Gary Black, the Janus Capital Group investment strategist who was announced Wednesday as the company’s next chief executive, outlined strategies for bringing more assets under Janus management during an interview with The Denver Post.
He also said he plans to enhance the company’s reputation on Wall Street and with the public by delivering strong investment returns.
“Janus has always been about research, and that’s what attracted me to the company,” said Black, 45, speaking from Janus’ Cherry Creek headquarters. “We are about research, and we invest with conviction.”
Black, who is to take the CEO reins in January from Steve Scheid, said Janus has made significant progress in the past 18 months. He said he intends to further implement policies enacted under Scheid, who will remain board chairman.
Black, who will retain his role as chief investment officer, pointed to the company’s quarterly profit report, released Wednesday. The company reported average assets under management in the third quarter at $135 billion, a 4.4 percent increase over the second quarter.
The report also showed that net inflows invested for the long term was $1.7 billion, the highest level in five years. For the first time since 2003’s second quarter, money added to Janus funds outpaced money withdrawn.
Janus has been plagued by people pulling money out since the bull market’s end in 2000.
In response, Janus increased its focus on institutional investors and brokers, groups responsible for 80 percent of all investments. Black said he would expand that effort.
Excluding one-time items, Janus profits rose to $31 million, or 14 cents a share, from 24.7 million, or 11 cents a share, from the third quarter a year ago. Janus shares rose $1.61, or 11 percent, to close Wednesday at $16.78.
Paul Balser, the board’s lead independent director, said the company is in a stronger, more stable position than when Scheid took over.
But not everyone at Janus fully agrees with the Janus strategy.
Robert Burt, a board member, abruptly resigned Wednesday. In a letter to the outgoing CEO, Burt said, “I feel strongly that the strategic option we are pursuing is not in our shareholders’ best interest.”
Burt, a former CEO of chemical maker FMC Corp., did not immediately return phone calls seeking additional comment.
Black joined Janus in April 2004. Before that, he was chief investment officer for Goldman Sachs Asset Management’s Global Equitiesin New York.
From 1992 to 2001, Black worked as an analyst at Alliance Berstein, where he earned a slot on Institutional Investor magazine’s “All-America Research Team” for six consecutive years.
“I appreciate the board’s vote of confidence,” said Black. “As we move forward, the management team and I will stay focused on three priorities: delivering consistently strong performance, improving our flows and expanding our presence in the institutional and intermediary markets.”
Black’s agenda for his first day as CEO?
“Let’s make sure the great performance continues,” Black said.
Staff writer Kristi Arellano contributed to this report.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
