FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Janus Capital Group Inc. (collectively, "JCG" or the "Company") may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements as to industry trends and future expectations of the Company and other matters that do not relate strictly to historical facts and are based on certain assumptions by management. These statements are often identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "should," "estimate" or "continue," and similar expressions or variations. These statements are based on the beliefs and assumptions of Company management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the Company's filings with the Securities and Exchange Commission, including those in Part I, Item 1A, Risk Factors, and elsewhere in JCG's Annual Report on Form 10-K for the year ended December 31, 2008. JCG cautions readers to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date on which such statements are made. Except as required by applicable law, JCG undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

AVAILABLE INFORMATION

Copies of Janus Capital Group Inc.'s (collectively, "JCG" or the "Company") filings with the Securities and Exchange Commission ("SEC") can be obtained from the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information can be obtained about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov.

JCG makes available free of charge its annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and amendments thereto as soon as reasonably practical after such filing has been made with the SEC.
Reports may be obtained through the Investor Relations section of JCG's website (http://ir.janus.com) or by contacting JCG at (888) 834-2536. The contents of JCG's website are not incorporated herein for any purpose.

JCG's Officer Code of Ethics for Principal Executive Officer and Senior Financial Officers (including its chief executive officer, chief financial officer and controller) (the "Officer Code"); Corporate Code of Business Conduct and Ethics for all employees; corporate governance guidelines; and the charters of key committees of the Board of Directors (including the Audit, Compensation, Nominating and Corporate Governance, and Planning and Strategy committees) are available on its website (http://ir.janus.com/governance.cfm), and printed copies are available to any shareholder upon request by calling JCG at (888) 834-2536. Any future amendments to or waivers of the Officer Code will be posted to the Investor Relations section of JCG's website.

RESULTS OF OPERATIONS

Overview

JCG provides investment management and administrative services to mutual funds, separate accounts and institutional clients in both domestic and international markets through its primary subsidiaries, Janus Capital Management LLC ("Janus"), INTECH Investment Management LLC ("INTECH") and Perkins Investment Management LLC ("Perkins").

Revenues are generally based upon a percentage of the market value of assets under management and are calculated as a percentage of the daily average asset balance in accordance with contractual agreements with the Company's mutual funds, separate accounts and subadvised relationships (collectively referred to herein as "investment products"). Certain investment products are also subject to performance fees which vary based on their relative performance as compared to a benchmark index and the level of assets subject to such fees. Assets under management primarily consist of domestic and international equity and debt securities. Accordingly, fluctuations in domestic and international financial markets, relative investment performance, sales and redemptions of investment products, and changes in the composition of assets under management are all factors that have a direct effect on JCG's operating results.

INVESTMENT MANAGEMENT OPERATIONS (CONTINUING OPERATIONS)

First Quarter 2009 Summary

Market conditions further deteriorated during the first quarter 2009, leading to a decline in ending assets under management of $12.6 billion, or 10.2%, from December 31, 2008, and further declines in revenues and operating margin. These declines, combined with continuing market uncertainty and volatility, caused JCG to revise its operating forecast downward. As a result of revising the operating forecast and JCG's net book value continuing to exceed market capitalization, JCG reassessed goodwill and intangible assets for impairment.

Subsequent to March 31, 2009, JCG finalized the goodwill and intangible asset impairment assessments and recognized non-cash impairment charges totaling $856.7 million. In addition, JCG established a litigation reserve of $7.5 million as a result of an adverse decision in a case brought by a former portfolio manager. The impairment charges and litigation reserve are reflected in the results of operations for the three months ended March 31, 2009.

Investment Performance

Investment products are generally evaluated based on their investment performance relative to other investment products with similar disciplines and strategies. Despite challenging market conditions, JCG's relative investment performance continues to outperform the majority of peers over multiple time periods.

† Relative long-term investment performance remained strong with approximately 51%, 73% and 87% of JCG's mutual funds in the top half of their Lipper categories on a one-, three- and five-year total return basis, respectively, as of March 31, 2009. (See Exhibit 99.1 for complete Lipper rankings.)

† INTECH's relative investment performance remained strong, with 83%, 56%, 86% and 100% of product strategies with at least a one-, three-, five- and ten-year performance track record, respectively; outperforming their respective benchmarks during each of those periods ended March 31, 2009.

† The Perkins Mid Cap Value and Small Cap Value mutual funds ranked in the top 11% of their Lipper categories on a one-, three- and five-year total-return basis, respectively, as of March 31, 2009.

Assets Under Management and Flows

Valuation

The value of assets under management is derived from the cash and investment securities underlying JCG's investment products. Investment security values are determined using unadjusted or adjusted quoted market prices and independent third-party price quotes in active markets. For debt securities with maturities of 60 days or less, the amortized cost method is used to determine the value. Securities for which market prices are not readily available or are considered unreliable, are internally valued using appropriate methodologies for each security type or by engaging third-party specialists. Despite recent economic events and increased market volatility, the value of the great majority of the securities underlying JCG's investment products continue to be derived from readily available and reliable market price quotations.

The pricing policies for mutual funds advised by JCG's subsidiaries (the "Funds") are established by the Funds' Independent Board of Trustees and are designed to test and validate fair value measurements. Responsibility for pricing securities held within separate and subadvised accounts may be delegated by the separate or subadvised client to JCG or another party.

Total Company Assets and Flows

Total Company assets under management at March 31, 2009 decreased $76.7 billion, or 40.9%, from the end of the first quarter 2008. The decrease was primarily driven by adverse market conditions in the last half of 2008 and first quarter 2009.

The decline in money market flows assets reflect Janus' previously announced plan to exit its institutional money market business by April 30, 2009. Janus will continue offering retail money market funds.

The following table presents the components of JCG's assets under management (in billions):

                                                 Three months ended March 31,
                                                   2009                2008

Beginning of period assets                    $         123.5     $         206.7
Long-term sales
Janus                                                     3.7                 8.2
INTECH                                                    0.9                 1.8
Perkins                                                   1.4                 1.3
Long-term redemptions
Janus                                                    (4.4 )              (9.1 )
INTECH                                                   (1.4 )              (2.9 )
Perkins                                                  (1.1 )              (0.8 )
Long-term net flows *
Janus                                                    (0.7 )              (0.9 )
INTECH                                                   (0.5 )              (1.1 )
Perkins                                                   0.3                 0.5
Total long-term net flows                                (0.9 )              (1.5 )
Net money market flows                                   (5.3 )              (0.6 )
Market / fund performance                                (6.4 )             (17.0 )
End of period assets                          $         110.9     $         187.6

Long-term net flows by distribution channel
Retail intermediary                           $          (0.5 )   $           0.5
Institutional                                            (0.5 )              (2.3 )
International                                             0.1                 0.3
Total                                         $          (0.9 )   $          (1.5 )

Average assets under management
Janus                                         $          61.0     $         104.3
INTECH                                                   39.0                63.1
Perkins                                                   8.6                 9.9
Money market                                              4.5                12.4
Total                                         $         113.1     $         189.7

Subsequent to March 31, 2009, market gains resulted in an increase in ending assets under management of approximately 17.0% as of May 8, 2009.

Assets and Flows by Investment Discipline

JCG, through its primary subsidiaries, offers investment products based on a diversified set of investment disciplines. Janus offers growth/blend and global/international equity, as well as fixed income, alternative and money market investment products. INTECH offers mathematical based investment products and Perkins offers value disciplined investments. Assets and flows by investment discipline are as follows (in billions):

                                Three Months Ended March 31,
                                  2009                2008
Growth/Blend
Beginning of period assets   $          49.5     $          83.5
Sales                                    2.4                 5.9
Redemptions                              3.4                 5.6
Net sales (redemptions)                 (1.0 )               0.2
Market / fund performance               (2.0 )              (6.9 )
End of period assets         $          46.6     $          76.8

Global/International
Beginning of period assets   $          10.9     $          24.9
Sales                                    0.5                 1.1
Redemptions                              0.6                 1.8
Net sales (redemptions)                 (0.1 )              (0.7 )
Market / fund performance               (0.1 )              (2.1 )
End of period assets         $          10.7     $          22.1

Fixed Income
Beginning of period assets   $           3.2     $           4.9
Sales                                    0.8                 0.5
Redemptions                              0.3                 1.6
Net sales (redemptions)                  0.5                (1.1 )
Market / fund performance                  -                   -
End of period assets         $           3.7     $           3.8

Mathematical
Beginning of period assets   $          42.4     $          69.7
Sales                                    0.9                 1.8
Redemptions                              1.4                 2.9
Net sales (redemptions)                 (0.5 )              (1.1 )
Market / fund performance               (3.5 )              (7.5 )
End of period assets         $          38.3     $          61.2

Alternatives
Beginning of period assets   $           0.5     $           0.8
Sales                                      -                 0.7
Redemptions                              0.1                 0.1
Net sales (redemptions)                 (0.1 )               0.6
Market / fund performance               (0.1 )                 -
End of period assets         $           0.4     $           1.4

Value
Beginning of period assets   $           9.1     $          10.1
Sales                                    1.4                 1.3
Redemptions                              1.1                 0.8
Net sales (redemptions)                  0.3                 0.5
Market / fund performance               (0.8 )              (0.5 )
End of period assets         $           8.6     $          10.1

                                Three Months Ended March 31,
                                 2009                2008
Money Market
Beginning of period assets   $         7.9     $           12.8
Sales                                  3.0                 24.9
Redemptions                            8.3                 25.5
Net sales (redemptions)               (5.3 )               (0.6 )
Market / fund performance                -                    -
End of period assets         $         2.6     $           12.2

Results of Investment Management Operations

Three Months Ended March 31, 2009, Compared with Three Months Ended March 31, 2008

Revenues

Investment management fees decreased $88.7 million, or 39.3%, primarily as a result of the decrease in average assets under management.

Performance fee revenue is derived from certain mutual funds and separate accounts. The $2.2 million decrease in performance fee revenue was principally due to lower mutual fund performance fees as a result of a decline in short-term relative investment performance.

Shareowner servicing fees and other revenue declined $20.0 million, or 39.9%, over the comparable prior year period primarily as a result of a decrease in transfer agent fees. Transfer agent fees are based on average assets under management in Janus' retail fund series (Janus Investment Fund), excluding money market assets, which decreased 44.7% over the comparable prior period.

Expenses

Employee compensation and benefits decreased $29.6 million, or 32.2%, principally due to lower incentive compensation. Investment team compensation decreased $14.6 million as a result of lower revenue and a decline in short-term relative investment performance. The investment team compensation plan is linked to individual investment performance, but also ties the aggregate level of compensation to revenue. Sales commissions decreased $5.5 million due to lower sales and the annual company-wide bonus accrual decreased $5.1 million as a result of anticipated lower 2009 operating results.

Long-term incentive compensation increased $1.3 million, or 10.7%, as a result of new awards granted in 2009 partially offset by the vesting of previous awards. Long-term incentive awards granted in 2009 totaled $81.1 million and will generally be recognized ratably over four years. Awards granted in 2009 are not subject to performance-based acceleration.

Distribution expense decreased $16.2 million, or 44.6%, resulting from a similar decrease in assets under management subject to third-party concessions. Distribution fees are calculated based on a contractual percentage of the market value of assets under management distributed through third-party intermediaries.

General, administrative and occupancy expense decreased slightly, as a result of cost reduction measures implemented in the fourth quarter 2008 offset by the establishment of a $7.5 million litigation reserve.

Goodwill and intangible asset impairment charges of $747.0 million and $109.7 million, respectively, were recognized as of March 31, 2009. JCG revised its operating forecast downward as a result of continued deterioration in global market conditions, assets under management and revenues during the first quarter 2009. These conditions combined with JCG's market capitalization remaining below net book value caused management to reassess goodwill and all intangible assets for impairment as of March 31, 2009. Based on these assessments, JCG partially impaired goodwill and mutual fund advisory contracts associated with the 2001 contractual obligation to buy out Janus' founder. The goodwill impairment charge is not deductible for income tax purposes. A tax benefit of $40.6 million was recognized as a result of the impairment of mutual fund advisory contracts.

The impairment analyses of goodwill, indefinite-lived intangible assets and amortized intangible assets were generally based on discounted or undiscounted cash flow models as required by applicable accounting guidance. Significant assumptions utilized in the discounted cash flow models include operating forecasts, discount rates and terminal multiples appropriate under current economic conditions. For purposes of testing goodwill for impairment, JCG has identified one reporting unit based on the similar economic characteristics of the reporting unit's underlying components. Undiscounted cash flow models were used to determine the recoverability of amortized intangible assets and are dependent upon operating forecasts for each group of assets. Significant further deterioration in market conditions, JCG's stock price, assets under management, revenues or adverse changes in key assumptions utilized in the impairment analyses may result in additional impairment charges.

Net investment losses of $7.2 million for the three months ended March 31, 2009 include a $6.6 million impairment charge primarily on securities classified as available for sale.

For the three months ended March 31, 2009, mark-to-market losses on trading securities were largely offset by gains generated by a hedging strategy implemented in late 2008.