Janus Capital Group Inc. Reports Operating Results (10-Q)
Janus Capital Group Inc. has a market cap of $2.52 billion; its shares were traded at around $13.74 with a P/E ratio of 20.5 and P/S ratio of 3. The dividend yield of Janus Capital Group Inc. stocks is 0.3%.JNS is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Kenneth Fisher of Fisher Asset Management, LLC, Murray Stahl of Horizon Asset Management, Robert Olstein of Olstein Financial Alert Fund, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, John Keeley of Keeley Fund Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations: Ending assets under management of $165.5 billion increased $5.8 billion, or 3.6%, from December 31, 2009, as a result of favorable market conditions during the first quarter 2010. Average assets under management of $160.0 billion increased $4.8 billion, or 3.1%, from December 31, 2009. Significant events in the first quarter 2010 included the appointment of Richard M. Weil as chief executive officer (CEO) effective February 1, 2010, and the acquisition of an additional 3% interest in INTECH for $31.4 million on February 19, 2010.
Janus long-term net inflows were $1.4 billion in the first quarter 2010 compared to long-term net outflows of $0.7 billion in the first quarter 2009. Perkins long-term net inflows were $1.0 billion in the first quarter 2010 and $0.3 billion in the first quarter 2009. The increase in Janus and Perkins long-term net flows is primarily due to improved sales in the retail intermediary channel as market conditions improved combined with strong investment performance.
Performance fee revenue is derived from certain mutual funds and separate accounts. The increase of $1.3 million, or 38.2%, in performance fee revenue was primarily due to higher fees earned on mutual funds from improved performance. At March 31, 2010, $26.8 billion and $6.8 billion mutual fund and private account assets, respectively, were subject to performance fees. Pending mutual fund shareholder approval in the 2010 mutual fund proxy, additional mutual funds representing $42.0 billion, or approximately 25% of assets under management at March 31, 2010, will become subject to performance fees over the next three years, with the first fee recognized in 2011.
Shareowner servicing fees and other revenue increased $6.3 million, or 20.9%, primarily as a result of an increase in transfer agent fees, partially offset by a decrease in money market administration fees. Transfer agent fees increased $9.3 million, or 41.9%, over the comparable prior period. Transfer agent fees are based on average assets under management distributed directly to investors by Janus, excluding money market assets, which increased 53.4% over the comparable prior period. Money market administration fees declined $2.7 million due to lower money market assets as a result of JCGs exit from its institutional money market business effective April 30, 2009.
Long-term incentive compensation increased $5.2 million, or 38.8%, primarily from $3.8 million of expense related to Perkins senior profit interest awards and from new awards granted in 2010, partially offset by the vesting of awards granted in prior years. JCG expects to incur an additional $6 million to $8 million of expense related to Perkins senior profit interest awards during the remainder of 2010. These awards have a formula-driven terminal value based on revenue growth and relative investment performance of products managed by Perkins.
Long-term incentive awards granted during 2010 totaled $63.9 million and will be recognized ratably over a four-year period. In addition to these awards, JCG granted a $10.0 million restricted stock award to the new CEO on February 5, 2010. This award will vest 50% on December 31, 2010, and 25% in each of the second and third years, commencing February 1, 2012. INTECH also granted $5.1 million of ownership interests, which generally vest and wil
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