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Janus Henderson Group plc Reports Third Quarter 2024 Results

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Janus Henderson Group reported strong Q3 2024 results with assets under management (AUM) reaching US$382.3 billion, up 6% quarter-over-quarter and 24% year-over-year. The company achieved net inflows of US$0.4 billion and demonstrated solid investment performance with 75% of AUM outperforming benchmarks on a one-year basis. Q3 2024 adjusted diluted EPS was US$0.91, representing a 42% increase year-over-year. The company returned US$102 million to shareholders through dividends and buybacks, declared a quarterly dividend of US$0.39 per share, and approved a US$50 million increase to its share repurchase program.

Janus Henderson Group ha riportato risultati solidi per il terzo trimestre del 2024, con attività sotto gestione (AUM) che hanno raggiunto i 382,3 miliardi di dollari, un aumento del 6% rispetto al trimestre precedente e del 24% rispetto allo stesso periodo dell'anno scorso. L'azienda ha registrato flussi netti di 0,4 miliardi di dollari e ha dimostrato una solida performance degli investimenti, con il 75% delle AUM che ha superato i benchmark su base annuale. L'utile per azione diluito rettificato del Q3 2024 è stato di 0,91 USD, rappresentando un aumento del 42% rispetto all'anno precedente. L'azienda ha restituito 102 milioni di dollari agli azionisti attraverso dividendi e riacquisti, ha dichiarato un dividendo trimestrale di 0,39 dollari per azione e ha approvato un incremento di 50 milioni di dollari per il suo programma di riacquisto di azioni.

Janus Henderson Group reportó resultados sólidos en el tercer trimestre de 2024, con activos bajo gestión (AUM) alcanzando 382.3 mil millones de dólares, un aumento del 6% en comparación con el trimestre anterior y del 24% en comparación con el año anterior. La compañía logró flujos netos de 0.4 mil millones de dólares y demostró un sólido desempeño en inversiones, con el 75% de AUM superando los puntos de referencia en base anual. El beneficio por acción diluido ajustado del Q3 2024 fue de 0.91 USD, lo que representa un aumento del 42% en comparación con el año anterior. La empresa devolvió 102 millones de dólares a los accionistas a través de dividendos y recompras, declaró un dividendo trimestral de 0.39 dólares por acción, y aprobó un aumento de 50 millones de dólares para su programa de recompra de acciones.

Janus Henderson Group는 2024년 3분기 강력한 실적을 보고했으며, 운용 자산(AUM)이 3,823억 달러에 달해 전 분기 대비 6%, 전년 동기 대비 24% 증가했습니다. 회사는 넷 유입이 4억 달러에 도달했으며, AUM의 75%가 연간 기준으로 벤치마크를 초과하는 탄탄한 투자 성과를 보여주었습니다. 2024년 3분기의 조정 후 희석 주당순이익은 0.91달러로, 전년 대비 42% 증가한 수치입니다. 회사는 배당금과 자사주 매입을 통해 주주에게 1억 200만 달러를 환원하였고, 주당 0.39달러의 분기 배당금을 선언했으며, 자사주 매입 프로그램을 5천만 달러 증액하는 것을 승인했습니다.

Janus Henderson Group a annoncé de solides résultats pour le troisième trimestre de 2024, avec des actifs sous gestion (AUM) atteignant 382,3 milliards de dollars, en hausse de 6 % par rapport au trimestre précédent et de 24 % par rapport à l'année précédente. La société a enregistré des afflux nets de 0,4 milliard de dollars et a démontré une solide performance d'investissement, avec 75 % des AUM dépassant les indices de référence sur une base annuelle. Le bénéfice par action dilué ajusté pour le T3 2024 s'élevait à 0,91 USD, représentant une augmentation de 42 % par rapport à l'année précédente. La société a retourné 102 millions de dollars aux actionnaires par le biais de dividendes et de rachats, a déclaré un dividende trimestriel de 0,39 USD par action et a approuvé une augmentation de 50 millions de dollars de son programme de rachat d'actions.

Janus Henderson Group hat für das dritte Quartal 2024 starke Ergebnisse berichtet, mit verwalteten Vermögenswerten (AUM) in Höhe von 382,3 Milliarden US-Dollar, was einem Anstieg von 6% im Vergleich zum Vorquartal und 24% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete Nettozuflüsse von 0,4 Milliarden US-Dollar und zeigte eine solide Anlageperformance, wobei 75% der AUM die Benchmark im Jahresvergleich übertrafen. Der bereinigte verwässerte Gewinn je Aktie im Q3 2024 lag bei 0,91 USD, was einer Steigerung von 42% im Vergleich zum Vorjahr entspricht. Das Unternehmen gab 102 Millionen US-Dollar an die Aktionäre durch Dividenden und Rückkäufe zurück, erklärte eine vierteljährliche Dividende von 0,39 USD pro Aktie und genehmigte eine Erhöhung des Aktienrückkaufprogramms um 50 Millionen US-Dollar.

Positive
  • Net inflows of US$0.4 billion for second consecutive quarter
  • AUM increased 24% year-over-year to US$382.3 billion
  • Adjusted diluted EPS grew 42% year-over-year to US$0.91
  • Strong investment performance with 75% of AUM outperforming benchmarks
  • Operating income increased 35% year-over-year to US$164.7 million
Negative
  • Operating margin declined to 26.4% from 27.9% in previous quarter
  • Diluted EPS decreased to US$0.17 from US$0.81 in Q2 2024

Insights

A strong quarter with notable improvements across key metrics. $382.3B AUM represents a 6% quarter-over-quarter and 24% year-over-year increase. The consecutive quarters of net inflows ($0.4B in Q3) mark a significant turnaround from previous outflow trends. Adjusted diluted EPS of $0.91 shows impressive 42% YoY growth, driven by better net flows and stable management fees.

Investment performance metrics are particularly strong, with 75% of AUM outperforming benchmarks over one year and 85% over ten years. The $50M increase in share buyback authorization to $200M total, combined with a stable $0.39 quarterly dividend, demonstrates confidence in cash flow generation and commitment to shareholder returns.

The fixed income segment shows remarkable strength with 98% of AUM outperforming benchmarks over one year, while equities segment grew to $237.1B AUM despite experiencing net outflows. The 34.9% adjusted operating margin reflects strong operational efficiency, though slightly down from Q2's 35.9%.

The acquisition contribution of $1.1B to AUM, while modest, signals strategic growth initiatives. The company's multi-asset and alternatives capabilities maintain solid performance metrics, with over 95% of multi-asset AUM outperforming across all time periods, providing important diversification benefits.

  • Solid investment performance, with 75%, 71%, 67%, and 85% of assets under management (“AUM”) outperforming relevant benchmarks on a one-, three-, five-, and 10-year basis, respectively, as of September 30, 2024
  • Consecutive quarters of net inflows with third quarter 2024 net inflows of US$0.4 billion
  • Third quarter 2024 diluted EPS of US$0.17 includes a US$111.9 million non-cash, non-operating, accounting expense release. Adjusted diluted EPS of US$0.91 is an increase of 42% year over year
  • AUM increased 6% quarter over quarter and 24% year over year to US$382.3 billion as of September 30, 2024
  • Returned US$102 million in capital to shareholders through dividends and share buybacks in third quarter 2024
  • Board of Directors ("Board") declared a quarterly dividend of US$0.39 per share and approved a US$50 million increase to the Company’s existing common stock repurchase authorization

LONDON--(BUSINESS WIRE)-- Janus Henderson Group plc (NYSE: JHG; “JHG," "Janus Henderson,” or the “Company”) published its third quarter 2024 results for the period ended September 30, 2024. Third quarter 2024 operating income was US$164.7 million compared to US$164.3 million in the second quarter 2024 and US$121.7 million in the third quarter 2023. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, was US$170.5 million in the third quarter 2024 compared to US$164.7 million in the second quarter 2024 and US$125.4 million in the third quarter 2023.

Third quarter 2024 diluted earnings per share of US$0.17, which was impacted by a US$111.9 million non-cash, non-operating, accounting expense release of accumulated foreign currency translation adjustments related to JHG entities liquidated during the quarter, compared to US$0.81 in the second quarter 2024 and US$0.56 in the third quarter 2023. Adjusted diluted earnings per share of US$0.91 in the third quarter 2024 compared to US$0.85 in the second quarter 2024 and compared to US$0.64 in the third quarter 2023.

Ali Dibadj, Chief Executive Officer, stated:

"Janus Henderson again delivered another solid set of quarterly results, building upon tangible momentum in the business. The results reflect market gains, solid investment performance produced by our world-class investment professionals, a second consecutive quarter of positive net flows delivered by our dedicated client groups, and the efforts and productivity from all our operating and support areas. Our teams have worked together to execute our strategy to Protect & Grow, Amplify, and Diversify our business, which is delivering growth across channels and regions. Better net flows, a stable net management fee rate, and operating leverage resulted in a 42% year-over-year increase in our adjusted diluted EPS to US$0.91. Our healthy balance sheet and strong cash flow generation provide us the flexibility to continue to invest in the business—both organically and inorganically—as well as return cash to shareholders. While we are pleased with the clear momentum, we recognize there will always be work to be done, and we continue to be focused on positioning Janus Henderson to deliver superior outcomes for our clients, employees, shareholders, and other stakeholders."

SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ millions, except per share data or as noted)

The Company presents its financial results in US$ and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). However, JHG management evaluates the profitability of the Company 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

 

 

30 Sep

 

30 Jun

 

30 Sep

 

 

2024

 

2024

 

2023

GAAP basis:

 

 

 

 

 

 

 

 

 

Revenue

 

 

624.8

 

 

 

588.4

 

 

 

521.0

 

Operating expenses

 

 

460.1

 

 

 

424.1

 

 

 

399.3

 

Operating income

 

 

164.7

 

 

 

164.3

 

 

 

121.7

 

Operating margin

 

 

26.4

%

 

 

27.9

%

 

 

23.4

%

Net income attributable to JHG

 

 

27.3

 

 

 

129.7

 

 

 

93.5

 

Diluted earnings per share

 

 

0.17

 

 

 

0.81

 

 

 

0.56

 

 

 

 

 

 

 

 

 

 

 

Adjusted basis:

 

 

 

 

 

 

 

 

 

Revenue

 

 

488.1

 

 

 

458.3

 

 

 

405.0

 

Operating expenses

 

 

317.6

 

 

 

293.6

 

 

 

279.6

 

Operating income

 

 

170.5

 

 

 

164.7

 

 

 

125.4

 

Operating margin

 

 

34.9

%

 

 

35.9

%

 

 

31.0

%

Net income attributable to JHG

 

 

144.7

 

 

 

135.2

 

 

 

106.7

 

Diluted earnings per share

 

 

0.91

 

 

 

0.85

 

 

 

0.64

 

SHARE REPURCHASE AND DIVIDEND

On October 30, 2024, the Board declared a dividend of US$0.39 per share for the quarter ended September 30, 2024. Shareholders on the register on the record date of November 11, 2024, will be paid the dividend on November 27, 2024.

As part of the US$150 million on-market share repurchase program approved by the Board in May 2024, JHG purchased 1.1 million of its common stock on the New York Stock Exchange (NYSE) in the third quarter, for a total outlay of approximately US$40 million. Additionally, on October 30, 2024, the Board approved a US$50 million increase to this existing on-market share repurchase program, bringing the total repurchase authorization to up to US$200 million of common stock.

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 transfers.

Total comparative AUM and flows

 

 

Three months ended

 

 

30 Sep

 

30 Jun

 

30 Sep

 

 

2024

 

2024

 

2023

Opening AUM

 

 

361.4

 

 

 

352.6

 

 

 

322.1

 

Sales

 

 

16.1

 

 

 

18.1

 

 

 

11.8

 

Redemptions

 

 

(15.7

)

 

 

(16.4

)

 

 

(14.4

)

Net sales / (redemptions)

 

 

0.4

 

 

 

1.7

 

 

 

(2.6

)

Market / FX

 

 

19.4

 

 

 

7.1

 

 

 

(11.2

)

Acquisitions

 

 

1.1

 

 

 

 

 

 

 

Closing AUM

 

 

382.3

 

 

 

361.4

 

 

 

308.3

 

Quarterly AUM and flows by capability

 

 

 

 

 

 

Fixed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

Income

 

Multi-Asset

 

Alternatives

 

Total

AUM 30 Sep 2023

 

 

187.9

 

 

 

65.1

 

 

 

45.9

 

 

 

9.4

 

 

 

308.3

 

Sales

 

 

6.0

 

 

 

6.9

 

 

 

1.0

 

 

 

0.5

 

 

 

14.4

 

Redemptions

 

 

(9.2

)

 

 

(5.2

)

 

 

(2.4

)

 

 

(0.7

)

 

 

(17.5

)

Net sales / (redemptions)

 

 

(3.2

)

 

 

1.7

 

 

 

(1.4

)

 

 

(0.2

)

 

 

(3.1

)

Market / FX

 

 

20.4

 

 

 

4.7

 

 

 

4.4

 

 

 

0.2

 

 

 

29.7

 

AUM 31 Dec 2023

 

 

205.1

 

 

 

71.5

 

 

 

48.9

 

 

 

9.4

 

 

 

334.9

 

Sales

 

 

8.1

 

 

 

5.8

 

 

 

1.3

 

 

 

0.7

 

 

 

15.9

 

Redemptions

 

 

(9.2

)

 

 

(5.7

)

 

 

(2.1

)

 

 

(1.9

)

 

 

(18.9

)

Net sales / (redemptions)

 

 

(1.1

)

 

 

0.1

 

 

 

(0.8

)

 

 

(1.2

)

 

 

(3.0

)

Market / FX

 

 

18.3

 

 

 

(1.0

)

 

 

3.0

 

 

 

0.4

 

 

 

20.7

 

AUM 31 Mar 2024

 

 

222.3

 

 

 

70.6

 

 

 

51.1

 

 

 

8.6

 

 

 

352.6

 

Sales

 

 

7.0

 

 

 

8.3

 

 

 

1.6

 

 

 

1.2

 

 

 

18.1

 

Redemptions

 

 

(8.4

)

 

 

(5.0

)

 

 

(2.4

)

 

 

(0.6

)

 

 

(16.4

)

Net sales / (redemptions)

 

 

(1.4

)

 

 

3.3

 

 

 

(0.8

)

 

 

0.6

 

 

 

1.7

 

Market / FX

 

 

5.3

 

 

 

0.5

 

 

 

1.3

 

 

 

 

 

 

7.1

 

Reclassifications

 

 

 

 

 

0.1

 

 

 

(0.1

)

 

 

 

 

 

 

AUM 30 Jun 2024

 

 

226.2

 

 

 

74.5

 

 

 

51.5

 

 

 

9.2

 

 

 

361.4

 

Sales

 

 

7.9

 

 

 

6.1

 

 

 

1.4

 

 

 

0.7

 

 

 

16.1

 

Redemptions

 

 

(9.4

)

 

 

(3.9

)

 

 

(1.8

)

 

 

(0.6

)

 

 

(15.7

)

Net sales / (redemptions)

 

 

(1.5

)

 

 

2.2

 

 

 

(0.4

)

 

 

0.1

 

 

 

0.4

 

Market / FX

 

 

12.4

 

 

 

3.8

 

 

 

2.4

 

 

 

0.8

 

 

 

19.4

 

Acquisitions

 

 

 

 

 

0.8

 

 

 

 

 

 

0.3

 

 

 

1.1

 

AUM 30 Sep 2024

 

 

237.1

 

 

 

81.3

 

 

 

53.5

 

 

 

10.4

 

 

 

382.3

 

Average AUM by capability

 

 

Three months ended

 

 

30 Sep

 

30 Jun

 

30 Sep

 

 

2024

 

2024

 

2023

Equities

 

 

229.6

 

 

 

220.8

 

 

 

196.9

 

Fixed Income

 

 

78.5

 

 

 

71.7

 

 

 

66.1

 

Multi-Asset

 

 

52.1

 

 

 

50.7

 

 

 

47.7

 

Alternatives

 

 

9.7

 

 

 

8.9

 

 

 

9.4

 

Total

 

 

369.9

 

 

 

352.1

 

 

 

320.1

 

INVESTMENT PERFORMANCE

% of AUM outperforming benchmark (as of September 30, 2024)

 

Capability

 

1-year

 

3-year

 

5-year

 

10-year

Equities

 

 

63

%

 

 

61

%

 

 

54

%

 

 

80

%

Fixed Income

 

 

98

%

 

 

81

%

 

 

89

%

 

 

93

%

Multi-Asset

 

 

97

%

 

 

96

%

 

 

97

%

 

 

97

%

Alternatives

 

 

84

%

 

 

94

%

 

 

100

%

 

 

100

%

Total

 

 

75

%

 

 

71

%

 

 

67

%

 

 

85

%

Outperformance is measured based on composite performance gross of fees versus 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 versus zero for absolute return strategies, (2) fund net of fees versus primary index, or (3) fund net of fees versus Morningstar peer group average or median. Non-discretionary and separately managed account assets are included with a corresponding composite where applicable.

Cash management vehicles, ETF-enhanced beta strategies, legacy Tabula passive ETFs, Fixed Income Buy & Maintain mandates, legacy NBK Capital funds, Managed CDOs, Private Equity funds, and custom non-discretionary accounts with no corresponding composite are excluded from the analysis. Excluded assets represent 3% of AUM. Capabilities defined by Janus Henderson.

% of mutual fund AUM in top 2 Morningstar quartiles (as of September 30, 2024)

 

Capability

 

1-year

 

3-year

 

5-year

 

10-year

Equities

 

 

77

%

 

 

73

%

 

 

80

%

 

 

87

%

Fixed Income

 

 

81

%

 

 

57

%

 

 

67

%

 

 

71

%

Multi-Asset

 

 

96

%

 

 

95

%

 

 

95

%

 

 

96

%

Alternatives

 

 

37

%

 

 

87

%

 

 

42

%

 

 

100

%

Total

 

 

80

%

 

 

74

%

 

 

81

%

 

 

87

%

Includes Janus Investment Fund, Janus Aspen Series, Janus Henderson Detroit Street Trust (ETFs), and Clayton Street Trust (U.S. Trusts), Janus Henderson Capital Funds (Dublin based), Dublin and UK OEIC and Investment Trusts, Luxembourg SICAVs, Australian Managed Investment Schemes, and legacy Tabula ICAVs (legacy Tabula passive ETFs are excluded). 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 September 30, 2024, 62%, 57%, 60%, and 63% of the 187, 175, 160, and 144 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 U.S. Trusts; Class H 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.

Funds not ranked by Morningstar are excluded from the analysis. Capabilities defined by Janus Henderson. © 2024 Morningstar, Inc. All Rights Reserved.

THIRD QUARTER 2024 RESULTS BRIEFING INFORMATION

Chief Executive Officer Ali Dibadj and Chief Financial Officer Roger Thompson will present these results on October 31, 2024, on a conference call and webcast to be held at 9:00 a.m. ET.

Those wishing to participate should call:

United States

 

833 470 1428

United Kingdom

 

0808 189 6484

All other countries

 

+1 929 526 1599

Conference ID

 

008089

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 clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service. As of September 30, 2024, Janus Henderson had approximately US$382 billion in assets under management, more than 2,000 employees, and offices in 24 cities worldwide. The firm helps millions of people globally invest in a brighter future together. Headquartered in London, Janus Henderson is listed on the NYSE.

FINANCIAL DISCLOSURES

Condensed consolidated statements of comprehensive income (unaudited)

 

 

Three months ended

 

 

30 Sep

 

30 Jun

 

30 Sep

(in US$ millions, except per share data or as noted)

 

2024

 

2024

 

2023

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

 

 

502.8

 

 

 

472.8

 

 

 

434.9

 

Performance fees

 

 

8.6

 

 

 

7.4

 

 

 

(15.8

)

Shareowner servicing fees

 

 

61.4

 

 

 

58.5

 

 

 

54.9

 

Other revenue

 

 

52.0

 

 

 

49.7

 

 

 

47.0

 

Total revenue

 

 

624.8

 

 

 

588.4

 

 

 

521.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

177.0

 

 

 

166.3

 

 

 

149.2

 

Long-term incentive plans

 

 

40.5

 

 

 

36.4

 

 

 

32.6

 

Distribution expenses

 

 

133.7

 

 

 

126.6

 

 

 

116.0

 

Investment administration

 

 

17.7

 

 

 

12.8

 

 

 

12.4

 

Marketing

 

 

8.3

 

 

 

9.8

 

 

 

9.6

 

General, administrative and occupancy

 

 

77.4

 

 

 

66.9

 

 

 

73.7

 

Depreciation and amortization

 

 

5.5

 

 

 

5.3

 

 

 

5.8

 

Total operating expenses

 

 

460.1

 

 

 

424.1

 

 

 

399.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

164.7

 

 

 

164.3

 

 

 

121.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4.5

)

 

 

(3.2

)

 

 

(3.2

)

Investment gains (losses), net

 

 

35.0

 

 

 

6.4

 

 

 

(5.9

)

Other non-operating income (expense), net

 

 

(101.6

)

 

 

7.6

 

 

 

(13.4

)

Income before taxes

 

 

93.6

 

 

 

175.1

 

 

 

99.2

 

Income tax provision

 

 

(43.6

)

 

 

(41.6

)

 

 

(13.2

)

Net income

 

 

50.0

 

 

 

133.5

 

 

 

86.0

 

Net loss (income) attributable to noncontrolling interests

 

 

(22.7

)

 

 

(3.8

)

 

 

7.5

 

Net income attributable to JHG

 

 

27.3

 

 

 

129.7

 

 

 

93.5

 

Less: allocation of earnings to participating stock-based awards

 

 

(0.7

)

 

 

(3.2

)

 

 

(2.8

)

Net income attributable to JHG common shareholders

 

 

26.6

 

 

 

126.5

 

 

 

90.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding (in millions)

 

 

154.4

 

 

 

155.6

 

 

 

160.8

 

Diluted weighted-average shares outstanding (in millions)

 

 

154.7

 

 

 

155.8

 

 

 

160.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (in US$)

 

 

0.17

 

 

 

0.81

 

 

 

0.56

 

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 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.

 

 

Three months ended

 

 

30 Sep

 

30 Jun

 

30 Sep

 

(in US$ millions, except per share data or as noted)

 

2024

 

2024

 

2023

 

Reconciliation of revenue to adjusted revenue

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

624.8

 

 

 

588.4

 

 

 

521.0

 

Management fees1

 

 

(51.4

)

 

 

(48.2

)

 

 

(41.4

)

Shareowner servicing fees1

 

 

(49.9

)

 

 

(47.3

)

 

 

(43.9

)

Other revenue1

 

 

(35.4

)

 

 

(34.6

)

 

 

(30.7

)

Adjusted revenue

 

 

488.1

 

 

 

458.3

 

 

 

405.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of operating expenses to adjusted operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

460.1

 

 

 

424.1

 

 

 

399.3

 

Employee compensation and benefits2

 

 

(4.3

)

 

 

(4.7

)

 

 

(0.9

)

Long-term incentive plans2

 

 

(1.7

)

 

 

(1.7

)

 

 

2.4

 

Distribution expenses1

 

 

(133.7

)

 

 

(126.6

)

 

 

(116.0

)

General, administration and occupancy2

 

 

(2.7

)

 

 

2.6

 

 

 

(4.7

)

Depreciation and amortization3

 

 

(0.1

)

 

 

(0.1

)

 

 

(0.5

)

Adjusted operating expenses

 

 

317.6

 

 

 

293.6

 

 

 

279.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

 

170.5

 

 

 

164.7

 

 

 

125.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

26.4

%

 

 

27.9

%

 

 

23.4

%

Adjusted operating margin

 

 

34.9

%

 

 

35.9

%

 

 

31.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to JHG

 

 

27.3

 

 

 

129.7

 

 

 

93.5

 

Employee compensation and benefits2

 

 

1.3

 

 

 

1.2

 

 

 

0.9

 

Long-term incentive plans2

 

 

1.7

 

 

 

1.7

 

 

 

(2.4

)

General, administration and occupancy2

 

 

2.7

 

 

 

(2.6

)

 

 

4.7

 

Depreciation and amortization3

 

 

0.1

 

 

 

0.1

 

 

 

0.5

 

Interest expense4

 

 

0.1

 

 

 

 

 

 

 

Investment gains (losses), net4

 

 

 

 

 

0.8

 

 

 

(0.2

)

Other non-operating income, net4

 

 

113.3

 

 

 

3.7

 

 

 

25.6

 

Income tax benefit (provision)5

 

 

(1.8

)

 

 

0.6

 

 

 

(15.9

)

Adjusted net income attributable to JHG

 

 

144.7

 

 

 

135.2

 

 

 

106.7

 

Less: allocation of earnings to participating stock-based awards

 

 

(3.6

)

 

 

(3.4

)

 

 

(3.2

)

Adjusted net income attributable to JHG common shareholders

 

 

141.1

 

 

 

131.8

 

 

 

103.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted common shares outstanding – diluted (in millions)

 

 

154.7

 

 

 

155.8

 

 

 

160.9

 

Diluted earnings per share (in US$)

 

 

0.17

 

 

 

0.81

 

 

 

0.56

 

Adjusted diluted earnings per share (in US$)

 

 

0.91

 

 

 

0.85

 

 

 

0.64

 

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 servicing 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. In addition to the adjustments related to distribution and servicing activities, other revenue for the three months ended September 30, 2024, and June 30, 2024, also includes an adjustment related to an employee secondment arrangement with a joint venture. The arrangement is pass-through in nature, and we believe the costs do not represent our ongoing operations.

 

2

Adjustments for the three months ended September 30, 2024, and June 30, 2024, include acquisition related expenses and the acceleration of long-term incentive plan expense related to the departure of certain employees. The adjustment for the three months ended June 30, 2024, also includes a US$4.7 million insurance reimbursement related to a separately managed account trade error that occurred in 2023. Adjustments for the three months ended September 30, 2023, include rent expense, rent income and other rent-related adjustments associated with subleased office space, and the acceleration of long-term incentive plan expense related to the departure of certain employees. JHG management believes these costs are not representative of our ongoing operations. Additionally, within the reconciliation of operating expenses to adjusted operating expenses for the three months ended September 30, 2024, and June 30, 2024, employee compensation and benefits also includes an adjustment related to an employee secondment arrangement with a joint venture. The arrangement is pass-through in nature, and we believe the costs do not represent our ongoing operations.

 

3

Investment management contracts have been identified as a separately identifiable intangible asset arising on the acquisition of subsidiaries and businesses. Such contracts are recognized 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 amortized 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 our ongoing operations.

 

4

Adjustments for the three months ended September 30, 2024, and June 30, 2024, consist primarily of the release of accumulated foreign currency translation adjustments related to JHG liquidated entities. The adjustment for the three months ended September 30, 2023, includes a provision for a credit loss and contingent consideration fair value adjustment related to the 2022 sale of Intech. 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 U.S. or foreign statutory tax rate as it relates to each adjustment. Certain adjustments are either not taxable or not tax-deductible. Adjustments for the three months ended September 30, 2023, were impacted by the change to our state tax rate. As a result, the U.S. deferred tax assets and liabilities were revalued from 23.9% to 23.5%, creating a non-cash deferred tax benefit of US$8.8 million.

Condensed consolidated balance sheets (unaudited)

 

 

30 Sep

 

31 Dec

(in US$ millions)

 

2024

 

2023

Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

1,483.8

 

 

 

1,152.4

 

Investments

 

 

305.0

 

 

 

334.2

 

Property, equipment and software, net

 

 

38.8

 

 

 

44.2

 

Intangible assets and goodwill, net

 

 

3,799.8

 

 

 

3,721.6

 

Assets of consolidated variable interest entities

 

 

749.0

 

 

 

405.9

 

Other assets

 

 

887.4

 

 

 

838.3

 

Total assets

 

 

7,263.8

 

 

 

6,496.6

 

 

 

 

 

 

 

 

 

 

Liabilities, redeemable noncontrolling interests and equity:

 

 

 

 

 

 

 

 

Long-term debt

 

 

698.6

 

 

 

304.6

 

Deferred tax liabilities, net

 

 

576.3

 

 

 

570.8

 

Liabilities of consolidated variable interest entities

 

 

7.2

 

 

 

3.2

 

Other liabilities

 

 

855.0

 

 

 

762.5

 

Redeemable noncontrolling interests

 

 

493.5

 

 

 

317.2

 

Total equity

 

 

4,633.2

 

 

 

4,538.3

 

Total liabilities, redeemable noncontrolling interests and equity

 

 

7,263.8

 

 

 

6,496.6

 

Condensed consolidated statements of cash flows (unaudited)

 

 

Three months ended

 

 

30 Sep

 

30 Jun

 

30 Sep

(in US$ millions)

 

2024

 

2024

 

2023

Cash provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

228.5

 

 

 

223.8

 

 

 

216.9

 

Investing activities

 

 

(215.0

)

 

 

(60.4

)

 

 

16.0

 

Financing activities

 

 

424.6

 

 

 

(50.9

)

 

 

(91.5

)

Effect of exchange rate changes

 

 

31.9

 

 

 

 

 

 

(25.5

)

Net change during period

 

 

470.0

 

 

 

112.5

 

 

 

115.9

 

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 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’s Annual Report on Form 10‑K for the year ended December 31, 2023, filed 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.

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.

Certain statements in this press release not based on historical facts are “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Such forward-looking statements involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events, including with respect to the timing and anticipated benefits of pending and recently completed transactions and expectations regarding acquisition opportunities. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.

Various risks, uncertainties, assumptions, and factors that could cause our future results to differ materially from those expressed by the forward-looking statements included in this press release include, but are not limited to, risks, uncertainties, assumptions, and factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023, and in other filings or furnishings made by the Company with the SEC from time to time.

Annualized, 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.

Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries.
© Janus Henderson Group plc.

Investor enquiries:

Jim Kurtz

Head of Investor Relations

+1 303 336 4529

jim.kurtz@janushenderson.com

Or

Investor Relations

investor.relations@janushenderson.com

Media enquiries:

Candice Sun

Global Head of Media Relations

+1 303 336 5452

candice.sun@janushenderson.com

Nicole Mullin

Media Relations Director, UK, EMEA, LatAm & APAC

+44 (0)20 7818 2511

nicole.mullin@janushenderson.com

Source: Janus Henderson Group

FAQ

What was Janus Henderson's (JHG) AUM in Q3 2024?

Janus Henderson's AUM reached US$382.3 billion as of September 30, 2024, representing a 6% increase quarter-over-quarter and 24% increase year-over-year.

What was JHG's adjusted EPS for Q3 2024?

Janus Henderson reported adjusted diluted EPS of US$0.91 for Q3 2024, a 42% increase from US$0.64 in Q3 2023.

How much did Janus Henderson (JHG) return to shareholders in Q3 2024?

Janus Henderson returned US$102 million to shareholders through dividends and share buybacks in Q3 2024.

What was JHG's investment performance in Q3 2024?

75% of AUM outperformed benchmarks on a one-year basis, with 71%, 67%, and 85% outperforming on three-, five-, and 10-year bases respectively.

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