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): April 29, 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 April 29, 2021, JHG issued a press release reporting its financial results for the first 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 first quarter 2021. |
| 99.2 | | Janus Henderson Group plc first 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: April 29, 2021 | By: | /s/ Roger Thompson |
| | | Roger Thompson |
| | | Chief Financial Officer |
3
Exhibit 99.1
Janus Henderson Group plc Reports First Quarter 2021 Diluted EPS of US$0.88,
or US$0.91 on an Adjusted Basis
| ● | Solid long-term investment performance, with 62% and 70% of assets under management (‘AUM’) outperforming relevant benchmarks on a three- and five-year basis, respectively, as at 31 March 2021 |
|---|---|
| ● | AUM of US$405.1 billion increased 1% compared to the prior quarter, reflecting positive markets partially offset by net outflows of US$(3.3) billion |
| --- | --- |
| ● | Completed US$230 million of share buybacks during the first quarter |
| --- | --- |
| ● | Board approved a 6% increase in the quarterly cash dividend to US$0.38 per share |
| --- | --- |
LONDON — Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’) published its first quarter 2021 results for the period ended 31 March 2021.
First quarter 2021 operating income was US$192.5 million compared to US$227.0 million in the fourth quarter 2020 and US$(332.4) million in the first quarter 2020. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, was US$201.5 million in the first quarter 2021 compared to US$231.7 million in the fourth quarter 2020 and US$164.5 million in the first quarter 2020.
First quarter 2021 diluted earnings per share of US$0.88 decreased 14% compared to US$1.02 in the fourth quarter 2020 and increased versus US$(1.35) in the first quarter 2020. Adjusted diluted earnings per share of US$0.91 in the first quarter 2021 decreased 13% compared to US$1.04 in the fourth quarter 2020 and increased 52% versus US$0.60 in the first quarter 2020.
Dick Weil, Chief Executive Officer of Janus Henderson Group plc, stated:
“Our first quarter results reflect solid long-term investment performance, strong financials and continued capital return to shareholders.
“We remain confident in the momentum we are seeing in several areas of our business, including our Intermediary channel, Fixed Income and Multi-Asset capabilities, and within Equities, European Equities, Life Sciences and Sustainable Equities.
“We continue to be financially disciplined while focusing on investing in strategic growth and returning excess cash to shareholders. We returned over US$290 million through dividends and share buybacks in the first quarter, and we are pleased to announce a 6% dividend increase.” Page | 1
SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ 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 | | ||||
| | | 31 Mar | | 31 Dec | | 31 Mar | |
| | **** | 2021 | **** | 2020 | **** | 2020 | |
| GAAP basis: | | ||||||
| Revenue | 644.0 | 657.2 | 554.9 | ||||
| Operating expenses | 451.5 | 430.2 | 887.3 | ||||
| Operating income (loss) | 192.5 | 227.0 | (332.4) | ||||
| Operating margin | 29.9 | % | 34.5 | % | (59.9) | % | |
| Net income (loss) attributable to JHG | 155.5 | 186.8 | (247.0) | ||||
| Diluted earnings (loss) per share | 0.88 | 1.02 | (1.35) | ||||
| | | | | | | | |
| Adjusted basis: | | | | | |||
| Revenue | 516.6 | 528.5 | 442.7 | ||||
| Operating expenses | 315.1 | 296.8 | 278.2 | ||||
| Operating income | 201.5 | 231.7 | 164.5 | ||||
| Operating margin | 39.0 | % | 43.8 | % | 37.2 | % | |
| Net income attributable to JHG | 161.5 | 189.0 | 112.7 | ||||
| Diluted earnings per share | 0.91 | 1.04 | 0.60 |
First quarter 2021 adjusted revenue of US$516.6 million decreased from the fourth quarter 2020 result of US$528.5 million primarily as a result of lower performance fees due to seasonality. First quarter 2021 adjusted net income attributable to JHG of US$161.5 million declined compared to US$189.0 million in the fourth quarter 2020 primarily due to the seasonal performance fees and larger net investment gains in the fourth quarter 2020.
DIVIDEND AND SHARE BUYBACK
On 28 April 2021, the Board approved a 6% increase in the quarterly dividend and declared a first quarter dividend in respect of the three months ended 31 March 2021 of US$0.38 per share. Shareholders on the register on the record date of 11 May 2021 will be paid the dividend on 27 May 2021. Janus Henderson does not offer a dividend reinvestment plan.
JHG purchased 8.1 million of its ordinary shares on the NYSE and its CHESS Depositary Interests (CDIs) on the ASX in the first quarter, primarily as part of its participation in Dai-ichi Life’s registered secondary public offering, for a total outlay of US$230.2 million.
Net tangible assets per share
| | | | |
|---|---|---|---|
| US | 31 Mar 2021 | **** | 31 Dec 2020 |
| Net tangible assets / (liabilities) per ordinary share | 2.81 | 3.68 |
All values are in US Dollars.
Net tangible assets are defined by the ASX as being total assets less intangible assets less total liabilities ranking ahead of, or equally with, claims of ordinary shares.
Page | 2
AUM AND FLOWS (in US$ 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 | ||||
| | | 31 Mar | | 31 Dec | | 31 Mar |
| | **** | 2021 | **** | 2020 | **** | 2020 |
| Opening AUM | **** | 401.6 | **** | 358.3 | **** | 374.8 |
| Sales | 20.7 | 23.2 | 21.4 | |||
| Redemptions | (24.0) | (24.3) | (33.6) | |||
| Net sales / (redemptions) | (3.3) | (1.1) | (12.2) | |||
| Market / FX | 6.8 | 44.4 | (64.0) | |||
| Disposals | | — | | — | | (4.2) |
| Closing AUM | **** | 405.1 | **** | 401.6 | **** | 294.4 |
Quarterly AUM and flows by capability
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | | **** | Fixed | **** | | **** | Quantitative | **** | | **** | |
| | | Equities | | Income | | Multi-Asset | | Equities | | Alternatives | | Total |
| AUM 31 Mar 2020 | | 149.9 | | 65.3 | | 35.3 | | 34.6 | | 9.3 | | 294.4 |
| Sales | 7.9 | 6.3 | 2.5 | 0.4 | 0.8 | 17.9 | ||||||
| Redemptions | (12.1) | (7.0) | (1.8) | (4.3) | (0.9) | (26.1) | ||||||
| Net sales / (redemptions) | (4.2) | (0.7) | 0.7 | (3.9) | (0.1) | (8.2) | ||||||
| Market / FX | 33.5 | 5.6 | 4.3 | 6.8 | 0.3 | 50.5 | ||||||
| Reclassification^1^ | (0.1) | — | — | — | 0.1 | — | ||||||
| AUM 30 Jun 2020 | 179.1 | **** | 70.2 | **** | 40.3 | **** | 37.5 | **** | 9.6 | **** | 336.7 | |
| Sales | 5.8 | 5.9 | 2.3 | 1.3 | 0.5 | 15.8 | ||||||
| Redemptions | | (10.9) | (4.1) | (1.7) | (1.4) | (0.6) | (18.7) | |||||
| Net sales / (redemptions) | (5.1) | 1.8 | 0.6 | (0.1) | (0.1) | (2.9) | ||||||
| Market / FX | 14.9 | 3.1 | 2.7 | 3.3 | 0.5 | 24.5 | ||||||
| AUM 30 Sep 2020 | 188.9 | **** | 75.1 | **** | 43.6 | **** | 40.7 | **** | 10.0 | **** | 358.3 | |
| Sales | 10.3 | 8.7 | 3.1 | 0.3 | 0.8 | 23.2 | ||||||
| Redemptions | (10.4) | (7.5) | (1.9) | (3.7) | (0.8) | (24.3) | ||||||
| Net sales / (redemptions) | (0.1) | 1.2 | 1.2 | (3.4) | — | (1.1) | ||||||
| Market / FX | 30.6 | 5.2 | 3.2 | 4.7 | 0.7 | 44.4 | ||||||
| AUM 31 Dec 2020 | 219.4 | **** | 81.5 | **** | 48.0 | **** | 42.0 | **** | 10.7 | **** | 401.6 | |
| Sales | 10.5 | 5.9 | 3.0 | 0.2 | 1.1 | 20.7 | ||||||
| Redemptions | (12.0) | (5.5) | (2.2) | (2.3) | (2.0) | (24.0) | ||||||
| Net sales / (redemptions) | (1.5) | 0.4 | 0.8 | (2.1) | (0.9) | (3.3) | ||||||
| Market / FX | 7.0 | (2.4) | 0.7 | 1.4 | 0.1 | 6.8 | ||||||
| AUM 31 Mar 2021 | | 224.9 | **** | 79.5 | **** | 49.5 | **** | 41.3 | **** | 9.9 | **** | 405.1 |
^1^Reflects reclassification of an existing fund from Equities to Alternatives.
Average AUM
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Three months ended | ||||
| | | 31 Mar | | 31 Dec | | 31 Mar |
| | **** | 2021 | **** | 2020 | **** | 2020 |
| Equities | 223.6 | 204.1 | 189.3 | |||
| Fixed Income | 80.9 | 78.1 | 71.6 | |||
| Multi-Asset | 48.7 | 45.6 | 39.4 | |||
| Quantitative Equities | 41.5 | 40.8 | 42.0 | |||
| Alternatives | 10.6 | 10.4 | 10.4 | |||
| Total | 405.3 | 379.0 | 352.7 |
Page | 3
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark (at 31 March 2021)
| | | | | | | | |
|---|---|---|---|---|---|---|---|
| Capability | **** | 1-year | **** | 3-year | **** | 5-year | **** |
| Equities | 55 | % | 54 | % | 69 | % | |
| Fixed Income | 94 | % | 97 | % | 89 | % | |
| Multi-Asset | 98 | % | 97 | % | 94 | % | |
| Quantitative Equities | 48 | % | 4 | % | 11 | % | |
| Alternatives | 98 | % | 97 | % | 100 | % | |
| Total | 67 | % | 62 | % | 70 | % |
Outperformance is measured based on composite performance gross of fees vs primary benchmark, except where a strategy has no benchmark index or corresponding composite in which case the most relevant metric is used: (1) composite gross of fees vs zero for absolute return strategies, (2) fund net of fees vs primary index or (3) fund net of fees vs Morningstar peer group average or median. Non-discretionary and separately managed account assets are included with a corresponding composite where applicable.
Cash management vehicles, ETFs, Managed CDOs, Private Equity funds and custom non-discretionary accounts with no corresponding composite are excluded from the analysis. Excluded assets represent 5% of AUM as at 31 March 2021. Capabilities defined by Janus Henderson.
% of mutual fund AUM in top 2 Morningstar quartiles (at 31 March 2021)
| | | | | | | | |
|---|---|---|---|---|---|---|---|
| Capability | **** | 1-year | **** | 3-year | **** | 5-year | **** |
| Equities | 35 | % | 60 | % | 64 | % | |
| Fixed Income | 69 | % | 79 | % | 73 | % | |
| Multi-Asset | 19 | % | 91 | % | 92 | % | |
| Quantitative Equities | 32 | % | 32 | % | 4 | % | |
| Alternatives | 30 | % | 76 | % | 30 | % | |
| Total | 37 | % | 67 | % | 68 | % |
Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (US Trusts), Janus Henderson Capital Funds (Dublin based), Dublin and UK OEIC and Investment Trusts, Luxembourg SICAVs and Australian Managed Investment Schemes. The top two Morningstar quartiles represent funds in the top half of their category based on total return. On an asset-weighted basis, 81% of total mutual fund AUM was in the top 2 Morningstar quartiles for the 10-year period ending 31 March 2021. For the 1-, 3-, 5- and 10-year periods ending 31 March 2021, 44%, 59%, 53% and 65% of the 196, 187, 179 and 148 total mutual funds, respectively, were in the top 2 Morningstar quartiles.
Analysis based on ‘primary’ share class (Class I Shares, Institutional Shares or share class with longest history for US Trusts; Class A Shares or share class with longest history for Dublin based; primary share class as defined by Morningstar for other funds). Performance may vary by share class. Rankings may be based, in part, on the performance of a predecessor fund or share class and are calculated by Morningstar using a methodology that differs from that used by Janus Henderson. Methodology differences may have a material effect on the return and therefore the ranking. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
ETFs and funds not ranked by Morningstar are excluded from the analysis. Capabilities defined by Janus Henderson. © 2021 Morningstar, Inc. All Rights Reserved.
SECOND QUARTER 2021 RESULTS
Janus Henderson intends to publish its second quarter 2021 results on 29 July 2021. Page | 4
FIRST QUARTER 2021 RESULTS BRIEFING INFORMATION
Chief Executive Officer Dick Weil and Chief Financial Officer Roger Thompson will present these results on 29 April 2021 on a conference call and webcast to be held at 8am EDT, 1pm BST, 10pm AEST.
Those wishing to participate should call:
| | |
|---|---|
| United Kingdom | 0800 279 9489 (toll free) |
| United States | 866 270 1533 (toll free) |
| Australia | 1 800 121 301 (toll free) |
| All other countries | +1 412 317 0797 (this is not toll free) |
| Conference ID | 10153510 |
Access to the webcast and accompanying slides will be available via the investor relations section of Janus Henderson’s website (ir.janushenderson.com).
About Janus Henderson
Janus Henderson Group is a leading global active asset manager dedicated to helping investors achieve long-term financial goals through a broad range of investment solutions, including equities, fixed income, quantitative equities, multi-asset and alternative asset class strategies.
At 31 March 2021, Janus Henderson had approximately US$405 billion in assets under management, more than 2,000 employees, and offices in 26 cities worldwide. Headquartered in London, the company is listed on the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).
| | | |
|---|---|---|
| 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 | | United Kingdom: Edelman Smithfield |
| Co-Head Investor Relations (Non-US) | | Latika Shah |
| +44 (0)20 7818 2905 | | +44 (0)7950 671 948 |
| melanie.horton@janushenderson.com | | latika.shah@edelmansmithfield.com |
| | | |
| Or | | Andrew Wilde |
| | | +44 (0)7786 022 022 |
| Investor Relations | | andrew.wilde@edelmansmithfield.com |
| investor.relations@janushenderson.com | | |
| | | Asia Pacific: Honner |
| | | Craig Morris |
| | | +61 2 8248 3757 |
| | | craig@honner.com.au |
| | | |
| | | |
| | | |
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Page | 5
FINANCIAL DISCLOSURES
Condensed consolidated statements of comprehensive income (unaudited)
| | | | | | |
|---|---|---|---|---|---|
| | Three months ended | ||||
| | 31 Mar | | 31 Dec | | 31 Mar |
| (in US millions, except per share data or as noted) | 2021 | **** | 2020 | **** | 2020 |
| Revenue: | | | | | |
| Management fees | 514.9 | 489.1 | 439.6 | ||
| Performance fees | 17.0 | 59.3 | 14.6 | ||
| Shareowner servicing fees | 60.8 | 57.9 | 50.3 | ||
| Other revenue | 51.3 | 50.9 | 50.4 | ||
| Total revenue | 644.0 | **** | 657.2 | **** | 554.9 |
| | | | | | |
| Operating expenses: | | | | | |
| Employee compensation and benefits | 174.6 | 162.3 | 155.6 | ||
| Long-term incentive plans | 53.5 | 44.7 | 33.6 | ||
| Distribution expenses | 127.4 | 128.7 | 112.2 | ||
| Investment administration | 12.6 | 12.6 | 11.7 | ||
| Marketing | 6.2 | 3.9 | 6.7 | ||
| General, administrative and occupancy | 63.0 | 66.4 | 65.2 | ||
| Impairment of goodwill and intangible assets | 3.6 | | — | | 487.3 |
| Depreciation and amortisation | 10.6 | 11.6 | 15.0 | ||
| Total operating expenses | 451.5 | **** | 430.2 | **** | 887.3 |
| | | | | | |
| Operating income | 192.5 | **** | 227.0 | **** | (332.4) |
| | | | | | |
| Interest expense | (3.2) | (3.2) | (3.3) | ||
| Investment gains (losses), net | 1.6 | 32.2 | (50.5) | ||
| Other non-operating income (expense), net | (0.1) | (0.2) | 32.2 | ||
| Income (loss) before taxes | 190.8 | 255.8 | (354.0) | ||
| Income tax benefit (provision) | (43.1) | (57.4) | 68.8 | ||
| Net income (loss) | 147.7 | 198.4 | (285.2) | ||
| Net loss (income) attributable to noncontrolling interests | 7.8 | (11.6) | 38.2 | ||
| Net income (loss) attributable to JHG | 155.5 | **** | 186.8 | **** | (247.0) |
| Less: allocation of earnings to participating stock-based awards | (4.8) | (5.5) | — | ||
| Net income (loss) attributable to JHG common shareholders | 150.7 | **** | 181.3 | **** | (247.0) |
| | | | | | |
| Basic weighted-average shares outstanding (in millions) | 171.0 | 176.5 | 182.4 | ||
| Diluted weighted-average shares outstanding (in millions) | 171.8 | 177.0 | 182.4 | ||
| | | | | | |
| Diluted earnings (loss) per share (in US) | 0.88 | 1.02 | (1.35) |
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 (loss) attributable to JHG and diluted earnings (loss) per share to adjusted revenue, adjusted operating expenses, adjusted operating income, adjusted net income attributable to JHG and adjusted diluted earnings per share.
| | | | | | | |
|---|---|---|---|---|---|---|
| | Three months ended | | ||||
| | 31 Mar | | 31 Dec | | 31 Mar | |
| (in US millions, except per share data or as noted) | 2021 | **** | 2020 | **** | 2020 | |
| Reconciliation of revenue to adjusted revenue | | | | | | |
| Revenue | 644.0 | 657.2 | 554.9 | |||
| Management fees1 | (46.8) | | (51.6) | | (44.1) | |
| Shareowner servicing fees1 | (50.0) | | (47.4) | | (41.1) | |
| Other revenue1 | (30.6) | (29.7) | (27.0) | |||
| Adjusted revenue | 516.6 | 528.5 | 442.7 | |||
| | | | | | | |
| Reconciliation of operating expenses to adjusted operating expenses | | |||||
| Operating expenses | 451.5 | 430.2 | 887.3 | |||
| Employee compensation and benefits2 | — | (0.1) | (1.4) | |||
| Long-term incentive plans2 | 0.1 | 0.1 | 0.1 | |||
| Distribution expenses1 | (127.4) | | (128.7) | | (112.2) | |
| General, administration and occupancy2 | (3.6) | (2.8) | (1.9) | |||
| Impairment of goodwill and intangible assets3 | (3.6) | — | (487.3) | | ||
| Depreciation and amortisation3 | (1.9) | (1.9) | (6.4) | |||
| Adjusted operating expenses | 315.1 | 296.8 | 278.2 | |||
| | | | | | | |
| Adjusted operating income | 201.5 | 231.7 | 164.5 | |||
| | | | | | | |
| Operating margin | 29.9 | % | 34.5 | % | (59.9) | % |
| Adjusted operating margin | 39.0 | % | 43.8 | % | 37.2 | % |
| | | | | | | |
| Reconciliation of net income (loss) attributable to JHG to adjusted net income attributable to JHG | ||||||
| Net income (loss) attributable to JHG | 155.5 | 186.8 | (247.0) | |||
| Employee compensation and benefits2 | — | 0.1 | 1.4 | |||
| Long-term incentive plans2 | (0.1) | (0.1) | (0.1) | |||
| General, administration and occupancy2 | 3.6 | 2.8 | 1.9 | |||
| Impairment of goodwill and intangible assets3 | 3.6 | — | 487.3 | |||
| Depreciation and amortisation3 | 1.9 | 1.9 | 6.4 | |||
| Interest expense4 | — | — | 0.1 | |||
| Investment gains (losses), net4 | 0.2 | (1.4) | — | |||
| Other non-operating income (expense), net4 | (1.8) | (1.7) | (25.9) | |||
| Income tax benefit (provision)5 | (1.4) | 0.6 | (111.4) | |||
| Adjusted net income attributable to JHG | 161.5 | **** | 189.0 | **** | 112.7 | **** |
| Less: allocation of earnings to participating stock-based awards | (5.0) | (5.5) | (3.2) | |||
| Adjusted net income attributable to JHG common shareholders | 156.5 | **** | 183.5 | **** | 109.5 | **** |
| | | | | | | |
| Weighted-average diluted common shares outstanding – diluted (two class) (in millions) | 171.8 | 177.0 | 182.4 | |||
| Diluted earnings (loss) per share (two class) (in US) | 0.88 | **** | 1.02 | **** | (1.35) | **** |
| Adjusted diluted earnings per share (two class) (in US) | 0.91 | **** | 1.04 | **** | 0.60 | **** |
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 |
|---|
Page | 7
| servicing activities and retains the applicable fees. Revenues for distribution and servicing activities performed by JHG are not deducted from GAAP revenue. | |
|---|---|
| 2 | Adjustments primarily represent rent expense for subleased office space as well as administrative costs related to Dai-ichi Life’s secondary offering. JHG management believes these costs are not representative of the ongoing operations of the Group. |
| --- | --- |
| 3 | Investment management contracts have been identified as a separately identifiable intangible asset arising on the acquisition of subsidiaries and businesses. Such contracts are recognised at the net present value of the expected future cash flows arising from the contracts at the date of acquisition. For segregated mandate contracts, the intangible asset is amortised on a straight-line basis over the expected life of the contracts. Adjustments also include impairment charges of our goodwill and certain mutual fund investment management agreements, client relationships and trademarks. JHG management believes these non-cash and acquisition-related costs are not representative of the ongoing operations of the Group. |
| --- | --- |
| 4 | Adjustments primarily relate to contingent consideration adjustments associated with prior acquisitions and increased debt expense as a consequence of the fair value uplift on debt due to acquisition accounting. JHG management believes these costs are not representative of the ongoing operations of the Group. |
| --- | --- |
| 5 | The tax impact of the adjustments is calculated based on the applicable US or foreign statutory tax rate as it relates to each adjustment. Certain adjustments are either not taxable or not tax-deductible. |
| --- | --- |
Condensed consolidated balance sheets (unaudited)
| | | | |
|---|---|---|---|
| | 31 Mar | | 31 Dec |
| (in US millions) | 2021 | **** | 2020 |
| Assets: | |||
| Cash and cash equivalents | 826.1 | | 1,099.7 |
| Investment securities | 255.5 | | 268.1 |
| Property, equipment and software, net | 74.0 | | 77.9 |
| Intangible assets and goodwill, net | 4,071.7 | | 4,070.2 |
| Assets of consolidated variable interest entities | 202.0 | | 226.5 |
| Other assets | 1,065.4 | | 948.4 |
| Total assets | 6,494.7 | **** | 6,690.8 |
| | | | |
| Liabilities, redeemable noncontrolling interests and equity: | |||
| Long-term debt | 312.6 | | 313.3 |
| Deferred tax liabilities, net | 627.2 | | 627.4 |
| Liabilities of consolidated variable interest entities | 5.5 | | 3.2 |
| Other liabilities | 894.9 | | 927.3 |
| Redeemable noncontrolling interests | 99.3 | | 85.8 |
| Total equity | 4,555.2 | | 4,733.8 |
| Total liabilities, redeemable noncontrolling interests and equity | 6,494.7 | | 6,690.8 |
All values are in US Dollars.
Condensed consolidated statements of cash flows (unaudited)
| | | | | | |
|---|---|---|---|---|---|
| | Three months ended | ||||
| | 31 Mar | | 31 Dec | | 31 Mar |
| (in US millions) | 2021 | **** | 2020 | **** | 2020 |
| Cash provided by (used for): | |||||
| Operating activities | 25.8 | | 220.2 | | 37.9 |
| Investing activities | 23.4 | | 119.4 | | 41.8 |
| Financing activities | (322.5) | | (191.2) | | (46.0) |
| Effect of exchange rate changes | 1.8 | | 33.2 | | (28.0) |
| Net change during period | (271.5) | | 181.6 | | 5.7 |
All values are in US Dollars.
Page | 8
STATUTORY DISCLOSURES
Associates and joint ventures
At 31 March 2021, the Group holds interests in the following associates and joint ventures managed through shareholder agreements with third party investors, accounted for under the equity method:
| ● | LongTail Alpha LLC. Ownership 20% |
|---|
Basis of preparation
In the opinion of management of Janus Henderson Group plc, the condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly present the financial position, results of operations and cash flows of JHG in accordance with US GAAP. Such financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The financial statements should be read in conjunction with the annual consolidated financial statements and notes presented in Janus Henderson Group’s Annual Report on Form 10-K for the year ended 31 December 2020, on file with the SEC (Commission file no. 001-38103). Events subsequent to the balance sheet date have been evaluated for inclusion in the financial statements through the issuance date and are included in the notes to the condensed consolidated financial statements.
Corporate governance principles and recommendations
In the opinion of the Directors, the financial records of the Group have been properly maintained, and the Condensed Consolidated Financial Statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the Group. This opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
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 29 April 2021<br>FIRST QUARTER 2021 RESULTS<br>Dick Weil<br>Chief Executive Officer<br>Roger Thompson<br>Chief Financial Officer |
|---|
| 2<br>1 Represents percentage of AUM outperforming the relevant benchmark. Full performance disclosures detailed in the appendix on slide 22.<br>2 See adjusted financial measures reconciliation on slides 28 and 29 for additional information.<br>Key metrics – Q1 2021 vs Q4 2020<br>Q1 2021 RESULTS<br>▪ Long-term investment<br>performance remains solid<br>▪ AUM increased 1% to<br>US$405.1bn; strength in global<br>markets was partially offset by<br>net outflows of US$(3.3)bn<br>▪ Adjusted diluted EPS of US$0.91<br>▪ Board declared US$0.02<br>increase in quarterly dividend to<br>US$0.38 per share<br>▪ Completed US$230m of share<br>buybacks<br>Q1 2021 Q4 2020<br>3-year investment<br>outperformance¹ 62% 65%<br>Net flows US$(3.3)bn US$(1.1)bn<br>Total AUM US$405.1bn US$401.6bn<br>US GAAP diluted EPS US$0.88 US$1.02<br>Adjusted diluted EPS² US$0.91 US$1.04<br>Dividend per share US$0.38 US$0.36 |
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| BUSINESS AND FINANCIAL UPDATE<br>Roger Thompson<br>Chief Financial Officer |
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| 4<br>INVESTMENT PERFORMANCE<br>Firmwide investment performance remains solid<br>Note: Full performance disclosures detailed in the appendix on slides 22 and 23.<br>The top two Morningstar quartiles represent funds in the top half of their category based on total return.<br>Refer to slide 23 for the 10-year period, percent of funds in the top 2 quartiles for all periods, and description and quantity of funds included in the analysis.<br>Past performance is no guarantee of future results.<br>Capability 1-year 3-year 5-year<br>Equities<br>Fixed Income<br>Multi-Asset<br>Quantitative<br>Equities<br>Alternatives<br>Total<br>Capability 1-year 3-year 5-year<br>Equities<br>Fixed Income<br>Multi-Asset<br>Quantitative<br>Equities<br>Alternatives<br>Total<br>% of mutual fund AUM in top 2 Morningstar quartiles<br>At 31 Mar 21<br>% of AUM outperforming benchmark<br>At 31 Mar 21<br>48% 4% 11%<br>70% 62% 67%<br>100% 97% 98%<br>94% 97% 98%<br>89% 97% 94%<br>69% 54% 55%<br>32% 32% 4%<br>68% 67% 37%<br>30% 76% 30%<br>92% 91% 19%<br>73% 79% 69%<br>64% 60% 35% |
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| 5<br>15.6 15.6 15.3 18.7 21.4 17.9 15.8<br>23.2 20.7<br>(23.0) (25.4)<br>(18.8)<br>(25.4)<br>(33.6)<br>(26.1)<br>(18.7)<br>(24.3) (24.0)<br>(7.4) (9.8)<br>(3.5) (6.7)<br>(12.2)<br>(8.2)<br>(2.9) (1.1) (3.3)<br>Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021<br>Q1 2019 to Q1 2021 total flows<br>(US$bn)<br>Redemptions Sales Net sales / (redemptions)<br>19% 18% 17% 21% 23% 25% 19% 26% 21%<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>(28%) (29%) (21%) (29%) (36%) (36%) (22%) (27%) (24%) |
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| 6<br>6.3 4.2 3.7<br>8.8<br>3.3<br>(14.1) (12.7)<br>(5.6)<br>(10.0)<br>(6.8) (7.8) (8.5)<br>(1.9) (1.2) (3.5)<br>Q1<br>2020<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>14.1 13.0 11.5 13.5<br>16.5<br>(17.2)<br>(12.1) (11.6) (12.5)<br>(15.4)<br>(3.1)<br>0.9<br>(0.1)<br>1.0 1.1<br>Q1<br>2020<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>1.0 0.7 0.6 0.9 0.9<br>(2.3) (1.3) (1.5) (1.8) (1.8)<br>(1.3) (0.6) (0.9) (0.9) (0.9)<br>Q1<br>2020<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<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>19% 17% 13% 30% 11% 33% 38% 29% 32% 35% 6% 5% 4% 5% 4%<br>(43%) (50%) (20%) (34%) (22%) (40%) (36%) (29%) (29%) (32%) (14%) (9%) (9%) (10%) (9%)<br>Annualised gross redemptions¹<br>Annualised gross sales¹<br>Self-Directed<br>(US$bn)<br>Net flows reflect strength in Intermediary and a decline in Institutional sales |
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| 7<br>1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>Q1 2021 FLOWS BY CAPABILITY<br>Net flows reflect strength in Fixed Income and Multi-Asset<br>10.5<br>5.9 3.0<br>0.2 1.1<br>(12.0)<br>(5.5)<br>(2.2)<br>(2.3) (2.0)<br>(1.5)<br>0.4 0.8<br>(2.1) (0.9)<br>Equities Fixed Income Multi-Asset Quantitative<br>Equities<br>Alternatives<br>Annualised gross sales¹ Redemptions Sales Net sales / (redemptions)<br>19% 29% 25% 2% 41%<br>Annualised gross redemptions¹<br>(22%) (28%) (18%) (22%) (77%)<br>Q1 2021 flows by capability<br>(US$bn) |
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| 8<br>US GAAP Adjustments Adjusted<br>Revenue<br>Management fees 514.9<br>Performance fees 17.0<br>Shareowner servicing fees 60.8<br>Other revenue 51.3<br>Total revenue 644.0 (127.4) 516.6<br>Operating expenses<br>Employee compensation and benefits 174.6<br>Long-term incentive plans 53.5<br>Distribution expenses 127.4<br>Investment administration 12.6<br>Marketing 6.2<br>General, administrative and occupancy 63.0<br>Impairment of goodwill and intangible assets 3.6<br>Depreciation and amortisation 10.6<br>Total operating expenses 451.5 (136.4) 315.1<br>Operating income 192.5 9.0 201.5<br>(US$m)<br>3 months ended 31 Mar 21<br>STATEMENT OF INCOME<br>US GAAP and adjusted<br>Note: See adjusted financial measures reconciliation on slides 28 and 29 for additional information. |
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| 9<br>(US$, except margin data) Q1 2021 Q4 2020<br>Change<br>Q1 2021 vs<br>Q4 2020 Q1 2020<br>Change<br>Q1 2021 vs<br>Q1 2020<br>Average AUM 405.3bn 379.0bn 7% 352.7bn 15%<br>Total revenue 644.0m 657.2m (2%) 554.9m 16%<br>Operating income (loss) 192.5m 227.0m (15%) (332.4)m nm<br>Operating margin 29.9% 34.5% (4.6ppt) (59.9%) 89.8ppt<br>US GAAP diluted EPS 0.88 1.02 (14%) (1.35) nm<br>Adjusted revenue 516.6m 528.5m (2%) 442.7m 17%<br>Adjusted operating income 201.5m 231.7m (13%) 164.5m 22%<br>Adjusted operating margin 39.0% 43.8% (4.8ppt) 37.2% 1.8ppt<br>Adjusted diluted EPS 0.91 1.04 (13%) 0.60 52%<br>SUMMARY FINANCIAL RESULTS<br>US GAAP and adjusted<br>Note: See adjusted financial measures reconciliation on slides 28 and 29 for additional information. |
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| 10<br>REVENUE<br>Q1 2021 adjusted revenue reflects higher average assets and seasonally<br>lower performance fees compared to Q4 2020<br>Note: See adjusted financial measures reconciliation on slides 28 and 29 for additional information.<br>1 Net margin based on management fees net of distribution expenses.<br>Adjusted revenue – Q4 2020 vs Q1 2021<br>(US$m)<br>Q1 2021 adjusted revenue drivers<br>▪ Increase from Q4 2020 management fees driven<br>by higher average assets<br>▪ Performance fees declined from Q4 2020 driven<br>by investment performance and seasonality<br>▪ Improved average net management fee margin<br>due to asset mix shift<br>468.1 437.5<br>17.0 59.3<br>10.8 10.5 20.7 21.2<br>516.6 528.5<br>Q1 2021 Q4 2020<br>Management fees<br>Performance fees<br>Shareowner servicing fees<br>Other revenue<br>(US$m, except margin data) Q1 2021 Q4 2020 Change<br>Total adjusted revenue 516.6 528.5 (2%)<br>Management fees 468.1 437.5 7%<br>Performance fees 17.0 59.3 (71%)<br>Shareowner servicing fees 10.8 10.5 3%<br>Other revenue 20.7 21.2 (2%)<br>Average net¹ mgmt fee margin 46.8bps 45.9bps 0.9bps |
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| 11<br>OPERATING EXPENSES<br>Increase in adjusted expenses primarily reflects seasonally higher<br>compensation<br>Note: See adjusted financial measures reconciliation on slides 28 and 29 for additional information.<br>Adjusted operating expenses – Q4 2020 vs Q1 2021<br>(US$m)<br>(US$m)<br>Q1 2021<br>US GAAP Adjustments<br>Q1 2021<br>adjusted<br>Q4 2020<br>adjusted<br>Change<br>Q1 2021 adj vs<br>Q4 2020 adj<br>Employee compensation and benefits 174.6 – 174.6 162.2 8%<br>Long-term incentive plans 53.5 0.1 53.6 44.8 20%<br>Total compensation expenses 228.1 0.1 228.2 207.0 10%<br>Distribution expenses 127.4 (127.4) –– nm<br>Investment administration 12.6 – 12.6 12.6 0%<br>Marketing 6.2 – 6.2 3.9 59%<br>General, administrative and occupancy 63.0 (3.6) 59.4 63.6 (7%)<br>Impairment of goodwill and intangible assets 3.6 (3.6) –– nm<br>Depreciation and amortisation 10.6 (1.9) 8.7 9.7 (10%)<br>Non-staff operating expenses 223.4 (136.5) 86.9 89.8 (3%)<br>Total operating expenses 451.5 (136.4) 315.1 296.8 6%<br>315.1<br>(4.2) (1.0)<br>296.8<br>12.4<br>8.8<br>–<br>2.3<br>Q4 2020 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>Q1 2021 |
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| 12<br>CAPITAL RESOURCES<br>Strong liquidity position<br>▪ Cash and investment securities<br>(excluding those assets held by<br>consolidated VIEs and VREs1) totalled<br>US$1,048m compared to outstanding<br>debt of US$313m<br>▪ Board declared a dividend of US$0.38<br>per share to be paid on 27 May to<br>shareholders on record at the close of<br>business on 11 May<br>▪ Repurchased 8.0m shares in Q1 2021<br>for US$230m as part of the Dai-ichi Life<br>secondary offering<br>1,096.9<br>824.0<br>238.8<br>224.1<br>1,335.7<br>1,048.1<br>313.3 312.6<br>Cash and<br>investments<br>Debt Cash and<br>investments<br>Debt<br>Balance sheet profile – carrying value<br>31 Dec 20 vs 31 Mar 21<br>(US$bn)<br>Investment securities¹<br>Cash and cash equivalents¹<br>2025 maturity<br>31 Mar 21 31 Dec 20<br>1 Cash and cash equivalents and investment securities held by consolidated variable interest entities (‘VIEs’) and variable voting rights entities (‘VREs’) are not<br>available for general corporate purposes and have been excluded from the figures above. For additional detail, please see Part I, Notes 2 and 3 (‘Consolidation’ and<br>‘Investment Securities’, respectively), and the ‘Liquidity and Capital Resources’ portion of Part I, Item 2, on pages 5 to 6 and pages 34 to 35, respectively, of the<br>Company’s Form 10‐Q for the period ended 31 March 2021. |
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| 13<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$) 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36<br>Shares repurchased (m) 3.5 4.2 0.5 2.1 1.1 2.4 1.0 8.1<br>Total shares outstanding1 (m) 191.6 187.5 187.0 184.9 183.9 181.4 180.4 172.3<br>Cumulative decrease in shares2 4.4% 6.4% 6.7% 7.7% 8.3% 9.5% 10.0% 14.0%<br>Q2 2019 to Q1 2021 quarterly capital return<br>(US$bn)<br>68.6 67.8 66.3 66.2 66.1 65.8 64.8 61.7<br>75.2 81.3<br>12.5 31.2 22.0<br>50.2<br>27.4<br>230.2<br>143.8 149.1<br>78.8<br>97.4 88.1<br>116.0<br>92.2<br>291.9<br>Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021<br>Dividends<br>Share repurchases |
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| Q&A |
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| APPENDIX |
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| 16<br>ASSETS UNDER MANAGEMENT<br>AUM at 31 March 2021: US$405.1bn<br>56%<br>20%<br>12%<br>10%<br>2%<br>Equities<br>Fixed Income<br>Multi-Asset<br>Quantitative Equities<br>Alternatives<br>49%<br>31%<br>20%<br>Intermediary<br>Institutional<br>Self-Directed<br>55% 31%<br>14%<br>North America<br>EMEA & LatAm<br>Asia Pacific<br>By client type By capability By client location<br>US$224.9bn<br>US$79.5bn<br>US$49.5bn<br>US$41.3bn<br>US$9.9bn<br>US$196.2bn<br>US$127.2bn<br>US$81.7bn<br>US$223.2bn<br>US$125.2bn<br>US$56.7bn |
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| 17<br>INVESTMENT MANAGEMENT CAPABILITIES<br>Diversified product range<br>Equities<br>US$224.9bn<br>AUM<br>31 Mar 21<br>US$405.1bn<br>Fixed Income<br>US$79.5bn<br>Multi-Asset<br>US$49.5bn<br>Self-directed<br>Intermediary<br>Institutional<br>Institutional<br>Institutional<br>Quantitative Equities<br>US$41.3bn<br>Institutional<br>Alternatives<br>US$9.9bn<br>Intermediary<br>Equities<br>▪ Wide range of equity strategies encompassing<br>different geographic focuses and investment<br>styles<br>Fixed Income<br>▪ Innovative and differentiated techniques designed<br>to support clients as they navigate each unique<br>economic cycle<br>Multi-Asset<br>▪ Provides a range of diversified core investment<br>solutions with the aim of delivering attractive<br>returns over the long term with lower levels of<br>volatility<br>Quantitative Equities<br>▪ Intech applies advanced mathematics and<br>systematic portfolio rebalancing intended to<br>harness the volatility of movements in stock<br>prices<br>Alternatives<br>▪ Investment solutions aimed at delivering specific<br>outcomes tailored to meet the needs and<br>constraints of clients |
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| 18<br>LARGEST STRATEGIES BY CAPABILITY<br>Note: Numbers may not cast due to rounding.<br>Capability Strategy<br>AUM<br>(US$bn)<br>31 Mar 21<br>US Mid Cap Growth 29.8<br>US Concentrated Growth 25.2<br>US Research Growth Equity 20.0<br>US SMID Cap Growth 14.1<br>Global Life Sciences 13.9<br>Absolute Return Income 12.2<br>Sterling Buy & Maintain Credit 9.9<br>Global Strategic Fixed Income 9.7<br>Core Plus Fixed Income 7.1<br>Australian Fixed Income 6.3<br>Balanced 43.0<br>UK Cautious Managed 1.6<br>Global Adaptive Capital Appreciation 0.6<br>Multi Manager Managed 0.5<br>Protective Life Dynamic Allocation Series - Moderate 0.4<br>Intech Global Large Cap Core ex-Japan - ESG 11.0<br>Intech US Enhanced Plus 4.7<br>Intech Global Large Cap Core 4.6<br>Intech Global Enhanced Index ex-Australia ex-Tobacco 1% Risk 2.7<br>Intech US Large Cap Growth 2.3<br>UK Large Cap Absolute Return Equity 5.2<br>Property 1.8<br>Europe Large Cap Long/Short 0.6<br>Global Equity Market Neutral 0.4<br>Concentrated Pan Europe Equity 0.4<br>Total 227.8<br>Equity<br>Fixed Income<br>Multi-Asset<br>Alternatives<br>Quantitative Equities |
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| 19<br>8.8 7.9<br>5.8<br>10.3 10.5<br>(15.7)<br>(12.1) (10.9) (10.4)<br>(12.0)<br>(6.9)<br>(4.2) (5.1)<br>(0.1) (1.5)<br>Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021<br>Equities<br>(US$bn)<br>1 Annualised gross sales and redemption rates calculated as a percentage of beginning period AUM.<br>QUARTERLY FLOWS BY CAPABILITY<br>Equities and Fixed Income<br>8.0<br>6.3 5.9<br>8.7<br>5.9<br>(11.4)<br>(7.0)<br>(4.1)<br>(7.5) (5.5)<br>(3.4)<br>(0.7)<br>1.8 1.2 0.4<br>Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021<br>(31%) (32%) (24%) (22%) (22%)<br>Redemptions Sales Net sales / (redemptions)<br>Annualised gross redemptions¹<br>17% 21% 13% 22% 19% 43% 39% 34% 46% 29%<br>(61%) (43%) (23%) (40%) (28%)<br>Fixed Income<br>(US$bn)<br>Annualised gross sales¹ |
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| 20<br>0.4 0.4<br>1.3<br>0.3 0.2<br>(2.4)<br>(4.3)<br>(1.4)<br>(3.7)<br>(2.3)<br>(2.0)<br>(3.9)<br>(0.1)<br>(3.4)<br>(2.1)<br>Q1<br>2020<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>3.5<br>2.5 2.3<br>3.1 3.0<br>(2.5)<br>(1.8) (1.7) (1.9) (2.2)<br>1.0 0.7 0.6 1.2 0.8<br>Q1<br>2020<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<br>2021<br>0.7 0.8 0.5 0.8 1.1<br>(1.6)<br>(0.9) (0.6) (0.8)<br>(2.0)<br>(0.9)<br>(0.1) (0.1) -<br>(0.9)<br>Q1<br>2020<br>Q2<br>2020<br>Q3<br>2020<br>Q4<br>2020<br>Q1<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>4% 5% 13% 3% 2% 36% 29% 22% 28% 25% 25% 36% 23% 33% 41%<br>(22%) (50%) (14%) (36%) (22%) (26%) (21%) (17%) (17%) (18%) (58%) (40%) (24%) (31%) (77%)<br>Annualised gross redemptions¹<br>Annualised gross sales¹<br>Alternatives<br>(US$bn) |
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| 21<br>Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021<br>Equities<br>Fixed Income<br>Multi-Asset<br>Quantitative Equities<br>Alternatives<br>Q1 2019 to Q1 2021 total net flows by capability<br>(US$bn)<br>NET FLOWS BY CAPABILITY<br>(12.2)<br>(7.4)<br>(9.8)<br>(3.5)<br>(6.7) (8.2)<br>(2.9)<br>(1.1)<br>(3.3) |
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| 22<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 as at 31 March 2021, 31 December 2020, 30 September 2020 and 30 June 2020, and 6% of AUM as at 31 March<br>2020. Capabilities defined by Janus Henderson.<br>INVESTMENT PERFORMANCE<br>% of AUM outperforming benchmark<br>Capability 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr<br>Equities 43% 69% 70% 52% 54% 64% 38% 53% 71% 54% 54% 67% 55% 54% 69%<br>Fixed Income 48% 55% 61% 83% 87% 96% 88% 92% 97% 92% 96% 90% 94% 97% 89%<br>Multi-Asset 86% 87% 93% 93% 91% 94% 93% 93% 95% 97% 96% 94% 98% 97% 94%<br>Quantitative Equities 35% 28% 9% 23% 22% 9% 64% 8% 8% 69% 24% 16% 48% 4% 11%<br>Alternatives 95% 97% 97% 96% 96% 99% 97% 97% 100% 97% 97% 100% 98% 97% 100%<br>Total 50% 65% 66% 60% 62% 68% 58% 61% 73% 68% 65% 72% 67% 62% 70%<br>Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 |
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| 23<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. On an asset-weighted basis, 86%, 86%, 88%, 79%<br>and 81% of total mutual fund AUM were in the top 2 Morningstar quartiles for the 10-year periods ended 31 March 2020, 30 June 2020, 30 September 2020,<br>31 December 2020 and 31 March 2021, respectively. For the 1-, 3-, 5- and 10-year periods ending 31 March 2021, 44%, 59%, 53% and 65% of the 196,<br>187, 179 and 148 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 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr 1yr 3yr 5yr<br>Equities 60% 85% 78% 59% 56% 76% 60% 68% 76% 47% 57% 67% 35% 60% 64%<br>Fixed Income 75% 82% 70% 77% 86% 74% 76% 78% 72% 70% 79% 73% 69% 79% 73%<br>Multi-Asset 91% 91% 92% 90% 92% 92% 91% 92% 92% 91% 91% 92% 19% 91% 92%<br>Quantitative Equities 37% 57% 46% 3% 60% 8% 4% 30% 4% 4% 33% 4% 32% 32% 4%<br>Alternatives 98% 60% 98% 98% 100% 96% 100% 100% 100% 74% 76% 75% 30% 76% 30%<br>Total 69% 84% 79% 67% 67% 78% 68% 74% 78% 57% 66% 71% 37% 67% 68%<br>Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 |
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| 24<br>INVESTMENT PERFORMANCE<br>% of mutual fund AUM in top 2 Morningstar quartiles (continued)<br>Group<br>44 42<br>32<br>17 10<br>44 46 48 44 44 51<br>41 41 40 42<br>25 25<br>36<br>41<br>27<br>40<br>22<br>26<br>22 24<br>28<br>37 37 31 26<br>69 67 68<br>57<br>37<br>84<br>67<br>74<br>66 67<br>79 78 78<br>71 68<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Equities<br>35 31<br>13 10 8<br>31 33 32 29 27<br>46<br>30 27 27 32<br>25 28<br>48<br>36<br>27<br>54<br>23<br>36<br>29 32<br>32<br>46 49<br>40 32<br>60 59 60<br>47<br>35<br>85<br>56<br>68<br>57 60<br>78 76 76<br>67 64<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>2nd quartile<br>1st quartile<br>1-year 3-year 5-year 1-year 3-year 5-year<br>Note: Full performance disclosures detailed on slide 23. Numbers may not cast due to rounding. |
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| 25<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>37 41<br>56 54<br>27<br>52<br>64 67 71 69<br>44 41 49 49<br>38<br>38 36<br>19<br>16<br>43<br>30<br>23 11 8 11<br>27 33 24 24<br>35<br>75 77 76<br>70 69<br>82<br>86<br>78 79 79<br>70 74 72 73 73<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>89 89 90<br>15<br>1<br>89 90 91 91 90 88 90 90 91 91<br>2 1 1<br>76<br>18<br>3 2 1 1 1 4 2 2 0 1<br>91 90 91 91<br>19<br>91 92 92 91 91 92 92 92 92 92<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>1-year 3-year 5-year 1-year 3-year 5-year<br>Note: Full performance disclosures detailed on slide 23. Numbers may not cast due to rounding. |
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| 26<br>29<br>4 3 4 4 4 4 4 3 4 4 4<br>7<br>3 4<br>32<br>54 56<br>26 29 28<br>42<br>4<br>37<br>3 4 4<br>32<br>57 60<br>30 33 32<br>46<br>8<br>4 4 4<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>29<br>64<br>43<br>0<br>19<br>56<br>32<br>72<br>41<br>74<br>25<br>47 47<br>39<br>24<br>69<br>34<br>57<br>74<br>12<br>5<br>68<br>28<br>35<br>2<br>73<br>48 53<br>37<br>6<br>98 98 100<br>74<br>30<br>60<br>100100<br>76 76<br>98 96<br>100<br>75<br>30<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 2021<br>Q1 2020<br>Q2 2020<br>Q3 2020<br>Q4 2020<br>Q1 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 1-year 3-year 5-year<br>Note: Full performance disclosures detailed on slide 23. Numbers may not cast due to rounding. |
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| 27<br>US GAAP: STATEMENT OF INCOME<br>(US$m, except per share data or as noted) 31 Mar 21 31 Dec 20 31 Mar 20<br>Revenue<br>Management fees 514.9 489.1 439.6<br>Performance fees 17.0 59.3 14.6<br>Shareowner servicing fees 60.8 57.9 50.3<br>Other revenue 51.3 50.9 50.4<br>Total revenue 644.0 657.2 554.9<br>Operating expenses<br>Employee compensation and benefits 174.6 162.3 155.6<br>Long-term incentive plans 53.5 44.7 33.6<br>Distribution expenses 127.4 128.7 112.2<br>Investment administration 12.6 12.6 11.7<br>Marketing 6.2 3.9 6.7<br>General, administrative and occupancy 63.0 66.4 65.2<br>Impairment of goodwill and intangible assets 3.6 – 487.3<br>Depreciation and amortisation 10.6 11.6 15.0<br>Total operating expenses 451.5 430.2 887.3<br>Operating income (loss) 192.5 227.0 (332.4)<br>Interest expense (3.2) (3.2) (3.3)<br>Investment gains (losses), net 1.6 32.2 (50.5)<br>Other non-operating income (expense), net (0.1) (0.2) 32.2<br>Income (loss) before taxes 190.8 255.8 (354.0)<br>Income tax benefit (provision) (43.1) (57.4) 68.8<br>Net income (loss) 147.7 198.4 (285.2)<br>Net loss (income) attributable to noncontrolling interests 7.8 (11.6) 38.2<br>Net income (loss) attributable to JHG 155.5 186.8 (247.0)<br>Less: allocation of earnings to participating stock-based awards (4.8) (5.5) –<br>Net income (loss) attributable to JHG common shareholders 150.7 181.3 (247.0)<br>Diluted weighted-average shares outstanding (m) 171.8 177.0 182.4<br>Diluted earnings (loss) per share (in US$) 0.88 1.02 (1.35)<br>3 months ended |
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| 28<br>ALTERNATIVE PERFORMANCE MEASURES<br>Note: Reconciliation to be used in conjunction with slide 29. Footnotes included on slide 30.<br>Reconciliation of adjusted financial measures<br>(US$m, except per share data) 31 Mar 21 31 Dec 20 31 Mar 20<br>Reconciliation of revenue to adjusted revenue<br>Revenue 644.0 657.2 554.9<br>Management fees1 (46.8) (51.6) (44.1)<br>Shareowner servicing fees1 (50.0) (47.4) (41.1)<br>Other revenue1 (30.6) (29.7) (27.0)<br>Adjusted revenue 516.6 528.5 442.7<br>Reconciliation of operating expenses to adjusted operating expenses<br>Operating expenses 451.5 430.2 887.3<br>Employee compensation and benefits2 –(0.1) (1.4)<br>Long-term incentive plans2 0.1 0.1 0.1<br>Distribution expenses1 (127.4) (128.7) (112.2)<br>General, administrative and occupancy2 (3.6) (2.8) (1.9)<br>Impairment of goodwill and intangible assets3 (3.6) –(487.3)<br>Depreciation and amortisation3 (1.9) (1.9) (6.4)<br>Adjusted operating expenses 315.1 296.8 278.2<br>Adjusted operating income 201.5 231.7 164.5<br>Operating margin 29.9% 34.5% (59.9%)<br>Adjusted operating margin 39.0% 43.8% 37.2%<br>3 months ended |
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| 29<br>ALTERNATIVE PERFORMANCE MEASURES<br>Note: Reconciliation to be used in conjunction with slide 28. Footnotes included on slide 30.<br>Reconciliation of adjusted financial measures (continued)<br>(US$m, except per share data) 31 Mar 21 31 Dec 20 31 Mar 20<br>Reconciliation of net income (loss) attributable to JHG to adjusted net income attributable to JHG<br>Net income (loss) attributable to JHG 155.5 186.8 (247.0)<br>Employee compensation and benefits2 – 0.1 1.4<br>Long-term incentive plans2 (0.1) (0.1) (0.1)<br>General, administrative and occupancy2 3.6 2.8 1.9<br>Impairment of goodwill and intangible assets3 3.6 – 487.3<br>Depreciation and amortisation3 1.9 1.9 6.4<br>Interest expense4 –– 0.1<br>Investment gains (losses), net4 0.2 (1.4) –<br>Other non-operating income (expense), net4 (1.8) (1.7) (25.9)<br>Income tax benefit (provision)5 (1.4) 0.6 (111.4)<br>Adjusted net income attributable to JHG 161.5 189.0 112.7<br>Diluted earnings (loss) per share (in US$) 0.88 1.02 (1.35)<br>Adjusted diluted earnings per share (in US$) 0.91 1.04 0.60<br>3 months ended |
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| 30<br>ALTERNATIVE PERFORMANCE MEASURES<br>Footnotes to reconciliation of adjusted financial measures<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<br>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<br>and passed through to third-party intermediaries who are responsible for performing the applicable services. The majority of distribution and servicing fees collected<br>by JHG are passed through to third-party intermediaries. JHG management believes that the deduction of distribution and service fees from revenue in the<br>computation of adjusted revenue reflects the pass-through nature of these revenues. In certain arrangements, JHG performs the distribution and servicing activities<br>and retains the applicable fees. Revenues for distribution and servicing activities performed by JHG are not deducted from GAAP revenue.<br>2 Adjustments primarily represent rent expense for subleased office space as well as administrative costs related to Dai-ichi Life’s secondary offering. JHG<br>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<br>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<br>contracts, the intangible asset is amortised on a straight-line basis over the expected life of the contracts. Adjustments also include impairment charges of our<br>goodwill and certain mutual fund investment management agreements, client relationships and trademarks. JHG management believes these non-cash and<br>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 and increased debt expense as a consequence of the fair<br>value uplift on debt due to acquisition accounting. JHG management believes these costs are not representative of the ongoing 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<br>either not taxable or not tax-deductible. |
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| 31<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 31 March 2021. Janus Investment Funds and Janus Aspen Series Portfolios<br>are counted as distinct and separate funds.<br>Q1 2021<br>(US$m)<br>Q4 2020<br>(US$m)<br>Q1 2020<br>(US$m)<br>AUM<br>generating<br>Q1 2021<br>pfees<br>(US$bn)<br># of funds<br>generating<br>Q1 2021<br>pfees Frequency Timing<br>SICAVs 12.4 5.4 0.2 3.7 3 17 annually;<br>3 quarterly<br>17 at June;<br>3 on quarters<br>UK OEICs and unit trusts 4.0 0.5 1.3 1.9 2 quarterly various<br>Offshore absolute return funds 2.2 6.9 4.0 0.3 4 annually various<br>Segregated mandates 2.3 48.6 11.0 4.7 4 quarterly /<br>annually various<br>US mutual funds1 (3.9) (2.1) (1.9) 58.4 17 monthly monthly<br>Total 17.0 59.3 14.6 69.0 30 |
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| 32<br>US MUTUAL FUNDS WITH PERFORMANCE FEES<br>Note: AUM data shown on a managed view. 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>4 The Fund will liquidate on or about 30 April 2021.<br>Mutual funds with performance fees¹<br>AUM<br>31 Mar 21<br>(US$m) Benchmark<br>Base<br>fee<br>Performance<br>fee2<br>Performance<br>cap/(floor) vs<br>benchmark<br>Q1 2021 P&L<br>impact<br>(US$’000)<br>Forty Fund and Portfolio 20,269 Russell 1000® Growth Index 0.64% ± 15 bps ± 8.50% 1,473<br>Research Fund and Portfolio 19,389 Russell 1000® Growth Index 0.64% ± 15 bps ± 5.00% (5,826)<br>Contrarian Fund 4,173 S&P 500® Index 0.64% ± 15 bps ± 7.00% 1,071<br>Global Research Fund and Portfolio 4,169 MSCI World IndexSM 0.60% ± 15 bps ± 6.00% 970<br>Small Cap Value Fund 4,098 Russell 2000® Value Index 0.72% ± 15 bps ± 5.50% (1,194)<br>Mid Cap Value Fund and Portfolio 2,992 Russell Midcap® Value Index 0.64% ± 15 bps ± 4.00% (1,210)<br>Overseas Fund and Portfolio 2,210 MSCI All Country World ex-U.S. IndexSM 0.64% ± 15 bps ± 7.00% 735<br>Global Real Estate Fund 738 FTSE EPRA / NAREIT Global Index 0.75% ± 15 bps ± 4.00% 163<br>Small-Mid Cap Value Fund3 116 Russell 2500TM Value Index 0.70% ± 15 bps ± 5.00% (23)<br>Global Value Fund4 110 MSCI World IndexSM 0.64% ± 15 bps ± 7.00% (66)<br>Large Cap Value Fund4 99 Russell 1000® Value Index 0.64% ± 15 bps ± 3.50% (36)<br>Asia Equity Fund 49 MSCI All Country Asia ex-Japan IndexSM 0.92% ± 15 bps ± 7.00% 4<br>Total 58,412 (3,939) |
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| 33<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 46 20 3 ––<br>2021 annual grant 140 71 46 20 3 –<br>Other1 64 27 17 11 7 2<br>Total long-term incentive compensation 302 170 86 34 10 2 |
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| 34<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>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 |
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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 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 or, if<br>available, a summary prospectus containing this and other information, please contact your investment professional or call 800.668.0434.<br>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. |
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