8-K
JANUS HENDERSON GROUP PLC (JHG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2021
Commission File Number 001-38103
JANUS HENDERSON GROUP PLC
(Exact name of registrant as specified in its charter)
| | |
|---|---|
| Jersey , Channel Islands(State or other jurisdiction of<br>incorporation or organization) | 98-1376360<br>(I.R.S. Employer<br>Identification No.) |
| 201 Bishopsgate ****<br><br>London, United Kingdom<br>(Address of principal executive offices) | EC2M3AE<br>(Zip Code) |
+44 **** (0) 20 **** 7818 1818
(Registrant’s telephone number, including area code)
N/A(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $1.50 Per Share Par Value | JHG | New York Stock Exchange |
| | |
|---|---|
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition.
On October 28, 2021, JHG issued a press release reporting its financial results for the third quarter 2021. Copies of that press release and the earnings presentation are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished herewith.
| | | |
|---|---|---|
| Exhibit<br>Number | Description | |
| 99.1 | | Janus Henderson Group plc press release reporting its financial results for the third quarter 2021. |
| 99.2 | | Janus Henderson Group plc third quarter 2021 earnings presentation. |
| 104 | | Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | |
|---|---|---|
| | Janus Henderson Group plc | |
| | | |
| Date: October 28, 2021 | By: | /s/ Roger Thompson |
| | | Roger Thompson |
| | | Chief Financial Officer |
3
Exhibit 99.1
Janus Henderson Group plc Reports Third Quarter 2021 Diluted EPS of US$1.14,
or US$1.16 on an Adjusted Basis
| ● | Solid investment performance, with 72%, 64%, 67% and 86% of assets under management (‘AUM’) outperforming relevant benchmarks on a one-, three-, five- and 10-year basis, respectively, as at 30 September 2021 |
|---|---|
| ● | Third quarter 2021 operating income was US$248.3 million; third quarter 2021 adjusted operating income of US$253.0 million increased 56% compared to the same period a year ago |
| --- | --- |
| ● | AUM of US$419.3 billion decreased 2% compared to the prior quarter, primarily due to net outflows of US$(5.2) billion which were concentrated in Quantitative Equities |
| --- | --- |
| ● | Completed US$75.0 million of share buybacks during the third quarter |
| --- | --- |
| ● | Board declared quarterly dividend of US$0.38 per share |
| --- | --- |
LONDON — Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’) published its third quarter 2021 results for the period ended 30 September 2021.
Third quarter 2021 operating income was US$248.3 million compared to US$225.0 million in the second quarter 2021 and US$156.5 million in the third quarter 2020. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, was US$253.0 million in the third quarter 2021 compared to US$269.3 million in the second quarter 2021 and US$162.1 million in the third quarter 2020.
Third quarter 2021 diluted earnings per share of US$1.14 increased 44% compared to US$0.79 in the second quarter 2021 and increased 75% compared to US$0.65 in the third quarter 2020. Adjusted diluted earnings per share of US$1.16 in the third quarter 2021 was flat versus US$1.16 in the second quarter 2021 and increased 66% compared to US$0.70 in the third quarter 2020.
Dick Weil, Chief Executive Officer of Janus Henderson Group plc, stated:
“Third quarter financial results were strong with adjusted operating income of US$253.0 million and adjusted diluted EPS of US$1.16 up 56% and 66%, respectively, from one year ago, demonstrating the operating leverage in our business.
“We have made significant progress delivering our strategy of Simple Excellence, which is resulting in momentum building across the business. We have a strong foundation, and the progress we have made allows us to take advantage of trends that our clients are asking us to support them on. We expect this to result in the delivery of growth through organic and inorganic opportunities that accentuate our distribution excellence, our investment expertise and our differentiated operating platform.” Page | 1
SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ 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 | | ||||
| | | 30 Sep | | 30 Jun | | 30 Sep | |
| | **** | 2021 | **** | 2021 | **** | 2020 | |
| GAAP basis: | | ||||||
| Revenue | 687.4 | 738.4 | 568.5 | ||||
| Operating expenses | 439.1 | 513.4 | 412.0 | ||||
| Operating income | 248.3 | 225.0 | 156.5 | ||||
| Operating margin | 36.1 | % | 30.5 | % | 27.5 | % | |
| Net income attributable to JHG | 196.8 | 137.3 | 118.9 | ||||
| Diluted earnings per share | 1.14 | 0.79 | 0.65 | ||||
| | | | | | | | |
| Adjusted basis: | | | | | |||
| Revenue | 545.3 | 603.6 | 449.7 | ||||
| Operating expenses | 292.3 | 334.3 | 287.6 | ||||
| Operating income | 253.0 | 269.3 | 162.1 | ||||
| Operating margin | 46.4 | % | 44.6 | % | 36.0 | % | |
| Net income attributable to JHG | 199.5 | 200.5 | 129.6 | ||||
| Diluted earnings per share | 1.16 | 1.16 | 0.70 |
DIVIDEND AND SHARE BUYBACK
On 27 October 2021, the Board declared a third quarter dividend in respect of the three months ended 30 September 2021 of US$0.38 per share. Shareholders on the register on the record date of 8 November 2021 will be paid the dividend on 24 November 2021. Janus Henderson does not offer a dividend reinvestment plan.
As part of the US$200 million on-market buyback programme approved by the Board in July 2021, JHG purchased approximately 1.8 million of its ordinary shares on the NYSE and its CHESS Depositary Interests (CDIs) on the ASX in the third quarter, for a total outlay of US$75.0 million.
Net tangible assets per share
| | | | |
|---|---|---|---|
| US | 30 Sep 2021 | **** | 31 Dec 2020 |
| Net tangible assets / (liabilities) per ordinary share | 3.93 | 3.68 |
All values are in US Dollars.
Net tangible assets are defined by the ASX as being total assets less intangible assets less total liabilities ranking ahead of, or equally with, claims of ordinary shares.
Page | 2
AUM AND FLOWS (in US$ 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 | ||||
| | | 30 Sep | | 30 Jun | | 30 Sep |
| | **** | 2021 | **** | 2021 | **** | 2020 |
| Opening AUM | **** | 427.6 | **** | 405.1 | **** | 336.7 |
| Sales | 16.0 | 18.4 | 15.8 | |||
| Redemptions | (21.2) | (20.9) | (18.7) | |||
| Net sales / (redemptions) | (5.2) | (2.5) | (2.9) | |||
| Market / FX | (3.1) | 25.0 | 24.5 | |||
| Closing AUM | **** | 419.3 | **** | 427.6 | **** | 358.3 |
Quarterly AUM and flows by capability
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | | **** | Fixed | **** | | **** | Quantitative | **** | | **** | |
| | | Equities | | Income | | Multi-Asset | | Equities | | Alternatives | | Total |
| 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 | |
| Sales | 8.6 | 5.9 | 2.4 | 0.2 | 1.3 | 18.4 | ||||||
| Redemptions | (10.5) | (6.0) | (1.9) | (1.5) | (1.0) | (20.9) | ||||||
| Net sales / (redemptions) | (1.9) | (0.1) | 0.5 | (1.3) | 0.3 | (2.5) | ||||||
| Market / FX | 17.1 | 1.1 | 3.2 | 3.4 | 0.2 | 25.0 | ||||||
| AUM 30 Jun 2021 | 240.1 | **** | 80.5 | **** | 53.2 | **** | 43.4 | **** | 10.4 | **** | 427.6 | |
| Sales | 7.5 | 4.7 | 2.6 | 0.1 | 1.1 | 16.0 | ||||||
| Redemptions | (10.1) | (4.0) | (1.8) | (4.5) | (0.8) | (21.2) | ||||||
| Net sales / (redemptions) | (2.6) | 0.7 | 0.8 | (4.4) | 0.3 | (5.2) | ||||||
| Market / FX | (1.3) | (1.7) | (0.1) | 0.1 | (0.1) | (3.1) | ||||||
| AUM 30 Sep 2021 | 236.2 | **** | 79.5 | **** | 53.9 | **** | 39.1 | **** | 10.6 | **** | 419.3 | |
| | | | | | | | | | | | | |
Average AUM
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Three months ended | ||||
| | | 30 Sep | | 30 Jun | | 30 Sep |
| | **** | 2021 | **** | 2021 | **** | 2020 |
| Equities | 243.5 | 235.3 | 188.5 | |||
| Fixed Income | 80.9 | 80.7 | 74.8 | |||
| Multi-Asset | 54.9 | 51.8 | 42.7 | |||
| Quantitative Equities | 41.9 | 42.9 | 40.0 | |||
| Alternatives | 10.7 | 10.1 | 10.0 | |||
| Total | 431.9 | 420.8 | 356.0 |
Page | 3
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark (at 30 September 2021)
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| Capability | **** | 1-year | **** | 3-year | **** | 5-year | **** | 10-year | **** |
| Equities | 64 | % | 56 | % | 60 | % | 84 | % | |
| Fixed Income | 98 | % | 96 | % | 96 | % | 99 | % | |
| Multi-Asset | 99 | % | 97 | % | 97 | % | 97 | % | |
| Quantitative Equities | 41 | % | 2 | % | 2 | % | 32 | % | |
| Alternatives | 94 | % | 97 | % | 100 | % | 100 | % | |
| Total | 72 | % | 64 | % | 67 | % | 86 | % |
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 30 September 2021. Capabilities defined by Janus Henderson.
% of mutual fund AUM in top 2 Morningstar quartiles (at 30 September 2021)
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| Capability | **** | 1-year | **** | 3-year | **** | 5-year | **** | 10-year | **** |
| Equities | 47 | % | 47 | % | 49 | % | 68 | % | |
| Fixed Income | 84 | % | 77 | % | 73 | % | 69 | % | |
| Multi-Asset | 20 | % | 92 | % | 92 | % | 94 | % | |
| Quantitative Equities | 11 | % | 11 | % | 11 | % | 0 | % | |
| Alternatives | 27 | % | 70 | % | 74 | % | 98 | % | |
| Total | 47 | % | 59 | % | 60 | % | 73 | % |
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. For the 1-, 3-, 5- and 10-year periods ending 30 September 2021, 46%, 54%, 50% and 61% of the 195, 185, 180 and 150 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.
FOURTH QUARTER AND FULL-YEAR 2021 RESULTS
Janus Henderson intends to publish its fourth quarter and full-year 2021 results on 3 February 2022. Page | 4
THIRD QUARTER 2021 RESULTS BRIEFING INFORMATION
Chief Executive Officer Dick Weil and Chief Financial Officer Roger Thompson will present these results on 28 October 2021 on a conference call and webcast to be held at 8am EDT, 1pm BST, 11pm AEDT.
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 | 10160342 |
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 30 September 2021, Janus Henderson had approximately US$419 billion in assets under management, more than 2,000 employees, and offices in 25 cities worldwide. Headquartered in London, the company is listed on the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).
| | | |
|---|---|---|
| Investor enquiries: | | Media enquiries: |
| Jim Kurtz | | Stephen Sobey |
| Co-Head Investor Relations (US)<br>+1 303 336 4529 | | Head of Media Relations<br><br>+44 (0)20 7818 2523 |
| jim.kurtz@janushenderson.com | | stephen.sobey@janushenderson.com |
| | | |
| Melanie Horton | | Sarah Johnson |
| Co-Head Investor Relations (Non-US) | | Director, Media Relations & Corp Comms |
| +44 (0)20 7818 2905 | | +1 720 364 0708 |
| melanie.horton@janushenderson.com | | sarah.johnson@janushenderson.com |
| | | |
| Or | | United Kingdom: Edelman Smithfield |
| | | Latika Shah |
| Investor Relations | | +44 (0)7950 671 948 |
| investor.relations@janushenderson.com | | 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 |
| | | |
| | | |
| | | |
| | | |
Page | 5
FINANCIAL DISCLOSURES
Condensed consolidated statements of comprehensive income (unaudited)
| | | | | | |
|---|---|---|---|---|---|
| | Three months ended | ||||
| | 30 Sep | | 30 Jun | | 30 Sep |
| (in US millions, except per share data or as noted) | 2021 | **** | 2021 | **** | 2020 |
| Revenue: | | | | | |
| Management fees | 564.5 | 544.1 | 457.7 | ||
| Performance fees | 0.6 | 77.4 | 7.0 | ||
| Shareowner servicing fees | 67.6 | 64.0 | 53.7 | ||
| Other revenue | 54.7 | 52.9 | 50.1 | ||
| Total revenue | 687.4 | **** | 738.4 | **** | 568.5 |
| | | | | | |
| Operating expenses: | | | | | |
| Employee compensation and benefits | 166.2 | 192.4 | 154.9 | ||
| Long-term incentive plans | 35.0 | 49.8 | 42.7 | ||
| Distribution expenses | 142.1 | 134.8 | 118.8 | ||
| Investment administration | 13.0 | 13.1 | 13.1 | ||
| Marketing | 7.5 | 6.7 | 5.3 | ||
| General, administrative and occupancy | 65.5 | 65.7 | 65.6 | ||
| Impairment of goodwill and intangible assets | — | | 40.8 | | — |
| Depreciation and amortisation | 9.8 | 10.1 | 11.6 | ||
| Total operating expenses | 439.1 | **** | 513.4 | **** | 412.0 |
| | | | | | |
| Operating income | 248.3 | **** | 225.0 | **** | 156.5 |
| | | | | | |
| Interest expense | (3.2) | (3.2) | (3.2) | ||
| Investment gains, net | 4.7 | 1.8 | 25.5 | ||
| Other non-operating income (expense), net | 3.6 | (2.7) | (0.9) | ||
| Income before taxes | 253.4 | 220.9 | 177.9 | ||
| Income tax provision | (53.3) | (79.7) | (40.8) | ||
| Net income | 200.1 | 141.2 | 137.1 | ||
| Net income attributable to noncontrolling interests | (3.3) | (3.9) | (18.2) | ||
| Net income attributable to JHG | 196.8 | **** | 137.3 | **** | 118.9 |
| Less: allocation of earnings to participating stock-based awards | (5.4) | (3.9) | (3.5) | ||
| Net income attributable to JHG common shareholders | 191.4 | **** | 133.4 | **** | 115.4 |
| | | | | | |
| Basic weighted-average shares outstanding (in millions) | 167.1 | 167.6 | 178.4 | ||
| Diluted weighted-average shares outstanding (in millions) | 167.8 | 168.1 | 178.8 | ||
| | | | | | |
| Diluted earnings per share (in US) | 1.14 | 0.79 | 0.65 |
All values are in US Dollars.
Page | 6
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 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 Sep | | 30 Jun | | 30 Sep | |
| (in US millions, except per share data or as noted) | 2021 | **** | 2021 | **** | 2020 | |
| Reconciliation of revenue to adjusted revenue | | | | | | |
| Revenue | 687.4 | 738.4 | 568.5 | |||
| Management fees1 | (53.0) | | (49.6) | | (47.9) | |
| Shareowner servicing fees1 | (55.4) | | (53.1) | | (42.8) | |
| Other revenue1 | (33.7) | (32.1) | (28.1) | |||
| Adjusted revenue | 545.3 | 603.6 | 449.7 | |||
| | | | | | | |
| Reconciliation of operating expenses to adjusted operating expenses | | |||||
| Operating expenses | 439.1 | 513.4 | 412.0 | |||
| Employee compensation and benefits2 | — | — | (0.3) | |||
| Long-term incentive plans2 | 0.1 | 0.1 | 0.1 | |||
| Distribution expenses1 | (142.1) | | (134.8) | | (118.8) | |
| General, administration and occupancy2 | (2.9) | (1.7) | (3.5) | |||
| Impairment of goodwill and intangible assets3 | — | (40.8) | — | | ||
| Depreciation and amortisation3 | (1.9) | (1.9) | (1.9) | |||
| Adjusted operating expenses | 292.3 | 334.3 | 287.6 | |||
| | | | | | | |
| Adjusted operating income | 253.0 | 269.3 | 162.1 | |||
| | | | | | | |
| Operating margin | 36.1 | % | 30.5 | % | 27.5 | % |
| Adjusted operating margin | 46.4 | % | 44.6 | % | 36.0 | % |
| | | | | | | |
| Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG | ||||||
| Net income attributable to JHG | 196.8 | 137.3 | 118.9 | |||
| Employee compensation and benefits2 | — | — | 0.3 | |||
| Long-term incentive plans2 | (0.1) | (0.1) | (0.1) | |||
| General, administration and occupancy2 | 2.9 | 1.7 | 3.5 | |||
| Impairment of goodwill and intangible assets3 | — | 40.8 | — | |||
| Depreciation and amortisation3 | 1.9 | 1.9 | 1.9 | |||
| Other non-operating income (expense), net4 | (1.6) | (1.7) | (0.5) | |||
| Income tax benefit (provision)5 | (0.4) | 20.6 | 5.6 | |||
| Adjusted net income attributable to JHG | 199.5 | **** | 200.5 | **** | 129.6 | **** |
| Less: allocation of earnings to participating stock-based awards | (5.5) | (5.7) | (3.8) | |||
| Adjusted net income attributable to JHG common shareholders | 194.0 | **** | 194.8 | **** | 125.8 | **** |
| | | | | | | |
| Weighted-average diluted common shares outstanding – diluted (two class) (in millions) | 167.8 | 168.1 | 178.8 | |||
| Diluted earnings per share (two class) (in US) | 1.14 | **** | 0.79 | **** | 0.65 | **** |
| Adjusted diluted earnings per share (two class) (in US) | 1.16 | **** | 1.16 | **** | 0.70 | **** |
All values are in US Dollars.
| 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. |
|---|
Page | 7
| 2 | Adjustments primarily represent rent expense for subleased office space. In addition, the adjustment for the three months ended 30 September 2021 includes a one-time charge related to the employee benefits trust. 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 for the three months ended 30 June 2021 also include impairment charges of certain mutual fund investment management agreements. 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. 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. Adjustments for the three months ended 30 June 2021 include a non-cash deferred tax expense of US$31.0 million due to the enactment of Finance Act 2021 during the second quarter 2021. |
| --- | --- |
Condensed consolidated balance sheets (unaudited)
| | | | |
|---|---|---|---|
| | 30 Sep | | 31 Dec |
| (in US millions) | 2021 | **** | 2020 |
| Assets: | |||
| Cash and cash equivalents | 933.1 | | 1,099.7 |
| Investment securities | 445.2 | | 268.1 |
| Property, equipment and software, net | 63.7 | | 77.9 |
| Intangible assets and goodwill, net | 3,991.7 | | 4,070.2 |
| Assets of consolidated variable interest entities | 258.8 | | 226.5 |
| Other assets | 1,010.7 | | 948.4 |
| Total assets | 6,703.2 | **** | 6,690.8 |
| | | | |
| Liabilities, redeemable noncontrolling interests and equity: | |||
| Long-term debt | 311.1 | | 313.3 |
| Deferred tax liabilities, net | 644.7 | | 627.4 |
| Liabilities of consolidated variable interest entities | 2.9 | | 3.2 |
| Other liabilities | 937.2 | | 927.3 |
| Redeemable noncontrolling interests | 145.1 | | 85.8 |
| Total equity | 4,662.2 | | 4,733.8 |
| Total liabilities, redeemable noncontrolling interests and equity | 6,703.2 | | 6,690.8 |
All values are in US Dollars.
Condensed consolidated statements of cash flows (unaudited)
| | | | | | |
|---|---|---|---|---|---|
| | Three months ended | ||||
| | 30 Sep | | 30 Jun | | 30 Sep |
| (in US millions) | 2021 | **** | 2021 | **** | 2020 |
| Cash provided by (used for): | |||||
| Operating activities | 319.4 | | 269.0 | | 183.0 |
| Investing activities | (222.9) | | (66.3) | | 135.0 |
| Financing activities | (112.9) | | (62.0) | | (291.2) |
| Effect of exchange rate changes | (16.3) | | — | | 19.3 |
| Net change during period | (32.7) | | 140.7 | | 46.1 |
All values are in US Dollars.
Page | 8
STATUTORY DISCLOSURES
Associates and joint ventures
At 30 September 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.
Page | 9
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.
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Page | 10
Exhibit 99.2
| Thursday 28 October 2021<br>THIRD QUARTER 2021 RESULTS<br>Dick Weil<br>Chief Executive Officer<br>Roger Thompson<br>Chief Financial Officer |
|---|
| STRATEGY UPDATE<br>Dick Weil<br>Chief Executive Officer |
| --- |
| 3<br>OUR STRATEGY: SIMPLE EXCELLENCE<br>Strengthening our core foundation while maximising growth potential<br>Delivering on our strategy of Simple Excellence<br>Produce<br>dependable<br>investment<br>outcomes<br>Excel in<br>distribution<br>and client<br>experience<br>Develop<br>new growth<br>initiatives<br>Focus and<br>increase<br>operational<br>efficiency<br>Proactive risk<br>and control<br>environment<br>Positive flows and AUM growth Revenue stability and profitability<br>A return to consistent<br>net inflows driven<br>by organic growth<br>across regions,<br>client types and<br>investment capabilities<br>A growing and<br>diversified AUM and<br>client base, able to<br>weather shifting<br>market environments<br>Revenue stability<br>resulting from a<br>focus on profitable<br>growth, recognising<br>changing investor trends<br>globally<br>A balanced approach<br>to managing costs,<br>allowing for investment,<br>expanded profitability and<br>increased cash<br>flow generation<br>Simple Excellence lays the foundation for sustained organic and inorganic growth<br>to create value for all our stakeholders: our clients, shareholders and employees |
| --- |
| 4<br>33.5% 36.0% 43.8% 39.0% 44.6% 46.4%<br>20.6% 27.5% 34.5% 29.9% 30.5% 36.1%<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>Adjusted operating margin<br>Operating margin<br>MOMENTUM IN RESULTS<br>✓ Solid investment performance forms the<br>foundation for growing distribution<br>momentum across our global footprint<br>✓ Strong distribution momentum with<br>improving net flows in our core business<br>and new product extensions and launches<br>Growing distribution momentum<br>✓ Resilient revenue profile supported by<br>strong growth in higher-fee products<br>and global marketplaces<br>✓ Operating leverage driven by revenue<br>growth supported by ongoing focus on<br>expenses<br>✓ Disciplined use of capital, with ongoing<br>returns to shareholders and flexibility to<br>pursue growth<br>✓ The accretive buyback programme has<br>resulted in a 15% reduction in shares<br>outstanding since 2018<br>We have built a globally diversified, highly profitable and cash-generative business<br>Resilient, high-margin financial profile<br>Strong capital position and return<br>(6%) (6%) (7%) (6%) (7%)<br>(5%)<br>(2%)<br>(1%) (0%)<br>Q3<br>2019<br>Q4<br>2019<br>Q1<br>2020<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>1 Last twelve months (LTM) net organic growth rates calculated as net flows as a percentage of beginning period AUM.<br>2 See adjusted financial measures reconciliation on slide 31 for additional information.<br>45.7 45.8 45.9<br>46.8 47.1 47.0<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>LTM1 net organic growth excluding Quantitative Equity<br>Net management fee rate (bps)<br>2018 to 2021 YTD capital return (US$m)<br>Operating margins2<br>275 272 263 192<br>100 200 131 305<br>375 472 394 497<br>56%<br>102%<br>61% 81%<br>2018 2019 2020 2021 YTD<br>Dividends Share repurchases Capital return as % of cash flow from operations |
| --- |
| 5<br>WELL-POSITIONED FOR GROWTH<br>Building on Simple Excellence as a foundation for new growth initiatives<br>Trends across our strategic focus areas<br>We are well-positioned to execute on our growth strategy<br>▪ Global adoption of ESG and<br>sustainable investing<br>▪ Accelerating growth, expanding<br>distribution channels for active ETFs<br>▪ Increasing importance of high-growth<br>emerging markets (Asia, LatAm)<br>▪ Structural tailwinds driving growth in<br>high-quality income and alternatives<br>▪ Customisation redefining portfolio<br>solutions delivery<br>▪ The emergence of digital assets<br>and blockchain technology<br> Strong financial position and cash<br>generation to invest in growth<br> Client-centric culture rooted in<br>collaboration and Simple Excellence<br> Independent, globally-diversified,<br>active investment manager<br> Track record of excellence across equity,<br>fixed income and multi-asset capabilities |
| --- |
| BUSINESS AND FINANCIAL UPDATE<br>Roger Thompson<br>Chief Financial Officer |
| --- |
| 7<br>1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on slide 25.<br>2 See adjusted financial measures reconciliation on slides 31 and 32 for additional information.<br>Key metrics – Q3 2021 vs Q2 2021<br>Q3 2021 RESULTS<br>▪ Long-term investment performance<br>remains solid<br>▪ AUM declined 2% to US$419.3bn,<br>due primarily to net outflows of<br>US$(5.2)bn which were<br>concentrated in Quantitative<br>Equities<br>▪ Adjusted diluted EPS of US$1.16<br>is flat to prior quarter and an<br>increase of 66% versus Q3 2020<br>▪ Declared US$0.38 per share<br>dividend and completed US$75m<br>of share buybacks<br>Q3 2021 Q2 2021<br>3-year investment<br>outperformance¹ 64% 66%<br>Net flows US$(5.2)bn US$(2.5)bn<br>Total AUM US$419.3bn US$427.6bn<br>US GAAP diluted EPS US$1.14 US$0.79<br>Adjusted diluted EPS² US$1.16 US$1.16<br>Dividend per share US$0.38 US$0.38 |
| --- |
| 8<br>INVESTMENT PERFORMANCE<br>Note: Full performance disclosures detailed in the appendix on slides 25 and 26.<br>The top two Morningstar quartiles represent funds in the top half of their category based on total return. The top quartile represents those in the top 25%.<br>Refer to slide 26 for the percent of funds in the top 2 quartiles for all periods and description and quantity of funds included in the analysis; refer to slides 27<br>to 29 for distribution across first and second quartiles.<br>Past performance is no guarantee of future results.<br>Capability 1-year 3-year 5-year 10-year<br>Equities<br>Fixed<br>Income<br>Multi-Asset<br>Quantitative<br>Equities<br>Alternatives<br>Total<br>Capability 1-year 3-year 5-year 10-year<br>Equities<br>Fixed<br>Income<br>Multi-Asset<br>Quantitative<br>Equities<br>Alternatives<br>Total<br>% of mutual fund AUM in top 2 Morningstar quartiles<br>As at 30 Sep 21<br>% of AUM outperforming benchmark<br>As at 30 Sep 21<br>41% 2% 2%<br>67% 64% 72%<br>100% 97% 94%<br>97% 97% 99%<br>96% 96% 98%<br>60% 56% 64%<br>11% 11% 11%<br>60% 59% 47%<br>74% 70% 27%<br>92% 92% 20%<br>73% 77% 84%<br>49% 47% 47%<br>▪ 47% and 45% of mutual fund AUM is in the top Morningstar quartile on a 3- and 5-year basis,<br>respectively, as at 30 September 2021<br>Long-term investment performance remains solid<br>32%<br>86%<br>100%<br>97%<br>99%<br>84%<br>0%<br>73%<br>98%<br>94%<br>69%<br>68% |
| --- |
| 9<br>15.3 18.7 21.4 17.9 15.8<br>23.2 20.7 18.4 16.0<br>(18.8)<br>(25.4)<br>(33.6)<br>(26.1)<br>(18.7)<br>(24.3) (24.0) (20.9) (21.2)<br>(3.5) (6.7)<br>(12.2) (8.2)<br>(2.9) (1.1) (3.3) (2.5) (5.2)<br>Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Q3 2019 to Q3 2021 total flows<br>(US$bn)<br>Redemptions Sales Net sales / (redemptions)<br>17% 21% 23% 25% 19% 26% 21% 18% 15%<br>Annualised gross sales¹<br>Annualised gross redemptions¹<br>1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>TOTAL FLOWS<br>Net flows declined quarter over quarter with a decrease in gross sales<br>(21%) (29%) (36%) (36%) (22%) (27%) (24%) (21%) (20%) |
| --- |
| 10<br>3.7<br>8.8<br>3.3 4.2 2.5<br>(5.6)<br>(10.0)<br>(6.8) (6.0)<br>(8.3)<br>(1.9) (1.2) (3.5) (1.8)<br>(5.8)<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>11.5 13.5<br>16.5<br>13.5 12.9<br>(11.6) (12.5)<br>(15.4) (13.5) (11.7)<br>(0.1)<br>1.0 1.1<br>- 1.2<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>0.6 0.9 0.9 0.7 0.6<br>(1.5) (1.8) (1.8) (1.4) (1.2)<br>(0.9) (0.9) (0.9) (0.7) (0.6)<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>Intermediary<br>(US$bn)<br>1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>QUARTERLY FLOWS BY CLIENT TYPE<br>Redemptions Sales Net sales / (redemptions)<br>Institutional<br>(US$bn)<br>13% 30% 11% 13% 7% 29% 32% 35% 28% 25% 4% 5% 4% 4% 3%<br>(20%) (34%) (22%) (19%) (25%) (29%) (29%) (32%) (28%) (23%) (9%) (10%) (9%) (7%) (6%)<br>Annualised gross redemptions¹<br>Annualised gross sales¹<br>Self-Directed<br>(US$bn)<br>Net flows reflect improvement in Intermediary and a decline in Institutional |
| --- |
| 11<br>1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>Q3 2021 FLOWS BY CAPABILITY<br>Net flows reflect strength in Fixed Income, Multi-Asset and Alternatives<br>7.5<br>4.7 2.6<br>0.1<br>1.1<br>(10.1)<br>(4.0)<br>(1.8)<br>(4.5)<br>(0.8)<br>(2.6)<br>0.7 0.8<br>(4.4)<br>0.3<br>Equities Fixed Income Multi-Asset Quantitative<br>Equities<br>Alternatives<br>Annualised gross sales¹ Redemptions Sales Net sales / (redemptions)<br>12% 23% 20% 1% 42%<br>Annualised gross redemptions¹<br>(17%) (19%) (14%) (41%) (30%)<br>Q3 2021 flows by capability<br>(US$bn) |
| --- |
| 12<br>US GAAP Adjustments Adjusted<br>Revenue<br>Management fees 564.5 (53.0) 511.5<br>Performance fees 0.6 – 0.6<br>Shareowner servicing fees 67.6 (55.4) 12.2<br>Other revenue 54.7 (33.7) 21.0<br>Total revenue 687.4 (142.1) 545.3<br>Operating expenses<br>Employee compensation and benefits 166.2 – 166.2<br>Long-term incentive plans 35.0 0.1 35.1<br>Distribution expenses 142.1 (142.1) –<br>Investment administration 13.0 – 13.0<br>Marketing 7.5 – 7.5<br>General, administrative and occupancy 65.5 (2.9) 62.6<br>Depreciation and amortisation 9.8 (1.9) 7.9<br>Total operating expenses 439.1 (146.8) 292.3<br>Operating income 248.3 4.7 253.0<br>(US$m)<br>3 months ended 30 Sep 21<br>STATEMENT OF INCOME<br>US GAAP and adjusted<br>Note: See adjusted financial measures reconciliation on slides 31 and 32 for additional information. |
| --- |
| 13<br>(US$, except margin data) Q3 2021 Q2 2021<br>Change<br>Q3 2021 vs<br>Q2 2021 Q3 2020<br>Change<br>Q3 2021 vs<br>Q3 2020<br>Average AUM 431.9bn 420.8bn 3% 356.0bn 21%<br>Total revenue 687.4m 738.4m (7%) 568.5m 21%<br>Operating income 248.3m 225.0m 10% 156.5m 59%<br>Operating margin 36.1% 30.5% 5.6ppt 27.5% 8.6ppt<br>US GAAP diluted EPS 1.14 0.79 44% 0.65 75%<br>Adjusted revenue 545.3m 603.6m (10%) 449.7m 21%<br>Adjusted operating income 253.0m 269.3m (6%) 162.1m 56%<br>Adjusted operating margin 46.4% 44.6% 1.8ppt 36.0% 10.4ppt<br>Adjusted diluted EPS 1.16 1.16 0% 0.70 66%<br>SUMMARY FINANCIAL RESULTS<br>US GAAP and adjusted<br>Note: See adjusted financial measures reconciliation on slides 31 and 32 for additional information. |
| --- |
| 14<br>REVENUE<br>Q3 2021 adjusted revenue reflects higher average assets and seasonally<br>lower performance fees<br>Note: See adjusted financial measures reconciliation on slides 31 and 32 for additional information.<br>1 Net margin based on management fees net of distribution expenses.<br>Adjusted revenue – Q2 2021 vs Q3 2021<br>(US$m)<br>Q3 2021 adjusted revenue drivers<br>▪ Increase from Q2 2021 management fees driven<br>by higher average assets<br>▪ Performance fees declined from Q2 2021 driven<br>by investment performance and seasonality<br>▪ Average net management fee margin declined<br>due to asset mix shift<br>511.5 494.5<br>0.6<br>77.4 12.2<br>10.9<br>21.0<br>20.8 545.3<br>603.6<br>Q3 2021 Q2 2021<br>Management fees<br>Performance fees<br>Shareowner servicing fees<br>Other revenue<br>(US$m, except margin data) Q3 2021 Q2 2021 Change<br>Total adjusted revenue 545.3 603.6 (10%)<br>Management fees 511.5 494.5 3%<br>Performance fees 0.6 77.4 (99%)<br>Shareowner servicing fees 12.2 10.9 12%<br>Other revenue 21.0 20.8 1%<br>Average net¹ mgmt fee margin 47.0bps 47.1bps (0.1bps) |
| --- |
| 15<br>▪ Decrease in compensation expense primarily<br>due to variable compensation and long-term<br>incentive compensation<br>▪ Full-year 2021 expense expectations<br>▪ Adjusted compensation ratio now at the low<br>end of the 40-42% range<br>▪ Adjusted non-compensation annual growth<br>at the high end of the mid-single digits<br>▪ Statutory tax rate of 23-25%<br>OPERATING EXPENSES<br>Note: See adjusted financial measures reconciliation on slides 31 and 32 for additional information.<br>Adjusted operating expenses – Q2 2021 vs Q3 2021<br>(US$m)<br>292.3<br>(26.2)<br>(14.8) (0.1) (1.4) (0.3)<br>334.3<br>0.8<br>Q2 2021 Compensation<br>and benefits<br>LT incentive<br>plans<br>Investment<br>administration<br>Marketing General, admin.<br>and occupancy<br>Depreciation and<br>amortisation<br>Q3 2021<br>(US$m) Q3 2021 Q2 2021 Change<br>Employee comp. and benefits 166.2 192.4 (14%)<br>Long-term incentive plans 35.1 49.9 (30%)<br>Total comp. expenses 201.3 242.3 (17%)<br>Investment administration 13.0 13.1 (1%)<br>Marketing 7.5 6.7 12%<br>General, admin. and occup. 62.6 64.0 (2%)<br>Depreciation and amortisation 7.9 8.2 (4%)<br>Other operating expenses 91.0 92.0 (1%)<br>Total operating expenses 292.3 334.3 (13%)<br>Adjusted expenses reflect lower variable compensation primarily on<br>seasonally lower performance fees<br>Q3 2021 adjusted expense drivers |
| --- |
| 16<br>CAPITAL RESOURCES<br>Strong liquidity position<br>▪ Cash and investment securities1<br>totalled US$1,197m compared to<br>outstanding debt of US$311m<br>▪ Board declared a dividend of US$0.38<br>per share to be paid on 24 November<br>to shareholders on record at the close<br>of business on 8 November<br>▪ Repurchased 1.8m shares in 3Q 2021<br>for US$75m from the US$200m<br>buyback programme authorised in<br>July 2021<br>964.7 930.8<br>235.3 265.9<br>1,200.0 1,196.7<br>311.9 311.1<br>Cash and<br>investments<br>Debt Cash and<br>investments<br>Debt<br>Balance sheet profile – carrying value<br>30 Jun 21 vs 30 Sep 21<br>(US$m)<br>Investment securities¹<br>Cash and cash equivalents¹<br>2025 maturity<br>30 Sep 21 30 Jun 21<br>1 Cash and cash equivalents and investment securities exclude those held by consolidated variable interest entities (‘VIEs’) and voting rights entities (‘VREs’), as they<br>are not available for general corporate purposes. For additional detail, please see ‘Liquidity and Capital Resources’ portion of the Company’s Form 10‐Q for the<br>period ended 30 September 2021. |
| --- |
| Q&A |
| --- |
| APPENDIX |
| --- |
| 19<br>ASSETS UNDER MANAGEMENT<br>AUM as at 30 Sep 2021: US$419.3bn<br>56%<br>19%<br>13%<br>9%<br>3%<br>Equities<br>Fixed Income<br>Multi-Asset<br>Quantitative Equities<br>Alternatives<br>49%<br>30%<br>21%<br>Intermediary<br>Institutional<br>Self-Directed<br>56% 30%<br>14%<br>North America<br>EMEA & LatAm<br>Asia Pacific<br>By client type By capability By client location<br>US$236.2bn<br>US$79.5bn<br>US$53.9bn<br>US$39.1bn<br>US$10.6bn<br>US$206.7bn<br>US$125.8bn<br>US$86.8bn<br>US$233.4bn<br>US$128.1bn<br>US$57.8bn |
| --- |
| 20<br>INVESTMENT MANAGEMENT CAPABILITIES<br>Diversified product range<br>Equities<br>US$236.2bn<br>AUM<br>30 Sep 21<br>US$419.3bn<br>Fixed Income<br>US$79.5bn<br>Multi-Asset<br>US$53.9bn<br>Self-Directed<br>Intermediary<br>Institutional<br>Institutional<br>Institutional<br>Quantitative Equities<br>US$39.1bn<br>Institutional<br>Alternatives<br>US$10.6bn<br>Intermediary<br>Equities<br>▪ Wide range of equity strategies encompassing<br>different geographic focuses and investment<br>styles<br>Fixed Income<br>▪ Innovative and differentiated techniques designed<br>to support clients as they navigate each unique<br>economic cycle<br>Multi-Asset<br>▪ Provides a range of diversified core investment<br>solutions with the aim of delivering attractive<br>returns over the long term with lower levels of<br>volatility<br>Quantitative Equities<br>▪ Intech applies advanced mathematics and<br>systematic portfolio rebalancing intended to<br>harness the volatility of movements in stock<br>prices<br>Alternatives<br>▪ Investment solutions aimed at delivering specific<br>outcomes tailored to meet the needs and<br>constraints of clients |
| --- |
| 21<br>LARGEST STRATEGIES BY CAPABILITY<br>Note: Numbers may not cast due to rounding.<br>Capability Strategy<br>AUM<br>(US$bn)<br>30 Sep 21<br>US Concentrated Growth 29.9<br>US Mid Cap Growth 29.9<br>US Research Growth Equity 21.6<br>Global Life Sciences 14.7<br>US SMID Cap Growth 13.3<br>Absolute Return Income 11.2<br>Global Strategic Fixed Income 10.3<br>Sterling Buy & Maintain Credit 9.3<br>Core Plus Fixed Income 7.1<br>Australian Fixed Income 6.2<br>Balanced 47.5<br>UK Cautious Managed 1.4<br>Global Adaptive Capital Appreciation 0.6<br>Multi Manager Managed 0.5<br>Protective Life Dynamic Allocation Series - Moderate 0.5<br>Intech Global Large Cap Core ex-Japan - ESG 12.1<br>Intech US Enhanced Plus 4.4<br>Intech Global Large Cap Core 4.4<br>Intech Global Enhanced Index ex-Australia ex-Tobacco 1% Risk 2.7<br>Intech US Broad Large Cap Growth 2.1<br>Absolute Return Equity 5.6<br>UK Direct Property 1.5<br>Multi Strategy 0.8<br>Europe Large Cap Long/Short 0.6<br>Global Equity Market Neutral 0.4<br>Total 238.7<br>Equity<br>Fixed Income<br>Multi-Asset<br>Alternatives<br>Quantitative Equities |
| --- |
| 22<br>5.8<br>10.3 10.5<br>8.6 7.5<br>(10.9) (10.4)<br>(12.0) (10.5) (10.1)<br>(5.1)<br>(0.1)<br>(1.5) (1.9) (2.6)<br>Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Equities<br>(US$bn)<br>1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>QUARTERLY FLOWS BY CAPABILITY<br>Equities and Fixed Income<br>5.9<br>8.7<br>5.9 5.9 4.7<br>(4.1)<br>(7.5)<br>(5.5) (6.0)<br>(4.0)<br>1.8 1.2 0.4<br>(0.1)<br>0.7<br>Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>(24%) (22%) (22%) (19%) (17%)<br>Redemptions Sales Net sales / (redemptions)<br>Annualised gross redemptions¹<br>13% 22% 19% 15% 12% 34% 46% 29% 30% 23%<br>(23%) (40%) (28%) (31%) (19%)<br>Fixed Income<br>(US$bn)<br>Annualised gross sales¹ |
| --- |
| 23<br>1.3<br>0.3 0.2 0.2 0.1<br>(1.4)<br>(3.7)<br>(2.3)<br>(1.5)<br>(4.5)<br>(0.1)<br>(3.4)<br>(2.1)<br>(1.3)<br>(4.4)<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>2.3<br>3.1 3.0<br>2.4 2.6<br>(1.7) (1.9) (2.2) (1.9) (1.8)<br>0.6<br>1.2 0.8 0.5 0.8<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>0.5 0.8 1.1 1.3 1.1<br>(0.6) (0.8)<br>(2.0)<br>(1.0) (0.8)<br>(0.1)<br>-<br>(0.9)<br>0.3 0.3<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>Multi-Asset<br>(US$bn)<br>1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>QUARTERLY FLOWS BY CAPABILITY<br>Multi-Asset, Quantitative Equities and Alternatives<br>Redemptions Sales Net sales / (redemptions)<br>Quantitative Equities<br>(US$bn)<br>13% 3% 2% 2% 1% 22% 28% 25% 20% 20% 23% 33% 41% 52% 42%<br>(14%) (36%) (22%) (14%) (41%) (17%) (17%) (18%) (15%) (14%) (24%) (31%) (77%) (39%) (30%)<br>Annualised gross redemptions¹<br>Annualised gross sales¹<br>Alternatives<br>(US$bn) |
| --- |
| 24<br>Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Equities<br>Fixed Income<br>Multi-Asset<br>Quantitative Equities<br>Alternatives<br>Q3 2019 to Q3 2021 total net flows by capability<br>(US$bn)<br>NET FLOWS BY CAPABILITY<br>(12.2)<br>(3.5)<br>(6.7) (8.2)<br>(2.9)<br>(1.1)<br>(3.3)<br>(2.5)<br>(5.2) |
| --- |
| 25<br>Note: Outperformance is measured based on composite performance gross of fees vs primary benchmark, except where a strategy has no benchmark index or<br>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<br>fees vs primary index or (3) fund net of fees vs Morningstar peer group average or median.<br>Non-discretionary and separately managed account assets are included with a corresponding composite where applicable.<br>Cash management vehicles, ETFs, Managed CDOs, Private Equity funds and custom non-discretionary accounts with no corresponding composite are<br>excluded from the analysis.<br>Excluded assets represent 5% of AUM across all time periods. Capabilities defined by Janus Henderson.<br>INVESTMENT PERFORMANCE<br>% of AUM outperforming benchmark<br>Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr<br>Equities 54% 54% 67% 77% 55% 54% 69% 77% 56% 56% 55% 78% 64% 56% 60% 84%<br>Fixed Income 92% 96% 90% 99% 94% 97% 89% 98% 98% 96% 97% 98% 98% 96% 96% 99%<br>Multi-Asset 97% 96% 94% 96% 98% 97% 94% 96% 98% 97% 97% 96% 99% 97% 97% 97%<br>Quantitative Equities 69% 24% 16% 69% 48% 4% 11% 72% 23% 23% 2% 71% 41% 2% 2% 32%<br>Alternatives 97% 97% 100% 100% 98% 97% 100% 100% 98% 97% 100% 100% 94% 97% 100% 100%<br>Total 68% 65% 72% 83% 67% 62% 70% 83% 66% 66% 63% 83% 72% 64% 67% 86%<br>Q4 2020 Q1 2021 Q2 2021 Q3 2021 |
| --- |
| 26<br>INVESTMENT PERFORMANCE<br>Note: Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Henderson Capital Funds (Dublin based), Dublin and UK<br>OEIC and Investment Trusts, Luxembourg SICAVs and Australian Managed Investment Schemes.<br>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<br>30 September 2021, 46%, 54%, 50% and 61% of the 195, 185, 180 and 150 total mutual funds, respectively, were in the top 2 Morningstar quartiles.<br>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<br>with longest history for Dublin based; primary share class as defined by Morningstar for other funds). Performance may vary by share class. Rankings may<br>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<br>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,<br>it may have a material effect on the total return, and therefore the ranking for the period.<br>ETFs and funds not ranked by Morningstar are excluded from the analysis. Capabilities defined by Janus Henderson. © 2021 Morningstar, Inc. All Rights<br>Reserved.<br>% of mutual fund AUM in top 2 Morningstar quartiles<br>Capability 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr 1yr 3yr 5yr 10yr<br>Equities 47% 57% 67% 77% 35% 60% 64% 79% 32% 59% 44% 71% 47% 47% 49% 68%<br>Fixed Income 70% 79% 73% 70% 69% 79% 73% 70% 57% 80% 75% 71% 84% 77% 73% 69%<br>Multi-Asset 91% 91% 92% 93% 19% 91% 92% 96% 19% 92% 91% 93% 20% 92% 92% 94%<br>Quantitative Equities 4% 33% 4% 2% 32% 32% 4% 0% 41% 47% 7% 0% 11% 11% 11% 0%<br>Alternatives 74% 76% 75% 98% 30% 76% 30% 98% 27% 76% 27% 98% 27% 70% 74% 98%<br>Total 57% 66% 71% 79% 37% 67% 68% 81% 33% 67% 55% 75% 47% 59% 60% 73%<br>Q4 2020 Q1 2021 Q2 2021 Q3 2021 |
| --- |
| 27<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles (continued)<br>Group<br>17 10<br>21 17<br>44 44 42 47 40 42 41 45 43<br>57 57<br>48<br>41<br>27 12<br>29<br>22 24 26 13 31 26<br>14<br>14<br>36<br>24 18<br>25 57<br>37 33<br>47<br>66 67 67<br>59<br>71 68<br>55<br>60<br>79 81<br>75 73<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Equities<br>10 8<br>22 19<br>29 27 26 32 27 32 31 31 34<br>53 54<br>37<br>36<br>27<br>10<br>28<br>29 32 33 15<br>40 32<br>14 17<br>44<br>27 18<br>31 47<br>35 32<br>47<br>57 60 59<br>47<br>67 64<br>44<br>49<br>77 79<br>71 68<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>2nd quartile<br>1st quartile<br>1-year 3-year 5-year<br>Note: Full performance disclosures detailed on slide 26. Numbers may not cast due to rounding.<br>10-year 1-year 3-year 5-year 10-year |
| --- |
| 28<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles (continued)<br>2nd quartile<br>1st quartile Fixed Income Multi-Asset<br>54<br>27 30 25<br>71 69 71 70<br>49<br>38 40<br>56<br>30 31 33<br>48<br>16<br>43<br>27<br>59<br>8 11 9 7<br>24<br>35 35<br>17<br>40 39 38<br>21<br>70 69<br>57<br>84<br>79 79 80 77<br>73 73 75 73 70 70 71 69<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>15<br>1<br>15 4<br>91 90 91 92 91 91 91 91 92 92 93 93<br>76<br>18<br>4<br>16<br>1 1 1 1 0 1 1 1 1 4 1 1 91<br>19 19 20<br>91 91 92 92 92 92 91 92 93 96 93 94<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>1-year 3-year 5-year 10-year 1-year 3-year 5-year 10-year<br>Note: Full performance disclosures detailed on slide 26. Numbers may not cast due to rounding. |
| --- |
| 29<br>4 7 11 4 4 7 11 4 4 7 11<br>32<br>34<br>29 28<br>40<br>2<br>4<br>32<br>41<br>11<br>33 32<br>47<br>11<br>4 4 7 11<br>2 0 0 0<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>0<br>19<br>0<br>14<br>41<br>74<br>20 24<br>39<br>24 22<br>65<br>46<br>67<br>50<br>66<br>74<br>12<br>26<br>13<br>35<br>2<br>56 46<br>37<br>6 6<br>9 52<br>31<br>48<br>32 74<br>30 27 27<br>76 76 76<br>70<br>75<br>30 27<br>74<br>98 98 98 98<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles (continued)<br>Quantitative Equities Alternatives<br>2nd quartile<br>1st quartile<br>1-year 3-year 5-year 10-year 1-year 3-year 5-year 10-year<br>Note: Full performance disclosures detailed on slide 26. Numbers may not cast due to rounding. |
| --- |
| 30<br>US GAAP: STATEMENT OF INCOME<br>(US$m, except per share data or as noted) 30 Sep 21 30 Jun 21 30 Sep 20<br>Revenue<br>Management fees 564.5 544.1 457.7<br>Performance fees 0.6 77.4 7.0<br>Shareowner servicing fees 67.6 64.0 53.7<br>Other revenue 54.7 52.9 50.1<br>Total revenue 687.4 738.4 568.5<br>Operating expenses<br>Employee compensation and benefits 166.2 192.4 154.9<br>Long-term incentive plans 35.0 49.8 42.7<br>Distribution expenses 142.1 134.8 118.8<br>Investment administration 13.0 13.1 13.1<br>Marketing 7.5 6.7 5.3<br>General, administrative and occupancy 65.5 65.7 65.6<br>Impairment of goodwill and intangible assets – 40.8 –<br>Depreciation and amortisation 9.8 10.1 11.6<br>Total operating expenses 439.1 513.4 412.0<br>Operating income 248.3 225.0 156.5<br>Interest expense (3.2) (3.2) (3.2)<br>Investment gains, net 4.7 1.8 25.5<br>Other non-operating income (expense), net 3.6 (2.7) (0.9)<br>Income before taxes 253.4 220.9 177.9<br>Income tax provision (53.3) (79.7) (40.8)<br>Net income 200.1 141.2 137.1<br>Net income attributable to noncontrolling interests (3.3) (3.9) (18.2)<br>Net income attributable to JHG 196.8 137.3 118.9<br>Less: allocation of earnings to participating stock-based awards (5.4) (3.9) (3.5)<br>Net income attributable to JHG common shareholders 191.4 133.4 115.4<br>Diluted weighted-average shares outstanding (m) 167.8 168.1 178.8<br>Diluted earnings per share (in US$) 1.14 0.79 0.65<br>3 months ended |
| --- |
| 31<br>ALTERNATIVE PERFORMANCE MEASURES<br>Reconciliation of adjusted financial measures<br>(US$m, except per share data) 30 Sep 21 30 Jun 21 31 Mar 21 31 Dec 20 30 Sep 20 30 Jun 20<br>Reconciliation of revenue to adjusted revenue<br>Revenue 687.4 738.4 644.0 657.2 568.5 518.0<br>Management fees1 (53.0) (49.6) (46.8) (51.6) (47.9) (40.2)<br>Shareowner servicing fees1 (55.4) (53.1) (50.0) (47.4) (42.8) (39.0)<br>Other revenue1 (33.7) (32.1) (30.6) (29.7) (28.1) (25.5)<br>Adjusted revenue 545.3 603.6 516.6 528.5 449.7 413.3<br>Reconciliation of operating expenses to adjusted operating expenses<br>Operating expenses 439.1 513.4 451.5 430.2 412.0 411.3<br>Employee compensation and benefits2 –––(0.1) (0.3) (0.5)<br>Long-term incentive plans2 0.1 0.1 0.1 0.1 0.1 0.2<br>Distribution expenses1 (142.1) (134.8) (127.4) (128.7) (118.8) (104.7)<br>General, administrative and occupancy2 (2.9) (1.7) (3.6) (2.8) (3.5) (2.8)<br>Impairment of goodwill and intangible assets3 –(40.8) (3.6) ––(26.4)<br>Depreciation and amortisation3 (1.9) (1.9) (1.9) (1.9) (1.9) (2.2)<br>Adjusted operating expenses 292.3 334.3 315.1 296.8 287.6 274.9<br>Adjusted operating income 253.0 269.3 201.5 231.7 162.1 138.4<br>Operating margin 36.1% 30.5% 29.9% 34.5% 27.5% 20.6%<br>Adjusted operating margin 46.4% 44.6% 39.0% 43.8% 36.0% 33.5%<br>3 months ended<br>Note: Reconciliation to be used in conjunction with slide 32.<br>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<br>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<br>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<br>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,<br>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<br>revenue.<br>2 Adjustments primarily represent rent expense for subleased office space, a one-time charge related to the employee benefit trust, administrative costs related to Dai-ichi Life’s secondary<br>offering as well as integration costs in related to the merger. JHG management believes these costs are not representative of the ongoing operations of the Group.<br>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<br>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<br>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<br>relationships and trademarks. JHG management believes these non-cash and acquisition-related costs are not representative of the ongoing operations of the Group. |
| --- |
| 32<br>ALTERNATIVE PERFORMANCE MEASURES<br>Reconciliation of adjusted financial measures (continued)<br>(US$m, except per share data) 30 Sep 21 30 Jun 21 30 Sep 20<br>Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG<br>Net income attributable to JHG 196.8 137.3 118.9<br>Employee compensation and benefits2 –– 0.3<br>Long-term incentive plans2 (0.1) (0.1) (0.1)<br>General, administrative and occupancy2 2.9 1.7 3.5<br>Impairment of goodwill and intangible assets3 – 40.8 –<br>Depreciation and amortisation3 1.9 1.9 1.9<br>Other non-operating income (expense), net4 (1.6) (1.7) (0.5)<br>Income tax benefit (provision)5 (0.4) 20.6 5.6<br>Adjusted net income attributable to JHG 199.5 200.5 129.6<br>Diluted earnings per share (in US$) 1.14 0.79 0.65<br>Adjusted diluted earnings per share (in US$) 1.16 1.16 0.70<br>3 months ended<br>Note: Reconciliation to be used in conjunction with slide 31.<br>2 Adjustments primarily represent rent expense for subleased office space. In addition, the adjustment for the three months ended 30 September 2021 includes a one-time charge related to<br>the employee benefits trust. JHG management believes these costs are not representative of the ongoing operations of the Group.<br>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<br>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<br>straight-line basis over the expected life of the contracts. Adjustments for the three months ended 30 June 2021 also include impairment charges of certain mutual fund investment<br>management agreements. JHG management believes these non-cash and acquisition-related costs are not representative of the ongoing operations of the Group.<br>4 Adjustments primarily relate to contingent consideration adjustments associated with prior acquisitions. JHG management believes these costs are not representative of the ongoing<br>operations of the Group.<br>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<br>tax-deductible. Adjustments for the three months ended 30 June 2021 include a non-cash deferred tax expense of US$31.0 million due to the enactment of Finance Act 2021 during the<br>second quarter 2021. |
| --- |
| 33<br>CAPITAL MANAGEMENT<br>Note: JHG purchases shares on market for the annual share grants associated with variable compensation, which is not included in the above share repurchases.<br>Numbers may not cast due to rounding.<br>1 Total shares outstanding reflect amounts disclosed on Forms 10-Q or 10-K for each respective quarter.<br>2 Cumulative decrease from commencement of buyback programme in Q3 2018.<br>Continued commitment to return of capital<br>Dividend paid / share (US$) 0.36 0.36 0.36 0.36 0.36 0.36 0.38 0.38<br>Shares repurchased (m) 0.5 2.1 1.1 2.4 1.0 8.1 0.0 1.8<br>Total shares outstanding1 (m) 187.0 184.9 183.9 181.4 180.4 172.3 172.3 170.6<br>Cumulative decrease in shares2 6.7% 7.7% 8.3% 9.5% 10.0% 14.0% 14.0% 14.9%<br>Q4 2019 to Q3 2021 quarterly capital return<br>(US$m)<br>66.3 66.2 66.1 65.8 64.8 61.7 65.0 64.8<br>12.5 31.2 22.0<br>50.2<br>27.4<br>230.2<br>75.0<br>78.8<br>97.4<br>88.1<br>116.0<br>92.2<br>291.9<br>65.0<br>139.8<br>Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021<br>Dividends<br>Share repurchases |
| --- |
| 34<br>PERFORMANCE FEES<br>Note: Performance fees include prior quarter accrual true-ups.<br>1 AUM data present US mutual fund AUM subject to performance fees as at 30 September 2021. Janus Investment Funds and Janus Aspen Series<br>Portfolios are counted as distinct and separate funds.<br>Q3 2021<br>(US$m)<br>Q2 2021<br>(US$m)<br>Q3 2020<br>(US$m)<br>AUM<br>generating<br>Q3 2021<br>pfees<br>(US$bn)<br># of funds<br>generating<br>Q3 2021<br>pfees Frequency Timing<br>SICAVs 1.0 50.2 2.8 3.6 2 17 annually;<br>3 quarterly<br>17 at June;<br>3 on quarters<br>UK OEICs and unit trusts – 15.2 6.4 –– annually various<br>Offshore absolute return and<br>other funds 1.1 0.2 0.1 0.1 1 quarterly /<br>annually various<br>Segregated mandates – 1.9 3.2 0.2 2 quarterly /<br>annually various<br>Investment trusts – 12.7 ––– annually various<br>US mutual funds1 (1.5) (2.8) (5.5) 63.3 15 monthly monthly<br>Total 0.6 77.4 7.0 67.2 20 |
| --- |
| 35<br>US MUTUAL FUNDS WITH PERFORMANCE FEES<br>Note: Numbers may not cast due to rounding.<br>1 The funds listed have a performance-based investment advisory fee that adjusts up or down based on performance relative to a benchmark over 36-month<br>rolling periods. Please see the funds’ Statements of Additional Information for more details and benchmark information.<br>2 Adjustment of ± 15 bps assumes constant assets and could be higher or lower depending on asset fluctuations.<br>3 Until 1 August 2022, the Fund’s performance during the portion of the performance measurement period prior to 1 August 2019 will be compared to the<br>Fund's former benchmark, the Russell 3000® Value Index.<br>Mutual funds with performance fees¹<br>AUM<br>30 Sep 21<br>(US$m) Benchmark<br>Base<br>fee<br>Performance<br>fee2<br>Performance<br>cap/(floor) vs<br>benchmark<br>Q3 2021 P&L<br>impact<br>(US$’000)<br>Forty Fund and Portfolio 22,801 Russell 1000® Growth Index 0.64% ± 15 bps ± 8.50% 4,251<br>Research Fund and Portfolio 20,946 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (6,217)<br>Contrarian Fund 5,087 S&P 500® Index 0.64% ± 15 bps ± 7.00% 1,198<br>Global Research Fund and Portfolio 4,380 MSCI World IndexSM 0.60% ± 15 bps ± 6.00% 758<br>Small Cap Value Fund 3,709 Russell 2000® Value Index 0.72% ± 15 bps ± 5.50% (1,260)<br>Mid Cap Value Fund and Portfolio 2,855 Russell Midcap® Value Index 0.64% ± 15 bps ± 4.00% (1,155)<br>Overseas Fund and Portfolio 2,511 MSCI All Country World ex-U.S. IndexSM 0.64% ± 15 bps ± 7.00% 758<br>Global Real Estate Fund 853 FTSE EPRA / NAREIT Global Index 0.75% ± 15 bps ± 4.00% 199<br>Small-Mid Cap Value Fund3 106 Russell 2500TM Value Index 0.70% ± 15 bps ± 5.00% (27)<br>Asia Equity Fund 19 MSCI All Country Asia ex-Japan IndexSM 0.92% ± 15 bps ± 7.00% (12)<br>Total 63,266 (1,506) |
| --- |
| 36<br>LONG-TERM INCENTIVE COMPENSATION<br>Note: Annual grants generally vest over three and four years. Assumed no forfeitures in future periods. Assumed no change in future values related to market or<br>currency, which would impact expense related to cash-based awards (MFSAs, DIP and DEP funds) and social security expense upon vesting.<br>1 Includes retention and recruiting awards; other subsidiary grants and social security expense. Social security expense is estimated based on amount of<br>existing awards expected to vest in that year.<br>Estimated future long-term incentive compensation amortization<br>(US$m)<br>Amount<br>remaining<br>to expense 2021 2022 2023 2024 2025<br>2018 annual grant 5 5 ––––<br>2019 annual grant 24 21 3 –––<br>2020 annual grant 69 48 18 3 ––<br>2021 annual grant 140 71 46 20 3 –<br>Other1 71 30 20 12 7 2<br>Total long-term incentive compensation 309 175 87 35 10 2 |
| --- |
| 37<br>CONTACTS<br>Investor enquiries<br>Melanie Horton<br>Co-Head Investor Relations (Non-US)<br>+44 (0)20 7818 2905<br>melanie.horton@janushenderson.com<br>Jim Kurtz<br>Co-Head Investor Relations (US)<br>+1 303 336 4529<br>jim.kurtz@janushenderson.com<br>Investor Relations<br>investor.relations@janushenderson.com<br>Media enquiries<br>Stephen Sobey<br>+44 (0)20 7818 2523<br>stephen.sobey@janushenderson.com<br>Sarah Johnson<br>+1 720 364 0708<br>sarah.johnson@janushenderson.com<br>United Kingdom: Edelman Smithfield<br>Latika Shah<br>+44 (0)7950 671 948<br>latika.shah@edelmansmithfield.com<br>Andrew Wilde<br>+44 (0)7786 022 022<br>andrew.wilde@edelmansmithfield.com<br>Asia Pacific: Honner<br>Craig Morris<br>+61 2 8248 3757<br>craig@honner.com.au |
| --- |
| 201 Bishopsgate London EC2M 3AE United Kingdom<br>www.janushenderson.com<br>Contact us<br>Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value.<br>Forward-looking information<br>This presentation includes statements concerning potential future events involving Janus Henderson Group plc that could differ materially from the<br>events that actually occur. The differences could be caused by a number of factors, including those factors identified in Janus Henderson Group’s<br>Annual Report on Form 10-K for the fiscal year ended 31 December 2020 and the Company’s other filings and furnishings with the Securities and<br>Exchange Commission (Commission file no. 001-38103), including those that appear under headings such as ‘Risk Factors’ and ‘Management’s<br>Discussion and Analysis of Financial Condition and Results of Operations’. Many of these factors are beyond the control of the Company and its<br>management. Any forward-looking statements contained in this presentation are as of the date on which such statements were made. The Company<br>assumes no duty to update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or<br>implied therein will not be realised. Annualised, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts<br>and may not reflect actual results.<br>No public offer<br>The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or an offer to<br>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<br>financial instruments.<br>Not all products or services are available in all jurisdictions. Various account minimums or other eligibility qualifications apply depending on the<br>investment strategy, vehicle or investor jurisdiction. Mutual funds in the US distributed by Janus Henderson Distributors.<br>Please consider the charges, risks, expenses and investment objectives carefully before investing. For a US fund prospectus<br>or, if available, a summary prospectus containing this and other information, please contact your investment professional or<br>call 800.668.0434. Read it carefully before you invest or send money.<br>Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. |
| --- |