UPDATE: Credit Suisse Downgrades Janus Capital Group to Underperform on EPS Risk

Credit Suisse downgraded Janus Capital Group

from Neutral to Underperform. Credit Suisse commented, "Downgrading rating to Underperform and estimate 10% downside to 2014 EPS: Driven by our assumption that (1) net flows will only improve to -$9B/-$7B in '13/'14 from -$12B in '12 despite the new Dai-ichi Life alliance formed in August and stronger active equity flows over the last three weeks; (2) product mix shift will continue to reduce JNS's mgmt fee rate; and (3) performance fees of -$75M in '12 will only improve to about -$60M by '14 given the significant relative performance gaps at the largest performance fee generating funds (plus low '11 performance which will only roll-off 3Y calculations in '14)." Janus Capital Group closed at $9.65 on Thursday.