Janus Henderson (JHG) 8 May 222022 Q1 Earnings call transcript

Good morning. My name is Seth and I will be your conference facilitator today. Thank you for standing by and welcome to the Janus Henderson Group First Quarter 2022 Results Briefing. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. time, follow-up be question. of initial to interest one and the questions limited will one In In may constitute conference forward-looking today's call, statements. certain matters discussed forward-looking SEC. Factors number and filings could due described not Form in results differ XX-K Statements from other the those projected Actual made and company's Forward-Looking Risk recent materially limited to, recent to of with factors of in a the including, sections the but more those statements most any update forward-looking made Henderson assumes to Janus obligation call. the statements no during Thank you.

Now my Executive you is Henderson. Officer pleasure it Thompson, to Thompson, Interim Officer of introduce Chief may Mr. Financial conference. Roger begin your and Chief Janus

CEO. welcome call to Group. Thompson, Henderson morning first quarter Interim Roger everyone for and Janus XXXX earnings I'm Good and the CFO

quarterly like giving discuss I'd updates. few I start a to Before you our by results,

of respected late Ali overwhelmingly we has and Dibadj positive. next executive of to meeting named I've with as back myself enthusiastic to First, highly we've has rest echo that CEO month. industry, shareholders announced he are meet committee, received is chance with we Ali, and and we're feedback. look I, and internally regarded the Janus extremely had pleased and next been forward work both Ali March, well externally and the as as in with clients CEO the Henderson. Ali with and excited asset feedback along the when begins with the I the management to been in employees and

teams usual. announce previously to context, a initiatives. delivering future. for make closing the interim, dedicated in we announced I'm XXst operate the to both our to March. wish Intech that strategic business very as it's was that, as pleased of progress of best sides, the we continue we to firm new the important to The CEO, And the in the all efforts we transaction a of transition that by of continues emphasize on and sale have In as Intech the combination at the completed As

active now with assets We continue $X to grow our also billion. ETF franchise, exceeding

AUM. And quarter, success into XXXX. which During which CLO X. further of September Net ETF, the the Transition first that was AAA BBB US launched ETFs ETF CLO in we me of of results capitalizing Australia, two has in $XXX let sustainable launched a the US, our the quarter on a million in back $X.X slide that, also on ETF, the of one the now raised and billion Resources the we launched five turn we starting quarterly Zero in With ETFs,

remained over performance three beating XX% of investment is assets up last assets to benchmarks of respective Our their compared our XX% which years, with quarter. solid

end transaction the Assets of are the the the to and down of under management outflows. Intech net closing at markets of March, effects due

last Excluding communicated driven in in by in outflows all equities Intech, the and you we net that to call. redemption are disappointing outflows institutional balanced primarily strategy at the quarter's $X.X the earnings billion,

authorized be XXXX to weaker remain completed completed markets million cash remain compared lower of $XX fees. buybacks results to In prior we board and down AGM. million finally, financial but primarily from we share Our the quarter, returning of the solid, shareholders. performance to the new the committed are prior and And quarter, to buyback $XXX has excess a to

are and $X.XX policy, share. to our dividend progressive to growth Additionally, quarterly we in pleased increase dividend $X.XX given in strong XXXX earnings per announce the

look at investment a Moving performance. X to and slide

is which And with well to despite is investment fixed for mixed, time period three cap benchmarks continued is relative income peers, top the multi-asset remains Performance over all presented. the compared doing periods mid but Morningstar five-year extremely XX% quarter. the of shows performance long-term Slide investment Intech. and challenging one-year improvement to performance this as investment March. solid representing XX% such performance alternatives over X time benchmark Equity bonds as performance company of over of above with remains solid, excellent reflects respective over growth, more is beating US in very assets While investment XX% XXst the Switching quartiles excluding in AUM all all and across with at environment, first periods. two now challenging strategies a of quarter the their flows periods.

For quarter. was the to billion compared $X.X quarter, excluding $X billion Intech net last outflows

in in quarter few Over the coupled next multi-asset provide But outflow continued with previously I'll outflows equities, the slides, capability into saw the insight in summary, the the outflows. disclosed.

coming of channel the product. coming ETFs at from and America channel, outflows strongly due which growth cap strategies I primarily the slide by the Pacific. from By mid previously with slowing. SMA for XXXX. Asia million into the the US, US, performance inflows the to of negative net quarter billion. optimistic our concentrated of $XXX in the dominated we're see we're and In we challenges by performance with positive the in saw were that And net million, first In inflows outflows mid the highlights and beginning AAA $XXX Latin the intermediary But looking pace X, were US region, flows the intermediary were in growth the type. mentioned, to Let's the turn that improving outflows had $X.X the strategy. majority US breakdown CLO client flows to in shows Net EMEA intermediary

quarter, rate to a over risk-off inflows a I industry, caused sentiment compared EMEA quarter and now the to the environment. As growth strategies and $X balanced $X.X business of to due and billion with across assets by broad is well our to slowed billion in quarter the we're invasion diverse fourth positioned mentioned, trends in AAA our where billion, inflation Similar CLO ETF rising BBB and $X.X we will be opportunities, range Ukraine, outflows the primarily were saw has as was the of monetary The this policy. Russian tightening quarter. result pipeline the strategy. results redemption lumpy of of Institutional which

Equity the in outflows and the retail outflows net the US strategy hedge for were strategies. into billion led I quarter the quarter. channel, direct $X.X last were The growth strategies outflows Areas redemption the by X strategies $XXX income, told is the made in the of up innovation for a first Alternative and the self-directed of about flow billion in billion, global ETF quarter were were the during share, supermarket by by which institutional. and by the you retail was includes investors cap $X.X mid prior which good included tough against into driven concentrated mid for compared were outflows primarily net for quarter. in income US, the for market equity the In US net fixed flows and Total $X.X breakdown to one-off the fixed and biotech flows in income inflows the growth, negative million. flat fixed million multi-asset income capability. fund. Slide balanced backdrop Flows shows captured bonds quarter. quarter, result strength US the in quarter. were $XXX that entirely Finally, our

want moving will to XXXX out impact I Before that do on, two redemptions call flows.

tranches buy maintain internal or decision client made investment to growth. has to the management sterling was European in redeem billion support decision remainder The to already total and XXXX investment build an and in-house. This in the a either of redeemed capabilities be Janus low mandate to service was of due management credit performance a to longstanding insurance $X unrelated will April. First, and bring AUM has own their mandate The confirmed. approximately over yet of with the client Henderson's their fee billion $X.X been balance to

Secondly, second estimated quarter. billion we which will Fund, in the sale the Property recently UK of announced in outflow result an $X.X our

results. to Slide of presentation Slide at statement X standard the is look on GAAP summary financials. Moving the X US a the of our income. is financial

sale closed into of the are entire on diving financial XXst of the results, Intech's Intech the the included financials quarter. that note in Therefore, March. Before

Intech's to year, quarter average meaningful. results operating quarter I lower Adjusted and down lower quarter in decreased was $XXX quarter, primarily calendar over first driven consolidated by of quarter not due and Adjusted prior fewer the performance prior down the is million quarter and prior XX% impact results last prior Adjusted quarter, compared as the the revenue AUM fees to fees. However, from the compared first to performance XX% financial are in principally days. lower the AUM, income to average stated revenue.

was First operating quarter XX.X%. adjusted margin

on, fee was the a we I quarter The loss GAAP management to recognized XX, points non-cash to the moving quarter. adjustments, revenue margin tax million on on quarter of departed between XX the accelerations in first other small drivers for the adjustment we've prior $XX to executives. this that the of in difference slide XX.X sale the impairment basis the quarter. and difference Before Net XXXX, and Intech On points on for diluted wanted adjusted basis with including US goodwill compared outlined primary clarify EPS. the declined LTI

ago, flat markets. year weaker of However, The resulting to it's highlighting shift fee is decline the the due to stability quarterly our strength a rate. from and mix

margin first points. the Intech, Excluding was for net management the fee quarter basis XX.X

quarter due seasonally US to mutual quarter. performance the in high quarter fees to and funds lower segregated fees the fourth mandates First were compared performance prior in

fees, Regarding negative $X.X the negative quarter to quarter. million the performance in prior US compared fund million $XX first was mutual the

mutual current performance benchmark and performance on we be based fees investment fees only revenue, UK be full-year be negative in performance, negative XXXX. US SICAVs, rest fees are by negative for fee performance partially fund trusts. on performance of investment XXXX offset the Based segregated million if fees at performance $XX would Looking we OEICs generated mandates, current from to projected these investment assume approximately aggregate. performance, to expect

given which compared partially $XXX and a fixed operating X% XX. of the appendix, of with quarter. payroll revenue is less which up and XX.X% quarter variable in lower by expected costs your the Adjusted mark-to-market. quarter, the down models. to operating retirement result the year. quarter mostly expenses profit. offset from guidance than for provided pre-bonus amortization and future first was first to the were The expenses employee merit from annual was in prior the of we've given higher adjusted you and in XX.X%, in compensation, includes Adjusted on the Adjusted ratio as comp to LTI In XX% costs, on X% down seasonally primarily costs, existing the prior lower use we've Turning variable table fourth slide usual ratio the are to was million, due the line grants last which quarter, to the increases

and Adjusted For from primarily the low from administrative quarter, the operating XXs. were non-comp prior and the anticipate we marketing expenses the comp ratio expenses. full in general down year, XX%

For XXXX, remains unchanged. growth in teens the expectation low the expense of non-comp operating

rate recurring XX.X%. our Finally, tax was effective quarter first for the

in be to year, the to range full the tax rate the is expected For statutory of firm's XX% still XX%.

Finally, annual primarily $XXX and slide the $XXX at cash look equivalents of the as Cash million, liquidity. a XXst was variable from million payment a resulting of of XX March, our approximately takes compensation. of decrease

increase The I million We purchased million profits. paying first $X.XX We grows needs. mentioned, dividends. shareholders million a $XX position And typically the capital with to philosophy quarter and lowest, share aligns via cash per $XX previously dividends that and the the buybacks. in This our dividend shares with has our of in given $XXX our dividend stock to board X% as paid increase share. million approved quarterly progressive seasonal a for is cash returned $X.X of we of

XXXX to call of approved Ali our be in by being accretive authorization $XXX Janus organic million I in and the look on growth July. AGM. board has earnings forward its in QX continuing Finally, to journey share an completed to QX late by prior buyback Henderson joined of

Operator? Q&A. I'll Now up things open

[Operator Instructions].

Dan question Jefferies. from today Fannon, first Our comes

I wanted on just follow-up to flows.

mentioned a kind of institutional opportunities pipeline. within range broad You the of

understand you could just expand the could redemptions, just timing just And that. if I of then, that. So, hoping clarify the you upon so

allocator the think @ of Janus, at April all? the So, an how the impacted if of the in wanted conversations, of fund, left team get asset at multi-part on of change and sorry already broader has context. general, activist of the the within the having in $X.X kind and those some consultant billion to conversations, context I total the in property well as But for intermediary has timing question, as but ranks just billion. I management guess, potentially

things. quite covers hopefully, a That, few

get of take we where me sort let one So, a and see at time to. them

So, buy and the the mandate in maintain the first is one UK.

very It's in said, come that's that billion I of But the As a mandate. course will $X.X – during low all XXXX. fee. out

the when don't out details but Just we we're over April. working have $X will they of that money, clients insource billion came with in remainder And full the out. the as come

in So we be starting with billion rather pleasing It's over the that at year, NAV. out transaction April. to real done. so the that week, $X completed three very last coming will to $X of premium small or exchanged estate remaining get billion The the quarters a

changes FCA very So, the good of That the open by will ended and believe open next funds, we given – ended estate, is ongoing happen investors. review a over outcome the month. for real that

be our that within will again, results. So, QX

are in reporting things through In needs of that terms of There be there to with clients on ability things clients, a fund return. working pipeline, wanted are we little and number regulatory Mainly a to them clients. expected. we do or than able the of the take or bit their the there are to longer

It's We're little be range of And those. a So, client. than some range well. things of pleased a are by bit originally fee as longer to of these thought through complicated the a things. rates working it's and taking quite

again, So, of it. that assets fee been fee. that got now. some And to product talking quarters got for bigger some and I've at we've pipeline that's we've higher lower lower a about number deliver it's this things

sort hasn't bumpy And important And over more than then, we'll received at in that will institutional. But the will rather come flows. this outflow on few from it's picture been a as positive, the both directly strong of him feedback flow with Those in has feedback something different of recognize then and portfolio universally as at I in that and we've last that's very or terms sort again, who've month, said. through to in in working quarters. So, – buy and a be internally firms. coming dominate I us But worked respected the finally, revenues through it either maintain, look next CFO. quarters. next manager joins with as a well an have a Ali him of investment background very And He's on arrival professional, across analyst, strategy professional externally. Ali's with capacity and see

to positive very that's So, been so has soon. very be feedback far. going Client

client late forward June. as I don't positive joins, terms changed our anything, on So terms going than getting I road hopefully, think as in seeing shareholders, I'd and Ali in of said, as anything reaction. negative soon analysts, rather to outlook. the of say, he And as it's look there's to that's soon be clients If staff we in

You mentioned Trian. There's no change there.

been have for almost invested So, now. Janus Trian two Henderson in years

ongoing which, settled I an that's nicely. again, relationship, down quite it's So, think

Our Jarden. Miliatis next question is from Liz from

the things. I want to you've start guidance on the cost management is and sort be landed hasn't capital have maintained I management side on he forward? Ali. Obviously, days any with there buyback. that announced at He of of that and targets all? yet, shift reassess Or steady early it side of a plus another your officially you suppose might do it sort but is might quite anticipation think those going

think of this a is and I $X.XX progressive which I quarter think we dividend, two buyback excess which by capital true our is consistent have in cash. One settled regular separate philosophy, asked management increased things. we've you a around if quite terms

today, million we've the we've prior million So, consistent just over $XXX last what pretty year, at announced buyback $XXX it's that a we've that little – year. more done bit with the announced

capital. decision. consistent well around that's that's again, philosophy understood in But, terms that's So capital. really bold a again, of hopefully, a But,

from XXXX out. we and of with normal future. and we manage going the return in three the look non-comp a Again, combination business the low which year. to a and been of point again, am marketing by that's always to in entertainment this view. and to was a travel we're as as such it that increasing results, costs, That XXXX guiding areas a about cost costs is things. in can at got normal low as of QX We're terms year We've the we've XXXX talked some return of as marketing, XXXX; and about COVID. In have in as were excited in maximizing opportunities higher We spend, plays to to tightly business. investing I the

for we've means is then, will inflation, which done over start been infrastructure obviously, last to great major in working there of years. that's we of amortize the work of live that number upgrades last is a XXXX, have few That couple those years. been the in We go Couple on in the the system. news. And the

come So to we guidance to as any manage there of But and continue that we be we'll as to I we'll There in will guess dials continue change. results QX efficient that. are to you turn back can. should

to us that hard the sort bounce just also obviously, investment of because help in Is about any out line. to to there around fairly number on that get Just to a of and But way data. have sort the to tends gains right in significantly, with really losses, impact better that does of it's sort that. to bottom it think quite way a meaningful number quickly, relation the

piece an There's there. in accounting

it you've of got at to So, NCI. look net

part. interest non-controlling the So,

you those net two So, numbers.

to have We gross. show it

which and, significant So, results the losses, this where there we quarter gone seed in will losses but those in And, a hedge quarter in consolidate don't down obviously, market, a consolidated That first NCI. line. the piece. the still need That's positions with loss. that seed we are to in client relatively be offset a therefore, has in

certain seed – as that hedge don't hedge we instruments Sorry, we can we we'd we efficiently and book. can't we we But don't what what hedge in as are and efficiently there feeds our hedge, or like.

loss which net hedge $XX a but around bigger million, hedge, by offset number, is perfect. there is seed this of quarter, is gross a So, the not a

possible. like terms unhedged we've alpha of got hedge I'd number. includes as well. to like that at It they results. those look things little to where in be funds, are obviously continue as we'll But So as

We're Liz. that well. to helps, you take happy that hopefully, offline through So, as

question next Morgan. from J.P. comes Ken Our Worthington,

Maybe following business. on the up institutional on question Dan's

was I biggest So, we part think of the institutional US business. recall Intech franchise? single how do that the about the institutional

your that does franchise impact So, overall? Intech. broader You're scaled divestiture with more

You're Intech. now without less scaled

come. redemptions this even the big institutional. You one, bigger $X.X is without to I had billion there's quarter, as bucketed outflows that balanced also assume

out this stabilize and the mean that further taking you franchise? platform does And what can the for steps for ship? flush to really right you're outlook the So shrinkage that the

our institutional First of billion. all, ex-Intech $XX is business

well area products, global, right right the an So, and it's and client that is making we've diversified. with sizable we've the it's sure in, been and book that got them It a and the is people building investing – that relationships.

we've So, past about in made. we've the talked little investments a bit the

New underneath interest consultant with team do things relationships I relations, think, last time. seeing Again, which is Richard really joined take establishing working well. globally. Graham, much who in upgraded the But the better which couple these believe is of consultants year, The to And of really institutional last around team we've products that the institutions. over the US, we've world, years. team got we

a a are conversations. So, good realize bit last we And I quarters we to having like that about talking of few say, the I've I need the for that about lot I pipeline. and been that. little talked deliver

So, some no, we results. there. that's seeing we're the good obviously And intention believe

book. The mandate You're I buy about in the institutional told large you that right. just is and maintain

Again, of loss sort So, you point headline towards from that revenue continue to would rather be now just an assets. AUM than I'd view. a of point

which It's fee fee. been that and end. is lower at business, in a businesses the higher product. we which, various And no, fund expect the fund some areas. bigger business higher we'd We've We've the very we to seen to expect like is again, is say. we've pipeline in It's significantly important some successful. us. hope of and hope institutional success But, to mandates that got at got to mix, Some

done Australia some got couple relationships years. in over business Our Middle well on We've East. the of got has the the business Europe. institutional very a growing last We've great Continental

to size post to Janus Henderson. before UK business. is merger, there and where sort and merger we've there we've the a and to business our is consistently I grow hope We of institutional – And an established the push small something time. investments and that's continue have The US the of made for too we'll say, over – continue of as that expect number both

Just results out, I maybe call that think the challenging the of all and to were follow-up, impressive more outlook sort don't here. is it to

XX% a owner. up I the You've to be got is going assume pressure meaningfully. going

have You plenty of cash.

authorization. million $XXX the announced You

that out level sort of couple sort You authorization guys at been the have that for that's of last the of looking called years. you

the authorization not clean a sheet. stock, the weakness plenty downturn in advantage You've why business anticipated of not would Why It than like that to got balance made got here? the cash, I'm inefficiencies. of authorization? take $XXX you've in very in Given sure you bigger powerful a bigger the and the substantially the near-term than we're go sort that, you're million seem was of position that seeing

the our cautious. in sheet. act. We that ability forwards. is that. conservative see are to We recognize going that We And We deliberately business for maintain balance opportunities to want

So, in up the to leverage balance we're looking sheet any not way.

industry and As seen in of quarter, stock. this you've beta a there a high is beta is Henderson this Janus lot in

mean want thing over Equally, don't the we we way. dividends forward, the authorization $XXX of to we opportunities the would do earnings. The other That look that increased that's vast and we've to the this around million our able be at we But million do got buyback through. this in be cash we work add future. you year through doesn't confident should that buyback. year's money we leverage. the spend can something that, the the So, excess going find And other $XXX only over the is expectation would year. $XXX could that million to may and when represent And majority to

earnings. year's this out pay to is expectation our So,

covered I that we're is like policy. conservative on position. a our starting say, right, deliberately But well You're

from comes Alexander Blostein question Next from Goldman Sachs.

kind or will the could as picture how be you're broadly Ali well. do? the I'm But the will to if not term next change what near interim he so. different? company ultimately like a over in answer guess, of starts. I the to kind feet bigger and bit as able of little of A of What are sure in terms wants firm's you be the plans the joins strategy for his wet year what question do gets sort he same, before of think what And

over for is and client our performance evolve will service consistently What will clients. time. focus That on investment change not delivering strong

the that combined financial what live we delivering of a say, We've come years the there. like, improved some what if over in I would But accept made, in you an bedrock of to do. is the So, through progress really made car. business and a results. not We've we lot chassis, yet five on it's real tangible progress

So, months working people over new as of no than obviously, time. but with a him few when joins over quite to That think to He's be putting CEO I that names working a doubt last to looks evolve faces. Ali that been has that and and a and onboard. gives to as here to gets say a the as and closely, we're to month. start couple me off going we've evolves the he Strategy be how opposed running able a like met been strategy, in quickly can as just just particularly will he great be on closely revolution. hello. right rather what an probably But that with evolution Ali that's

the over course and the few great a calls strategy to the off he's next come people of we met. to think you push evolve I the very business we'll He's forward. down gone he's But, as well the start. back with earnings obviously, So,

fee A large it Intech also number quick out business, way XX.X insurance business. like on mix. to it's rate, down are a pieces happening describe A it's question numbers. and moving think high fee it, little here, of I like management just you sounds down the rate due very markets rate a albeit margin, obviously, bps, this but guys with was mandate, run the of low a it the equity The bit, coming

So, off frame fee on point any jumping management second this margin? way to for net the quarter the

XX.X is point off jump the basis points. Ex-Intech,

And higher got it's ex-Intech. you've say, pieces you as all the So, Alex. there,

higher. rate by markets, fees fee given that be will Our are influenced equity equity

fall, some should the year. SMID months So, little And improve seen last of of that US rate mid sizable has That's mandate, we're improvements of equity then the seen. low mid very excellent been fee and the the large to buy turn of starting assets fee, is continue guess, with coming of to fee XXXX years, we're as and because come just a some in it's yes, maintain as so that The bit outflows said, markets down actually the with will I through. will particularly mix. – fee cap our enterprise rates. four and fund, excellent, high flows performance see first you've The really which again. couple all starting see last I And over fund the over this to those We've business.

also business. over come a I back the said. the on high of two. higher Gross one get we don't last business. slow of That's strength I slowed phenomenon. European that That in that's to flows multitude then back. that's a The business, intermediary again, QX, So did But, Should or industry intermediary from continue, an year reasons, real the fee European kicker an as said. been a fee as important

So, hopefully, to things settle flows start of see down coming and we European intermediary. positive again out

next Lee Robert comes from KBW. Our question from

the Maybe and – your on first comp expense of guidance all, ratio. just a bit on little

there's the think – to comp So, had that range. really quarter-to-date just about Obviously, should when towards in kind – to move ratio the least the of still bit flexibility think far think be the will we've a guidance returns, we that going XXs? do this have you mid-XXs? should have? low profitability comp so at flexibility variable to you low we really how that more XXs real really guys How about and comp you that ratio going pressure It's related much stays trying we is continues? to Just this But end be year-to-date, high towards of that in performance. Or that quarter, expecting management? that

cost comp is variable. You're right. total is of base variable of part cost That our our A significant comp. XX%

So, flexes. that naturally

remember higher lumpy So, vesting. sort is QX, after itself. other cost with quarters. some the have In are fixed works base you key that three one payroll taxes, The through a that in to looks of stock there US piece and that itself pieces,

XX% So, year. this year, we're I we're at XX% think last

pretty XX% We'll what ratio, the the and tightly. to comp a I've guidance where I'm that continue of manage we comp with talked business markets ratio. as given with are So about, confident

quarters. was We three a stay. remaining light being reviewing non-comp, and quarter. So, But three QX again, things do see through the quarters. ratio in I the to will relatively in that it. said, we remaining there as that expect come was want way be actually and non-comp with expect On are increased QX does we that careful comp to other the But, around.

next is Our from Henning Ed at question CLSA.

about look, you've Just one, first talked today. strong a balance sheet

acquisitions appetite. the start institutional been scale about ETFs talked I but obviously Can some your just the with reducing also You've just just you interested you've and business. institutional growing gain accelerate scale for growing to about growth in to know talk organically, appetite business? of about and more acquisition

done over and maximizing we've the first what we value the us the obviously And guess last we've what of building thing the fully put five is, yet. is most been years. haven't piece for together important I that

institutional continue have all got the client that We're those We've We were products. specifically about and the which investing surprised and was. asking not been do last got are at. around There rather are channels, over more to around capabilities And the this in or in products. we've that business, the institutional in but we look world too strong we've short of talked And areas guess you footprint geographic investment be more they're shouldn't but a think an years. some and than And capabilities over you if, really is I in truly in firm time, established five performing channel. global I we right QX, we've it areas, in distribution. capabilities

I But, about some again, think, ongoing So, into talked to fixed areas fully talked we're we've other that areas about going Alex as around – all not yet. in different that's We've in earlier, an – be in strategy. potentially moving income of some part asked alts.

it's very, only want the look a most We're do of are thing we opportunities. business are is And ones. looking the very at good. few There very much good very that usual. lot for We very, things. important always to very now think I as at

business a what it's we'll we'll month. as are as usual. and important things joins value to maximizing continue I the thing looking at Ali We're But continue in on always we So, look at now. the road. when that of we've most them say, is And got like

numbers. And just just the on some mechanical questions

likely fees just that that comes performance quarter? lump Or its is Will about quo fees each year-on-year. talked there status is? through potentially likely in stays down as trend You if a performance through

last very a strong QX year. We had

that. time what project two So, a what will pieces difficult it's to It, the be performance we we in year. is again, forward last performance. today, There's in significantly cut period. performance depends on today, fee But if we weaker quarter obviously, given had see QX back than

I term terms very SICAVs our the we our fully the fees was from we see what negative. from and you fees would mutual performance, say, strong will $XX that performance at accounts, can of said, in million. be is now funds. fulcrum it just – And as our the OEICS we US year, again, again, that now them I through QX And last couple cut first – end between funds, offset of performance looking fulcrum which expect the The our talk through if the were a as have you not of if this absolute But given from straight alpha again, $XX got can the today, calculate positive would fees, zero current we and in it. year, we've we million be fees from to on segregated

saying So, there's what alpha over see are between the rest no again, what now bit be. numbers better. we are the year But can just that's it'll a strong and where Hopefully, end today given be performance of year. the of little and and the is those of it'll very we performance

dollar just year-on-year? negative, performance not – And fees number down of saying that's absolute the is

Correct.

Our Patrick from next from question comes Davitt Research. Autonomous

on the more expense. One

run opportunity are infrastructure is when build-outs Or once these rate As then we that year, this year? of we of down some to for is kind new get that step of the big the finished? look end of an kind to there beyond the

certainly are There want turning off. always things we're You that.

modernize is, around and the as really more savings leverage. off to cloud systems truth more There there our This is So, we're there. costs. are data. need. turn is we is there are is that – to infrastructure, But able There there we're continuing more you

talking why squeeze this be and about can, continue therefore, rate, run efficient cetera. things we grow I so I we're turn business leverage. as off, But where this we the because try that's and to et can for is will as think this us about organically critical As to being and we really, where it's say,

number frame gave, this, lot of these common $X it institutional the a plus billion are kinds that risk becomes of of a billion trying if you theme? in there to $XX more number, the mandates In just

one No, the that's of ones. probably biggest

sort I business. think we a institutional of do barbelled have

a say, them. I the has tail of one long probably very have biggest. have We And of This number mandates. of one a of been small larger clients. we Like

biggest. of One at couple middle one that make looking the tail. filling of There's category, is, yeah, of is the five will long things probably trying a well. this be with as the piece we're the in sure others a we're very the But, in but to

from comes question next Our from Nigel Citi. Pittaway

those that level taking those now said going just already. obviously, flows in and the just of of maybe with of something outflows answered it's mid, this little of two delve quarter? obviously, turning you with those of two you improve sort bit but, So, the in cap First you've first month a are you're the strategies? March, how more maybe But, of And to while? as partly sort delving because sort strategies SMID sort into was are before, all, where the can we of positive confident from a of quantum to it's the confidence what mid into at

the five quarters. outflows last some sizable seen over We've

XXXX outflows when I those think of started probably. at the beginning of beginning

that in mid made time $X think more, very strong. The I bit a numbers positive The outflows SMID. like that in across have we're say, particularly it's are and billion enterprise. now back in into a performance And I all about was period and QX, periods. of team territory XXXX. tough over And

always – franchise. clients. concerned, So, we're is And great some a starting it's have starting but interesting still you're to that to really for look

inflows. to flow before got you to you've the So, get outflows

relationship over well run. You've go both as some and like and on fantastic investment have Brian hard hopefully the five short last teams the Jonathan numbers that, quarters. on the as working got something delivered of the teams, the That's working that, team to to in will that happen are who, say, But client the side zero. I

a year So, the painful I last confident. seeing we're That's But the outflow so. we're end light been the or pretty at tunnel. of think over

the the expenses It's on been got a common But Q&A. back topic just expenses, obviously, over lower first quarter. you've

in as of in bit fair a highlighted, the three So, down markets the XQ. there's are you've headwinds of quarters. AUM mild Obviously, bit and a catch already there's up last sort average fair

that so you and actually what much say, happening reassess have revenue point to what's really the can't do invest So, on year, at line? given this we

best and to opportunities we those bit to are will the things much which term discretionary are investment. less, environment we need little of There us money spend in are view such discretionary. want be ensure we take do a to we've is more for things Are business to forward. There do are winning at pieces. quicker. that then discretionary sides things be business? the are going But market less there then the look If that really there we'll opportunities to business. are the long that The to that a of got two And pieces

tactically. believe a If strategically So, longer look. call. then that the deeper next a quarter's we'd We'll short and very was term term, that taking market this update change, longer we we be will look at things over

next Our from Deutsche Bank. is Brian Bedell question from

questions. keep quicker on a it side. the just couple Maybe I'll try to

in Just really back partners, did distribution hold intermediary sales on the well with your up conversations QX.

sense So, just risk Ali comes board? a get be maybe what it as XQ, of do the headwind we into growth on value of just that to How may think you of to on are move the trying Or those those sales in numbers might when coming just XQ to going? into maybe, their generally. have are conversations we ahead conversations? sort And market rotation a

and The depth of very is with relationship larger key good. the of list products. around our The sort clients, really clients focus are conversations and strong, particularly of

concerns no there's – any there's there. think don't I So

it's in pleased. where outflow is are there pleased, painful. we're a you we're say, income the is going franchise but then areas flat mid our turn first relatively US pretty strong. down, quarter But fixed being pretty As gross that has we It's This and large strong impact. the quarter. can that's forward. market slowed and be answer around SMID, will Europe a flows If

are And see about conversations, us all think starting very I some we're clients which people. gives defensive to to the opportunity conversations. Ali were joining So, to we're the conversations actually firm having with talk and and positive

the door. about coming concerned with something. losing through that conversation more money You're up ends And

I'm again, So, the picking positives, obviously, there.

investment a significant to obviously, That's And environment to very deliver any cognizant the As and change. I thing. of think I we there's talking been sentiment. delivering has important clients. ability continuing say, quarter. the obviously we're our it's That our investor on positive But flows. performance. painful most a But, don't market impact are

you to and initiatives, – about you But maybe product obviously, as join. same organic ramp everything also any of is franchises can I growing ESG other lineup Maybe just just then As products. development to on – mentioned, bit continue an you over growth sustainable continues $X the if know for us sort as said, initiatives, the well Can initiatives? we talk wait products. obviously, product you any just up dedicated you've give playbook, you little update ETF growth billion. a major other the your active the on talk growth sustainable been Ali Can organic about as

the product in second XXXX. launched On piece lot a of first we

XXXX matures, real for we that XXXX. that's in opportunities as growth So, is the launched things

QX. million It's first We the a launched something March, $X.X AAA launched BBB like of inflow. a suite seeing in ETFs. we So, The in sustainable like that, the now billion, is in and quarter. launched BBB CLO. things AAA raised now $XXX

there. in some product that to there's do pipeline. continue like So, XXXX. things at in continue we'd look are areas to good There We'll to

I we XXXX. in launched new products XX think

lot doing has pretty from a On mature. of which heavily. around core work to gone X we've lot investing there. we're investment are to the ESG group So, XX. got We're our of starting things a people sustainable, And team,

In terms the at although Europe, driven and the you're probably – that's is seeing uncertain working of moment, ESG through regulatory change some by regulatory environments. products, in still area some of change fastest we are

will to actual end which rules The come June. Europe, in going embedded until of of end pieces need are to not the be two level year. So, out by the the

we've seen doing. SICAVs right infrastructure what X got that this we're sure sure say doing, we the confident. do work raised and exactly to and going Article So, more And we've pretty really we're number make reporting Luxembourg to and it launch year. and Article we Europe that expect the the is are over lot make this, want behind that. Again, to move make And and now thing. being the as out on people from expect X. on. of rules the will sure you'd of remainder we're our either a doing caught couple in on we About continue think over to been that to of a We've have of launched want I And right or we Article XX% and funds a in cautious X of We Janus Henderson. Article X some there's convert the the

over pretty Sustainable anniversary XX growth So, the global make a and which strategy months US probably. celebrated doubled the a It's a and in we're looking as investment sure a track And that as cautious, that $X.X making We've We've very doing Global years products and to last launched and range last but well. that. in are specific teams last some It's a record fund thing across that now of over year. ESG. in to broader XXth product, sustainable its billion. our couple last long-term sustainable we're that data got being we're see significant That's systems the in the the a We obviously reporting make around is Equity. we're sure we obviously got area. year, in there. right the Australia But about

today Dunn from John comes Our question final Evercore. from

the quick some a for Maybe about ways do to alts specifically. check you just inorganic Earlier, in maybe on talked growing strategy it.

competitive and currently? environment is potential the maybe maybe So, of those winning for just areas how interest

There things are we certainly that do.

we're some a I'd call So, of areas in couple seeing real success out.

so our was the year So, innovation growing over it hedge fund biotech launched. last since is or pretty significantly

I Our of told point. is terms is that buy multi-strat one mandate product but those offset which AUM ones, terms, you pricing very to in and going it's different maintain not in about, a revenue

$XXX million on tickets $XX winning is dial so, in million And multi-strat revenue side. the something and that the moves

We've alt and we got to And time. to return got gather to we've successful, a do. over absolute in expect again, Europe supposed long it's assets fund that and as capabilities. that range what So, in continuing hope tenured do well is to

that we But to over alts areas we've So, we time. are add to there look continue may that at got business. where

to of here. probably to look We're close always there's particularly about But at, income. not fixed So, liquid talk in specific the to interesting about end anything. things less nothing

with let talk please months' you Ali do me thank good know. forward team doing to very then you Well, time. the for there's to Thank Okay. time the call and IR today If questions. this you. you I with three look all Very or any follow-ups, much for to your today. in

joining. for much very all you Thank call. conference today's concludes This

may You now disconnect.