Janus Henderson Group Plc · NYSE:JHG
Janus Henderson — Q4 2021 Earnings Presentation
41 slides from Janus Henderson's earnings presentation, Feb 3, 2022
Slide 1: Fourth Quarter and Full-Year 2021 Results
Thursday 3 February 2022 FOURTH QUARTER AND FULL - YEAR 2021 RESULTS Dick Weil Chief Executive Officer Roger Thompson Chief Financial Officer
Slide 2: 2021 Results and Progress
2021 RESULTS AND PROGRESS Dick Weil Chief Executive Officer
Slide 3: Full-Year 2021 Results
3 1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on s li de 27. 2 See adjusted financial measures reconciliation on slides 33 and 34 for additional information. FULL - YEAR 2021 RESULTS ▪ Long - term investment performance r
Slide 4: 2021 Progress and Update on Intech
4 2021 PROGRESS AND UPDATE ON INTECH Strengthened operating platform for sustained organic and inorganic growth Produce dependable investment outcomes ✓ Long - term investment performance remains solid; more than half of AUM outperforming benchmarks on a 1 - , 3 - and 5 - year basis ¹ ✓ Improved inv
Slide 5: Business and Financial Update
BUSINESS AND FINANCIAL UPDATE Roger Thompson Chief Financial Officer
Slide 6: Q4 2021 Results
6 1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on s li de 27. 2 See adjusted financial measures reconciliation on slides 33 and 34 for additional information. Key metrics – Q4 2021 vs Q3 2021 Q4 2021 RESULTS ▪ Long - term
Slide 7: Investment Performance
7 Capability 1 - year 3 - year 5 - year 10 - year Equities Fixed Income Multi - Asset Quantitative Equities Alternatives Total Excl. Quantitative Equities Capability 1 - year 3 - year 5 - year 10 - year Equities Fixed Income Multi - Asset Quantitative Equities Alternatives Total Excl. Quantitative E
Slide 8: Total Flows
8 18.7 21.4 17.9 15.8 23.2 20.7 18.4 16.0 19.3 (25.4) (33.6) (26.1) (18.7) (24.3) (24.0) (20.9) (21.2) (24.5) (6.7) (12.2) (8.2) (2.9) (1.1) (3.3) (2.5) (5.2) (5.2) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2019 to Q4 2021 total flows (US$bn) Redemptions Sales Net sa
Slide 9: Total Flows Excluding Quantitative Equities
9 18.4 21.0 17.5 14.5 22.9 20.5 18.2 15.9 19.2 (21.8) (31.2) (21.8) (17.3) (20.6) (21.7) (19.4) (16.7) (20.2) (3.4) (10.2) (4.3) (2.8) 2.3 (1.2) (1.2) (0.8) (1.0) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2019 to Q4 2021 total flows (US$bn) Redemptions Sales Net sale
Slide 10: Quarterly Flows by Client Type Excluding Quantitative Equities
10 8.6 3.2 4.0 2.4 4.2 (6.5) (4.7) (4.7) (3.9) (4.3) 2.1 (1.5) (0.6) (1.5) (0.1) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 13.4 16.4 13.5 12.8 14.0 (12.4) (15.3) (13.3) (11.6) (14.1) 1.1 1.1 0.1 1.2 (0.1) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.9 0.9 0.7 0.7 1.0 (1.7) (1.8) (1.4) (1.2) (1.7) (0.9) (
Slide 11: Q4 2021 Flows by Capability Excluding Quantitative Equities
11 Q4 2021 FLOWS BY CAPABILITY EXCLUDING QUANTITATIVE EQUITIES Net flows reflect strength in Fixed Income and Multi - Asset 8.1 5.6 4.3 1.2 (11.3) (5.5) (2.2) (1.2) (3.2) 0.1 2.1 - Equities Fixed Income Multi-Asset Alternatives Annualised gross sales¹ Redemptions Sales Net sales / (redemptions) 14%
Slide 12: US GAAP and Adjusted Income Statement
12 US GAAP Adjustments Adjusted US GAAP Adjustments Adjusted Revenue Management fees 565.9 (56.5) 509.4 2,189.4 (205.9) 1,983.5 Performance fees 7.7 – 7.7 102.7 – 102.7 Shareowner servicing fees 68.3 (56.2) 12.1 260.7 (214.7) 46.0 Other revenue 55.3 (34.6) 20.7 214.2 (131.0) 83.2 Total revenue 697.2
Slide 13: Summary Financial Results
13 (US$, except margin data) Q4 2021 Q3 2021 Change Q4 2021 vs Q3 2021 2021 2020 Change 2021 vs 2020 Average AUM 429.4bn 431.9bn (1%) 422.0bn 352.7bn 20% Total revenue 697.2m 687.4m 1% 2,767.0m 2,298.6m 20% Operating income 157.6m 248.3m (37%) 823.4m 157.8m nm Operating margin 22.6% 36.1% (13.5ppt)
Slide 14: Revenue
14 REVENUE Q4 2021 adjusted revenue up 1% quarter over quarter Note: See adjusted financial measures reconciliation on slides 33 and 34 for additional information. 1 Net margin based on management fees net of distribution expenses. Adjusted revenue – Q3 2021 vs Q4 2021 (US$m) Q4 2021 adjusted revenu
Slide 15: Operating Expenses
15 ▪ Change in compensation expense primarily due to long - term incentive compensation offset by lower variable compensation ▪ Higher other operating expenses driven by marketing, general and administrative expenses ▪ Full - year 2022 expense expectations ▪ Adjusted compensation ratio of low 40s ▪
Slide 16: Capital Resources
16 CAPITAL RESOURCES Strong liquidity position ▪ Cash and investment securities 1 totalled US$1,657m compared to outstanding debt of US$310m ▪ Increase in investment securities due to net seed investment ▪ Board declared a dividend of US$0.38 per share to be paid on 28 February to shareholders on re
Slide 17: Q&A
Q&A Janus Henderson
Slide 18: Appendix
APPENDIX
Slide 19: Assets Under Management
19 ASSETS UNDER MANAGEMENT AUM as at 31 Dec 2021: US$432.3bn 57% 18% 14% 9% 2% Equities Fixed Income Multi-Asset Quantitative Equities Alternatives 50% 29% 21% Intermediary Institutional Self-Directed 56% 30% 14% North America EMEA & LatAm Asia Pacific By client type By capability By client location
Slide 20: Assets Under Management Excluding Quantitative Equities
20 ASSETS UNDER MANAGEMENT EXCLUDING QUANTITATIVE EQUITIES AUM excluding Quantitative Equities as at 31 Dec 2021: US$394.3bn 62% 20% 15% 3% Equities Fixed Income Multi-Asset Alternatives 54% 23% 23% Intermediary Institutional Self-Directed 56% 30% 14% North America EMEA & LatAm Asia Pacific By clien
Slide 21: Investment Management Capabilities
21 INVESTMENT MANAGEMENT CAPABILITIES Diversified product range Equities US$244.3bn AUM 31 Dec 21 US$432.3bn Fixed Income US$79.6bn Multi - Asset US$59.7bn Self - Directed Intermediary Institutional Institutional Quantitative Equities US$38.0bn Institutional Alternatives US$10.7bn Intermediary Equit
Slide 22: Largest Strategies by Capability
22 LARGEST STRATEGIES BY CAPABILITY Note: Numbers may not cast due to rounding. Capability Strategy AUM (US$bn) 31 Dec 21 US Concentrated Growth 31.3 US Mid Cap Growth 29.9 US Research Growth Equity 22.9 Global Life Sciences 15.0 US SMID Cap Growth 12.8 Global Strategic Fixed Income 10.7 Absolute Re
Slide 23: Quarterly Flows by Client Type
23 8.8 3.3 4.2 2.5 4.3 (10.0) (6.8) (6.0) (8.3) (8.5) (1.2) (3.5) (1.8) (5.8) (4.2) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 13.5 16.5 13.5 12.9 14.0 (12.5) (15.4) (13.5) (11.7) (14.2) 1.0 1.1 - 1.2 (0.2) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.9 0.9 0.7 0.6 1.0 (1.8) (1.8) (1.4) (1.2) (1.8) (0.9)
Slide 24: Quarterly Flows by Capability: Equities and Fixed Income
24 10.3 10.5 8.6 7.5 8.1 (10.4) (12.0) (10.5) (10.1) (11.3) (0.1) (1.5) (1.9) (2.6) (3.2) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Equities (US$bn) 1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. QUARTERLY FLOWS BY CAPABILITY Equities and Fixed Income
Slide 25: Quarterly Flows by Capability: Multi-Asset, Quantitative Equities, Alternatives
25 0.3 0.2 0.2 0.1 0.1 (3.7) (2.3) (1.5) (4.5) (4.3) (3.4) (2.1) (1.3) (4.4) (4.2) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 3.1 3.0 2.4 2.6 4.3 (1.9) (2.2) (1.9) (1.8) (2.2) 1.2 0.8 0.5 0.8 2.1 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.8 1.1 1.3 1.1 1.2 (0.8) (2.0) (1.0) (0.8) (1.2) - (0.9) 0.3 0.3 -
Slide 26: Net Flows by Capability
26 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Equities Fixed Income Multi-Asset Quantitative Equities Alternatives Q4 2019 to Q4 2021 total net flows by capability (US$bn) NET FLOWS BY CAPABILITY (12.2) (6.7) (8.2) (2.9) (1.1) (3.3) (2.5) (5.2) (5.2)
Slide 27: Investment Performance: AUM Outperforming Benchmark
27 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 28: Investment Performance
28 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 29: Investment Performance: Morningstar Quartiles (Equities)
29 INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) Group 10 21 17 24 44 42 47 44 42 41 45 44 57 57 48 59 27 12 29 38 24 26 13 17 26 14 14 19 24 18 25 26 37 33 47 62 67 67 59 61 68 55 60 64 81 75 73 86 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2
Slide 30: Investment Performance: Fixed Income and Multi-Asset
30 INVESTMENT PERFORMANCE % of mutual fund AUM in top 2 Morningstar quartiles (continued) 2 nd quartile 1 st quartile Fixed Income Multi - Asset 27 30 25 21 69 71 70 61 38 40 56 55 31 33 48 46 43 27 59 43 11 9 7 19 35 35 17 21 39 38 21 23 69 57 84 64 79 80 77 81 73 75 73 75 70 71 69 70 Q1 2021 Q2 20
Slide 31: Investment Performance: Quantitative Equities and Alternatives
31 7 11 4 7 11 4 7 11 11 32 34 28 40 11 2 32 41 11 0 32 47 11 11 4 7 11 13 0 0 0 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 19 0 14 2 74 20 24 8 24 22 65 64 67 50 66 71 12 26 13 48 2 56 46 26 6 6 9 36 31 48 32 29
Slide 32: US GAAP: Statement of Income
32 US GAAP: STATEMENT OF INCOME (US$m, except per share data or as noted) 31 Dec 21 30 Sep 21 31 Dec 20 31 Dec 21 31 Dec 20 Revenue Management fees 565.9 564.5 489.1 2,189.4 1,794.1 Performance fees 7.7 0.6 59.3 102.7 98.1 Shareowner servicing fees 68.3 67.6 57.9 260.7 209.2 Other revenue 55.3 54.7
Slide 33: Alternative Performance Measures: Reconciliation
33 ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures Note: Reconciliation to be used in conjunction with slide 34. Footnotes included on slide 35. (US$m, except per share data) 31 Dec 21 30 Sep 21 31 Dec 20 31 Dec 21 31 Dec 20 Reconciliation of revenue to adjusted revenu
Slide 34: Alternative Performance Measures: Reconciliation (continued)
34 ALTERNATIVE PERFORMANCE MEASURES Reconciliation of adjusted financial measures (continued) (US$m, except per share data) 31 Dec 21 30 Sep 21 31 Dec 20 31 Dec 21 31 Dec 20 Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG Net income attributable to JHG 132
Slide 35: Footnotes to Reconciliation of Adjusted Financial Measures
35 ALTERNATIVE PERFORMANCE MEASURES Footnotes to reconciliation of adjusted financial measures 1 JHG contracts with third - party intermediaries to distribute and service certain of its investment products .. Fees for distribution and servicing related activities are either provided for separately i
Slide 36: Capital Management
36 CAPITAL MANAGEMENT Note: JHG purchases shares on market for the annual share grants associated with variable compensation, which is not included i n the above share repurchases. Numbers may not cast due to rounding. 1 Total shares outstanding reflect amounts disclosed on Forms 10 - Q or 10 - K fo
Slide 37: Performance Fees
37 PERFORMANCE FEES Note: Performance fees include prior quarter accrual true - ups. 1 AUM data present US mutual fund AUM subject to performance fees as at 31 December 2021. Janus Investment Funds and Janus Aspe n S eries Portfolios are counted as distinct and separate funds. Q4 2021 (US$m) Q3 2021
Slide 38: US Mutual Funds with Performance Fees
38 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 39: Long-Term Incentive Compensation
39 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 40: Contacts
40 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 41: 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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