Citi marks to market for the September quarter, making some allowance for the drop in equity markets since September 30. The latest industry data suggests net fund outflows have continued at similar levels and performance fees are expected to be seasonally weaker.
Morgan Stanley expects a firm result in the third quarter, although concedes the challenges are growing for Janus Henderson as leading indicators regarding retail flows remain negative and performance is soft.
Given low expectations, its fair to say that Janus Henderson’s weak result was in line with consensus, the broker suggests. Assets under management growth was flat due to ongoing outflows and revenue margins were stable.