Janus Henderson (JHG) 27 Oct 222022 Q3 Earnings call transcript

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

Now, it's Executive conference. Mr. may my pleasure Ali Dibadj, your to Dibadj, Officer Chief introduce begin Henderson. of Janus you

the Thompson. Roger Then, Welcome those everyone, our start Roger's with on work today's thoughts that's through Henderson's it I'm been an prepared Janus since over quarter's I'll Earnings call, on run and on forward some Call. handing before update regarding the details. you questions Roger thank Ali to following Dibadj, us share by take In today path Quarter joined XXXX joining your I'll last the After Third done I'm quarter, remarks. to comments, for we'll strategic CFO, call. our

Turning X. to slide

to quarter. investment amidst volatility. challenging, three-year assets correlation environment of performance from The reduced Long-term in net tension, with concerns, knows, market uneven benchmark fundamentals valuation. investment of of prior dollar remain extreme everyone and on million. by asset conditions and results. monetary inflation, a Short-term sentiments, to billion our affect compared third which up continue AUM appreciation investing and remained $X.X outflows between lower basis, The classes, ahead all decline, is among banks, difficult market X% remains solid market outweighing tightening XX% quarter, policy with high consumer As confidence performance liquidity and is $XXX central geopolitical the our and to markets, the investor

delivered that attractive have their and focused identities long-term risk, opportunities true time. on are that over and against investment protecting investment have processes are to valuations remaining for clients strong teams Our results looking while

are times most. an these over times, to These thinking clients financial our saving management that Henderson as people deliver for a we industry our looking are for us the outreach, the we need with for and over we need creating third the world, we their During run uncertainty clients' client storing as and of details share I'll increase the we what Inside and asset we clients you growth. clients. In Janus Roger the future. better to can critical that life control results. Janus financial quarter market are it's of insights looking this and who retirement, our environment, and Henderson, control all at for of market markets, keenly now through the call expenses turn partner continue fuel to while as the to our weather

quarter. Market Thank results to for you, to look to are the Ali, performance. volatility. conditions versus I on on considerable call continue X, benchmark very us prior investment at and and Starting thank today. again the everyone Performance slide similar joining generate you

XX%, of professionals clients. that opportunities for XX% remain approach, will outcomes company AUM half of XX on benchmarks as flows. X to mentioned, X, two XXth deliver all periods. the over time beating compared and clients long-term disciplined be Ali XX% remains top over competitively Investment strong investment the their managing year with September and investment solid risk X, assets As Morningstar their and Slide time performance are over continues respective our in quartiles our to of peers for periods. shows identifying and all the of performance positive focused in Long-term with

$X.X quarter, billion $X.X were For outflows to compared billion quarter. net the last

and significantly due sales gross the As this retail continued you increasingly as to global quarter are volatility. sidelines down the investors can market on on page, redemptions sat see

was a that the the equities X client the billion to attributed several net quarter. billion The lower billion and came breakdown Net quarter. was and European in type. In of $X.X US, US for from to flows one-off improvement the second $X.X slide from property improvement the In and led by value, positive equities liquidation intermediary Triton. outflows the across EMEA, UK by second compared overseas is also $X.X Turning occurred the the spread mid-cap channel outflows to strategies for in the and fund were from change in of EMEA. the primarily

numbers clients redemption remaining Institutional in choosing redeemed are motion. including an in outflows putting Although, net the which Sterling $XXX previously be tail Pleasingly, billion, hedge sales gross better primarily to were $X.X credit Asian European adaptive $XXX the as fourth is intermediary from globe strategy. the approximately which events monitor the not region current and global million is client in in were a maintained inflows, money to There strategy region were in risk announced are net from low by from mandate billion EMEA driven include positive insurance million long-standing $XXX quarter. and outflows the across $X.X the APAC buyer expected our had client. are the million into

by million. clients over outflows capability. Enhanced UK Sciences. Global quarter. channel sales self-directed gross by retail quarter the includes were quarter Net the Mid-Cap net Life X were third channel, driven in the $X.X was investors Slide outflows direct US as are the shows the last Growth $X.X redemptions strategies supermarket remain and to the Index, $XXX and in on billion the Finally, technology intermediary compared to year sidelines. second down for Similar which outflows flows in global and the Equity The billion considerably

the income of And the balance long-term channels. $XXX the strong. I million funding very for by in Whilst balance outflows institutional outflows outflows multi-asset partially in performance to offset $XXX net net balanced from $X.X the reflecting net the that due strategy million our short-term outflow is retail were mentioned within medium Total driven institutional quarter Third mentioned. remains just earlier. were part maintain redemption the billion million and performance fixed I've were net $XXX by

Before redemption want managers. that moving has asset made fourth The decision bring call the management in-house. of clients quarter. across a do mandates the and impact not was to equity the Henderson will on Janus equity impacts to This I institutional out decision European to their multiple assets specific

but For management occur fees. approximately Janus fees fourth the XXXX. in quarter billion equity and AUM representing potential, will approximately to relatively low as annual The in be Henderson base redeemed fee million $X had had $X performance the of AUM

is primarily prior the fee X statement quarter. management in of X% financials. for income. is The average adjusted points primarily to increase repeat. third adjustments to the the this lower basis to we Net US AUM. Adjusted to not Slide the made quarter the the X was results. GAAP margin XX.X on will during And compared due quarter quarter prior decreased on financial revenue Slide Moving basis accounting to XX.X compared due points, which explain

negative on 'XX of million fourth performance equal, All million. aggregate Third estimate fees else quarter funds. quarter will to negative performance continue year including current in performance impact for will fees $XX negative XXXX. and mutual the $XX million from US Based Underperformance into full $XX $XX performance, and fees to investment range negative we million, from

costs future negative performance include which pre-bonus down Continuing compared in $XXX table mutual prior third X% to non-comp grants, the compared X%, decrease roughly to will line was expect Adjusted the was we used due given existing quarter. to second up Adjusted operating and and $XX million models. prior principally partially offset over on Adjusted And the quarter lower in X% by the variable by the fees. quarter the down million, the compensation, discipline. which compared in expectations, driven given to we've million the amortization a the Adjusted fixed prior partially the up offset expenses expenses. and on adjusted We discretionary from includes X% operating to expected to in was FX in lower your revenue ratio cash LTI the quarter, comp were appendix quarter. down operating use the Adjusted primarily with fund favorable cost income US revenue. lower expenses favorable in which primarily compared was FX was assets, prior this Adjusted from quarter, by profit, our costs, variable LTI third quarter, prior true-up XX% to usual $XXX expenses. provided of average decreased to to in due XX%, split. was and of lower employee quarter

fees in as management the in this All the things full was fourth average you'd Third diluted was $X.XX. And be equal, the expect you than year is closing AUM, quarter to than lower closing AUM XX.X%. operating adjusted to third AUM. reflect expectations revenues year-to-date higher touch significantly I'd quarter adjusted on anticipate finally, and quarter for lower Average should EPS this 'XX. was equal, XX% like by all fourth AUM to quickly else margin AUM. lower 'XX And therefore quarter. amount

In anticipate a terms of of ratio compensation XX% 'XX guidance, we in still XX%. to the range

the discretionary 'XX our we be digits. and continue growth single in For anticipate the low proactively non-compensation, to non-comp base expense expense we manage to

tax for Finally, XX%. the our items. in quarter rate state quarter the rate resulted various recurring effective tax lower The third was effective from

to expected XX%. to rate be For through slide Skipping slide the for nine full XX% in year, the XX on statutory an the of still to range cost efficiencies. firm's update is

business strong looking has to for invest more maintain fuel always it philosophy and been operate makes discipline to financial sense, provide Our strategically where growth. efficiently the to whilst in the

Executive seeking regulatory our or compromising efficiencies business, delivery quarter, reviewed third to the without During client drive Committee the requirements. ways

efficiencies, this equally run $XX compensation which and be $XX expenses. extensive review, identified rate cost to million non-compensation in As part million gross between will we've split of

XXXX. $XX one-third two-thirds be expect implementation these with in reductions run result end of year end gross will estimated the savings this the to of by the remaining to realize of of realized We approximately by nonrecurring $XX charges The million. of rate million the to

most which all to in It's important mismatch reinvestment the reinvest the note into the timing we savings in later to business. business presentation. Ali talk will cost that between expect and in growth, of perhaps the these or to the about back a savings is intent gross Our fuel

of at September, the million of XX dividend. primarily look and the a liquidity. increase by billion the $XXX continued partially generation, slide XXth resulting approximately of from $X to as flow million of strong an equivalents $XX our via to Cash shareholders were offset and Moving quarterly cash return cash

market buy current stock capital not our elected we've back in to conservative and have Given this volatility, management and purposeful been approach quarter. to

shareholders investment these Along per lines, We interests. position of Xth continue of turn as the and like to it November liquidity paid our to have an dividend the you be the has to to share of record of opportunities over on with that, a I'd give needs XXrd of a to the capital shareholder back update Board business $X.XX we'll November. and strategy. balance With the to Ali strong on declared the

Thanks Roger.

XX. on Moving earnings of wanted you where to slide to remind last call, we quarter's left things. things three I

The about strong acumen to a cash balance to work lot like to a Janus there's First, robust investment to Henderson. service generation, and client sheet engine much and do. strong is flow from is there

more from and Second, firm right through last hear strategic although not we overnight going us the persists long-term about diversify framework a for minute. are where over yet, our baseline is the of Janus at the that good amplify and last all period the in starting three but time. on of framework That months, Henderson's progress our it ever third, are more core transition and in And firm not most to protect deliver we there win. that that give we're to a you'll potential now success over is fully employees, foundation, strategic clients, than communities strength shareholders, initial grow the that leveraged businesses, I'm clients With of the an made amount enormous XXXX. stakeholders, to convinced path introduced least the at others and

that in been including that's Now detail and actioned. it opportunities portfolio an the heart gather delivery evolves. attractive how we of From identified that strategic our all client their some The to the against completely to we've operating Thank ideas update. prioritize With strategic are far. to we the understanding laddered which through of inorganic sifted of XX input step more the from sought XX to an continue we an views, win. XX. clients purposely to date, organic let opportunities quite imperative less organic set than clients on external internal as firm opportunities XX slide for and lays absolutely the from geographies in growth not periods lead whom for Slide voice We views calibrate woven the spoken have list be of It's last aligned of the on possible activity at time. major mindset, both initial the upfront, a turn over illustrate would clients in a senior that outcomes also since and of clients buy process assembled order in as input you will opportunity XXX initial the of important will list forward group our strategy our and to broad importantly over their to the designed This our and margins let client summer be also we seeking but we undertaken only that feedback and so time. all further evolution thinking approximately opportunities do our our so client and extensive work to ideas me continue of deliberately From everything employees client process best beliefs to as that horizon those getting showed XXX to went essential brought with Slide offer the direction. for that strategic measured. was included best five sought filtering those capture client illustrative the provide We'll the That will example of out there options. there into us voice. be through That departments evolves each start. the were

the need evaluated future along to can measures our team general to how Janus opportunities and partnering the relevant for Henderson's right leadership where clients to importance. in building buying against dimensions. have The industry win. client be in right the we via initiatives industry and and the strategic two Our or or places win have opportunity

Another to we in with Janus presence AUM Slide is element largest universe on Henderson in global address is participate we a illustrated the of sure wanted was be to markets. the broadening as it XX. firm which

footprint, better we where based a need bigger on Janus addressable that current a product $XX about becoming estimate we puddle in. a fact, We In to That distribution Henderson's do swim trillion. market our is set and presence. a job big have is fish to already

last heard You earnings us talk about in call. our have that

ocean. In the and improving share, addition we to also to want market think bigger turn puddle into an

Our strategic increases target the evolves, then for strategy build the all fall, us on undertaken time. framework. Slide it and market fit the framework. this increases our the framework. to target. at Well identified beginning opportunities over and future XX we to out identified within how will fits carefully for early this initiatives our double this intentionally of come The and summer addressable the at into our allowed AUM that we process us our addressable strategic that looks initiatives into process us meaning summer as strategy through the Based denominator can the believe

will sample initiatives is Over to deliver you'll the part strategy. US us protect slides, business our must intermediary a our next see few a be start On focus grow of and business. Slide just we a for XX, our of to that

this of one-third has margins, our competitive contribution net know and extremely is is one intermediary growing. the representing fee it also attractive others. deep assets, research, well which rates management fundamental and VITs established market, are fastest are US assets. CITs sub-advised business largest segment space it's of about we our and an SMAs, strong critical management in among client Our It We components strategies clients traditional portfolios. ETFs, our to therapies by which mutual believe investor while We have underpinned investment risk and through distribute pipes well-connected funds,

strengthen in target with to product clients including further faster-growing and better our In the to data we've five improve our and support aligning order by of clients, in team defining share that products we'll expanding strategy, increase vehicles the the meet the to leveraging and to KPIs important improving align market, having been of branding the market to and a share, execution strategies and focused market business action success. the our areas and capture will approach and enhancing this reenergize We better with offerings invest more places. sales. demands thoughtful market best development However, segments our improving organizational properly around channel, ourselves structure think and relationships losing Repositioning market. and strategically incentives measure accountability

on Amplify XX. to Moving Slide

our to an product Henderson investment development New leverage of teams. Janus product adjacencies strength are for opportunity and

Our proven clients' the have We product see on still that deliver three-year can muscle we can as we product and have here. memory but record you that paused launches on More development needs for developing while key for adoption. a ago, track a several milestone track record new we the has in capabilities are slide. client years the pipeline recently, many

recent ESG, build. fee there immediately and happen this should to the total and will track fixed and products a along areas offer not. products. addressable potential multi-asset and equity is Growth of with will the add performance lead here. client alternatives, We'll coupled and classes successful momentum of focus start be higher client record believe asset strong with the won't demand, such we with differentiated as Again, successful These and income we've higher where spaces see but in Some and liquid solutions market. seen some significant I value continue will runway products amplify real bring

Turning diversifying. XX and to Slide

development. capability Henderson, key played team bolt-on and acquisitions in Janus have For a role lift-outs

you on been but successes certainly see can the as chart. perfect haven't We some have

QX, down see on that also activity. we page slowed can You the

gaps we are to as debt have market bolster back targeted in at and areas places us actively fill private asking emerging we've gaps including looking recent track a to we're world I traditional evinced that and areas, delivering insurance, identifying, addition the credit before, from like regions further. our executing like which know mentioned M&A and expand machinery of clients team. of in investments the we would have you as is by to work However, into My with team up, successfully and record ramping of and and value

will or be Of course, to partner. we in where build identifying buy disciplined

we set partner grow, Henderson and to to people people and research We provide and that want tools are like-minded distribution product development Slide and Flipping client want – service. who to skill who us are can want looking footprint, for we global our to who gaps XX. leverage fill of capabilities with culture terms Janus in importantly

As the take the bear initiatives continue for will fruit. on work path to we we time forward, strategic it know to

ground when which to times in and client with is positive just investment I in the compared in September, year. While of to when In is note started is which inflows zero of after the space, increase this million last what advised higher outset, the team, group we and the given There short we XXX said month, increasing do externally minds challenging with clients consultant it's our with most. client few institutional US improving Elsewhere, and XX% XX% consultant $XXX running will backdrop, that that and quality year-end important activity and acumen transition AUM a client early we service ongoing meetings our the that to we last to greater testament vital Henderson E&D do we to have interactions building market at seen it. to Janus as insights need has starting energy several annualized two to can The the XXXX are on anticipate zero examples. positive are be hit is clients and some last a higher touches we've pace in put by wins activity. a third intermediary internally months compared our than having term success consultant over our for year, have in quarter by number

a second domestic year-to-date ranking franchise continues ETFs basis. income and do well, active fixed to ETF inflows Our on

distribution. energy varied our Growth delayering, Our identified provide Fuel FFG performance and recently accountability be surgical value world-class moves bring to and savings will and such board as that products the to It's faster clients. And proposition and the announced us to improve included our enhance which core investments of areas and finally, these for most cost research, more will allow in changes importantly dynamic moving, new expertise. invest new removal and duplication or

to in going As realized timing Roger our earlier this there and important cost the that the section, forward. is on business. to gross in And efficiencies be update mismatch continue mentioned will progress investments we'll with it remember FFG you

we Success the our shareholders, be delivering and slide building Now progress XX, now desired on before not. lot growth opportunities we early will to am I but I firm, ever, there's as stakeholders. on strategy future do. We've definitely our and months much the a work clients', believe be updates and wrapping calls to will In happen around for said I forward days, early four emerging. the the overnight short-term, like in identified and employees our not there's believe return convinced path future. outcomes than us the on on are still not to up like one there's will it a look a overtime. it in the our I energy more other to job will progress market-dependent organic or about that will happen and We're wins now linear, providing of and path and whether that

Let Question-and-Answer you. Milliatis back the Operator from your Session call me the over for [Operator question to from Thank first Elizabeth questions. turn Jarden. Instructions] comes Our operator,

ahead. line Elizabeth, Dan go Fannon We Please is now move line to your Jefferies. open. from on Your is open.

Your open. is line

initiatives. follow-up expense morning. Good to wanted I Thanks. on the

in there was and And hoping kind obviously that -- that might think the could a not of terms just of client-facing lot about commented you're I that. I repercussions they should are you to a going and about expense see be how prioritizing of talk You talked you the areas of reducing, you're then, whether also just savings. you're reinvest going efficiencies gross to that? kind the from maintain here know doing forward, also, things. in And about investments versus on associated I kind other obviously looking think expense of some and it's to you're we lot with trying early side. base But

maybe Hey start so me Okay. Dan, let in. can Roger and chime

get So gross as $XX heard million question half was hope half million you've your we're look of time We'll continue fairly and expenses, $XX FTE of we actually roughly this sure itself. a continue for comp expense talking in appropriate, -- obviously this about, To the And have obviously and or was some third in of as savings. is this to to but we it fixed broad-based a other is done was it year. to make at firm non-comp nature. base about nature at and program our quite the in to

client not -- fact areas What for in reduce importantly can were grow was We blue very high did continue results room sky where should many too we disrupt not think very we disrupt as situations, forgotten suggests of directive deliver we that. simplify sometimes where types went better we have in we our our we regulatory any could decision and our was ROI in deliver to as as integrated obligations. slow. the gets and perhaps create our to organization these could we where And to and clients, our had to followed was before through. to before. will areas the found layers of importantly results clients, making have costs and in where much look integrate directive we I and where could where business through, develop the That better we invest for the And should performers we the we for where will structure haven't do have very than we as

heard with In and facing to areas. as certainly the data our and and the the incentivizing, whether about just It's terms serve to clients people whether or internally big which it invest technology, do before to you've function we'll better that invest us classic talk be we be it's the have of internally areas continue processes it's it's upgrading it in off to to and data clients in examples.

private that continue part we'd look some only it's should that we reach gaps at. in step, about about areas on And of and time. some areas think we've invest but capabilities as to Dan there us geographical think our do there fill more out should past to covers the both We've can some looking in. but you that examples be there's in are a commented first emerging fill to guess I we other was we we over great in sorry, and talked debt are on just debt And the to where other market some continuing everything pieces Ali. The that Ali piece, should expect The Roger. got filling fill of out. only I is other great in comment out,

That's quite historically US the Thank you you. strategy, side of and intermediary on then And growth the you have strong. helpful. channel where the guys Great. been protect about talked

-- grow. how much the currently? or about vehicles in that do those do roughly? to have AUM the today you on the I if CITs buckets amplify going guess side. product capabilities mutual growing, you you think the just You SMAs, scale and if curious would you I'm to have if those it's capabilities you either growing. in it's curious say where forward looking that's fund And I'm to said that active And agree you're then VITs,

Yeah.

on that to continue have our of that and many form is, investment and investors, yes, our And long places. to So do the you that do maybe backwards. that offer our do let quite we or in about SMAs The enough. the short the and successes capabilities the at very long in ago, to me not and other we performance be of course, didn't, interest have whether do key to we have to the with I world. that. delivered had longer a for work do the today one to we've start capabilities. do answer we answer point. want well or But is clients have it or VITs time And, but not strategies know this argue performed we We that so CITs we ETF would

are in is need want is view capabilities a or we to deliver do that vehicle investment and packaging focused we have so. our client We to agnostic. So manner the that

second question. that's your So the of part

I we significant first something and have we of before last lot page vehicles bottom look, you'll absolutely. well, our think only scale. we're is the see as XX we the the are And growing, For a that question, yes, in that that is said driven focused part I sure that on as have said call by not play even are the losing things of make share where fastest where your to we at market on

focused the that they make in that KPIs. better make structure we incentives as that right support sure and the sure to Protect the US have do intermediary right We with Grow, & in have sure the of we're away terms we to organizational this can of and of the do grow of a on are making aligned in We job set think provide example us us. as from to our well right clients advisers not with

happen. things around. for make have we to these deliver about earlier structure the the people that It does right right is think certainly path have simple, it make require pave of we right which make as on, I org the sure and clients, that. measurements Dan. then we're investment And That's question as a target KPIs sure sure them, on then, your always doesn't And bit well. a little to sounds

you. thank Great,

Autonomous Davitt comes Our next from from question Research. Patrick

open. is Your line

morning, Good everyone. maybe or reasons the then, take your that opportunities on up on how locked for kind sheet anything? you balance of Hey. now? part cash point, of us willingness M&A balance Could the regulatory is as and to And of strategy broadly bigger a flexibility that's more much remind frame

-- about that group as very required tied I than of Roger. that capital that sheet you mean, see, -- is and a of from equivalents. up relatively from balance there regulatory it's is a regime. capital It's tighter is Patrick, cash Hey in billion got a environment strong about elsewhere. UK a of is can cash amount several the It's the And UK perspective. Yes. $XXX sizable we've European million

got that's couple that's through obviously that a years, largest the debt of got We've amount. -- So comes but in also the largest part. we've

part And maybe me of second tackle let the the question.

the to at sheet sheet we balance room, our at disciplined, We're happy going We balance pure are a certainly, to sure, M&A of the for be I'm things results in elaborate net clients capacity going better just size. obvious right? but are be thought to do be on think from But about M&A. deliver we're led from we And room M&A. on for our for look it's cash our do it to where to we sheet way we we perspective, that You or process and look to disciplined a client on right? Patrick, will have either plenty that have others compare you balance have perspective. going plenty of what in

then, liquidity in on you impact negatively UK have from seeking much And any UK even and update move the might And away broadly, seeing positively that, then it of funds Thanks. been LDI is could as how now? or domiciled more there pension us or are pensions? within you AUM,

Yes.

million LDI satisfy in saw or a related that to We About your calls outflows book, requiring collateral Patrick. collateral we in have of the $XXX specifically QX requiring clients the third relatively to is cash small to quarter. question,

significant LDI, was there, say, million managing a I but of that not market. to $XXX for So LDI. But that like demand us. related about in quarter directly business outflow the not That's UK it's the again third obviously, the big we're in

AUM give the exposed more you just not Like to pensions the UK? could in LDI? broadly But

billion. $XX about total in Probably

Thank you.

I'll follow either up Patrick. specifically with answer an

question next Our Worthington from comes Ken from JPMorgan.

line Your open. is

Hi, thanks question. for taking my

done I in past, for what In things terms the only if this about the it know I like has we was few but but of I them that doing minutes, heard a seems many strategy summarize Janus better. the of discussed strategy, doing

to change since made in meaningful underperformed clients execution, and outcome to And pretty of alignment, of me the seems structures, have that existing the gaps you're So, that lead leveraging think here? sort like to filling the they're comments strategy data, organizational you conclusion. enhancing Henderson shareholders maybe changes why improving proposing substantial are sort for the with really substantially? enough you when better How merger do

question. doubt Ken far more we've evolution thanks what a Look than without so very on is much for the surface the discussed revolution.

I to with strategy strategy think develop course, as on just our we start And what relative potential from our improve improve, based really client a based we me is fine then the foundation revolution that's that is discussed -- do industry out improving other to to to improve which bullets. a strong perhaps observation we've as you silver history in pointed evolution so But we have our this are there because is earn fine. to things. actually what revolutionary of It's more fair our on publicly has far. so be you of know have much just from no financials. service, to to to right And

and so And out -- that look what and for clients. seen all that better to we opportunities sure, ourselves costs. for did You've are the even opportunistically do make we deliver sure there we with diversify while to do far making

we've seen few problem, we've work clear of If that work the identified reasons, you and isn't too you've work narrowly a right? perhaps don't don't for don't pond or back They the The in you about people a strategies that think They or step the it. denominator participated take appropriately one ocean reason either too well. for call the size seen, target isn't or and that being market puddle or broadly. I the play

very to and and it's to It's client is define set deliver where clear clients us our we with clear skill Henderson as a business we want that's it. is denominator to defined we appropriate why our the how where believe view have Janus do That brought one. the For forward, clients. our for very

terms that So on where our that strategy. is a place executing struggle of we we'll in think have don't

talked for that pockets all our of analysis what out everything buy-in, actually there's I looking time to of us that are these activity The it's want bit It to and It leave higher. It's we've but before, why the you It's is that already That's is and us is about point, are there's vision, put sample small to failure the that to can fixed. the as well, our clients' top-down with a clients street Hopefully around scorecards, of course part pulls, you then at we foundation that there just right good written our ideas spending done deliver the rule place buy-in. because is data Henderson. moment too thought people on sure and terms going at size, of institutional certainly income a the whether analysis office, key supporting it. It's you're only. today, strategy you down in yet, work some and spent vision be place vision process through then of clients said base. we fail perhaps that to assets as lot intermediary. a wins from of there going across the growing strategy, both to of it's where by around aligned with And the we And put impression, of Australia. much things. just little we're the and as management be compelling Execution well and platform quicker our we've are sure have with for kind that We've they're just our being have strategy, but we we're the we're do are together levels clients, fixed practices in hope and some strategies I'm some with pushes fears say a asset A debt of paper support across whether we it I extraordinarily what a that. I inflows talked a get for process. focus that organization, next is lot And that clients' the of really things a about ago, of haven't a better or to it shareholders the urgency. around these make the Sometimes whether emerging is rigid. and can't allow across accountability. perspective, a motion as to wins, comes want a law go growing best fixed Again, it talked support or just many which to process the And tried clients. market our board. talked of that late Janus our on early week, miss that this time of do the from. There's no life. we've we And lack exactly the and too seeing something don't don't things terms of execution. will about, impression Roger. you stakeholder better clients is Ken, with the times data. look, on. in they're that's that of lot where it's second will of vision, a on trying it assure because And are walking the strategy lot know compelling a want industry the it we on need of to to our you a industry, of working in around the is a about, it's built lack and you results unless I because of get be the you this of our leave the income you broader have the buying this.

the you the risk P&L I the you how be through FX Talk quick much XQ? Okay. what hedge one impact for, how And Roger. hedge about and flow and hedges very appreciate the for comments. maybe, of maybe your that a much may how FX,

naturally hedged. Ken. P&L The relatively Yes, is

have We we're slightly actually -- non-US world. around short the dollar

but So our i.e. slightly are relatively currencies our costs, balanced. higher non-dollar our in evenly costs than revenues,

that currency. that between you I we and was like think it's the perspective can we thing and we obviously hedge is, say, sheet, revenues our exists that hedge balance capital. can through talk short seed hedge So, and anything P&L. a But our do we in and expenses I hedge even what from if don't the important slightly relatively as P&L natural We

of expenses. we've US headline a some dollar to come So lower lower and starting lower assets effect revenue headline, got of that assets in you through but see you're those lower in of a get terms,

much. so you Thank Perfect.

Our from from Miliatis question next comes Elizabeth Jarden.

Your open. line is

you Can me? Hi, hear

Yes.

Yes.

Okay. Great.

My first general control this the for than lower anything cost quarter sort materially to is the couple and quarters. guys the of couple a know I Sorry, you And Apologies, of times the that where implement, that just of was both Is we marketing in but in on. last toll are else measures, you've to pockets. expecting there? were starting question, have it there some or really just if the relative was covered spend. big of back nuance It I admin already what get earlier. to happened and don't relation to spend to

the talked definitely a today we've going forward, looking It's about is efficiency question. but about the that there Elizabeth. is Ken's There is been talked FX, cost we at obviously our Part base through number is cost of year. just definitely the we've from – of things it

from the year, gone If about now originally has year – the expectations you of talking teens noticed the my low single-digit for commentary on growth. talked and in think our we non-comp we're I over

that within lot in the want things, at moment, do. about we've careful seeing But and are of But the right do investors through. specifically, We again, come a you're sidelines. see with opportunity. marketing, we we sitting So being – to yeah, we're on talked the where flows terms of as what

hard, probably push less of But the some do slowed when opportunity. things so. there's opportunity to because we will see So down, that the we have we

guidance out But the be we should moving how Okay. growth there's I doing the FY you guys the rates. of beyond Thank terms the you are as of haven't out as got with all you. ratio XXXX. ratio lot opportunity cost around things a cost-to-income in potentially even – comp thinking And well non-comp or as Obviously, obviously parts the know, well.

of about So, yeah, think sort it we in the how basis? more medium-term should

else. more that be it it quarter Well, assets will higher I I average than ending for it my made the assets. were the XX% the – and be obviously – revenue comment remarks earlier anything than in impacted will by go again, the think, so prepared And will

about over flow fixed that is it's changes there we which why and important the last of terms obviously our for bit base have base the that figure into little cost and we cost when announced But opportunity through AUM But will shareholders volatility that clients So different be and for yeah, the the equal our we things looked and made around variable. to come a at come through of element, through that and organization. where income. base believe that we're part and we going talked There to as for those some variability obviously ROI, some through headline making, very to where comp that time also of is think, deliver our that of really has assessed cost and in starting point obviously real as we costs, being we it, are XXXX, will understand where cost see we're will we third-party saves periods. We'll all the reason disciplined higher invest But in will it's continue and some can we've variable the a more of that's mean ultimately cost well. in hard to I that flow will we the be our some making terms cost investments week.

Okay. Thank you.

from from Our Ed next comes CLSA. question Henning

line open. Your is

you taking Two questions. my Thank for you. Thank for me.

to what First little from new on? slide can you XX, put TAM? one, What if in us to just capabilities new versus increase give go the just capacity or breakdown new you're comes a of going comes of you bit a from vehicles

Sure, Ed.

we everything. side, current give So can't The obviously, right? vehicles, let of breakdown exactly states, current left-hand current it, me So here. but go give the geographies, is where are today, a it current you I exact

the that If think that we is the in of right you client-led. right go and play over to the right that have areas win we expands to the list to

some ESG is where some have solutions, some not like like that that things presence, one way income there equity So fixed on the things slightly it's Could a organic larger the left be on that in play means could be opportunities organic vast new alternatives, pea-sized multi-asset that things into like majority you out the vast, nature lot particular. most of and credit to private laid it vehicles the going we classes bigger right are but Henderson and I a but the differentiated asset in. we inorganic and privates it There's think in here. with the say certainly will give it. of in Janus room we through That would from there. little new move, of of majority of sense have is in with their right going a the there's elements that vast

And like what organic? while it sounds it's from both capabilities it's it vehicles now in you still like said not you're that there, more while sounds new they're new

have a base work to we from. that capabilities New

the XXXX. lot number out Think we So seeded about that example a the newly quite successful. were mentioned in that things seeded that amplified since in for come the $XX billion of things have past bucket. We've

not everything good. covered will the a have cover We in be

that a feel in have is of and in which include vehicles things have just a or ESG, well we for sustainability putting capability some haven't it that comfortable in the include we Some do or areas quite include like area for us. do fast-growing new industry like amplified the there big do will expiration SMAs things very which be we past the date not multi-asset but with we performing

all it's So a combination correct. say I'd organic it of of but that's most

just And great. short-term if give some us a more flows. question, little that's a could No, on you bit more detail Okay. second then just

with You of there. about lots having today clients and conversations talked increasing

there about or on the the then channel, to is and not intermediary think the still the just obviously, and in a conversations you've and people channel starting money. moving there, just happen around seen Is uncertainty anything it slowdown it people there. is having investors there institutional you If weighing sales uncertain still you're in

any at seeing you're would be us helpful. from the what give on could very color you your If more moment conversations

Yes.

think right Roger QX question. in channel billion institutional of it's a not of like short in little we that or sense I places. The back is way. seats. money ton think seeing you $X other answer start of And you a to controlling don't great We're of We're we outflows getting the in told money desire So question. gave earlier not of But lot your Look putting business. the bit don't sense LDI we've positive answered lot about already a outreach what prepared and participate predict things can that are to don't we a something increased a today, like we'll move That having and the his cutting client of from sustainable a itself. right to about as again, client to that where We're unless in to real have you'll control. in certainly it's helpful but today. we where They costs the people that's a participate where flows. because tough big very deal there's necessarily motion right It's the interest. reinvest there's with. of remarks point interest, in in get

I us. And ready. expect get We're trajectory. that overnight, performance. flow it when organic wouldn't happen pump happen have I good priming an opportunity for but have sort to time do expect growth we to over We for of, to we're some the would of

you color. Thank the great. That’s for

Bill to from Credit turn Suisse. now We Katz

open. line Your is

taking this the afternoon. Thank Okay. morning, this for questions you, very much

So first one for me just around capital.

year. changed earnings significant just you. had then, dividend stock the to commitment step be be was year? to you And pretty are here? thinking just power early spring big a Thank had should how any to what through little could wondering, thinking you some Within buy looks next step review quarter. I of in we your I down like buy policy, priorities back sounds next you Has It stock your back given from there? off a could that, back you You deals capital maybe didn't think about bit. mentioned table, this but if

Hi capital no Roger. Bill, philosophy. I in there's management it's our mean, Yes, change

buying we've point approach about, Given program opportunities to some will restart conservative the capital some in and talked Board those to of have the stock. that the management decision volatility future. as to make current been back at the and we market the including purposeful of The in whether

the look have we've capital But philosophy in that do a consistent right, program we will with approved years. continue number Hopefully, place. You're we way. in an to at same our of over been

we reinvest in don't shareholders. see we will whether we the back see be inorganically organically got We there, cash business, a not conservative where this don't to that that opportunity the were value, flow when quarter, did will say, or as need we buy generation I we've where But and then and or stock. turn purposeful have we and

over flows say, It XX earnings, months think a that you the last those I we've payout the dividend stocking, relatively some our of I as long-term is the is we whilst is the from Hopefully, over terms interest about. well look just But been dividend, In for yield. covered. that for provides see high the talking XX%.

dividend a couple the covered. well is still over have payout, the earnings but is obviously fallen increasing that of quarters, last As as

follow-up, track net gross of any expenses so the pacing synergies? equal, you're all we spending sort start Okay. or of of couple the expense a third there That's to on savings a little then point the year base, is the just where a apologize would And for expenses, then, the can and else one place a Will just sort trying on here of that And cheat break a of conceptual do we use reinvestment? time just this being pressure bit. same of helpful. bit, next as where little maybe the more out question, of a inflationary quarter we the question the maybe you're sort at if end to you versus saving, just I back sort coming in all

mistake. me one. second start Robert on the correct let can one And with the first Maybe my in and chime

to hard of some the same On it's because the -- in places. do them are

and you to you if and and in an around see then all and it of where think you'll area where back. us are distribution example investments invest shifting Roger So, And to Roger's then those of to you will one want in you from back are areas you're an people growing to example, and see spending the And where within almost area processes as away another spending, cost or spend region, take back ahead spending really to of savings the drive things predict. that's that's where we depends downs the you perhaps this of talent, part going removing the a is, talent it's cut want on offset. just why think that, I in are keep our people don't We to trigger have as right there said technology, in should growth people It the be accurate. of of point, thing gave be. think bring right? can't on I are upgrade last pull spent It and when are quarter, are place; We depends I organization. ups as The our said, right on world really depends the when upgrading a certain to coming ahead, it technology time know becomes when mind perhaps in. available we on to where in, and the and processes. put in areas the we I to

spending. Roger, later. but it's rather like better volatility we as returns kind -- where as that that I'm can and be, so get we will growth better you And to do to than tough possible, of soon currently are to So tell happy sooner we'd

that on and sales. implemented and realized, we've actually assure and what that got that, we we've line finalizing control one track program those proposed, at and department we've tight. can on the I item side The the what side water cost a We'll and around what and and where we've look things Bill. discipline actually I'd you decided what upon, comp then proposing bit initially track person efficiency specific we'll to other pretty add Yes, is is by the and thing by on we're little the

you -- So some be that in we program place. reinvesting Ali tight as that merger, exactly have whilst says, if do. of did. take to hope do we over or a may we -- back We've look we the were we five I what did same back ensure ago, we out going we the Ali pretty got And what six to years said

can gives that some exactly to hopefully, where we areas bigger point, So, we we growth. in it out you Ali's some comfort that. cost And take do reinvest when then that, will see

others everyone, no On there. the inflation yes, we're seeing inflation. point, wage inflation and like different We're to

markets We And we're to that obviously and by will currently affect lower affected continue -- that. try by manage revenue. also

a balance, not to continue But, cost inflation. we're be we'll no, our to that's tough immune So but around base. disciplined

you. Thank

next Ryan Bailey from question comes from Sachs. Our Goldman

open. is Your line

Good morning, everyone.

of ask apologize questions efficiency, I to advance and wanted couple cost Ali, also I for a in the So on multi-parter. a

So the I I challenging. was markets will review on think was said expenses remain extensive. more the that you if flex wondering, any there be

cash-based final expense or you. expense I'm it mid-office? from timing is the of of Are in to expense is $XX then, sorry sorry. -- reductions reinvestments. And terms any And $XX going professionals, that out investment So implementation, confused the is unfavorable Is be of favorable the little of of the million all I'm the mismatch? mismatch any terms versus of going on a of sort PP, back in mismatch part reduction one. in I’m to million much your coming mean, accounting? of or how of I part, be to that the versus Thank a

those, extensive. Sure. We'll try very the It honest It broad-based. was to questions. Ryan, stay on was

market on We don't we kind not if will asking obviously down. of continue operate. have, and you're That's ripcord to shareholders the of be if question, situation the cost how our goes behalf We clients. a on disciplined

we are, goes if to the ripcord how of We market on going clients. not kind continue That's however, We behalf cost and be of to a disciplined the if operate. question our on you're shareholders down. don't asking have situation

and on our is to however are But disciplined We to identified are going what on. $XX to continue million we've be $XX executing structure cost million the obviously.

is one stepping cost In savings I positives would or the first. guidance, has giving negatives, into the what terms in to of invest some without of say balance the

to want get may out. cost you you hire and they're somebody the savings available, before If hire them you

will So the there. be volatility

it probably would You'll to the get again, savings invest out bit about I you a for it's before with is. on what But it as think would have will volatility initially way goes time worth. be be clearer modeling little those the cost

unfavorable I is would guess answer. I So think short a

go go to Roger ahead. Let number a me

the Sorry. some then There our looking be And of cash. There'll -- obviously may relatively some be of accounting the We'll estate then I majority write-offs, be would at of the think around is LTI. lease that cost small. the acceleration costs real on onetime that footprint. but implementation be

So cash. be the majority will

regulatory then support last regulatory earlier, outset to specifically, broad-based. mentioned and your have at to said as question, And side. of we we deliver our were the were issues very on your the the clients question back things. I we make then first side the we And as no for sure instructions on we And goes that responsibilities

look context aspects in So have the all business. to first focus at that of of client we

So yes, We client was we if did certainly well. change. the the look interest to that. to And it PM best in of as

from Bedell Deutsche Bank. comes next Brian from Our question

Your line is open.

are I'll a channel within different presentation example trimming. -- on one Thanks But RIAs and think it's areas other were. doing I then areas all think And channel, size the it of on on peers your Great. invest of either you sort on sales focused of is it's the for sales US what plan of intermediary is more that two two-parter -- do and And Ali. it that they major and the Thanks. reengineering more through in into Good XX side question. of the for in all one XX for you thanks my you're taking that. folks. slides or underweight morning, is sort maybe strategic there. bundle sort in adding or improvement and wirehouses longer-term force versus force your around it, about really like outlining is you'll the But and

continue passive? to turning even we headwinds organic confidence to growth, on secular positive your if say to on have active eventually Just

Yeah.

Okay.

really perspective. the data a could one one clients can from leveraging around sure the best don't some deliver the the of for set we're areas So resources do. in things growth. results think and those right selective be our First number I of deliver There may on make that But undersized it's people to we're applying

it's than everybody We of clients. is job of in a That's intermediary team do better enough part have more we et business. what right? don't actually the on and sure we're really incentives, It to question kind So a along it relationships cetera, alignment have great news news, are coverage and an right? US We good is good vibrant the the of The is aligning things. resourcing underserved, activities the so and an and pipe excellent understands can speak distribution making way. with KPIs strong

from that than work people. foundation and to case. gosh on So is, good there. to actually it's we not side really have of That's got the more things We out hire XXX it go

kind the growth second that predicting On of I question guess or intention, is around Look not. organic absolutely. our

But capabilities just if growth. more one if things bigger the fine right broadly as doing organically of industry in a be debt intention things to we right – part again have There second emerging to we ago intermediary is firm, to than win. want may market I us that where the capabilities in example it the new to a was we an that well the mentioned to most pick but is the we that the foundation not pockets do should there good their pockets right us and have there I'm bigger target – earlier to too win as better. from those of to pockets a Our from is questions. We inorganically, and aligned are for right we our is do growth And growing the to eyes a that sorry have where have of team allow clients that. the delivers news

will clients be what has all whether heading shareholders we're in the to to our normalized intent market that one and which it organic "more to environment" organic recognize that things are that yes, is deliver is and likes But going to deliver or our get growth well. not. thus the towards dependent, intention growth, one is as to for So a for

question comes John from Our final Evercore. Dunn from

open. is line Your

you of a the are Maybe lift-outs, the we look they kind temperatures kind could up continuation and the guys? a people's of maybe on given of and how half, give had of the warm could Kind piece, you. moves joining Thank market third on that. in particularly sense us at you where second quickly

Yes.

pretty So it's perspective. from a there market M&A vibrant out a

a part a foundation think has what's of realistic I being over be a folks a a past strong platform, very certainly being maybe year happened about of broader, organization. year bigger of part gotten of the two, lot to

part balance It extraordinarily that. As want imagine and it's which to underlying Roger look probably And at mentioned sheet, can times, just our of sheet worth couple you strong folks who be of there storms right? balance this. a again, like are is an weather

a the as platform of part to there to them not Importantly, global want distribution distribution And who own building opposed is broader as flexibility great the earlier may a be -- a really their be folks smaller of as company platform. company. are questions, that something of some see larger attractive as to

anticipate wouldn't to out. XX things industry that kind buying But is there right, And over so, nine next I months. over than seen activity think the in what the I People are tomorrow. feeling six to I will past speak. would expect temperature everybody is so more just this stuff be of M&A you've months the

And then you. … Got

John, we lost you.

CEO Dibadj, to our Ali I'll now for End over concludes final hand Q&A. This Q&A remarks. of

all deliver on for to far earnings have Great. all you of calls. look have be of Thanks we've joining. the for what Janus needs the forward work that hope future little sense Elliott. joining. you we excellent better Henderson. a you hopefully to we a done, at updating I and start that bit And Thanks Thank further so to foundation

for concluded. has your thank now participation. call Today's to you like We'd

You may now disconnect your lines.