Janus Capital Falls by Most in 15 Months on Investor Withdrawals

Jan 23, 2014 12:04 pm ET

Jan. 23 (Bloomberg) -- Janus Capital Group Inc., owner of the Janus, Intech and Perkins funds, fell the most in almost 15 months after subpar performance prompted investors to pull money for the 18th consecutive quarter.

Janus’s clients withdrew a net $6.2 billion, the most since the second-quarter of 2010, the Denver-based company said today in a statement reporting fourth-quarter financial results. Janus shares fell 7.5 percent to $12.01 by 11:36 a.m. in New York trading, after earlier falling as much as 8.8 percent, the most since Oct. 31, 2011.

“Lagging relative investment performance remains the primary headwind to fund flow and performance fee improvement,” Daniel Fannon, a San Francisco-based analyst at Jefferies & Co., wrote today in a note to clients, adding that the withdrawals were almost triple his $2.3 billion estimate.

Janus reported that net income rose 23 percent to $38.3 million, or 21 cents a share in the three months ended Dec. 31, from $31.2 million, or 17 cents, a year earlier.

--Editors: Sree Vidya Bhaktavatsalam, Josh Friedman