Janus Henderson Group ((JHG)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Janus Henderson Group’s recent earnings call conveyed a resilient and optimistic outlook despite ongoing market volatility. The company demonstrated consistent positive net flows and robust investment performance, underscoring its strategic growth and commitment to shareholder returns. However, challenges such as equity flows and a slight decline in assets under management (AUM) were also acknowledged.
Consistent Positive Net Flows
Janus Henderson reported its fourth consecutive quarter of positive net flows, achieving a 44% increase in year-over-year gross sales. The net inflows for the quarter amounted to $2 billion, a slight decrease from $3.3 billion in the previous quarter, yet a significant improvement from the $3 billion net outflows recorded a year ago.
Strong Investment Performance
The company maintained strong investment performance, with at least 65% of its assets outperforming respective benchmarks over three, five, and ten-year periods. Impressively, over 70% of Janus Henderson’s AUM ranks in the top two Morningstar quartiles across all time frames.
Strategic Partnership with Guardian Life
A notable strategic partnership with Guardian Life was highlighted, involving the management of a $45 billion investment-grade public fixed-income portfolio and a $400 million seed capital commitment. This partnership significantly expands Janus Henderson’s fixed-income AUM.
Financial Growth and Shareholder Returns
Janus Henderson reported an adjusted diluted EPS of $0.79, marking an 11% increase from the first quarter of 2024. The company announced a 3% increase in its quarterly dividend and a new share buyback authorization of up to $200 million, reflecting its commitment to returning value to shareholders.
Decrease in Assets Under Management
Despite positive net flows and favorable currency adjustments, Janus Henderson experienced a 1% decrease in AUM, bringing the total to $373.2 billion. This decline was attributed to market downturns.
Negative Performance Fees
The company reported negative performance fees of $4 million for the first quarter, an improvement from the negative $13 million recorded a year ago.
Equity Flows Challenges
Janus Henderson faced challenges with equity flows, which were negative $4.2 billion. This was largely due to market dislocation and a prevailing risk-off sentiment among investors.
Forward-Looking Guidance
Looking ahead, Janus Henderson anticipates continued resilience amid market challenges. The company expects the strategic partnership with Guardian Life to lower the aggregate net management fee rate by 5 to 6 basis points once fully onboarded. With a 44% increase in gross sales year-over-year and sustained positive net flows, Janus Henderson remains optimistic about its future performance.
In summary, Janus Henderson’s earnings call highlighted a resilient performance with consistent positive net flows and strong investment outcomes. While challenges in equity flows and a slight AUM decline were noted, strategic partnerships and financial growth initiatives underscore the company’s commitment to delivering value to shareholders.