- Solid long-term investment performance, with 62% and 70% of
assets under management (‘AUM’) outperforming relevant benchmarks
on a three- and five-year basis, respectively, as at 31 March
2021
- AUM of US$405.1 billion increased 1% compared to the prior
quarter, reflecting positive markets partially offset by net
outflows of US$(3.3) billion
- Completed US$230 million of share buybacks during the first
quarter
- Board approved a 6% increase in the quarterly cash dividend to
US$0.38 per share
Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’)
published its first quarter 2021 results for the period ended 31
March 2021.
First quarter 2021 operating income was US$192.5 million
compared to US$227.0 million in the fourth quarter 2020 and
US$(332.4) million in the first quarter 2020. Adjusted operating
income, adjusted for one-time, acquisition and transaction related
costs, was US$201.5 million in the first quarter 2021 compared to
US$231.7 million in the fourth quarter 2020 and US$164.5 million in
the first quarter 2020.
First quarter 2021 diluted earnings per share of US$0.88
decreased 14% compared to US$1.02 in the fourth quarter 2020 and
increased versus US$(1.35) in the first quarter 2020. Adjusted
diluted earnings per share of US$0.91 in the first quarter 2021
decreased 13% compared to US$1.04 in the fourth quarter 2020 and
increased 52% versus US$0.60 in the first quarter 2020.
Dick Weil, Chief Executive Officer of Janus Henderson Group
plc, stated:
“Our first quarter results reflect solid long-term investment
performance, strong financials and continued capital return to
shareholders.
“We remain confident in the momentum we are seeing in several
areas of our business, including our Intermediary channel, Fixed
Income and Multi-Asset capabilities, and within Equities, European
Equities, Life Sciences and Sustainable Equities.
“We continue to be financially disciplined while focusing on
investing in strategic growth and returning excess cash to
shareholders. We returned over US$290 million through dividends and
share buybacks in the first quarter, and we are pleased to announce
a 6% dividend increase.”
SUMMARY OF FINANCIAL RESULTS
(unaudited) (in US$ millions, except per share data or as
noted)
The Group presents its financial results in US$ and in
accordance with accounting principles generally accepted in the
United States of America (‘US GAAP’ or ‘GAAP’). However, JHG
management evaluates the profitability of the Group 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
31 Mar
31 Dec
31 Mar
2021
2020
2020
GAAP
basis:
Revenue
644.0
657.2
554.9
Operating expenses
451.5
430.2
887.3
Operating income (loss)
192.5
227.0
(332.4
)
Operating margin
29.9
%
34.5
%
(59.9
)%
Net income (loss) attributable to JHG
155.5
186.8
(247.0
)
Diluted earnings (loss) per share
0.88
1.02
(1.35
)
Adjusted
basis:
Revenue
516.6
528.5
442.7
Operating expenses
315.1
296.8
278.2
Operating income
201.5
231.7
164.5
Operating margin
39.0
%
43.8
%
37.2
%
Net income attributable to JHG
161.5
189.0
112.7
Diluted earnings per share
0.91
1.04
0.60
First quarter 2021 adjusted revenue of US$516.6 million
decreased from the fourth quarter 2020 result of US$528.5 million
primarily as a result of lower performance fees due to seasonality.
First quarter 2021 adjusted net income attributable to JHG of
US$161.5 million declined compared to US$189.0 million in the
fourth quarter 2020 primarily due to the seasonal performance fees
and larger net investment gains in the fourth quarter 2020.
DIVIDEND AND SHARE
BUYBACK
On 28 April 2021, the Board approved a 6% increase in the
quarterly dividend and declared a first quarter dividend in respect
of the three months ended 31 March 2021 of US$0.38 per share.
Shareholders on the register on the record date of 11 May 2021 will
be paid the dividend on 27 May 2021. Janus Henderson does not offer
a dividend reinvestment plan.
JHG purchased 8.1 million of its ordinary shares on the NYSE and
its CHESS Depositary Interests (CDIs) on the ASX in the first
quarter, primarily as part of its participation in Dai-ichi Life’s
registered secondary public offering, for a total outlay of
US$230.2 million.
Net tangible assets per
share
US$
31 Mar 2021
31 Dec 2020
Net tangible assets / (liabilities) per
ordinary share
2.81
3.68
Net tangible assets are defined by the ASX as being total assets
less intangible assets less total liabilities ranking ahead of, or
equally with, claims of ordinary shares.
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 Group comparative AUM and
flows
Three months ended
31 Mar
31 Dec
31 Mar
2021
2020
2020
Opening AUM
401.6
358.3
374.8
Sales
20.7
23.2
21.4
Redemptions
(24.0
)
(24.3
)
(33.6
)
Net sales / (redemptions)
(3.3
)
(1.1
)
(12.2
)
Market / FX
6.8
44.4
(64.0
)
Disposals
—
—
(4.2
)
Closing AUM
405.1
401.6
294.4
Quarterly AUM and flows by
capability
Fixed
Quantitative
Equities
Income
Multi-Asset
Equities
Alternatives
Total
AUM 31 Mar 2020
149.9
65.3
35.3
34.6
9.3
294.4
Sales
7.9
6.3
2.5
0.4
0.8
17.9
Redemptions
(12.1
)
(7.0
)
(1.8
)
(4.3
)
(0.9
)
(26.1
)
Net sales / (redemptions)
(4.2
)
(0.7
)
0.7
(3.9
)
(0.1
)
(8.2
)
Market / FX
33.5
5.6
4.3
6.8
0.3
50.5
Reclassification1
(0.1
)
—
—
—
0.1
—
AUM 30 Jun 2020
179.1
70.2
40.3
37.5
9.6
336.7
Sales
5.8
5.9
2.3
1.3
0.5
15.8
Redemptions
(10.9
)
(4.1
)
(1.7
)
(1.4
)
(0.6
)
(18.7
)
Net sales / (redemptions)
(5.1
)
1.8
0.6
(0.1
)
(0.1
)
(2.9
)
Market / FX
14.9
3.1
2.7
3.3
0.5
24.5
AUM 30 Sep 2020
188.9
75.1
43.6
40.7
10.0
358.3
Sales
10.3
8.7
3.1
0.3
0.8
23.2
Redemptions
(10.4
)
(7.5
)
(1.9
)
(3.7
)
(0.8
)
(24.3
)
Net sales / (redemptions)
(0.1
)
1.2
1.2
(3.4
)
—
(1.1
)
Market / FX
30.6
5.2
3.2
4.7
0.7
44.4
AUM 31 Dec 2020
219.4
81.5
48.0
42.0
10.7
401.6
Sales
10.5
5.9
3.0
0.2
1.1
20.7
Redemptions
(12.0
)
(5.5
)
(2.2
)
(2.3
)
(2.0
)
(24.0
)
Net sales / (redemptions)
(1.5
)
0.4
0.8
(2.1
)
(0.9
)
(3.3
)
Market / FX
7.0
(2.4
)
0.7
1.4
0.1
6.8
AUM 31 Mar 2021
224.9
79.5
49.5
41.3
9.9
405.1
_________________________ 1 Reflects
reclassification of an existing fund from Equities to
Alternatives.
Average AUM
Three months ended
31 Mar
31 Dec
31 Mar
2021
2020
2020
Equities
223.6
204.1
189.3
Fixed Income
80.9
78.1
71.6
Multi-Asset
48.7
45.6
39.4
Quantitative Equities
41.5
40.8
42.0
Alternatives
10.6
10.4
10.4
Total
405.3
379.0
352.7
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark
(at 31 March 2021)
Capability
1-year
3-year
5-year
Equities
55
%
54
%
69
%
Fixed Income
94
%
97
%
89
%
Multi-Asset
98
%
97
%
94
%
Quantitative Equities
48
%
4
%
11
%
Alternatives
98
%
97
%
100
%
Total
67
%
62
%
70
%
Outperformance is measured based on composite performance gross
of fees vs 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 vs zero for
absolute return strategies, (2) fund net of fees vs primary index
or (3) fund net of fees vs Morningstar peer group average or
median. Non-discretionary and separately managed account assets are
included with a corresponding composite where applicable.
Cash management vehicles, ETFs, Managed CDOs, Private Equity
funds and custom non-discretionary accounts with no corresponding
composite are excluded from the analysis. Excluded assets represent
5% of AUM as at 31 March 2021. Capabilities defined by Janus
Henderson.
% of mutual fund AUM in top 2
Morningstar quartiles (at 31 March 2021)
Capability
1-year
3-year
5-year
Equities
35
%
60
%
64
%
Fixed Income
69
%
79
%
73
%
Multi-Asset
19
%
91
%
92
%
Quantitative Equities
32
%
32
%
4
%
Alternatives
30
%
76
%
30
%
Total
37
%
67
%
68
%
Includes Janus Investment Fund, Janus Aspen Series and Clayton
Street Trust (US Trusts), Janus Henderson Capital Funds (Dublin
based), Dublin and UK OEIC and Investment Trusts, Luxembourg SICAVs
and Australian Managed Investment Schemes. The top two Morningstar
quartiles represent funds in the top half of their category based
on total return. On an asset-weighted basis, 81% of total mutual
fund AUM was in the top 2 Morningstar quartiles for the 10-year
period ending 31 March 2021. For the 1-, 3-, 5- and 10-year periods
ending 31 March 2021, 44%, 59%, 53% and 65% of the 196, 187, 179
and 148 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 US
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. © 2021
Morningstar, Inc. All Rights Reserved.
SECOND QUARTER 2021
RESULTS
Janus Henderson intends to publish its second quarter 2021
results on 29 July 2021.
FIRST QUARTER 2021 RESULTS
BRIEFING INFORMATION
Chief Executive Officer Dick Weil and Chief Financial Officer
Roger Thompson will present these results on 29 April 2021 on a
conference call and webcast to be held at 8am EDT, 1pm BST, 10pm
AEST.
Those wishing to participate should call:
United Kingdom
0800 279 9489 (toll free)
United States
866 270 1533 (toll free)
Australia
1 800 121 301 (toll free)
All other countries
+1 412 317 0797 (this is not toll
free)
Conference ID
10153510
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 investors achieve long-term financial goals
through a broad range of investment solutions, including equities,
fixed income, quantitative equities, multi-asset and alternative
asset class strategies.
At 31 March 2021, Janus Henderson had approximately US$405
billion in assets under management, more than 2,000 employees, and
offices in 26 cities worldwide. Headquartered in London, the
company is listed on the New York Stock Exchange (NYSE) and the
Australian Securities Exchange (ASX).
FINANCIAL DISCLOSURES
Condensed consolidated statements
of comprehensive income (unaudited)
Three months ended
31 Mar
31 Dec
31 Mar
(in US$ millions, except per share data
or as noted)
2021
2020
2020
Revenue:
Management fees
514.9
489.1
439.6
Performance fees
17.0
59.3
14.6
Shareowner servicing fees
60.8
57.9
50.3
Other revenue
51.3
50.9
50.4
Total revenue
644.0
657.2
554.9
Operating expenses:
Employee compensation and benefits
174.6
162.3
155.6
Long-term incentive plans
53.5
44.7
33.6
Distribution expenses
127.4
128.7
112.2
Investment administration
12.6
12.6
11.7
Marketing
6.2
3.9
6.7
General, administrative and occupancy
63.0
66.4
65.2
Impairment of goodwill and intangible
assets
3.6
—
487.3
Depreciation and amortisation
10.6
11.6
15.0
Total operating expenses
451.5
430.2
887.3
Operating income
192.5
227.0
(332.4
)
Interest expense
(3.2
)
(3.2
)
(3.3
)
Investment gains (losses), net
1.6
32.2
(50.5
)
Other non-operating income (expense),
net
(0.1
)
(0.2
)
32.2
Income (loss) before taxes
190.8
255.8
(354.0
)
Income tax benefit (provision)
(43.1
)
(57.4
)
68.8
Net income (loss)
147.7
198.4
(285.2
)
Net loss (income) attributable to
noncontrolling interests
7.8
(11.6
)
38.2
Net income (loss) attributable to
JHG
155.5
186.8
(247.0
)
Less: allocation of earnings to
participating stock-based awards
(4.8
)
(5.5
)
—
Net income (loss) attributable to JHG
common shareholders
150.7
181.3
(247.0
)
Basic weighted-average shares outstanding
(in millions)
171.0
176.5
182.4
Diluted weighted-average shares
outstanding (in millions)
171.8
177.0
182.4
Diluted earnings (loss) per share (in
US$)
0.88
1.02
(1.35
)
Reconciliation of non-GAAP financial information
In addition to financial results reported in accordance with
GAAP, we compute certain financial measures using non-GAAP
components, as defined by the SEC. These measures are not in
accordance with, or a substitute for, GAAP, and our financial
measures may be different from non-GAAP financial measures used by
other companies. We have provided a reconciliation of our non-GAAP
components to the most directly comparable GAAP components. The
following are reconciliations of US GAAP revenue, operating
expenses, operating income, net income (loss) attributable to JHG
and diluted earnings (loss) per share to adjusted revenue, adjusted
operating expenses, adjusted operating income, adjusted net income
attributable to JHG and adjusted diluted earnings per share.
Three months ended
31 Mar
31 Dec
31 Mar
(in US$ millions, except per share data
or as noted)
2021
2020
2020
Reconciliation of revenue to adjusted
revenue
Revenue
644.0
657.2
554.9
Management fees1
(46.8
)
(51.6
)
(44.1
)
Shareowner servicing fees1
(50.0
)
(47.4
)
(41.1
)
Other revenue1
(30.6
)
(29.7
)
(27.0
)
Adjusted revenue
516.6
528.5
442.7
Reconciliation of operating expenses to
adjusted operating expenses
Operating expenses
451.5
430.2
887.3
Employee compensation and benefits2
—
(0.1
)
(1.4
)
Long-term incentive plans2
0.1
0.1
0.1
Distribution expenses1
(127.4
)
(128.7
)
(112.2
)
General, administration and occupancy2
(3.6
)
(2.8
)
(1.9
)
Impairment of goodwill and intangible
assets3
(3.6
)
—
(487.3
)
Depreciation and amortisation3
(1.9
)
(1.9
)
(6.4
)
Adjusted operating expenses
315.1
296.8
278.2
Adjusted operating income
201.5
231.7
164.5
Operating margin
29.9
%
34.5
%
(59.9
)%
Adjusted operating margin
39.0
%
43.8
%
37.2
%
Reconciliation of net income (loss)
attributable to JHG to adjusted net income attributable to
JHG
Net income (loss) attributable to JHG
155.5
186.8
(247.0
)
Employee compensation and benefits2
—
0.1
1.4
Long-term incentive plans2
(0.1
)
(0.1
)
(0.1
)
General, administration and occupancy2
3.6
2.8
1.9
Impairment of goodwill and intangible
assets3
3.6
—
487.3
Depreciation and amortisation3
1.9
1.9
6.4
Interest expense4
—
—
0.1
Investment gains (losses), net4
0.2
(1.4
)
—
Other non-operating income (expense),
net4
(1.8
)
(1.7
)
(25.9
)
Income tax benefit (provision)5
(1.4
)
0.6
(111.4
)
Adjusted net income attributable to
JHG
161.5
189.0
112.7
Less: allocation of earnings to
participating stock-based awards
(5.0
)
(5.5
)
(3.2
)
Adjusted net income attributable to JHG
common shareholders
156.5
183.5
109.5
Weighted-average diluted common shares
outstanding – diluted (two class) (in millions)
171.8
177.0
182.4
Diluted earnings (loss) per share (two
class) (in US$)
0.88
1.02
(1.35
)
Adjusted diluted earnings per share
(two class) (in US$)
0.91
1.04
0.60
________________________
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 service 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 primarily represent rent
expense for subleased office space as well as administrative costs
related to Dai-ichi Life’s secondary offering. JHG management
believes these costs are not representative of the ongoing
operations of the Group.
3
Investment management contracts have been
identified as a separately identifiable intangible asset arising on
the acquisition of subsidiaries and businesses. Such contracts are
recognised 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 amortised on
a straight-line basis over the expected life of the contracts.
Adjustments also include impairment charges of our goodwill and
certain mutual fund investment management agreements, client
relationships and trademarks. JHG management believes these
non-cash and acquisition-related costs are not representative of
the ongoing operations of the Group.
4
Adjustments primarily relate to contingent
consideration adjustments associated with prior acquisitions and
increased debt expense as a consequence of the fair value uplift on
debt due to acquisition accounting. JHG management believes these
costs are not representative of the ongoing operations of the
Group.
5
The tax impact of the adjustments is
calculated based on the applicable US 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)
31 Mar
31 Dec
(in US$ millions)
2021
2020
Assets:
Cash and cash equivalents
826.1
1,099.7
Investment securities
255.5
268.1
Property, equipment and software, net
74.0
77.9
Intangible assets and goodwill, net
4,071.7
4,070.2
Assets of consolidated variable interest
entities
202.0
226.5
Other assets
1,065.4
948.4
Total assets
6,494.7
6,690.8
Liabilities, redeemable noncontrolling
interests and equity:
Long-term debt
312.6
313.3
Deferred tax liabilities, net
627.2
627.4
Liabilities of consolidated variable
interest entities
5.5
3.2
Other liabilities
894.9
927.3
Redeemable noncontrolling interests
99.3
85.8
Total equity
4,555.2
4,733.8
Total liabilities, redeemable
noncontrolling interests and equity
6,494.7
6,690.8
Condensed consolidated statements
of cash flows (unaudited)
Three months ended
31 Mar
31 Dec
31 Mar
(in US$ millions)
2021
2020
2020
Cash provided by (used for):
Operating activities
25.8
220.2
37.9
Investing activities
23.4
119.4
41.8
Financing activities
(322.5
)
(191.2
)
(46.0
)
Effect of exchange rate changes
1.8
33.2
(28.0
)
Net change during period
(271.5
)
181.6
5.7
STATUTORY DISCLOSURES
Associates and joint
ventures
At 31 March 2021, the Group holds interests in the following
associates and joint ventures managed through shareholder
agreements with third party investors, accounted for under the
equity method:
- LongTail Alpha LLC. Ownership 20%
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 US 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 Group’s Annual Report on
Form 10‑K for the year ended 31 December 2020, on file 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.
Corporate governance principles
and recommendations
In the opinion of the Directors, the financial records of the
Group have been properly maintained, and the Condensed Consolidated
Financial Statements comply with the appropriate accounting
standards and give a true and fair view of the financial position
and performance of the Group. This opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
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 those factors
identified in Janus Henderson Group’s Annual Report on Form 10‑K
for the fiscal year ended 31 December 2020 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 at the date on which such
statements were made. Janus Henderson Group 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.
Annualised, 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.
Mutual funds in the US are distributed by Janus Henderson
Distributors.
Please consider the charges, risks, expenses and investment
objectives carefully before investing. For a US fund prospectus or,
if available, a summary prospectus containing this and other
information, please contact your investment professional or call
800.668.0434. Read it carefully before you invest or send
money.
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Investor enquiries: Jim Kurtz Co-Head Investor Relations
(US) +1 303 336 4529 jim.kurtz@janushenderson.com Melanie Horton
Co-Head Investor Relations (Non-US) +44 (0)20 7818 2905
melanie.horton@janushenderson.com Or Investor Relations
investor.relations@janushenderson.com Media enquiries:
Stephen Sobey Head of Media Relations +44 (0)20 7818 2523
stephen.sobey@janushenderson.com United Kingdom: Edelman Smithfield
Latika Shah +44 (0)7950 671 948 latika.shah@edelmansmithfield.com
Andrew Wilde +44 (0)7786 022 022 andrew.wilde@edelmansmithfield.com
Asia Pacific: Honner Craig Morris +61 2 8248 3757
craig@honner.com.au
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