Janus Henderson's 139% Rise In Q3 Income Offset By Merger-related Costs

In its quarterly update released this morning, the group reported net inflows of $700m for the three months to 30 September while its average AUM is up by 5% to $360bn.

Net income was more than twice last quarter's $42m figure at $99.5bn though net income on an adjusted basis, adjusted for acquisition and transaction-related costs, were down 18% from $140m to $114m.

However, the firm reported its integration efforts since the closing of the merger between Henderson Global Investors and Janus Capital were "progressing ahead of expectations".

As at 30 September, $72m worth of annualised run rate pre-tax cost synergies had completed, and the combined group aims to realise $90m by the end of the 12 months post-completion in May next year.

This is higher than the initially-expected figure of $85m. The comprised savings have been largely attributable to a headcount reduction.

Furthermore, the expansion of the long-standing strategic partnership with BNP Paribas into the US, and coupled with the ongoing integration work across the firm, has enabled Janus Henderson to increase expectations for recurring annual run rate pre-tax net cost synergies to at least $125m within three years post completion. The previous guidance was $110m.

Janus Henderson makes raft of changes to fund range post-merger

Dick Weil and Andrew Formica, co-chief executive officers of Janus Henderson, said: "Flows were driven by demand for a wide range of strategies across Janus Henderson's equity, fixed income and alternative capabilities. We are encouraged by the levels of engagement, support and relationships developing with clients, globally.

"Integration across Janus Henderson continues to progress at pace, with our focus concentrated on delivering first-class investment performance and service to our clients.

"The expansion of our long-standing strategic partnership with BNP Paribas into the US will provide the firm with a consistent global platform to support growth.

"Our confidence in our ability to deliver cost synergies has enabled us to increase our target to at least $125m on an annual run rate basis.

"Only five months have passed since the formation of Janus Henderson, yet pleasingly we are seeing green shoots in the cross-revenue opportunities, brought about by our global distribution footprint, expanded product set and collaborative culture."