Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q1 2024 Earnings Presentation
38 slides from Janus Henderson's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Results
Q1 2024 RESULTS Thursday, May 2, 2024 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer
Slide 2: Key metrics – Q1 2024 vs Q4 2023
Q1 2024 RESULTS Key metrics – Q1 2024 vs Q4 2023 Investment performance remains solid Q1 2024 Q4 2023 Investment outperformance1 AUM increased 5% to $352.6 billion 3-/5-/10-year 60/68/85% 60/69/71% Net flows of $(3.0) billion compared Total AUM $352.6bn $334.9bn to $(3.1) billion in Q4 2023 Ne
Slide 3: Investment performance remains solid
INVESTMENT PERFORMANCE Investment performance remains solid % of AUM outperforming benchmark % of mutual fund AUM in top 2 Morningstar quartiles As of March 31, 2024 As of March 31, 2024 Capability 1-year 3-year 5-year 10-year Capability 1-year 3-year 5-year 10-year Equities 60% 48% 55% 80% Equities
Slide 4: Quarterly flows
QUARTERLY FLOWS1 We are encouraged by improving flows and client activity, and the path to deliver consistent growth will not be linear Total flows ($ in billions) 17.7 19.5 16.4 14.8 15.2 14.4 15.9 11.4 11.8 5.5 (0.5) (2.6) (3.1) (3.0) (6.2) (7.8) (5.8) (11.0) (14.0) (15.7) (14.4) (17.2) (17.5) (18
Slide 5: Flows by client type
FLOWS BY CLIENT TYPE Flows reflect momentum in Intermediary and outflows in Institutional Intermediary Institutional Self-Directed ($ in billions) ($ in billions) ($ in billions) 11.6 12.4 9.9 9.1 8.9 9.2 6.9 5.8 1.9 2.6 2.5 2.9 1.0 0.4 0.3 0.3 0.3 0.6 - (0.4) (0.7) (1.3) (2.0) (3.1) (0.7) (0.8) (0.
Slide 6: Flows by capability
FLOWS BY CAPABILITY We are seeing AUM market share gains in U.S. and European Equities and Fixed Income, despite industry challenges Q1 2024 flows by capability ($ in billions) Sales Redemptions Net sales / (redemptions) 8.1 5.8 0.1 1.3 0.7 (1.1) (0.8) (1.2) (5.7) (2.1) (1.9) (9.2) Equities Fixed In
Slide 7: U.S. GAAP financial results
U.S. GAAP FINANCIAL RESULTS Change Change Q1 2024 vs Q1 2024 vs ($ in millions, except per share data) Q1 2024 Q4 2023 Q4 2023 Q1 2023 Q1 2023 Revenue Management fees 459.4 427.1 8% 414.6 11% Performance fees (13.1) 41.7 nm (14.9) 12% Shareowner servicing fees 57.2 53.6 7% 51.5 11% Other revenue 48.
Slide 8: Adjusted financial results
ADJUSTED FINANCIAL RESULTS Change Change Q1 2024 vs Q1 2024 vs ($ in millions, except as noted) Q1 2024 Q4 2023 Q4 2023 Q1 2023 Q1 2023 Revenue Management fees 413.9 386.3 7% 373.8 11% Performance fees (13.1) 41.7 nm (14.9) 12% Shareowner servicing fees 11.3 10.7 6% 9.2 23% Other revenue 14.7 16.5 (
Slide 9: Q1 2024 adjusted financial highlights
Q1 2024 ADJUSTED FINANCIAL HIGHLIGHTS Decrease from Q4 2023 adjusted revenue driven primarily by lower Adjusted performance fees partially offset by higher average AUM Revenue Net management fee margin was flat to the prior quarter Q1 2024 adjusted operating expenses were flat compared to Q4 2
Slide 10: Capital resources
CAPITAL RESOURCES Strong liquidity position Cash and investments1 totaled Balance sheet profile – carrying value $1,357 million compared to December 31, 2023 vs. March 31, 2024 outstanding debt of $304 million ($ in millions) 1,545.1 Decrease in cash primarily due to 1,356.5 payouts from the ann
Slide 11: Capital management
CAPITAL MANAGEMENT Commitment to return of capital Q2 2022 to Q1 2024 quarterly capital return ($ in millions) Dividends Share repurchases 144.5 126.6 121.1 81.3 55.6 61.9 64.7 64.9 64.7 64.6 64.7 – 65.5 64.7 63.2 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Dividend paid / share
Slide 12: 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 13: Diversify: Privacore update
DIVERSIFY: PRIVACORE UPDATE Democratization of private asset classes is well underway To start 2024, Privacore has achieved substantial progress in its mission to deliver institutional-quality alternative investment products to Private Wealth clients through its open architecture distribution First
Slide 14: Amplify: Active ETFs
AMPLIFY: ACTIVE ETFs We expect the acquisition of Tabula will position Janus Henderson as a leading player in the rapidly growing active ETF space in Europe and in Emerging Markets (“EM”) Strategic Rationale Capitalizes on favorable market dynamics Leading independent ETF provider in A significant
Slide 15: Diversify: Emerging market alternatives
DIVERSIFY: EMERGING MARKET ALTERNATIVES We believe the strategic partnership with NBK Wealth and acquisition of their private investments team will allow Janus Henderson to enter the EM private capital space Strategic Rationale Capitalizes on favorable market dynamics Leading alternative investmen
Slide 16: Conclusion
CONCLUSION We are proud of the progress made in the first quarter with more work to be done Improved investment performance Increased adjusted diluted EPS 29% compared to Q1 2023 Returned $145 million of cash to shareholders through dividends and share repurchases Declared a quarterly divide
Slide 17: Q&A
Q&A GROUP PLC
Slide 18: Appendix
APPENDIX GROUP PLC
Slide 19: Assets under management
ASSETS UNDER MANAGEMENT AUM as of March 31, 2024: $352.6 billion By client type By capability By client location 2% 10% 21% 15% 29% 55% 20% 63% 61% 24% Intermediary $195.0bn Equities $222.3bn North America $215.2bn Self-Directed $82.9bn Fixed Income $70.6bn EMEA & LatAm $102.4bn Institutional $74.7b
Slide 20: Investment management capabilities
INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Alternatives $8.6bn Equities Wide range of equity strategies Multi-Asset encompassing different geographic $51.1bn focuses and investment styles Fixed Income Intermediary Intermediary Innovative and differentiated techniques designed t
Slide 21: Largest strategies by capability
LARGEST STRATEGIES BY CAPABILITY AUM ($bn) Capability Strategy 31 Mar 24 US Concentrated Growth 28.5 US Mid Cap Growth 28.3 Equity US Research Growth Equity 23.6 Global Life Sciences 12.3 UK Enhanced Index 9.0 Australian Fixed Income 9.3 AAA CLO 7.4 Fixed Income Absolute Return Income 6.3 Global Str
Slide 22: 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 8.1 6.0 7.3 6.9 5.7 5.1 4.8 5.8 3.3 3.6 1.0 0.9 1.7 - 0.1 (1.1) (2.3) (3.2) (3.7) (3.9) (4.1) (5.2) (5.7) (7.4) (8.0) (8.6) (9.2) (9.2) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 20
Slide 23: Quarterly flows by capability: Multi-Asset and Alternatives
QUARTERLY FLOWS BY CAPABILITY Multi-Asset and Alternatives Multi-Asset Alternatives ($ in billions) ($ in billions) 1.0 1.1 1.0 1.0 1.3 0.5 0.4 0.3 0.5 0.7 (0.8) (0.7) (0.7) (0.6) (0.8) (0.5) (0.2) (1.2) (1.4) (0.8) (1.1) (1.2) (0.8) (0.7) (1.8) (1.8) (1.7) (2.4) (2.1) (1.9) Q1 2023 Q2 2023 Q3 2023
Slide 24: Net flows by capability
NET FLOWS BY CAPABILITY¹ Total net flows by capability Equities ($ in billions) Fixed Income Multi-Asset Alternatives 5.5 (0.5) (2.6) (3.0) (3.1) (6.2) (5.8) (7.8) (11.0) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 1 Q1 2022 net flows exclude Intech, the sale of which was
Slide 25: Investment performance
INVESTMENT PERFORMANCE % of AUM outperforming benchmark Q2 2023 Q3 2023 Q4 2023 Q1 2024 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 61% 58% 53% 59% 83% 46% 56% 60% 42% 48% 57% 60% 60% 48% 55% 80% Fixed Income 50% 73% 85% 90% 56% 61% 77% 91% 79% 66% 88% 91%
Slide 26: Investment performance: Morningstar quartiles
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles Q2 2023 Q3 2023 Q4 2023 Q1 2024 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 71% 57% 79% 88% 76% 69% 79% 88% 58% 66% 80% 91% 60% 73% 78% 86% Fixed Income 38% 35% 56% 66% 42% 33% 64%
Slide 27: Investment performance: Morningstar quartiles (continued)
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 1st quartile 2nd quartile 87 87 89 86 78 79 80 78 75 75 70 69 66 33 28 34 31 64 61 59 19 24 33 31 39 36 18 35 38 43 36 34 55 55 59 55 55 51 49 48 46 41 42 35 31 21 25 26 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 20
Slide 28: 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 88 88 86 79 79 80 78 76 71 73 69 67 70 12 66 36 43 66 65 66 64 42 64 40 61 58 60 57 23 59 56 42 38 55 29 51 49 29 15 26 47 28 23 25 20 39 32 42 16 26 28 28 38 35
Slide 29: 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 100100100 96 97 96 96 96 95 93 96 95 95 95 96 93 93 92 93 91 4 3 1 1 1 1 1 1 85 85 80 78 12 45 43 43 38 78 77 80 78 76 51 45 44 92 92 92 92 92 93 94 94 94 95 39 3
Slide 30: U.S. GAAP: Statement of income
U.S. GAAP: STATEMENT OF INCOME Three months ended ($m, except per share data or as noted) 31 Mar 24 31 Dec 23 31 Mar 23 Revenue Management fees 459.4 427.1 414.6 Performance fees (13.1) 41.7 (14.9) Shareowner servicing fees 57.2 53.6 51.5 Other revenue 48.2 46.1 44.6 Total revenue 551.7 568.5 495.8
Slide 31: Alternative performance measures
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Three months ended ($m, except per share data) 31 Mar 24 31 Dec 23 31 Mar 23 Reconciliation of revenue to adjusted revenue Revenue 551.7 568.5 495.8 Management fees 1 (45.5) (40.8) (40.8) Shareowner servicing fees 1 (45.9
Slide 32: Alternative performance measures (continued)
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) Three months ended ($m, except per share data) 31 Mar 24 31 Dec 23 31 Mar 23 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 130.1 121
Slide 33: Footnotes to reconciliation of adjusted financial measures
ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an in
Slide 34: Performance fees
PERFORMANCE FEES AUM generating # of funds Q1 2024 generating Q1 2024 Q4 2023 Q1 2023 pfees Q1 2024 ($m) ($m) ($m) ($bn) pfees Frequency Timing 17 annually; 17 at June; SICAVs 0.2 0.1 (0.1) – – 3 quarterly 3 on quarters UK OEICs and unit trusts – – – – – annually various quarterly / Absolute return
Slide 35: U.S. mutual funds with performance fees
U.S. MUTUAL FUNDS WITH PERFORMANCE FEES AUM Performance Q1 2024 P&L 31 Mar 24 Base Performance cap/(floor) vs impact Mutual funds with performance fees¹ ($m) Benchmark fee fee2 benchmark ($000s) Research Fund and Portfolio 22,593 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (6,780) Forty Fund a
Slide 36: Long-term incentive compensation
LONG-TERM INCENTIVE COMPENSATION Estimated future long-term incentive compensation amortization Amount remaining to ($ in millions) expense 2024 2025 2026 2027 2028 2021 annual grant 4 4 – – – – 2022 annual grant 31 28 3 – – – 2023 annual grant 58 39 17 2 – – 2024 annual grant 120 60 40 18 2 – Other
Slide 37: 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 38: Contact us
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 Certain statements in this presentation not bas
Janus Henderson Group — Q1 2024 Earnings Presentation on 6ix