Janus Shares Rise as Withdrawals Slow to Lowest in Four Years

Apr 22, 2014 11:04 am ET

April 22 (Bloomberg) -- Janus Capital Group Inc., the money manager that’s seeking to reverse 19 straight quarters of client withdrawals, rose by the most since December after redemptions slowed to their lowest mark in four years.

Customers withdrew $1.7 billion from Janus in the first quarter, the smallest amount since the first quarter of 2010, the Denver-based firm said today in a statement. The shares rose 3.8 percent to $11.93 at 10:30 a.m. in New York, after earlier jumping as much as 5.7 percent, the most in the 18-company Standard & Poor’s index of asset managers and custody banks.

“The improvement in flow trends broadly appears to be driven by a decline in redemption trends,” Daniel Fannon, a San Francisco-based analyst as Jefferies Group LLC, wrote in a note to clients. “It does appear that there were some modest institutional wins within the core equity franchise in the quarter as well.”

Chief Executive Officer Richard M. Weil, who took over in 2010, has struggled to stem defections even as he has expanded Janus’s fixed-income team and created another to focus on multi- asset investing. The money manager, owner of the Janus, Intech and Perkins funds, has about $174 billion in assets, mostly in stock funds.

Net income at Janus increased 8.9 percent to $30.5 million in the first quarter, or 16 cents a share, from $28 million, or 15 cents a share, a year earlier. Excluding some items, 10 analysts surveyed by Bloomberg had expected Janus to earn 16 cents a share on average.

Janus shares had declined 7 percent this year through yesterday, compared with a 6 percent drop for the Standard and Poor’s Supercomposite Asset Management & Custody Banks Index.