Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q1 2019 Earnings Presentation
36 slides from Janus Henderson's earnings presentation, May 2, 2019
Slide 1: 1Q19 results presentation: Business and financial update
Roger Thompson Chief Financial Officer 1Q19 results presentation Business and financial update
Slide 2: 1Q19 results
1Q19 results 3 year investment performance strengthened in 1Q19 AUM of US$357.3bn reflects impact of strong markets partially offset by net outflows during the quarter Adjusted diluted EPS of US$0.56 Declared US$0.36 per share dividend and completed the first US$31m of a US$200m share buyback 1Q19 4
Slide 3: Investment performance
Capability 1 year 3 years 5 years Equities Fixed Income Quantitative Equities Multi-Asset Alternatives Total Capability 1 year 3 years 5 years Equities Fixed Income Quantitative Equities Multi-Asset Alternatives Total Investment performance Total company investment performance improved in 1Q19 % of
Slide 4: Total flows
Total flows Total flows 1Q17 to 1Q19 (US$bn) Redemptions Sales Net sales / (redemptions) 24% 24% 21% 22% 21% 18% 19% 17% 19% Annualised gross sales¹ Annualised gross redemptions¹ Outflows disappointing, but improved quarter over quarter Note: Data for periods prior to and including 2Q17 presents pro
Slide 5: 1Q19 flows by capability
1Q19 flows by capability 1Q19 flows by capability (US$bn) Annualised gross sales¹ Redemptions Sales Net sales / (redemptions) 17% 27% 7% 29% 25% (24%) (43%) (16%) (20%) (64%) Annualised gross redemptions¹ 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AU
Slide 6: Statement of income
Statement of income Note: See adjusted financial measures reconciliation on slide 28 for additional information. US GAAP and adjusted US GAAP Adjustments Adjusted Revenue Management fees 441.9 Performance fees (5.6) Shareowner servicing fees 35.9 Other revenue 47.1 Total revenue 519.3 (101.9) 417.4
Slide 7: Summary financial results
Summary financial results Summary of results Note: See adjusted financial measures reconciliation on slides 28 and 29 for additional information. US GAAP and adjusted US$, except margin data 1Q19 4Q18 Change 1Q19 vs 4Q18 1Q18 Change 1Q19 vs 1Q18 Average AUM 350.0bn 347.8bn 1% 377.4bn (7%) Total reve
Slide 8: 1Q19 adjusted revenue drivers
1Q19 adjusted revenue drivers Revenue 1Q19 adjusted revenue reflects fewer days and lower performance fees Pro forma adjusted revenue – 4Q18 vs 1Q19 (US$m) Note: See adjusted financial measures reconciliation on slide 28 for additional information. 1 Net margin based on management fees net of distri
Slide 9: Operating expenses
Adjusted operating expenses – 4Q18 vs 1Q19 (US$m) Operating expenses Note: See adjusted financial measures reconciliation on slide 28 for additional information. Higher LTI, due to mark-to-market gains, offset by expense management Includes US$15m mark-to-market adjustments 274.0 (14.5) (5.2) (2.7)
Slide 10: Capital management
Capital management We remain committed to returning excess capital to shareholders Note: Dividend paid in 2Q17 reflects the hypothetical per share 1Q17 dividend for JHG derived by adding cash dividends each legacy firm paid to its respective shareholders (US$20.3m for legacy Janus and US$26.9m for l
Slide 11: Capital management
Capital management We remain committed to returning excess capital to shareholders Quarterly capital return since merger, (Ussm) 121.4 119.4 Dividends mShare re effec one | ‘Share repurchases eee activity 716 637 637 631 412 2017 3017 4017 1018 2018 3018 4a1s Dividend paid share 3028 3032 Om 3032 $0
Slide 12: Q&A
QsuVHS ‘ADCIIMONy Q&A Janus Henderson
Slide 13: Assets under management as at Mar 2019
Assets under management as at 31 Mar 2019 By client type By capability By client location US$188.8bn US$72.5bn US$49.6bn US$33.4bn US$13.0bn US$63.4bn US$155.2bn US$138.7bn US$192.2bn US$108.6bn US$56.5bn AUM: US$357.3bn 53% 20% 14% 9% 4% Equities Fixed Income Quantitative Equities Multi-Asset Alter
Slide 14: Investment management capabilities
Investment management capabilities Diversified product range Equities US$188.8bn AUM 31 Mar 2019 US$357.3bn Fixed Income US$72.5bn Multi-Asset US$33.4bn Self-directed Intermediary Intermediary Institutional Institutional Institutional Institutional Quantitative Equities US$49.6bn Self-directed Self-
Slide 15: Largest pooled funds by capability
Largest pooled funds by capability Note: Numbers may not cast due to rounding. Excludes unregulated pooled funds. Capability Fund Product Strategy AUM (US$bn) 31 Mar 2019 JnsHnd Enterprise US Mutual Fund Mid Cap Growth 19.7 JnsHnd Research US Mutual Fund US Research Growth Equity 14.0 JnsHnd Forty U
Slide 16: Flows: Equities and Fixed Income
Flows: Equities and Fixed Income Equities (US$bn) Fixed Income (US$bn) Redemptions Sales Net sales / (redemptions) Annualised gross sales¹ Annualised gross redemptions¹ 21% 18% 14% 17% 17% 26% 25% 31% 25% 27% (25%) (20%) (21%) (25%) (24%) (28%) (28%) (39%) (32%) (43%) Note: Reflects operational recl
Slide 17: Flows: Quantitative Equities, Multi-Asset and Alternatives
Flows: Quantitative Equities, Multi-Asset and Alternatives Quantitative Equities (US$bn) Multi-Asset (US$bn) Alternatives (US$bn) 13% 3% 10% 3% 7% Annualised gross sales¹ Annualised gross redemptions¹ Redemptions Sales Net sales / (redemptions) 16% 22% 27% 27% 29% 31% 30% 31% 18% 25% (11%) (10%) (11
Slide 18: Total net flows by capability
Total net flows by capability (7.0) (1.0) Total net flows by capability 1Q17 to 1Q19 (US$bn) Note: Data for periods prior to and including 2Q17 presents pro forma flows of JHG as if the merger had occurred at the beginning of the period shown. Reflects operational reclassification of existing client
Slide 19: AUM and flows by capability
AUM and flows by capability All data in US$bn Equities Fixed Income Quantitative Equities Multi-Asset Alternatives Total AUM 31 Dec 2017 189.7 80.1 49.9 31.6 19.5 370.8 Sales 9.9 5.3 1.7 1.3 1.5 19.7 Redemptions (11.7) (5.6) (1.4) (1.2) (2.5) (22.4) Net sales / (redemptions) (1.8) (0.3) 0.3 0.1 (1.0
Slide 20: Investment performance
Investment performance % of AUM outperforming benchmark Note: Outperformance is measured based on composite performance gross of fees vs primary benchmark, except where a strategy has no benchmark index or corresponding composite in which case the most relevant metric is used: (1) composite gross of
Slide 21: Mutual fund investment performance
Mutual fund investment performance % of mutual fund AUM in top 2 Morningstar quartiles Note: Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Henderson Capital Funds (Dublin based), Dublin and UK OEIC and Investment Trusts, Luxembourg SICAVs and Australi
Slide 22: Mutual fund investment performance (cont'd)
Mutual fund investment performance (cont’d) Group % of mutual fund AUM in top 2 Morningstar quartiles Equities 1 year 3 year 5 year 1 year 3 year 5 year Note: Full performance disclosures detailed on slide 21. Numbers may not cast due to rounding. 2nd quartile 1st quartile 36 23 21 39 30 40 40 35 30
Slide 23: Mutual fund investment performance (cont'd)
Mutual fund investment performance (cont’d) Fixed Income % of mutual fund AUM in top 2 Morningstar quartiles Quantitative Equities 1 year 3 year 5 year 1 year 3 year 5 year 2nd quartile 1st quartile Note: Full performance disclosures detailed on slide 21. Numbers may not cast due to rounding. 57 38
Slide 24: Mutual fund investment performance (cont'd)
Mutual fund investment performance (cont’d) Multi-Asset % of mutual fund AUM in top 2 Morningstar quartiles Alternatives 1 year 3 year 5 year 1 year 3 year 5 year 2nd quartile 1st quartile Note: Full performance disclosures detailed on slide 21. Numbers may not cast due to rounding. 78 90 81 84 82 7
Slide 25: Balance sheet
1 Includes seed investments of US$447.5m (including investment securities of consolidated variable interest entities of US$282.7m), investments related to deferred compensation plans of US$120.3m and other investments of US$6.7m as at 31 December 2018; includes seed investments of US$442.7m (includi
Slide 26: US GAAP: statement of income
US GAAP: statement of income Note: 1Q18 reflects the reclassification of certain revenue amounts from ‘Other revenue’ to ‘Shareowner servicing fees’. 3 months ended 31 Mar 2019 31 Dec 2018 31 Mar 2018 Revenue Management fees 441.9 452.3 502.9 Performance fees (5.6) 3.5 (3.9) Shareowner servicing fee
Slide 27: Adjusted: statement of income
Adjusted: statement of income Note: 1Q18 reflects the reclassification of certain revenue amounts from ‘Other revenue’ to ‘Shareowner servicing fees’. See adjusted financial measures reconciliation on slides 28 and 29 for additional information. 3 months ended 31 Mar 2019 31 Dec 2018 31 Mar 2018 Rev
Slide 28: Alternative performance measures
Alternative performance measures Reconciliation of adjusted financial measures Note: Reconciliation to be used in conjunction with slide 29. Footnotes included on slide 30. 3 months ended 31 Mar 2019 31 Dec 2018 31 Mar 2018 Reconciliation of revenue to adjusted revenue Revenue 519.3 545.1 587.7 Dist
Slide 29: Alternative performance measures (cont'd)
Alternative performance measures (cont’d) Reconciliation of adjusted financial measures Note: Reconciliation to be used in conjunction with slide 28. Footnotes included on slide 30. 3 months ended 31 Mar 2019 31 Dec 2018 31 Mar 2018 Reconciliation of net income to adjusted net income, attributable t
Slide 30: Footnotes to reconciliation of adjusted financial measures
Alternative performance measures (cont’d) Footnotes to reconciliation of adjusted financial measures 1 Distribution expenses are paid to financial intermediaries for the distribution of JHG’s investment products. JHG management believes that the deduction of third-party distribution, service and adv
Slide 31: Performance fees
1Q19 (US$m) 4Q18 (US$m) 1Q18 (US$m) AUM generating 1Q19 pfees (US$bn) # of funds generating 1Q19 pfees Frequency Timing SICAVs – 0.1 1.0 – – 23 annually; 2 quarterly 23 at June; 2 on quarters Offshore Absolute Return – 0.3 0.4 0.2 2 Quarterly / Annually Various Segregated Mandates1 3.3 14.7 2.5 11.8
Slide 32: US mutual funds with performance fees
US mutual funds with performance fees Mutual funds with performance fees¹ AUM 31 Mar 2019 US$m Benchmark Base fee Performance fee2 Performance cap/(floor) vs benchmark 1Q19 P&L impact US$’000 Research Fund³ 13,965 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (4,040) Forty Fund³ and Portfolio 13
Slide 33: Long-term incentive compensation
Long-term incentive compensation Estimated future long-term incentive compensation amortisation US$m Amount remaining to expense 2019 2020 2021 2022 2023 2016 annual grant 7 7 – – – – 2017 annual grant 24 18 6 – – – 2018 annual grant 82 52 24 6 – – 2019 annual grant 148 72 49 22 4 1 Other¹ 111 37 30
Slide 34: Contacts
Contacts Investor enquiries John Groneman Global Head of Investor Relations +44 (0) 20 7818 2106 john.groneman@janushenderson.com Jim Kurtz US Investor Relations Manager +1 (303) 336 4529 jim.kurtz@janushenderson.com Melanie Horton Non-US Investor Relations Manager +44 (0) 20 7818 2905 melanie.horto
Slide 35: Forward looking information
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 concerning potential future events involving Janus Henderson Group plc that could differ m
Slide 36: Janus Henderson Investors
Janus Henderson Investors 201 Bishopsgate, London EC2M 3AE Tol: 020 7818 1818 Fax: 020 7818 1819 Past performances no guarantee of future results. Investing involves risk, including the possible oss of principal and fluctuation of value. Forward looking information ‘This presentation includes statem
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