Janus Henderson Group plc Q1 FY2025 earnings call

Key Points

• Market conditions are tumultuous with changing policies and recession fears, but Janus Henderson has a global footprint to navigate.
• Assets under management decreased 1% but had $2 billion net flows. Long-term investment performance is solid with over 65% of assets beating benchmarks.
• Announced a strategic partnership with Guardian Life Insurance to manage $45 billion investment-grade public fixed-income portfolio, expanding pro-forma fixed-income AUM to $135 billion.
• Focus on cost discipline, strategic initiatives like Protect & Grow, Amplify, and Diversify, including acquisitions and partnerships to drive growth.

Assets under management decreased 1% to $373.2 billion as market declines were partially offset by $2 billion of positive net flows and favorable currency adjustments. Intermediary channel net inflows were positive $1.5 billion, with US having positive net flows for the seventh consecutive quarter. Institutional net inflows were $800 million. Equity flows were negative $4.2 billion, fixed income had net inflows of $5.6 billion, multi-asset had net outflows of $600 million, and alternatives had net inflows of $1.2 billion. Revenue details: adjusted revenue decreased 14% q-o-q but increased 14% y-o-y due to higher management fees and improved mutual fund performance fees.

Forward-Looking Statements

• Board authorized a new share buyback program of up to $200 million to be completed by April 2026.
• Quarterly dividend increased by 3% to $0.40 per share.
• Expect expense management to be managed with levers if market deteriorates, tax rate on adjusted net income remains 23%-25%.
• Guardian partnership expected to be accretive to earnings upon full integration by mid-2026.

Risks

• Market conditions volatility due to changing monetary and fiscal policies, US recession fears, and global trade uncertainty impacting investor sentiment.
• Potential impact on asset flows and investment performance.
• Uncertainty in M&A valuation and integration of partnerships.

Q: Concerns on CLO ETF capacity and liquidity in stress A: ETF flows positive, year-to-date flows $3 billion, redemptions absorbed with no dislocations in the market Q: Institutional channel next steps A: Growing pipeline, RFP activity up 100% q-o-q, consultant support expanding, broad interest in various products Q: Guardian partnership growth opportunities A: Amplifying insurance relationships, $400 million seed capital for innovation, distribution platform co-development of multi-asset solutions Q: Market uncertainty opportunity set A: Active management opportunities, global reach, cost discipline, client reallocation to active and global investments Q: Regional demand differences A: Similar market concerns across regions, but Asia and Latin America stronger in intermediary; institutional more stable with longer-term focus