Janus Henderson’s Record AUM and Strategic Growth

Janus Henderson Group ((JHG)) has held its Q2 earnings call. Read on for the main highlights of the call.

Janus Henderson Group’s recent earnings call conveyed a generally positive sentiment, underscored by record assets under management (AUM), improved investment performance, and a successful strategic partnership with Guardian. The company reported positive net flows and enhanced financial results, contributing to a favorable outlook. However, challenges persist with retail outflows, struggles in the U.K. market, and negative equity flows.

Record AUM Achieved

Janus Henderson reached its highest quarterly AUM ever at $457.3 billion, marking a 23% increase. This growth was driven by the addition of Guardian AUM, market gains, and favorable currency adjustments, showcasing the company’s robust asset management capabilities.

Strong Investment Performance

The company reported significant improvements in investment performance, with at least two-thirds of AUM outperforming benchmarks over 1-, 3-, 5-, and 10-year periods. Impressively, over 70% of AUM is positioned in the top two Morningstar quartiles across all timeframes, highlighting Janus Henderson’s effective investment strategies.

Guardian Partnership Success

The strategic partnership with Guardian has been fruitful, expanding Janus Henderson’s fixed income AUM to $142 billion, which constitutes over 30% of the company’s total AUM. Guardian’s commitment of up to $400 million in seed capital, with $100 million already allocated to the JABS ETF, underscores the partnership’s potential.

Positive Net Flows

Janus Henderson achieved its fifth consecutive quarter of positive net flows. Excluding Guardian’s general account, gross sales improved by 40% compared to the second quarter of last year, indicating strong sales momentum and effective client engagement strategies.

Improved Financial Results

The company reported a 6% increase in adjusted diluted EPS compared to the same period last year, reflecting solid financial performance and a strong balance sheet. This improvement underscores Janus Henderson’s ability to navigate market challenges while delivering shareholder value.

Challenging Retail Outflows

Despite the positive overall performance, retail net outflows were impacted by market volatility, especially in April. The intermediary channel experienced net outflows of $1.2 billion, highlighting the challenges in maintaining retail investor confidence amid fluctuating markets.

U.K. Net Outflows

The U.K. market faced net outflows, primarily due to investment trusts and the global strategic total bond strategy, which affected overall performance. This indicates ongoing challenges in the U.K. market that Janus Henderson must address.

Negative Equity Flows

Equity flows were negative by $2.6 billion, despite achieving the best gross sales quarter in two years for equity capabilities. This suggests that while sales are strong, there are underlying challenges in equity investment that need attention.

Forward-Looking Guidance

Looking ahead, Janus Henderson remains optimistic about its growth prospects. The company aims to leverage its record AUM of $457.3 billion, driven by strategic partnerships and market gains. With positive net flows for five consecutive quarters and strong investment performance, Janus Henderson is well-positioned to pursue both organic and inorganic growth initiatives. The launch of the JABS ETF, supported by Guardian’s seed capital, further expands their active fixed income offerings, setting a solid foundation for future growth.

In conclusion, Janus Henderson Group’s earnings call highlighted a positive trajectory with record AUM and strong investment performance, despite some challenges in retail and equity flows. The strategic partnership with Guardian and consistent positive net flows underscore the company’s resilience and growth potential in the financial markets.