Janus Henderson (JHG) 2 Feb 232022 Q4 Earnings call transcript

Good morning. My name is Emily, and I will be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group Fourth Quarter and Full Year 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. Instructions] [Operator

number call, differ may in SEC. filings described materially statements Form to other conference Actual forward-looking the and in matters but XX-K the due could including, with company's and made results from a section the certain forward-looking today to, recent Risk constitute discussed the statements. forward-looking not statements In limited factors, Factors those of of more those recent projected most

update any Thank to statements Henderson made call. obligation Janus assumes the forward-looking you. during no

Now Executive it is Dibadj, my pleasure to Officer introduce Ali Chief Henderson. of Janus

you begin Dibadj, Mr. may your conference.

and In full year. those us a Then strategic today year today's call, everyone, our remarks. Dibadj, on and And then on with through call. you go comments earnings by following results. update. provide quarter Ali I'll I'm fourth Welcome, for XXXX start questions after I'm prepared thank Thompson. Janus some Roger joining I'll joined your Henderson's Roger will that, take the we'll CFO, the

Turning the in most to challenging one of provided backdrops history. market X. XXXX Slide

XXXX back-to-back As the time returns. X their backdrop market undoubtedly in difficult environment. losses suffered a XX U.S. flow XXXX, and combined where is bonds for since know, years treasuries of only negative XXXX since years. This worst annual stocks and losses you had X had over first translated into

XXXX the combined suggest. the the time and tough first U.S. results which in was Janus wasn't conditions, our outflows. net experienced For Henderson immune traded market example, funds mutual funds certainly exchange to

work and behalf employees over our Janus and shareholders, tremendous tangible to foundation though, are Henderson. we stakeholders. signs at our clients, clients, have despite progress of ambitions reflect the done, year the of their industry several As a on I There amount all was time our there upon of the achieve headwinds,

as we representing Leadership will backgrounds, partners and Janus regions call for Henderson summer, the the responsible of the strategy. SLT, we group in members This the Team, to the Strategic create be firm internally. execution implementation of parts together the of and is in and the of or brought and establishing different direction leaders Over people business strategic it our SLT

to such the also leading in investments, the and across distribution, additions employees adding distribution, operations Michael Group. American our successful as elevating Schweitzer, in including seeing former areas as talent and hired North experience organization in our a the return the highlight has firm. the Head the also We've asset of few we who ESG, been Michael exceptional To Intermediary leadership management Client extensive U.S. space. initiative in our of strategic responsible for will global be industry to

process. in in in earnings brought quarterly emerging to AUM now million I'm $X September. Henderson a in expected billion Janus call, $X with months market pleased and on to to testament energy, renewed less period our $X EMD we have we an capital investments, committed short in $XXX we today, year-end. X Remember of by is last crossed what as share do in such billion a debt of can that have the time to focus said In billion team than we mark.

standing of CCAP that demonstrate Additionally, and team building comes employees. X to are to Slide December, still creating are an top EMD even in on it hard existing investors. we new examples more broader the cab talent when other EMD making for a launched accessible many opportunities range we and currency not There

and energy new and strategic Chair. members, new expertise. appointed significant ESG including Board X also in varied XX XX% Our X refresh in provide new and execution, culture experience, XXXX, client with our or means of backgrounds were The a of Board change. That members experienced world-class members bringing

Board as backgrounds. members our the of proud are are racially diversity ethnically and XX% women gains made XX% also from diverse are of We we've on and improving

and drive savings in good to to a Fuel million XXXX for seeking Growth quarter provide reinvest is identified the business million that so business. those of spent to the that ways reviewing We deal to the We $XX strategically we use execution savings announced $XX on that track. and efficiencies can in last

we Finally, quarter model, simplified operating of which XXXX. included the sale the in of our first Intech

great the which system, order go first progress during We half management also made of live expect in to our we XXXX. upgrading

to through over our you the With of now Roger to details turn that, I'll the financial call results. run

Ali, quarter look to you I on for again Volatility thank Slide our our call the global Thank continue Starting to X, you, in flows. and impact fourth results. at on and today. everyone joining markets us

However, all over improved quarter. the investment ending performance, third AUM and revenue,

offset performance their solid, from over by investment were assets XX% other is against better Our under $XXX ending X X% partially remains currencies, U.S. depreciation of markets outflows. beating December and years. our benchmarks up respective to September which net with assets management long-term dollar due billion,

billion a per which financial to $X redemptions. previously $XX of dividend. the were $X.XX flat quarter. declared outflows includes Adjusted Board quarterly prior institutional are finally, Net billion, And share results the communicated

to X X-, compared assets time the improved their over benchmarks XX% and quarter periods. to and versus investment results respective Turning prior performance with X- beating XX%, and the of Slide performance. Longer-term investment XX% benchmark XX-year

above composite on it's first benchmark underperformance balance basis. its half here second short-term strategy, being and as XXXX, of these the X-year the its assets, of The of balanced majority impacted during to number especially which a multi-asset to QX. the is the the This the primarily half income a basis. vast today, and by capabilities. during due benchmark X-year fixed on sit benchmark is XXXX In outperformed is back switched multi-asset, The X-year we underperforming

fixed year was impacted for by historically bonds. periods longer-term remain relative tough performance The time income and the Absolute strong. very

larger minimal. underperformance of return absolute underperformance periods was few a benchmark the level income, For of of such will and our Core+ to as Shorter-term strategies happen.

Longer-term clients, approach you and disciplined see can X the with AUM process top XX-year Morningstar focus track outcomes competitively positive in long-term least their our delivered professional, X- peers teams on over to in and for to their remain and records. continues to investment compared the at XX% knitting be time in delivering Our quartiles they with to stick performance investment a which our strong they're periods. of long-term X-,

Slide flows. X shows company

whole. $XX uncertainty Henderson compared of net the billion quarter. previously and to outflows $X.X industry retail the billion the For This and redemptions billion as were $X market institutional last quarter, for included business impact the of announced the a Janus on

$X.X industry. Turning to U.S., quarter. to Intermediary while channel SMA The the decline Slide of in U.S. the in outflows client by compared in Net quarter. net compared breakdown the outflows the flows line improved were prior a $X.X billion with type. for X billion third to attributed higher to the outflows is The for were roughly

Fund that in last see the a over AAA to in the X% environment our Janus some XX.X% flow rate whole, annualized flows $X.X According XXXX, X,XXX funds CLO wins speaks industry data, growth to gathering did X% U.S. putting saw quarter. Henderson's quarter which mutual for we for in was as minus early fourth billion a [Sim] to minus ETFs. We ETF compared pockets of XX. with difficult top active of

driven billion these flat the equity of billion Sterling approximately several Institutional of $X and overseas fee good strategies and during the region previously outflows and Additionally, buyer of by have primarily outside X flows include the accumulated large which did the year. global redemptions this redemptions. were strategy income were the credit EMEA inflows announced in $X fundings. Institutional gross quarter AUM. were $X.X X billion, sales equity significant from maintained We low mandate

the of past fact, In quarters been X institutional the years. have results X highest amongst sales last the over X gross

We to $X talk institutional today. I in of large inform to growth quarter, tell you about in winning billion you about known business the new had losses, and Ali Whilst later no about institutional, presentation. are I last will have plans new our redemptions for

includes which net to billion. the slowed outflows was gross as intermediary remain supermarket sidelines. clients investors, $X for on the Similar Finally, the has direct and self-directed sales channel, retail channel,

flows $X.X quarter $X.X for in third by capability. the in compared the the quarter. outflows X net quarter is to billion Equity fourth was billion Slide

the prior announced $X redemption. results billion on the the mentioned from I As include institutional slide, previously

The cap mid Pleasingly, and primarily performance $X.X net growth pleased that seen for were strong quarter very We're billion, just billion and by remaining $X positive cap concentrated U.S. environment despite SMID were both flows Fourth U.S. mid reflecting the buyer outflows fixed outflows have income that growth. XXXX. bonds, the mentioned. I sterling our elsewhere. challenging SMID for capability maintained driven redemption growth in had and institutional strategies income fixed U.S.

$X billion, Ali the credit, within net to these positive JAAA. and by buy debt, Australian the balanced strategies And the Total market emerging our maintain early retail multi-asset mentioned credit multi-asset contributed wins flows, U.S. outflows for as were of business. fixed diversifying income, finally, Several and which strategy in driven including channels.

very is outflow And as performance, part back in the above to performance medium- net now said, due and remained short-term strong. the is the metric Whilst X-year benchmark. I long-term

Finally, net $XXX alternatives million. in the capability was outflows

the to financials. U.S. on GAAP income. Slide is statement X of Moving the

impacting quarter. financial the call I fourth to results do GAAP to results, Before on few the a want adjusted the moving out items in

$XX adjusted the for implementation assets. First, And was noncash related during Fuel main quarter. million cost there nonrecurring certain to million difference million a second, about represent our the quarter, that we items we of part GAAP to These and $XX told $XX million $XX financial nonrecurring impairment on results. recognized efficiencies a in last were Growth of intangible the the you U.S. between charges that the X

to prior primarily and the average those Henderson margin adjusted management XX.X X% quarter makes year compared AUM. fee higher quarter, prior Adjusted competitors. the out and Slide performance quarter its was by revenue due from talk is Janus ago to points, offset to lower to a compared X period for fees same the to and higher fourth turning stand which increased about basis results. Now financial the Net both

equity includes of this in fees million generated performance $XX of biotech mutual fund segregated quarter the the fourth hedge annual offsetting generated million annual and a in primarily small-cap fees. fees was revenue Significant fees. $XX performance quarter fund Partially from Fourth outperformance negative U.S. U.K. these mandate. million $XX

investment the to compared ahead expenses. the our X% were offset Continuing variable strategic employee Adjusted prior Adjusted higher includes were expenses lower variable the fixed and costs in Growth up quarter were new was quarter. prior in the for fourth initiatives. efficiencies compensation, cost costs, Fuel $XXX running on flat from million, of compensation quarter profit-based operating as as by to fixed which

to The in to we've compared compared up the revenue on X% slightly fourth the marketing due XX% on grants with LTI. estimated third quarter appendix, the Adjusted LTI an seasonal noncomp primarily quarter, of the was XX%. expenses amortization mark-to-market future XXXX to the range for prior In quarter, XX.X%, due mark-to-market. to primarily use due table grants the to prior higher existing compared G&A models. comp expenses quarter provided of expenses decreased along was quarter year, usual operating expected the the adjusted and up to compared last ratio to to to due fourth Adjusted noncomp increased the

the the On at compared percentage of a The year-over-year quarter income the to our was $X.XX, low declined beginning commitment management. quarter. and XX. expenses in was strong guidance noncomp quarter. comparisons of X%. original the our adjusted down margin teens. $XXX EPS XXXX adjusted in show quarter fourth the prior X% basis, Adjusted year-over-year operating third to growth cost to a X% the adjusted over And flat Fourth million, finally, was of diluted quarter operating

more outlook update for provide makes our on and through sense the strong where our it last strategically XXXX. Skipping philosophy to Growth. business cost the Recall for always whilst efficiencies maintain from been to efficiently XX an looking has invest and Slide operate discipline financial call, in our to XX to for Fuel earnings Slide

Committee split quarter, equally sight will expenses. and gross run $XX between and track which has rate million reviewed our to Last cost those $XX Executive noncompensation compensation the saves. of line We're business on efficiencies, million in to deliver to be

all of is Our business back savings intent these to to growth. reinvest into fuel the

will fees this the ratio XXXX the average AUM than this lower the anticipate should compensation year. lower expect amount mid-XXs All revenue, you Ending for calculation. for things XXXX. for XX% reflects a was lower be expectations therefore We equal, in range, the denominator XXXX. which in by management Regarding in

our expect marketing and we but we where Intermediary to an increase our noncompensation, investment U.S. only especially not advertising have to good to that opportunity business in on we want For grow. capitalize protect performance, to

anticipate We the also our be make growth supporting noncompensation high to mid- initiatives. We single want expense will to strategic investments digits. other percentage in

Of continue we course, for as of reinvest cost mindful to we'll our growth, be base. discretionary

to note in will there feel to real at noncomp noncash. where it's transformation opportunity, in we project to This In XX% our roughly we increase project relates addition early the to the that the live amortizing this anticipated will on effort P&L. year-over-year is areas be capitalize costs to previously expense go important through a point system management begin of XXXX, that is capitalized order primarily of which

Finally, the increasing of from range increase the of range April corporation statutory the to be effective in XX%. rate tax to the expect Xst to 'XX. XX% is we The firm tax XX% rate U.K. XX%, related the from to previous

and Moving to look Slide XX liquidity. at

Our cash balance billion fund dividends to as of sheet as during generation volatility. roughly the remains buy equivalents flat cash and been were excess Cash earnings strong December, last is year, period of back which end this $X.X used XXst to of has of very the flow shares. and

and in balance maintain to not fourth buy to quarter. approach and sheet back our Given stock elected flexibility, purposeful and management current we've been in conservative volatility the market capital to that

We and continue and to capital shareholders. balance of needs opportunities business the capital with to strong a returning liquidity investment the the position have

has Finally, share a of Board be February. on paid of the the of declared February shareholders of the to $X.XX as XXth dividend record XXth to per

like to turn strategic our to on over give Ali to With that, progress. back update an I'd it

Thanks, Roger.

our to discussions want Slide XX. of to Moving I calls. earnings strategy prior you from remind on

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Slide up XX. Wrapping on

As their proud XXXX, Henderson on we Henderson phase, to new model. with which open I roles. repositioning strategy. and expanded back experience, We to for welcome of Janus exceptional needs and We depth the our new for and look established critical the operating breadth to Fuel business refreshed the employees with driven in strategic created existing created leading with have clients' we've simplified and and us the will up for into Growth our We meet its made Board we and be new and in opportunities our I'm implement allow and Janus to growth now entered clients team will leadership and highly reinvest future XXXX growth. a talent of thus, firm progress in that

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over questions. call the turn the me to operator your Let for back

from [Operator America. Instructions] Chao] today comes question Our Bank first [Yu-Yaun from of

It's actually Bank of Siegenthaler Craig from America.

management. So my on first capital is question

why looking much did and half XXXX how excess how Janus more wondering today cash the in back not has stock and stock? Just at we're what of second the it's just buy grown, also

me this -- let Craig, is Roger.

shareholders. capital most a important management mean, capital that I the capital of the and there's change guess, in very The those that's active take thing me and takes needed no I Let investment to needs cash Board cash returning first, against approach is in and business to philosophy. the first. management balancing our

first, So use may have is business potentially I in a inorganically, talk in on need that the shareholders. But bit little where that focus talked cash bit, generation to to excess a cash we to that don't then return about then Q&A. to reinvest the organically a we more

As the repaid the again, second first see, through in in half did and volatility, year, XXXX we the conservative prudent opportunities 'XX we and million current But But market the in we half buybacks. the we given half. over in -- first were dividends buybacks. $XXX

gaps? then, not if us you're excess M&A, you just behind can kind and And and also both wondering, that buybacks on can some it that for follow-up redundancies of deals building I'm product you're your potentially using in capital smaller my update possess just scale up, for fill may strategic thoughts transactions larger

Craig. Sure,

Let me take that.

look, you have major that. driving is M&A amount of nor change as me philosophy either is Remember, is of The where savings well, to number That's that a value overlap and So is the is changed has there significant others years. do. markets be for have our -- unsuccessful. have said the that, that for unlikely cost M&A of agree view M&A our said with and and not thrust of that a vector we typically the on we

the we're type that on piece complementary-type and to flip And plenty and that's we're puzzle chance to large the M&A, be higher to we're going set reason at focused look the led. M&A, is successful. out On of of the continue of opportunities that side, there, look, but going small, in at, being we'll disciplined. a client there that's is And new or M&A are brings skills, a what

our something partner we clients. part way are be by client be to to build bringing We on and better going we And with teams, others and driven bring buy, new the that's way partner that be importantly diversified but build deliver unto itself, complementary. buy more prong. a and our It's are not strategy to we want what and very our clients' strategy will needs to of will

from next Please Autonomous question go now open. Research. from is Davitt comes your Patrick, ahead, Patrick line The

question, by confirmed going does portfolio of we've and I think quite between appear seen, be and reading some management First been changes the on. this bit distribution there headlines lines, to has a

some You that And managers. the But this to from all highlighted in fund of management for led distribution disruption is outflow deck. perspective. sure so and historically, asset longer-term a much has accelerating in upgrade I'm an

guess, or outside? all firstly, I accelerating So is kind And about changes we concerned as this result making? a of secondly, fair the be outflows observation from a should these not why why of you're rapid

Yes, it's Patrick. question, you. great a Thank

we'd tough a and So hypothesis, lot hope right. we've it's to that in I argue that time. characterize the is as right you're see outside, which XXXX, would of change from transition our a made I

it talent, reorg, doesn't serve their I Tremendous new Fuel and is that be client business, changing it's repositioning new you're up clients' simplifying set developing for teams. and adding meet current Janus needs it year and a where whether also think is needs bringing the correct, be the the right to our that our doing meet progress teams, of clients' Henderson the those tremendous whether our future, teams, progress. for Growth, in

point, They map, stagnation. stability mean want they understand creating lot. improving not strategic part want but was doing We're they improvement, when a we stability And Leadership we're Growth, are executing. a does Strategic for which them. of road Team, to we That your are now for and we -- our that the speak to Fuel clients, building

made. happier steps grateful all improving efforts colleagues that are dimensions. with Janus those And we've We honestly, and to forward the I they've my I'm made couldn't at along very the be that Henderson.

They're out any that to we've thought So better And so don't out. I seen clients. that far. for deliver driving the see comfortable we're changes We changes our are feel outflows track. the well these saying on pretty well thought of

about people and we're could if about established couple I that, strong We're some the the I again, talk as add -- to changes. just joining clear. portfolio just facts we're sure and We've Pat, rejoining. particularly to teams. that excited very teams well don't because excited a got want of to make very But management

an XX years team industry, and XX Henderson financial portfolio got which those Janus has analyst the of global average of years team firm. X in of industry, is and Our XX our management with years in the the

some pretty excited yes, organization got really in team. we've as we're about across of joiners the the the well. strong roots some So But

And then the savings. on expense a quick follow-up

I last think realized one-third more you maybe was that. expected that of quarter, you hinted but in to be it XQ, than

pack So on And out as of helped through the think we XXXX? to Where result? fourth that should how much that did come quarter the the how rest you try number? acceleration we maybe about cadence

track Yes, on for we're that delivery.

as -- call been on ran making ahead slightly the slightly excited the of for I delivery we've that think the on we're I that the in clear And as of investments ahead opportunities that fuel -- I savings we're said investing the growth. very reinvesting said call, we're about the ran QX. the we've and got,

question bit It's or to to Roger. more just timing a add behind track. the than little Patrick, being a ahead of

ahead, your Ed, line question from go Please comes Ed is open. The Henning CLSA. next from

I the stuff capital one, buybacks, Are it's focused the disciplined. clarification. you and Just first be but despite you We anytime restarting a opportunities. really on organic shouldn't buyback think doing just question saying going on soon doing first at call, organic even both and looking position about and you're to inorganically, future just follow-up the have stuff a potentially can organically the while the on strong you

agenda off are the the buybacks So at moment? really

just a terms how do about. can of hierarchy we or that investing never a it's at in Ed, And sorry, priority think organically in I I return -- has changed. again, bigger it's business, either priority We're a think we're always talking -- of what the inorganically. is we looking get

of things. the all and excess buyback those -- from satisfied once So we've is from

but no So pretty off organically moment. buybacks we we're the the not excited the of agenda, things about do some at are inorganically can and

strategy is we're And 'XX? -- that we was clarify the that further. saying. you're frame I about at But bit 'XX a this little what just relook obviously, potentially and you talking this to think understand in should time maybe just the about

Yes.

think Again, the buyback of I is go will clarity more further -- that. through will with this give we and on we as again, calls. QX capital a strategy give as We'll continue on part call. update we to QX

Can obviously you the changes talked -- you industry. on just about touch in

your You've flows spots little bit about And you're the that into then a or of the the can at any concerned pipeline, Are strong about you potential any moment. in just seen from you forward, flows seeing market? markets excited segments change different more there, very what coming going please? about talk you're

Sure.

that, Roger can chime me income look, a very right but stock in. perspective, Look, a they Let changing. offers are dynamic an our to And us. And better capitalize and clients pure perspective, it's on us opportunity offers where like we'd fixed for clearly met. things deliver marketplace Dynamic industry to for from from also now. start that have and markets opportunity That for that that. needs aren't

are on Maybe capitalize just if question, recently. seeing could quite there. a better. movements right some to to depending of intermediary to markets. changes in that now from what's again, in quickly, happened we're volatile you And little putting be we're little the But the I earlier bit, wouldn't massive happens on significant channels the the markets investments that markets are bit quite investments squint in the what a try say the

them again, to of Part lot of there's highlighted investing in area, that in more today the putting activity. clients be work a the say potential and is to clients our reason channel, money to endeavors. more are we and in it support that we're I'd those able, clearly institutional

income around little in unanticipated that income of more lot the us fixed becomes change, is say, when institutional, And not a there. rates in money particularly, area, fixed activity by all a motion So more I'd bit there interesting.

And we do a within in institutional we view. see passive seeing signs more enhanced away an from something businesses some similarly of some shift to obviously. equities, index from And some opportunities are

clearly, always of the that some areas are intermediary. those so And at, looking we're institutional,

for our that clients. we capitalize U.S. You've seen again, the in focus us make delivering big we it can certainly want be a globally to and for and And sure invest very by

from your is Our open. Ken next from go line comes question JPMorgan. Please ahead, Worthington Ken,

dive to bit Asia wanted distribution. a little I into

of the one in we're success in peers And a Head earlier some new slides you of appointed highlighted Distribution. of You the in the by industry. seeing deck, your Asia

Janus? you performing net terms is or sense maybe sales outflow in in an a how region, to 'XX? And it a can Was magnitude? So inflow as of of us Asia give

that you As on maybe be your Asia? grow after life Japan business then we sold and more Dai-ichi, Asia for impact has And in your forward, opportunities lastly, what And to most stock what may look since their 'XX, in in the products had they interesting? broadly? are what presence

Ken. question, the for Thanks

let Roger and me start So and can in redirect. chime

So I'm out glad you Asia. pointed

a very that in is from and invest great time long have it's ago. in presence that something upgrade to opportunity more a region. broadly Asia very, we we had And think

If you And think on about based prongs strategy it, comes are is when to our there for effectively really that on delivering needs. Asia. it X strategy clients'

Asia into our of many broader of intermediary clients more, more and cetera. partners, cetera, bank our our et that The think going clients, first of private et are one is think

one the is that's And areas we're think investing. region we for that is one and in so that things us, of that a great the of serving them opportunity

as to investing capabilities The the in provide And other to other the region that investment obviously, is the broader prong well. APAC is that of rest world. the from opportunity, we're

in investment of and of our strategy our in have that an instances, base. sets So skill effectively, of unique. the client rest local base that, amplify we export quite future the actually We put client are category some to that

And the the we've focused distribution made on. that those, of and outbound. focus both there prongs changes you So in really the obviously inbound both that the that Ken, those helps in with on, are X we're

you externally. enormous just and for deliver need to that see sure in continue the been to there time, around opportunity we region quite overnight. not, to It's but as grow. an locally us client we invest for good success needs region, region. continue know, news to that there been we is we haven't And some make overnight The both on to that expanding We've

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want there's you don't know add? more I if Roger, to

just to flows year was a Asia-Pacific billion Just the meat whole We It not $XX slightly a some as there. were for bones adding again, was positive. Janus great Henderson. for

Within there. just and some strong it's institutional intermediary Australia has growth, in the that, both channel. seen very So the

a We mentioned growing there. Ali last we've it think are visited the real, the So I got real we some Australia. Japan, and excited got on Japan in call great well in we had. and I business that's opportunities one

is -- to going there couple as -- we've Ali a while, business again, we've Ali in think, of to Ali I a because for there that, weeks Japan going SLT been yes, a some business grow And got like said, we're significantly mentioned of we'd but talking that in call investments relatively on before. small. see that and our that the to the about there the investments and we've is Asia

Asian One of the growing is those business.

that future. in look I the about more forward you telling So I to hope

And just a quick one.

on give of intangibles information quarter, think, you the nature down those wrote $XX write-downs? You million. a little I Can us more this

Ken, they're for acquisitions. intangibles prior noncash accounting on adjustments

want details, in say, off-line more through that So but accounting. you can you I noncash we if take

comes Please from Our Blostein Goldman ahead. next Alex Sachs. go from question

Your now line is open.

maybe that think could expect a you your you maybe hoping channel of regarding of the add could into was flows? of doing It's sort as, does a that you products beyond like you to incremental bit with in fairly net intermediary into more platforms would that bit distribution. already to little more you it's channel I that so this guys expand kind also intermediary really resources growing, ones lead And incremental channels have? which competitive all about we new little a in dig talk really But there. understanding the or lean drive existing into to comments Ali, course, know we

Yes. for the question, Thanks Alex.

that comfortable competitive marketplace, market, can team, and and get we feel we're our intermediary competitively, good we that's big we strong I'm till today. our it's our believer time question build our So developing ones and partners, than over and that understand a even the over that believer, time, because again we're ones current I'll pretty that in products, in brand, business are we a big strongly very is your more to, that it U.S.

name the America with our may be in we're way America improve of those mentioned Schweitzer, about -- the and in new that heard happening, for into his the space, to hire by that we've you North that back people accountability, we lead particular me. about changes day for he the we talked Michael strong Group, to a November urgency, all came a the operating integrated Group brought organizationally, our in from is He things name. X almost are I Client most to North changes to right that group, to already gentleman competitor to changes just market of go clients Client clients ones have and collaboration, marketing arrived excited unit very One

realign spent incentive the time also some we've to And structure.

heavy for about it's that structure, sales think you us. If force structure a

assets and and supporting delivering activity in base that. on all have That's on and share, to Again, about and strategy. adviser tied their manner. the delivering over at and what clients all are clients having them the a compensation to And the be active people market very incentive paying we've those, at We looking our looking client products our levels. changed stickier it's our country, going compensation, metrics, measuring there our

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the one, and Roger, for guide the A you, rate particularly guide. on quick expense comp

or you I missed beta guys market year-to-date if you kind assumptions baked but assuming Sorry rate? do into have it, of are of the sort performance, what comp

That's at markets. is all that -- year-end also

pleasingly is XXXX off what given guidance markets obviously, but market based I've of you well, the year So terms levels. in have started

your line go from Jarden. comes The Miliatis next Please Elizabeth, ahead, is question from open. Elizabeth

just is the The rate. first one noncompensation on growth

sort on you in you'll of do whatever the near the help of despite you're generate that the underinvesting market? in efficiencies Or sort that term? it do you amortization If back Obviously, mentioned that mid- single concerned a You on relation to pull some challenging business chunk feel high is cost really to all digits. the and spend near big that 'XX also in again said step-up. and will you in market is of term, invest is you in that going a

Yes.

up let Ali there. But number list, and think I it them, and a please pick in think up. I of miss well. pieces things number a as there's try me yes, there in And so if of follow there's it chip I

to as million we've said, efficiency -- of on track to look And in always we we're we is, those. sight we for another looked the line QX. savings. $XX had of run And of business good First hard had efficiently, million $XX and

savings you ran of a those X spending probably And bit I making. where into put Or And as investing? are just ahead then we're where I've money? investments little that And you said, the categories. are that

you categories intentional, nonintentional, -- and first like, if The X accounting. those are of sort one

we So some exciting see we to just the have real grow That to see that where talked future, to believe things. the those about. of is grow to in areas is for -- opportunity stuff intentional flows Ali those the

there pieces is -- There there. in getting That's and are marketing primarily people. people is that new investing seeing clients. there We're in in certainly out

over than last higher lower be X was been it than will It higher, be X will T&E has our or 'XX, So in but the it years.

our more portfolio that, teams. our we're excited talking managers where So we're broader things in interest we'll seeing real that conferences, and more doing like higher-quality conferences, be to

exciting So piece. that's the

that's increase U.S. sterling in little with And then X that pieces. contractual is were dollars. the contracts unintentional. is there real, our And revenue, which costs sort and our like That's well, that of other relatively of will its inflation, some real inflationary then sorry, benefited strength, has sterling weakened and them. in where as uplifts is from got areas of bit technology, and a say, particularly some FX One in -- our dollar euro you some the AUM like but you've

So that's sort of unintentional piece. an

go which important of about It's we've like very real, then unavoidable. a done over the is that that's of will couple live work good. That's of piece, said, that increase, piece is again, last shortly. And that's XX% years the that you accounting

now by capitalized. to being have piece. it's unintentional we excited the but so so that, we're pay P&L, the in for And accounting That it through piece

Yes, you if they're like. fixed,

make you've to those We to careful. even by investments. excited be more those We're got then want really investments. So

those at how right in how and else So sure we that doing continue to efficient we make everything more doing. we're we'll look we're be can can

underinvest. not I going just assure to we're to you want that

potentially And is performance business is a question then month fees. to or some of we mean, in placed pretty what a stuff negative? watermarks gone years, of where be terms sort sort of the how are in. second fees tracking that it performance on your you from obviously, might on just able getting fee because the around just But in be to I we've helpful of of -- performance next couple sizable last we're 'XX sense FY be think hardly place. year So a whether in the high just would perspective, you a characterize

about can a there lot say, of a which or X a moment. to little off. got can either these they're There's midyear pieces assets, give of they're performance those fees. X-year you funds, see subject so There, a areas, help you what's the which billion of the year, I again, can but because, rolling, performance there's We've at the Yes, see lot Crystallizations, the you couple are are at. is that year-end. bit, their very in dropping negative and to facts, and not fees as $XX U.S. of you mutual it's look to early

with We'd flat performance those to performance. have to good some improve add

can you fees we performance would dropping million, any adding. million calculate you in it's about know negative performance, expect So would $XX in XXXX or with we what's of But without off, see know you $XX alpha. to what don't flat that

on performance Outside $XX it. billion about of of that, with fees AUM there's

As are a are high at good in that's number predict a to a range to what's in it's or watermarks. above we and products of happen. But going I -- their difficult of those say,

in, So numbers hopefully, those as do alpha able but depend some sorry we to we for year. and help had what on not come being good will in the fully can that

from now Bill, from go Katz comes your Please open. Suisse. question next ahead, is line Our Credit Bill

the release for of First thanks time the helpful. That's of us. all, for moving

of think gross spend mid- it? digits, impute way Is double picking maybe single right gross to If in to single, noncomp. it increase high just rate. that your then to on high net noncomp the low question, sort characterize up would a savings your first and So about of I your year-on-year

spend know B, start the to obviously, in it's of beyond if for that's spending terms you intentional we about And rate? as cycle growth on where I maybe correct, and early, But in think of 'XX. the 'XX sort noncomp are that

QX. more start so over said, on you in QX, will we as were saves to spend. in ahead things Yes, Those running materialize

that normalize that. So will

-- why full so said, a little which and QX I'm artificial a look So just at that's rate. as probably really growth I what wouldn't is -- you timing. I bit think mid-to And should is the year, saying, high-digit Ali that's then is

an who just we on the call with hour with to Liz, doesn't you the agree later. -- the an call probably on by hour As moving said with

sorry friends. Australian So for our

XX% accounting. that is Then of

So pieces, the investment. as into in split right plans places for there's and as FX get there's to the We're trying you're piece, can. X I those. soon we of said, accounting, that there's And going and inflation got the blocks to out as the that investment yes, the we've we

math didn't cost pure investments higher. just If significantly our the I makes you're savings, we it, of sense. have Bill, that And to the describing would think be how

in right range. probably low the double that's digits, You mentioned

And just a for you. follow-up

now So another had seat you've progress. in nice months the make X and

the non-U.S. income over on of make fixed retail improvements sort that sort the sits industry, going some the footprint How opportunities? you versus about the et of the you of acceleration equity, set. shifting shape democratization, today As the your between in bolt-on thinking cetera, maybe think and opportunity can is that's the of

the just by more M&A cash see of I the be sense that combination I'm may Or that a so what's two? how is using the trying mean is is, or get here free first you under about on need being else that equal? And flow. mindset you're to hood what a of it all to the sort important, thinking

last seen the spoke. Yes. under than what saw the easy dynamic the industry predict. is the Look, for coming I same never question, direction time dynamic, I be Thanks in would Bill. it think or we but I've different hood, it's anything to else don't

if feel be the deliver emerging wins having future for confident feel be the whether whether of about be current and we we have better strong as we've anything, I have bringing we're solid described with client in ability the want much very is you or us fact, far, now about some it you. it In foundation Fuel more or way have clients from we that exactly client I have having I debt and whether to grow everything that delivered so more savings JAAA that very, it are our much our mean Growth what had back market in I what really comfort needs, That the early it. talent, talked that for That well doesn't it. able positioned. here from actually when absolutely to

we clients partner our buy, clients. build are looking board and where better the to find deliver areas for can We across service clients' and our to

world, in things my say bear distribution about has that of on service buy, be confidence for or may within that the build that more gone private up that strategies have in that clients client our gaps the may have investment some to foundation that wouldn't we I up. example, We've or broadly. And of I'd top down. importance certainly M&A say talked that we has be the tools gone can partner to to we in. bring or other

your The Please from Nigel is question go now Pittaway comes line ahead, Citi. from open. next Nigel,

made the else could, a Is performance was performance a to flows? not you're you've Just is I it's of Mid. on contributor of there to Or SMID obviously, in the comments connecting saying with very wanted if outflows. still there sort strong mean, and just time? that the return, that's big really to I yet something on going that 'XX, matter equity

able it to from a would clients. to or are does always that deliver There important that The I meet mean drivers is those those you growth product be you look, be and that obviously. having to to perspective most -- of financially product client to a a will high-quality or up very is two demand, in different P&L products. not has have which successful

about think So number step one.

Mid-Cap, they that Small wasn't XX Over because invest and and particularly maybe money years, a haves have as deciding and have in the companies okay. good one between not important and quite had shot at have-nots, in would was past pretty free doing

we not their that our our differentiation have companies Henderson, less the as in our time skill the spent set portfolio Janus past all and management associates so years. understanding have analysts, kind And XX which of teams, have a important

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you've And so in perspective our so it's that effectively bath with to seen flows the in this because water, impacted baby be negatively that marketplace, speak, from would that not a a I'm location seen. you've a savings surprised

how more not even have has going real forward, X forward and know that the comfortable see investment very feel and going and to market But very, differentiation confident, alpha. teams that will groups those create between our that very differentiate

goes be at these to perspective, their limit for clients. while. is it They're distribution were those deliver point, view to my is products, can from that client the capacity a certainly ones in U.S., the second will So which closed our some we the a Then a the perspective. there. Well, demand products actually of from

at not anymore. are they those Well, limits

We to are have U.S. very, targeting bring guess, the in distribution want deliver to those we and to to intermediary, opportunity to clients intermediary our them. a some deliver force which APAC them, as thoughtfully earlier this questions of clients can that intermediary I have EMEA and and that

about of things. both good give bit you color it's it's hopefully question prongs, a we and those very a little of think how So and

main negative? just hope maybe start to that to sort raised wait alpha X any those in delivered that just, there negative. fulcrum and and the mean, funds before, reduce causing a matter as obviously, I is will there Is but a fees just then And follow-up, are funds Or there are of of the obviously, be get the see? that

ours, consider a is right? will on. performance. certainly Well, improve focused as our we're We try your to what little to guess as good That's bit

the every But that's into to can't every time performance that You model portfolio. over win or be improve future time, back that we should every certainly, from clear, like a But And day, there. to we'd perspective. put our nothing expectations.

concludes for That our session Q&A today.

So I'll closing remarks. for to Ali Dibadj you hand over

and Janus and thoughtful stakeholders foundation I for take hope everybody, to feeling deliver a the clients Henderson. call time, Well, that changes to we for joining work Thank reposition we interest are for our you we the other your firm but will believe joining. the our employees, better you our and for in clients, get on for thanks, from. their today We're to this Emily. shareholders, track. Thanks, have making great

joining. for Thank and this gentlemen, you. concludes Ladies call. today's Thank you

disconnect You may your lines. now