Intermediary flows into Janus Henderson fell into outflows in the second quarter with outflows of US$1.2 billion.
In its results for the three months to 30 June, it said intermediary clients had sales of US$16.6 billion, but this was offset by redemptions of US$17.8 billion.
The net outflows ended a trend of four consecutive quarters of positive intermediary flows, having seen US$1.5 billion in net inflows in the previous quarter.
Assets under management (AUM) from intermediary clients now stand at US$224.3 billion, making up 49 per cent of Janus Henderson’s total AUM.
Total AUM increased from US$373 billion to US$457.3 billion, but this was almost entirely driven by the firm’s deal with life insurer Guardian Life which brought across US$46.5 billion in assets.
The strategic partnership will provide up to US$400 million in seed capital to rapidly launch and scale new fixed income products. It will also co-develop proprietary, multi-asset solution model portfolios for Guardian’s dually registered broker-dealer and registered investment adviser, Park Avenue Securities (PAS), which has over 2,400 advisers.
Looking at specific asset classes, fixed income and alternatives saw positive flows, but multi-asset and equities saw outflows. Equities remain the largest capability with US$243.6 billion in AUM, some 53 per cent of total AUM, followed by fixed income at US$142.2 billion.
However, its fixed income US Buy & Maintain Credit Fund is the firm’s largest product strategy at US$52.8 billion, followed by its Multi-Asset Balanced Fund at US$48.9 billion.
Looking ahead at its strategic vision, it flagged areas such as product development and expansion in areas such as ETF, hedge funds, ESG, liquid alternatives, and multi-asset.
Ali Dibadj, chief executive, said: “Our second quarter results were solid, despite market volatility to begin the quarter, with year-over-year increases in net flows, revenue, operating income, and earnings per share.
“We are making meaningful strides on our strategic objectives, including our multifaceted strategic partnership with Guardian, from which we are already starting to see benefits, including managing US$46.5 billion of their general account assets and Guardian’s US$100 million of seed funding into our recently launched Asset-Backed Securities ETF, expanding Janus Henderson’s offerings to meet client demand, including insurance companies seeking efficient investment grade exposure for general accounts.”
