Janus Henderson (JHG) 1 Feb 242023 Q4 Earnings call transcript

Good morning. My name is Jordan, and I'll be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group Fourth Quarter and Full Year 2023 Results Briefing. [Operator Instructions]

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

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

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

results. some on those provide start today's I'll questions. Roger strategic And an I'll update In on the we'll we remarks, the After after comments XXXX. call, made in the that, will with your year. take progress prepared through then go

X. resilient the themselves. XXXX, the Even economies, the manifesting shocks about were challenging of monetary the inflation After banking that off peak by most concerns recession to one conflicted inflation, the markets Turning early as set rate remain in finally system headwinds expectation with growth historic the XXXX hikes coming overshadowed experienced of and with fears global global consequences in levels, remain the to end positive and U.S., year, market policy, particularly most rate for hikes. Slide in of in of returns to markets look aggressive backdrops XXXX market rebounded

and and on that, with rate. flows, or results year revenue, fourth external all ahead line fees net of that tax our better-than-anticipated underlying we expectations. EPS volatility, the are ended quarter this with performance delivered of And that Amidst operating team top expenses, margin in delivered strongly,

the colleagues delivering growth clients, reflect shareholders work path our Janus stakeholders. there squarely on of perseverance for collaboration, of firm This the of upon of at hard the the are to other their and the and Henderson. organic progress superior I was and colleagues, year, across is signs and outcomes clear several clients, progress achieving result As ambitions our

our amplify our not in and detail executing made right give on strength vision, on us of provide fully and businesses, diversify of strategic core our are strategic to X which win. grow progress our where protect I'll leveraged pillars: the We clients consists the for some the initiatives. presentation, Later

global $XX the of Janus of large discussed XXXX intermediary The initiatives outflows emphasized and XXXX $XXX outflows of here. strategic lower improvement and Henderson redemptions from wins net institutional net in markedly million a are billion. business, and that at turnaround we've driven by which improved both in American previously was North

we critical purpose And In reenergized values by introducing continue our early mindset XXXX, we and firm. our the to company-wide. embed across this mission, culture,

higher Cost pace reinvestment clients, of the strategic Janus at to Henderson's and by initiatives efficiencies a efficiencies on dollar amount. expected faster Growth, million end a than $XX by our for or of original run Fuel than XXXX the of more $XX to realized in at compared We which of XXXX. million achieved were cost million rate the allow end $XX behalf for

the business. All reinvested of or savings be cost been these will have in

to delisted reduce We more and exchange sole, allowing simplified a transformed our go-live platform, us system. operating order crucial ASX, model focus We from significantly management a the with on of we a the upgraded costs. and active

Henderson cash sheet, XXXX. dividend, and million Our enabled program, Board stable authorize results with in return a coupled along to buyback enable balance a $XXX quarterly with financial strong and to generation, share of cash buyback improving program. Janus the to flow This shareholders our

us give to the diversify does return our to where cash business this not impede to clients pursuit do right of through the so. shareholders Importantly, M&A

on in remains are performance majority business with Long-term starting The to investment of bear the X increased of XX-year $XXX.X how XXXX, XXXX AUM. fruit. reflecting mostly the translations. and Total a currency Ending results benchmark XX% X% average AUM markets illustrate on solid, in than strong X- and X-, improvements quarter billion assets our fourth Slide higher ahead of XXXX basis. AUM is the

As compared previous tremendous an XXXX, growth net to flows XXXX. less X% I negative the during discussed on negative X% showed than in organic slide, progress of rate in resulting

Financial results remain solid.

strong balance business and flexibility the and invest Our us financial provide inorganically to organically in to to return shareholders. sheet the performance and continue cash

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

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

Slide on results. quarterly look and Starting X at the

performance, has already Net investment quarter. and solid I'll discussed EPS. Ali the briefly flows AUM, billion our outflows in touch were on $X.X As

However, results up quarter. third compared ending AUM from X% was and adjusted QX, the financial to improved

the and share were management upside revenues, stable to per of and to from management fundamentals, fees performance strong fees in XX% EPS with line earnings tax or Even quarter increased expenses, either fourth rate. prior flows, rates, a rate, Adjusted fee without expectations. performance the ahead better-than-expected net income $X.XX quarter compared including lower operating Street core our the tax lower from the annual benefited rate, fee a and as EPS

we per as announced purchased last program shares of a slide, the quarterly $X.XX million part dividend. outstanding Board $XX buyback the of our this on And quarter. Finally, share declared

driven the respective number On of remains performance performance at Equity X- benchmark Slide Multi-asset XX% lower and with in detail. by XX-year least investment over versus capabilities. the their periods. X, our we'll beating solid, look X-, Long-term time AUM benchmarks X-year and more investment is at The

is gains performance the weighed X-year low-quality which growth driving for in the and returns narrow the relative rally stocks, market by and small leadership mid-cap impacted is U.S. marginally on the in Equities, In the benchmark Multi-asset the is of the fourth bucket, to benchmarks a which in the vast quarter. basis. the majority capability, assets X-year balanced this underperforming strategy, on In

over longer-time Morningstar of the X over and and the years benchmark as X today, the remains years. we and benchmark And basis. has the start first performance a quartile X-year here performance to and peers, it's The in XX against over its XXXX. strong periods, and Balanced quartile X ahead back second in is balanced on its being above sit of X-year had both strong composite a

products the interest across and vehicles steadily strong. XXXX. a benchmark differentiated Income Short-term movement bonds clients. for of ahead The Pleasingly, versus Fixed regions Income positions well our provide as performance us different rates longer-term on believe and breadth improved AUM basis. benefits XX% has benchmark Fixed anticipated very into Income X-year during performance to is Fixed periods now diversification remain of of and stabilize We

performance time competitively X with in strong XX% Morningstar XX%, continues and be X-, peers the XX% of Overall to over XX%, X- compared AUM XX-year periods. quartiles to X-, and investment the top

Slide by And the X quarter. outflows flows company shows net $X.X were for quarter, billion. total

for ETF, over gross And to we intermediary in flow quarter was in years. third to and was in U.S. X general, Janus Net showed offset X unique and region. faced in its best had headwinds. quarterly EMEA, in of intermediary sales X. by Henderson meaningful intermediary in positive EMEA of years, breakeven were XXXX flows This strong not as in supported Pleasingly, tale intermediary and short-duration The quarter. the the billion flows outflows including $X.X inflows EMEA regions result Outflows by security a flows mortgage-backed Lat quarter outflows XXXX. in ETF, compared U.S. result multi-sector as ETF. for is the quarterly the income client strategies, X channel were captured best by net during the market the CLO income our and on in Am full type Slide AAA we for outflows the year several share

As for will we've previously, U.S. the further later the intermediary by year. Ali the spoken encouraged provide we've in Protect details under We're strategic on and is a our Grow key in pillar. for the progress made quarter & presentation. U.S. results the intermediary about initiative

for half we billion the fundings Institutional million first previous net the the to line not comments, of year, quarter. mandate quarter large quarter. were compared $XXX anticipating third fundings outflows the in the in our during fourth were with In after large $X

team to is a doing the We are said, sustainable build though, pipeline. our it take pleased, as But with work we've will time. distribution

direct prior in Net the investors, outflows is year-end million in outflows seasonal net includes $XXX billion channel, to which compared to the increase self-directed and U.S. planning tax The in for due supermarket $X.X quarter. primarily the were

X billion ago. challenging and quarter $X.X Slide negative $X.X negative is regions. the in were all for across flows equities flows third year in remains by quarter active quarter capability. Equity billion fourth to in a The environment the compared the negative billion $X.X

believe we're longer-term Net inflows if investment $X.X in with positive billion positioned our net capture Several had an positive for $X.X quarter including performance Fixed to Fixed improvement investment rotation multi-sector Income XXXX. maintain the by industry strategies global which credits of billion, in flows contributed total encouraged short-term along to solid bringing into we income. positive the positive flows $X.X for and were a Income, performance to billion We're go contributing our XXXX. Income and fixed flows to well buy in Other income strategies credits, of flows multi-sector Fixed to occurs and the ETFs, U.S. fixed quarter. in income were flows, fixed

$XXX Alternatives million, and billion and $X.X were Multi-asset the capability respectively. for outflows net Total

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

performance lower higher was number increased XX, was dates, $XXX average $XX offset crystallization of care prior was and the we quarter performance generated of $XX fees Average $XXX from revenue offsetting billion, but Fourth primarily AUM Mutual funds fees Slide largest performance to billion, on of of revenue performance our in million to compared include QX franchise. results. December Fund Adjusted due Partially the partially XX% $XX financial which QX. fees. adjusted the million And into U.S. from million by capabilities with XX this a AUM explain the AUM. quarter is tailwind a negative health annual fees, giving period-end

XX.X with was points, consistent margin prior basis fee management Net quarter. the

points down than lower-fee the to Our fundings margin XX.X to primarily of in less fee by due points decline of A slight net compared a XXXX. the management full point in was basis XX.X large basis first institutional year. basis was year half

lower third the in expenses. LTI compared expenses offset fixed an expected X% were the to grants awards. range prior compared models. an was operating the existing fund of usual variable for on use employee fourth compensation. the by Adjusted prior includes the X% And and costs partially grants to appendix, for fixed we've costs, mutual million, table up Adjusted quarter XXXX in was revenues you due to future the quarter, amortization your to Continuing with higher largely mark-to-market quarter. up quarter in the along XX% higher compared the Adjusted compensation, incentive on increase as provided estimated on on of to was $XXX to which

in expenses XX.X%, we was ratio The growth primarily G&A strong revised fourth comp-to-revenue the our a our to compared noncomp due increased Adjusted compared of expenses full was provided. cost year ratio with expenses. operating adjusted mid-single commitment expectations, the higher to X% in and digits, line adjusted which quarter quarter XX.X%, On reflecting increased to comp basis, noncomp to prior previously our management. expectation X.X% percentage year-over-year

the basis points to in Adjusted increased income $XXX adjusted operating fourth our fourth improved And quarter over XX%. prior the million quarter XXX operating quarter. margin to XX% over

$X.XX, Adjusted year was a reflects diluted ago. the coupled tax primarily and income, from prior Fourth EPS up XX% quarter adjusted same with rate. quarter from higher a up operating the lower EPS diluted quarter XX%

efficiencies. fixed Fuel anticipate compensation to further from of to respect we've compensation on range in as delivered and XXXX. fully a almost And our targets, result, having XXXX we ratio a XX% expectations, the XX% in for down XX%, With identified operational expense noncompensation Growth

be our investments as to we'll initiatives we of be mindful our to operating mid- discretionary we're For cost Net-net, of and noncompensation, management. single our result expense offset growth well strategic high in of supporting base amortization. we cost external costs. and of can, as To percentage XXXX our digits with as anticipate expectations total where comfortable inflation continue a disciplined dollar

to net XX% on JHG be the we XX%. expect tax the rate attributable adjusted range to income Finally, of in to firm's

and XX profile. look Skipping over at our Slide liquidity a XX and Slide moving to

flow capital the at isn't of cash fourth as the dividend to X.X capital the remains shareholders Our used end repurchase We'll return fund were which December, an our with generation and billion $XX quarterly Cash flat cash capital This of there $X.X excess position cash to strong. was for or investment in last shares million equivalents organically is look excess more million return inorganically of to compelling consistent and year is allocation either our XXst to roughly to framework. in the business. immediately where quarter. as

dividend continue share February. of and XXth balance per the maintained of declared shareholders. of at In be and we February a has as we've liquidity summary, Board business The shareholders position, of opportunities to the capital to the to capital paid returning $X.XX needs a strong on the XXth investment to record with

return looks from in reflects. disciplined Slide Since our XX shareholders operations quarterly to our We've to XX% shareholders capital buybacks. share returned been this of at Finally, accretive capital shareholders. our or excess as annual in historical and flow we've returning dividends the XXXX, to billion cash over data form of $X.X consistently of

buyback buybacks. dividend reduced including third cash XXXX. increased returned commenced XX% $XX of million has we've in shares XX.X% first from Our since the in $XXX we our program quarter operations XX%, dividends in million accretive and shareholders, by to In and outstanding flow of our XXXX,

regulatory and and look to obligations. organic cash in business dividends changed. share and excess philosophy has utilize flow and reinvestments repurchases. inorganic our capital capital cash Our then set then capital then We for aside requirements for contractual reserve needs via cash returning liquidity consider We allocation the not and

Our outlook, sheet. our flow return capital stable and financial positive a and of strong generation balance cash our reflects

or not and the we dividends right opportunity us should build impair continue to actively clients to partner where give stable and buybacks to execute do ability M&A Our look diversify win. to arise, to our the buy,

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

Roger. Thanks,

give strengths the XX. right Slide protect fully diversify our and and win. strategic us of to core amplify businesses, pillars where leveraged clients reminder our Turning to of grow X our A not

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

slides, the few being next the made X progress Over I'll the highlight across pillars.

growth the intermediary Janus U.S. and which in XXXX, Moving In to with investments, for are Slide about of growing which XX, national to their campaign, intermediary this investment aligning Protect be largest importance the is our talked the foundation the business, which previously changes These several our we U.S. we've talent efforts made upgrading We've on allowing increased award-winning also the and to front strategy. of Grow, client set channel. protecting engagements. and and and intermediary describes & brand launching clients. leading an including trends. We improved In foot are channel, pace quality with selectively Henderson's business the client us compensation segment. our clients

first gross this X Net headwinds. X% in a in a years. for The growth years, is share resulting flows industry U.S. we're losing and a positive trend intermediary progress market tangible. rate, for organic many in market in were tremendous channel the given net flows, both capturing for reversing sales time of result Very importantly, share

a a create While to change work and strategic there's example on intermediary business execute drive of great to the area much do, in is plan U.S. our ability specific to results. improved our always and culture

and XXXX, the American into move EMEA we Latin to strategic segments. As we'll efforts intermediary our expand

we've through consultant-advised development client Amplify, greater in XXXX. aligned gross we're for different business, of In the specialization, their wins, coverage by number driven efforts. inflows time was is at XXXX alternatives more future Within to to over of our restructured and to outflows needs Amplify. seeing and and to product billion businesses institutional gross discussed critical This the to We've Slide and business under us net improvement serve XX billion institutional time. the a helping better increased pillar reduced expansion of types, sales redemptions. growth the and progress of be positive made which the previously flows compared first institutional are $XX meaningful diversified of details since strategic the net $X our

flows includes XX% in and growth multi-strategy over hedge index funds, alternatives, and enhanced generated AUM XXXX. Diversified positive funds which

a ETFs roughly Impressively, year. $X rate were since the equating to is AUM an largest Our growth $X now Henderson active ETF suite to during very active billion, Janus into Janus growth, positive every $X of fixed of invested fixed XXXX, income active $XX at the fourth billion, U.S. in ETFs the Henderson. successful and income out flows net went Net experienced of of provider finished With this XXXX. year XX% annual an

momentum have space XXXX. ETFs, We do aim active in we more to in and in this

In vehicles us. the Sustainable a telling and new Credit clients based established Global in XXXX, and and Life Funds ETF U.S. a Markets a SICAV Securitized our Properties We several and Equities SMA what Sciences as in Income OEICs, are launched Emerging we the products ETF and Global Fund Innovation on strategies additional

of to Turning pillar Slide third Diversify. our XX,

very going approach. buy, we're active is opportunities, actively look partner or diversify our The to us to pipeline several M&A to where continue right be to and to with We disciplined clients build win. give the in

clients In Privacore, investments, value mission bringing wire the differentiated retail creates of the set partner Privacore's serving I'm Privacore ends take broker-dealers to alternative with looked to first remain private teams be relationships its advantage drawn managers the accelerating product value on that alternatives underallocated that are the XX track of best-in-class notably and distributing extensive say institutional joint on XXXX, employees fundraising investment building distribution this and of business, excited is the opportunities venture, regional of at GP democratization with and we we have Privacore of U.S. the alternatives quality a today. towards paired hired that chain, its began a with Privacore and quarter. out channel. into to to both to houses, RIAs, will

has than Emerging Henderson in in Finally, which XXXX, was team, And billion. Markets flows XXXX. Janus positive into grown more AUM $X our September Debt had brought to

on and what the augment introduced be experience Slide as what performance, at important success our define believer MVP want Janus our a Henderson. strong today stable we stand XXXX the for collection who and through in facts essential to collaboration, a MVP and reenergizing mission, of DNA or our XX. clear company. and just and firm, out a we we and purpose, to the to My and this of We for we it. we that critically gives I'm a and It is upon as prove of of is for shown in the as MVP, us focus client-focused are that firm our individuals was accountability a culture but North values not Another as culture company-wide our Star, future. urgency built rolled

guides this a same efficiencies, to the in embedded by on coupled have with across quickly competitive landscape. the by us our and colleagues I've been and all encouraged purpose into colleagues and win of extremely cost clear direction move the firm. Our prioritization how mission, our allows strategy signs of work together in values to our MVP, foundation the and help decision-making progress

XX, an us. of believe take view Slide we it can to where illustrative which Moving and strategy is our

and The all desired Diversify. Janus squarely and Amplify We overnight, believe for plan diversified over strategic are revenue by undeniable our on so, advancement time. be Henderson to shareholders, intermediary our progress in U.S. strategy evidenced happen executing there's our real progress path pillars and will execution results will Privacore Success to institutional lead in of in as stakeholders. Grow, in and framework strategy, & other product growth expansion strategic and not delivering clients, all our had development in linear. and and alternatives Even Protect of our not employees culture will XXXX the organic X our

to I'm progress consistent of and show XXXX, Janus strategic on proud deliver up every for as to and one made real my wrapping Now their we thank path on want progress organic work of dedication and colleagues our I each at the XX. to Henderson continue hard Slide growth. in

destination yet, on in way. We but our are clearly are we not our

Janus over behalf We strategic our than and Growth last culture sooner several our for flows dollar over Fuel values initiatives on efficiencies We across their Henderson's and achieved aspects Net introducing the of business. clients model. evident clients. savings simplified company-wide. and reinforced cost year. $XX improved our million for of by markedly We amount reinvestment and this a is rate at of allows it purpose And in Progress embedding operating mission, higher run expected.

free good the We have shareholders a reinvest generation, enables which and to us cash return strong cash balance flow sheet and to business. in

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

over call operator the turn questions. to now I'll the for

comes first Instructions] question Dan Jefferies. [Operator Our from of Fannon

through could in upon of expand Fixed lot Ali, active Can year terms I talk in the Obviously, strategy. a active ETF success or map sold was you does that like what hoping where ETF Income about channels? those about the the products, are then products that you in think you within intermediary of this growth. those framework? look for road the as additional being And

thanks the Dan, for question.

relatively for period world. fixed billion means ETF on active in right over U.S., good come franchise in short in, management, $XX us to the time. That our now crossed in have around active place fourth the a under league just allows So income in the really, of very assets overall tables in and that success a ETFs

and And institutional-level the skill houses bringing channel, retail the in both your employed the And sets that fairly a obviously, to strategy RIAs, question. successful. in investment and the has is wire that been, to we've strategy that set democratizing there of

we opportunity there's year to democratization a continue so a new last And think as theme. want we lot path so broader that a of launched We securitized. called more down down path. to JSI, And continue that ETF

income are these Remember, always going client-led. be we're ETFs, to fixed and active

of before do amount we So launch what needs tremendous understand we to are these. research a clients' our

more potential. there's think we So

just I the then guess, And Understood. to inorganic opportunity. shifting

Your statements consistent. been have

terms thinking more obviously over last versus maybe offering your smaller-scale lift-outs You've little what's shifted to And in time the actually the during you transaction? line about your sizable? product holdup has to maybe about finish something the transactions all talk this more a priority getting with been of broaden at lot and to Can of bit the looked a at plus. properties biggest year

Yes.

or, very strategy our right support be and active that core in M&A to do our our So businesses in growing our strengths say on building strategy, terms and wouldn't us to whether partnering continued or thinking to protecting diversifying buying, I at amplifying clients be of changed give where the of all course, We've about this. so.

to going the be client-led always We're M&A. in

find we interesting trusted And right something when set out it's whether for large we're at. to a very we a now, pipeline, that remain often thing there's could us, and even going that active of So very a and, figure clients. fit be the And our small from looking both to importantly, disciplined we're our perspective. several cultural opportunities out in perspective approach there, from right valuation

use And best is words, your to that perspective sometimes, the teams value trying perspective. that's holdup and a to make will culture sure the we have a from fit

phone Look, timing is on as this difficult very everybody knows, call M&A to predict.

a could a right quite get we're the period looking that slew some right cultural of we of making for to just some activity for You decisions. a us the We're slew the partners want And again, lot of grow and who for want to time, fit. be right no activity are, time. of sure with

Siegenthaler Lynch. of America Craig of Merrill question Our from Bank comes next

on here Income. follow-up a had I Fixed

opportunity quarter. a there us fixed So Income the in your your But an potential given That's duration unusual view use you extend as I the for to typical to sales not business just was wanted this nice for your in update inflows XQs. on as for in Fixed for own income. clients improvement seasonality to

performance Look, and trying attractive. Fixed quite for clients. the depth We're is product and our Income attractive question, Craig. of Yes. breadth to to quite Thanks be

one. more do there more And our theme number subsegment to client bit Income And two, That's that et lower perhaps for companies, charges of a there capital is yield, fixed insurance reasons client Number our is here. our for It's are has inflection been Fixed today three, number those it's about point much clients. a little and to actually own according now a base, feeling obviously broadly, industry-wide base, for regulatory cetera. reason an providing to it. income the always we're important you diversification. reasons a If think of

for multi-sector Again, gladly, on we lot example, credit, positioned income We're want a kind income-themed products. of Income. for more sectors multi-asset great of our performing folks Fixed of who are well in

quality the many, ETF is we've into reach have we've a taken suite investment that underexposed can vehicle many types and democratized audiences We categories. institutionalized of something broader where, again, and strategies, level to of those that turned that that are an

in is We regional side are a lot well. we've we lot really have potential as strategies do the we of and And think world a course, emerging well, could exciting the markets Australia example emerging others. Fixed Income an on that. have more as as well. of There of to done market in

we the right breadth we think So product. have of

Our these are clearly for clients opportunities. looking

And products fit everybody delivering and and looking else so think Fixed look, I serving clients needs. to forward our us Income that are their

Just for my follow-up, channel. it's on the insurance

So I your channel know role. attractive. a quite prior the insurance this experience And of you have actually lot channel is in from

expanding this And really which also update what any successes So are relationships recent channel, I an get company. insurance appetite to haven't you the in wanted is on current to highlighted strategic form third-party yet? there with a

that the as well more Look, large field. the partners institutional and skills we Fixed very Thanks that to is and more our portion for insurance book and and a right here of strategic again. at Janus have question clients broaden ideally Henderson, that take in Income to

insurance are historically nature, and We strong strategic that we want here to had have down continue with companies partnership in that global path.

the that I that's the for to right companies the for landscape our and culturally policyholders fits a is Henderson us to very insurance that Janus for do and and The our You're insurance happen had us. right for have firm. developing policyholders an in their the bit themselves, for insurance think and companies Remember, importantly. area we about tie-in little lot because those with at very product We deliver clients' of clients. with want clients cultural relationships a better experience developing performance

see there. do So we opportunity

with. a We grow do have place start that a And inorganically. in organically have both we and that base we great potential to think to it's

Ken Worthington JPMorgan. from comes of question next Our

platform called you're You the in the these driven CLO having the out It ETFs. and being in the improvements success and achievement in flows intermediary XQ. of MBS by like breakeven largely the are looks improvements

in increase $X.X intermediary billion I in equals think in the sales ETFs. sales improvement the quarter those X this

U.S. broad-based in the So is first, since the success seems it in is like concentrated how you're having X ETFs? progress the intermediary

to or seem did to outflows Second, XQ, in be fund retail fees business the X where rising are at equity least they in than higher the ETFs. Xx

here? is mix what outlook for rate on fee So the the changes based

And then So margins it to business? business what the of happens basically, as you business succeed scales ETF the can here, fund if compared to ETF the lastly, to Janus continues the margins? compare

those for Thanks questions, Great. Ken.

success. U.S. is broad-based from intermediary First, very a perspective, it

the like but fixed deliver active across We a way, are and growth, go, as to product have both market to we that relevance the we bring an them with income gaining of of to bear. board our long absolutely client base ETF other just breadth bring something products by growing to share still also products and the increases and increases suite and way being that able the part

The changes as upgrading that aligned changing would we've as perspective. and talent, growth you intermediary a in talent. investments perspective revenue quite with Ken, They they're think selectively include include apparent. that exactly are so profitability both technology about data. made a as changing They it, They in U.S. incentive include plans from the well

have areas, of to And broad-based. they're And in stars pretty the and are very there are one, happy broad. those but sometimes so some course, improvements we're

course you even they think of call inflows, of top a Income our in that, and the period half over had highest in exactly Equities inflows, we've if broad the Fixed time. Taking step it, where than XX more of about half the are

feel they're pretty we broad-based. So like

trend aware flows element the hand all off perspective. in with then has that worse, Equities, or the are aware, for to intermediary and a better element. in and you maybe the for Roger it that to from channel piece start negative margins Equities Even the and in U.S. the performance been flow for fees we are I'll

would ETF intent a be we income then That side. in marketplace So gain of not we're active we Equity the that certainly gunning time. tell, for. bit we overall, which having little share, is just that of now, we're right if obviously, is But to as share share, over share ton a share, but suite is gaining we our what a on what That can even as change the ton doing, to you have. are And trajectory. we're fixed include gaining of that best

want do margins? about talk and the revenues Roger, you to the

income you rates the as fixed has Ali ETFs, on say, as they're active products. pointed Yes, the fee out, Sure.

lower have real them. mutual they yes, have they certainly than funds, They fees are are they products that them. are on So but equity to -- scale

a they add from much to of as So margin very point line. we the these, grow bottom then view,

us. just selling. products And that a something of again, reminder, our mix it's think overall is as does we're has rate a fee I that Ali differentiate And said, as

year-on-year than a of rate fee basis than than of less of -- fee years we've a a very we the over a overall And sorry, that's down a percentage because less a point that stable that's less mix seen basis few was -- And that Our products trend rate. point. sell.

turning Am term, really around, obviously, longer businesses. come Asian mix will over business, you business, have we And been hopefully, around EMEA by has And that that to of future, marketplace in driven markets more equity the generally. rate the biggest the and the growth also which most up go But go our probably. And short following sell, the is EMEA had and say, as again, we've what it's depends Lat of drive that If markets. will the broader, there's probably opportunity from in the and tough it we U.S. that's turning fee up, the products on in a it's success the higher-fee institutional. term,

a that there got ETFs. profitability assets those products -- strong we've to to mix income yes, assets add strong of to with with a mix fixed product add we we continue there's a and it, very we're But as have So to out fees. it's a of

from Our Autonomous Davitt of next Research. comes Patrick question

wins rebuilding or you've quarters is more rebuilding specifically, So update in the big see for talking maybe coming when idea losses process pipeline that half progressing? progress now. and, about been any us how more that through tangible on of we or could is a few there year? first And the you any Could known visible the pipeline

Patrick, thanks.

right. You're

last had in or billion in numbers that around that of we $X the year, in the are flows. pipeline. in net institutional the positive rebuilding we terms We Remember flows had institutional pipeline

happened that All quarter. first the in of

has about was before, all demand to pent-up about talked what in Janus figure kind was real pent-up transformation Henderson released. we've of been period, demand as So there out a and that

that on you XXXX back half everyone the of phone in as channel. really time again. we're knows, then, since and that, the up as of bit ongoing, And So pipeline a building know, takes the quite in institutional

is we're tangible. making progress The actually quite

XX discussions positive. would taking think or to time. frame mean it good. indicators, that's actually XX it, time you in the about take consulting or of leading more, these a early the or looks things from an meetings, an right, to quite terms RFP if we're delivery. should mid-stage of call looks about. to having, we that I things And actual think going pipeline, I concept talked with We've as example, But clients So months

in discussion From areas enhanced Multi-asset in interest an an mentioned some as index areas, we in for we solutions. regional that finding of specializations some real areas losses early have. we're wins and perspective, or thematics In Fixed earlier plus income, as kind of us, Income of well

So well that the as next as while. expect builds to continue it for pipeline the over we little

money and And appear And focused then U.K. significant highlighted ETFs a on continent question, we second the both EMEA in acceleration be very in question. see BlackRock the their and management. value passive asset for that and can ETFs regulators, higher-level in on numbers. and my call, the certainly in for to

are net truly U.S.? path as mind, if inflow? are to the in path region how on consistent positioning the you that all with thinking the complicate concerned your is EMEA same about business could that that So And you

of what both for we're in very things. of I question. would competitors aware Thanks X we're maybe touch with and Look, the the much some regulators say, our the say and obviously what happens marketplace. in Yes.

time we some clearly do we other as that skill parts that sets. the the of grow using is is think to world one well similar first we and The the built opportunity an there in in have franchises those ETF strengthened U.S., of over that

Now to what where I getting early. of would certainly say And is real the flows. is nascence the of there ETFs in a the the resurgence EMEA and party still other U.S., we're in markets is

a allocation going activity main we're the time is it's for focus place question, and being. to U.S. where So certainly, the that a for resource

executing think real thing in lot second seeing particularly on successful the learned American areas U.K., have say as have a Lat and a the not side for to that far, shift We that it The you results in I'd for intermediary been tell. while. so experiences is plan, some little market, strategic that trends the we other market North those taking were us and as given that lift can Am, EMEA, perhaps, past that a there's opportunity broad-based into

marketplace, here So for can that the certainly, the with in that the to tools some conscious are happened success U.S. we what's how of to and is focused teams very, in apply, something that lift adjustments, of those and very market. very on and EMEA we're shift

for The are third success say that thing I'd applied that seeing there. marketplace, is we some

an to areas, you long as from So have and was some market, market brand marketplace perspective, that steep for about of a Roger in perspective. U.S. the for example, do think The we our well share market have take there continue quite ago, over a been time take offshore the for a of if on. build America, headwinds from of industry the periods example, Latin -- moment saying example, to

the turn we in that, hopefully, the the really market flexible And going point, to headwinds more position right right require. strategies vehicles in in that little to that bit and for should case, tailwinds, in on focused investment EMEA, a the particular, resources to we're would when, very those. bringing a be good So in grow first

flexible trade and effectively apply wins resources as in is So last point be different move agile see you to and ways.

of comes Stanley. Our from next question Michael Morgan Cyprys

ETFs. question on a Just

the about spoke You Fixed Income side.

the How about mutual active the make What maybe growth might respect more And ETFs. of more about about that? to how you're on sort broadly Just what with equity that? active fund conversions? equity holds ETF driving And thinking you more you're opportunity curious on launching there? back? thoughts Maybe how thinking you're and products ETF sense thinking on side,

Sure. Michael. Thanks lot, a

So putting institutional-level the investment is place in little ago, off, democratization in from perhaps to franchise it's I but one ETF with and a while of that the ETF skill this mentioned much itself, we're franchise underline strategy first the very important sets. of around

So rendition world those that in sets our lot. that, That that the broadly been has and is skill a base. learned have, Fixed to the first client more We've of taking bringing securitized Income we successful.

strategy our as We business to the in that we in -- are, client bring as think is, point to number in our of institutional things long as from lot are news institutional-level that opportunities there well our an as good menu, we two, nature that democratizing Michael, investment bring know, of base. strategies areas they're lot along has a a perspective. our you to that can The investment have other palette

vehicle-agnostic be to we the We sets Well, we bear. well, want other forms, before, there's mentioned leads be and we this have bring we broaden ETFs so able In third in is, words, to skill vehicles but want to of to how democratize that again, different vehicle-agnostic. times, publicly a client to said do we that? And and broader this different sets. can several said to the we do be point, which palette deliver sure, to you for

channels EMEA not for had, that and Other could question the we've launch in vehicle client. the cetera, that. be agnostic of So earlier, CIT, retirement example, of to example want but broaden to that an SMAs more we've that, scope, from example we ETFs be way, in deliver that had on et along be how to Patrick's just could a or perspective

to follow-up your 'XX, them, you're looking for you as the you the better savings and deliver on a side. finding 'XX. where than you're hoping I And Great. was look elaborate could And how expense initial maybe just you question expectations. in bit on on where able cost savings, just to a elaborate you're efficiencies could

Yes.

may up Ali then want and on that, on pick it. start me to Let

obviously the we yes, that to think that make it -- I refine things where then And I a the didn't worked There made. But was how do digits it. mean low things it and we investments and there were year have lot to are double that. are There year to guided on done we cheaper. sense during paused noncomp do to out we that started

a is much really under space one place where we the taken important. the place that. of We've intermediary example Growth could done banner. As A we've it in but see of really Janus weren't we considering years. in brands that from many Janus returns. what brand lot U.S. know taken haven't out, thought people for a in a Fuel money. is reinvested We very lot pointed and good first better and we -- building Henderson, of investing was for time We've that with the people Henderson, our invested of And

originally bit bit done as number So we've we the We a -- a of there than Fuel Ali for more said, quicker little we'd Growth, achieved did and indicated, places that. think are a little which to is, is I this that. is you do is that that's important pleasing. mean, a And I to -- the that business need thing constantly we'll continue manage.

money and refining constantly that. looking to be need You should you where spending be at

and money actions we the So take we strength and see will can where targeted continue results. to some that the reinvest

And some hard of flows. are things results. those It's

to hard, the we of, to successful hard that brand measure determine, a measure but we take results that really them being some is really and we measure that so campaign of are are further. can difficult we And things

So that's in far. something done so we've the U.S.

an rest the all something that's should more. that then noncomp We're the and that of success ongoing is of on guidance given. think we starting automation. see I've And the the But into it's world, Again, around bit to leverage continue is little we around the there, bit side a that management to do the both yes, and side. built of expenses, I other comp

things, we to noncomp. seek from comp little automate a bit and move we efficiencies do As you

the our said, inflationary of including you'd flat I mid- expenses to our sort guiding digits. are to year-on-year, as comp again, fixed noncomp we're element, single pretty So expect high and

from comes question UBS. next Beatty Our Adam of

seasonally first channel, the about in here especially U.S. strong, the can I wanted first retirement to be which half. ask quarter and in

Ali's construct discussions with in how leading season. contribution the positioned activity, of momentum seeing maybe Just you're indicators, sponsors terms signs you feel or you're of planned what for using maybe other of just and wondering retirement

area which much to It's on, newly Adam. certainly channel of focus America of and lot, U.S., a the intermediary that in U.S. particular, on and focused Client Group, the formed the is developed within lifting some shifting, an again, in that's and our regions, Thanks channel. we've that but very part of North for experiences us,

that have relationships to support the do the space. lots We providers are bring interest to of see bear in to but of develop them also leading to new products we products strong with some We have from the there. that

be lift with point, of there, this potential, drivers CIT big in present at we for we and of it again, where see is where this we've clear are market, channel shift us at areas. right seeing the One the until although green haven't is the fair, recently been shoots least relatively in successful to we been in a some that and small business

do some continue we world so to And CIT see where we on the potential. pushing want do

I I us short-term think anyway. But you, clearly, you've on interesting I have, grow. to to hit probably numbers Adam, opportunity continue type don't for an kind of wouldn't to and beginning-of-year give

a Fair enough. Appreciate that. And just follow-up.

the times a products couple of product mentioned some palette with launches. success have obviously recent You you in and that broad

focus that there. XXXX or seed less areas of deployed year terms you or whether of the terms about for what have what thinking you're more, same in how wondering maybe it's capital products might number So launches, or this in product of and be

Sure.

some core launched again, good have We have successes strategies areas. them example, in products, year. had in several -- investment that product the thanks past we taking, over We've and for applying for other launches noticing

Global OEIC. as Credit Markets and Emerging Sciences, an did you Securitized into a Debt SICAV. we We do ETFs, Property as Life turned Obviously, have, know. a For we Sustainable example, as Income Global we that

have SMAs. We of mentioned plenty CITs. just I

to So in as we are continue to well. on XXXX that grow pace

about as We and should, of portfolio new but of pipeline. in of about think it, launches. think in think a it much we products actually terms products new the on don't launches a needs. we portfolio have client We about We targets and very number in terms maybe of actually number don't it of of don't that deliver

that for areas, could great for, we I is as And or be in us want needs for suite to broadly, with products again, like frankly, how we product organic because have to some in ETFs, do client-led, everything do We inorganic that client So that scale, we areas we about but we have. firm filter believe like opportunities areas but, that there's particular, launch. in this in markets this and more our think That's at well. more a emerging fits already new launches it. there's guess, see

point that last I'd I to add mentioned. you Adam, capital that, around is guess seed the

of a capital. have seed We good amount

is we current things Our will -- probably some harvest. we'll add there that expectation

it at of -- very or capital to something yet which that it been is investing manage have we've bring got to proven is there then not something call Ali's seeding we'll ramp that other back, be we As new, interested can successful, and successful that where we've seed But that's it. product point scale. and a are but bring are got what something carefully. number is we things we a And in can and clients either we into that in very

go and interest probably marketplace. little available seed capital putting satisfying that we've client of you expect in what of a the year, bit up things. making pipeline net So those Again, this got and given to good our that

of Brian question Bank. Bedell Our next Deutsche comes from

Do really you X Ali, where where thought you success you're every more comment mentioned, the that more still nonlinear, feel on have maybe just get journey? a in it's you in Slide could you we're Great. on if trying of back place back you prior I a quarter? hard flows. now to -- year on, the X I how obviously, to that in XXXX, a other know but call, sustainable but sustainable XX, the positive to think some are organic intermediary just in path you improve on might predict, could quarters getting to, say, growth. continued a to growth, Maybe the going think that to it's to think that sense you channel, organic of

mentioned And of ahead transformation the in the of bit at own where We're progress point in at making get of I right think probably flows, squarely on our little point. this second. that can tons of say we you many we're tons areas. And Janus back making expectations to progress. we're so a is overall, a Henderson We're a path. Brian, we'll

-- But still it's we're not the down our path, analogy. in that destination still continue to

lots have potential We of left.

to of other our for that's lots potential stakeholders. our room clients, our employees, have our look, potential go. And for We that's shareholders,

a we -- long have to we do have So way go.

We in are XXXX. $XX of in quite having billion proud in gone negative to from billion outflows $X.X in outflows XXXX

business that raising want EMEA, around before lift question that. well. to and Am as whether before, talked the more to was shift that do that whether intermediary a be to of into and results a good great was execute plan, place You're out create that great our and a example that. right It that strategic ability we was some get put of the about areas firm, U.S. be Lat We that example of a it institutional

good in to the guidance indicators, it's in I that Am, -- basis the on on still pipeline, give of Look, the on fill an fix Patrick's side. would we're EMEA have U.S. and can earlier, to don't the and improve on pipeline we a still We quarterly to getting we leading that to going have sure question linear. maintain sure. we're argue but But institutional have terms annual making We not make to basis, or Lat be the progress for still we

in say all is yet firing would there destination. not cylinders we're I So what on our being in or

the color. fourth in a then quarter very performance Yes. the quarter. Obviously, And That's Roger, just great fees. on maybe one for strong

health you care just high looked like the any the side, on a the the of also more think quarter comp it can but And you product, that's in slow differs about on as your I'm any sort view performance into potential Janus it remind and lumpiness view space. other on then fourth that, believe the consistently. XXXX, on Maybe ratio in particularly on wasn't steady just Just but by if -- fund XXXX? fees, I still I But moving sure just steady think it trending improvement. us

sure. of and second first some have fees our Yes, behalf delivered with guess, that Yes, strong in particularly and half particularly. the we're of performance in fourth really quarter, obviously clients Thanks, year quarter, and all, that the teams Brian. I fourth well, has of in on the resulted so the delivered performance pleased

know that. performance, which to that certainly say, the off. are do can't least predict. an what's can you are depends fund rolling, at It we is performance indication thing on As difficult fees U.S. X-year only incredibly future and fulcrum obviously The fees, rolling I mutual of and give we

an like add performance that if a for So -- you of sort 'XX. performance good pleasing around XXXX year, mid-XXs year some some in numbers of in in flat Really see in the historical negative were we since things made I for think, then indication $XX really that, that's is fulcrum this ago. this million, fees the to fund research since or got year, added for were improvements changes

be would right the to negative for in still there, you the that direction expect year. moving So but

do, the guess they great -- clients. they majority like As your happen? I it's performance We've honestly, that performance fees is as a reminder, fees. vast If some as annual. things, other does mine. From we'll our performance teams. of -- deliver hope deliver for a For say, are I got good when

performance vast has lump subject billion $XX assets fees. rest quarterly as The about of The annual. of is the $X About and really to our well, European is have billion of a is that, majority QX SICAVs. that performance which We fees. QX,

don't I but I like in predict. can't much So QX said, expect QX, or

differs don't product. ratio discretionary -- yes, And it. you there. provide comp there's in it we comp compensation. of deferrals say, view, elements in the remember point as by specifics on obviously, that has And also On but But

we've 'XX the table all that in guidance. tail come through. years those of the into on again, has comp recognized the into So deferrals back you some that at built deck. of But fees built given some It's performance into LTI that's as we've the future

guidance for lower that, you can that see that's again, built So into XXXX. and comp

comes question next ISI. Our from John of Evercore Dunn

how but of hierarchy. the Could then available seeding, force much cash? capital maybe just of quick And is you a just mentioned frame the rest rank cash management you

reg it John, working I there our of piece But as $X that, was capital about that of mean capital piece a so yes, looks is within we a need. cash and billion.

you that million it it's few there's hundred probably can So dollars call -- surplus really -- a of cash have. we

anything, this said, harvest we'll In we'll up said, that more And some that Slide chart terms make of on a year, XXXX. as into baked also little invest seed, some bit as that I if XX. that's in

hierarchy the Janus at hopefully, then -- view if Henderson. from very like, needs, you capital well And very understood is of of a point

then benefits, need. We reduced isn't we an need we've about, in really XX.X%. consider share last cash returning in over seen for immediate there or then any excess M&A. if count talked this the have business, cash hold those you've And is for since to of by We the shareholders. there's either that which for reg XXXX, -- or which other capital we seed that aside business things. capital, we And really capital is And investment the

follow pretty understood. that very is hopefully that again, We So well religiously.

Privacore over, about Yes, maybe be sometimes just go over more just the looking some next I it and then milestones you're right. skip for just think little you we of can years? in the the And we relationship, a should X but

Sure. Look, have relationship very we're Privacore. excited we about with this

Just a chain really as as we the lot, big need it a fills privates. you reminder, it about because talked in value for haven't say, a

levels are difficult of who have cetera. the GPs reach larger of want et to some but get top these that selectively with GPs channel. to the It's in of performance a can't and understanding X the right world. channel the service really products, small GPs. for of service and You private to And These as or They're wealth GPs X good them well. are the not access that have channel not set externally

their And clients serviced. have then differentiated you channel, won't than serviced the kind that because the know to they houses, wire advisers won't their to are others, have products higher-performing that to wealth RIAs, and behemoth out get want can't access them but be who there, of be access

we've that gap of the that broaden relationship. those value surprised the pieces been, clients had chain. about And from And guess, sides needs interest X of but that well both and the so as at GPs the that level really the of word, as nexus sits both to is between of wrong closes Privacore we've I nexus, pleased maybe that

So optimistic we're pretty that. about

We've way. depending opportunity you just market current talked part it, are about of expectations the remember that The Xx to channel. X the a trillions of is allocation who of along bit. would But Janus of a leverage brand little give of you work how to relationships dollars over and suggests a that's we I with that and intermediary X-ish it, wealth to, be the largely talking our should Henderson sense there's to love years, a call expect what trillions underallocated Privacore. you're we that our at is part on opportunity here XX-ish this that and next, that And to to

calls. product quarter to point. forward in product, seems first well. successes the talk there details what to the publicly We hope, not you We're channel. launch our is Privacore have is we to to more We it going That look at about and next product that which this quite be with milestone, the that a earnings about giving over of this

from Cowen. question TD Katz of Bill Our final comes

under So back, great Ali, helm certainly your circle just and stewardship. to progress sort of

flow becoming the rate? positive, as of of as the net And well to are we a think of reason where to when terms more what's here? the to from listening positive sustained growth passive understand the more of to trajectory you really to about primary of Q&A., line commentary the in think And are it get and -- I'm of the like all time you As your just sort the sort organic like you do reaction growth. seems trying your areas can just fixed income asking,

squarely right step a the a again, it's definitely, we're Look, We think at time. on path.

board. across You're the seeing real improvements

overall, area the focused to tough on for for that to that's imagine, side but Bill, on You're certainly the me timing so been focus absolutely things you an yet things are it. they've for higher far rate us. right, or that of out fee point you not It's side areas of as of give can the Equity

some of et to as is broaden there, year to get today, success Look, more XXXX a same results on. of roughly right we'll we're cetera. Improvement of plan the probably expectations' external of goes geographies, in piece across of palette perspective perspective a the exactly is type and our channels, see in but clearly sense ahead from in but XXXX. of it as not we there. is we're progress wouldn't Tons I of trying from again, things, clearly realm flow anticipate, the blind What the products, broader

Okay.

another follow-up, picture Just you. a big for

M&A as in obviously, you great blurring previous role, from Just is given what you the model here, of the model the right managers. through think managers just alternative traditional your your mind, and and between experience sort have in

more contemporary insurance in is Blackstone Or of couple some platform model sort intriguing make You that most mind? a times. a peers the an mentioned you? Is it your Is or of you? a to terms much Apollo of of larger model KKR of to your are -- in intriguing that traditional sense

and is Given our had, us of shareholders have intriguing to the for successes certainly Blackstone on delivering that client behalf results. that's and something it Apollo

grow shareholders behalf we open-minded are this We doors. on clients. don't and close to business, We again, how can of

a list vehicles, some which you've different talked some things, of which some we've in again, of which, have which mentioned, recent We example. successes seen priority of of you about, our for

disciplined client-led opportunistic So growth we continue valuation, not arise priority most for culture, things different partner that we're in-house we the very, to very, way very nature or we importantly, with very on in that going want may our to opportunities on do might potential have tackle. a in to entities. we're to list, but blind are and, bring that Again, more be

hand to closing back remarks. I'll the for team that, With any

ahead progress of Janus Look, the squarely expectations. We're destination don't right making we're this path. of is still this tons our at yet. we're like feeling of transformation point think at thanks, Henderson, I our on Jordan.

So of of potential clients. employees for And other and proof manifest and starts some hopefully, those there's and our quarter stakeholders lots points. shareholders to this

for day. you the Henderson thank of rest all nice your have and in Janus So today, interest a

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

your You lines. now may disconnect