Janus Capital Group Inc (JNS)’s Fourth Quarter And Full Year 2014 Earnings Conference Call Transcript

Operator

We will take our next question from Tom Whitehead from Morgan Stanley.

Tom Whitehead – Morgan Stanley.

Great thanks for taking my questions, and congrats on the strong quarter guys. Just wanting to touch on the comp quickly. I guess the comp this quarter was a little bit light, especially when you consider the improvements on the Gross sell side and the improvements in the performance fee. So, you know may be if you could give us some more color on what was going on in this quarter. And then secondly, as we look ahead the fixed sort of component of comp that you broke out, Jennifer, in the slide on 2015. I guess about how much of the comp is fixed and how much should we think about is little more variable?

Jennifer McPeek – Chief Financial Officer

To your first question, if you saw compensation come in a little bit lower a lot of that happened that movement happens in the fourth quarter because we don’t make decisions on how we allocate our bonus pool between final decisions between LTI and cash until the end of the year. So, a lot of those decisions are made based on what’s driving the growth of the bonus pool.

And then, they are within ranges, but when you see changes in the fourth quarter it’s often due to, in this case it was due to some decisions made on cash versus LTI. So our bonuses sometimes go more into LTI than cash. And when you see that throughout the year, we’re accruing at the basis that we expect to occur, but we don’t make the final decision until the fourth quarter. So that’s going to drive that difference. The second question you asked is how much of our compensation is fixed versus variable and I am sorry, we don’t really disclose that, so I cannot really give you that information.

Tom Whitehead – Morgan Stanley

Okay, and then I just had a second question on Velocity Shares. Basically, if you could you know provide us an update on the plans for that business and how I guess how we should think about your investment in growing that business and launching new products over, say, the next 12 or 18 months thanks.

Dick Weil – Chief Executive Office