Janus Henderson earnings fall 57% as outflows surge
Janus Henderson Group has published its results for the fourth quarter of the 2022 calendar year, posting a 57% fall in operating income.
Operating income fell from US$157.6 million ($222 million) in the previous corresponding period to $67.8 million.
When adjusted to exclude one-time acquisition and transaction costs, the firm’s operating income dropped 48.6%, from US$239.7 million to US$123.2 million over the same period.
This resulted in diluted earnings per share of US$0.39 cents, down from US$0.78 cent in the previous corresponding period.
The weaker underlying result came off the back of a spike in net outflows, which totalled US$11 billion. The equity, fixed income and alternatives division all saw around 6% declines in assets under management during the quarter while multi-asset fell by 4%.
As a result, total assets under management (AUM) plunged 33.5%, from US$432.3 billion as at 31 December 2021 t0 US$287 billion as at the close of the 2022 calendar year.
Ali Dibadj, CEO of Janus Henderson, attributed the result to “global market volatility and headwinds in 2022”, which had created “one of the most challenging investment backdrops in history”.
“Amidst these extreme conditions, I am proud of the tremendous amount of work completed during the year as we reposition Janus Henderson,” he said.
He conceded the current environment remained uncertain but said the global asset manager would “control what we can control and position Janus Henderson for growth”.
“We have a strong balance sheet, good cash generation, disciplined investment teams and processes, and tight cost management, which are essential to delivering superior outcomes for our clients, employees, shareholders, and other stakeholders,” Dibadj said.
The firm noted its long -term investment performance, with 41%, 67%, 70%, and 75% of AUM outperforming relevant benchmarks on a one-, three-, five-, and 10-year basis, respectively, as of 31 December, 2022.
AUTHOR
Charbel Kadib
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