DOW JONES NEWSWIRES
Janus Capital Group Inc.'s (JNS) first-quarter net profit jumped
21% as revenue increased and managed assets rose due to market
appreciation.
The company also increased its annualized dividend five-fold to
20 cents a year and announced Chief Financial Officer Greg Frost,
who has been with the firm since 1997, plans to leave about Aug. 1.
Frost will be succeeded by Bruce Koepfgen, who will join Janus in
June. Previously, Koepfgen worked for insurer Allianz SE's (AZSEY,
ALV.XE) asset management unit.
The asset management firm has seen continued earnings growth of
late as investment fees and the pool of assets it manages have
increased from prior-year levels.
Janus posted a profit of $37.9 million, or 21 cents a share, up
from $31.3 million, or 17 cents a share, a year earlier. The latest
period included 3 cents a share in debt-retirement charges while
the prior-year result included a 12-cent net benefit from items
such as an insurance recovery and the sale of structured investment
vehicle securities.
Revenue rose 7.5% to $265.4 million.
Analysts polled by Thomson Reuters most recently forecast a
profit of 20 cents on $268 million in revenue.
Assets under management ended the period at $173.5 billion, up
from $165.5 billion a year earlier and $169.5 billion in the prior
period. The increase reflected market appreciation, which was
offset by $2.7 billion in long-term net outflows.
Janus' mathematical equity and fundamental equity long-term
outflows were about $2.6 billion and $500 million, respectively.
Fixed income saw inflows of about $400 million.
Shares closed Wednesday at $12.64 and were inactive in recent
premarket trading. Through the latest close, the stock has
retreated 17% the past year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com