Asset manager Janus Henderson revenue loss driven by performance fee drop

Jessica Clark
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The Square Mile - London's Financial District
The City firm reported that assets under management grew two per cent (Source: Getty)

A decline in UK and European fund performance drove a revenue drop at asset management firm Janus Henderson in the third quarter.

Revenue fell from $477.7m (£369.7m) in the second quarter to $468.9 between July and September this year following a dip fees after several large European equity strategies, absolute return products and mutual funds performed less well than expected.

However, the City firm reported that assets under management grew two per cent to $378.1bn in the quarter as positive market impacts offset net outflows of $4.3bn.

Janus Henderson Group chief executive officer Dick Weil said: “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. Our US intermediary business is gaining market share, exceeding the industry’s organic growth this quarter, and our global institutional pipeline is seeing a growing number of opportunities across Australia, the Middle East, Asia and the US.

"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.”

“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.”