Janus profit plummets 93% in first quarter

Janus Capital Group Inc. today reported a first-quarter net income of $2.7 million, or $0.02 per share, representing a 65% decline from $7.8 million in income for the fourth quarter of 2008.
APR 23, 2009
By  Sue Asci
Janus Capital Group Inc. today reported a first-quarter net income of $2.7 million, or $0.02 per share, representing a 65% decline from $7.8 million in income for the fourth quarter of 2008. Last year at this time, the Denver-based fund firm’s net income was $39 million. Janus also reported $170.3 million in revenue for the quarter, down from $177.1 million in the fourth quarter of 2008. The firm had $110.9 billion in assets under management as of March 31, down from $123.5 billion as of Dec. 31. The decline in assets reflected $900 million in net outflows from its funds in the first quarter, $6.4 billion in market depreciation and money market net outflows of $5.3 billion, the firm reported. Part of the asset decline was due to the firm’s decision to exit the institutional money market mutual fund business, said Gary Black, chief executive, in an earnings conference call. While the firm experienced $900 million in net outflows from its funds in the first quarter, that was less than the $3 billion in net outflows it posted in the fourth quarter. Market stabilization was a factor in the first quarter, as well as improved fund performance, Mr. Black said. “We’ve seen a sharp improvement in flows since the market bottomed out,” he said. “We built out distribution in the right spots and are focused on advisers. But in this business, flows always find the performance.” Mr. Black also said that the firm has been gaining market share in the advisory and international segment. Janus announced plans last month to merge its fund lineup to focus more on distributing through advisers. Eighty-five percent of the flows currently come through the advisory channel, Mr. Black said.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.