Why the Janus Henderson (ASX:JHG) share price is on watch

The Janus Henderson Group (ASX: JHG) share price is one to watch after the UK investment manager’s latest quarterly update.

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The Janus Henderson Group (ASX: JHG) share price is one to watch this morning after the UK investment group’s latest quarterly update.

Why is the Janus Henderson share price in focus?

Shares in the UK investment group were smashed 3.0% lower on Thursday ahead of the quarterly results release.

Janus Henderson reported that long-term investment performance remains “solid” despite 3-year investment outperformance edging lower to 62%. Assets under management increased by 1% to US$405.1 billion while the group booked US$3.3 billion in outflows for the quarter.

Adjusted diluted earnings per share (EPS) fell 12.5% from the December quarter to US91 cents per share. Janus Henderson’s dividend per share edged higher to US38 cents, up from US36 cents in Q4 2020. It’s worth watching the Janus Henderson share price as investors react to the dividend increase in early trade.

This comes after the investment group completed a US$230 million share buyback during the March quarter. On the investment side, the company reported a broadly strong performance.

Fixed income, multi-asset and alternatives strategies all had 90% of assets under management (AUM) outperforming on a 1- and 3-year basis. Quantitative equities was the noticeable outlier, with 48% of AUM outperforming on a 1-year basis with 4% and 11% on a 3- and 5-year basis, respectively.

Investors will be keeping an eye on Janus Henderson shares after the company reported a decline in net flows for the quarter and decrease in gross sales.

Adjusted quarterly revenue was down from US$528.5 million to US$516.6 million thanks to a 71% drop in performance fees to US$17.0 million. A 6% increase in total operating expenses at US$315.1 million also punctuated the quarterly result.

Foolish takeaway

The Janus Henderson share price is one to watch this morning after the group’s latest quarterly update. The UK investment group closed with a $42.65 share price and an $8.7 billion market capitalisation on Thursday afternoon.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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