Janus Henderson (ASX:JHG) share price jumps 9% to multi-year high

This fund manager was on form during the second quarter…

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The Janus Henderson Group CDI (ASX: JHG) share price is charging higher on Friday morning.

At the time of writing, the fund manager’s shares are up 9% to a multi-year high of $58.50.

This means the Janus Henderson share price is now up 39% since the start of the year.

Why is the Janus Henderson share price charging higher?

Investors have been bidding the Janus Henderson share price higher following the release of an impressive second quarter update.

According to the release, the company reported a 95% increase in second quarter adjusted operating income to US$269.3 million. This was also a 33% increase on its first quarter adjusted operating income.

This allowed the Janus Henderson Board to declare a quarterly dividend of US$0.38 per share and approve a US$200 million share buyback.

Management advised that this strong result was reflective of growth in assets due to positive markets and good investment performance, which translated into significant performance fees.

In respect to its investment performance, the company notes that 66% and 63% of assets under management are outperforming relevant benchmarks on a three- and five-year basis, respectively, as at 30 June 2021.

Management commentary

Janus Henderson’s Chief Executive Officer, Dick Weil, stated: “Second quarter financial results were extremely strong, reflecting growth in assets due to positive markets and good investment performance which translated into significant performance fees, adjusted operating income and EPS.”

“Our strong balance sheet, cash flow generation and financial discipline allow us to increase the return of excess cash to shareholders with the US$200 million accretive buyback announced today.”

“While we continue to make progress towards sustained organic growth, we are winning high-quality new business which is driving our net management fee rate higher during a period of fee compression in the industry. I am confident that our strategy of Simple Excellence has us on the right path to a stronger, more profitable and resilient company positioned well for long-term growth and value creation,” he concluded.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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