8-K
JANUS HENDERSON GROUP PLC (JHG)
8-K
2022-10-27
For: 2022-10-27
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April 07, 2026
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 27, 2022
Commission File Number 001-38103
JANUS HENDERSON GROUP PLC
(Exact name of registrant as specified in its charter)
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|---|---|
| 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 |
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| 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 27, 2022, JHG issued a press release reporting its financial results for the third quarter 2022. 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.
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|---|---|---|
| Exhibit<br>Number | Description | |
| 99.1 | | Janus Henderson Group plc press release reporting its financial results for the third quarter 2022. |
| 99.2 | | Janus Henderson Group plc third quarter 2022 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. |
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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.
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| | Janus Henderson Group plc | |
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| Date: October 27, 2022 | By: | /s/ Roger Thompson |
| | | Roger Thompson |
| | | Chief Financial Officer |
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Exhibit 99.1
Janus Henderson Group plc Reports Third Quarter 2022 Results
| ● | Solid long-term investment performance, with 50%, 64%, 67%, and 75% of assets under management (‘AUM’) outperforming relevant benchmarks on a one-, three-, five-, and 10-year basis, respectively, as at 30 September 2022 |
|---|---|
| ● | AUM decreased 8% to US$274.6 billion compared to the prior quarter, due to market declines, US dollar appreciation, and net outflows |
| --- | --- |
| ● | Net outflows of US$(5.8) billion primarily reflect market uncertainty and investment underperformance in key strategies |
| --- | --- |
| ● | Third quarter 2022 diluted EPS of US$0.65, or US$0.61 on an adjusted basis |
| --- | --- |
| ● | Board declared a quarterly dividend of US$0.39 per share |
| --- | --- |
| ● | Strong balance sheet and cash generation with over US$1.0 billion in cash and cash equivalents and US$221.9 million of cash provided from operating activities in the third quarter 2022 |
| --- | --- |
| ● | Actioning US$40 million to US$45 million in gross run rate cost efficiencies expected to be realised by the end of 2023, which will be offset by investments in the business to drive growth |
| --- | --- |
LONDON — Janus Henderson Group plc (NYSE/ASX: JHG; ‘Janus Henderson’, ‘JHG’, ‘the Group’, ‘the Company’) published its third quarter 2022 results for the period ended 30 September 2022.
Third quarter 2022 operating income was US$120.7 million compared to US$143.9 million in the second quarter 2022 and US$248.3 million in the third quarter 2021. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, was US$125.4 million in the third quarter 2022 compared to US$149.3 million in the second quarter 2022 and US$253.0 million in the third quarter 2021.
Third quarter 2022 diluted earnings per share of US$0.65 compared to US$0.57^1^ in the second quarter 2022 and US$1.14 in the third quarter 2021. Adjusted diluted earnings per share of US$0.61 in the third quarter 2022 compared to US$0.63 in the second quarter 2022 and compared to US$1.16 in the third quarter 2021.
Ali Dibadj, Chief Executive Officer of Janus Henderson Group plc, stated:
“The world continues to be volatile, and this is when our clients, and their clients, need us. Janus Henderson’s investment insights, client-service, strong balance sheet, and stable foundation are keys to delivering superior financial outcomes for our clients. In this environment, we continue to control what we can control, looking keenly at expenses, increasing client outreach, and more broadly sharing our market perspectives.
“The work being done to reenergise the Company’s future strategy is well underway, and we believe the cost efficiencies announced today will provide the ‘Fuel for Growth’ to allow investment in the business, which we believe will improve our growth trajectory over time.” Page | 1
SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ 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.
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| | | Three months ended | | ||||
| | | 30 Sep | | 30 Jun | | 30 Sep | |
| | **** | 2022 | **** | 2022 | **** | 2021 | |
| GAAP basis:^1^ | | ||||||
| Revenue | 512.9 | 555.5 | 687.4 | ||||
| Operating expenses | 392.2 | 411.6 | 439.1 | ||||
| Operating income | 120.7 | 143.9 | 248.3 | ||||
| Operating margin | 23.5 | % | 25.9 | % | 36.1 | % | |
| Net income attributable to JHG | 107.6 | 96.2 | 196.8 | ||||
| Diluted earnings per share | 0.65 | 0.57 | 1.14 | ||||
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| Adjusted basis: | | | | | |||
| Revenue | 394.2 | 427.7 | 545.3 | ||||
| Operating expenses | 268.8 | 278.4 | 292.3 | ||||
| Operating income | 125.4 | 149.3 | 253.0 | ||||
| Operating margin | 31.8 | % | 34.9 | % | 46.4 | % | |
| Net income attributable to JHG | 101.1 | 104.9 | 199.5 | ||||
| Diluted earnings per share | 0.61 | 0.63 | 1.16 |
| 1 | Please see footnote to ‘Condensed consolidated statements of comprehensive income (unaudited)’ below for detail on the revision to ‘Net income attributable to JHG’ and ‘Diluted earnings per share’ on a GAAP basis for the three months ended 30 June 2022. |
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DIVIDEND AND SHARE BUYBACK
On 26 October 2022, the Board declared a third quarter dividend in respect of the three months ended 30 September 2022 of US$0.39 per share. Shareholders on the register on the record date of 7 November 2022 will be paid the dividend on 23 November 2022.
The Group did not purchase any of its ordinary shares on the New York Stock Exchange (‘NYSE’) or its CHESS Depositary Interests (‘CDIs’) on the Australian Securities Exchange (‘ASX’) in the third quarter as part of the US$200 million on-market buyback programme approved by the Board in May 2022.
AUM AND FLOWS (in US$ 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 Group comparative AUM and flows
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Three months ended | ||||
| | | 30 Sep | | 30 Jun | | 30 Sep |
| | **** | 2022 | **** | 2022 | **** | 2021 |
| Opening AUM | **** | 299.7 | **** | 361.0 | **** | 427.6 |
| Sales | 11.4 | 16.4 | 16.0 | |||
| Redemptions | (17.2) | (24.2) | (21.2) | |||
| Net sales / (redemptions) | (5.8) | (7.8) | (5.2) | |||
| Market / FX | (19.3) | (53.5) | (3.1) | |||
| Closing AUM | **** | 274.6 | **** | 299.7 | **** | 419.3 |
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Quarterly AUM and flows by capability
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | | **** | | **** | | **** | | **** | Total excl | **** | | **** | |
| | | | | Fixed | | | | | | Quantitative | | Quantitative | | |
| | | Equities | | Income | | Multi-Asset | | Alternatives | | Equities | | Equities | | Total |
| AUM 30 Sep 2021 | | 236.2 | | 79.5 | | 53.9 | | 10.6 | | 380.2 | | 39.1 | | 419.3 |
| Sales | 8.1 | 5.6 | 4.3 | 1.2 | 19.2 | 0.1 | 19.3 | |||||||
| Redemptions | (11.3) | (5.5) | (2.2) | (1.2) | (20.2) | (4.3) | (24.5) | |||||||
| Net sales / (redemptions) | (3.2) | 0.1 | 2.1 | — | (1.0) | (4.2) | (5.2) | |||||||
| Market / FX | 11.3 | — | 3.7 | 0.1 | 15.1 | 3.1 | 18.2 | |||||||
| AUM 31 Dec 2021 | 244.3 | **** | 79.6 | **** | 59.7 | **** | 10.7 | **** | 394.3 | **** | 38.0 | **** | 432.3 | |
| Sales | 8.5 | 6.0 | 2.3 | 0.9 | 17.7 | 0.2 | 17.9 | |||||||
| Redemptions | (12.3) | (6.0) | (4.5) | (1.1) | (23.9) | (5.9) | (29.8) | |||||||
| Net sales / (redemptions) | | (3.8) | — | (2.2) | (0.2) | (6.2) | (5.7) | (11.9) | ||||||
| Market / FX | (20.5) | (4.1) | (3.6) | (0.2) | (28.4) | (2.7) | (31.1) | |||||||
| Reclassifications and disposals^1^ | 1.3 | — | — | — | 1.3 | (29.6) | (28.3) | |||||||
| AUM 31 Mar 2022 | 221.3 | **** | 75.5 | **** | 53.9 | **** | 10.3 | **** | 361.0 | **** | — | **** | 361.0 | |
| Sales | 5.5 | 4.9 | 1.6 | 4.4 | 16.4 | — | 16.4 | |||||||
| Redemptions | | (11.3) | (8.2) | (2.5) | (2.2) | (24.2) | — | (24.2) | ||||||
| Net sales / (redemptions) | (5.8) | (3.3) | (0.9) | 2.2 | (7.8) | — | (7.8) | |||||||
| Market / FX | (38.5) | (7.7) | (6.5) | (0.8) | (53.5) | — | (53.5) | |||||||
| AUM 30 Jun 2022 | 177.0 | **** | 64.5 | **** | 46.5 | **** | 11.7 | **** | 299.7 | **** | — | **** | 299.7 | |
| Sales | 4.8 | 4.4 | 1.5 | 0.7 | 11.4 | — | 11.4 | |||||||
| Redemptions | (8.9) | (5.6) | (1.7) | (1.0) | (17.2) | — | (17.2) | |||||||
| Net sales / (redemptions) | (4.1) | (1.2) | (0.2) | (0.3) | (5.8) | — | (5.8) | |||||||
| Market / FX | (11.1) | (4.8) | (2.5) | (0.9) | (19.3) | — | (19.3) | |||||||
| AUM 30 Sep 2022 | 161.8 | **** | 58.5 | **** | 43.8 | **** | 10.5 | **** | 274.6 | **** | — | **** | 274.6 |
| 1 | Disposals relate to the sale of Intech, and reclassifications relate to a reclassification of existing funds from Quantitative Equities to Equities. |
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Average AUM by capability
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|---|---|---|---|---|---|---|
| | | Three months ended | ||||
| | | 30 Sep | | 30 Jun | | 30 Sep |
| | **** | 2022 | **** | 2022 | **** | 2021 |
| Equities | 182.4 | 197.0 | 243.5 | |||
| Fixed Income | 63.7 | 68.8 | 80.9 | |||
| Multi-Asset | 47.5 | 49.5 | 54.9 | |||
| Quantitative Equities | — | — | 41.9 | |||
| Alternatives | 11.4 | 13.2 | 10.7 | |||
| Total | 305.0 | 328.5 | 431.9 |
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark (at 30 September 2022)
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| Capability | **** | 1-year | **** | 3-year | **** | 5-year | **** | 10-year | **** |
| Equities | 42 | % | 50 | % | 51 | % | 64 | % | |
| Fixed Income | 43 | % | 76 | % | 89 | % | 90 | % | |
| Multi-Asset | 94 | % | 96 | % | 96 | % | 99 | % | |
| Alternatives | 29 | % | 100 | % | 100 | % | 100 | % | |
| Total | 50 | % | 64 | % | 67 | % | 75 | % |
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. Page | 3
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 31 March 2022. Excluded assets represent 5% of AUM as at 30 September 2022. Capabilities defined by Janus Henderson.
% of mutual fund AUM in top 2 Morningstar quartiles (at 30 September 2022)
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|---|---|---|---|---|---|---|---|---|---|
| Capability | **** | 1-year | **** | 3-year | **** | 5-year | **** | 10-year | **** |
| Equities | 61 | % | 38 | % | 71 | % | 90 | % | |
| Fixed Income | 36 | % | 61 | % | 76 | % | 85 | % | |
| Multi-Asset | 96 | % | 92 | % | 92 | % | 96 | % | |
| Alternatives | 89 | % | 95 | % | 67 | % | 100 | % | |
| Total | 66 | % | 53 | % | 76 | % | 91 | % |
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. Performance across all time periods excludes Intech, the sale of which was completed 31 March 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 30 September 2022, 54%, 53%, 60%, and 68% of the 189, 179, 174, and 152 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. © 2022 Morningstar, Inc. All Rights Reserved.
Page | 4
FOURTH QUARTER AND FULL-YEAR 2022 RESULTS
Janus Henderson intends to publish its fourth quarter and full-year 2022 results on 2 February 2023.
THIRD QUARTER 2022 RESULTS BRIEFING INFORMATION
Chief Executive Officer Ali Dibadj and Chief Financial Officer Roger Thompson will present these results on 27 October 2022 on a conference call and webcast to be held at 8am EDT, 1pm BST, 11pm AEDT.
Those wishing to participate should call:
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|---|---|
| United Kingdom | 0808 189 6484 (toll free) |
| United States | 844 200 6205 (toll free) |
| Australia | 02 7908 3093 (this is not toll free) |
| All other countries | +1 929 526 1599 (this is not toll free) |
| Conference ID | 416605 |
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, multi-asset, and alternative asset class strategies.
At 30 September 2022, Janus Henderson had approximately US$275 billion in assets under management, more than 2,000 employees, and offices in 23 cities worldwide. Headquartered in London, the company is listed on the NYSE and the ASX.
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| Investor enquiries: | | Media enquiries: |
| Jim Kurtz | | Stephen Sobey |
| Head of Investor Relations<br>+1 303 336 4529 | | Head of Media Relations<br><br>+44 (0)20 7818 2523 |
| jim.kurtz@janushenderson.com | | stephen.sobey@janushenderson.com |
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| Or | | |
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| Investor Relations | | |
| investor.relations@janushenderson.com | | |
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FINANCIAL DISCLOSURES
Condensed consolidated statements of comprehensive income (unaudited)
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|---|---|---|---|---|---|
| | Three months ended | ||||
| | 30 Sep | | 30 Jun | | 30 Sep |
| (in US millions, except per share data or as noted) | 2022 | **** | 2022 | **** | 2021 |
| Revenue: | | | | | |
| Management fees | 426.2 | 453.6 | 564.5 | ||
| Performance fees | (13.2) | (3.4) | 0.6 | ||
| Shareowner servicing fees | 54.0 | 56.3 | 67.6 | ||
| Other revenue | 45.9 | 49.0 | 54.7 | ||
| Total revenue | 512.9 | **** | 555.5 | **** | 687.4 |
| | | | | | |
| Operating expenses: | | | | | |
| Employee compensation and benefits | 142.5 | 145.0 | 166.2 | ||
| Long-term incentive plans | 41.1 | 40.7 | 35.0 | ||
| Distribution expenses | 118.7 | 127.8 | 142.1 | ||
| Investment administration | 12.5 | 10.3 | 13.0 | ||
| Marketing | 5.6 | 7.8 | 7.5 | ||
| General, administrative and occupancy | 64.7 | 72.3 | 65.5 | ||
| Depreciation and amortisation | 7.1 | 7.7 | 9.8 | ||
| Total operating expenses | 392.2 | **** | 411.6 | **** | 439.1 |
| | | | | | |
| Operating income | 120.7 | **** | 143.9 | **** | 248.3 |
| | | | | | |
| Interest expense | (3.1) | (3.2) | (3.2) | ||
| Investment gains (losses), net | 11.0 | (109.4) | 4.7 | ||
| Other non-operating income, net1 | 13.9 | 0.6 | 3.6 | ||
| Income before taxes | 142.5 | 31.9 | 253.4 | ||
| Income tax provision | (27.9) | (36.7) | (53.3) | ||
| Net income (loss) | 114.6 | (4.8) | 200.1 | ||
| Net loss (income) attributable to noncontrolling interests | (7.0) | 101.0 | (3.3) | ||
| Net income attributable to JHG | 107.6 | **** | 96.2 | **** | 196.8 |
| Less: allocation of earnings to participating stock-based awards | (3.3) | (3.0) | (5.4) | ||
| Net income attributable to JHG common shareholders | 104.3 | **** | 93.2 | **** | 191.4 |
| | | | | | |
| Basic weighted-average shares outstanding (in millions) | 160.5 | 161.9 | 167.1 | ||
| Diluted weighted-average shares outstanding (in millions) | 160.9 | 162.2 | 167.8 | ||
| | | | | | |
| Diluted earnings per share (in US) | 0.65 | 0.57 | 1.14 |
All values are in US Dollars.
| 1 | In the second quarter of 2022, we identified a US$2.3 million error related to the accounting of accumulated other comprehensive income associated with the liquidation of certain entities. Foreign currency translation in accumulated other comprehensive income related to liquidated entities should have been reclassified to other non-operating income (expense), net, on our consolidated statement of comprehensive income in 2020. |
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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.
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|---|---|---|---|---|---|---|
| | Three months ended | | ||||
| | 30 Sep | | 30 Jun | | 30 Sep | |
| (in US millions, except per share data or as noted) | 2022 | **** | 2022 | **** | 2021 | |
| Reconciliation of revenue to adjusted revenue | | | | | | |
| Revenue | 512.9 | 555.5 | 687.4 | |||
| Management fees1 | (46.0) | | (50.9) | | (53.0) | |
| Shareowner servicing fees1 | (43.7) | | (46.9) | | (55.4) | |
| Other revenue1 | (29.0) | (30.0) | (33.7) | |||
| Adjusted revenue | 394.2 | 427.7 | 545.3 | |||
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| Reconciliation of operating expenses to adjusted operating expenses | | |||||
| Operating expenses | 392.2 | 411.6 | 439.1 | |||
| Long-term incentive plans2 | (2.4) | (3.6) | 0.1 | |||
| Distribution expenses1 | (118.7) | | (127.8) | | (142.1) | |
| General, administration and occupancy2 | (1.7) | (1.1) | (2.9) | |||
| Depreciation and amortisation3 | (0.6) | (0.7) | (1.9) | |||
| Adjusted operating expenses | 268.8 | 278.4 | 292.3 | |||
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| Adjusted operating income | 125.4 | 149.3 | 253.0 | |||
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| Operating margin | 23.5 | % | 25.9 | % | 36.1 | % |
| Adjusted operating margin | 31.8 | % | 34.9 | % | 46.4 | % |
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| Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG | ||||||
| Net income attributable to JHG | 107.6 | 96.2 | 196.8 | |||
| Long-term incentive plans2 | 2.4 | 3.6 | (0.1) | |||
| General, administration and occupancy2 | 1.7 | 1.1 | 2.9 | |||
| Depreciation and amortisation3 | 0.6 | 0.7 | 1.9 | |||
| Other non-operating income (expense), net4 | (10.3) | 3.0 | (1.6) | |||
| Income tax benefit (provision)5 | (0.9) | 0.3 | (0.4) | |||
| Adjusted net income attributable to JHG | 101.1 | **** | 104.9 | **** | 199.5 | **** |
| Less: allocation of earnings to participating stock-based awards | (3.3) | (3.3) | (5.5) | |||
| Adjusted net income attributable to JHG common shareholders | 97.8 | **** | 101.6 | **** | 194.0 | **** |
| | | | | | | |
| Weighted-average diluted common shares outstanding – diluted (two class) (in millions) | 160.9 | 162.2 | 167.8 | |||
| Diluted earnings per share (two class) (in US) | 0.65 | **** | 0.57 | **** | 1.14 | **** |
| Adjusted diluted earnings per share (two class) (in US) | 0.61 | **** | 0.63 | **** | 1.16 | **** |
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. |
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| 2 | Adjustments for the three months ended 30 September 2022 and 30 June 2022 consist primarily of long-term incentive plan expense acceleration related to the departure of certain employees and rent expense for subleased office space. Adjustments for the three months ended 30 September 2021 consist primarily of rent expense for subleased office space. JHG management believes these costs do not represent our ongoing operations. |
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| 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. JHG management believes these non-cash and acquisition-related costs are not representative of the ongoing operations of the Group. |
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| 4 | Adjustments for the three months ended 30 September 2022 and 30 June 2022 primarily relate to accumulated foreign currency translation expense related to liquidated JHG entities and rental income from subleased office space. Adjustments for the three months ended 30 September 2021 consist primarily of rental income from subleased office space. JHG management believes these costs are not representative of our ongoing operations. |
| --- | --- |
| 5 | The tax impact of the adjustments is calculated based on the applicable US or foreign statutory tax rate as it relates to each adjustment. Certain adjustments are either not taxable or not tax-deductible. |
| --- | --- |
Condensed consolidated balance sheets (unaudited)
| | | | |
|---|---|---|---|
| | 30 Sep | | 31 Dec |
| (in US millions) | 2022 | **** | 2021 |
| Assets: | |||
| Cash and cash equivalents | 1,022.9 | | 1,107.3 |
| Investment securities | 284.1 | | 451.4 |
| Property, equipment and software, net | 49.0 | | 63.3 |
| Intangible assets and goodwill, net | 3,631.5 | | 3,917.0 |
| Assets of consolidated variable interest entities | 239.7 | | 264.3 |
| Other assets | 896.9 | | 924.2 |
| Total assets | 6,124.1 | **** | 6,727.5 |
| | | | |
| Liabilities, redeemable noncontrolling interests and equity: | | ||
| Long-term debt | 308.2 | | 310.4 |
| Deferred tax liabilities, net | 597.5 | | 619.2 |
| Liabilities of consolidated variable interest entities | 5.1 | | 2.6 |
| Other liabilities | 814.4 | | 968.7 |
| Redeemable noncontrolling interests | 153.1 | | 163.4 |
| Total equity | 4,245.8 | | 4,663.2 |
| Total liabilities, redeemable noncontrolling interests and equity | 6,124.1 | | 6,727.5 |
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) | 2022 | **** | 2022 | **** | 2021 |
| Cash provided by (used for): | |||||
| Operating activities | 221.9 | | 162.9 | | 319.4 |
| Investing activities | 51.8 | | 76.1 | | (222.9) |
| Financing activities | (64.5) | | (135.9) | | (112.9) |
| Effect of exchange rate changes | (47.2) | | (42.8) | | (16.3) |
| Net change during period | 162.0 | | 60.3 | | (32.7) |
All values are in US Dollars.
Page | 8
STATUTORY DISCLOSURES
Associates and joint ventures
At 30 September 2022, 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 2021, 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, but not limited to, recent changes in 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 Janus Henderson Group’s Annual Report on Form 10-K for the fiscal year ended 31 December 2021 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 US LLC.
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 27 October 2022<br>THIRD QUARTER 2022 RESULTS<br>Ali Dibadj<br>Chief Executive Officer<br>Roger Thompson<br>Chief Financial Officer |
|---|
| 2<br>1<br>Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on s<br>li<br>de 32.<br>2<br>See the US GAAP Statement of Income on slide 37 for detail on the revision to Q2 2022 diluted EPS on a GAAP basis.<br>3<br>See adjusted financial measures reconciliation on slides 38 and 39 for additional information.<br>Key metrics<br>–<br>Q3 2022 vs Q2 2022<br>Q3 2022 RESULTS<br>▪<br>Long<br>-<br>term investment<br>performance remains solid<br>▪<br>AUM decreased 8% due to<br>markets, FX, and net outflows<br>▪<br>US GAAP diluted EPS of US$0.65<br>and adjusted diluted EPS of<br>US$0.61<br>▪<br>Declared US$0.39 per share<br>dividend<br>Q3 2022<br>Q2 2022<br>3<br>-<br>year investment<br>out<br>performance<br>¹<br>64%<br>60%<br>Net flows<br>US$(5.8)bn<br>US$(7.8)bn<br>Total AUM<br>US$274.6bn<br>US$299.7bn<br>US<br>GAAP diluted<br>EPS<br>2<br>US$0.65<br>US$0.57<br>Adjusted diluted EPS<br>3<br>US$0.61<br>US$0.63<br>D<br>ividend per share<br>US$0.39<br>US$0.39 |
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| 3<br>Note:<br>Full performance disclosures detailed in the appendix on slides 32 and 33.<br>The top two Morningstar quartiles represent funds in the top half of their category based on total return. The top quartile r<br>ep<br>resents those in the top 25%.<br>Refer to slide<br>33<br>for the percent of funds in the top 2 quartiles for all periods and description and quantity of funds included in the analysi<br>s;<br>refer to slides<br>34<br>to<br>36<br>for distribution across first and second quartiles.<br>Past performance is no guarantee of future results.<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles<br>As at 30 Sep 22<br>% of AUM outperforming benchmark<br>As at 30 Sep 22<br>▪<br>Top Morningstar quartile mutual fund AUM of 40% and 52% on a 3<br>-<br>and 5<br>-<br>year basis, respectively,<br>as at 30<br>September<br>2022<br>Long<br>-<br>term investment performance remains solid<br>Capability<br>1<br>-<br>year<br>3<br>-<br>year<br>5<br>-<br>year<br>10<br>-<br>year<br>Equities<br>61%<br>38%<br>71%<br>90%<br>Fixed<br>Income<br>36%<br>61%<br>76%<br>85%<br>Multi<br>-<br>Asset<br>96%<br>92%<br>92%<br>96%<br>Alternatives<br>89%<br>95%<br>67%<br>100%<br>Total<br>66%<br>53%<br>76%<br>91%<br>Capability<br>1<br>-<br>year<br>3<br>-<br>year<br>5<br>-<br>year<br>10<br>-<br>year<br>Equities<br>42%<br>50%<br>51%<br>64%<br>Fixed<br>Income<br>43%<br>76%<br>89%<br>90%<br>Multi<br>-<br>Asset<br>94%<br>96%<br>96%<br>99%<br>Alternatives<br>29%<br>100%<br>100%<br>100%<br>Total<br>50%<br>64%<br>67%<br>75% |
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| 4<br>14.5<br>22.9<br>20.5<br>18.2<br>15.9<br>19.2<br>17.7<br>16.4<br>11.4<br>(17.3)<br>(20.6)<br>(21.7)<br>(19.4)<br>(16.7)<br>(20.2)<br>(23.9)<br>(24.2)<br>(17.2)<br>(2.8)<br>2.3<br>(1.2)<br>(1.2)<br>(0.8)<br>(1.0)<br>(6.2)<br>(7.8)<br>(5.8)<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Total flows<br>(US$bn)<br>Redemptions<br>Sales<br>Net sales / (redemptions)<br>19%<br>29%<br>23%<br>20%<br>16%<br>20%<br>18% 18%<br>15%<br>Annualised gross sales<br>²<br>Annualised gross redemptions<br>²<br>QUARTERLY FLOWS<br>1<br>Lower gross sales and redemptions in retail reflect market uncertainty<br>(23%)<br>(26%)<br>(24%)<br>(21%)<br>(17%)<br>(21%)<br>(25%) (27%)<br>(23%)<br>1<br>Net flows across all time periods exclude Intech, the sale of which was completed 31 March 2022.<br>2<br>Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. |
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| 5<br>2.4<br>4.2<br>3.1<br>6.5<br>3.0<br>(3.9)<br>(4.3)<br>(6.8)<br>(7.7)<br>(5.6)<br>(1.5)<br>(0.1)<br>(3.6)<br>(1.2)<br>(2.6)<br>Q3<br>2021<br>Q4<br>2021<br>Q1<br>2022<br>Q2<br>2022<br>Q3<br>2022<br>12.8<br>14.0<br>14.0<br>9.5<br>8.1<br>(11.6)<br>(14.1)<br>(15.6)<br>(15.2)<br>(10.6)<br>1.2<br>(0.1)<br>(1.7)<br>(5.7)<br>(2.5)<br>Q3<br>2021<br>Q4<br>2021<br>Q1<br>2022<br>Q2<br>2022<br>Q3<br>2022<br>0.7<br>1.0<br>0.6<br>0.4<br>0.3<br>(1.2)<br>(1.7)<br>(1.5)<br>(1.3)<br>(1.0)<br>(0.6)<br>(0.8)<br>(0.9)<br>(0.9)<br>(0.7)<br>Q3<br>2021<br>Q4<br>2021<br>Q1<br>2022<br>Q2<br>2022<br>Q3<br>2022<br>Intermediary<br>(US$bn)<br>FLOWS BY CLIENT TYPE<br>1<br>Redemptions<br>Sales<br>Net sales / (redemptions)<br>Institutional<br>(US$bn)<br>10%<br>19%<br>14%<br>32%<br>17%<br>25%<br>27%<br>27%<br>19%<br>20%<br>3%<br>4%<br>3%<br>2%<br>2%<br>(17%)<br>(19%)<br>(30%)<br>(38%)<br>(32%)<br>(22%)<br>(27%)<br>(30%)<br>(31%)<br>(26%)<br>(6%)<br>(8%)<br>(7%)<br>(7%)<br>(6%)<br>Annualised gross redemptions<br>²<br>Annualised gross sales<br>²<br>Self<br>-<br>Directed<br>(US$bn)<br>Lower gross sales and redemptions in retail reflect market uncertainty<br>Note:<br>Numbers may not cast due to rounding.<br>1<br>Net flows across all time periods exclude Intech, the sale of which was completed 31 March 2022.<br>2<br>Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM. |
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| 6<br>4.8<br>4.4<br>1.5<br>0.7<br>(8.9)<br>(5.6)<br>(1.7)<br>(1.0)<br>(4.1)<br>(1.2)<br>(0.2)<br>(0.3)<br>Equities<br>Fixed Income<br>Multi-Asset<br>Alternatives<br>Annualised gross sales¹<br>Redemptions<br>Sales<br>Net sales / (redemptions)<br>11%<br>27%<br>13%<br>23%<br>Annualised gross redemptions¹<br>(20%)<br>(34%)<br>(15%)<br>(34%)<br>Q3 2022 flows by capability<br>(US$bn)<br>1<br>Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>FLOWS BY CAPABILITY<br>Net outflows across all capabilities primarily driven by market uncertainty<br>and short<br>-<br>term underperformance in key strategies |
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| 7<br>US GAAP FINANCIAL RESULTS<br>Note:<br>See US GAAP Statement of Income on slide 37 for detail, including detail on the revision to Q2 2022 diluted EPS on a GAAP<br>basis.<br>(US$m, except per share data or as noted)<br>Q3 2022<br>Q2 2022<br>Change<br>Q3 2022 vs<br>Q2 2022<br>Q3 2021<br>Change<br>Q3 2022 vs<br>Q3 2021<br>Revenue<br>Management fees<br>426.2<br>453.6<br>(6%)<br>564.5<br>(24%)<br>Performance fees<br>(13.2)<br>(3.4)<br>nm<br>0.6<br>nm<br>Shareowner servicing fees<br>54.0<br>56.3<br>(4%)<br>67.6<br>(20%)<br>Other revenue<br>45.9<br>49.0<br>(6%)<br>54.7<br>(16%)<br>Total revenue<br>512.9<br>555.5<br>(8%)<br>687.4<br>(25%)<br>Operating expenses<br>Employee compensation and benefits<br>142.5<br>145.0<br>(2%)<br>166.2<br>(14%)<br>Long-term incentive plans<br>41.1<br>40.7<br>1%<br>35.0<br>17%<br>Distribution expenses<br>118.7<br>127.8<br>(7%)<br>142.1<br>(16%)<br>Investment administration<br>12.5<br>10.3<br>21%<br>13.0<br>(4%)<br>Marketing<br>5.6<br>7.8<br>(28%)<br>7.5<br>(25%)<br>General, administrative and occupancy<br>64.7<br>72.3<br>(11%)<br>65.5<br>(1%)<br>Depreciation and amortisation<br>7.1<br>7.7<br>(8%)<br>9.8<br>(28%)<br>Total operating expenses<br>392.2<br>411.6<br>(5%)<br>439.1<br>(11%)<br>Operating income<br>120.7<br>143.9<br>(16%)<br>248.3<br>(51%)<br>Operating margin<br>23.5%<br>25.9%<br>(2.4ppt)<br>36.1%<br>(12.6ppt)<br>Diluted EPS (in US$)<br>0.65<br>0.57<br>14%<br>1.14<br>(43%) |
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| 8<br>ADJUSTED FINANCIAL RESULTS<br>Note:<br>See adjusted financial measures reconciliation on slides 38 and 39 for additional information.<br>1<br>Net margin is based on management fees net of distribution expenses and excludes Intech. Including Intech, average net mgmt.<br>fe<br>e margin for Q3 2021<br>was 47.0bps.<br>(US$m, except per share data or as noted)<br>Q3 2022<br>Q2 2022<br>Change<br>Q3 2022 vs<br>Q2 2022<br>Q3 2021<br>Change<br>Q3 2022 vs<br>Q3 2021<br>Revenue<br>Management fees<br>380.2<br>402.7<br>(6%)<br>511.5<br>(26%)<br>Performance fees<br>(13.2)<br>(3.4)<br>nm<br>0.6<br>nm<br>Shareowner servicing fees<br>10.3<br>9.4<br>10%<br>12.2<br>(16%)<br>Other revenue<br>16.9<br>19.0<br>(11%)<br>21.0<br>(20%)<br>Total adjusted revenue<br>394.2<br>427.7<br>(8%)<br>545.3<br>(28%)<br>Operating expenses<br>Employee compensation and benefits<br>142.5<br>145.0<br>(2%)<br>166.2<br>(14%)<br>Long-term incentive plans<br>38.7<br>37.1<br>4%<br>35.1<br>10%<br>Investment administration<br>12.5<br>10.3<br>21%<br>13.0<br>(4%)<br>Marketing<br>5.6<br>7.8<br>(28%)<br>7.5<br>(25%)<br>General, administrative and occupancy<br>63.0<br>71.2<br>(12%)<br>62.6<br>1%<br>Depreciation and amortisation<br>6.5<br>7.0<br>(7%)<br>7.9<br>(18%)<br>Total adjusted operating expenses<br>268.8<br>278.4<br>(3%)<br>292.3<br>(8%)<br>Adjusted operating income<br>125.4<br>149.3<br>(16%)<br>253.0<br>(50%)<br>Adjusted operating margin<br>31.8%<br>34.9%<br>(3.1ppt)<br>46.4%<br>(14.6ppt)<br>Adjusted diluted EPS (US$)<br>0.61<br>0.63<br>(3%)<br>1.16<br>(47%)<br>Adjusted compensation ratio<br>46.0%<br>42.6%<br>3.4ppt<br>36.9%<br>9.1ppt<br>Average AUM (US$bn)<br>305.0<br>328.5<br>(7%)<br>431.9<br>(29%)<br>Average net<br>1<br> mgmt fee margin (bps)<br>49.5<br>49.2<br>0.3<br>50.4<br>(0.9) |
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| 9<br>Q3 2022 ADJUSTED FINANCIAL HIGHLIGHTS<br>Adjusted<br>Revenue<br>▪<br>Decline from Q2 2022 adjusted revenue driven primarily by lower<br>average AUM and performance fees<br>▪<br>At current investment performance, estimated aggregate performance<br>fee range for full<br>-<br>year 2022 is US$(38)m to US$(42)m<br>Adjusted<br>Expenses<br>▪<br>Lower operating expenses driven by lower compensation, marketing<br>and G&A expenses<br>▪<br>Refined full<br>-<br>year 2022 expense expectations<br>▪<br>Adjusted compensation ratio range of 44<br>-<br>45%<br>▪<br>Adjusted non<br>-<br>compensation annual growth of low<br>-<br>single digits<br>▪<br>Statutory tax rate of 23<br>-<br>25%<br>Adjusted<br>Operating Income<br>& Adjusted Diluted<br>EPS<br>▪<br>Decline in operating income from Q2 2022 primarily due to lower<br>average assets affecting both revenue and expenses<br>▪<br>Decline in adjusted diluted EPS from Q2 2022 primarily due to lower<br>operating income partially offset by investment gains |
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| 10<br>COST DISCIPLINE AND ‘FUEL FOR GROWTH’<br>Maintaining expense discipline whilst investing for growth<br>▪<br>We have maintained a high degree of financial operating leverage with<br>continuous cost discipline, balanced with strategic investments in our business<br>▪<br>We have performed an extensive review of our expense model and are actioning<br>US$40m to US$45m in gross ‘Fuel for Growth’ cost efficiencies<br>▪<br>We expect to realise approximately one third of gross run<br>-<br>rate efficiencies in Q4 2022 and<br>the remaining gross run<br>-<br>rate efficiencies by the end of 2023<br>▪<br>Gross efficiencies will come from an equal split between compensation and non<br>-<br>compensation expenses<br>▪<br>Non<br>-<br>recurring implementation charges associated with delivering gross cost efficiencies<br>are expected to be in the range of US$30m to US$35m<br>▪<br>The gross cost efficiencies will be offset by investments in our business and<br>infrastructure to fuel growth; however, the timing may not happen concurrently,<br>and thus quarterly margin progression may not be linear |
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| 11<br>CAPITAL RESOURCES<br>Strong liquidity position<br>▪<br>Cash and investment securities<br>1<br>totalled US$1,370m compared to<br>outstanding debt of US$308m<br>▪<br>Decrease in investments primarily<br>due to lower global markets<br>▪<br>Board declared a dividend of<br>US$0.39 per share to be paid on<br>23 November to shareholders on<br>record at the close of business on<br>7<br>November<br>Balance sheet profile<br>–<br>carrying value<br>30 Jun 22 vs. 30 Sep 22<br>(US$m)<br>Investment securities¹<br>Cash and cash equivalents¹<br>2025 maturity<br>30 Sep 22<br>30 Jun 22<br>1<br>Cash and cash equivalents exclude cash associated with consolidated VIEs and VREs, and investment securities exclude non<br>-<br>control<br>ling interests.<br>847.6<br>1,017.6<br>393.2<br>352.7<br>1,240.8<br>1,370.3<br>308.9<br>308.2<br>Cash and<br>investments<br>Debt<br>Cash and<br>investments<br>Debt |
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| STRATEGY UPDATE |
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| 13<br>STRATEGY UPDATE<br>Last earnings call, we started talking strategy |
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| 14<br>Since then, a team of senior leaders from around the firm have identified<br>and<br>prioritised<br>strategic opportunities<br>15<br>prioritised<br>Advanced<br>25<br>to be<br>profiled and evaluated<br>Clustered into<br>50<br>distinct<br>opportunities<br>200<br>ideas captured<br><10<br>planned<br>execution<br>STRATEGY UPDATE |
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| 15<br>STRATEGY UPDATE<br>We brought the client voice purposefully into our process<br>I<br>1.<br>Higher client<br>expectations<br>for<br>differentiated<br>products<br>2.<br>Greater client<br>service<br>desires<br>3.<br>Faster client<br>growth<br>outside<br>traditional<br>markets<br>4.<br>Formation of<br>new asset<br>classes<br>5.<br>Technological<br>change<br>Opportunity 1<br>✓<br>✓<br>Opportunity 2<br>✓<br>✓<br>✓<br>Opportunity 3<br>✓<br>✓<br>Opportunity 4<br>✓<br>✓<br>Opportunity 5<br>✓<br>✓<br>Additional<br>Opportunities…<br>Illustrative |
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| 16<br>STRATEGY UPDATE<br>Opportunities were evaluated along two dimensions: Right to Win and<br>Future Client/Industry Importance<br>Low<br>High<br>Low High<br>Future Client/Industry Importance<br>Janus Henderson Right to Win<br>Illustrative<br>Opportunity<br>Opportunity<br>Opportunity<br>Opportunity<br>Opportunity<br>Opportunity<br>Opportunity<br>Opportunity<br>Opportunity |
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| 17<br>EXPANDING ADDRESSABLE MARKET<br>We operate in large markets and are strategically expanding into large<br>asset categories to increase addressable assets<br>Current State<br>Note:<br>‘TAM’ is ‘Total Addressable Market’.<br>Sources:<br>BCG Global Asset Management Market Sizing 2022; BCG Global Asset Management Benchmarking 2022;<br>Strategic Insight; P&I; ICI;<br>Preqin<br>; HFR; INREV; BCG analysis; and JHG analysis and estimates.<br>TAM:<br>~US$40tn<br>TAM:<br>~US$80tn+<br>JHG:<br>US$275bn<br>Future State<br>(Now + Future<br>Initiatives)<br>JHG<br>Illustrative |
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| 18<br>EARLY STRATEGIC FRAMEWORK<br>We built upon the early strategic framework outlined on last earnings call<br>Protect & Grow<br>o<br>ur core businesses<br>Amplify<br>strengths not fully<br>leveraged<br>Diversify<br>where clients give us<br>the right to win<br>▪<br>Janus Henderson US mutual fund sales are<br><1% of industry gross sales…<br>▪<br>…and we have good performing but smaller<br>strategies that could take market share<br>▪<br>Our research, portfolio management, and<br>client service strengths can be amplified with<br>adjacent products, channels, geographies,<br>and vehicles<br>▪<br>We have capability white spaces where our<br>clients are seeking solutions from us<br>▪<br>New capabilities can open new client types |
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| 19<br>PROTECT AND GROW: Reinvesting in US Intermediary<br>US Intermediary is our largest client segment; the market is highly<br>competitive but one of the fastest growing<br>Protect & Grow<br>o<br>ur core businesses<br>Amplify<br>strengths not fully<br>leveraged<br>Diversify<br>where clients give us<br>the right to win<br>▪<br>Over a third of firmwide assets with attractive fees and<br>contribution margin<br>▪<br>Client relationships and current market share support<br>positive net revenue growth<br>▪<br>285 professionals with traditional mutual funds,<br>subadvised<br>assets, ETFs, SMAs, CITs, and VITs<br>▪<br>Strong fundamental active management needed in<br>investor portfolios<br>▪<br>Repositioning to fast growing market segments<br>▪<br>Expanding product and vehicles<br>▪<br>Better brand alignment with market and strategy<br>▪<br>Leveraging existing data for business development<br>▪<br>Improving execution<br>-<br>enhancing<br>organisation<br>structure,<br>aligning of incentives, and defining KPIs<br>Protect and grow US Intermediary…<br>…by investing in |
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| 20<br>1Q16<br>1Q17<br>1Q18<br>1Q19<br>1Q20<br>1Q21<br>1Q22<br>AMPLIFY: New product expansion<br>We have<br>utilised<br>successful product and investment teams to target<br>addressable markets with growth potential<br>Protect & Grow<br>our core businesses<br>Diversify<br>where clients give us<br>the right to win<br>Amplify<br>strengths not fully<br>leveraged<br>Strategy Launches and Product Extensions<br>AUM progression since 2016<br>US$18bn<br>Q3 2022<br>▪<br>Over 80 combined new strategy launches and product extensions<br>(existing strategies in new vehicles and/or domiciles) since 2016<br>▪<br>Approximately half of the strategy launches happened in the last<br>three years, and successful strategies will be amplified<br>▪<br>Client<br>-<br>led growth areas of focus: higher fee and value<br>-<br>add strategies<br>include multi<br>-<br>asset solutions, liquid alternatives, ESG, and differentiated<br>equity and fixed income products<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>2022 |
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| 21<br>DIVERSIFY:<br>History of growing from M&A<br>Bolt<br>-<br>on acquisitions and team lift<br>-<br>outs have played a key role in strategic<br>product development<br>Amplify<br>strengths not fully<br>leveraged<br>Protect & Grow<br>our core businesses<br>Diversify<br>where clients give us<br>the right to win<br>▪<br>We are actively looking at opportunities in<br>targeted areas to fill gaps in our current line<br>-<br>up<br>and expand into new areas in which clients want<br>to work with us (e.g., private credit and insurance)<br>2014<br>2015<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>3Q22<br>US$23bn<br>Q3 2022<br>JHG AUM Added From Bolt<br>-<br>ons and Lift<br>-<br>outs<br>Post<br>-<br>deal AUM progression since 2014<br>EMD<br>2022 |
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| 22<br>EARLY WINS<br>Success will not happen overnight, but energy is continuing to build, and<br>some early wins are appearing<br>▪<br>Early success in EMD with US$500m of AUM anticipated by year end<br>▪<br>Activity levels and client engagement is increasing<br>▪<br>Q3 2022 client interaction in US Intermediary increased more than 25%<br>compared to the same period last year<br>▪<br>Positive consultant engagement is expanding across key strategies with<br>consultant meetings up 33% compared to 2021 and consultant<br>-<br>advised<br>inflows at 2x the rate of last year’s levels<br>▪<br>We rank second in year<br>-<br>to<br>-<br>date US active ETF fixed income inflows, with<br>US$1.2bn in positive net flows<br>▪<br>Board changes are bringing renewed energy, new insights, and varied expertise<br>▪<br>Identified cost savings will provide the ‘Fuel for Growth’ to allow us to invest in<br>the business, which should improve our growth trajectory over time |
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| 23<br>SUMMARY<br>We believe our strategy will lead to organic revenue growth over time<br>Historical JHG<br>Future JHG<br>Organic Growth<br>Protect &<br>Grow<br>o<br>ur core<br>businesses<br>Amplify<br>strengths not<br>fully<br>leveraged<br>Diversify<br>where clients<br>give us the<br>right to win<br>Time<br>Illustrative |
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| Q&A |
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| APPENDIX |
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| 26<br>ASSETS UNDER MANAGEMENT<br>AUM as at 30 September 2022: US$274.6bn<br>59%<br>21%<br>16%<br>4%<br>Equities<br>Fixed Income<br>Multi-Asset<br>Alternatives<br>55%<br>23%<br>22%<br>Intermediary<br>Institutional<br>Self-Directed<br>59%<br>30%<br>11%<br>North America<br>EMEA & LatAm<br>Asia Pacific<br>By client type<br>By capability<br>By client location<br>US$161.8bn<br>US$58.5bn<br>US$43.8bn<br>US$10.5bn<br>US$152.0bn<br>US$61.9bn<br>US$60.7bn<br>US$161.5bn<br>US$82.3bn<br>US$30.8bn |
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| 27<br>INVESTMENT MANAGEMENT CAPABILITIES<br>Diversified product range<br>Equities<br>US$161.8bn<br>AUM<br>30 Sep 22<br>US$274.6bn<br>Fixed Income<br>US$58.5bn<br>Multi<br>-<br>Asset<br>US$43.8bn<br>Self<br>-<br>Directed<br>Intermediary<br>Intermediary<br>Institutional<br>Institutional<br>Alternatives<br>US$10.5bn<br>Intermediary<br>Equities<br>▪<br>Wide range of equity strategies<br>encompassing different geographic<br>focuses and investment styles<br>Fixed Income<br>▪<br>Innovative and differentiated techniques<br>designed to support clients as they<br>navigate each unique economic cycle<br>Multi<br>-<br>Asset<br>▪<br>Provides a range of diversified core<br>investment solutions with the aim of<br>delivering attractive returns over the long<br>term with lower levels of volatility<br>Alternatives<br>▪<br>Investment solutions aimed at delivering<br>specific outcomes tailored to meet the<br>needs and constraints of clients |
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| 28<br>Capability<br>Strategy<br>AUM<br>(US$bn)<br>30 Sep 22<br>US Mid Cap Growth<br>21.2<br>US Concentrated Growth<br>19.5<br>US Research Growth Equity<br>14.7<br>Global Life Sciences<br>11.1<br>US SMID Cap Growth<br>7.5<br>Absolute Return Income<br>8.0<br>Global Strategic Fixed Income<br>7.1<br>Australian Fixed Income<br>6.0<br>Core Plus Fixed Income<br>4.9<br>Sterling Buy & Maintain Credit<br>3.2<br>Balanced<br>37.9<br>UK Cautious Managed<br>0.9<br>Adaptive Portable Alpha<br>0.6<br>Protective Life Dynamic Allocation Series - Moderate<br>0.5<br>Global Adaptive Tail Risk Hedge<br>0.5<br>Absolute Return Equity<br>3.8<br>Global Commodities Enhanced Index<br>3.0<br>Multi Strategy<br>1.6<br>Europe Large Cap Long/Short<br>0.5<br>Concentrated Pan Europe Equity<br>0.3<br>Total<br>153.0<br>Equity<br>Fixed Income<br>Multi-Asset<br>Alternatives<br>LARGEST STRATEGIES BY CAPABILITY<br>Note:<br>Numbers may not cast due to rounding. |
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| 29<br>7.5<br>8.1<br>8.5<br>5.5<br>4.8<br>(10.1)<br>(11.3)<br>(12.3)<br>(11.3)<br>(8.9)<br>(2.6)<br>(3.2)<br>(3.8)<br>(5.8)<br>(4.1)<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Equities<br>(US$bn)<br>1<br>Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>QUARTERLY FLOWS BY CAPABILITY<br>Equities and Fixed Income<br>4.7<br>5.6<br>6.0<br>4.9<br>4.4<br>(4.0)<br>(5.5)<br>(6.0)<br>(8.2)<br>(5.6)<br>0.7<br>0.1<br>-<br>(3.3)<br>(1.2)<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>(17%)<br>(19%)<br>(20%)<br>(20%)<br>(20%)<br>Redemptions<br>Sales<br>Net sales / (redemptions)<br>Annualised gross redemptions¹<br>12%<br>14%<br>14%<br>10%<br>11%<br>23%<br>28%<br>31%<br>26%<br>27%<br>(19%)<br>(28%)<br>(31%)<br>(44%)<br>(34%)<br>Fixed Income<br>(US$bn)<br>Annualised gross sales¹ |
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| 30<br>2.6<br>4.3<br>2.3<br>1.6<br>1.5<br>(1.8)<br>(2.2)<br>(4.5)<br>(2.5)<br>(1.7)<br>0.8<br>2.1<br>(2.2)<br>(0.9)<br>(0.2)<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Multi<br>-<br>Asset<br>(US$bn)<br>1<br>Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>QUARTERLY FLOWS BY CAPABILITY<br>Multi<br>-<br>Asset and Alternatives<br>1.1<br>1.2<br>0.9<br>4.4<br>0.7<br>(0.8)<br>(1.2)<br>(1.1)<br>(2.2)<br>(1.0)<br>0.3<br>-<br>(0.2)<br>2.2<br>(0.3)<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>(14%)<br>(16%)<br>(31%)<br>(18%)<br>(15%)<br>Redemptions<br>Sales<br>Net sales / (redemptions)<br>Annualised gross redemptions¹<br>20%<br>31%<br>16%<br>12%<br>13%<br>42%<br>44%<br>36%<br>169%<br>23%<br>(30%)<br>(43%)<br>(42%)<br>(85%)<br>(34%)<br>Alternatives<br>(US$bn)<br>Annualised gross sales¹ |
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| 31<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Equities<br>Fixed Income<br>Multi-Asset<br>Alternatives<br>Total net flows by capability<br>(US$bn)<br>NET FLOWS BY CAPABILITY<br>¹<br>(2.8)<br>2.3<br>(1.2)<br>(1.2)<br>(0.8)<br>(1.0)<br>(6.2)<br>(7.8)<br>1<br>Net flows across all time periods exclude Intech, the sale of which was completed 31 March 2022.<br>(5.8) |
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| 32<br>Capability<br>1yr<br>3yr<br>5yr<br>10yr<br>1yr<br>3yr<br>5yr<br>10yr<br>1yr<br>3yr<br>5yr<br>10yr<br>1yr<br>3yr<br>5yr<br>10yr<br>Equities<br>39%<br>37%<br>68%<br>81%<br>32%<br>44%<br>61%<br>76%<br>41%<br>43%<br>47%<br>63%<br>42%<br>50%<br>51%<br>64%<br>Fixed Income<br>91%<br>96%<br>96%<br>98%<br>68%<br>97%<br>96%<br>99%<br>45%<br>79%<br>93%<br>99%<br>43%<br>76%<br>89%<br>90%<br>Multi-Asset<br>99%<br>96%<br>96%<br>97%<br>95%<br>96%<br>96%<br>99%<br>93%<br>95%<br>95%<br>99%<br>94%<br>96%<br>96%<br>99%<br>Alternatives<br>91%<br>100%<br>100%<br>100%<br>92%<br>100%<br>100%<br>100%<br>31%<br>100%<br>100%<br>100%<br>29%<br>100%<br>100%<br>100%<br>Total<br>58%<br>58%<br>78%<br>86%<br>50%<br>62%<br>74%<br>83%<br>50%<br>60%<br>65%<br>76%<br>50%<br>64%<br>67%<br>75%<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Note:<br>Outperformance is measured based on composite performance gross of fees vs primary benchmark, except where a strategy has<br>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 retu<br>rn<br>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<br>-<br>discretionary and separately managed account assets are included with a corresponding composite where applicable.<br>Cash management vehicles, ETF<br>-<br>enhanced beta strategies, Managed CDOs, Private Equity funds and custom non<br>-<br>discretionary account<br>s with no<br>corresponding composite are excluded from the analysis.<br>Excluded assets represent 5% of AUM across all time periods. Capabilities defined by Janus Henderson.<br>Performance across all time periods excludes Intech, the sale of which was completed 31 March 2022.<br>INVESTMENT PERFORMANCE<br>% of AUM outperforming benchmark |
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| 33<br>Capability<br>1yr<br>3yr<br>5yr<br>10yr<br>1yr<br>3yr<br>5yr<br>10yr<br>1yr<br>3yr<br>5yr<br>10yr<br>1yr<br>3yr<br>5yr<br>10yr<br>Equities<br>54%<br>51%<br>52%<br>86%<br>53%<br>52%<br>68%<br>86%<br>56%<br>52%<br>71%<br>88%<br>61%<br>38%<br>71%<br>90%<br>Fixed Income<br>64%<br>81%<br>75%<br>70%<br>47%<br>85%<br>83%<br>83%<br>45%<br>68%<br>81%<br>84%<br>36%<br>61%<br>76%<br>85%<br>Multi-Asset<br>95%<br>93%<br>93%<br>94%<br>97%<br>92%<br>92%<br>99%<br>98%<br>95%<br>92%<br>96%<br>96%<br>92%<br>92%<br>96%<br>Alternatives<br>50%<br>34%<br>100%<br>100%<br>62%<br>30%<br>75%<br>100%<br>62%<br>95%<br>70%<br>100%<br>89%<br>95%<br>67%<br>100%<br>Total<br>63%<br>61%<br>64%<br>86%<br>61%<br>63%<br>75%<br>89%<br>63%<br>64%<br>76%<br>90%<br>66%<br>53%<br>76%<br>91%<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>INVESTMENT PERFORMANCE<br>Note:<br>Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Henderson Capital Funds (Du<br>blin 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<br>-<br>, 3<br>-<br>, 5<br>-<br>a<br>nd 10<br>-<br>year periods ending<br>30<br>September 2022, 54%, 53%, 60% and 68% of the 189, 179, 174 and 152 total mutual funds, respectively, were in the top 2 Mornin<br>gstar quartiles.<br>Analysis based on ‘primary’ share class (Class<br>I Shares, Institutional Shares or share class with longest history for US Trusts<br>; 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 b<br>y s<br>hare 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 methodol<br>ogy<br>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<br>exp<br>ense 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. © 2022 Morn<br>in<br>gstar, Inc. All Rights<br>Reserved.<br>Performance across all time periods excludes Intech, the sale of which was completed 31 March 2022.<br>% of mutual fund AUM in top 2 Morningstar quartiles |
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| 34<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles (continued)<br>Group<br>24<br>38<br>22<br>23<br>44<br>45<br>37<br>40<br>45<br>46<br>51<br>52<br>60<br>56<br>60<br>51<br>38<br>23<br>41<br>43<br>17<br>19<br>27<br>13<br>19<br>29<br>26<br>24<br>26<br>33<br>30<br>40<br>63<br>61<br>63<br>66<br>61<br>63<br>64<br>53<br>64<br>75<br>76<br>76<br>86<br>89<br>90<br>91<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>1<br>-<br>year<br>3<br>-<br>year<br>5<br>-<br>year<br>10<br>-<br>year<br>Note:<br>Full performance disclosures detailed on slide 33. Numbers may not cast due to rounding.<br>Performance across all time periods excludes Intech, the sale of which was completed 31 March 2022.<br>2<br>nd<br>quartile<br>1<br>st<br>quartile |
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| 35<br>8<br>28<br>30<br>30<br>30<br>33<br>23<br>27<br>29<br>30<br>37<br>41<br>52<br>49<br>51<br>40<br>46<br>25<br>26<br>31<br>21<br>19<br>30<br>11<br>23<br>38<br>34<br>31<br>34<br>37<br>37<br>50<br>54<br>53<br>56<br>61<br>51<br>52<br>52<br>38<br>52<br>68<br>71<br>71<br>86<br>86<br>88<br>90<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles (continued)<br>2<br>nd<br>quartile<br>1<br>st<br>quartile<br>21<br>21<br>14<br>15<br>61<br>40<br>35<br>31<br>55<br>60<br>57<br>49<br>46<br>29<br>42<br>41<br>43<br>25<br>32<br>22<br>19<br>45<br>34<br>30<br>21<br>24<br>24<br>27<br>23<br>54<br>42<br>44<br>64<br>47<br>45<br>36<br>81<br>85<br>68<br>61<br>75<br>83<br>81<br>76<br>70<br>83<br>84<br>85<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>1<br>-<br>year<br>3<br>-<br>year<br>5<br>-<br>year<br>10<br>-<br>year<br>Note:<br>Full performance disclosures detailed on slide 33. Numbers may not cast due to rounding.<br>Fixed Income<br>Equities<br>1<br>-<br>year<br>3<br>-<br>year<br>5<br>-<br>year<br>10<br>-<br>year |
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| 36<br>92<br>91<br>2<br>2<br>92<br>91<br>91<br>92<br>92<br>92<br>91<br>92<br>94<br>94<br>94<br>94<br>4<br>5<br>96<br>94<br>1<br>1<br>4<br>0<br>1<br>1<br>1<br>1<br>1<br>5<br>2<br>2<br>95<br>97<br>98<br>96<br>93<br>92<br>95<br>92<br>93<br>92<br>92<br>92<br>94<br>99<br>96<br>96<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>2<br>6<br>16<br>44<br>8<br>25<br>7<br>12<br>64<br>61<br>56<br>52<br>71<br>71<br>89<br>57<br>48<br>56<br>46<br>45<br>26<br>4<br>88<br>83<br>36<br>15<br>15<br>14<br>29<br>29<br>11<br>43<br>50<br>62<br>62<br>89<br>34<br>30<br>95<br>95<br>100<br>75<br>70<br>67<br>100<br>100<br>100<br>100<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles (continued)<br>Alternatives<br>2<br>nd<br>quartile<br>1<br>st<br>quartile<br>1<br>-<br>year<br>3<br>-<br>year<br>5<br>-<br>year<br>10<br>-<br>year<br>Note:<br>Full performance disclosures detailed on slide 33. Numbers may not cast due to rounding.<br>Multi<br>-<br>Asset<br>1<br>-<br>year<br>3<br>-<br>year<br>5<br>-<br>year<br>10<br>-<br>year |
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| 37<br>US GAAP: STATEMENT OF INCOME<br>(US$m, except per share data or as noted)<br>30 Sep 22<br>30 Jun 22<br>30 Sep 21<br>Revenue<br>Management fees<br>426.2<br>453.6<br>564.5<br>Performance fees<br>(13.2)<br>(3.4)<br>0.6<br>Shareowner servicing fees<br>54.0<br>56.3<br>67.6<br>Other revenue<br>45.9<br>49.0<br>54.7<br>Total revenue<br>512.9<br>555.5<br>687.4<br>Operating expenses<br>Employee compensation and benefits<br>142.5<br>145.0<br>166.2<br>Long-term incentive plans<br>41.1<br>40.7<br>35.0<br>Distribution expenses<br>118.7<br>127.8<br>142.1<br>Investment administration<br>12.5<br>10.3<br>13.0<br>Marketing<br>5.6<br>7.8<br>7.5<br>General, administrative and occupancy<br>64.7<br>72.3<br>65.5<br>Depreciation and amortisation<br>7.1<br>7.7<br>9.8<br>Total operating expenses<br>392.2<br>411.6<br>439.1<br>Operating income<br>120.7<br>143.9<br>248.3<br>Interest expense<br>(3.1)<br>(3.2)<br>(3.2)<br>Investment gains (losses), net<br>11.0<br>(109.4)<br>4.7<br>Other non-operating income, net<br>1<br>13.9<br>0.6<br>3.6<br>Income before taxes<br>142.5<br>31.9<br>253.4<br>Income tax provision<br>(27.9)<br>(36.7)<br>(53.3)<br>Net income (loss)<br>114.6<br>(4.8)<br>200.1<br>Net loss (income) attributable to noncontrolling interests<br>(7.0)<br>101.0<br>(3.3)<br>Net income attributable to JHG<br>107.6<br>96.2<br>196.8<br>Less: allocation of earnings to participating stock-based awards<br>(3.3)<br>(3.0)<br>(5.4)<br>Net income attributable to JHG common shareholders<br>104.3<br>93.2<br>191.4<br>Diluted weighted-average shares outstanding (m)<br>160.9<br>162.2<br>167.8<br>Diluted earnings per share (in US$)<br>0.65<br>0.57<br>1.14<br>3 months ended<br>1<br>In the second quarter of 2022, we identified a US$2.3 million error related to the accounting of accumulated other comprehens<br>iv<br>e income associated with the<br>liquidation of certain entities. Foreign currency translation in accumulated other comprehensive income related to liquidated<br>en<br>tities should have been reclassified to<br>other non<br>-<br>operating income (expense), net, on our consolidated statement of comprehensive income in 2020. |
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| 38<br>ALTERNATIVE PERFORMANCE MEASURES<br>Reconciliation of adjusted financial measures<br>Note:<br>Reconciliation to be used in conjunction with slide 39. Footnotes included on slide 40.<br>(US$m, except per share data)<br>30 Sep 22<br>30 Jun 22<br>30 Sep 21<br>Reconciliation of revenue to adjusted revenue<br>Revenue<br>512.9<br>555.5<br>687.4<br>Management fees<br>1<br>(46.0)<br>(50.9)<br>(53.0)<br>Shareowner servicing fees<br>1<br>(43.7)<br>(46.9)<br>(55.4)<br>Other revenue<br>1<br>(29.0)<br>(30.0)<br>(33.7)<br>Adjusted revenue<br>394.2<br>427.7<br>545.3<br>Reconciliation of operating expenses to adjusted operating expenses<br>Operating expenses<br>392.2<br>411.6<br>439.1<br>Long-term incentive plans<br>2<br>(2.4)<br>(3.6)<br>0.1<br>Distribution expenses<br>1<br>(118.7)<br>(127.8)<br>(142.1)<br>General, administrative and occupancy<br>2<br>(1.7)<br>(1.1)<br>(2.9)<br>Depreciation and amortisation<br>3<br>(0.6)<br>(0.7)<br>(1.9)<br>Adjusted operating expenses<br>268.8<br>278.4<br>292.3<br>3 months ended |
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| 39<br>ALTERNATIVE PERFORMANCE MEASURES<br>Reconciliation of adjusted financial measures (continued)<br>Note:<br>Reconciliation to be used in conjunction with slide 38. Footnotes included on slide 40.<br>(US$m, except per share data)<br>30 Sep 22<br>30 Jun 22<br>30 Sep 21<br>Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG<br>Net income attributable to JHG<br>107.6<br>96.2<br>196.8<br>Long-term incentive plans<br>2<br>2.4<br>3.6<br>(0.1)<br>General, administrative and occupancy<br>2<br>1.7<br>1.1<br>2.9<br>Depreciation and amortisation<br>3<br>0.6<br>0.7<br>1.9<br>Other non-operating income (expense), net<br>4<br>(10.3)<br>3.0<br>(1.6)<br>Income tax benefit (provision)<br>5<br>(0.9)<br>0.3<br>(0.4)<br>Adjusted net income attributable to JHG<br>101.1<br>104.9<br>199.5<br>Diluted earnings per share (in US$)<br>0.65<br>0.57<br>1.14<br>Adjusted diluted earnings per share (in US$)<br>0.61<br>0.63<br>1.16<br>3 months ended |
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| 40<br>ALTERNATIVE PERFORMANCE MEASURES<br>Footnotes to reconciliation of adjusted financial measures<br>1<br>JHG<br>contracts<br>with<br>third<br>-<br>party<br>intermediaries<br>to<br>distribute<br>and<br>service<br>certain<br>of<br>its<br>investment<br>products<br>..<br>Fees<br>for<br>distribution<br>and<br>servicing<br>related<br>activities<br>are<br>either<br>provided<br>for<br>separately<br>in<br>an<br>investment<br>product’s<br>prospectus<br>or<br>are<br>part<br>of<br>the<br>management<br>fee<br>..<br>Under<br>both<br>arrangements,<br>the<br>fees<br>are<br>collected<br>by<br>JHG<br>and<br>passed<br>through<br>to<br>third<br>-<br>party<br>intermediaries<br>who<br>are<br>responsible<br>for<br>performing<br>the<br>applicable<br>services<br>..<br>The<br>majority<br>of<br>distribution<br>and<br>servicing<br>fees<br>collected<br>by<br>JHG<br>are<br>passed<br>through<br>to<br>third<br>-<br>party<br>intermediaries<br>..<br>JHG<br>management<br>believes<br>that<br>the<br>deduction<br>of<br>distribution<br>and<br>service<br>fees<br>from<br>revenue<br>in<br>the<br>computation<br>of<br>adjusted<br>revenue<br>reflects<br>the<br>pass<br>-<br>through<br>nature<br>of<br>these<br>revenues<br>..<br>In<br>certain<br>arrangements,<br>JHG<br>performs<br>the<br>distribution<br>and<br>servicing<br>activities<br>and<br>retains<br>the<br>applicable<br>fees<br>..<br>Revenues<br>for<br>distribution<br>and<br>servicing<br>activities<br>performed<br>by<br>JHG<br>are<br>not<br>deducted<br>from<br>GAAP<br>revenue<br>..<br>2<br>Adjustments<br>for<br>the<br>three<br>months<br>ended<br>30<br>September<br>2022<br>and<br>30<br>June<br>2022<br>consist<br>primarily<br>of<br>long<br>-<br>term<br>incentive<br>plan<br>expense<br>acceleration<br>related<br>to<br>the<br>departure<br>of<br>certain<br>employees<br>and<br>rent<br>expense<br>for<br>subleased<br>office<br>space<br>..<br>Adjustments<br>for<br>the<br>three<br>months<br>ended<br>30<br>September<br>2021<br>consist<br>primarily<br>of<br>rent<br>expense<br>for<br>subleased<br>office<br>space<br>..<br>JHG<br>management<br>believes<br>these<br>costs<br>do<br>not<br>represent<br>our<br>ongoing<br>operations<br>..<br>3<br>Investment<br>management<br>contracts<br>have<br>been<br>identified<br>as<br>a<br>separately<br>identifiable<br>intangible<br>asset<br>arising<br>on<br>the<br>acquisition<br>of<br>subsidiaries<br>and<br>businesses<br>..<br>Such<br>contracts<br>are<br>recognised<br>at<br>the<br>net<br>present<br>value<br>of<br>the<br>expected<br>future<br>cash<br>flows<br>arising<br>from<br>the<br>contracts<br>at<br>the<br>date<br>of<br>acquisition<br>..<br>For<br>segregated<br>mandate<br>contracts,<br>the<br>intangible<br>asset<br>is<br>amortised<br>on<br>a<br>straight<br>-<br>line<br>basis<br>over<br>the<br>expected<br>life<br>of<br>the<br>contracts<br>..<br>JHG<br>management<br>believes<br>these<br>non<br>-<br>cash<br>and<br>acquisition<br>-<br>related<br>costs<br>are<br>not<br>representative<br>of<br>the<br>ongoing<br>operations<br>of<br>the<br>Group<br>..<br>4<br>Adjustments<br>for<br>the<br>three<br>months<br>ended<br>30<br>September<br>2022<br>and<br>30<br>June<br>2022<br>primarily<br>relate<br>to<br>accumulated<br>foreign<br>currency<br>translation<br>expense<br>related<br>to<br>liquidated<br>JHG<br>entities<br>and<br>rental<br>income<br>from<br>subleased<br>office<br>space<br>..<br>Adjustments<br>for<br>the<br>three<br>months<br>ended<br>30<br>September<br>2021<br>consist<br>primarily<br>of<br>rental<br>income<br>from<br>subleased<br>office<br>space<br>..<br>JHG<br>management<br>believes<br>these<br>costs<br>are<br>not<br>representative<br>of<br>our<br>ongoing<br>operations<br>..<br>5<br>The<br>tax<br>impact<br>of<br>the<br>adjustments<br>is<br>calculated<br>based<br>on<br>the<br>applicable<br>US<br>or<br>foreign<br>statutory<br>tax<br>rate<br>as<br>it<br>relates<br>to<br>each<br>adjustment<br>..<br>Certain<br>adjustments<br>are<br>either<br>not<br>taxable<br>or<br>not<br>tax<br>-<br>deductible<br>.. |
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| 41<br>CAPITAL MANAGEMENT<br>Note:<br>JHG purchases shares on market for the annual share grants associated with variable compensation, which is not included i<br>n the above share repurchases.<br>Numbers may not cast due to rounding.<br>1<br>Total shares outstanding reflect amounts disclosed on Forms 10<br>-<br>Q or 10<br>-<br>K for each respective quarter.<br>2<br>Cumulative decrease from commencement of buyback programme in Q3 2018.<br>Continued commitment to return of capital<br>Dividend paid / share (US$)<br>0.36<br>0.36<br>0.38<br>0.38<br>0.38<br>0.38<br>0.39<br>0.39<br>Shares repurchased (m)<br>1.0<br>8.1<br>0.0<br>1.8<br>1.5<br>1.3<br>2.1<br>0.0<br>Total shares outstanding<br>1<br>(m)<br>180.4<br>172.3<br>172.3<br>170.6<br>169.0<br>167.8<br>165.7<br>165.7<br>Cumulative decrease in shares<br>2<br>10.0%<br>14.0%<br>14.0%<br>14.9%<br>15.6%<br>16.3%<br>17.3%<br>17.3%<br>Q4 2020 to Q3 2022 quarterly capital return<br>(US$m)<br>64.8<br>61.7<br>64.8<br>64.5<br>64.3<br>65.5<br>27.4<br>230.2<br>75.0<br>66.9<br>43.3<br>55.6<br>92.2<br>291.9<br>65.0<br>139.8<br>131.4<br>107.6<br>121.1<br>64.7<br>Q4 2020<br>Q1 2021<br>Q2 2021<br>Q3 2021<br>Q4 2021<br>Q1 2022<br>Q2 2022<br>Q3 2022<br>Dividends<br>Share repurchases |
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| 42<br>PERFORMANCE FEES<br>Note:<br>Performance fees include prior quarter accrual true<br>-<br>ups.<br>1<br>AUM data present US mutual fund AUM subject to performance fees as at 30 September 2022. Janus Investment Funds and Janus Asp<br>en<br>Series<br>Portfolios are counted as distinct and separate funds.<br>Q3 2022<br>(US$m)<br>Q2 2022<br>(US$m)<br>Q3 2021<br>(US$m)<br>AUM<br>generating<br>Q3 2022<br>pfees<br>(US$bn)<br># of funds<br>generating<br>Q3 2022<br>pfees<br>Frequency<br>Timing<br>SICAVs<br>0.8<br>1.2<br>1.0<br>2.8<br>2<br>17 annually;<br>3 quarterly<br>17 at June;<br>3 on quarters<br>UK OEICs and unit trusts<br>–<br>0.1<br>–<br>–<br>–<br>annually<br>various<br>Offshore absolute return and<br>other funds<br>0.1<br>4.7<br>1.1<br>–<br>–<br>quarterly /<br>annually<br>various<br>Segregated mandates<br>2.5<br>(0.4)<br>–<br>0.2<br>3<br>quarterly /<br>annually<br>various<br>Investment trusts<br>0.3<br>6.4<br>–<br>–<br>–<br>annually<br>various<br>US mutual funds<br>1<br>(16.9)<br>(15.4)<br>(1.5)<br>42.9<br>15<br>monthly<br>monthly<br>Total<br>(13.2)<br>(3.4)<br>0.6<br>45.9<br>20 |
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| 43<br>US MUTUAL FUNDS WITH PERFORMANCE FEES<br>Note:<br>Numbers may not cast due to rounding.<br>1<br>The funds listed have a performance<br>-<br>based investment advisory fee that adjusts up or down based on performance relative to a ben<br>chmark over 36<br>-<br>month<br>rolling periods. Please see the funds’ Statements of Additional Information for more details and benchmark information.<br>2<br>Adjustment of<br>±<br>15 bps assumes constant assets and could be higher or lower depending on asset fluctuations.<br>3<br>Until 1 August 2022, the Fund’s performance during the portion of the performance measurement period prior to 1 August 2019 w<br>as<br>compared to the<br>Fund's former benchmark, the Russell 3000<br>®<br>Value Index.<br>Mutual funds with performance fees¹<br>AUM<br>30 Sep 22<br>(US$m)<br>Benchmark<br>Base<br>fee<br>Performance<br>fee<br>2<br>Performance<br>cap/(floor) vs<br>benchmark<br>Q3 2022 P&L<br>impact<br>(US$’000)<br>Forty Fund and Portfolio<br>14,314<br>Russell 1000<br>®<br>Growth Index<br>0.64%<br>±<br>15 bps<br>±<br>8.50%<br>(6,989)<br>Research Fund and Portfolio<br>14,160<br>Russell 1000<br>®<br>Growth Index<br>0.64%<br>±<br>15 bps<br>±<br>5.00%<br>(6,776)<br>Contrarian Fund<br>3,878<br>S&P 500<br>®<br>Index<br>0.64%<br>±<br>15 bps<br>±<br>7.00%<br>(1,202)<br>Global Research Fund and Portfolio<br>3,129<br>MSCI World Index<br>SM<br>0.60%<br>±<br>15 bps<br>±<br>6.00%<br>(634)<br>Small Cap Value Fund<br>2,496<br>Russell 2000<br>®<br>Value Index<br>0.72%<br>±<br>15 bps<br>±<br>5.50%<br>(1,300)<br>Overseas Fund and Portfolio<br>2,197<br>MSCI All Country World ex<br>-<br>U.S. Index<br>SM<br>0.64%<br>±<br>15 bps<br>±<br>7.00%<br>814<br>Mid Cap Value Fund and Portfolio<br>2,035<br>Russell Midcap<br>®<br>Value Index<br>0.64%<br>±<br>15 bps<br>±<br>4.00%<br>(1,059)<br>Global Real Estate Fund<br>610<br>FTSE EPRA / NAREIT Global Index<br>0.75%<br>±<br>15 bps<br>±<br>4.00%<br>264<br>Small<br>-<br>Mid Cap Value Fund<br>3<br>84<br>Russell 2500<br>TM<br>Value Index<br>0.70%<br>±<br>15 bps<br>±<br>5.00%<br>(37)<br>Asia Equity Fund<br>16<br>MSCI All Country Asia ex<br>-<br>Japan Index<br>SM<br>0.92%<br>±<br>15 bps<br>±<br>7.00%<br>(13)<br>Total<br>42,919<br>(16,932) |
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| 44<br>LONG<br>-<br>TERM INCENTIVE COMPENSATION<br>Note:<br>Annual grants generally vest over three and four years. Assumed no forfeitures in future periods. Assumed no change in fut<br>ure values related to market or<br>currency, which would impact expense related to cash<br>-<br>based awards (MFSAs, DIP and DEP funds) and social security expense upon ve<br>sting.<br>1<br>Includes retention and recruiting awards; other subsidiary grants and social security expense. Social security expense is est<br>ima<br>ted based on amount of<br>existing awards expected to vest in that year.<br>Estimated future long<br>-<br>term incentive compensation amortisation<br>(US$<br>m)<br>Amount<br>remaining<br>to expense<br>2022<br>2023<br>2024<br>2025<br>2026<br>2019 annual grant<br>2<br>2<br>–<br>–<br>–<br>–<br>2020<br>annual grant<br>14<br>12<br>2<br>–<br>–<br>–<br>2021<br>annual grant<br>60<br>40<br>17<br>3<br>–<br>–<br>2022<br>annual grant<br>175<br>87<br>58<br>25<br>4<br>1<br>Other<br>1<br>43<br>13<br>14<br>9<br>5<br>2<br>Total long<br>-<br>term incentive compensation<br>294<br>154<br>91<br>37<br>9<br>3 |
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| 45<br>CONTACTS<br>Investor enquiries<br>Jim Kurtz<br>Head of Investor Relations<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 |
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| 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 flu<br>ctu<br>ation of value.<br>Forward<br>-<br>looking information<br>This presentation includes statements concerning potential future events involving Janus Henderson Group plc that could diffe<br>r m<br>aterially from the<br>events that actually occur. The differences could be caused by a number of factors, including, but not limited to, recent cha<br>nge<br>s in interest rates and<br>inflation, volatility, or disruption in financial markets, our investment performance as compared to third<br>-<br>party benchmarks or c<br>ompetitive products,<br>redemptions and other withdrawals from the funds and accounts we manage, and other factors identified in Janus Henderson Grou<br>p’s<br>Annual Report<br>on Form 10<br>-<br>K for the fiscal year ended 31<br>December 2021 and the Company’s other filings and furnishings with the Securities and<br>Exchange<br>Commission (Commission File No. 001<br>-<br>38103), including those that appear under headings such as ‘Risk Factors’ and ‘Management’s<br>Discussion and<br>Analysis of Financial Condition and Results of Operations’. Many of these factors are beyond the control of the Company and i<br>ts<br>management. Any<br>forward<br>-<br>looking statements contained in this presentation are as of the date on which such statements were made. The Company ass<br>umes no duty to<br>update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or i<br>mpl<br>ied therein will not be<br>realised. Annualised, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts a<br>nd<br>may not reflect actual<br>results.<br>No public offer<br>The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable<br>le<br>gislation 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<br>to<br>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<br>ap<br>ply depending on the<br>investment strategy, vehicle or investor jurisdiction. Mutual funds in the US distributed by Janus Henderson Distributors US<br>LLC<br>..<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 is a trademark of Janus Henderson Group plc. ©<br>Janus Henderson Group plc. |
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