the end of March last year.

Earnings per share were $0.48, down from 0.54 at the end of the last quarter, and from 0.82 this time last year.

The board declared a quarterly dividend of $0.36 per share

Assets under management were up nine per cent as strong investment performance and rebounding markets offset outflows, the company said.

Why it's interesting

Net outflows in the quarter were $7.4bn in the first quarter due to “pockets of underperformance” within the business.

Despite the gloomy results, the company said it was beginning to see improvements in some areas of its business, including its US retail channel and an improving environment in Continental Europe.

Janus Henderson approved a share buy back in February, and purchased about 1.3m of its ordinary shares for $31m.

What Janus Henderson said

Janus Henderson chief executive Dick Weil said: “Overall investment performance for the quarter was strong, but we continue to face pockets of underperformance which are driving substantial net outflows.

“That said, we are seeing encouraging results in several areas of our business, including momentum in the US retail channel, primarily with our US Equity strategies, ongoing growth in our multi-asset capability, and an improving environment in Continental Europe.”