Janus Henderson suffers $7bn net outflows in just six months

$4.3bn outflows since Formica's departure

Janus Henderson has reported net outflows of $4.3bn over the three months to 30 September, as the group was hit by a sharp turnaround in performance fees.

This comes after the group saw net outflows of $2.7bn in Q2, bringing total net outflows to $7bn in just six months.

In the latest results, total performance fees were a negative $6m, having contributed $13.5m in Q2, with the fall resulting from a decline in performance fees among the SICAV and UK OEICs on the back of poor performance from several large European equity strategies and absolute return products.

Meanwhile Q3 net income was down to $111m from $140m in the three months prior and adjusted net income -  adjusted for one-off and acquisition and transaction-related costs - was also down during the period, falling 8% from $150m to $139m.

However, assets under management were up $8bn from 30 June to $378bn, boosted by market and currency gains of $12.3bn.

Janus Henderson suffers $10.2bn in outflows in year of merger

As at 30 September, the group achieved $119m of annualised run rate pre-tax net cost synergies and said it expects to realise recurring annual run rate pre-tax net cost synergies of $125m by the end of the year, ahead of the original target date of May 2020.

Dick Weil (pictured), CEO of Janus Henderson Group, said: "Our third quarter financial results continue to be strong with year-over-year revenue growth and margin expansion of 150 basis points, demonstrating the firm's enhanced effectiveness of converting higher revenues into higher profits. 

"While net flows and recent investment performance are not where we expect them to be, it is also true that we are seeing many areas in our business that are doing well. 

"We recognise short-term performance and flow challenges gain particular attention in a quarterly reporting cycle; however, they do not define our long-term value proposition or derail our plans to achieve organic growth. Going forward, we remain committed to our goals of growing market share profitably in each of our key markets and delivering an exceptional client experience."

These are the first results to be released with Weil at the helm following the departure of former co-CEO Andrew Formica. Since then, shares have fallen 15%.

In its Q2 results on 1 August Janus Henderson announced Formica's immediate departure after just over a year in the joint role. Prior to that, he had spent a decade as sole CEO of Henderson Global Investors before the merger with Janus Capital, which completed in May 2017. 

Global head of distribution Phil Wagstaff also left the group alongside Formica.