• Assets Under Management (AUM): Decreased 1% to $373.2 billion.
• Net Inflows: $2 billion, marking the fourth consecutive quarter of positive net flows.
• Adjusted Diluted EPS: $0.79, an 11% increase compared to Q1 2024.
• Quarterly Dividend: Increased by 3% to $0.40 per share.
• Share Buyback Authorization: Up to $200 million through April 2026.
• Net Management Fee Margin: Stable at 48.5 basis points.
• Adjusted Operating Margin: 32%, an increase of 220 basis points from a year ago.
• Cash and Cash Equivalents: $1.1 billion as of March 31, 2025.
• Net Inflows by Channel: Intermediary channel $1.5 billion; Institutional net inflows $800 million.
• Equity Flows: Negative $4.2 billion.
• Fixed Income Flows: Positive $5.6 billion.
• Alternatives Capability Net Inflows: $1.2 billion.
• Adjusted Operating Expenses: Decreased 9% to $330 million compared to the prior quarter.
• Adjusted Comp to Revenue Ratio: 45.8%, down from 48.2% in Q1 2024.

• Warning! GuruFocus has detected 4 Warning Signs with JHG.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Janus Henderson Group PLC (NYSE:JHG) reported its fourth consecutive quarter of positive net flows, with $2 billion in net inflows, reflecting a 44% increase in year-over-year gross sales.
• The company announced a strategic partnership with Guardian Life Insurance Company, which includes managing a $45 billion investment-grade public fixed income portfolio, expanding JHG's fixed income AUM significantly.
• Long-term investment performance remains strong, with at least 65% of assets beating respective benchmarks over 3-, 5-, and 10-year periods, and over 70% of AUM in the top two Morningstar quartiles.
• JHG's adjusted diluted EPS increased by 11% compared to the first quarter of 2024, demonstrating solid financial performance.
• The company announced a 3% increase in its quarterly dividend and a new share buyback authorization of up to $200 million, reflecting confidence in its financial stability and commitment to returning value to shareholders.

Negative Points

• Assets under management decreased by 1% to $373.2 billion due to market declines, despite positive net flows and favorable currency adjustments.
• Equity flows were negative $4.2 billion, impacted by a challenging environment for active equities and market dislocation.
• The net management fee margin is expected to decrease by approximately 5 to 6 basis points once the Guardian assets are fully onboarded, potentially impacting revenue.
• Adjusted operating results were lower compared to the prior quarter due to significant annual performance fees realized in the fourth quarter of 2024.
• The company faces ongoing market challenges, including US recession fears and global trade uncertainty, which could impact future performance and investor sentiment.

Q & A Highlights

Q: How is Janus Henderson managing the liquidity of its CLO ETF franchise, especially during market stress? A: Ali Dibadj, CEO, explained that the CLO ETF franchise has been successful, with year-to-date positive flows of $3 billion, representing 80% of the market share. The investors are mostly medium- to long-term, and despite market volatility, the redemptions have been absorbed as expected, with no dislocations or surprises.

Q: What are the next steps for improving results in the institutional channel? A: Ali Dibadj, CEO, noted that the institutional channel has seen consecutive quarters of positive flows, with a growing pipeline. The company is seeing increased RFP activity and consultant support, and is focusing on broad-based interest in products like emerging market debt, tech, healthcare, and small-cap equities.

Q: What are the growth opportunities with the Guardian partnership? A: Ali Dibadj, CEO, highlighted that the partnership with Guardian, a top 15 unaffiliated insurance asset manager, offers growth potential in insurance relationships and institutional clients. The partnership includes a $400 million seed capital opportunity and collaboration with Guardian's broker-dealer, Park Avenue Securities, to develop investment solutions.

Q: What is Janus Henderson's approach to M&A in the current market environment? A: Ali Dibadj, CEO, stated that the M&A environment is very active, with significant interest in partnerships. The company remains disciplined, focusing on client-led and market-led opportunities, and is seen as a safe harbor in tumultuous times. The bid/ask spread has narrowed, but there is no capitulation yet.

Q: What is the expected flow trajectory for the $45 billion AUM from the Guardian partnership? A: Ali Dibadj, CEO, expects growth in the $45 billion AUM, given Guardian's successful history and alignment with Janus Henderson's growth objectives. The partnership is seen as a strong foundation for further growth in the insurance client business.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.