Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q1 2021 Earnings Presentation
35 slides from Janus Henderson's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Results
Thursday 29 April 2021 FIRST QUARTER 2021 RESULTS Dick Weil Chief Executive Officer Roger Thompson Chief Financial Officer
Slide 2: Key metrics – Q1 2021 vs Q4 2020
2 1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on slide 22. 2 See adjusted financial measures reconciliation on slides 28 and 29 for additional information. Key metrics – Q1 2021 vs Q4 2020 Q1 2021 RESULTS ▪ Long-term inve
Slide 3: Business and Financial Update
BUSINESS AND FINANCIAL UPDATE Roger Thompson Chief Financial Officer
Slide 4: Firmwide investment performance remains solid
4 INVESTMENT PERFORMANCE Firmwide investment performance remains solid Note: Full performance disclosures detailed in the appendix on slides 22 and 23. The top two Morningstar quartiles represent funds in the top half of their category based on total return. Refer to slide 23 for the 10-year period,
Slide 5: Total flows
5 15.6 15.6 15.3 18.7 21.4 17.9 15.8 23.2 20.7 (23.0) (25.4) (18.8) (25.4) (33.6) (26.1) (18.7) (24.3) (24.0) (7.4) (9.8) (3.5) (6.7) (12.2) (8.2) (2.9) (1.1) (3.3) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2019 to Q1 2021 total flows (US$bn) Redemptions Sales Net sa
Slide 6: Quarterly flows by client type
6 6.3 4.2 3.7 8.8 3.3 (14.1) (12.7) (5.6) (10.0) (6.8) (7.8) (8.5) (1.9) (1.2) (3.5) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 14.1 13.0 11.5 13.5 16.5 (17.2) (12.1) (11.6) (12.5) (15.4) (3.1) 0.9 (0.1) 1.0 1.1 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 1.0 0.7 0.6 0.9 0.9 (2.3) (1.3) (1.5) (1.8) (1.8) (
Slide 7: Q1 2021 flows by capability
7 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. Q1 2021 FLOWS BY CAPABILITY Net flows reflect strength in Fixed Income and Multi-Asset 10.5 5.9 3.0 0.2 1.1 (12.0) (5.5) (2.2) (2.3) (2.0) (1.5) 0.4 0.8 (2.1) (0.9) Equities Fixed Income Multi-Asset Q
Slide 8: Statement of income: US GAAP and adjusted
8 US GAAP Adjustments Adjusted Revenue Management fees 514.9 Performance fees 17.0 Shareowner servicing fees 60.8 Other revenue 51.3 Total revenue 644.0 (127.4) 516.6 Operating expenses Employee compensation and benefits 174.6 Long-term incentive plans 53.5 Distribution expenses 127.4 Investment adm
Slide 9: Summary financial results
9 (US$, except margin data) Q1 2021 Q4 2020 Change Q1 2021 vs Q4 2020 Q1 2020 Change Q1 2021 vs Q1 2020 Average AUM 405.3bn 379.0bn 7% 352.7bn 15% Total revenue 644.0m 657.2m (2%) 554.9m 16% Operating income (loss) 192.5m 227.0m (15%) (332.4)m nm Operating margin 29.9% 34.5% (4.6ppt) (59.9%) 89.8ppt
Slide 10: Revenue
10 REVENUE Q1 2021 adjusted revenue reflects higher average assets and seasonally lower performance fees compared to Q4 2020 Note: See adjusted financial measures reconciliation on slides 28 and 29 for additional information. 1 Net margin based on management fees net of distribution expenses. Adjust
Slide 11: Operating expenses
11 OPERATING EXPENSES Increase in adjusted expenses primarily reflects seasonally higher compensation Note: See adjusted financial measures reconciliation on slides 28 and 29 for additional information. Adjusted operating expenses – Q4 2020 vs Q1 2021 (US$m) (US$m) Q1 2021 US GAAP Adjustments Q1 202
Slide 12: Capital resources
12 CAPITAL RESOURCES Strong liquidity position ▪ Cash and investment securities (excluding those assets held by consolidated VIEs and VREs1) totalled US$1,048m compared to outstanding debt of US$313m ▪ Board declared a dividend of US$0.38 per share to be paid on 27 May to shareholders on record at t
Slide 13: Capital management
13 CAPITAL MANAGEMENT Note: JHG purchases shares on market for the annual share grants associated with variable compensation, which is not included in 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 for eac
Slide 14: Q&A
Q&A mal ital
Slide 15: Appendix
APPENDIX GROUP PLC
Slide 16: Assets under management
16 ASSETS UNDER MANAGEMENT AUM at 31 March 2021: US$405.1bn 56% 20% 12% 10% 2% Equities Fixed Income Multi-Asset Quantitative Equities Alternatives 49% 31% 20% Intermediary Institutional Self-Directed 55% 31% 14% North America EMEA & LatAm Asia Pacific By client type By capability By client location
Slide 17: Investment management capabilities
17 INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Equities US$224.9bn AUM 31 Mar 21 US$405.1bn Fixed Income US$79.5bn Multi-Asset US$49.5bn Self-directed Intermediary Institutional Institutional Institutional Quantitative Equities US$41.3bn Institutional Alternatives US$9.9bn Intermedi
Slide 18: Largest strategies by capability
18 LARGEST STRATEGIES BY CAPABILITY Note: Numbers may not cast due to rounding. Capability Strategy AUM (US$bn) 31 Mar 21 US Mid Cap Growth 29.8 US Concentrated Growth 25.2 US Research Growth Equity 20.0 US SMID Cap Growth 14.1 Global Life Sciences 13.9 Absolute Return Income 12.2 Sterling Buy & Mai
Slide 19: Quarterly flows by capability: Equities and Fixed Income
19 8.8 7.9 5.8 10.3 10.5 (15.7) (12.1) (10.9) (10.4) (12.0) (6.9) (4.2) (5.1) (0.1) (1.5) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Equities (US$bn) 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income
Slide 20: Quarterly flows by capability: Multi-Asset, Quant Equities, Alternatives
20 0.4 0.4 1.3 0.3 0.2 (2.4) (4.3) (1.4) (3.7) (2.3) (2.0) (3.9) (0.1) (3.4) (2.1) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 3.5 2.5 2.3 3.1 3.0 (2.5) (1.8) (1.7) (1.9) (2.2) 1.0 0.7 0.6 1.2 0.8 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 0.7 0.8 0.5 0.8 1.1 (1.6) (0.9) (0.6) (0.8) (2.0) (0.9) (0.1) (0.1)
Slide 21: Net flows by capability
21 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Equities Fixed Income Multi-Asset Quantitative Equities Alternatives Q1 2019 to Q1 2021 total net flows by capability (US$bn) NET FLOWS BY CAPABILITY (12.2) (7.4) (9.8) (3.5) (6.7) (8.2) (2.9) (1.1) (3.3)
Slide 22: Investment performance: % of AUM outperforming benchmark
22 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 return strategies, (2) fun
Slide 23: Investment performance: Morningstar quartiles
23 INVESTMENT PERFORMANCE 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 Australian Managed Investment Schemes. The top two Morningstar quarti
Slide 24: Investment performance: Morningstar quartiles (continued)
24 INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 44 42 32 17 10 44 46 48 44 44 51 41 41 40 42 25 25 36 41 27 40 22 26 22 24 28 37 37 31 26 69 67 68 57 37 84 67 74 66 67 79 78 78 71 68 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 20
Slide 25: Investment performance: Fixed Income and Multi-Asset
25 INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) 2nd quartile 1st quartile Fixed Income Multi-Asset 37 41 56 54 27 52 64 67 71 69 44 41 49 49 38 38 36 19 16 43 30 23 11 8 11 27 33 24 24 35 75 77 76 70 69 82 86 78 79 79 70 74 72 73 73 Q1 2020 Q2 2020 Q3 2020 Q
Slide 26: Investment performance: Quantitative Equities and Alternatives
26 29 4 3 4 4 4 4 4 3 4 4 4 7 3 4 32 54 56 26 29 28 42 4 37 3 4 4 32 57 60 30 33 32 46 8 4 4 4 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 29 64 43 0 19 56 32 72 41 74 25 47 47 39 24 69 34 57 74 12 5 68 28 35 2 73 48 53 37 6
Slide 27: US GAAP: Statement of income
27 US GAAP: STATEMENT OF INCOME (US$m, except per share data or as noted) 31 Mar 21 31 Dec 20 31 Mar 20 Revenue Management fees 514.9 489.1 439.6 Performance fees 17.0 59.3 14.6 Shareowner servicing fees 60.8 57.9 50.3 Other revenue 51.3 50.9 50.4 Total revenue 644.0 657.2 554.9 Operating expenses E
Slide 28: Alternative performance measures
28 ALTERNATIVE PERFORMANCE MEASURES Note: Reconciliation to be used in conjunction with slide 29. Footnotes included on slide 30. Reconciliation of adjusted financial measures (US$m, except per share data) 31 Mar 21 31 Dec 20 31 Mar 20 Reconciliation of revenue to adjusted revenue Revenue 644.0 657.
Slide 29: Alternative performance measures (continued)
29 ALTERNATIVE PERFORMANCE MEASURES Note: Reconciliation to be used in conjunction with slide 28. Footnotes included on slide 30. Reconciliation of adjusted financial measures (continued) (US$m, except per share data) 31 Mar 21 31 Dec 20 31 Mar 20 Reconciliation of net income (loss) attributable to
Slide 30: Footnotes to reconciliation of adjusted financial measures
30 ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an
Slide 31: Performance fees
31 PERFORMANCE FEES Note: Performance fees include prior quarter accrual true-ups. 1 AUM data present US mutual fund AUM subject to performance fees as at 31 March 2021. Janus Investment Funds and Janus Aspen Series Portfolios are counted as distinct and separate funds. Q1 2021 (US$m) Q4 2020 (US$m)
Slide 32: US mutual funds with performance fees
32 US MUTUAL FUNDS WITH PERFORMANCE FEES Note: AUM data shown on a managed view. 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 benchmark over 36-month rolling periods. Please see th
Slide 33: Long-term incentive compensation
33 LONG-TERM INCENTIVE COMPENSATION Note: Annual grants generally vest over three and four years. Assumed no forfeitures in future periods. Assumed no change in future values related to market or currency, which would impact expense related to cash-based awards (MFSAs, DIP and DEP funds) and social
Slide 34: Contacts
34 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 enquiries Step
Slide 35: Contact us / 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 fluctuation of value. Forward looking information This presentation includes statements concernin
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