Janus Henderson (JHG) 2 Aug 232023 Q2 Earnings call transcript

Good morning. My name is Sam, and I will be your conference call facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group Second Quarter 2023 Results Briefing. All lines have been placed on mute to present any background noise. After the speakers' remarks, there will be a question-and-answer period. time, follow-up be question. of initial to interest one and the questions limited will one In

from the In may number those Actual materially described constitute conference of forward-looking projected today's call, not statements. results certain factors, including, in could limited to the statements due forward-looking matters but Henderson discussed the the to filings in to, company's XX-K and Form any statements risk made the made call. forward-looking in recent during and obligation factors Thank most section assumes SEC. statements forward-looking you. Janus more update of recent no the this other differ

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

Earnings our and I'm for Welcome thank Call. Roger on CFO, joining Ali you Janus Dibadj, joined today and Quarter by everyone, us I'm Thompson. XXXX Henderson Second

call, before quarter those then more provide In initiatives, our on with run handing prepared After strategic over start an Roger's today's thoughts through questions Roger after comments, take I'll your to on detail. some the remarks. I'll update we'll to and

we're strategy opaque pressures, stocks. interest our and headwinds, X. results. narrow are slide very quarter executing challenges, UK delivering backdrop. while pleased and led continues contributing Janus second make been the amidst again, been market few rally recession progress, returns Europe, Even that fears and uncertain. good rates, to have macro Continental notably by uneven megacap And in inflationary market a difficult to Markets and to quarterly Henderson positive, an extremely higher remain including the Turning economic year-to-date outlook, has Persistent

since quarterly this were markets to to X% negative $XXX the year. increased The due management flows positive under of and XX% are up beginning billion the million quarter. Assets $XXX.X

significant improvement a were from to of outflows of ago. best at shows months the negative, we the this is during for where the half six from back broader billion, years. the three were just the billion While Taking Inflows $X quarter, first first the picture, a clearly marked XXXX step improvement a year results quarter in our look second nearly result XXXX. $XX of

Let we were me billion in just sitting in year at $XX flows. Last net again. say negative HX, that

progress. we've promise in said Now, we're net despite that consistent we're clear flows our a also $X remind won't improvements. be and you, positive flow billion positive flows be not to the at To to able trajectory at the tangible linear point yet

As we need begin takes second our time. to the pipeline we year, of which half the rebuild

few that continue will firm flows near long retail the be a will in internal of especially in are us to Our a make transition flows impact and our term, pockets negative, stronger negatively there but EMEA term. the for

flows from remember way believe That being our future. we the collaboration, clients, and particular, encouraged levels greater with and our total negative conversations and the given to $XX sustainable to momentum remain show improved investments billion expect that annual were client activity we that accountability on In and investment great performance. with having business last year's improvement service, growth in and processes, and selling are we're we organic said, net the sales in in

one strategic times plan quarters an Given two flows taken of to or positive lead deliver we as long one the over this that our expectation be indication industry, our that in next net two continues is to hold. years,

markets our of insights, outcomes The possible and best discipline deliver in distribution our basis. differentiated teams clients. a the solid these aggregate, benchmark is clients assets ability three-year positions investment XX% deliver to It performance. their investment ahead across capabilities on investment our navigate and world-class for investment of world-class to with service, us and of all to well and Turning uncertain

improvement, for results sheet. organic consistent on are balance a path showing much have stable we cash growth, and we clearly our strategic deliver opportunity we're to generating are strong financial summary, there's our and flow solid, good progress In still

call over run the turn to now I'll to you Roger the through financial results.

today's Thank to and call. on you, for thank everyone Ali, joining us you again

five to Investment benchmarks with this remained and Short-term investment performance. time versus versus two be XX% XX% time their and the benchmark and beating periods with Morningstar continues periods. one, compared income remain time to in quartiles to of performance all XX%, assets strong solid X very over benchmark over strong. longer-term the fixed peers performance top AUM XX% Investment slide performance of Turning competitively respective and the quarter XX%, periods. three, improved over XX-year

flows. company shows X, Slide

year-to-date quarter, not million there and mentioned, this with were to deliver time to yet. Ali consistent net organic the our goal over we're pleased while compared is we're As flows and outflows $XXX growth year, prior

we Based quarter an to on third items provide Ali that outlook discussed the flows. wanted for

As $X.X here negative of to in today, net outflows we be expect in billion third quarter $X sit to we the range billion. the negative

and to the regions outflows are Net general were Turning has in intermediary quarterly $XXX in to industry for channel first look flows. Henderson interest the This slide to flows compared weighing billion was a experienced Janus on recessionary for by in LatAm the quarter. at flow The regions. is X $X.X decline client million from the and rates and higher EMEA type. primarily those challenging a as fears environment not unique

the a the is told we've Grow supported and ETF share. flat Protect net we're same of security capturing that strategic in intermediary half strong US are year that mortgage-backed strategies a outflows several positive US significant and Mid-Cap ETF, before & our ago compared market US the first in in pleased a improvement we you period including pillar showed and XXXX key initiative intermediary our CLO that under growth. flows AAA by were flows virtually We to

from versus QX $X Institutional and adding $X.X were to global in flows $X.X the Pleasingly, insurance included insurers. quarter billion billion sovereigns in net a the billion first mandate inflows quarter. enhanced from index other a client

to-date. in had debt In QX, mandate we addition largest market emerging our funds

on distribution to after working build is a benign will this replenish were Redemptions that that fundings sized similar comments anticipating not QX last call our with in and pipeline any in and QX. a normalized team QX our time. in line are quarter's take sustainable We

for outflows the clients which better offer clients Direct haven't their the an pool our important million. includes direct strategically supermarket The US. investors direct a net of helps a better direct were to to us desired that and and we business the assets investment previously service guide $XXX financial they to quarter deliver investors we Finally, outcomes. our service for and achieve in is second advisory This our US during channel to self-directed is are positioned so offered started

equities. second flows of inflows in the environment result quarter to the a by billion net were good breakeven considering quarter Equities compared Slide X flows for the in $X.X in challenging quarter, capability. the active prior

income in multiple have medium-term inflows short of Net that channels fixed to $X.X quarter. we investment billion were billion products that the fixed compared able and income, prior and in We performance flows remain of differentiated $X the regions. challenging despite is encouraged breadth across capture to

CLO positive the of positive fixed our Several debt mortgage-backed inflows flows for and $XXX income fixed which million of emerging market in market quarter crossed management. income had and under $X flows strategies million billion the AAA ETFs ETF Elsewhere, has securities the including assets had by contributed to the quarter $XXX ETF. led in net

for $XXX over in our and driven inflows the was $X has US grown year, net retail to by outflows Total For $X.X our income strategy ETF gathered balanced multi-assets the billion. fixed billion ETFs within AUM million channel. the have

one, outflow across strategy outperforming is five three, net versus peers time due the back XX-year currently Whilst in is in benchmark short-term periods. and to underperformance part XXXX, the and

the from in million, net return and Finally, and absolute the the outflows UK alternatives were primarily in Europe. multi-strategy capability strategies Continental the $XXX

income. X, to the adjusted average increased on we Slide management on X% financial Moving performance to is prior to increased primarily the And slide on results. due X Adjusted explain financials. AUM in addition fees. fees GAAP higher compared statement seasonal the the to quarter US of revenue

Net third margin the All is the the primarily fundings XX.X. to else to was for fee quarter second quarter management first of the quarter. large stabilize institutional equal, The half prior compared the due of management during in anticipate basis impact XXXX. decline of XX.X margin to we fee points the net mandate

US negative from of European partially Trust. negative fees, generated the quarter and performance Second fees, primarily performance offset million million Investment by Companies include fees $X Smaller were fund mutual $XX

performance we today, mutual future based here for lower the sit be the aggregate fees. our towards year $XX performance result million. fund will unchanged from As performance. negative million on fees US includes full million on remains negative of Clearly to This current $XX performance, roughly negative our dependent $XX of the estimate investment end

to includes up expenses. the $XXX in X% higher X% to variable second variable on costs, the which fixed quarter, expenses accrual. Adjusted Adjusted from were employee due Continuing was up primarily quarter compared cost million, the to prior and prior quarter. operating compensation,

by XX% down vestings in largely expected to models. amortization provided compared due grants the prior taxes to Adjusted the we've existing prior the in seasonal future attributed on quarter, annual was appendix, quarter. the table your LTI BTUs of In usual the payroll

due marketing to line over non-comp again to to and adjusted to quarter QX. primarily in the G&A expenses. increased second with revenue in the XX.X% was operating XX% quarter, million quarter $XXX.X higher comp expenses ratio The operating increased line Adjusted in income prior Adjusted expectations. compared with XX%, prior expectations

operating XX.X%. was Second quarter adjusted margin

EPS Finally, was adjusted diluted $X.XX.

XXXX operating Updating for year full on our expectations expenses.

strategically the We always ways now saves fuel on to to We to million deliver growth looking to more back to high provide at business. continue for costs to expect $XX the to the communicated are into end disciplined operate efficiently. previously least and in be reinvest million $XX of cost and for

guidance and non-comp unchanged. Our compensation remains

ratio in mid-XXs. We expect the compensation our adjusted to be

the the non-compensation We high-single-digits as in our expense of we half year, to execute to on costs to acceleration an mid of which percentage continue growth expect prior non-compensation implies adjusted year strategy. for our compared the second

project, T&E of just include previously with increased associated capitalized amortization the will expenses; costs campaign; This brand following the disciplined this go-live June. our OMST important successful and very our began which but in of project mentioned

a our to over slide to X liquidity. and Skipping slide look at XX and moving

very from and needs of increase June, of maintained strong. by cash generation balance with strong the We've a opportunities $XXX equivalents the offset and investment capital Cash we position strategic continue the business capital spend. returning resulting capital the cash liquidity shareholders. return and approximately strong remains of sheet to to balance and as partially were flow primarily Our million, XX $XXX million an

strong continue last in not we As XX quarter's this anticipate of cash August. XX on of We'll shareholders shares dividend as the see record shareholders August has organically be a paid to and through to quarterly I time. share back per declared investing at given the to Board a the buying opportunities business call, in $X.XX the stated and on return dividend inorganically, to the do we

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

Roger. Thanks

slide Turning give right pillars our core to to strategic XX. where win. the Protect strengths amplify reminder & fully leveraged of our and not Grow businesses three clients A of our diversify us

and are in consistent believe growth the strategic organic lead phase We we vision over execution this to time. revenue will

US In campaign, our talent, importance investing have and Protect We've & of protecting client this about the intermediary Client strategy a and previously org and launched growing talked of business brand and engagement. supporting America compensation channel. and wholesaler we've with North national increased growth aligned appointed new structure selectively the upgraded Grow, Head Group, in a been

overall organic Significantly is XXXX. negative first flows all strong negative in adviser has lumpy typically tangible. of of compared offset in at flows the a group to progress X% into by has rate channel, a annualized see for improved been negative the retirement organic to XXXX, half been for rate our net resulting growth Progress and X% positive pleasing

client channel. better is coverage mentioned, $X are of about other previously talked types, specialization. in many aligned Under to are their through professionals greater importantly, serve positive businesses. new we've diversified Roger be in more restructured the needs year-to-date different the and joining and appointments to almost Amplify, we We've made alternatives us to billion months. our helping market business, coming this which In capturing As share flows institutional institutional we've

growth XX% which hedge funds index first experienced Diversified enhanced and the alternatives, AUM XXXX. funds six in in months of includes multi-strategy has

to vehicles what us. and continue products also new on launch clients are We our telling based

Innovation sustainable XXXX, in strategies credit example the established an Emerging in OEIC Markets a ETF Global CCAP. SMA For in Property and Australia, additional in fund we've Equities the active US in Fund a in an

starting markets team ago. Under brought last a manages our emerging AUM debt pillar, after in billion our now less which diversified than September, $X.X zero, we in at year

look to actively give where continue we partner us build to buy, to Finally, right the to clients or win. diversify

into advantage take looks example, private Venture an retail announced the democratization As alternatives Joint of to we Privacore of channel. a the that

Moving with to which diversify and slide the business. products investment Wealth an Privacore, open-architecture Privacore, grow venture alternative announced trusted adviser aligns to and ambitions tailored XX Private strategic joint a for is our more in June, for distributor we background in our with on US and clients to new

the Privacore and asked market future leadership for taps clients further position in grow our credibility of fast-growing Janus a of as classes asset strong Janus in with industry Alternative where with M&A, strategically the a for segment clients our team and Henderson, initiative Private into have partners to firm. help. strengthens a our The strategic important focus Henderson's

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expect the and through estate, investors Privacore portfolio in Janus equity, private with and integral investor will an bridging real classes. infrastructure diligence construction that Henderson across debt, education, assets asset between non-traditional alternative plan of managers We service other role client and gap

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through to better a that don't. that shows returns Moving company. mission believer defined enhancing a and the which culture clearly company-wide long-term and strong MVP. than XX, generate of we're essential successful Slide those with our firms or in purpose companies firm success is a to our shows the how values that are more a MVP This I'm MVP

and year we stand what gives a this the are collection We of not firm North a MVP be a earlier us to but introduced define It to today, as we in future. individuals we for for and Star. our clear who what want just

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to a with landscape. all coupled guides of in the Fuel and MVP allows help our decision-making Our competitive direction colleagues move foundation prioritization on in same this creating for and us together strategy to win our Growth

execute Growth financial I'm Investment performance of quarters. up quarter progress on XX. back Net including business. this more the for Fuel the made past on the to Slide billion strategies, providing positive building is on $X to we proud and flows are good our progress Wrapping are results in of reinvest solid, year-to-date. continue

the through Even go and to are so, not will linear, will be rebuild at remain least which pipeline, XXXX progress XXXX. institutional over we will negative particularly our flows an few in quarter. third flows set to quarters, the aggregate happen when improved flows pockets overnight lead taking negative of as we significantly be next not Success transition and retail versus

early have as in executing to is stages are progress We shown, starting of bear the strategic And fruit. plan. our we

We believe our over time. revenue growth strategy will lead to organic

focus employees to and for all superior Our and to continues results our stakeholders. achieve deliver and helping desired financial outcomes shareholders be define our clients, other clients

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

line comes [Operator Please Ken, JPMorgan. Ken Worthington first is from you question open. Our your now go Instructions] ahead. Thank from

relationship? morning. with taking are In alternative Janus the seem to Hi. Privacore, question. Thanks the what positioned this Good relationship products that for best with succeed

a biggest like Europe. think I really products Return think of Privacore I mentioned alternative sort platform. Absolute are registered your is you also that But or distribution US-focused strategy in

So what existing on new well this much those of better sell seem maximize assets do products have today? And will to kind products alternative positioned platform? you be products how this relationship? And to developing

Hi, for very much Ken. Thanks question. the

Henderson, to look we're democratization firmly the off, sophisticated So, the democratization private certainly potential question, investment very this believe way Because exciting in be a of to both first that about chain. Privacore And does the of Privacore. can venture very your joint it Janus with value serve will does to that the is with believe our of deliver Privacore. going We alternatives start and this broader answer participate ends of and in on enthusiastic serve products. we

investment capability client us to access managers. of the told have to A alternatives alternative more but that don't perhaps have who capabilities, have set those from clients, service want they ability

relative sitting that On access that wealth, be alternative a is to the they $XX wealth from should the a to of the lower of actual want allocations flip there side, are and given where managers private lot to investment perspective. broader GPs, trillion get

service want the the scale And that there, don't have to they access investors need. so but to clients client the develop the get

both those US, our for ,and of starting for and Henderson right those exciting the deliver the to our Privacore, going with think out middle to coupled opportunity ability a channel to and in shareholders. interesting questions the clients reach Janus in needs. for So to brand, that's And we retail and be both sits really answers answers the our of us

view. broad So, that's the

that then just an Its platform. have alternative question, also access selecting architecture it's asset is the the to to deliver may that service base there. client but value of best-in-class not We client Privacore, specifically in great very your products managers, open proposition, is it's point, need Now currently. the part, it's

clients. why Privacore culture You're But have anything selecting is our a be has there's alternatives exactly, liquid If which necessarily, the that to now, why to there the right. closest it don't deliver right in team in businesses. great is Privacore, the which it's managers open products that's of experience out best right has, we architecture, that the of will to

time plan. down question, for could the question? second bring us that capabilities, Privacore liquid of we That's clients in your the to And and potential the illiquid area. Over in legitimizes have relationship alternatives Ken. Absolutely. Thanks via fact, part your with part a to further, more having M&A line the for of can we alternatives even Privacore

compare Okay. follow-up, or recent you Yes. rate to winning the XQ, you've EMEA. Understood. in the And larger lost, for a mandates in fee outflows rationale quarters? fee being rate been Any the redemptions? Maybe for redemption the you the mentioned assets as versus can the that

and then you the start, it over give So, to just context. Roger, to let me pass

We here, and quarter So, the and mentioned also our beyond. want we in project pipeline. delivery on this it, see to make couple QX a our net forward We've certainly don't have about into than bit sure flows be talked said people We for that, things. to quarters We a just last past of is just QX, little consensus replenish that, guidance of being One the linear. few quarter look challenging. different it's won't intermediary massively. not you'll

peers. for for a bit. EMEA expect we And There's that especially you nature transitions that going little numbers, some through an a will obviously, market internal XXXX market we are comment rates continue lot certainly environment we're expect better is be a pulling economic significant uncertainty us our despite would seems what What an back And improvement to make better versus to in the intermediary about high. of be say QX. to in outlook. particularly, where longer versus in That's the EMEA see quite for step I though, the firm are outflow back, in if a that term. that share take look year, we and better us

Now, let comments for to on broader the over me hand rate. or fee Roger there more

sure. Yes,

our rate, winning quarter, you fee to not because sovereigns in were Okay. last we're those Yes, clients. anticipate the And as win. told mean discounting impact time, success we strategy. institutional that the with we in I we remember the would in margin order and business large fee that But the over we'd stable near-term, execute importantly, insurance

I think when I identical look at our XX are largest strategies, our levels. at actually inflows fee and our almost outflows management

So, expect about around pricing And stabilize by those in a half story. it's a the basis the we'd It's really expect where but fee that that the first to rate have we've fallen sizable been. that in forward. institutional, management fee but of the rate sense in not we'd pleased point year, makes been so QX, has inflows inflows see to going

Great. you. Thank

ahead. line is go comes Craig, your Our America. Bank Siegenthaler open. Craig now from Please question of next from

wins attribute factors few to two but flow net also or a Good morning, the I some better-than-expected realize you nice Marc be? it's side. on second row could Ali second large My is quarter institutional see the on mandate if Pinto. those three question would in were what another quarter factors to congrats of like there and quarter. flow flow really number, better-than-expected And returning the in a stars your

around that things and Look thanks, Craig. at continued firm a doing progress hopefully the it's a we're Look of I that. lot of think culmination

person at take call at I are XX the of or clients. we've expected talking progress. back step kind -- I pleased Henderson have progress it that if on been I of that least this Janus and firm done past wouldn't argue and behalf months, I exactly we has very am the XX our a about would this at look, every So for each

year, perspective we'd relative If the plus year where from you negative $X first are ago, it told flow me this year a billion last to think inflows half billion about we $XX in year. be a of

there's I improvement there. a cycle real So think

your whether is a or of activity. point is things the uptick EPS bit your to couple that significantly to results flows, has that One underlying client to And a but translates of little question.

And with of clients. as and screen. talking that on like, on transition they're vote and the through filtered like far good we're us do has pleased They're clients us. they through. flows. delivery They from seeing want who were been much our frankly, And more we we've So "back" that terms and what to suggesting we're culminating filtered of I to confidence the hearing waiting described their clients. and radar our business what They're what That track giving we're would look has and to pleased see. quarters exactly very of in so like that you clients, and progress our that's with

I intermediary from the the business. prepared an market and share negative of the opposed in linear that negative at lumpiness year, core that's we really wholesaler-driven in driven can retirement Again forward. think we're perspective as improvement was as X% don't intermediary intermediary take X% the think we at last year promise business remarks I a by mentioned of I example. US channel, out don't the to some flows and we're woods, real US positive going that is But what are seeing this

seeing on you're a up see think of progress lot And work here. we'd over done tangible past it's like and I built So that that year the again, the has the continue. great to team

to into we're in mentioned in bit there improvement macro it's a -- environment challenges obviously EMEA QX It's on and in to have also of large continue have it really terms particularly, wouldn't intermediary inflows US. point. this not given that the we focused QX the little on like feels we Roger is the that mentioned in at intermediary relative as I institutional a assuming expect lag

question There's things right So that of in hopefully Craig. bunch point that a direction. answers us the the whole

lot I is get benefits that both the Ali. clients. of been strategic I appetite for you've this and your to experience a take a And to to seeing the want know Janus partnership on insurance could second on it. with step one My you company Helpful with provide parties? read an with momentum a have one further insurance form

opportunity think to So clientele. look provide a skill our real that sets we broader insurance a there's to

set strong clients clients Europe, in have we the that deliver deliver even right we of the that insurance been them, to have insurance now for We them recently that relationships And in long-standing have where very with. particularly have most number the we're market global actually had we we clients, able skill believe insurance and sophisticated further. increasing we've very to

clients' that insurance have relationships with mutually today. we product that our Henderson talk to if insurance some and to client service we been and can You're can focused we're Again, focus. seeing insurance we there's and companies a or been companies them from and be have I've that with otherwise whether nothing is our our historically, and great right clients otherwise, together perspective had do about has perspective insurance quite speaking base Janus beneficial, continue on clients There's them. client and think foundation to strong the on that with in interactions deliver part certainly of it clients, performance there and something we active broadening

you. Thank

Dan, question now ahead. from Our line is your Fannon go Jefferies. next Dan comes from open. Please

flows. the I follow-up morning. of pockets comment on internal transition Good Wanted think around to made Thanks. impacting you a

you continue that's seen, for talk you maybe but think we've of few for of that? you headlines XQ a disruption guidance to about And potential much think more So flows, going where in that the as some whether the quarters And thereafter? this part are process? ultimately as how about of for

much question. the Dan, for thanks very

and the that short-term for the but clients. we're look for things the may the things particularly the increase are the sure, our in things are for that for definitely right doing specifically transitions future So future right volatility

ones control or the these least client transitions led. are of at that All

And their even responsibility and that very much entrust manage managing to so that on we're want have money seriously sure we as our a when we money entirely take us to their and far focused their the perspective. clients well-being, colleague employee before more managing from money than make we're and

is making or is businesses in surgical have make client businesses that to it are transitions real in look they performance very be on other every there's of expectations those two that transitions. at and to are sure for products at making One industry whether be sure specific flavors The take again the being profitability do needs this sure focused that broad industries typically compliance those and company met needs growth and look overall. them our they going to in delivering real there

We've The to or already, easiest your done bulk two of performance I for those and are and decisions well there particularly criteria when big and those Fuel the are The come here from easy again decisions but it mentioned there. that a only some like other of done. question that but have the through of are of a Growth one don't don't some stragglers clients as bulk met. as meet few things aren't perspective when decisions, been are

typical turnover What which second obviously, a would flavor, is which in there's I say more industry right? a So is quite typical happens bit. this

board the those than Just turnover industry for I'd we ask client over. you turns retirements that and that base are nonetheless. are less have how We've we expected. Typically turnover about Henderson fortunate across but had things your to been Janus us, that think

great each is lots investment that. we there time of news have really to. have long-standing the the investment that because we of processes And great tenure that we have to XXX around teams hold Usually is and professionals manage

of in the obviously clear have every a transition board. will our all be We things again, client tools, believe We transitions instance these more alone deliver. in somewhat let very succession that led seamless have to and risk seamless they're we even we And be construction over again we in can plan over portfolio that the across overlays, that going bench. have sorts other make

your to positive years that. one for one next kind then two to longer-term of quarters clarification over of view the two for another kind the And of appreciate Thanks color. of I flows.

of challenged US And about two one intermediary showing steadily stable still US to two then being may about the and factor over so institutional thinking to positive that quarters the direct in kind swing having about outside the the think to of being improving in as you we years? and and progression be trying one that just scenario think about next think in how

Yes.

to strategic strategy a strategic hold. and one we're this and road So that map with a between even two this has quarter next established We're that We've to year look year. the was the more first the taken very clarify revamped we focused on year implementing term. positive plan the our longer just quarters further remember -- anticipate and team and of focused

we're intermediary going -- the in those long can't channel. want a There's your seeing To year. We're but project progress these institutional to for signs seeing forward. had don't Again, $X cycle that this point, billion progress positive. We've are institutional. certainly in of flows we net

seen the right, you All diversified this direction. we're necessarily part in In like very in where I than and would before. pointing other much and focused isn't that the better year. this know be linear are we've said areas, going this us to XX% of things growth we've those anybody is, What say first alternatives right

can't points I some yet improvements we're sustainable of We in and consistent significant point So that at promise to to way lack We pipeline don't growth, of want believe, relative overpromise our this see your we the to year. point, can the we organic the clarity growth. on side. but given the last on at challenges on certainly institutional have in to EMEA this organic

Thank you. That’s helpful.

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

much. Great. Thanks, very

Just a ratio could if quick comp question the guidance. I on

still So quarter, first had but XX.X% obviously, you've think XX.X% second I quarter, the to you're mid-XXs. guiding

reasonable that implies quarters, the is obviously come a does a that in down last that So bit two it assumption?

Nigel. that's Yes, reasonable

still US, first mid-XXs The given the applies. always timings is particularly that high guidance in but of quarter

Right.

means, really hasn't presumably going LTIP because, it's your come that So, moved. through guidance expense, to comp the right

the it? I'm way at that looking So, is

Yes.

All this XX% just reiterating similar quarter? low right. quarter reason XX% why to obviously, And particularly the was you're at it's then even vein, again? a that reverts on tax And it Okay. that up XX.X% this Yes. any back rate, and

Yes. It's really calculated. that how it's

to the NCI. You exclude need

NCI, the exclude is quarter in second you our If XX.X%. ETR

guidance the to it's of XX% with XX%. I'd end our that at again, XX%. And So, to basically of stick guidance XX% lower of

Thanks. Great. Okay.

now John from comes Please question ahead. next Dunn is Our open. from Evercore go ISI. John, your line

Good guys. morning

of drag both You talk talked there. strategy-wise? about, maybe, some you then and just regionally and sales seeing gross EMEA you're where the can But overseas, about

Sure.

East are seeing as we're insurance their mentioned earlier I the world wealth EMEA Middle the interest in some institutional a also in we and their looking large pickup to and particularly in stewards Hopefully with very, business capital. on significant institutional actually we'll funds, sovereign Similarly, region. good overseas, And We're very citizens. that. the regions. be in those help. from for entrusting of example the intermediary look, institutional relatively in flows have their to also us serve policyholder's in So, clients Asia, sophisticated for proud well side finding them and looked us better very

And fantastic with ours. with from everybody's even world-class our with is core of the The up is, for us we space. share. with before Right salespeople. for increased when the at setting are space mentioned issue including that wind losing products, as not great performance, at news great in the we The win kind ourselves market, activity, now, our is good is again, service intermediary in backs we're

marketplace. gaining a argue little In fact, in we're I share would that of bit

area the setting intermediary just the for and want So are we again, that. for we're remind ourselves there clearly macro in future. the EMEA to headwinds But up

I that. John, can to if add

in you flows you on $X gross can pretty around at If slide billion. intermediary see the are look constant X,

both a a the taking think is continent market. bit tough least of market QX are and market basically as year. said, in Ali outflows. and to in in on flat billion UK seen But compared American tough little improvement So, of North a the significant at flows, share the $X intermediary last said. Ali what in couple first QX we've And as out we're the EMEA, possibly again, holding and It in we year-on-year very very quarters and billion which for is of $X

Right.

then, have step of experience couple business, Cool. could in that the Okay. JV lot of building definitely next kind Ali right what direction. a is of And the the you in think frame, Can building be? out a and of you you years

Absolutely.

involved we each past credit. over the private we very, as So in very several as on other live well mentioned saw landscape the are quarters M&A I've and

what think, are one Janus perspective institution inorganically and organically make to has some through partnership. an skill I sets of Henderson from do sure one’s what can perspective, or from combination

in perspective think, a world in to set skill be has the that -- story. investment the world, private part credit an John, of M&A we From do particularly private

potential a from been very final on occur will M&A very because or to in in business our of big seen through our cultural the we've or you've decision a this. small, of fit we've at. And involved M&A has or active to very or been not deal, valuation perspective we're it culmination So and looked suffice landscape. grow strong say, if The the need. it's either deal I active with any looking team client

growing And importantly businesses like team so deliver M&A to factor but partnerships sure our business our owned it’d or to most make in Privacore the we would expect clients. it's whether have right credit credit, to be we to for wholly private into continue a through private

you if The to look have easy remind our just see very everybody flexibility we is to at sheet. balance

board partners global sheet in the And the we acquire that inclusive in sign on that grow value capabilities So in targets we distribution balance channel to we grow inorganically of that ability is as the to and and our then, US bring well both, to way. of to our and basis. -- have the institutional grow we M&A globally Privacore, leverage course as any a bring that channel retail on real

we there buy focus the ago, do we'll we I So, fit things this only it the of and And and right quarters mentioned at couple client-led. do a grow we thing cultural is course, think would if most price. investment it think course, only I i.e. we the will probably of can only of important

Thanks very much.

of from CLSA. comes the from question next line Henning Our Anthony

and good just questions. morning. Thanks I had two

level the look And high sales you've you've in simply Firstly, there that redemptions around deliberate past trends least thinking we're couple about how about versus your if at that going of in about quarters redemptions. at trends thinking is done a there an et or that? net of improving anything outcome market gross like forward, Is flows, thinking cetera? are you in seen

it start Roger. pass to over So and maybe let me

perspective that sure. things of a couple on are So, from going there are think I for redemptions

can One long-term to performance better as delivered recognized better that that certainly we is is a performance across maybe consistently most have or them perspective more importantly. performance are across And that with board may being have bonds where a volatility term, performance the the that year talk over clients and over and down market we the for quite of clients longer better term more expect and from something yes I was entrusting seeing last to deliver think that with. that's amounts. you the seen stocks we going and example unique But significant long and it us and

redemption volatility much. short-term impact really the as doesn't and the performance, Anthony, So,

The change in are were waiting and But is change is bit what at little client the because but here are we're second clients. stagnation that clients worrisome to I terms our of I is clients and the we what this them. that that thing agree a making stability, is changes change clients a for deliver for don't seeing here The making we're certainly think and good for that it's organization Henderson not term for realizing for them. Janus to can deliver any is often

going seeing we're I very think here about very, So positively. are the changes that

are and as thing our continue with client clients a I our folks and more hand more it thinking talent to clients clients perspective improved are are world-class bring are is to clients’ be from in. have that last say The we Roger talents we over service in that the I'd about that face-to-face before field our people interacting

that on think to the thus clients' I needs curtailing long redemption. way goes delivering of our and a some

they're and have now service those brought the positive bear. that So points performance, the upgrade argue to waiting that we client that personnel we and change three I'd seeing the on

to you Anthony. bear know bring more maybe detail to don't I have to Roger if

bit Yeah more little points, said the same a detail. as you but

can strongly that If the 'XX in in you the performance our you small strength in now. numbers and growth see very ‘XX and US bounced challenged those remember pretty of mid-cap back and was

X is Flows I Interestingly again, term, there But balanced, benchmark single biggest perhaps. XXXX and flows cap of ahead this part really XX outflow. positive quartiles small as a time -- and quarter. about bit in $XX periods our a first of longer growth biggest balance. longer to take up for right in had top is which for said an it's tough X still That's earlier X but even capability is, capability now billion see again, little to pleasing

bit Again, little time of things a turn. take these to

So seen performance hopefully, Ali with performance also way will European same that as also the is and And follow But we've mid-cap growth. then in small- through strong. mid-cap it's getting around small- as in to in our equity coming shown recover And said, and of that certainly think, I and really flows activity clients. we've do front and strength growth. seen performance tend of that has

about I ask four How Can Australian the thinking exchange? are listed this? for maintaining like that. dual for the about you dual decline Thanks a to how your It is think listing? also it a you just ASX, your just you Great. this around How XX% which shares of you ago. question, have listing -- of follow-up about on X.X% maintain on costly looks currently, only around is years

low of But valued But valuable a the I it's But I ASX a Yes. our structure part ownership holding been for point. for long period yes, think a at it's currently listing said, very years. and many as time. been long of has a

you. Thank Okay.

your open. from line Marcus, next Our Barnard now Potter. comes question Bell from is Marcus go ahead. Please

in talked you follow-on, acquisitions we buyback? the that which I'm business? John's and is, of perhaps about the level sheet ask million. I going an to? increase figures the to to for I And where start we're do right our if your I XX you. question your and of about expect to may, you've the do of congratulations have cash will in Thanks. the a future. expecting at And on Thank set cash But small looking or on question response level Slide think think Yes. dividend what's upbeat, upbeat cash levels bolt-on as reached balance get suppose acquisitions $XXX to reinstate performance. some when

we're talked sheet an do the for are want some that. hasn't a disciplined talked invest philosophy, company's of yes, working inorganically hierarchy It's the as we those where opportunities Thanks, cash. for do. that And Yes. about. We've capital is, balance have of we of and cap earning as we active then there be any and regulatory the the that Obviously, cash business, to about. we and organically the Board something Ali thing strong we of business. changed terms all. things at positions that's needs management more of Ali's to needs Marcus. both on taken mean, -- we how I potentially to that well. we the activities well us They the the approach now, a But obviously, first excuse of don't in think in business make has now have could the and And

a in here we the way still returning dividend. would is, to business is it's about have and see support strong But to dividend the use healthy don't with both, the and the we a manage a we that as as I healthy it. but think moment, say do at invest organically we're will real continue hold balance prudently, inorganically always So, the But what say cash. we'll If quarterly we to we same sheet we dividend. it, have not better of will in opportunities

much Excellent. Thank very you

to I for closing team further back no management remarks. are there hand the And questions. will any

with joining everybody today. foundation. Henderson thank solid clearly Well, thanks Thanks for Janus gifted, and Sam, you, operator. a is

hopefully, The to joining for Our progress another factors. quarter those core little where is fully in you based team is and Thanks, and a is bit. our this some of we'll on plan seeing in clear nearly you're place. talk motion

call. today's concludes joining. This Thank you for

now your may disconnect lines. You