Janus Henderson Group plc Q2 FY2025 earnings call

• Business trends stabilized despite market volatility, with strong alpha generation and solid investment performance. At least 2/3 of assets beat benchmarks on various time periods, and over 70% of AUM was in top 2 Morningstar quartiles vs peers.
• Completed partnership with Guardian, managing $46.5 billion of its general account, expanding insurance presence and institutional reach. Guardian committed $400 million for seed capital.
• AUM reached $457.3 billion, highest quarterly AUM ever, with positive net flows for 5 consecutive quarters. Excluding Guardian, gross sales increased.
• Strategic pillars: Protect & Grow (U.S. intermediary growth), Amplify (institutional business and product development, e.g., active ETFs), Diversify (private and public market expansions).
• Brand evolution with Ampersand symbol, reflecting partnership-centered approach, and improved brand strength in surveys like Broadridge Fund Brand 50 and global institutional NMG consulting report.

Fixed income AUM expanded to $142 billion, which is over 30% of company-wide AUM. At the end of June, Janus Henderson managed $46.5 billion of Guardian's general account, expanding fixed income AUM. Equity flows were negative $2.6 billion but had the best gross sales quarter in 2 years. Fixed income had net inflows of $49.7 billion. Multi-asset had net outflows of $1.1 billion. Alternatives had net inflows of $700 million.

• Adjusted diluted EPS was $0.90, up 6% from prior year.
• Non-comp expenses expected to grow high single-digit percentage compared to 2024.
• Tax rate on adjusted net income attributable to JHG remains in 23%-25% range.
• Board declared $0.40 per share dividend to be paid in August.
• Repurchased 1.3 million shares for $50 million during the quarter.

Q: About institutional channel priorities, A: Ali says they're pleased with 3 consecutive quarters of institutional net flows, broadening with equities and fixed income across various clients, and leading indicators are positive but more to go.

Q: JABS ETF and investment performance, A: Ali states JABS is client-led innovation to meet client needs, and Roger mentions strong investment performance bounce back driven by U.S. and global equity products.

Q: Multi-asset performance and flows, A: Ali talks about balanced fund being a $49 billion fund with plans for growth, including new launches, and Roger adds about new balance launch in second half.

Q: Tokenized fund strategy, A: Ali discusses tokenized funds like JTRSY attracting on-chain clients seeking yield, with interest from stablecoin holders looking for yield alternatives.