- Solid investment performance, with 72%, 64%, 67% and 86% of
assets under management (‘AUM’) outperforming relevant benchmarks
on a one-, three-, five- and 10-year basis, respectively, as at 30
September 2021
- Third quarter 2021 operating income was US$248.3 million; third
quarter 2021 adjusted operating income of US$253.0 million
increased 56% compared to the same period a year ago
- AUM of US$419.3 billion decreased 2% compared to the prior
quarter, primarily due to net outflows of US$(5.2) billion which
were concentrated in Quantitative Equities
- Completed US$75.0 million of share buybacks during the third
quarter
- Board declared quarterly dividend of US$0.38 per share
Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’)
published its third quarter 2021 results for the period ended 30
September 2021.
Third quarter 2021 operating income was US$248.3 million
compared to US$225.0 million in the second quarter 2021 and
US$156.5 million in the third quarter 2020. Adjusted operating
income, adjusted for one-time, acquisition and transaction related
costs, was US$253.0 million in the third quarter 2021 compared to
US$269.3 million in the second quarter 2021 and US$162.1 million in
the third quarter 2020.
Third quarter 2021 diluted earnings per share of US$1.14
increased 44% compared to US$0.79 in the second quarter 2021 and
increased 75% compared to US$0.65 in the third quarter 2020.
Adjusted diluted earnings per share of US$1.16 in the third quarter
2021 was flat versus US$1.16 in the second quarter 2021 and
increased 66% compared to US$0.70 in the third quarter 2020.
Dick Weil, Chief Executive Officer of Janus Henderson Group
plc, stated:
“Third quarter financial results were strong with adjusted
operating income of US$253.0 million and adjusted diluted EPS of
US$1.16 up 56% and 66%, respectively, from one year ago,
demonstrating the operating leverage in our business.
“We have made significant progress delivering our strategy of
Simple Excellence, which is resulting in momentum building across
the business. We have a strong foundation, and the progress we have
made allows us to take advantage of trends that our clients are
asking us to support them on. We expect this to result in the
delivery of growth through organic and inorganic opportunities that
accentuate our distribution excellence, our investment expertise
and our differentiated operating platform.”
SUMMARY OF FINANCIAL RESULTS
(unaudited) (in US$ 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
30 Sep
30 Jun
30 Sep
2021
2021
2020
GAAP
basis:
Revenue
687.4
738.4
568.5
Operating expenses
439.1
513.4
412.0
Operating income
248.3
225.0
156.5
Operating margin
36.1
%
30.5
%
27.5
%
Net income attributable to JHG
196.8
137.3
118.9
Diluted earnings per share
1.14
0.79
0.65
Adjusted
basis:
Revenue
545.3
603.6
449.7
Operating expenses
292.3
334.3
287.6
Operating income
253.0
269.3
162.1
Operating margin
46.4
%
44.6
%
36.0
%
Net income attributable to JHG
199.5
200.5
129.6
Diluted earnings per share
1.16
1.16
0.70
DIVIDEND AND SHARE
BUYBACK
On 27 October 2021, the Board declared a third quarter dividend
in respect of the three months ended 30 September 2021 of US$0.38
per share. Shareholders on the register on the record date of 8
November 2021 will be paid the dividend on 24 November 2021. Janus
Henderson does not offer a dividend reinvestment plan.
As part of the US$200 million on-market buyback programme
approved by the Board in July 2021, JHG purchased approximately 1.8
million of its ordinary shares on the NYSE and its CHESS Depositary
Interests (CDIs) on the ASX in the third quarter, for a total
outlay of US$75.0 million.
Net tangible assets per
share
US$
30 Sep 2021
31 Dec 2020
Net tangible assets / (liabilities) per
ordinary share
3.93
3.68
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.
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
30 Sep
30 Jun
30 Sep
2021
2021
2020
Opening AUM
427.6
405.1
336.7
Sales
16.0
18.4
15.8
Redemptions
(21.2
)
(20.9
)
(18.7
)
Net sales / (redemptions)
(5.2
)
(2.5
)
(2.9
)
Market / FX
(3.1
)
25.0
24.5
Closing AUM
419.3
427.6
358.3
Quarterly AUM and flows by
capability
Equities
Fixed Income
Multi-Asset
Quantitative
Equities
Alternatives
Total
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
Sales
8.6
5.9
2.4
0.2
1.3
18.4
Redemptions
(10.5
)
(6.0
)
(1.9
)
(1.5
)
(1.0
)
(20.9
)
Net sales / (redemptions)
(1.9
)
(0.1
)
0.5
(1.3
)
0.3
(2.5
)
Market / FX
17.1
1.1
3.2
3.4
0.2
25.0
AUM 30 Jun 2021
240.1
80.5
53.2
43.4
10.4
427.6
Sales
7.5
4.7
2.6
0.1
1.1
16.0
Redemptions
(10.1
)
(4.0
)
(1.8
)
(4.5
)
(0.8
)
(21.2
)
Net sales / (redemptions)
(2.6
)
0.7
0.8
(4.4
)
0.3
(5.2
)
Market / FX
(1.3
)
(1.7
)
(0.1
)
0.1
(0.1
)
(3.1
)
AUM 30 Sep 2021
236.2
79.5
53.9
39.1
10.6
419.3
Average AUM
Three months ended
30 Sep
30 Jun
30 Sep
2021
2021
2020
Equities
243.5
235.3
188.5
Fixed Income
80.9
80.7
74.8
Multi-Asset
54.9
51.8
42.7
Quantitative Equities
41.9
42.9
40.0
Alternatives
10.7
10.1
10.0
Total
431.9
420.8
356.0
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark
(at 30 September 2021)
Capability
1-year
3-year
5-year
10-year
Equities
64
%
56
%
60
%
84
%
Fixed Income
98
%
96
%
96
%
99
%
Multi-Asset
99
%
97
%
97
%
97
%
Quantitative Equities
41
%
2
%
2
%
32
%
Alternatives
94
%
97
%
100
%
100
%
Total
72
%
64
%
67
%
86
%
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 30 September 2021. Capabilities defined by Janus
Henderson.
% of mutual fund AUM in top 2
Morningstar quartiles (at 30 September 2021)
Capability
1-year
3-year
5-year
10-year
Equities
47
%
47
%
49
%
68
%
Fixed Income
84
%
77
%
73
%
69
%
Multi-Asset
20
%
92
%
92
%
94
%
Quantitative Equities
11
%
11
%
11
%
0
%
Alternatives
27
%
70
%
74
%
98
%
Total
47
%
59
%
60
%
73
%
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. For the 1-, 3-, 5- and 10-year periods ending 30
September 2021, 46%, 54%, 50% and 61% of the 195, 185, 180 and 150
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.
FOURTH QUARTER AND FULL-YEAR 2021
RESULTS
Janus Henderson intends to publish its fourth quarter and
full-year 2021 results on 3 February 2022.
THIRD QUARTER 2021 RESULTS
BRIEFING INFORMATION
Chief Executive Officer Dick Weil and Chief Financial Officer
Roger Thompson will present these results on 28 October 2021 on a
conference call and webcast to be held at 8am EDT, 1pm BST, 11pm
AEDT.
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
10160342
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 30 September 2021, Janus Henderson had approximately US$419
billion in assets under management, more than 2,000 employees, and
offices in 25 cities worldwide. Headquartered in London, the
company is listed on the New York Stock Exchange (NYSE) and the
Australian Securities Exchange (ASX).
FINANCIAL DISCLOSURES
Condensed consolidated statements
of comprehensive income (unaudited)
Three months ended
30 Sep
30 Jun
30 Sep
(in US$ millions, except per share data
or as noted)
2021
2021
2020
Revenue:
Management fees
564.5
544.1
457.7
Performance fees
0.6
77.4
7.0
Shareowner servicing fees
67.6
64.0
53.7
Other revenue
54.7
52.9
50.1
Total revenue
687.4
738.4
568.5
Operating expenses:
Employee compensation and benefits
166.2
192.4
154.9
Long-term incentive plans
35.0
49.8
42.7
Distribution expenses
142.1
134.8
118.8
Investment administration
13.0
13.1
13.1
Marketing
7.5
6.7
5.3
General, administrative and occupancy
65.5
65.7
65.6
Impairment of goodwill and intangible
assets
—
40.8
—
Depreciation and amortisation
9.8
10.1
11.6
Total operating expenses
439.1
513.4
412.0
Operating income
248.3
225.0
156.5
Interest expense
(3.2
)
(3.2
)
(3.2
)
Investment gains, net
4.7
1.8
25.5
Other non-operating income (expense),
net
3.6
(2.7
)
(0.9
)
Income before taxes
253.4
220.9
177.9
Income tax provision
(53.3
)
(79.7
)
(40.8
)
Net income
200.1
141.2
137.1
Net income attributable to noncontrolling
interests
(3.3
)
(3.9
)
(18.2
)
Net income attributable to JHG
196.8
137.3
118.9
Less: allocation of earnings to
participating stock-based awards
(5.4
)
(3.9
)
(3.5
)
Net income attributable to JHG common
shareholders
191.4
133.4
115.4
Basic weighted-average shares outstanding
(in millions)
167.1
167.6
178.4
Diluted weighted-average shares
outstanding (in millions)
167.8
168.1
178.8
Diluted earnings per share (in
US$)
1.14
0.79
0.65
Reconciliation of non-GAAP financial information
In addition to financial results reported in accordance with
GAAP, we compute certain financial measures using non-GAAP
components, as defined by the SEC. These measures are not in
accordance with, or a substitute for, GAAP, and our financial
measures may be different from non-GAAP financial measures used by
other companies. We have provided a reconciliation of our non-GAAP
components to the most directly comparable GAAP components. The
following are reconciliations of US GAAP revenue, operating
expenses, operating income, net income attributable to JHG and
diluted earnings per share to adjusted revenue, adjusted operating
expenses, adjusted operating income, adjusted net income
attributable to JHG and adjusted diluted earnings per share.
Three months ended
30 Sep
30 Jun
30 Sep
(in US$ millions, except per share data
or as noted)
2021
2021
2020
Reconciliation of revenue to adjusted
revenue
Revenue
687.4
738.4
568.5
Management fees1
(53.0
)
(49.6
)
(47.9
)
Shareowner servicing fees1
(55.4
)
(53.1
)
(42.8
)
Other revenue1
(33.7
)
(32.1
)
(28.1
)
Adjusted revenue
545.3
603.6
449.7
Reconciliation of operating expenses to
adjusted operating expenses
Operating expenses
439.1
513.4
412.0
Employee compensation and benefits2
—
—
(0.3
)
Long-term incentive plans2
0.1
0.1
0.1
Distribution expenses1
(142.1
)
(134.8
)
(118.8
)
General, administration and occupancy2
(2.9
)
(1.7
)
(3.5
)
Impairment of goodwill and intangible
assets3
—
(40.8
)
—
Depreciation and amortisation3
(1.9
)
(1.9
)
(1.9
)
Adjusted operating expenses
292.3
334.3
287.6
Adjusted operating income
253.0
269.3
162.1
Operating margin
36.1
%
30.5
%
27.5
%
Adjusted operating margin
46.4
%
44.6
%
36.0
%
Reconciliation of net income
attributable to JHG to adjusted net income attributable to
JHG
Net income attributable to JHG
196.8
137.3
118.9
Employee compensation and benefits2
—
—
0.3
Long-term incentive plans2
(0.1
)
(0.1
)
(0.1
)
General, administration and occupancy2
2.9
1.7
3.5
Impairment of goodwill and intangible
assets3
—
40.8
—
Depreciation and amortisation3
1.9
1.9
1.9
Other non-operating income (expense),
net4
(1.6
)
(1.7
)
(0.5
)
Income tax benefit (provision)5
(0.4
)
20.6
5.6
Adjusted net income attributable to
JHG
199.5
200.5
129.6
Less: allocation of earnings to
participating stock-based awards
(5.5
)
(5.7
)
(3.8
)
Adjusted net income attributable to JHG
common shareholders
194.0
194.8
125.8
Weighted-average diluted common shares
outstanding – diluted (two class) (in millions)
167.8
168.1
178.8
Diluted earnings per share (two class)
(in US$)
1.14
0.79
0.65
Adjusted diluted earnings per share
(two class) (in US$)
1.16
1.16
0.70
- 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 servicing activities and retains the applicable
fees. Revenues for distribution and servicing activities performed
by JHG are not deducted from GAAP revenue.
- Adjustments primarily represent rent expense for subleased
office space. In addition, the adjustment for the three months
ended 30 September 2021 includes a one-time charge related to the
employee benefits trust. JHG management believes these costs are
not representative of the ongoing operations of the Group.
- 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 for the three months ended 30 June 2021 also include
impairment charges of certain mutual fund investment management
agreements. JHG management believes these non-cash and
acquisition-related costs are not representative of the ongoing
operations of the Group.
- Adjustments primarily relate to contingent consideration
adjustments associated with prior acquisitions. JHG management
believes these costs are not representative of the ongoing
operations of the Group.
- 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. Adjustments for the three months ended 30 June 2021
include a non-cash deferred tax expense of US$31.0 million due to
the enactment of Finance Act 2021 during the second quarter
2021.
Condensed consolidated balance
sheets (unaudited)
30 Sep
31 Dec
(in US$ millions)
2021
2020
Assets:
Cash and cash equivalents
933.1
1,099.7
Investment securities
445.2
268.1
Property, equipment and software, net
63.7
77.9
Intangible assets and goodwill, net
3,991.7
4,070.2
Assets of consolidated variable interest
entities
258.8
226.5
Other assets
1,010.7
948.4
Total assets
6,703.2
6,690.8
Liabilities, redeemable noncontrolling
interests and equity:
Long-term debt
311.1
313.3
Deferred tax liabilities, net
644.7
627.4
Liabilities of consolidated variable
interest entities
2.9
3.2
Other liabilities
937.2
927.3
Redeemable noncontrolling interests
145.1
85.8
Total equity
4,662.2
4,733.8
Total liabilities, redeemable
noncontrolling interests and equity
6,703.2
6,690.8
Condensed consolidated statements
of cash flows (unaudited)
Three months ended
30 Sep
30 Jun
30 Sep
(in US$ millions)
2021
2021
2020
Cash provided by (used for):
Operating activities
319.4
269.0
183.0
Investing activities
(222.9
)
(66.3
)
135.0
Financing activities
(112.9
)
(62.0
)
(291.2
)
Effect of exchange rate changes
(16.3
)
—
19.3
Net change during period
(32.7
)
140.7
46.1
STATUTORY DISCLOSURES
Associates and joint
ventures
At 30 September 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.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20211028005184/en/
Investor enquiries: Jim Kurtz Co-Head Investor Relations
(US) +1 303 336 4529 jim.kurtz@janushenderson.com
Melanie Horton Co-Head Investor Relations (Non-US) +44 (0)20
7818 2905 melanie.horton@janushenderson.com
Or Investor Relations investor.relations@janushenderson.com
Media enquiries: Stephen Sobey Head of Media Relations
+44 (0)20 7818 2523 stephen.sobey@janushenderson.com
Sarah Johnson Director, Media Relations & Corp Comms +1 720
364 0708 sarah.johnson@janushenderson.com
United Kingdom: Edelman Smithfield Latika Shah +44 (0)7950 671
948 latika.shah@edelmansmithfield.com
Andrew Wilde +44 (0)7786 022 022
andrew.wilde@edelmansmithfield.com
Asia Pacific: Honner Craig Morris +61 2 8248 3757
craig@honner.com.au
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