Janus Henderson suffers $10.2bn outflows in 2017

Janus Henderson has reported net outflows of $10.2bn during 2017, its first year as a fully-merged entity.

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Throughout 2017 the firm experienced outflows of $7.6bn (£5.5bn) from its quantitative equities, $1.4bn from multi-asset, $1.3bn from equities, offset by a £100m flow into fixed income, according to its fourth quarter and full-year results for 2017.

In Q4 alone, the firm saw an outflow of $2.9bn, mainly from equities ($700m) and quantitative equities ($1.6bn), but also multi-asset ($200m) and alternatives ($600m). This was offset slightly by an inflow of $200m to fixed income.

Despite this, the firm managed to grow its assets under management by $10.3bn over the quarter, from $360.5bn at the end of September to $370.8bn at the end of December. At the end of 2016, the firm’s AUM was $319.2bn.

Reflecting on a year that saw the completion of the “merger of equals” between Henderson Global Investors and Janus Capital, co-chief executives of Janus Henderson, Andrew Formica and Dick Weil, said 2017 was a “landmark year” for the group.

They added: “As we look back on accomplishments, we are extremely proud of what the firm delivered for clients and shareholders and immensely grateful for the tireless contributions of our employees, who have made the creation of our new firm possible.”

Total revenue at the firm increased 10% quarter on quarter driven by performance fees and a higher average AUM.

It experienced fourth quarter net income of $471.7m, compared with $99.5m for Q3, boosted by a one-off non-cash tax benefit of $340.7m related to new US tax legislation.

Formica and Weil added: “Investment performance is strong, which is a testament to the quality of our investment teams and an endorsement of our commitment to active management. Despite outflows in 2017, we continue to see strong levels of engagement and support from our clients globally and remain encouraged by developing relationships.

“As we look ahead to 2018, we are well-positioned to take advantage of the momentum we are seeing in many areas of our business. Certainly, there is still work to be done; however, we remain committed to providing superior client, shareholder and employee experiences and are excited about the future for Janus Henderson.”

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