Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q2 2024 Earnings Presentation
37 slides from Janus Henderson's earnings presentation, Aug 1, 2024
Slide 1: Q2 2024 Results
Q2 2024 RESULTS Thursday, August 1, 2024 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer
Slide 2: Key metrics – Q2 2024 vs Q1 2024
Q2 2024 RESULTS Key metrics – Q2 2024 vs Q1 2024 Investment performance remains solid Q2 2024 Q1 2024 Investment outperformance1 AUM increased 3% to $361.4 billion 3-/5-/10-year 63/66/84% 60/68/85% Net flows of $1.7 billion compared to Total AUM $361.4bn $352.6bn $(3.0) billion in Q1 2024 Net
Slide 3: Investment performance remains solid
INVESTMENT PERFORMANCE Investment performance remains solid % of AUM outperforming benchmark % of mutual fund AUM in top 2 Morningstar quartiles As of June 30, 2024 As of June 30, 2024 Capability 1-year 3-year 5-year 10-year Capability 1-year 3-year 5-year 10-year Equities 58% 53% 54% 79% Equities 7
Slide 4: Quarterly flows
QUARTERLY FLOWS We remain encouraged by improving flow trends, including in both gross sales and redemptions Total flows ($ in billions) 19.5 18.1 16.4 14.8 15.2 14.4 15.9 11.4 11.8 5.5 1.7 (0.5) (2.6) (3.1) (3.0) (7.8) (5.8) (11.0) (14.0) (15.7) (14.4) (17.2) (17.5) (18.9) (16.4) (24.2) (25.8) Q2 2
Slide 5: Flows by client type
FLOWS BY CLIENT TYPE Flows reflect a 45% year-over-year increase in Intermediary gross sales and improvement in Institutional Intermediary Institutional Self-Directed ($ in billions) ($ in billions) ($ in billions) 12.4 13.2 11.6 9.1 8.9 5.8 4.4 2.4 1.9 2.6 2.5 2.9 - 1.0 0.2 0.3 0.3 0.3 0.6 0.5 (0.4
Slide 6: Flows by capability
FLOWS BY CAPABILITY Fixed Income and Alternatives flows were positive, and Equities AUM continues to gain market share, despite industry challenges Q2 2024 flows by capability ($ in billions) Sales Redemptions Net sales / (redemptions) 7.0 8.3 1.2 3.3 1.6 0.6 (1.4) (0.8) (0.6) (5.0) (2.4) (8.4) Equi
Slide 7: U.S. GAAP financial results
U.S. GAAP FINANCIAL RESULTS Change Change Q2 2024 vs Q2 2024 vs ($ in millions, except per share data) Q2 2024 Q1 2024 Q1 2024 Q2 2023 Q2 2023 Revenue Management fees 472.8 459.4 3% 423.5 12% Performance fees 7.4 (13.1) nm (5.9) nm Shareowner servicing fees 58.5 57.2 2% 53.3 10% Other revenue 49.7 4
Slide 8: Adjusted financial results
ADJUSTED FINANCIAL RESULTS Change Change Q2 2024 vs Q2 2024 vs ($ in millions, except as noted) Q2 2024 Q1 2024 Q1 2024 Q2 2023 Q2 2023 Revenue Management fees 424.6 413.9 3% 381.7 11% Performance fees 7.4 (13.1) nm (5.9) nm Shareowner servicing fees 11.2 11.3 (1%) 10.0 12% Other revenue 15.1 14.7 3
Slide 9: Q2 2024 adjusted financial highlights
Q2 2024 ADJUSTED FINANCIAL HIGHLIGHTS Increase from Q1 2024 adjusted revenue driven primarily by higher Adjusted average AUM and seasonal performance fees Revenue Decline in net management fee margin primarily due to asset mix shift Q2 2024 adjusted operating expenses reflect continued financi
Slide 10: Capital resources
CAPITAL RESOURCES Strong liquidity position Balance sheet profile – carrying value Cash and investments1 totaled March 31, 2024 vs. June 30, 2024 $1,452 million compared to ($ in millions) outstanding debt of $303 million 1,452.0 1,356.5 Board declared a dividend of $0.39 per share to be paid on
Slide 11: Capital management
CAPITAL MANAGEMENT Commitment to return of capital Q3 2022 to Q2 2024 quarterly capital return ($ in millions) Dividends Share repurchases 144.5 126.6 81.3 96.7 61.9 64.7 64.9 64.7 64.6 64.7 34.1 64.7 63.2 62.6 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Dividend paid / share ($)
Slide 12: 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: Brand profile
BRAND PROFILE Recent external survey results highlight progress in strengthening our brand profile, positioning Janus Henderson as a trusted financial partner Global Intermediary Global Institutional U.S. Intermediary Broadridge Fund Brand 50 2024 NMG 2023 Global Asset Citywire Research Pro Buyer Ma
Slide 14: Progress summary
PROGRESS SUMMARY We believe we are on the path to delivering consistent results for our clients, shareholders, and employees CLIENT FINANCIAL Maintaining solid investment Sustaining net management fee performance (versus benchmarks margin and peers) Improving performance fees Improving clien
Slide 15: Summary: strategy to lead to organic growth
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 15
Slide 16: Q&A
Q&A GROUP PLC
Slide 17: Appendix
APPENDIX GROUP PLC
Slide 18: Assets under management
ASSETS UNDER MANAGEMENT AUM as of June 30, 2024: $361.4 billion By client type By capability By client location 2% 10% 21% 14% 29% 55% 21% 63% 61% 24% Intermediary $200.1bn Equities $226.2bn North America $221.3bn Self-Directed $85.0bn Fixed Income $74.5bn EMEA & LatAm $104.2bn Institutional $76.3bn
Slide 19: Investment management capabilities
INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Alternatives $9.2bn Equities Wide range of equity strategies Multi-Asset encompassing different geographic $51.5bn focuses and investment styles Fixed Income Intermediary Intermediary Innovative and differentiated techniques designed t
Slide 20: Largest strategies by capability
LARGEST STRATEGIES BY CAPABILITY AUM ($bn) Capability Strategy 30 Jun 24 US Concentrated Growth 29.7 US Mid Cap Growth 27.5 Equity US Research Growth Equity 25.2 Global Life Sciences 12.2 Europe Large Cap Blend Equity 9.2 AAA CLO 10.5 Australian Fixed Income 9.6 Fixed Income Absolute Return Income 6
Slide 21: Quarterly flows by capability: Equities and Fixed Income
QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income Equities Fixed Income ($ in billions) ($ in billions) 8.6 8.1 7.0 8.3 6.0 6.9 5.7 5.1 5.8 4.8 3.3 1.0 0.9 1.7 0.1 - (1.1) (1.4) (2.3) (3.2) (4.1) (3.9) (5.2) (5.7) (5.0) (8.6) (8.0) (8.4) (9.2) (9.2) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2
Slide 22: Quarterly flows by capability: Multi-Asset and Alternatives
QUARTERLY FLOWS BY CAPABILITY Multi-Asset and Alternatives Multi-Asset Alternatives ($ in billions) ($ in billions) 1.2 1.1 1.0 1.0 1.3 1.6 0.4 0.3 0.5 0.7 0.6 (0.8) (0.5) (0.2) (0.6) (0.7) (0.7) (1.4) (0.8) (0.8) (1.2) (1.2) (0.8) (0.7) (1.9) (1.8) (1.7) (2.4) (2.1) (2.4) Q2 2023 Q3 2023 Q4 2023 Q1
Slide 23: Net flows by capability
NET FLOWS BY CAPABILITY Total net flows by capability Equities ($ in billions) Fixed Income Multi-Asset Alternatives 5.5 1.7 (0.5) (2.6) (3.0) (3.1) (5.8) (7.8) (11.0) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 23
Slide 24: Investment performance: AUM outperforming benchmark
INVESTMENT PERFORMANCE % of AUM outperforming benchmark Q3 2023 Q4 2023 Q1 2024 Q2 2024 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 83% 46% 56% 60% 42% 48% 57% 60% 60% 48% 55% 80% 58% 53% 54% 79% Fixed Income 56% 61% 77% 91% 79% 66% 88% 91% 84% 69% 88% 92%
Slide 25: Investment performance: mutual fund AUM in top Morningstar quartiles
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles Q3 2023 Q4 2023 Q1 2024 Q2 2024 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 76% 69% 79% 88% 58% 66% 80% 91% 60% 73% 78% 86% 70% 76% 83% 87% Fixed Income 42% 33% 64% 61% 59% 47% 66%
Slide 26: Mutual fund AUM in top Morningstar quartiles (continued)
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 1st quartile 2nd quartile 87 89 86 88 83 79 80 78 75 75 77 74 66 69 28 34 64 31 33 59 19 19 31 24 22 31 39 36 18 38 43 34 55 58 59 55 55 55 51 49 51 48 51 41 42 26 31 21 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 20
Slide 27: Mutual fund AUM quartiles: Equities and Fixed Income
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Equities Fixed Income 1st quartile 2nd quartile 88 91 86 87 83 79 80 78 78 76 76 73 70 70 69 66 36 43 67 69 66 65 67 12 64 64 40 40 61 58 60 23 38 59 23 38 55 57 26 29 41 51 49 15 26 30 28 23 39 32 47 12 20 42 16
Slide 28: Mutual fund AUM quartiles: Multi-Asset and Alternatives
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Multi-Asset Alternatives 1st quartile 2nd quartile 100100 100 96 97 96 96 96 96 95 95 95 95 95 96 93 93 95 93 91 1 3 4 4 3 1 3 1 1 85 85 85 80 12 43 43 38 41 77 78 78 92 93 94 94 95 95 44 42 39 92 93 92 92 93 93 9
Slide 29: U.S. GAAP: Statement of income
U.S. GAAP: STATEMENT OF INCOME Three months ended ($m, except per share data or as noted) 30 Jun 24 31 Mar 24 30 Jun 23 Revenue Management fees 472.8 459.4 423.5 Performance fees 7.4 (13.1) (5.9) Shareowner servicing fees 58.5 57.2 53.3 Other revenue 49.7 48.2 45.6 Total revenue 588.4 551.7 516.5 Op
Slide 30: Alternative performance measures: reconciliation
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Three months ended ($m, except per share data) 30 Jun 24 31 Mar 24 30 Jun 23 Reconciliation of revenue to adjusted revenue Revenue 588.4 551.7 516.5 Management fees 1 (48.2) (45.5) (41.8) Shareowner servicing fees 1 (47.3
Slide 31: Alternative performance measures: reconciliation (continued)
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) Three months ended ($m, except per share data) 30 Jun 24 31 Mar 24 30 Jun 23 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 129.7 130
Slide 32: Footnotes to reconciliation of adjusted financial measures
ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an in
Slide 33: Performance fees
PERFORMANCE FEES AUM generating # of funds Q2 2024 generating Q2 2024 Q1 2024 Q2 2023 pfees Q2 2024 ($m) ($m) ($m) ($bn) pfees Frequency Timing 17 annually; 17 at June; SICAVs 11.8 0.2 1.4 3.3 7 3 quarterly 3 on quarters UK OEICs and unit trusts 5.6 – – 1.2 2 annually various quarterly / Absolute re
Slide 34: U.S. mutual funds with performance fees
U.S. MUTUAL FUNDS WITH PERFORMANCE FEES AUM Performance Q2 2024 P&L 30 Jun 24 Base Performance cap/(floor) vs impact Mutual funds with performance fees¹ ($m) Benchmark fee fee2 benchmark ($000s) Research Fund and Portfolio 24,188 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (5,837) Forty Fund a
Slide 35: Long-term incentive compensation
LONG-TERM INCENTIVE COMPENSATION Estimated future long-term incentive compensation amortization Amount remaining to ($ in millions) expense 2024 2025 2026 2027 2028 2021 annual grant 4 4 – – – – 2022 annual grant 32 29 3 – – – 2023 annual grant 60 41 17 2 – – 2024 annual grant 122 62 40 18 2 – Other
Slide 36: Contacts
CONTACTS Investor enquiries Jim Kurtz Head of Investor Relations +1 303 336 4529 jim.kurtz@janushenderson.com Investor Relations investor.relations@janushenderson.com Media enquiries Nicole Mullin Director of Corporate Communications, EMEA, LatAm & APAC +44 (0)20 7818 2511 nicole.mullin@janushenders
Slide 37: 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 Certain statements in this presentation not bas
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