- Solid investment performance, with 69%, 63%, 66%, and 84% of
assets under management (“AUM”) outperforming relevant benchmarks
on a one-, three-, five-, and 10-year basis, respectively, as of
June 30, 2024
- Second quarter 2024 net inflows of US$1.7 billion reflect net
inflows in Intermediary and Institutional
- Second quarter 2024 diluted EPS of US$0.81 and adjusted diluted
EPS of US$0.85, an increase of 50% and 37% year over year,
respectively
- AUM increased 3% quarter over quarter and 12% year over year to
US$361.4 billion as of June 30, 2024
- Returned US$97 million in capital to shareholders through
dividends and share buybacks in second quarter 2024; Board of
Directors ("Board") declared a quarterly dividend of US$0.39 per
share
- Closed the previously announced acquisition of Tabula
Investment Management on July 1, 2024
Janus Henderson Group plc (NYSE: JHG; “JHG," "Janus Henderson,”
or the “Company”) published its second quarter 2024 results for the
period ended June 30, 2024. Second quarter 2024 operating income
was US$164.3 million compared to US$119.2 million in the first
quarter 2024 and US$117.9 million in the second quarter 2023.
Adjusted operating income, adjusted for one-time, acquisition and
transaction related costs, was US$164.7 million in the second
quarter 2024 compared to US$128.2 million in the first quarter 2024
and US$121.5 million in the second quarter 2023.
Second quarter 2024 diluted earnings per share of US$0.81
compared to US$0.81 in the first quarter 2024 and US$0.54 in the
second quarter 2023. Adjusted diluted earnings per share of US$0.85
in the second quarter 2024 compared to US$0.71 in the first quarter
2024 and compared to US$0.62 in the second quarter 2023.
Ali Dibadj, Chief Executive Officer, stated:
"We are proud of the continued progress made this quarter,
building on the progress of previous quarters. We are encouraged by
consistently solid investment performance and positive net flows
and believe it is another indication that our strategic plan is
starting to bear fruit. The 37% year-over-year increase in adjusted
diluted EPS and 570 basis point improvement in adjusted operating
margin reflect robust operating leverage, and our healthy balance
sheet and strong cash flow generation provides us the flexibility
to continue to invest in the business—both organically and
inorganically—as well as return cash to shareholders.
"We believe we are squarely on the path to delivering consistent
results over the long term, and our results highlight areas of
momentum in our business. While we are energized by the clear
progress, we recognize there is more work to be done, and we remain
focused on positioning Janus Henderson to deliver superior outcomes
for our clients, employees, shareholders, and other
stakeholders."
SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ millions,
except per share data or as
noted)
The Company presents its financial results in US$ and in
accordance with accounting principles generally accepted in the
United States of America (“GAAP”). However, JHG management
evaluates the profitability of the Company and its ongoing
operations using additional non-GAAP financial measures. Management
uses these performance measures to evaluate the business, and
adjusted values are consistent with internal management reporting.
See “Reconciliation of non-GAAP financial information” below for
additional information.
Three months ended
30 Jun
31 Mar
30 Jun
2024
2024
2023
GAAP
basis:
Revenue
588.4
551.7
516.5
Operating expenses
424.1
432.5
398.6
Operating income
164.3
119.2
117.9
Operating margin
27.9
%
21.6
%
22.8
%
Net income attributable to JHG
129.7
130.1
89.8
Diluted earnings per share
0.81
0.81
0.54
Adjusted
basis:
Revenue
458.3
426.8
401.9
Operating expenses
293.6
298.6
280.4
Operating income
164.7
128.2
121.5
Operating margin
35.9
%
30.0
%
30.2
%
Net income attributable to JHG
135.2
114.4
102.0
Diluted earnings per share
0.85
0.71
0.62
SHARE REPURCHASE AND DIVIDEND
On July 31, 2024, the Board declared a second quarter dividend
in respect of the three months ended June 30, 2024, of US$0.39 per
share. Shareholders on the register on the record date of August
12, 2024, will be paid the dividend on August 28, 2024.
As part of the now completed US$150 million on-market share
repurchase program approved by the Board in October 2023 and active
US$150 million on-market share repurchase program approved by the
Board in May 2024, JHG purchased approximately one million of its
ordinary shares on the New York Stock Exchange (NYSE) in the second
quarter, for a total outlay of approximately US$34 million.
AUM AND FLOWS (in US$ billions)
FX reflects movement in AUM resulting from changes in foreign
currency rates as non-US$ denominated AUM is translated into US$.
Redemptions include impact of client transfers.
Total comparative AUM and flows
Three months ended
30 Jun
31 Mar
30 Jun
2024
2024
2023
Opening AUM
352.6
334.9
310.5
Sales
18.1
15.9
15.2
Redemptions
(16.4
)
(18.9
)
(15.7
)
Net sales / (redemptions)
1.7
(3.0
)
(0.5
)
Market / FX
7.1
20.7
12.1
Closing AUM
361.4
352.6
322.1
Quarterly AUM and flows by capability
Fixed
Equities
Income
Multi-Asset
Alternatives
Total
AUM 30 Jun 2023
199.5
65.9
47.7
9.0
322.1
Sales
5.7
4.8
1.0
0.3
11.8
Redemptions
(8.0
)
(3.9
)
(1.7
)
(0.8
)
(14.4
)
Net sales / (redemptions)
(2.3
)
0.9
(0.7
)
(0.5
)
(2.6
)
Market / FX
(8.0
)
(1.7
)
(1.7
)
0.2
(11.2
)
Reclassifications
(1.3
)
—
0.6
0.7
—
AUM 30 Sep 2023
187.9
65.1
45.9
9.4
308.3
Sales
6.0
6.9
1.0
0.5
14.4
Redemptions
(9.2
)
(5.2
)
(2.4
)
(0.7
)
(17.5
)
Net sales / (redemptions)
(3.2
)
1.7
(1.4
)
(0.2
)
(3.1
)
Market / FX
20.4
4.7
4.4
0.2
29.7
AUM 31 Dec 2023
205.1
71.5
48.9
9.4
334.9
Sales
8.1
5.8
1.3
0.7
15.9
Redemptions
(9.2
)
(5.7
)
(2.1
)
(1.9
)
(18.9
)
Net sales / (redemptions)
(1.1
)
0.1
(0.8
)
(1.2
)
(3.0
)
Market / FX
18.3
(1.0
)
3.0
0.4
20.7
AUM 31 Mar 2024
222.3
70.6
51.1
8.6
352.6
Sales
7.0
8.3
1.6
1.2
18.1
Redemptions
(8.4
)
(5.0
)
(2.4
)
(0.6
)
(16.4
)
Net sales / (redemptions)
(1.4
)
3.3
(0.8
)
0.6
1.7
Market / FX
5.3
0.5
1.3
—
7.1
Reclassification
—
0.1
(0.1
)
—
—
AUM 30 Jun 2024
226.2
74.5
51.5
9.2
361.4
Average AUM by capability
Three months ended
30 Jun
31 Mar
30 Jun
2024
2024
2023
Equities
220.8
212.7
193.4
Fixed Income
71.7
70.6
65.8
Multi-Asset
50.7
50.0
47.1
Alternatives
8.9
8.6
9.5
Total
352.1
341.9
315.8
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark (as of June 30,
2024)
Capability
1-year
3-year
5-year
10-year
Equities
58
%
53
%
54
%
79
%
Fixed Income
88
%
72
%
83
%
92
%
Multi-Asset
96
%
96
%
97
%
97
%
Alternatives
82
%
80
%
100
%
100
%
Total
69
%
63
%
66
%
84
%
Outperformance is measured based on composite performance gross
of fees versus primary benchmark, except where a strategy has no
benchmark index or corresponding composite in which case the most
relevant metric is used: (1) composite gross of fees versus zero
for absolute return strategies, (2) fund net of fees versus primary
index, or (3) fund net of fees versus Morningstar peer group
average or median. Non-discretionary and separately managed account
assets are included with a corresponding composite where
applicable.
Cash management vehicles, ETF-enhanced beta strategies, Managed
CDOs, Private Equity funds, and custom non-discretionary accounts
with no corresponding composite are excluded from the analysis.
Excluded assets represent 3% of AUM. Capabilities defined by Janus
Henderson.
% of mutual fund AUM in top 2 Morningstar quartiles (as of
June 30, 2024)
Capability
1-year
3-year
5-year
10-year
Equities
70
%
76
%
83
%
87
%
Fixed Income
69
%
57
%
67
%
78
%
Multi-Asset
96
%
96
%
95
%
95
%
Alternatives
6
%
85
%
42
%
100
%
Total
74
%
77
%
83
%
88
%
Includes Janus Investment Fund, Janus Aspen Series and Clayton
Street Trust (U.S. Trusts), Janus Henderson Capital Funds (Dublin
based), Dublin and UK OEIC and Investment Trusts, Luxembourg
SICAVs, and Australian Managed Investment Schemes. Performance
across all time periods excludes Intech, the sale of which was
completed March 31, 2022. The top two Morningstar quartiles
represent funds in the top half of their category based on total
return. For the 1-, 3-, 5-, and 10-year periods ending June 30,
2024, 62%, 60%, 57%, and 64% of the 184, 168, 159, and 143 total
mutual funds, respectively, were in the top 2 Morningstar
quartiles.
Analysis based on “primary” share class (Class I Shares,
Institutional Shares, or share class with longest history for U.S.
Trusts; Class A Shares or share class with longest history for
Dublin based; primary share class as defined by Morningstar for
other funds). Performance may vary by share class. Rankings may be
based, in part, on the performance of a predecessor fund or share
class and are calculated by Morningstar using a methodology that
differs from that used by Janus Henderson. Methodology differences
may have a material effect on the return and therefore the ranking.
When an expense waiver is in effect, it may have a material effect
on the total return, and therefore the ranking for the period.
Funds not ranked by Morningstar are excluded from the analysis.
Capabilities defined by Janus Henderson. © 2024 Morningstar, Inc.
All Rights Reserved.
SECOND QUARTER 2024 RESULTS BRIEFING INFORMATION
Chief Executive Officer Ali Dibadj and Chief Financial Officer
Roger Thompson will present these results on August 1, 2024, on a
conference call and webcast to be held at 9:00 a.m. ET.
Those wishing to participate should call:
United States
833 470 1428
United Kingdom
0808 189 6484
All other countries
+1 929 526 1599
Conference ID
173664
Access to the webcast and accompanying slides will be available
via the investor relations section of Janus Henderson’s website
(ir.janushenderson.com).
About Janus Henderson
Janus Henderson Group is a leading global active asset manager
dedicated to helping clients define and achieve superior financial
outcomes through differentiated insights, disciplined investments,
and world-class service. As of June 30, 2024, Janus Henderson had
approximately US$361 billion in assets under management, more than
2,000 employees, and offices in 24 cities worldwide. The firm helps
millions of people globally invest in a brighter future together.
Headquartered in London, Janus Henderson is listed on the NYSE.
FINANCIAL DISCLOSURES
Condensed consolidated statements of comprehensive income
(unaudited)
Three months ended
30 Jun
31 Mar
30 Jun
(in US$ millions, except per share data
or as noted)
2024
2024
2023
Revenue:
Management fees
472.8
459.4
423.5
Performance fees
7.4
(13.1
)
(5.9
)
Shareowner servicing fees
58.5
57.2
53.3
Other revenue
49.7
48.2
45.6
Total revenue
588.4
551.7
516.5
Operating expenses:
Employee compensation and benefits
166.3
165.8
147.7
Long-term incentive plans
36.4
50.4
37.6
Distribution expenses
126.6
122.4
114.6
Investment administration
12.8
12.2
11.1
Marketing
9.8
8.0
9.3
General, administrative and occupancy
66.9
68.6
72.2
Depreciation and amortization
5.3
5.1
6.1
Total operating expenses
424.1
432.5
398.6
Operating income
164.3
119.2
117.9
Interest expense
(3.2
)
(3.1
)
(3.2
)
Investment gains, net
6.4
22.5
6.9
Other non-operating income, net
7.6
34.6
7.0
Income before taxes
175.1
173.2
128.6
Income tax provision
(41.6
)
(32.6
)
(28.2
)
Net income
133.5
140.6
100.4
Net income attributable to noncontrolling
interests
(3.8
)
(10.5
)
(10.6
)
Net income attributable to JHG
129.7
130.1
89.8
Less: allocation of earnings to
participating stock-based awards
(3.2
)
(3.0
)
(2.7
)
Net income attributable to JHG common
shareholders
126.5
127.1
87.1
Basic weighted-average shares outstanding
(in millions)
155.6
157.5
160.5
Diluted weighted-average shares
outstanding (in millions)
155.8
157.7
160.7
Diluted earnings per share (in
US$)
0.81
0.81
0.54
Reconciliation of non-GAAP financial information
In addition to financial results reported in accordance with
GAAP, we compute certain financial measures using non-GAAP
components, as defined by the SEC. These measures are not in
accordance with, or a substitute for, GAAP, and our financial
measures may be different from non-GAAP financial measures used by
other companies. We have provided a reconciliation of our non-GAAP
components to the most directly comparable GAAP components. The
following are reconciliations of GAAP revenue, operating expenses,
operating income, net income attributable to JHG, and diluted
earnings per share to adjusted revenue, adjusted operating
expenses, adjusted operating income, adjusted net income
attributable to JHG, and adjusted diluted earnings per share.
Three months ended
30 Jun
31 Mar
30 Jun
(in US$ millions, except per share data
or as noted)
2024
2024
2023
Reconciliation of revenue to adjusted
revenue
Revenue
588.4
551.7
516.5
Management fees1
(48.2
)
(45.5
)
(41.8
)
Shareowner servicing fees1
(47.3
)
(45.9
)
(43.3
)
Other revenue1
(34.6
)
(33.5
)
(29.5
)
Adjusted revenue
458.3
426.8
401.9
Reconciliation of operating expenses to
adjusted operating expenses
Operating expenses
424.1
432.5
398.6
Employee compensation and benefits2
(4.7
)
(8.5
)
(1.5
)
Long-term incentive plans2
(1.7
)
(1.8
)
(0.6
)
Distribution expenses1
(126.6
)
(122.4
)
(114.6
)
General, administration and occupancy2
2.6
(1.1
)
(1.0
)
Depreciation and amortization3
(0.1
)
(0.1
)
(0.5
)
Adjusted operating expenses
293.6
298.6
280.4
Adjusted operating income
164.7
128.2
121.5
Operating margin
27.9
%
21.6
%
22.8
%
Adjusted operating margin
35.9
%
30.0
%
30.2
%
Reconciliation of net income
attributable to JHG to adjusted net income attributable to
JHG
Net income attributable to JHG
129.7
130.1
89.8
Employee compensation and benefits2
1.2
6.0
1.5
Long-term incentive plans2
1.7
1.8
0.6
General, administration and occupancy2
(2.6
)
1.1
1.0
Depreciation and amortization3
0.1
0.1
0.5
Investment gains, net4
0.8
—
12.5
Other non-operating income (expense),
net4
3.7
(22.6
)
—
Income tax benefit (provision)5
0.6
(2.1
)
(3.9
)
Adjusted net income attributable to
JHG
135.2
114.4
102.0
Less: allocation of earnings to
participating stock-based awards
(3.4
)
(2.6
)
(3.1
)
Adjusted net income attributable to JHG
common shareholders
131.8
111.8
98.9
Weighted-average diluted common shares
outstanding – diluted (in millions)
155.8
157.7
160.7
Diluted earnings per share (in
US$)
0.81
0.81
0.54
Adjusted diluted earnings per share (in
US$)
0.85
0.71
0.62
1
JHG contracts with third-party
intermediaries to distribute and service certain of its investment
products. Fees for distribution and servicing related activities
are either provided for separately in an investment product’s
prospectus or are part of the management fee. Under both
arrangements, the fees are collected by JHG and passed through to
third-party intermediaries who are responsible for performing the
applicable services. The majority of distribution and servicing
fees collected by JHG are passed through to third-party
intermediaries. JHG management believes that the deduction of
distribution and servicing fees from revenue in the computation of
adjusted revenue reflects the pass-through nature of these
revenues. In certain arrangements, JHG performs the distribution
and servicing activities and retains the applicable fees. Revenues
for distribution and servicing activities performed by JHG are not
deducted from GAAP revenue. In addition to the adjustments related
to distribution and servicing activities, other revenue for the
three months ended June 30, 2024, and March 31, 2024, also includes
an adjustment related to an employee secondment arrangement with a
joint venture. The arrangement is pass-through in nature, and we
believe the costs do not represent our ongoing operations.
2
Adjustments for the three months ended
June 30, 2024, include a US$4.7 million insurance reimbursement
related to a separately managed account trade error that occurred
in 2023, acquisition related expenses, and the acceleration of
long-term incentive plan expense related to the departure of
certain employees. Adjustments for the three months ended March 31,
2024, and June 30, 2023, primarily relate to redundancy expenses
and the acceleration of long-term incentive plan expense related to
the departure of certain employees. JHG management believes these
costs are not representative of our ongoing operations.
Additionally, within the reconciliation of operating expenses to
adjusted operating expenses for the three months ended June 30,
2024, and March 31, 2024, employee compensation and benefits also
includes an adjustment related to an employee secondment
arrangement with a joint venture. The arrangement is pass-through
in nature, and we believe the costs do not represent our ongoing
operations.
3
Investment management contracts have been
identified as a separately identifiable intangible asset arising on
the acquisition of subsidiaries and businesses. Such contracts are
recognized at the net present value of the expected future cash
flows arising from the contracts at the date of acquisition. For
segregated mandate contracts, the intangible asset is amortized on
a straight-line basis over the expected life of the contracts. JHG
management believes these non-cash and acquisition-related costs
are not representative of our ongoing operations.
4
Adjustments for the three months ended
June 30, 2024, and March 31, 2024, consist primarily of the release
of accumulated foreign currency translation adjustments related to
JHG liquidated entities. The adjustment for the three months ended
June 30, 2023, includes a correction of previously recognized
earnings associated with an equity method investment. JHG
management believes these costs are not representative of our
ongoing operations.
5
The tax impact of the adjustments is
calculated based on the applicable U.S. or foreign statutory tax
rate as it relates to each adjustment. Certain adjustments are
either not taxable or not tax-deductible.
Condensed consolidated balance sheets (unaudited)
30 Jun
31 Dec
(in US$ millions)
2024
2023
Assets:
Cash and cash equivalents
1,013.9
1,152.4
Investments
258.0
334.2
Property, equipment and software, net
39.3
44.2
Intangible assets and goodwill, net
3,711.4
3,721.6
Assets of consolidated variable interest
entities
584.1
405.9
Other assets
806.7
838.3
Total assets
6,413.4
6,496.6
Liabilities, redeemable noncontrolling
interests and equity:
Long-term debt
303.1
304.6
Deferred tax liabilities, net
569.4
570.8
Liabilities of consolidated variable
interest entities
9.0
3.2
Other liabilities
710.4
762.5
Redeemable noncontrolling interests
346.7
317.2
Total equity
4,474.8
4,538.3
Total liabilities, redeemable
noncontrolling interests and equity
6,413.4
6,496.6
Condensed consolidated statements of cash flows
(unaudited)
Three months ended
30 Jun
31 Mar
30 Jun
(in US$ millions)
2024
2024
2023
Cash provided by (used for):
Operating activities
223.8
(5.0
)
171.4
Investing activities
(60.4
)
(54.3
)
(23.0
)
Financing activities
(50.9
)
(179.2
)
1.9
Effect of exchange rate changes
—
(7.3
)
11.8
Net change during period
112.5
(245.8
)
162.1
Basis of preparation
In the opinion of management of Janus Henderson Group plc, the
condensed consolidated financial statements contain all normal
recurring adjustments necessary to fairly present the financial
position, results of operations, and cash flows of JHG in
accordance with GAAP. Such financial statements have been prepared
in accordance with the instructions to Form 10‑Q pursuant to the
rules and regulations of the SEC. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with GAAP have been condensed or omitted pursuant to
such rules and regulations. The financial statements should be read
in conjunction with the annual consolidated financial statements
and notes presented in Janus Henderson’s Annual Report on Form 10‑K
for the year ended December 31, 2023, filed with the SEC
(Commission File No. 001‑38103). Events subsequent to the balance
sheet date have been evaluated for inclusion in the financial
statements through the issuance date and are included in the notes
to the condensed consolidated financial statements.
FORWARD-LOOKING STATEMENTS DISCLAIMER
Past performance is no guarantee of future results. Investing
involves risk, including the possible loss of principal and
fluctuation of value.
Certain statements in this press release not based on historical
facts are “forward-looking statements” within the meaning of the
federal securities laws, including the Private Securities
Litigation Reform Act of 1995, as amended, Section 21E of the
Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended. Such forward-looking statements
involve known and unknown risks and uncertainties that are
difficult to predict and could cause our actual results,
performance, or achievements to differ materially from those
discussed. These include statements as to our future expectations,
beliefs, plans, strategies, objectives, events, conditions,
financial performance, prospects, or future events, including with
respect to the timing and anticipated benefits of pending
transactions and expectations regarding acquisition opportunities.
In some cases, forward-looking statements can be identified by the
use of words such as “may,” “could,” “expect,” “intend,” “plan,”
“seek,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” “continue,” “likely,” “will,” “would,” and similar
words and phrases. Forward-looking statements are necessarily based
on estimates and assumptions that, while considered reasonable by
us and our management, are inherently uncertain. Accordingly, you
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made and are not
guarantees of future performance. We do not undertake any
obligation to publicly update or revise these forward-looking
statements.
Various risks, uncertainties, assumptions, and factors that
could cause our future results to differ materially from those
expressed by the forward-looking statements included in this press
release include, but are not limited to, risks, uncertainties,
assumptions, and factors discussed in our Annual Report on Form
10-K for the year ended December 31, 2023, and in other filings or
furnishings made by the Company with the SEC from time to time.
Annualized, pro forma, projected, and estimated numbers are used
for illustrative purposes only, are not forecasts, and may not
reflect actual results.
The information, statements, and opinions contained in this
document do not constitute a public offer under any applicable
legislation or an offer to sell or solicitation of any offer to buy
any securities or financial instruments or any advice or
recommendation with respect to such securities or other financial
instruments.
Not all products or services are available in all
jurisdictions.
Janus Henderson is a trademark of Janus Henderson Group plc or
one of its subsidiaries.
© Janus Henderson Group plc.
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version on businesswire.com: https://www.businesswire.com/news/home/20240801992015/en/
Investor enquiries: Jim Kurtz Head of Investor Relations
+1 303 336 4529 jim.kurtz@janushenderson.com Or Investor Relations
investor.relations@janushenderson.com
Media enquiries: Nicole Mullin Director of Corporate
Communications, EMEA, LatAm & APAC +44 (0)20 7818 2511
nicole.mullin@janushenderson.com
Candice Sun Head of Corporate Communications, North America +1
303 336 5452 candice.sun@janushenderson.com
Janus Henderson (NYSE:JHG)
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Janus Henderson (NYSE:JHG)
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