Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.
  • Exclusive Online Only Content
  • Free Daily Email News Alerts
  • Asset Management Blogs

Stilwell Second Quarter Net Income Down Over 40%

Stilwell Financial reported net income of $90.4 million for the second quarter, down over 40% from 2000. Those figures include certain non-recurring expenses, without which, net income is down about 30%.

Stilwell is the parent company of Janus, Berger LLC, and U.K.-based Nelson Money Managers, and owns about 33% of DST Systems. The company does not breakdown quarterly data for each company, according to a spokesperson.

Total assets under management for the company stood at $220.1 billion at the end of June. While that is up $14.2 million from the first quarter, it is still down 30% from the end of the second quarter of 2000.

The decrease in assets under management led to decreased revenues as well. Total revenues for Stilwell in the second quarter were $411.5 million, down 27% from 2000.

"Second quarter 2001 proved to be a challenging, yet successful period for Stilwell and its subsidiaries," Stilwell CEO Landon Rowland said in a statement. "Our ongoing earnings were consistent with expectations, but more importantly, there were several key items that exceeded expectations."

Among those items was net cash inflow, which exceeded $2 billion, and although far less than in the second quarter of 2000, was still positive considering the behavior of the market in 2001, according to Rowland.

Another positive aspect was operating margin, which continued to be higher than 40%, a reflection of Janus' increased focus on electronic shareholder servicing and reliance on technology, he said.