Janus Capital Group, Inc. (NYSE:JNS) Q1 2015 Earnings Conference Call - Final Transcript

Apr 23, 2015 • 10:00 am ET


Janus Capital Group, Inc. (NYSE:JNS) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning my name is Dana, and I will be your conference facilitator today. Thank you for standing by, and welcome to the Janus Capital Group First Quarter 2015 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be question and answer period. (Operator Instructions).

(Forward-Looking Cautionary Statements).

Thank you. It is now my pleasure to introduce Dick Weil, CEO of Janus Capital Group. Mr. Weil, you may begin your conference.

Richard Weil

Thank you, operator. Welcome everyone to the first quarter 2015 earnings presentation for the Janus Capital Group. Thanks for joining us this morning. As usual, I'll start with a little overview of the quarter. I'll hand off to our CFO, Jennifer McPeek, who will take you through the numbers in some more detail, and we will take a moment to go through some special topics at the end, and then we'll take questions.

Looking at the first quarter of 2015, let me start by reflecting a bit on the context that we've been talking about for several quarters. In these quarterly calls we've spend a lot of time talking about, our strategy; our focus on intelligent diversification; our desire to build out our fixed income business, our non-US, businesses, our US institutional business; to pay down debt and strengthen our balance sheet; and to further develop our product line up with some uncorrelated returns and some asset allocation.

That story really focuses on evolution, and I try to context that story for you with the headline that nothing is more important than taking care of our existing clients in our existing business. Nothing is more important than delivering excellent risk adjusted returns and excellent client experience to our existing clients. And in that context, clearly our most important business is our Janus actively managed equity business with approximately $90 billion in the AUM at this point.

The real headline for this quarter is, of course, the second quarter in a row of overall positive flows. Underneath that, it's fundamentally driven by $2.2 billion in positive flows in our Janus equity business in the first quarter of 2015, which is the strongest quarter of inflows for this business in nearly seven years. And that was primarily driven by the combination of significantly stronger investment performance and really good work on the client sales and client relationship side, maximizing the benefit of that improved performance.

And so the story of this quarter is not so much about the Bill Gross and Myron Scholes that we've talked about in prior quarter, although that all remains valid and very important to our future. But the really good news of this quarter is a continued strengthening in our core Janus equity actively managed franchise.

It's also worth noting that our fixed income business added $800 million in positive net flows. That was primarily driven by $700 million in positive flows in our fundamental strategies on the fixed income side. I'd also like to