Ann: Janus Henderson Group - 1Q19 Results, page-11

Assets under management (AUM) did go up by US$29b to $357b for the quarter but that was because the investments themselves increased in value. In terms of fund inflows it was a net decrease of $7.4b - meaning more investments are being withdrawn by investors than new ones added. This trend has been going on for a while which is concerning. Why do investors in JHG funds, in a net sense keep pulling so much of their funds out?

The other fact for the quarter is that Management fees decreased by $11m. And compared to a year ago they are $60m less!!!!. That has had a fairly big impact on the quarterly eps. There was no discussion about it that I could see so i presume that lower management fees are here to stay.

The PE for the FY may look ok but on the latest quarter run rate of US$0.48 which is down from $0.54 from the last quarter, the annual run rate in AUD is therefore AUD$2.74 which means at the current share price the PE is around 11. Given the recent performance, i can't see any reason for the sp to bounce back up too quickly. We need a good quarter of positive net inflow of funds and increased management fees.

I am willing to wait three months for the next quarterly to see if some improvement comes through.