Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q3 2024 Earnings Presentation
36 slides from Janus Henderson's earnings presentation, Oct 31, 2024
Slide 1: Q3 2024 Results
Q3 2024 RESULTS Thursday, October 31, 2024 Ali Dibadj Chief Executive Officer Roger Thompson Chief Financial Officer
Slide 2: Key metrics – Q3 2024 vs Q2 2024
Q3 2024 RESULTS Key metrics – Q3 2024 vs Q2 2024 Investment performance remains solid Q3 2024 Q2 2024 Investment outperformance1 AUM increased 6% to $382.3 billion 3-/5-/10-year 71/67/85% 63/66/84% Net inflows of $0.4 billion Total AUM $382.3bn $361.4bn U.S. GAAP diluted EPS of $0.17 and Net
Slide 3: We continue to make meaningful progress across the business
Q3 2024 UPDATE We continue to make meaningful progress across the business Protect & Grow: Upskilling and utilizing data, people, and process best-practices across the organization Amplify: Leveraging the expertise and technology of recently acquired Tabula through Strategy expected launch of fi
Slide 4: Victory Park Capital
VICTORY PARK CAPITAL Diversify: Acquisition of 55% stake in Victory Park Capital adds scale and diversification to our liquid and less liquid alternatives capabilities Strategic Rationale Expands JHG further into private credit, enhancing scale and diversification in alternatives Global private cr
Slide 5: Investment performance remains solid
INVESTMENT PERFORMANCE Investment performance remains solid % of AUM outperforming benchmark % of mutual fund AUM in top 2 Morningstar quartiles As of September 30, 2024 As of September 30, 2024 Capability 1-year 3-year 5-year 10-year Capability 1-year 3-year 5-year 10-year Equities 63% 61% 54% 80%
Slide 6: Quarterly flows
QUARTERLY FLOWS Net inflows for consecutive quarters supported by a 36% year-over-year increase in gross sales Total flows ($ in billions) 19.5 18.1 14.8 15.2 14.4 15.9 16.1 11.4 11.8 5.5 1.7 0.4 (0.5) (2.6) (3.0) (3.1) (5.8) (11.0) (14.0) (15.7) (14.4) (15.7) (17.2) (17.5) (18.9) (16.4) (25.8) Q3 2
Slide 7: Flows by client type
FLOWS BY CLIENT TYPE Flows reflect continued strength in Intermediary and rebuilding of the pipeline in Institutional Intermediary Institutional Self-Directed ($ in billions) ($ in billions) ($ in billions) 12.4 13.2 13.3 11.6 8.9 2.6 2.9 4.4 2.4 1.8 2.5 2.3 - 1.0 0.2 0.3 0.3 0.6 0.5 0.5 (0.4) (1.3)
Slide 8: Flows by capability
FLOWS BY CAPABILITY Fixed Income and Alternatives flows were positive, and Equities flows were stable quarter over quarter Q3 2024 flows by capability ($ in billions) Sales Redemptions Net sales / (redemptions) 6.1 7.9 2.2 0.7 1.4 0.1 (0.4) (0.6) (1.5) (3.9) (1.8) (9.4) Equities Fixed Income Multi-A
Slide 9: U.S. GAAP financial results
U.S. GAAP FINANCIAL RESULTS Change Change Q3 2024 vs Q3 2024 vs ($ in millions, except per share data) Q3 2024 Q2 2024 Q2 2024 Q3 2023 Q3 2023 Revenue Management fees 502.8 472.8 6% 434.9 16% Performance fees 8.6 7.4 16% (15.8) nm Shareowner servicing fees 61.4 58.5 5% 54.9 12% Other revenue 52.0 49
Slide 10: Adjusted financial results
ADJUSTED FINANCIAL RESULTS Change Change Q3 2024 vs Q3 2024 vs ($ in millions, except as noted) Q3 2024 Q2 2024 Q2 2024 Q3 2023 Q3 2023 Revenue Management fees 451.4 424.6 6% 393.5 15% Performance fees 8.6 7.4 16% (15.8) nm Shareowner servicing fees 11.5 11.2 3% 11.0 5% Other revenue 16.6 15.1 10% 1
Slide 11: Q3 2024 adjusted financial highlights
Q3 2024 ADJUSTED FINANCIAL HIGHLIGHTS Increase from Q2 2024 adjusted revenue driven primarily by higher Adjusted average AUM Revenue Stable net management fee margin Increase in Q3 2024 operating expenses primarily reflect higher AUM, profit-based compensation, LTI expense, and previously comm
Slide 12: Capital resources
CAPITAL RESOURCES Strong liquidity position Balance sheet profile – carrying value Cash and investments1 totaled June 30, 2024 vs. September 30, 2024 $1,964 million compared to ($ in millions) outstanding debt of $699 million 1,964.1 524.3 Completed $400 million debt 1,452.0 offering and execute
Slide 13: Capital management
CAPITAL MANAGEMENT Commitment to return of capital Q4 2022 to Q3 2024 quarterly capital return ($ in millions) Dividends Share repurchases 144.5 126.6 102.0 81.3 96.7 61.9 34.1 39.7 64.9 64.7 64.6 64.7 64.7 63.2 62.6 62.3 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Dividend paid
Slide 14: Wrap-up
WRAP-UP We continue to make meaningful progress across the business We are executing on the three pillars of our strategic vision Investment performance is solid with at least two-thirds of AUM beating respective benchmarks over 1-, 3-, 5-, and 10-year periods Net flows were positive for the s
Slide 15: Q&A
Q&A GROUP PLC
Slide 16: Appendix
APPENDIX GROUP PLC
Slide 17: Assets under management
ASSETS UNDER MANAGEMENT AUM as of September 30, 2024: $382.3 billion By client type By capability By client location 3% 10% 21% 14% 29% 56% 21% 62% 61% 23% Intermediary $213.8bn Equities $237.1bn North America $232.5bn Self-Directed $87.4bn Fixed Income $81.3bn EMEA & LatAm $111.8bn Institutional $8
Slide 18: Investment management capabilities
INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Alternatives $10.4bn Equities Wide range of equity strategies Multi-Asset encompassing different geographic $53.5bn focuses and investment styles Fixed Income Intermediary Intermediary Innovative and differentiated techniques designed
Slide 19: Largest strategies by capability
LARGEST STRATEGIES BY CAPABILITY AUM ($bn) Capability Strategy 30 Sept 24 US Mid Cap Growth 30.6 US Concentrated Growth 30.6 Equity US Research Growth Equity 25.5 Global Life Sciences 12.9 Europe Large Cap Blend Equity 9.5 AAA CLO 12.6 Australian Fixed Income 9.9 Fixed Income Absolute Return Income
Slide 20: Quarterly flows by capability: Equities and Fixed Income
QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income Equities Fixed Income ($ in billions) ($ in billions) 8.1 7.9 8.3 7.0 6.9 5.7 6.0 5.8 6.1 4.8 3.3 2.2 1.7 0.9 0.1 (1.1) (1.4) (1.5) (2.3) (3.2) (3.9) (3.9) (5.2) (5.7) (5.0) (8.0) (8.4) (9.2) (9.2) (9.4) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Slide 21: 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 0.7 1.0 1.0 1.3 1.6 1.4 0.7 0.6 0.3 0.5 0.1 (0.5) (0.2) (1.2) (0.6) (0.6) (0.7) (1.4) (0.8) (0.8) (0.4) (0.8) (0.7) (1.9) (1.7) (2.4) (2.1) (2.4) (1.8) Q3 2023 Q4 2023 Q1 2024 Q2 2
Slide 22: 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 0.4 (0.5) (2.6) (3.0) (3.1) (5.8) (11.0) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 22
Slide 23: Investment performance
INVESTMENT PERFORMANCE % of AUM outperforming benchmark Q4 2023 Q1 2024 Q2 2024 Q3 2024 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 42% 48% 57% 60% 60% 48% 55% 80% 58% 53% 54% 79% 63% 61% 54% 80% Fixed Income 79% 66% 88% 91% 84% 69% 88% 92% 88% 72% 83% 92%
Slide 24: Investment performance: Morningstar quartiles
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles Q4 2023 Q1 2024 Q2 2024 Q3 2024 Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr Equities 58% 66% 80% 91% 60% 73% 78% 86% 70% 76% 83% 87% 77% 73% 80% 87% Fixed Income 59% 47% 66% 64% 67% 55% 65%
Slide 25: Investment performance: Morningstar quartiles (Group)
INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 1st quartile 2nd quartile 89 86 88 87 80 83 81 80 78 75 77 74 74 66 69 34 64 31 33 34 29 19 19 31 22 21 38 39 36 18 38 43 55 58 54 55 55 55 53 49 51 51 51 41 42 43 31 21 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 20
Slide 26: 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 86 87 87 83 81 80 78 80 77 76 78 73 73 71 70 70 66 67 69 66 65 67 67 43 40 40 23 64 58 60 23 38 44 59 57 23 26 55 57 24 26 38 49 29 41 51 49 15 26 30 28 23 20 32
Slide 27: 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 100 100 100 97 96 96 96 96 96 95 95 93 95 95 95 95 95 96 96 93 4 4 4 3 3 1 1 3 3 3 1 85 85 87 80 43 38 41 42 78 77 92 93 93 92 93 91 92 93 93 93 94 95 95 95 85 42
Slide 28: U.S. GAAP: Statement of income
U.S. GAAP: STATEMENT OF INCOME Three months ended ($m, except per share data or as noted) 30 Sep 24 30 Jun 24 30 Sep 23 Revenue Management fees 502.8 472.8 434.9 Performance fees 8.6 7.4 (15.8) Shareowner servicing fees 61.4 58.5 54.9 Other revenue 52.0 49.7 47.0 Total revenue 624.8 588.4 521.0 Oper
Slide 29: Alternative performance measures
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Three months ended ($m, except per share data) 30 Sep 24 30 Jun 24 30 Sep 23 Reconciliation of revenue to adjusted revenue Revenue 624.8 588.4 521.0 Management fees 1 (51.4) (48.2) (41.4) Shareowner servicing fees 1 (49.9
Slide 30: Alternative performance measures (continued)
ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) Three months ended ($m, except per share data) 30 Sep 24 30 Jun 24 30 Sep 23 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 27.3 129.
Slide 31: Footnotes to reconciliation of adjusted financial measures
ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an in
Slide 32: Performance fees
PERFORMANCE FEES AUM # of funds generating generating Q3 2024 Q2 2024 Q3 2023 Q3 2024 pfees Q3 2024 ($m) ($m) ($m) ($bn) pfees Frequency Timing 16 at June 30 SICAVs 13.8 11.8 0.7 2.4 1 18 annually 2 at Sept. 30 UK OEICs and unit trusts 0.2 5.6 – – – annually May 31 quarterly / Absolute return funds
Slide 33: U.S. mutual funds with performance fees
U.S. MUTUAL FUNDS WITH PERFORMANCE FEES AUM Performance Q3 2024 P&L 30 Sep 24 Base Performance cap/(floor) vs impact Mutual funds with performance fees¹ ($m) Benchmark fee fee2 benchmark ($000s) Research Fund and Portfolio 24,489 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (2,826) Forty Fund a
Slide 34: Long-term incentive compensation
LONG-TERM INCENTIVE COMPENSATION Estimated future long-term incentive compensation amortization Amount remaining to ($ in millions) expense 2024 2025 2026 2027 2028 2021 annual grant 3 3 – – – – 2022 annual grant 31 28 3 – – – 2023 annual grant 62 43 17 2 – – 2024 annual grant 125 64 41 18 2 – Other
Slide 35: 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 Candice Sun Global Head of Media Relations +1 303 336 5452 candice.sun@janushenderson.com Nicole Mullin Media Relatio
Slide 36: 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 — Q3 2024 Earnings Presentation on 6ix