- Solid investment performance, with 64%, 68%, 66%, and 71% of
assets under management (“AUM”) outperforming relevant benchmarks
on a one-, three-, five-, and 10-year basis, respectively, as of
June 30, 2023
- AUM increased 4% compared to the first quarter 2023 to US$322.1
billion
- US$(0.5) billion of net outflows in second quarter 2023
compared to US$(7.8) billion of net outflows in second quarter
2022
- Second quarter 2023 diluted EPS of US$0.54, or US$0.62 on an
adjusted basis
- Board declared a quarterly dividend of US$0.39 per share
Janus Henderson Group plc (NYSE/ASX: JHG; “JHG” or the
“Company”) published its second quarter 2023 results for the period
ended June 30, 2023. Second quarter 2023 operating income was
US$117.9 million compared to US$100.4 million in the first quarter
2023 and US$143.9 million in the second quarter 2022. Adjusted
operating income, adjusted for one-time, acquisition and
transaction related costs, was US$121.5 million in the second
quarter 2023 compared to US$105.6 million in the first quarter 2023
and US$149.3 million in the second quarter 2022.
Second quarter 2023 diluted earnings per share of US$0.54
compared to US$0.53 in the first quarter 2023 and US$0.57 in the
second quarter 2022. Adjusted diluted earnings per share of US$0.62
in the second quarter 2023 compared to US$0.55 in the first quarter
2023 and compared to US$0.63 in the second quarter 2022.
Ali Dibadj, Chief Executive Officer, stated:
“Janus Henderson has delivered a tremendous amount of positive
change over the last year, and I am very pleased with our
direction. We are in the initial stages of executing our strategic
plan, and early progress is tangible, as evidenced by delivering
our two best net flow quarters in nearly three years.
"We continue to deliver good quarterly results, investment
performance is solid, we are generating substantial cash flow, and
we have a strong and stable balance sheet. Our path to delivering
consistent organic growth will not be linear, and we remain
encouraged with the momentum and activity levels in the business.
Our focus continues to be on our mission of helping clients define
and achieve superior financial outcomes through differentiated
insights, disciplined investments, and world-class service, and to
deliver desired results for our clients, shareholders, employees,
and all our other stakeholders.”
SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ 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 2023
31 Mar 2023
30 Jun 2022
GAAP
basis:
Revenue
516.5
495.8
555.5
Operating expenses
398.6
395.4
411.6
Operating income
117.9
100.4
143.9
Operating margin
22.8
%
20.3
%
25.9
%
Net income attributable to JHG
89.8
87.4
96.2
Diluted earnings per share
0.54
0.53
0.57
Adjusted
basis:
Revenue
401.9
383.8
427.7
Operating expenses
280.4
278.2
278.4
Operating income
121.5
105.6
149.3
Operating margin
30.2
%
27.5
%
34.9
%
Net income attributable to JHG
102.0
91.3
104.9
Diluted earnings per share
0.62
0.55
0.63
DIVIDEND AND SHARE BUYBACK
On August 1, 2023, the Board declared a second quarter dividend
in respect of the three months ended June 30, 2023, of US$0.39 per
share. Shareholders on the register on the record date of August
14, 2023, will be paid the dividend on August 30, 2023.
The Company did not purchase any shares of its common stock on
the New York Stock Exchange (“NYSE”) or CHESS Depositary Interests
(“CDIs”) on the Australian Securities Exchange (“ASX”) in the
second quarter 2023.
AUM AND FLOWS (in US$ 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 switches.
Total comparative AUM and flows
Three months ended
30 Jun 2023
31 Mar 2023
30 Jun 2022
Opening AUM
310.5
287.3
361.0
Sales
15.2
19.5
16.4
Redemptions
(15.7
)
(14.0
)
(24.2
)
Net sales / (redemptions)
(0.5
)
5.5
(7.8
)
Market / FX
12.1
17.7
(53.5
)
Closing AUM
322.1
310.5
299.7
Quarterly AUM and flows by
capability
Fixed
Equities
Income
Multi-Asset
Alternatives
Total
AUM 30 Jun 2022
177.0
64.5
46.5
11.7
299.7
Sales
4.8
4.4
1.5
0.7
11.4
Redemptions
(8.9
)
(5.6
)
(1.7
)
(1.0
)
(17.2
)
Net sales / (redemptions)
(4.1
)
(1.2
)
(0.2
)
(0.3
)
(5.8
)
Market / FX
(11.1
)
(4.8
)
(2.5
)
(0.9
)
(19.3
)
AUM 30 Sep 2022
161.8
58.5
43.8
10.5
274.6
Sales
5.6
7.7
1.1
0.4
14.8
Redemptions
(13.1
)
(9.6
)
(2.1
)
(1.0
)
(25.8
)
Net sales / (redemptions)
(7.5
)
(1.9
)
(1.0
)
(0.6
)
(11.0
)
Market / FX
17.0
3.2
2.7
0.8
23.7
AUM 31 Dec 2022
171.3
59.8
45.5
10.7
287.3
Sales
10.7
7.3
1.0
0.5
19.5
Redemptions
(7.4
)
(3.7
)
(1.8
)
(1.1
)
(14.0
)
Net sales / (redemptions)
3.3
3.6
(0.8
)
(0.6
)
5.5
Market / FX
13.9
1.6
2.1
0.1
17.7
AUM 31 Mar 2023
188.5
65.0
46.8
10.2
310.5
Sales
8.6
5.1
1.1
0.4
15.2
Redemptions
(8.6
)
(4.1
)
(1.8
)
(1.2
)
(15.7
)
Net sales / (redemptions)
—
1.0
(0.7
)
(0.8
)
(0.5
)
Market / FX
10.6
(0.1
)
1.6
—
12.1
Reclassifications and disposals
0.4
—
—
(0.4
)
—
AUM 30 Jun 2023
199.5
65.9
47.7
9.0
322.1
Average AUM by capability
Three months ended
30 Jun 2023
31 Mar 2023
30 Jun 2022
Equities
193.4
184.0
197.0
Fixed Income
65.8
63.5
68.8
Multi-Asset
47.1
46.5
49.5
Alternatives
9.5
10.5
13.2
Total
315.8
304.5
328.5
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark (as of
June 30, 2023)
Capability
1-year
3-year
5-year
10-year
Equities
61
%
58
%
53
%
59
%
Fixed Income
50
%
73
%
85
%
90
%
Multi-Asset
95
%
97
%
96
%
96
%
Alternatives
49
%
96
%
100
%
100
%
Total
64
%
68
%
66
%
71
%
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.
Performance across all time periods excludes Intech, the sale of
which was completed March 31, 2022. Excluded assets represent 3% of
AUM. Capabilities defined by Janus Henderson.
% of mutual fund AUM in top 2
Morningstar quartiles (as of June 30, 2023)
Capability
1-year
3-year
5-year
10-year
Equities
71
%
57
%
79
%
88
%
Fixed Income
22
%
35
%
52
%
66
%
Multi-Asset
93
%
96
%
92
%
96
%
Alternatives
78
%
38
%
45
%
100
%
Total
70
%
61
%
78
%
87
%
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,
2023, 49%, 49%, 55%, and 63% of the 185, 178, 168, and 153 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.
ETFs and funds not ranked by Morningstar are excluded from the
analysis. Capabilities defined by Janus Henderson. © 2023
Morningstar, Inc. All Rights Reserved.
SECOND QUARTER 2023 RESULTS BRIEFING INFORMATION
Chief Executive Officer Ali Dibadj and Chief Financial Officer
Roger Thompson will present these results on August 2, 2023, on a
conference call and webcast to be held at 8 a.m. EDT, 1 p.m. BST,
10 p.m. AEST.
Those wishing to participate should call:
United States
833 470 1428 (toll free)
United Kingdom
0808 189 6484 (toll free)
Australia
02 7908 3093 (this is not toll free)
All other countries
+1 404 975 4839 (this is not toll
free)
Conference ID
088536
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, 2023, Janus Henderson had
approximately US$322 billion in assets under management, more than
2,000 employees, and offices in 24 cities worldwide. Headquartered
in London, the company is listed on the NYSE and the ASX.
FINANCIAL DISCLOSURES
Condensed consolidated statements of
comprehensive income (unaudited)
Three months ended
(in US$ millions, except per share data
or as noted)
30 Jun 2023
31 Mar 2023
30 Jun 2022
Revenue:
Management fees
423.5
414.6
453.6
Performance fees
(5.9
)
(14.9
)
(3.4
)
Shareowner servicing fees
53.3
51.5
56.3
Other revenue
45.6
44.6
49.0
Total revenue
516.5
495.8
555.5
Operating expenses:
Employee compensation and benefits
147.7
140.3
145.0
Long-term incentive plans
37.6
55.5
40.7
Distribution expenses
114.6
112.0
127.8
Investment administration
11.1
11.6
10.3
Marketing
9.3
8.8
7.8
General, administrative and occupancy
72.2
61.1
72.3
Depreciation and amortization
6.1
6.1
7.7
Total operating expenses
398.6
395.4
411.6
Operating income
117.9
100.4
143.9
Interest expense
(3.2
)
(3.1
)
(3.2
)
Investment gains (losses), net
6.9
17.6
(109.4
)
Other non-operating income, net
7.0
7.1
0.6
Income before taxes
128.6
122.0
31.9
Income tax provision
(28.2
)
(26.0
)
(36.7
)
Net income
100.4
96.0
(4.8
)
Net loss (income) attributable to
noncontrolling interests
(10.6
)
(8.6
)
101.0
Net income attributable to JHG
89.8
87.4
96.2
Less: allocation of earnings to
participating stock-based awards
(2.7
)
(2.4
)
(3.0
)
Net income attributable to JHG common
shareholders
87.1
85.0
93.2
Basic weighted-average shares outstanding
(in millions)
160.5
160.2
161.9
Diluted weighted-average shares
outstanding (in millions)
160.7
160.4
162.2
Diluted earnings per share (in
US$)
0.54
0.53
0.57
Reconciliation of non-GAAP financial information
In addition to financial results reported in accordance with
GAAP, we compute certain financial measures using non-GAAP
components, as defined by the SEC. These measures are not in
accordance with, or a substitute for, GAAP, and our financial
measures may be different from non-GAAP financial measures used by
other companies. We have provided a reconciliation of our non-GAAP
components to the most directly comparable GAAP components. The
following are reconciliations of GAAP revenue, operating expenses,
operating income, net income attributable to JHG, and diluted
earnings per share to adjusted revenue, adjusted operating
expenses, adjusted operating income, adjusted net income
attributable to JHG, and adjusted diluted earnings per share.
Three months ended
(in US$ millions, except per share data
or as noted)
30 Jun 2023
31 Mar 2023
30 Jun 2022
Reconciliation of revenue to adjusted
revenue
Revenue
516.5
495.8
555.5
Management fees1
(41.8
)
(40.8
)
(50.9
)
Shareowner servicing fees1
(43.3
)
(42.3
)
(46.9
)
Other revenue1
(29.5
)
(28.9
)
(30.0
)
Adjusted revenue
401.9
383.8
427.7
Reconciliation of operating expenses to
adjusted operating expenses
Operating expenses
398.6
395.4
411.6
Employee compensation and benefits2
(1.5
)
(1.2
)
—
Long-term incentive plans2
(0.6
)
(2.5
)
(3.6
)
Distribution expenses1
(114.6
)
(112.0
)
(127.8
)
General, administration and occupancy2
(1.0
)
(1.0
)
(1.1
)
Depreciation and amortization3
(0.5
)
(0.5
)
(0.7
)
Adjusted operating expenses
280.4
278.2
278.4
Adjusted operating income
121.5
105.6
149.3
Operating margin
22.8
%
20.3
%
25.9
%
Adjusted operating margin
30.2
%
27.5
%
34.9
%
Reconciliation of net income
attributable to JHG to adjusted net income attributable to
JHG
Net income attributable to JHG
89.8
87.4
96.2
Employee compensation and benefits2
1.5
1.2
—
Long-term incentive plans2
0.6
2.5
3.6
General, administration and occupancy2
1.0
1.0
1.1
Depreciation and amortization3
0.5
0.5
0.7
Investment gains, net4
12.5
—
—
Other non-operating income, net4
—
—
3.0
Income tax benefit (provision)5
(3.9
)
(1.3
)
0.3
Adjusted net income attributable to
JHG
102.0
91.3
104.9
Less: allocation of earnings to
participating stock-based awards
(3.1
)
(2.5
)
(3.3
)
Adjusted net income attributable to JHG
common shareholders
98.9
88.8
101.6
Weighted-average diluted common shares
outstanding – diluted (in millions)
160.7
160.4
162.2
Diluted earnings per share (in
US$)
0.54
0.53
0.57
Adjusted diluted earnings per share (in
US$)
0.62
0.55
0.63
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.
2
Adjustments consist primarily of 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.
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
The adjustment for the three months ended
June 30, 2023, includes a correction of previously recognized
earnings associated with an equity method investment. Adjustments
for the three months ended June 30, 2022, consist primarily of
accumulated foreign currency translation expense related to
liquidated JHG entities. 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)
(in US$ millions)
30 Jun 2023
31 Dec 2022
Assets:
Cash and cash equivalents
996.9
1,162.3
Investment securities
312.0
261.6
Property, equipment and software, net
48.3
51.8
Intangible assets and goodwill, net
3,717.6
3,667.8
Assets of consolidated variable interest
entities
499.7
352.0
Other assets
813.7
742.3
Total assets
6,388.2
6,237.8
Liabilities, redeemable noncontrolling
interests and equity:
Long-term debt
306.0
307.5
Deferred tax liabilities, net
578.9
574.6
Liabilities of consolidated variable
interest entities
5.0
4.3
Other liabilities
626.7
754.9
Redeemable noncontrolling interests
389.8
233.9
Total equity
4,481.8
4,362.6
Total liabilities, redeemable
noncontrolling interests and equity
6,388.2
6,237.8
Condensed consolidated statements of
cash flows (unaudited)
Three months ended
(in US$ millions)
30 Jun 2023
31 Mar 2023
30 Jun 2022
Cash provided by (used for):
Operating activities
171.4
(108.2
)
162.9
Investing activities
(23.0
)
(235.1
)
76.1
Financing activities
1.9
13.8
(135.9
)
Effect of exchange rate changes
11.8
15.4
(42.8
)
Net change during period
162.1
(314.1
)
60.3
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, 2022, 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.
This document includes statements concerning potential future
events involving Janus Henderson Group plc that could differ
materially from the events that actually occur. The differences
could be caused by a number of factors, including, but not limited
to, increasing interest rates and inflation, volatility, or
disruption in financial markets, our investment performance as
compared to third-party benchmarks or competitive products,
redemptions and other withdrawals from the funds and accounts we
manage, and other factors identified in JHG’s Annual Report on Form
10‑K for the fiscal year ended December 31, 2022, and in other
filings or furnishings made by the Company with the Securities and
Exchange Commission from time to time (Commission File No.
001‑38103), including those that appear under headings such as
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.” Many of these
factors are beyond the control of JHG and its management. Any
forward-looking statements contained in this document are as of the
date on which such statements were made. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements after the date they are made, whether as a result of new
information, future events, or otherwise, except as required by
law.
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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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 Media
Relations +44 (0)20 7818 2511 nicole.mullin@janushenderson.com
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