Janus stock pops as fund outflows slow

The stock price of Janus Capital Group Inc., owner of the Janus, Intech and Perkins funds, rose the most in 14 months in New York trading after fund withdrawals eased in the second quarter and earnings beat analysts’ estimates.

Net outflows from Janus’s Intech unit, a combined $9.2 billion in the previous three quarters, slowed to $1.5 billion, the Denver-based company said today in a statement. Per-share earnings of 17 cents topped the 14-cent average estimate of 16 analysts surveyed by Bloomberg.

“Flows were better than expected, particularly at Intech, where real performance has improved,” Mark Lane, an analyst at William Blair & Co. in Chicago, said in a telephone interview.

Janus’s earnings got a boost from higher fund balances compared with a year ago, lifting management fees paid by clients. The MSCI AC World Index of stocks climbed 9.5% in the year ended June 30. About 90% of the company’s mutual-fund assets are in equities.

Janus rose $1.12, or 11%, to $10.59 at 3:21 p.m. in New York Stock Exchange composite trading. It was the biggest gain since May 2009. Before today, Janus had lost 30 percent this year, compared with the 12 percent decline by the Standard & Poor’s index of 15 asset managers and custody banks.

Net income increased 91% to $30.2 million from $15.8 million, or 10 cents a share, a year earlier. Revenue rose 25% to $249.3 million, driven by a 30 percent jump in investment-management fees.

Expenses increased 23% to $187.9 million, as employee compensation and benefits, including long-term incentives, rose 25%.

Assets under management increased 11% from a year earlier to $147.2 billion. During the second quarter, assets fell 11% with net withdrawals of $1.3 billion.

Investors took out $1 billion from traditional equity funds in the three months ended June 30 while adding $1.2 billion to bond funds. Money-market assets were unchanged.

Related Topics: Janus Capital Group