🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

UPDATE 3-Janus Henderson profit misses estimates on higher net outflows

Published 05/02/2019, 11:12 pm
UPDATE 3-Janus Henderson profit misses estimates on higher net outflows

(Adds details about Bill Gross' retirement)

Feb 5 (Reuters) - Fund manager Janus Henderson Group JHG.N on Tuesday reported quarterly profit that missed Wall Street expectations, hit by customers withdrawing more funds against the backdrop of heightened market volatility.

The results come a day after the fund's most high-profile portfolio manager, former PIMCO chief Bill Gross, announced his retirement after making a failed attempt to reclaim his status as the bond market's most influential investor.

Gross co-founded Pacific Investment Management Co in 1971 and made it the most recognizable name in the investment world. At Janus, he was in charge of its $950 million Global Unconstrained Bond Fund.

In the quarter, Janus' net outflows nearly tripled to $8.4 billion and the company's assets under management fell 11.4 percent to $328.5 billion in the quarter.

"We faced the same global market challenges and headwinds as the wider industry, combined with an aggregate $18 billion outflow, which was disappointing," Chief Executive Officer Dick Weil said.

Financial market turmoil in the last quarter of 2018 prompted investors to pull out money from risk-sensitive assets, hurting the bottom line of fund managers around the globe.

Last week, Janus Henderson announced the closure of its three Australian equities funds due to tough fund-raising conditions, and said it would return nearly A$490 million ($354.86 million) to investors. income attributable to the company fell to $106.8 million, or 54 cents per share, in the quarter ended Dec. 31, from, $471 million, or $2.32 per share, a year earlier when the company recorded a $340.7 million tax gain.

On an adjusted basis, the company earned $114.3 million, or 59 cents per share. Analysts were expecting 63 cents per share, according to IBES data by Refinitiv.

($1 = 1.3808 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.