Janus Henderson Group plc Q3 FY2024 earnings call

• Janus Henderson delivered good quarterly results with assets under management up 6% to $382.3 billion and net flows positive at $400 million. - Acquired Victory Park Capital, a global private credit manager. - Strategic pillars: Protect & Grow (upskilling, data transformation), Amplify (launching active ETFs, partnership with Anemoy/Centrifuge), Diversify (expanding private market capabilities via NBK and VPC). - Partnership with American Cancer Society donating 50% of management fees from government money market fund. - Board authorized $50 million increase to share repurchase authorization, bringing total to $200 million.

Assets under management increased 6% to $382.3 billion, which is 24% higher compared to a year ago. Net flows were positive for the quarter at $400 million. Investment performance is consistently solid with at least two thirds of assets beating respective benchmarks on various time periods. Equity flows were negative $1.5 billion but improved year-over-year; fixed income had net inflows of $2.2 billion; multi-asset had net outflows of $400 million (best in two years); alternatives had net inflows of $100 million. Revenue contribution from different segments is reflected in the flow and AUM changes across capabilities.

• Expect performance fees to be higher in Q4 2024 compared to Q4 2023, driven by improvement in U.S. mutual fund performance fees and strong hedge fund performance. - Board increased share repurchase authorization by $50 million to $200 million. - Anticipate non-compensation expenses to accelerate in the second half of the year, with higher spend in Q4 related to focused investments.

• Factors affecting forward-looking statements such as market risks, competition in the asset management industry, and execution risks related to integrating acquisitions like Victory Park Capital.

Q: Ken Worthington asked about the build out of the institutional pipeline and demand areas.

A: Ali Dibadj mentioned RFP activity up in regions, focus on hedge funds, equities, solutions, and global fixed income, with leading indicators positive.

Q: Dan Fannon asked about ETF sustainability and competition.

A: Ali Dibadj talked about ETF growth, interest rates not changing the attractiveness, and competitive strategy with multiple active fixed income ETFs over $1 billion in AUM.

Q: Patrick Davitt asked about active equity products and ETF inflows.

A: Ali Dibadj discussed ETF growth, building on success, and market share gains in core business despite mutual funds not being a growing category.

Q: Bill Katz asked about performance fees.

A: Ali Dibadj explained performance fees expected to be higher in Q4 due to mutual fund improvement and hedge fund performance.

Q: Craig Siegenthaler asked about insurance channel and Privacore.

A: Ali Dibadj talked about active insurance relationships, Victory Park's cultural fit, and Privacore's progress with various asset managers.

Q: Mike Brown asked about institutional pipeline RFP pace.

A: Ali Dibadj said RFP activity is faster on institutional side compared to typical timelines.

Q: John Dunn asked about multi-asset inflows and acquisitions integration.

A: Ali Dibadj discussed balance fund potential, solutions business progress, and integrating acquisitions smartly.

Q: Michael Cyprys asked about distribution changes.

A: Ali Dibadj talked about changes in people, product, process, and incentives in distribution to drive growth.

Q: Luke (substitute for Alex Blostein) asked about VPC growth drivers.

A: Ali Dibadj discussed VPC's asset-backed origination, different business buckets, and how partnering with Janus helps grow capital and opportunities.