Janus Fourth-Quarter Profit Little Changed as Assets, Fees Climb

  • Stock repurchase of 2.1 million shares adds to company's EPS
  • Assets under management rose to $192 billion as of Dec. 31

Janus Capital Group Inc. reported fourth-quarter profit that was little changed from a year earlier as rising expenses offset higher fees for overseeing client money.

Net income was $45 million, or 25 cents a share, compared with $45.2 million, or 24 cents, for the year-earlier period, the Denver-based company said Tuesday in a statement. Analysts predicted profit of 24 cents a share, according to the average of five estimates compiled by Bloomberg.

Clients pulled a net $600 million from the firm’s long-term strategies, led by $3 billion in redemptions from equity products while fixed income strategies added $2.4 billion. Chief Executive Officer Richard M. Weil put Janus in the spotlight by hiring Bill Gross in 2014 and diversifying into new products and regions as he seeks to distinguish the company from other active fund managers. Gibson Smith, who drove much of the expansion of the bond business, will leave at the end of March, Janus said last month.

Janus’s assets rose to $192.3 billion as of Dec. 31 from $185 billion on Sept. 30 and $185.5 billion a year earlier, helping to boost revenue 5.1 percent to $267.8 million. Operating expenses climbed 7.3 percent to $187 million, led by increases in long-term incentive compensation.

The company repurchased 2.1 million shares during the fourth quarter, lifting earnings per share.

Several fund companies have posted quarterly results that disappointed investors amid volatile global markets. BlackRock Inc., the world’s largest money manager, reported earnings on Jan. 15 that fell short of estimates as costs rose. Legg Mason Inc. last week reported a net loss including an impairment charge related to its Permal hedge fund business.

Janus released results before U.S. markets opened. The shares fell 3.7 percent to $12.13 on Monday in New York. The stock was down 14 percent this year, compared with a 15 percent drop for Standard & Poor’s 19-member index of asset managers and custody banks.

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