Performance fees have increased by more than 350% at Janus Henderson Group in the past quarter to 30 June.
In its quarterly results reported to the Australian Securities Exchange (ASX) for the three months to 30 June, the firm said performance fees were US$77.4 million ($104 million).
This compared to US$17 million in the first quarter of the year and US$17.2 million a year ago.
Janus Henderson said 45 funds, which represented US$88 billion in assets under management (AUM), had generated performance fees in the second quarter while 66% of funds had outperformed over one and three years.
AUM rose 6% to US$427 billion although the firm said strength in global markets was offset by net outflows of US$2.5 billion. However, this was smaller than the US$3.3 billion outflows seen in the first quarter.
Intermediary sales fell from US$16.5 billion in the previous quarter to US$13.5 billion while institutional sales rose from US$3.3 billion to US$4.2 billion.
Almost half of total assets under management were in the intermediary space at US$206.7 billion while US$133.1 billion was in institutional and US$87.8 billion was in self-directed investors.
Equities remained the dominant capability at US$240 billion followed by fixed income at US$80.5 billion while its largest single-strategy was the Multi-Asset Balanced fund at US$46.5 billion.
Quarterly operating income was US$225 million, a 17% increase from the previous quarter of US$192.5 million, and the firm announced a US$200 million buyback from April 2022.
Dick Weil, chief executive, said: “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 earnings per share (EPS). Our strong balance sheet, cashflow 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.”