Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q1 2023 Earnings Presentation
34 slides from Janus Henderson's earnings presentation, May 3, 2023
Slide 1: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS Wednesday, May 3, 2023 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer
Slide 2: Key metrics – Q1 2023 vs Q4 2022
Q1 2023 RESULTS Key metrics – Q1 2023 vs Q4 2022 Investment performance remains Q1 2023 Q4 2022 solid 3-year investment 70% 67% outperformance¹ AUM increased 8% due to markets, FX, and net inflows of Net flows US$5.5bn US$(11.0)bn US$5.5 billion Total AUM US$310.5bn US$287.3bn U.S. GAAP dilute
Slide 3: Investment performance remains solid
INVESTMENT PERFORMANCE Investment performance remains solid % of AUM outperforming benchmark % of mutual fund AUM in top 2 Morningstar quartiles As of March 31, 2023 As of March 31, 2023 Capability 1-year 3-year 5-year 10-year Capability 1-year 3-year 5-year 10-year Equities 71% 57% 52% 77% Equities
Slide 4: Quarterly flows
QUARTERLY FLOWS1 We are pleased with the quarterly flow result, and there is still work to be done to deliver consistent organic growth over the long term Total flows (US$ in billions) 20.5 19.2 17.7 19.5 18.2 15.9 16.4 14.8 11.4 5.5 (1.2) (1.2) (0.8) (1.0) (6.2) (7.8) (5.8) (11.0) (14.0) (16.7) (17
Slide 5: Flows by client type
FLOWS BY CLIENT TYPE1 Institutional net inflows primarily reflect wins from sophisticated clients across several investment strategies Intermediary Institutional Self-Directed (US$ in billions) (US$ in billions) (US$ in billions) 14.0 9.5 9.9 9.2 8.1 8.3 6.5 6.3 6.9 3.1 3.0 0.6 0.4 0.3 0.2 0.4 (0.7)
Slide 6: Flows by capability
FLOWS BY CAPABILITY Net inflows into Equities and Fixed Income primarily reflect wins from sophisticated Institutional clients across several investment strategies Q1 2023 flows by capability (US$ in billions) Sales Redemptions Net sales / (redemptions) 10.7 7.3 3.3 3.6 1.0 0.5 (0.8) (0.6) (3.7) (1.
Slide 7: U.S. GAAP financial results
U.S. GAAP FINANCIAL RESULTS Change Change Q1 2023 vs Q1 2023 vs (US$ in millions, except per share data) Q1 2023 Q4 2022 Q4 2022 Q1 2022 Q1 2022 Revenue Management fees 414.6 405.6 2% 514.0 (19%) Performance fees (14.9) 14.3 nm (8.4) (77%) Shareowner servicing fees 51.5 51.3 0% 62.4 (17%) Other reve
Slide 8: Adjusted financial results
ADJUSTED FINANCIAL RESULTS Change Change Q1 2023 vs Q1 2023 vs (US$ in millions, except as noted) Q1 2023 Q4 2022 Q4 2022 Q1 2022 Q1 2022 Revenue Management fees 373.8 366.3 2% 457.0 (18%) Performance fees (14.9) 14.3 nm (8.4) (77%) Shareowner servicing fees 9.2 8.9 3% 10.2 (10%) Other revenue 15.7
Slide 9: Q1 2023 adjusted financial highlights
Q1 2023 ADJUSTED FINANCIAL HIGHLIGHTS Decrease from Q4 2022 adjusted revenue driven by lower performance fees partially offset by higher average AUM Decline in net management fee margin due to mix shift from lower fee Adjusted Institutional mandates wins Revenue Estimated aggregate performance
Slide 10: Capital resources
CAPITAL RESOURCES Strong liquidity position Balance sheet profile – carrying value Cash and investment securities1 Dec. 31, 2022 vs. Mar. 31, 2023 (US$ in millions) totaled US$1,292 million compared to outstanding debt of US$307 million 1,515.6 Decrease in cash primarily due to 1,292.1 359.1 pay
Slide 11: Q1 2023 strategic progress update
Q1 2023 STRATEGIC PROGRESS UPDATE We are using our “Fuel for Growth” savings to help enable our strategy, though achieving consistent results will not happen overnight U.S. Intermediary Q1 2023 flows is the best result in nearly three years Protect & Grow Launched U.S. branding campaign our core
Slide 12: Q&A
Q&A Janus Henderson
Slide 13: Appendix
APPENDIX Janus Henderson
Slide 14: Assets under management
ASSETS UNDER MANAGEMENT AUM as of March 31, 2023: US$310.5 billion By client type By capability By client location 3% 11% 22% 15% 31% 55% 21% 61% 58% 23% Intermediary US$171.0bn Equities US$188.5bn North America US$180.1bn Institutional US$70.5bn Fixed Income US$65.0bn EMEA & LatAm US$96.4bn Self-Di
Slide 15: Investment management capabilities
INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Alternatives Equities US$10.2bn Wide range of equity strategies Multi-Asset encompassing different geographic US$46.8bn focuses and investment styles Fixed Income Intermediary Intermediary Innovative and differentiated techniques desig
Slide 16: Largest strategies by capability
LARGEST STRATEGIES BY CAPABILITY AUM (US$bn) Capability Strategy 31 Mar 23 US Mid Cap Growth 24.0 US Concentrated Growth 22.1 Equity US Research Growth Equity 17.2 Global Life Sciences 11.0 US SMID Cap Growth 7.9 Australian Fixed Income 10.1 Global Strategic Fixed Income 7.4 Fixed Income Absolute Re
Slide 17: Quarterly flows by capability: Equities and Fixed Income
QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income Equities Fixed Income (US$ in billions) (US$ in billions) 10.7 8.5 7.7 7.3 5.5 5.6 6.0 4.9 4.8 3.3 4.4 3.6 - (1.2) (1.9) (3.3) (3.7) (3.8) (4.1) (5.6) (5.8) (6.0) (7.5) (7.4) (8.2) (8.9) (9.6) (12.3) (11.3) (13.1) Q1 2022 Q2 2022 Q3 2022 Q4 202
Slide 18: Quarterly flows by capability: Multi-Asset and Alternatives
QUARTERLY FLOWS BY CAPABILITY Multi-Asset and Alternatives Multi-Asset Alternatives (US$ in billions) (US$ in billions) 4.4 2.3 1.6 1.5 2.2 1.1 1.0 0.9 0.7 0.4 0.5 (0.2) (1.0) (0.8) (0.9) (2.2) (0.2) (2.2) (0.3) (0.6) (0.6) (1.7) (2.1) (1.8) (2.5) (1.1) (1.0) (1.0) (1.1) (4.5) Q1 2022 Q2 2022 Q3 202
Slide 19: Net flows by capability
NET FLOWS BY CAPABILITY¹ Total net flows by capability Equities (US$ in billions) Fixed Income Multi-Asset Alternatives 5.5 (1.2) (1.2) (0.8) (1.0) (6.2) (5.8) (7.8) (11.0) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 1 Net flows across all time periods exclude Intech, the
Slide 20: Investment performance: % of AUM outperforming benchmark
INVESTMENT PERFORMANCE % of AUM outperforming benchmark Q2 2022 Q3 2022 Q4 2022 Q1 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 41% 43% 47% 63% 42% 50% 51% 64% 58% 54% 57% 64% 71% 57% 52% 77% Fixed Income 45% 79% 93% 99% 43% 76% 89% 90% 18% 78% 89% 90%
Slide 21: Investment performance: mutual fund AUM in top Morningstar quartiles
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles Q2 2022 Q3 2022 Q4 2022 Q1 2023 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 56% 52% 71% 88% 61% 38% 71% 90% 61% 54% 72% 89% 74% 55% 79% 91% Fixed Income 45% 68% 81% 84% 36% 61% 76%
Slide 22: Investment performance: top quartiles (continued)
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 1st quartile 2nd quartile 90 91 90 88 81 76 76 76 70 30 31 66 64 40 35 63 61 60 26 24 31 26 53 46 27 44 13 41 43 35 35 15 60 59 51 52 50 50 51 53 37 40 31 26 22 23 25 26 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 20
Slide 23: 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 90 89 84 85 79 81 74 76 71 71 72 40 68 68 69 65 69 37 24 61 61 50 46 61 56 27 42 44 54 55 38 52 31 30 51 40 34 22 25 19 45 34 37 31 30 41 26 38 26 24 36 34 36
Slide 24: 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 96 100100100 100 95 96 96 96 94 98 95 95 97 97 98 95 95 92 92 92 92 92 2 2 2 11 4 89 1 1 1 3 16 80 77 43 43 70 45 42 54 67 62 45 15 34 14 76 78 83 89 96 94 88
Slide 25: U.S. GAAP: Statement of income
U.S. GAAP: STATEMENT OF INCOME Three months ended (US$m, except per share data or as noted) 31 Mar 23 31 Dec 22 31 Mar 22 Revenue Management fees 414.6 405.6 514.0 Performance fees (14.9) 14.3 (8.4) Shareowner servicing fees 51.5 51.3 62.4 Other revenue 44.6 44.0 52.0 Total revenue 495.8 515.2 620.0
Slide 26: Alternative performance measures
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Three months ended (US$m, except per share data) 31 Mar 23 31 Dec 22 31 Mar 22 Reconciliation of revenue to adjusted revenue Revenue 495.8 515.2 620.0 Management fees 1 (40.8) (39.3) (57.0) Shareowner servicing fees 1 (42
Slide 27: Alternative performance measures (continued)
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) Three months ended (US$m, except per share data) 31 Mar 23 31 Dec 22 31 Mar 22 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 87.4 65
Slide 28: Footnotes to reconciliation of adjusted financial measures
ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an in
Slide 29: Capital management
CAPITAL MANAGEMENT Commitment to return of capital Q2 2021 to Q1 2023 quarterly capital return (US$ in millions) Dividends Share repurchases 139.8 131.4 121.1 107.6 75.0 66.9 55.6 43.3 65.0 64.7 64.9 64.7 64.8 64.5 64.3 65.5 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Dividend pa
Slide 30: Performance fees
PERFORMANCE FEES AUM generating # of funds Q1 2023 generating Q1 2023 Q4 2022 Q1 2022 pfees Q1 2023 (US$m) (US$m) (US$m) (US$bn) pfees Frequency Timing 17 annually; 17 at June; SICAVs (0.1) – – – – 3 quarterly 3 on quarters UK OEICs and unit trusts – – – – – annually various quarterly / Absolute ret
Slide 31: U.S. mutual funds with performance fees
U.S. MUTUAL FUNDS WITH PERFORMANCE FEES AUM Performance Q1 2023 P&L 31 Mar 23 Base Performance cap/(floor) vs impact Mutual funds with performance fees¹ (US$m) Benchmark fee fee2 benchmark (US$000s) Forty Fund and Portfolio 16,586 Russell 1000® Growth Index 0.64% ± 15 bps ± 8.50% (7,029) ® Research
Slide 32: Long-term incentive compensation
LONG-TERM INCENTIVE COMPENSATION Estimated future long-term incentive compensation amortization Amount remaining (US$ in millions) to expense 2023 2024 2025 2026 2027 2020 annual grant 3 3 – – – – 2021 annual grant 22 19 3 – – – 2022 annual grant 95 65 26 4 – – 2023 annual grant 109 53 37 17 2 – Oth
Slide 33: 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 investor.relations@janushenderson.com 33
Slide 34: 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 This presentation includes statements concernin
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