Janus Capital Group Inc. Announces Fourth Quarter and Year-End 2009 Results

Janus Capital Group Inc. ("JCG”) (NYSE: JNS) today reported fourth quarter net income from continuing operations of $37.0 million, or $0.20 per diluted share, compared with net income from continuing operations of $8.2 million, or $0.05 per diluted share, in the third quarter 2009 and net income from continuing operations of $7.8 million, or $0.05 per diluted share, in the fourth quarter 2008. Third quarter 2009 included a net $0.10 charge per diluted share as a result of severance associated with the former CEO and legal settlements with former employees, partially offset by the realized gain following the completion of the debt tender. The fourth quarter 2008 included a charge of $0.07 per diluted share from the mark-to-market loss on seed capital investments.

For the full-year 2009, net loss from continuing operations totaled $757.1 million, or $4.55 per diluted share, compared with net income from continuing operations of $138.4 million, or $0.86 per diluted share for 2008. Full-year 2009 included a net $5.03 charge per diluted share as a result of goodwill and intangible asset impairment charges, legal settlements and severance, partially offset by the gain associated with the debt tender.

The company’s operating margin for the fourth quarter 2009 was 30.2% compared with 13.0% for the third quarter 2009 and 25.5% for the fourth quarter 2008.

Flows and Assets Under Management

Average assets under management during the fourth quarter increased 8.5% to $155.2 billion compared with $143.1 billion during the third quarter 2009. At December 31, 2009, the company’s total assets under management were $159.7 billion compared with $151.8 billion at September 30, 2009 and $123.5 billion at December 31, 2008.

The increase in firmwide assets during the fourth quarter 2009 reflects $8.0 billion of net market appreciation and breakeven net flows. Janus and Perkins long-term net inflows totaled $1.5 billion and $0.9 billion, respectively, while INTECH long-term net outflows totaled $2.4 billion. The increase in year-over-year assets was primarily the result of $41.5 billion of net market appreciation.

Investment Performance

Relative long-term investment performance remained strong with 75%, 88% and 86% of complex-wide mutual funds in the top half of their Lipper categories on a one-, three- and five-year total-return basis, respectively, as of December 31, 2009.² In addition, 51% of complex-wide mutual funds have a 4- or 5-star Overall Morningstar Rating^TM at December 31, 2009.³

Janus-managed equity mutual funds continue to outperform the majority of peers with 89%, 94% and 88% of equity mutual funds ranking in the top half of their Lipper categories on a one-, three- and five-year total return basis, respectively, as of December 31, 2009.² Additionally, 25%, 100% and 100% of Janus-managed fixed income funds ranked in the top half of their Lipper categories on a one-, three- and five-year total return basis, respectively, for the same time period.²

INTECH continued to underperform over the short- and intermediate-term, with 0%, 50% and 67% of strategies surpassing their respective benchmarks, net of fees, over the one-, three-, and five-year periods, as of December 31, 2009.

Perkins continues to deliver strong long-term investment performance with 75%, 100% and 100% of mutual funds in the top half of their Lipper categories on a one-, three- and five-year total-return basis as of December 31, 2009.

"As I transition my responsibilities as interim CEO to Dick Weil, I'm confident that Janus Capital Group has a very bright future,” said Tim Armour, interim CEO. Armour, who will return to serving as a member of the Janus Capital Group board commented that "Dick brings a wealth of global experience to the role and has demonstrated that he has the vision and leadership to build a world-class organization.”

Financial Discussion

Fourth quarter 2009 revenues of $250.6 million increased 10.1% from the previous quarter due to higher average assets under management driven primarily by favorable market conditions and from separate account performance fees. Operating expenses decreased $23.1 million, or 11.7%, primarily as a result of severance associated with the former CEO and legal settlements with former employees, included in the third quarter, partially offset by higher variable expenses in the fourth quarter.

Capital and Liquidity

At December 31, 2009, JCG had stockholders’ equity of $1.0 billion, cash and investments of $432 million and $792 million of outstanding debt.

Fourth Quarter 2009 Earnings Call Information

JCG will discuss its results during a conference call on Thursday, January 28 at 10 a.m. Eastern Standard Time. The call-in number will be 877-301-7574. Anyone outside the U.S. or Canada should call 706-643-3623. The slides used during the presentation will be available in the investor relations section of the Janus Capital Group Web site (www.janus.com/ir) approximately one hour prior to the call. For those unable to join the conference call at the scheduled time, an audio replay will be available on www.janus.com/ir.

About Janus Capital Group Inc.

Janus Capital Group Inc. (JCG) is a global investment firm offering strategies from three individual investment boutiques: Janus Capital Management LLC (Janus), INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins). Each manager employs a research-intensive approach that is distinct within its respective asset class. This multi-boutique approach enables the firm to provide style-specific expertise across an array of strategies, including growth, value and risk-managed equities, fixed income and alternatives through one common distribution platform.

At the end of December 2009, JCG managed $159.7 billion in assets for shareholders, clients and institutions around the globe. Based in Denver, JCG also has offices in London, Milan, Munich, Singapore, Hong Kong, Tokyo and Melbourne.

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call JCG at (800) 525-3713 or download the file from www.janus.com. Read it carefully before you invest or send money.

This presentation should not be considered sales material and is not an offer or a solicitation for any securities.

Data presented reflects past performance, which is no guarantee of future results. Rankings referenced exclude money markets.

Funds distributed by Janus Distributors LLC.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", "may increase", "may fluctuate", "forecast" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements. These statements are based on the beliefs and assumptions of Company management based on information currently available to management.

Various risks, uncertainties, assumptions and factors that could cause future results to differ materially from those expressed by the forward-looking statements included in this press release include, but are not limited to, risks specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 included under headings such as "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in the Prospectus Supplements, dated July 17, 2009, to the Registration Statement of Form S-3 (Registration No. 333-145310) and in other filings and furnishings made by the Company with the SEC from time to time. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. Many of these factors are beyond the control of the Company and its management. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, the Company undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless required by law.

¹ Relative performance analysis is based on ratings and rankings for the share class with the longest performance history, Class J, S or I Shares in the Janus retail fund ("JIF”) trust, and on Janus Aspen Series ("JAS”) Institutional Shares. Complete Lipper rankings are based on total returns and are on pages 10 and 11.

² Relative performance analysis is based on ratings and rankings for the share class with the longest performance history, Class J, S or I Shares in the Janus retail fund ("JIF”) trust, and on Janus Aspen Series ("JAS”) Institutional Shares. Complete Lipper rankings are based on total returns and are on pages 10 and 11.

³ Funds included in the analysis reflect the share class with the longest performance history, and include Janus Retail ("JIF”) Class J, S and I Shares and Janus Aspen Series ("JAS”) Institutional Shares. Morningstar rankings are based on risk-adjusted returns. Complete Morningstar ratings are on pages 12-13.

Notes:
(1) Represents all assets managed by INTECH Investment Management LLC.
(2) Represents all assets managed by Perkins Investment Management LLC.

Data presented reflects past performance, which is no guarantee of future results.

Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.

Notes:
(1) Closed to new investors.
‡ In accordance with FINRA regulations, Lipper rankings cannot be publicly disclosed for time periods of less than one year.

Data presented reflects past performance, which is no guarantee of future results.

Lipper, a wholly-owned subsidiary of Thomson Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.

Rankings are for the Institutional Shares only; other classes may have different performance characteristics.

Note:
‡ In accordance with FINRA regulations, Lipper rankings cannot be publicly disclosed for time periods of less than one year.

Data presented reflects past performance, which is no guarantee of future results. © 2009 Morningstar, Inc. All Rights Reserved.

Notes:
(1) Closed to new investors.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating ^TM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)

Ratings are for Institutional Shares only; other classes may have different performance characteristics.

Data presented reflects past performance, which is no guarantee of future results. © 2009 Morningstar, Inc. All Rights Reserved.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating ^TM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of the funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)