- Solid investment performance, with 67%, 70%, 67%, and 84% of
assets under management (“AUM”) outperforming relevant benchmarks
on a one-, three-, five-, and 10-year basis, respectively, as of
March 31, 2023
- AUM increased 8% to US$310.5 billion compared to the fourth
quarter, due to market performance, U.S. dollar depreciation, and
net inflows
- US$5.5 billion of net inflows reflect mandate wins from
sophisticated Institutional clients across several Equity and Fixed
Income investment strategies and improved outflows in our
Intermediary and Self-Directed channels
- First quarter 2023 diluted EPS of US$0.53, or US$0.55 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 first quarter 2023 results for the period
ended March 31, 2023. First quarter 2023 operating income was
US$100.4 million compared to US$67.8 million in the fourth quarter
2022 and US$157.4 million in the first quarter 2022. Adjusted
operating income, adjusted for one-time, acquisition and
transaction related costs, was US$105.6 million in the first
quarter 2023 compared to US$123.2 million in the fourth quarter
2022 and US$178.8 million in the first quarter 2022.
First quarter 2023 diluted earnings per share of US$0.53
compared to US$0.39 in the fourth quarter 2022 and US$0.61 in the
first quarter 2022. Adjusted diluted earnings per share of US$0.55
in the first quarter 2023 compared to US$0.61 in the fourth quarter
2022 and compared to US$0.75 in the first quarter 2022.
Ali Dibadj, Chief Executive Officer, stated:
“Through this time of market volatility, we are pleased to have
delivered solid investment performance, good financial results, and
US$5.5 billion in net inflows, while maintaining a strong balance
sheet. We are energized by the progress the dedicated team at Janus
Henderson has made and are cognizant that we still have much work
to do to deliver consistent organic growth over the long term. Our
focus continues to be on controlling what we can control to provide
desired outcomes for our clients, shareholders, employees, and
other stakeholders.”
SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ 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
31 Mar
31 Dec
31 Mar
2023
2022
2022
GAAP
basis:
Revenue
495.8
515.2
620.0
Operating expenses
395.4
447.4
462.6
Operating income
100.4
67.8
157.4
Operating margin
20.3
%
13.2
%
25.4
%
Net income attributable to JHG
87.4
65.0
103.6
Diluted earnings per share
0.53
0.39
0.61
Adjusted
basis:
Revenue
383.8
405.2
478.2
Operating expenses
278.2
282.0
299.4
Operating income
105.6
123.2
178.8
Operating margin
27.5
%
30.4
%
37.4
%
Net income attributable to JHG
91.3
102.0
125.8
Diluted earnings per share
0.55
0.61
0.75
DIVIDEND AND SHARE BUYBACK
On May 2, 2023, the Board declared a first quarter dividend in
respect of the three months ended March 31, 2023, of US$0.39 per
share. Shareholders on the register on the record date of May 15,
2023, will be paid the dividend on May 31, 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 first
quarter 2023 as part of the US$200 million on-market buyback
program approved by the Board in May 2022.
AUM AND FLOWS (in US$ 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
31 Mar
31 Dec
31 Mar
2023
2022
2022
Opening AUM
287.3
274.6
432.3
Sales
19.5
14.8
17.9
Redemptions
(14.0
)
(25.8
)
(29.8
)
Net sales / (redemptions)
5.5
(11.0
)
(11.9
)
Market / FX
17.7
23.7
(31.1
)
Reclassifications and disposals1
—
—
(28.3
)
Closing AUM
310.5
287.3
361.0
1
Disposals relate to the sale of Intech, and reclassifications
relate to a reclassification of existing funds from Quantitative
Equities to Equities.
Quarterly AUM and flows by
capability
Fixed
Equities
Income
Multi-Asset
Alternatives
Total
AUM 31 Mar 2022
221.3
75.5
53.9
10.3
361.0
Sales
5.5
4.9
1.6
4.4
16.4
Redemptions
(11.3
)
(8.2
)
(2.5
)
(2.2
)
(24.2
)
Net sales / (redemptions)
(5.8
)
(3.3
)
(0.9
)
2.2
(7.8
)
Market / FX
(38.5
)
(7.7
)
(6.5
)
(0.8
)
(53.5
)
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
Average AUM by capability
Three months ended
31 Mar
31 Dec
31 Mar
2023
2022
2022
Equities
184.0
171.3
222.9
Fixed Income
63.5
59.0
77.5
Multi-Asset
46.5
45.5
54.5
Quantitative Equities
—
—
31.2
Alternatives
10.5
10.7
10.6
Total
304.5
286.5
396.7
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark (as of
March 31, 2023)
Capability
1-year
3-year
5-year
10-year
Equities
71
%
57
%
52
%
77
%
Fixed Income
27
%
87
%
89
%
95
%
Multi-Asset
94
%
98
%
96
%
99
%
Alternatives
69
%
99
%
100
%
100
%
Total
67
%
70
%
67
%
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.
Performance across all time periods excludes Intech, the sale of
which was completed March 31, 2022. Excluded assets represent 4% of
AUM. Capabilities defined by Janus Henderson.
% of mutual fund AUM in top 2
Morningstar quartiles (as of March 31, 2023)
Capability
1-year
3-year
5-year
10-year
Equities
74
%
55
%
79
%
91
%
Fixed Income
34
%
51
%
69
%
69
%
Multi-Asset
80
%
95
%
95
%
94
%
Alternatives
77
%
16
%
98
%
100
%
Total
70
%
61
%
81
%
90
%
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 March 31,
2023, 56%, 50%, 60%, and 65% of the 189, 178, 172, and 155 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.
FIRST QUARTER 2023 RESULTS BRIEFING INFORMATION
Chief Executive Officer Ali Dibadj and Chief Financial Officer
Roger Thompson will present these results on May 3, 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
605623
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 March 31, 2023, Janus Henderson had
approximately US$311 billion in assets under management, more than
2,000 employees, and offices in 24 cities worldwide. Headquartered
in London, the company is listed on the NYSE and the ASX.
FINANCIAL DISCLOSURES
Condensed consolidated statements of
comprehensive income (unaudited)
Three months ended
31 Mar
31 Dec
31 Mar
(in US$ millions, except per share data
or as noted)
2023
2022
2022
Revenue:
Management fees
414.6
405.6
514.0
Performance fees
(14.9
)
14.3
(8.4
)
Shareowner servicing fees
51.5
51.3
62.4
Other revenue
44.6
44.0
52.0
Total revenue
495.8
515.2
620.0
Operating expenses:
Employee compensation and benefits
140.3
159.4
164.6
Long-term incentive plans
55.5
47.5
51.4
Distribution expenses
112.0
110.0
141.8
Investment administration
11.6
11.8
14.8
Marketing
8.8
6.3
7.4
General, administrative and occupancy
61.1
69.2
73.1
Impairment of goodwill and intangible
assets
—
35.8
—
Depreciation and amortization
6.1
7.4
9.5
Total operating expenses
395.4
447.4
462.6
Operating income
100.4
67.8
157.4
Interest expense
(3.1
)
(3.1
)
(3.2
)
Investment gains (losses), net
17.6
17.3
(32.2
)
Other non-operating income (expense),
net
7.1
4.8
(7.8
)
Income before taxes
122.0
86.8
114.2
Income tax provision
(26.0
)
(5.6
)
(30.7
)
Net income
96.0
81.2
83.5
Net loss (income) attributable to
noncontrolling interests
(8.6
)
(16.2
)
20.1
Net income attributable to JHG
87.4
65.0
103.6
Less: allocation of earnings to
participating stock-based awards
(2.4
)
(2.1
)
(2.6
)
Net income attributable to JHG common
shareholders
85.0
62.9
101.0
Basic weighted-average shares outstanding
(in millions)
160.2
160.1
164.0
Diluted weighted-average shares
outstanding (in millions)
160.4
160.4
164.5
Diluted earnings per share (in
US$)
0.53
0.39
0.61
Reconciliation of non-GAAP financial information
In addition to financial results reported in accordance with
GAAP, we compute certain financial measures using non-GAAP
components, as defined by the SEC. These measures are not in
accordance with, or a substitute for, GAAP, and our financial
measures may be different from non-GAAP financial measures used by
other companies. We have provided a reconciliation of our non-GAAP
components to the most directly comparable GAAP components. The
following are reconciliations of GAAP revenue, operating expenses,
operating income, net income attributable to JHG, and diluted
earnings per share to adjusted revenue, adjusted operating
expenses, adjusted operating income, adjusted net income
attributable to JHG, and adjusted diluted earnings per share.
Three months ended
31 Mar
31 Dec
31 Mar
(in US$ millions, except per share data
or as noted)
2023
2022
2022
Reconciliation of revenue to adjusted
revenue
Revenue
495.8
515.2
620.0
Management fees1
(40.8
)
(39.3
)
(57.0
)
Shareowner servicing fees1
(42.3
)
(42.4
)
(52.2
)
Other revenue1
(28.9
)
(28.3
)
(32.6
)
Adjusted revenue
383.8
405.2
478.2
Reconciliation of operating expenses to
adjusted operating expenses
Operating expenses
395.4
447.4
462.6
Employee compensation and benefits2
(1.2
)
(16.8
)
—
Long-term incentive plans2
(2.5
)
(2.1
)
(13.0
)
Distribution expenses1
(112.0
)
(110.0
)
(141.8
)
General, administration and occupancy2
(1.0
)
(0.2
)
(6.5
)
Impairment of goodwill and intangible
assets3
—
(35.8
)
—
Depreciation and amortization3
(0.5
)
(0.5
)
(1.9
)
Adjusted operating expenses
278.2
282.0
299.4
Adjusted operating income
105.6
123.2
178.8
Operating margin
20.3
%
13.2
%
25.4
%
Adjusted operating margin
27.5
%
30.4
%
37.4
%
Reconciliation of net income
attributable to JHG to adjusted net income attributable to
JHG
Net income attributable to JHG
87.4
65.0
103.6
Employee compensation and benefits2
1.2
16.8
—
Long-term incentive plans2
2.5
2.1
13.0
General, administration and occupancy2
1.0
0.2
6.5
Impairment of goodwill and intangible
assets3
—
35.8
—
Depreciation and amortization3
0.5
0.5
1.9
Investment gains, net4
—
0.4
—
Other non-operating income, net4
—
0.1
7.5
Income tax provision5
(1.3
)
(18.9
)
(6.7
)
Adjusted net income attributable to
JHG
91.3
102.0
125.8
Less: allocation of earnings to
participating stock-based awards
(2.5
)
(3.4
)
(3.2
)
Adjusted net income attributable to JHG
common shareholders
88.8
98.6
122.6
Weighted-average diluted common shares
outstanding – diluted (two class) (in millions)
160.4
160.4
164.5
Diluted earnings per share (two class)
(in US$)
0.53
0.39
0.61
Adjusted diluted earnings per share
(two class) (in US$)
0.55
0.61
0.75
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 and rent expense for subleased
office space. Adjustments for the three months ended December 31,
2022, also include redundancy payments associated with the
reduction in force. Adjustments for the three months ended March
31, 2022, also include deal costs associated with the sale of
Intech. 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.
Adjustments for the three months ended December 31, 2022, also
include impairment charges of certain mutual fund investment
management contracts, client relationships, and trademarks. JHG
management believes these non-cash and acquisition-related costs
are not representative of our ongoing operations.
4
Adjustments for the three months ended
March 31, 2022, consist primarily of a one-time charge related to
the sale of Intech. JHG management believes this cost is 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)
31 Mar
31 Dec
(in US$ millions)
2023
2022
Assets:
Cash and cash equivalents
843.5
1,162.3
Investment securities
388.2
261.6
Property, equipment and software, net
49.8
51.8
Intangible assets and goodwill, net
3,691.9
3,667.8
Assets of consolidated variable interest
entities
486.4
352.0
Other assets
896.3
742.3
Total assets
6,356.1
6,237.8
Liabilities, redeemable noncontrolling
interests and equity:
Long-term debt
306.8
307.5
Deferred tax liabilities, net
576.4
574.6
Liabilities of consolidated variable
interest entities
3.9
4.3
Other liabilities
693.6
754.9
Redeemable noncontrolling interests
384.7
233.9
Total equity
4,390.7
4,362.6
Total liabilities, redeemable
noncontrolling interests and equity
6,356.1
6,237.8
Condensed consolidated statements of
cash flows (unaudited)
Three months ended
31 Mar
31 Dec
31 Mar
(in US$ millions)
2023
2022
2022
Cash provided by (used for):
Operating activities
(108.2
)
146.0
(57.5
)
Investing activities
(235.1
)
(52.5
)
(16.9
)
Financing activities
13.8
(3.9
)
(214.8
)
Effect of exchange rate changes
15.4
51.1
(16.0
)
Net change during period
(314.1
)
140.7
(305.2
)
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
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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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