Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q1 2022 Earnings Presentation
37 slides from Janus Henderson's earnings presentation, May 4, 2022
Slide 1: First Quarter 2022 Results
Wednesday 4 May 2022 FIRST QUARTER 2022 RESULTS Roger Thompson Interim Chief Executive Officer Chief Financial Officer
Slide 2: Business and Financial Update
BUSINESS AND FINANCIAL UPDATE
Slide 3: Key metrics – Q1 2022 vs Q4 2021
3 1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on s li de 23. 2 See adjusted financial measures reconciliation on slides 29 and 30 for additional information. Key metrics – Q1 2022 vs Q4 2021 Q1 2022 RESULTS ▪ Long - term
Slide 4: Investment performance
4 Note: Full performance disclosures detailed in the appendix on slides 23 and 24. The top two Morningstar quartiles represent funds in the top half of their category based on total return. The top quartile r ep resents those in the top 25%. Refer to slide 24 for the percent of funds in the top 2 qu
Slide 5: Quarterly flows
5 21.0 17.5 14.5 22.9 20.5 18.2 15.9 19.2 17.7 (31.2) (21.8) (17.3) (20.6) (21.7) (19.4) (16.7) (20.2) (23.9) (10.2) (4.3) (2.8) 2.3 (1.2) (1.2) (0.8) (1.0) (6.2) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2020 to Q1 2022 total flows (US$bn) Redemptions Sales Net sale
Slide 6: Flows by client type
6 3.2 4.0 2.4 4.2 3.1 (4.7) (4.7) (3.9) (4.3) (6.8) (1.5) (0.6) (1.5) (0.1) (3.6) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 16.4 13.5 12.8 14.0 14.0 (15.3) (13.3) (11.6) (14.1) (15.6) 1.1 0.1 1.2 (0.1) (1.7) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 0.9 0.7 0.7 1.0 0.6 (1.8) (1.4) (1.2) (1.7) (1.5) (0.9
Slide 7: Flows by capability
7 FLOWS BY CAPABILITY Excluding Intech 8.5 6.0 2.3 0.9 (12.3) (6.0) (4.5) (1.1) (3.8) - (2.2) (0.2) Equities Fixed Income Multi-Asset Alternatives Annualised gross sales¹ Redemptions Sales Net sales / (redemptions) 14% 31% 16% 36% Annualised gross redemptions¹ (20%) (31%) (31%) (42%) Q1 2022 flows b
Slide 8: Statement of income: US GAAP and adjusted
8 STATEMENT OF INCOME US GAAP and adjusted Note: See adjusted financial measures reconciliation on slides 29 and 30 for additional information. US GAAP Adjustments Adjusted Revenue Management fees 514.0 (57.0) 457.0 Performance fees (8.4) – (8.4) Shareowner servicing fees 62.4 (52.2) 10.2 Other reve
Slide 9: Summary financial results
9 (US$, except margin data) Q1 2022 Q4 2021 Change Q1 2022 vs Q4 2021 Q1 2021 Change Q1 2022 vs Q1 2021 Average AUM 396.7bn 429.4bn (8%) 405.3bn (2%) Total revenue 620.0m 697.2m (11%) 644.0m (4%) Operating income 124.6m 157.6m (21%) 192.5m (35%) Operating margin 20.1% 22.6% (2.5ppt) 29.9% (9.8ppt) U
Slide 10: Revenue
10 REVENUE Q1 2022 adjusted revenue reflects lower average assets and performance fees Note: See adjusted financial measures reconciliation on slides 29 and 30 for additional information. 1 Net margin based on management fees net of distribution expenses. Adjusted revenue – Q1 2022 vs Q4 2021 (US$m)
Slide 11: Operating expenses
11 ▪ Lower other operating expenses driven by marketing and general and administrative expenses ▪ Full - year 2022 expense expectations ▪ Adjusted compensation ratio of low 40s ▪ Adjusted non - compensation annual growth in the low teens ▪ Statutory tax rate of 23 - 25% OPERATING EXPENSES Adjusted o
Slide 12: Capital resources
12 CAPITAL RESOURCES Strong liquidity position ▪ Cash and investment securities 1 totalled US$1,292m compared to outstanding debt of US$310m ▪ Decrease in cash primarily due to annual payouts from annual incentive compensation programme ▪ Board declared a dividend of US$0.39 per share to be paid on
Slide 13: Q&A
Q&A Janus Henderson
Slide 14: Appendix
APPENDIX
Slide 15: Assets under management
15 ASSETS UNDER MANAGEMENT AUM as at 31 Mar 2022: US$361.0bn 61% 21% 15% 3% Equities Fixed Income Multi-Asset Alternatives 55% 23% 22% Intermediary Institutional Self-Directed 58% 32% 10% North America EMEA & LatAm Asia Pacific By client type By capability By client location US$221.3bn US$75.5bn US$
Slide 16: Investment management capabilities
16 INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Equities US$221.3bn AUM 31 Mar 22 US$361.0bn Fixed Income US$75.5bn Multi - Asset US$53.9bn Self - Directed Intermediary Institutional Institutional Institutional Alternatives US$10.3bn Intermediary Equities ▪ Wide range of equity strat
Slide 17: Largest strategies by capability
17 Capability Strategy AUM (US$bn) 31 Mar 22 US Concentrated Growth 28.4 US Mid Cap Growth 26.6 US Research Growth Equity 20.3 Global Life Sciences 13.6 Global Technology and Innovation 10.4 Absolute Return Income 10.0 Global Strategic Fixed Income 9.8 Sterling Buy & Maintain Credit 8.7 Australian F
Slide 18: Total flows including Intech
18 21.4 17.9 15.8 23.2 20.7 18.4 16.0 19.3 17.9 (33.6) (26.1) (18.7) (24.3) (24.0) (20.9) (21.2) (24.5) (29.8) (12.2) (8.2) (2.9) (1.1) (3.3) (2.5) (5.2) (5.2) (11.9) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2020 to Q1 2022 total flows (US$bn) Redemptions Sales Net
Slide 19: Quarterly flows by client type
19 3.3 4.2 2.5 4.3 3.3 (6.8) (6.0) (8.3) (8.5) (12.4) (3.5) (1.8) (5.8) (4.2) (9.1) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 16.5 13.5 12.9 14.0 14.0 (15.4) (13.5) (11.7) (14.2) (15.8) 1.1 - 1.2 (0.2) (1.8) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 0.9 0.7 0.6 1.0 0.6 (1.8) (1.4) (1.2) (1.8) (1.6) (0.9
Slide 20: Quarterly flows by capability: Equities and Fixed Income
20 10.5 8.6 7.5 8.1 8.5 (12.0) (10.5) (10.1) (11.3) (12.3) (1.5) (1.9) (2.6) (3.2) (3.8) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Equities (US$bn) 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income
Slide 21: Quarterly flows by capability: Multi-Asset, Quant, Alternatives
21 0.2 0.2 0.1 0.1 0.2 (2.3) (1.5) (4.5) (4.3) (5.9) (2.1) (1.3) (4.4) (4.2) (5.7) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 3.0 2.4 2.6 4.3 2.3 (2.2) (1.9) (1.8) (2.2) (4.5) 0.8 0.5 0.8 2.1 (2.2) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 1.1 1.3 1.1 1.2 0.9 (2.0) (1.0) (0.8) (1.2) (1.1) (0.9) 0.3 0.3 -
Slide 22: Net flows by capability
22 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Equities Fixed Income Multi-Asset Quantitative Equities Alternatives Q1 2020 to Q1 2022 total net flows by capability (US$bn) NET FLOWS BY CAPABILITY (12.2) (8.2) (2.9) (1.1) (3.3) (2.5) (5.2) (5.2) (11.9)
Slide 23: Investment performance: AUM outperforming benchmark
23 Note: Outperformance is measured based on composite performance gross of fees vs primary benchmark, except where a strategy has no benchmark index or corresponding composite in which case the most relevant metric is used: (1) composite gross of fees vs zero for absolute retu rn strategies, (2) fu
Slide 24: Investment performance: Morningstar quartiles
24 INVESTMENT PERFORMANCE Note: Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Henderson Capital Funds (Du blin based), Dublin and UK OEIC and Investment Trusts, Luxembourg SICAVs and Australian Managed Investment Schemes. The top two Morningstar quart
Slide 25: Investment performance (continued): Equities
25 INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 21 17 24 38 42 47 44 45 41 45 44 46 57 48 59 56 12 29 38 23 26 13 17 19 14 14 19 29 18 25 26 33 33 47 62 61 67 59 61 63 55 60 64 75 75 73 86 89 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2
Slide 26: Investment performance (continued): Fixed Income, Multi-Asset
26 INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) 2 nd quartile 1 st quartile Fixed Income Multi - Asset 30 25 21 21 71 70 61 40 40 56 55 60 33 48 46 29 27 59 43 25 9 7 19 45 35 17 21 24 38 21 23 54 57 84 64 47 80 77 81 85 75 73 75 83 71 69 70 83 Q2 2021 Q3 20
Slide 27: Investment performance (continued): Quantitative Equities, Alternatives
27 7 11 7 11 7 11 11 34 40 11 2 41 11 0 n/a 47 11 11 n/a 7 11 13 n/a 0 0 0 n/a Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 0 14 2 6 20 24 8 25 22 65 64 61 50 66 71 71 26 13 48 56 56 46 26 4 6 9 36 15 48 32 29 29 27 2
Slide 28: US GAAP: Statement of Income
28 US GAAP: STATEMENT OF INCOME (US$m, except per share data or as noted) 31 Mar 22 31 Dec 21 31 Mar 21 Revenue Management fees 514.0 565.9 514.9 Performance fees (8.4) 7.7 17.0 Shareowner servicing fees 62.4 68.3 60.8 Other revenue 52.0 55.3 51.3 Total revenue 620.0 697.2 644.0 Operating expenses E
Slide 29: Alternative performance measures: reconciliation
29 ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Note: Reconciliation to be used in conjunction with slide 30. Footnotes included on slide 31. (US$m, except per share data) 31 Mar 22 31 Dec 21 31 Mar 21 Reconciliation of revenue to adjusted revenue Revenue 620.0 697.
Slide 30: Alternative performance measures: reconciliation (continued)
30 ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) (US$m, except per share data) 31 Mar 22 31 Dec 21 31 Mar 21 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 78.7 132.5 155.5 Long-t
Slide 31: Footnotes to reconciliation of adjusted financial measures
31 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 i
Slide 32: Capital management
32 CAPITAL MANAGEMENT Note: JHG purchases shares on market for the annual share grants associated with variable compensation, which is not included i n the above share repurchases. Numbers may not cast due to rounding. 1 Total shares outstanding reflect amounts disclosed on Forms 10 - Q or 10 - K fo
Slide 33: Performance fees
33 PERFORMANCE FEES Note: Performance fees include prior quarter accrual true - ups. 1 AUM data present US mutual fund AUM subject to performance fees as at 31 March 2022. Janus Investment Funds and Janus Aspen S eri es Portfolios are counted as distinct and separate funds. Q1 2022 (US$m) Q4 2021 (U
Slide 34: US mutual funds with performance fees
34 US MUTUAL FUNDS WITH PERFORMANCE FEES Note: Numbers may not cast due to rounding. 1 The funds listed have a performance - based investment advisory fee that adjusts up or down based on performance relative to a ben chmark over 36 - month rolling periods. Please see the funds’ Statements of Additi
Slide 35: Long-term incentive compensation
35 LONG - TERM INCENTIVE COMPENSATION Note: Annual grants generally vest over three and four years. Assumed no forfeitures in future periods. Assumed no change in fut ure values related to market or currency, which would impact expense related to cash - based awards (MFSAs, DIP and DEP funds) and so
Slide 36: Contacts
36 CONTACTS Investor enquiries Melanie Horton Co - Head Investor Relations (Non - US) +44 (0)20 7818 2905 melanie.horton@janushenderson.com Jim Kurtz Co - Head Investor Relations (US) +1 303 336 4529 jim.kurtz@janushenderson.com Investor Relations investor.relations@janushenderson.com Media enquirie
Slide 37: Contact us and forward-looking information
201 Bishopsgate London EC2M 3AE United Kingdom www.janushenderson.com Contact us Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and flu ctu ation of value. Forward - looking information This presentation includes statements conce
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