Janus Henderson Group PLC (ASX: JHG) shares are on watch today after the company released its results for the 3rd quarter after the market closed last night.
Janus Henderson is a global asset management business headquartered in London, UK. It offers a wide range of financial products to individuals, advisers and institutional investors around the world including in the US, UK, and Australia.
Janus Henderson currently manages more than US$350 billion of assets, has more than 2,000 employees worldwide and 28 offices across the globe. Basically, it’s a big business.
3rd Quarter Result
Customers pulled out US$3.5 billion (net) from the funds management business in the three months to September 30, 2019. This was actually an improvement on last quarter when customers removed US$9.8 billion of their funds from left the business.
Janus Henderson’s bond funds fared the best with positive net sales of US$1.4 billion. Their multi-asset funds achieved positive net sales of US$400 million. The company’s equities funds and quant division dragged the chain, however, experiencing net withdrawals of US$2 billion and US$2.4 billion, respectively. Total funds under management fell by 1% to US$356.1 billion.
Adjusted net profit came in at US$124.7 million for the quarter, which was 4% above last quarter but still 10% below the same period last year.
The company declared a dividend of US$0.36 per share for the quarter and spent US$81 million as part of its ongoing buyback program.
Management’s Reaction
Commenting on the results, Janus Henderson CEO Dick Weil said, “Our third quarter results reflect a continuation of the improving trends we have seen across the Group. Our strong financial foundation is allowing us to continue to invest in our business while balancing strict business discipline and returning excess cash to shareholders.”
“We are pleased that firm-wide investment performance continues to be strong, and in areas that were previously experiencing weaker performance we are seeing signs of improvement.”
However, Weil then added, “…we remain cautious about the net flow outlook for the balance of 2019 as we continue to see headwinds in several areas of our business.”
Is Janus Henderson A Buy?
The Janus Henderson share price has been on a strong run and is up about 30% since falling to a 12-month low in the middle of August. This result certainly had some positive signs, however, with funds still exhibiting negative flows I think I’d prefer to stay on the sidelines for now.
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At the time of publishing, Luke has no financial interest in any of the companies mentioned.
