By Chelsey Dulaney
Janus Capital Group Inc., the new home of bond kingpin Bill
Gross, said its profit jumped 22% in its fourth quarter, partly
driven by higher investment management fee revenue.
The results beat Wall Street estimates.
Mr. Gross, the world's most prominent bond-fund manager, stunned
investors and analysts in late September by resigning from Pacific
Investment Management Co. to join much-smaller rival Janus. Mr.
Gross officially began work as a portfolio manager at Janus on Oct.
6, during the fourth quarter.
Mr. Gross's new bond fund at Janus had net inflows of $176
million in December after raising $1.1 billion in October and
November, according to Morningstar.
That money was critical because it helped push the Janus Global
Unconstrained Bond fund past $1 billion in assets under management,
a key threshold for large investors, according to industry
experts.
But The Wall Street Journal reported earlier this month that a
majority of the money came from a single Southern California
brokerage office--the same office where one of Mr. Gross's personal
financial advisers works, according to industry executives who have
viewed confidential brokerage data.
Janus said Thursday that it ended the fourth quarter with $183.1
billion in total assets under management, compared with $174.4
billion in the previous quarter and $173.9 billion a year
earlier.
Overall, Janus posted a profit of $46.7 million, or 24 cents a
share, up from $38.3 million, or 21 cents a share, a year
earlier.
Total revenue rose 13% to $254.8 million, driven by higher
investment management fees.
Analysts polled by Thomson Reuters had expected 20 cents a share
in earnings and $243.8 million in revenue.
Shares were inactive premarket and are up 25% over the past 12
months.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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