Janus Henderson Group (JHG), which is currently dual-listed in the US and Australia, is increasing expectations for recurring annual run rate pre-tax net cost synergies to at least US$125 million, within three years post completion.
This figure represents an increase from previous guidance of at least US$110 million.
The company also announced its third quarter 2017 results, five months after its formation as a result of the Janus Capital/Henderson Group merger.
Net income attributable to JHG, on an adjusted base adjusted for the acquisition and transaction related cost of US$114.2 million, decreased 18 per cent compared to US$139.8 million in the second quarter 2017. At the same time, assets under management (AUM) grew by five per cent, counting quarter-on-quarter, to US$360.5 billion.
JHS also saw positive net inflows across equities, alternatives and fixed income which stood at US$0.7 billion.
Third quarter adjusted revenue for 2017 of US$454.6 million, however, went down from the Q2 result of US$482.2 million as performance fees in the third quarter decreased from the exceptional level achieved in the previous period, the company said.
In the same time, management fees on a pro forma basis increased five per cent, driven by growth in average AUM while Q3 adjusted operating income of US$168.4 million decreased from US$199.5 million in Q2, driven by lower performance fees.
The group also said that it completed US$72 million of annualised run rate pre-tax net cost synergies in September, which comprised savings largely from headcount reduction.
JHG’s co-chief executives, Dick Weil and Andrew Formica, said: “Our confidence is our ability to deliver cost synergies has enabled us to increase our target to at least US$125 million on an annual run rate basis.”
“Only five months have passed since the formation of Janus Henderson, yet pleasingly we are seeing green shoots in the cross-revenue opportunities, brought about by our global distribution footprint, expanded product set and collaborative culture.”
The board also declared a 3Q dividend in respect of the three months ended September of US$0.32 per share.
