MutualFundWire.com: Janus Henderson's Avg AUM Ticks Up, But ...

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Thursday, November 14, 2019

Janus Henderson's Avg AUM Ticks Up, But ...

London-based Janus Henderson's Q3 2019 earnings reports reveal that its average AUM rose slightly last quarter, though its quarter-end AUM slipped.

Richard MacCoy Weil
Janus Henderson Group plc
CEO

The team from Janus Henderson released its 2019 Q3 data, and the firm has a total AUM of $356.1 billion as of September 30, 2019, down 1 percent compared to $359.8 billion at the end of 2019 Q2 and down 4.8 percent compared to $378.1 billion at the end of 2018 Q2. The decrease in total AUM for 2019 Q3 is due to net outflows of $3.5 billion and weaker markets. Yet Janus Henderson's average AUM for Q3 2019 was $358.2 billion, down 4.9 percent from Q3 2018 but up 0.1 percent from Q2 2019.

Dick Weil, CEO of Janus Henderson, highlighted performance and outflows from INTECH, the quantitative investment management arm of Janus Henderson. In an earnings call ( as transcribed by Seeking Alpha, he told analysts that "INTECH had net outflows of $2.4 billion in the quarter, which is an improvement from the prior quarter, however given the weakness in the longer-term investment performance and the low sales pipeline, the business remains a key area of concern."

Weil also highlighted an area of expansion for Janus Henderson. According to Weil, management has "hired what [they] believe will be an exceptional GEM team, filling a key gap."

The firm beat analysts' estimates for Q3 2019 non-GAAP earnings per share by $0.03 at $0.64, up from non-GAAP earnings per share of $0.61 in Q2 2019. However, Q3 2019 GAAP earnings per share of $0.56 fell short of estimates by $0.01. Revenues of $536 million beat estimates by $2.06 million.

Although Janus Henderson faces some "continuing real challenges," Weil says, the team "is building the right culture; the talent is applying itself well and we're starting to produce improved results." (Weil was responding to a question from Andrei Stadnik, a vice president at Morgan Stanley.)

Of Janus Henderson's total AUM at the end of Q3 2019, 37 percent ($131 billion) was from institutional clients, 45 percent ($159.8 billion) was from intermediary clients, and 18 percent ($65.3 billion) was from self-directed clients.

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