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Janus Henderson shares tank on US$17.2 billion in net outflows in 2019, quant funds clobbered

The Janus Henderson Group Ltd (ASX: JHG) share price is down $3.97 or 12.5% to $27.81 today after the UK / Denver, USA-based international equities and fixed income fund manager revealed whopping net fund outflows of US$9.8 billion for the quarter ending June 30, 2019. Worryingly, this follows on from a net US$7.4 billion in net outflows delivered over the first quarter of calendar 2019. 

Janus still has US$359.8 billion in funds under management as at June 30, 2019 but this is a scary trend for investors as it’s now accelerating.

I could not see much of an explanation, other than it flagging “quantitive equities” accounted for $4.1 billion of the outflows, with emerging markets at US$2.5 billion. 

Investors bolting for the exits on the quant funds could be for any number of reasons including poor performance, a lack of faith in quant strategies, or just due to structural shifts as the popularity of low-fee index investing grips. 

For the quarter the group reported adjusted profit of US$109 million on revenue of US$535.9 million which translated into a US36cps dividend on US56cps in earnings.

The group also bought back around 3.5 million shares over the quarter worth US$75 million as part of an approved US$200 million share buyback. 

Other investment managers under the cosh recently include Perpetual Limited (ASX: PPT) and Pendal Group Ltd (ASX: PDL).

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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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