Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q4 2023 Earnings Presentation
43 slides from Janus Henderson's earnings presentation, Feb 1, 2024
Slide 1: Q4 and Full-Year 2023 Results
Q4 AND FULL-YEAR 2023 RESULTS Thursday, February 1, 2024 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer
Slide 2: 2023: A Year of Progress
2023: A YEAR OF PROGRESS Increased collaboration, accountability, and urgency is bearing fruit Continued to execute on the 3 pillars of our strategic vision: Protect and Grow, Amplify, and Diversify, and we believe we are on the path to achieving organic revenue growth over time Improved net out
Slide 3: Full-Year 2023 Results: Key Metrics
FULL-YEAR 2023 RESULTS Key metrics – 2023 vs 2022 Long-term investment performance remains solid 2023 2022 Investment outperformance1 AUM increased 17% to $334.9 billion 3-/5-/10-year 60/69/71% 67/70/75% Net flows of $(0.7) billion in 2023 Total AUM $334.9bn $287.3bn compared to $(30.8) billio
Slide 4: Q4 2023 Results: Key Metrics
Q4 2023 RESULTS Key metrics – Q4 2023 vs Q3 2023 Long-term investment performance remains solid Q4 2023 Q3 2023 Investment outperformance1 AUM increased 9% to $334.9 billion 3-/5-/10-year 60/69/71% 58/67/72% Net flows of $(3.1) billion compared Total AUM $334.9bn $308.3bn to $(2.6) billion in
Slide 5: Investment Performance
INVESTMENT PERFORMANCE Long-term investment performance remains solid % of AUM outperforming benchmark % of mutual fund AUM in top 2 Morningstar quartiles As of December 31, 2023 As of December 31, 2023 Capability 1-year 3-year 5-year 10-year Capability 1-year 3-year 5-year 10-year Equities 42% 48%
Slide 6: Quarterly Flows
QUARTERLY FLOWS1 Flows are significantly improved compared to the prior year Total flows ($ in billions) 19.2 17.7 19.5 16.4 14.8 15.2 14.4 11.4 11.8 5.5 (1.0) (0.5) (2.6) (3.1) (6.2) (7.8) (5.8) (11.0) (14.0) (15.7) (14.4) (17.2) (17.5) (20.2) (23.9) (24.2) (25.8) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4
Slide 7: Flows by Client Type
FLOWS BY CLIENT TYPE We are gaining market share in U.S. Intermediary, and as previously communicated, the Institutional pipeline will take time to mature Intermediary Institutional Self-Directed ($ in billions) ($ in billions) ($ in billions) 11.6 9.9 9.1 8.9 9.2 8.3 6.3 6.9 5.8 1.9 2.6 2.5 0.2 0.4
Slide 8: Flows by Capability
FLOWS BY CAPABILITY We are gaining market share in U.S. Fixed Income Q4 2023 flows by capability ($ in billions) Sales Redemptions Net sales / (redemptions) 6.0 6.9 1.7 1.0 0.5 (1.4) (0.2) (3.2) (5.2) (2.4) (0.7) (9.2) Equities Fixed Income Multi-Asset Alternatives 8
Slide 9: U.S. GAAP Financial Results
U.S. GAAP FINANCIAL RESULTS Change Change Change Q4 2023 Q4 2023 FY 2023 vs vs vs ($ in millions, except per share data) Q4 2023 Q3 2023 Q3 2023 Q4 2022 Q4 2022 FY 2023 FY 2022 FY 2022 Revenue Management fees 427.1 434.9 (2%) 405.6 5% 1,700.1 1,799.4 (6%) Performance fees 41.7 (15.8) nm 14.3 nm 5.1
Slide 10: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Change Change Change Q4 2023 Q4 2023 FY 2023 vs vs vs ($ in millions, except as noted) Q4 2023 Q3 2023 Q3 2023 Q4 2022 Q4 2022 FY 2023 FY 2022 FY 2022 Revenue Management fees 386.3 393.5 (2%) 366.3 5% 1,535.3 1,606.2 (4%) Performance fees 41.7 (15.8) nm 14.3 nm 5.1 (10.7)
Slide 11: Q4 2023 Adjusted Financial Highlights
Q4 2023 ADJUSTED FINANCIAL HIGHLIGHTS Increase from Q3 2023 adjusted revenue driven primarily by higher Adjusted performance fees partially offset by lower average AUM Revenue Net management fee margin was flat to the prior quarter Q4 2023 adjusted operating expenses increased 7% from Q3 2023
Slide 12: Capital Resources
CAPITAL RESOURCES Strong liquidity position Balance sheet profile – carrying value December 31, 2022 vs. December 31, 2023 Cash and investment securities1 ($ in millions) totaled $1,545 million compared to outstanding debt of 1,515.6 1,545.1 $305 million 359.1 399.2 Board declared a dividend of
Slide 13: Capital Management
CAPITAL MANAGEMENT Commitment to return of capital 2018 to 2023 annual capital return ($ in millions) Dividends Share repurchases 628.1 472.3 393.7 372.1 374.9 358.3 199.9 320.6 99.8 130.8 98.9 61.9 275.1 272.4 262.9 256.0 259.4 258.7 2018 2019 2020 2021 2022 2023 Dividend paid / share ($) 1.40 1.44
Slide 14: 3 Pillars of Strategic Vision
3 PILLARS OF STRATEGIC VISION We continue to execute on our strategic vision DESCRIPTION EXAMPLES We have identified existing opportunities to PROTECT & GROW better align resources to protect and grow U.S. Intermediary Our core businesses our core businesses Institutional AMPLIFY Our investment
Slide 15: 2023 Strategic Progress Update: U.S. Intermediary
2023 STRATEGIC PROGRESS UPDATE U.S. Intermediary is our largest client segment, and our progress is tangible U.S. Intermediary PROTECT & GROW Our core businesses Achieved annual positive net flows for the first time since 2016, resulting in a 1% organic growth rate Captured market share Select
Slide 16: 2023 Strategic Progress Update: Institutional and Alternatives
2023 STRATEGIC PROGRESS UPDATE We are making progress across initiatives leveraging our existing strengths Institutional PROTECT & GROW Our core businesses Achieved positive net flows for first time since 2018 Improved gross sales by 6% and gross redemptions by nearly 60% Restructured coverage
Slide 17: 2023 Strategic Progress Update: Privacore and M&A
2023 STRATEGIC PROGRESS UPDATE Privacore is on track to be in the market by early 2024, and the M&A pipeline is solid Diversify PROTECT & GROW Our core businesses Have continued to look actively to buy, build, or partner Have maintained a robust pipeline of M&A activity and will continue to be d
Slide 18: Enhancing Our Culture
ENHANCING OUR CULTURE We reinforced our culture through articulating our Mission, Values, and Purpose company-wide Refined and articulated our strategy and developed our Mission, Values, and Purpose Honed focus on clients, culture, and accountability Shaped “MVP” to guide decision making and p
Slide 19: Strategy Leads to Organic Growth Over Time
SUMMARY We believe our strategy will lead to organic revenue growth over time Illustrative Progress to date Organic Growth Historical JHG Future JHG Historical PROTECT & GROW AMPLIFY DIVERSIFY Future Where clients give us JHG Our core businesses Strengths not fully leveraged the right to win JHG 19
Slide 20: Conclusion
CONCLUSION In 2023, we demonstrated great progress on our strategic path to deliver consistent organic growth Continued to execute on the 3 pillars of our strategic vision Improved net outflows significantly Reinforced our culture through articulating our Mission, Values, and Purpose Achie
Slide 21: Q&A
Q&A GROUP PLC
Slide 22: Appendix
APPENDIX GROUP PLC
Slide 23: Assets Under Management
ASSETS UNDER MANAGEMENT AUM as of December 31, 2023: $334.9 billion By client type By capability By client location 3% 10% 22% 15% 31% 55% 21% 61% 59% 23% Intermediary $183.4bn Equities $205.1bn North America $198.6bn Self-Directed $76.1bn Fixed Income $71.5bn EMEA & LatAm $102.9bn Institutional $75
Slide 24: Investment Management Capabilities
INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Alternatives $9.4bn Equities (54 bps1) Wide range of equity strategies encompassing different geographic Intermediary Multi-Asset $48.9bn focuses and investment styles Fixed Income (28 bps1) Intermediary Intermediary Innovative and dif
Slide 25: Largest Strategies by Capability
LARGEST STRATEGIES BY CAPABILITY AUM ($bn) Capability Strategy 31 Dec 23 US Mid Cap Growth 26.4 US Concentrated Growth 25.7 Equity US Research Growth Equity 20.7 Global Life Sciences 11.2 UK Enhanced Index 7.8 Australian Fixed Income 9.7 Global Strategic Fixed Income 7.1 Fixed Income Absolute Return
Slide 26: Quarterly Flows by Capability: Equities and Fixed Income
QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income Equities Fixed Income ($ in billions) ($ in billions) 10.7 8.6 7.7 7.3 6.9 5.6 5.7 6.0 5.1 4.8 3.3 3.6 1.0 0.9 1.7 - (2.3) (1.9) (3.2) (3.7) (4.1) (3.9) (5.2) (7.5) (7.4) (8.0) (8.6) (9.2) (9.6) (13.1) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4
Slide 27: Quarterly Flows by Capability: Multi-Asset and Alternatives
QUARTERLY FLOWS BY CAPABILITY Multi-Asset and Alternatives Multi-Asset Alternatives ($ in billions) ($ in billions) 1.1 1.0 1.1 1.0 1.0 0.4 0.5 0.4 0.3 0.5 (0.6) (0.6) (0.8) (0.5) (0.2) (1.0) (0.8) (0.7) (0.7) (1.4) (1.0) (1.1) (1.2) (0.8) (0.7) (2.1) (1.8) (1.8) (1.7) (2.4) Q4 2022 Q1 2023 Q2 2023
Slide 28: Net Flows by Capability
NET FLOWS BY CAPABILITY¹ Total net flows by capability ($ in billions) Equities Fixed Income Multi-Asset Alternatives 5.5 (0.5) (1.0) (2.6) (3.1) (6.2) (5.8) (7.8) (11.0) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 1 Net flows across all time periods exclude Intech, the s
Slide 29: Investment Performance: AUM Outperforming Benchmark
INVESTMENT PERFORMANCE % of AUM outperforming benchmark Q1 2023 Q2 2023 Q3 2023 Q4 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 71% 57% 52% 77% 61% 58% 53% 59% 83% 46% 56% 60% 42% 48% 57% 60% Fixed Income 27% 87% 89% 95% 50% 73% 85% 90% 56% 61% 77% 91%
Slide 30: Investment Performance: Morningstar Quartiles
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles Q1 2023 Q2 2023 Q3 2023 Q4 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 74% 55% 79% 91% 71% 57% 79% 88% 76% 69% 80% 88% 57% 66% 80% 91% Fixed Income 34% 51% 69% 69% 22% 35% 52%
Slide 31: Investment Performance: Morningstar Quartiles (Group)
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 1st quartile 2nd quartile 90 87 87 89 81 79 80 78 75 70 70 68 31 28 33 34 63 61 61 31 25 60 32 33 40 35 44 40 35 37 34 44 59 55 59 55 50 50 45 47 40 34 26 26 25 25 28 18 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 20
Slide 32: Investment Performance: Equities and Fixed Income Quartiles
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Equities Fixed Income 1st quartile 2nd quartile 91 91 88 88 79 79 80 80 74 76 71 69 69 69 66 12 66 40 36 43 64 42 61 57 58 59 55 57 38 42 39 29 51 52 25 25 40 51 39 32 37 42 26 28 24 28 34 34 35 28 43 42 32 12 35
Slide 33: Investment Performance: Multi-Asset and Alternatives Quartiles
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Multi-Asset Alternatives 1st quartile 2nd quartile 98 100100100100 96 97 94 96 96 95 92 93 95 94 96 95 95 93 91 3 1 1 1 16 1 1 3 85 85 80 77 78 12 42 45 43 43 77 34 76 78 78 78 80 51 45 44 92 92 92 92 94 94 94 94
Slide 34: U.S. GAAP: Statement of Income
U.S. GAAP: STATEMENT OF INCOME Three months ended Year ended ($m, except per share data or as noted) 31 Dec 23 30 Sep 23 31 Dec 22 31 Dec 23 31 Dec 22 Revenue Management fees 427.1 434.9 405.6 1,700.1 1,799.4 Performance fees 41.7 (15.8) 14.3 5.1 (10.7) Shareowner servicing fees 53.6 54.9 51.3 213.3
Slide 35: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Three months ended Year ended ($m, except per share data) 31 Dec 23 30 Sep 23 31 Dec 22 31 Dec 23 31 Dec 22 Reconciliation of revenue to adjusted revenue Revenue 568.5 521.0 515.2 2,101.8 2,203.6 Management fees 1 (40.8)
Slide 36: Alternative Performance Measures (continued)
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) Three months ended Year ended ($m, except per share data) 31 Dec 23 30 Sep 23 31 Dec 22 31 Dec 23 31 Dec 22 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net incom
Slide 37: Footnotes to Reconciliation of Adjusted Financial Measures
ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an in
Slide 38: Capital Management: Quarterly Capital Return
CAPITAL MANAGEMENT Commitment to return of capital Q1 2022 to Q4 2023 quarterly capital return ($ in millions) Dividends Share repurchases 121.1 126.6 107.6 55.6 61.9 43.3 64.7 64.9 64.7 64.6 64.7 – 64.3 65.5 64.7 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Dividend paid / share
Slide 39: Performance Fees
PERFORMANCE FEES AUM generating # of funds Q4 2023 generating Q4 2023 Q3 2023 Q4 2022 pfees Q4 2023 ($m) ($m) ($m) ($bn) pfees Frequency Timing 17 annually; 17 at June; SICAVs 0.1 0.7 – – – 3 quarterly 3 on quarters UK OEICs and unit trusts – – – – – annually various quarterly / Absolute return fund
Slide 40: U.S. Mutual Funds with Performance Fees
U.S. MUTUAL FUNDS WITH PERFORMANCE FEES AUM Performance Q4 2023 P&L 31 Dec 23 Base Performance cap/(floor) vs impact Mutual funds with performance fees¹ ($m) Benchmark fee fee2 benchmark ($000s) Research Fund and Portfolio 19,801 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (6,857) Forty Fund a
Slide 41: Long-Term Incentive Compensation
LONG-TERM INCENTIVE COMPENSATION Estimated future long-term incentive compensation amortization Amount remaining to ($ in millions) expense 2024 2025 2026 2027 2028 2021 annual grant 3 3 – – – – 2022 annual grant 28 25 3 – – – 2023 annual grant 55 37 16 2 – – Estimated 2024 annual grant1 120 61 40 1
Slide 42: Contacts
CONTACTS Investor enquiries Media enquiries Jim Kurtz Nicole Mullin Head of Investor Relations Director of Media Relations +1 303 336 4529 +44 (0)20 7818 2511 jim.kurtz@janushenderson.com nicole.mullin@janushenderson.com Investor Relations Candice Sun investor.relations@janushenderson.com Head of Co
Slide 43: Contact Us and Forward-Looking Information
Contact us 201 Bishopsgate London EC2M 3AE United Kingdom www.janushenderson.com Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Forward-looking information This presentation includes statements concernin
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