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.
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