By Christopher Condon - Jul 22, 2010
Janus Capital Group Inc., owner of the Janus, Intech and Perkins funds, said second-quarter earnings rose 91 percent as stock-market gains boosted assets invested for clients.
Net income increased to $30.2 million, or 17 cents a share, from $15.8 million, or 10 cents, a year earlier, the Denver- based company said in a statement today. Results beat the 14- cent average estimate of 16 analysts surveyed by Bloomberg.
The MSCI AC World Index of stocks climbed 9.5 percent in the year ended June 30, lifting the amount of money Janus oversees for clients and the fees it generates. More than 90 percent of the company’s mutual-fund assets are in equities. Funds deposits may slow after the world index gave up some of its gains in the second quarter.
“Flows pretty broadly were better than expected,” Mark Lane, an analyst at William Blair & Co. in Chicago, said in a telephone interview. “I was surprised they have held up as well as they did given the market’s performance in May and June.” Lane had expected Janus to earn 14 cents a share.
Revenue rose 25 percent to $249.3 million, driven by a 30 percent jump in investment-management fees to $207.8 million. Expenses increased 23 percent to $187.9 million, as employee compensation and benefits, including long-term incentives, rose 25 percent to $99.9 million.
Yearly Increase
Assets under management increased from a year ago by 11 percent to $147.2 billion, as the Standard & Poor’s 500 Index rose 14 percent including dividends. During the second quarter, assets fell 11 percent with net withdrawals of $1.3 billion.
Investors took out $1.5 billion from the firm’s Intech unit, which uses mathematical models to select investments, and $1 billion from traditional equity funds in the three months ended June 30. Intech had $4.3 billion in net withdrawals in the first quarter of 2010.
Bond funds had $1.2 billion in net deposits while money- market assets were unchanged in the second quarter.
Janus reported earnings before the start of regular U.S. trading. Its stock has fallen 30 percent this year, compared with the 12 percent decline by Standard & Poor’s index of 15 asset managers and custody banks.
(Janus will hold a conference call at 10 a.m. New York time. The call-in number is +1-877-301-7574 in the U.S. and Canada and +1-706-643-3623 elsewhere.)
To contact the reporter on this story: Christopher Condon in Boston at ccondon4@bloomberg.net
From Bloomberg published on Jul 22, 2010