Janus Capital Group Inc. (“JCG”) (NYSE: JNS) today reported first quarter net income of $22.6 million, or $0.12 per diluted share, compared with fourth quarter 2011 net income of $35.7 million, or $0.19 per diluted share (which included an operating benefit of $0.05 per share from the reversal of previously accrued compensation expenses). First quarter 2012 includes a charge of $0.03 per share associated with the previously disclosed debt tender and a change in the long-term incentive compensation forfeiture estimate. First quarter 2011 net income totaled $37.9 million, or $0.21 per diluted share, and included a charge of $0.03 per share from the early extinguishment of debt.
Flows and Assets Under Management
Average assets under management during the first quarter 2012 were $158.9 billion compared with $149.2 billion during the fourth quarter 2011 and $172.5 billion during the first quarter 2011.
At March 31, 2012, the company’s total assets under management were $164.0 billion compared with $148.2 billion at December 31, 2011 and $173.5 billion at March 31, 2011.The increase in complex-wide assets during the first quarter 2012 primarily reflects net market appreciation of $18.3 billion offset by long-term net outflows of $2.5 billion. Mathematical equity and fundamental equity long-term net outflows totaled $1.8 billion and $1.9 billion, respectively, while fixed income long-term net inflows totaled $1.2 billion. Investment Performance Relative investment performance in fundamental equity strategies continues to be challenged, with 39%, 32% and 78% of mutual fund assets ranked in the top half of their Lipper categories on a one-, three- and five-year total return basis, respectively, as of March 31, 2012. 1 Fixed income mutual funds continue to generate strong long-term relative investment performance with 100%, 33% and 100% of mutual fund assets ranked in the top half of their Lipper categories on a one-, three- and five-year total return basis, respectively, as of March 31, 2012. 2 Mathematical equity relative investment performance has declined, with 41%, 21% and 46% of strategies surpassing their respective benchmarks, net of fees, over the one-, three- and five-year periods, respectively, as of March 31, 2012. 3 In addition, 58% of complex-wide mutual funds have a 4- or 5-star Overall Morningstar Rating TM at March 31, 2012. 4 1 References Lipper relative performance on an asset-weighted basis. For the 10-year period ending March 31, 2012, 80% of the 24 fundamental equity mutual funds outperformed the majority of their Lipper peers on an asset-weighted basis. For the 1-, 3-, 5- and 10-year periods ending March 31, 2012, 46%, 51%, 75% and 71% of the 37, 35, 32 and 24 fundamental equity mutual funds outperformed the majority of their Lipper peers based on total returns. 2 References Lipper relative performance on an asset-weighted basis. For the 10-year period ending March 31, 2012, 100% of the 4 fixed income mutual funds outperformed the majority of their Lipper peers on an asset-weighted basis. For the 1-, 3-, 5- and 10-year periods ending March 31, 2012, 100%, 50%, 100% and 100% of the 5, 4, 4 and 4 fixed income mutual funds outperformed the majority of their peers based on total returns. 3 For the period ending March 31, 2012, 25%, 25%, 33% and 20% of the mathematical equity mutual funds were beating their benchmarks on a 1-, 3-, 5-year and since-fund inception basis. Funds included in the analysis and their inception dates are: INTECH U.S. Growth Fund – Class S (1/03); INTECH U.S. Core Fund – Class T (2/03); INTECH U.S. Value Fund – Class I (12/05); INTECH International Fund – Class I (5/07); INTECH Global Dividend Fund – Class I (12/11). 4 For the period ending March 31, 2012, 28%, 44% and 61% of complex-wide mutual funds had a 4- or 5-star Morningstar rating for the 3-, 5- and 10-year periods based on risk-adjusted returns for 43, 39 and 28 funds, respectively. 43 funds were included in the analysis for the overall period. Financial Discussion
|(dollars in millions, except per share data or as noted)|
|Three Months Ended|
|March 31,||December 31,||March 31,|
|Average Assets ( in billions)||$||158.9||$||149.2||$||172.5|
|Ending AUM ( in billions)||$||164.0||$||148.2||$||173.5|
|Diluted Earnings per Share||$||0.12||$||0.19||$||0.21|
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