Janus Rises Most in 14 Months as Fund Outflows Slow, Net Beats Estimates
Janus Capital Group Inc., owner of the Janus, Intech and Perkins funds, rose the most in 14 months in New York trading after fund withdrawals eased in the second quarter and earnings beat analysts’ estimates.
Net outflows from Janus’s Intech unit, a combined $9.2 billion in the previous three quarters, slowed to $1.5 billion, the Denver-based company said today in a statement. Per-share earnings of 17 cents topped the 14-cent average estimate of 16 analysts surveyed by Bloomberg.
“Flows were better than expected, particularly at Intech, where real performance has improved,” Mark Lane, an analyst at William Blair & Co. in Chicago, said in a telephone interview.
Janus’s earnings got a boost from higher fund balances compared with a year ago, lifting management fees paid by clients. The MSCI AC World Index of stocks climbed 9.5 percent in the year ended June 30. About 90 percent of the company’s mutual-fund assets are in equities.
Janus rose $1.12, or 12 percent, to $10.59 at 4:03 p.m. in New York Stock Exchange composite trading. It was the biggest gain since May 2009. Janus has lost 21 percent this year, compared with the 8.7 percent decline by the Standard & Poor’s index of 15 asset managers and custody banks.
Net income increased 91 percent to $30.2 million from $15.8 million, or 10 cents a share, a year earlier. Revenue rose 25 percent to $249.3 million, driven by a 30 percent jump in investment-management fees.
Expenses increased 23 percent to $187.9 million, as employee compensation and benefits, including long-term incentives, rose 25 percent. Marketing and distribution costs rose 51 percent to $50.8 million reflecting Chief Executive Officer Richard Weil aim to beef up retail sales through intermediaries.
Yearly Increase
Assets under management increased 11 percent from a year earlier to $147.2 billion. During the second quarter, assets fell 11 percent with net withdrawals of $1.3 billion.
Investors took out $1 billion from traditional equity funds in the quarter, including the loss of $1.8 billion when one large investor pulled out.
Bond funds, which accounted for $9.2 billion as of June 30, or 6 percent of total assets, added $1.2 billion. Weil, 47, plans to introduce new fixed-income products later this year. He joined Janus in February from Newport Beach, California-based Pacific Investment Management Co., the second-biggest manager of bonds behind BlackRock Inc.
To contact the reporter on this story: Christopher Condon in Boston at ccondon4@bloomberg.net
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