JHG - Earnings call transcript Q3 2019 | Janus Henderson Group plc

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Operator

Good morning. My name is Nicole, and I will be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group Third Quarter 2019 Earnings Conference Call. [Operator instructions]

In today's conference call, certain matters discussed may constitute forward-looking statements. the materially a projected but company's number to, described differ statements the not most could risk made those to and with and due of in recent recent results Form from of other in those forward-looking limited factors XX-K Actual sections statements more the filings forward-looking factors, SEC. including, the call. update no assumes statements forward-looking Henderson any obligation to during Janus the made

of Dick And Henderson. now, my Weil, it you Chief begin Mr. Janus introduce may Officer you. Weil, Thank pleasure Executive is conference. to your

Dick Weil

third-quarter Welcome, everyone, be earnings to results after take Henderson Janus Group. through questions. be you Thompson the for will XXXX I we'll call quarter today, to which, for and the the Roger happy taking your

try we and is reporting. know, already keep business, long-term on implied you think different I slightly by focus which the our than view quarterly a As

the that address our business include you the robust the updates and on provides the extent, up third and discussion that better We with a To the manage calls set Roger we way second- on our quarter business. but aligns believe calls, of also with same the items, calls fourth-quarter and we first business more and strategy. use the to

for I you. that So hope works

With Roger it through that said, you over let me CFO, to Thompson, turn walk to our the results. third-quarter

Roger Thompson

and us. Thank joining Dick, for you, everyone, thanks,

by points. three characterized be can results quarter's third The

benchmarks their remains performance the respective reaching investment very X- First, over assets and least strong, at time of X-, with periods. X-year XX%

And financial were prior EPS $X.XX X% in ago. compared under outflows of company a the management net resulting the quarter, decline total of results quarter. to prior $X.XX improved compared assets than with to to billion, $X.X quarter better the Second, third,

income X improvements and and strong. capabilities. the saw fixed and investment in to a of Turning multi-asset remained time INTECH strength performance investment results, performance periods capabilities short-term relative X-year to alternative our X-, continued in equity, We X- to and performance across benchmarks at the overall, look our Slide take

performance means encouraging, Year-to-date INTECH been of risk. have performance still has we weakness longer-term business in at but the

movement notable the to its end the underperforming The was of alternatives. to as modestly strategy of absolute September, which other the The quarter remains of however, high watermark. return in June, has outperformance strategy, end the returned switched at U.K. behind

On on with performance basis. you the more the to right-hand side slide, top see AUM can the a our of and of X- represented XX% very X-, is X-year Morningstar that in quartiles strong, than two relative peers compared

to flows. turning Now company total

outflows $X.X For The highlighted. the the quarter, to of net concern that quarter. lower redemptions, billion growth improvement areas compared was last driven four outflows previously billion by we in were $X.X known of primarily

front with this a far step are us. in pleased and we're While much satisfied results of and work we the remains the right with from it's in improvement direction,

business. few spend where Similar Slide understand help concerns the the quarter, in to of a introduced down we in to remaining we major last results area of the to you headwinds flow minutes seeing breaking the and wanted Last between we're effort better quarter, business. an X area known

major current across of the masking concentration because of this is really great work did cross We the outflows some business. our sections

in Given will final out quarter next the areas time the in this be flow we of trends improving likely the the break results concern, manner.

of key an take weakness given in improvement billion INTECH sales the the let's however, longer-term the pipeline, quarter, a performance and the the of INTECH. the First, remains area look $X.X quarter, a low outflows business net in prior had concern. at investment from is which

the INTECH date. of fourth far $X.X a quarter disappointing which flow concerns Thus outflows, provide Given of on has in and quarter, fourth is nature billion lumpy we these INTECH's predominantly an update institutional result. to the business, wanted to the experienced

second quarter I to announce quarter. the in fully pleased class filling million $XXX told very we us. gap totaled committed we're quarter team, what to during in you, outflows an third be a exceptional believe asset key emerging the markets, gem Last and the to quarter, markets billion the emerging Global that will compared we remained hired for $X.X we've

assets the to as evaluate now quarter, remaining depositions. the We're category allow to in we've will obviously, going new the is pleased strategy risk thus we're far, this This seen us as as at very redemptions said, compete leaves in $XXX billion possible. and risk. of team. of in clients $X.X fourth for this with assets keen in much to The strategy, retain which million at That forward, assets still continue

Outflows million encouraging. flexible compared of to the with in trend result benchmark is second the improved continues Performance outflows $X in billion peers, quarter years which includes the improved fixed XXXX The income, core bond $XXX fund progressed. also as also which in has to and relative plus in the quarter.

equity negative, this outflows European the of $XXX area this improvement were $XXX quarter quarter. second Whilst finally, the continued And represents the compared in million business. million for in to

all one- demand for While European periods. relative our the weak, time improve and performance strategies remains three-year to the investment in and top across are peers, to quartiles two equity continues industry across over the

is parts continued the this area business remind so the business accounts of important the third of I'd its remaining XX% you that AUM. reason upward totally the the The why of is firm's in trend quarter. for this because

slide, expect $X.X in aspire second the this million compared right to much still where that's billion of in bar outflows better our $XXX be. and third quarter results, see below net the second chart quarter, outflows we can in net on to area of this had a the but of the you of As one business

about quarter into set quarter. the into income across spoke continuation the of fixed we the really improvements and of a strategic prior We're reflects income last multi-sector significantly trends most credit, diverse inflows European income. during seeing the investment-grade The strategies, over quarter

ongoing U.S. in and the America. organic fund. across gains share business, the funds in our seeing improvements growth U.S. market number positive and with flows globally We're during of the balanced quarter seen intermediary Europe continued net We've in in a and Latin equity

flows capabilities, to and cautious the number about we While business we're highlighted share the risk I new continue across net term. outlook improved have market across so flow the remain quarter, of four near the earlier, in during we do gaining regions winning and and areas a see

presentation U.S. our is of GAAP standard X of income. statement the Slide

to Moving look Slide summary compare financial results, X for a primarily versus results quarter, expenses. of at third-quarter lower a adjusted last result our favorably as

market third flat gains Average second adjusted negative to FX compared to quarter AUM was in the unchanged offset in remain outflows Total the were and the quarter quarter by quarter. prior the as impact. a compared revenues

$XXX over X% by driven Adjusted lower prior the operating up income million in expenses. the third quarter, of was quarter

operating XX.X% was the a Third-quarter margin ago, prior had higher XX.X% compared when adjusted in to average XX.X% AUM. quarter a year and we

EPS adjusted results, compared $X.XX was third for $X.XX in financial to the the prior quarter the ago. quarter year up Finishing a and diluted $X.XX

slightly the drivers margin. quarter one fees we've net quarter. offset management by the day decreased from Slide On higher the outlined as AUM and fee lower for revenue Management X, prior additional calendar was

the in shift The down to was quarter, margin quarter outflows in driven equity by which fee primarily basis was points, from products. mixed business, XX.X higher for compared the second the

at positive the in compared $X remained quarter. fees million second Performance to $X million

negative million third ago. quarter Regarding from and performance improved $XX second quarter million million a the to of in fees, Fund's the negative U.S. X a $X negative Mutual year

this will outperform fees of the XXXX, positive performance we'd under this in in further improve area in quarter. quarter continuing the in to If benchmarks fourth performance these and we're we see scenario, fees successful fourth

to quarter. expenses prior was on the LTI occurred U.K. Adjusted to down the XX% the security expenses social third vestings operating down that operating $XXX million, Turning on previous adjusted X% quarter. Slide second from in in from largely the which taxes X, due in quarter part, were the was

existing future which to the hasn't further the changed In significantly quarter. detail of the the Appendix, grants, amortization provided we've prior usual on expected compared

previously. the The third-quarter is lower we to quarter-over-quarter, comp expenses Adjusted in marketing which X% the with decreased line XX.X%, primarily was non-comp from revenue operating which seasonal expenses. guidance adjusted communicated ratio

months nine outcome which on guidance XXXX flat the the excluding in the to is applicable. XXXX, With million results still XX non-comp XXXX is legal in books, expenses,

third XX.X%. quarter was Finally, the effective rate for tax firm's recurring the

year, full effective For XX%. be to firm's rate to tax expected is the the still XX%

Lastly, management. Slide at a XX capital look our is

our you enabled to flow the of last excess of generated us returning the sheet XX on over that As buybacks strong approximately months, which to cash and see from our and million dividends can was to has this shareholders balance $XXX XXX% fund period. cash slide, operations the commitment represents in

the paid November XX quarter, and During share on shareholders the we to November. the shareholders as of per to XX $X.XX dividend $XX at million record paid be third to in dividends declared

shares $XX Additionally, quarter the we purchased in million. million X.X for

the fourth we reduced of this This since or completed began the X.X After takes share million completion remaining the the authorization million in total be shares would by total program to accretive shares have August year-to-date shares. program, anticipate We X% million nearly to outstanding we million buying repurchase the XXXX. XXX in our $XX of quarter. $XXX

Looking update February. an full-year planning any occur during a call new the board We'll annual provide with buyback of forward, capital during process will our early authorization in consideration XXXX. earnings in the

that, back to like And operator would the I with to for turn Q&A.

Operator

with take Thank Partners. question you. Evans we'll [Operator from & Simon And our Fitzgerald instructions] first

Simon Fitzgerald

about Roger, you strategies being that the of Thank and inflow you we more fixed elaborate the client a to least in can moment Good of that inflows. terms in I'll been refer of that little you much popular terms in which of there's Could strategies income sort you. XX talked just you're are of you of saying those seeing my others income Thank come bit have Slide two some terms some very taking than for at see equities. through or where morning. demand? that jurisdictions at of sort call. in fixed

Roger Thompson

strengths starting of strengths think, cross-selling of see. franchise, it's one the the to it's Yeah, of Simon, of I we're and one the also the

to which the come globally, and in called that Strategic about team, terms the So to there institutional we're – team right world like last something funds. return developed is guess, team bond our globalizing U.K. in the of see talked the number six as Bond and wins in through that – place, in absolute U.S., I'd is I areas That's starting income the some called the Australia, getting that which product the the London months, in fixed well bond is is income the same That's in what's we've a U.S. in products to XX well. very Kapstream developed selling selling of over right

So it's pretty broad.

multi-asset in talked It's in that continued the the great periods, firm. about combined of and the continues, to decile We've of strength balanced it all-time side, again, performance of well On fund. the selling strength over fund. the is but top It selling multi-asset. which the it's in that's be a future so other we're the It's and driven Europe. fund flows in Asia the about multi-asset, seeing driving moment. balanced U.S. bit a you're things, what's by little certainly are in for the at confident It sells There the the

Simon Fitzgerald

Thank you. Excellent.

media some Second question relates share. the mentioned share. just call to you're seeing were the comments market market some also on in statement and now increases There that in

something think of about market Just of are wanting some that is that in to others. seeing could flows is terms know with little sort data terms versus you you sort anecdotally Or a that in share statistics how unfolding? bit, your that you and share of us of

Roger Thompson

data you've Certainly, we the of that at do. see, – I best what out again, we at you'll look Simfund I monthly. for terms comes And to data, Yes. which the that mean, in is look got think

news consistently one We're it, that again, fantastic when our franchise continue know understand U.S. market those So look the We a is U.S. if look talked we've is should – market good franchise. we market great market. we The It's guess, share. by we've can that. we despite We taking shrinking sales what in equity said equity. be active you numbers numbers. be to not And can, a about, at some growing. are. with But I take strong. And excited is that is at equity share. And and exceptionally we we It of that.

data Simfund actually we're are growth we taking seeing looking are and at. seeing equity. actual U.S. But it's market in you're share, the We –

consistent that's we're in in the ago. back notable Obviously, America. months last that's thing few in area that a a see years consistently. intermediary for other of starting again, starting an Latin positive is – in been been it's – we're to is firm on see one in the of years over flows couple flows and continent strong It's tough think It's I couple not month. fact. think the Europe LatAm. important I a inflow growth had and that, in And to We're but the

Operator

question from to we'll Stanley. Morgan And with our Andrei next on Stadnik move

Andrei Stadnik

okay? me hear Good morning. Can you

Roger Thompson

some Yes. organization, seen [indiscernible] Dai-ichi? than questions. high-level. of Japan I and cross around One sales kind that we you've from And the other combined turnover departures publicly. seems fewer the organization It in to what clicking Hi, of from Andrei, question see wanted question from is what kind better together of ask the ever also two of terms or is PM and can flows

are that combined starting what entity? So move you're getting you from the with you the envisioned really to sense ahead

Dick Weil

Hi, Andrei, it's Dick Weil.

the I what progress its yes, think can accomplish. to we and is nowhere answer believe but will generally we we're and close

So a front Roger frankly, continuing in of we've as called out, some lot his still Roger us. in challenges, there's comments, still we expressed areas some still said which caution. And shorter-term earlier in why of is the work real face there's four

is We're of we're produce improved right talent a making together. So results. sweep itself in well to building progress. is the The the broad we're firm the yes, coming applying culture; and starting time, of lot

the In face we facing side internal a bunch assets not Core And have is, cautious a strengthening continue is some still we it's Plus European – not finished equities Income, are changes some it, equity, record. hey, that face the of external we it's by in is improving, Fixed let's a to but EM environment, challenges. the there. side. The and healthy INTECH That's still positive still challenges. challenged haven’t

potential. track So before there's more we're approached right go us we're still on of through the feel front it, in like but we've to our we substantially and getting

Roger Thompson

in flat quarter. I Right, were specifically flattish, basically Japan, flows yes, the in think, terms of

last fund some look at to new with One. seeing new in see Japan, of over continue about inflows. Dai-Ichi launched Asset the product the we and small asset launched the that's Management that We and continuing business couple that's we talked quarters We that to – – allocation

doing Dai-Ichi And that's supposed exactly incredibly relationship strong. with remains again, do. to it's So what the

in was fewer question departures, The other the and part place, around of obviously. we're good

Dick Weil

you Yes, is good we quite about don't challenge, but take team. a day stability I for course, of feel to and people, – every granted, feel wonderful really like we it have the want have our of We

Andrei Stadnik

Thank you.

Operator

We with next Henning question our CLSA. will Ed take from

Ed Henning

my Hi. Thanks for questions. taking

been today. of are on them headwinds headwind bit And seeing still some Are Just to kind call those about beyond of quarter, on firstly there's headwinds for INTECH you INTECH, core on talk kind funds the last industry play potential continuing that touched for facing. the a performance? a structural you of out as

Dick Weil

so controlled in is front. INTECH market portfolios to this portfolios large-cap difficult are in continues of be of barbelling Dick. tend U.S. well face tough. risk different conditions. equities competition It's the and Hi, on to lot Yeah. face continues a market generalizations institutional trend tremendous to spaces But to INTECH's and and the

start we where long through the mentioned, product be a an process there. either other they now, innovation, things. who risk look index some But to people to again, out they'll held take of strategy and They've of sales the over long they INTECH road continue done the challenges. that the can and lot face so even And believe as that growing, lot right investment a what it's is a in from to terrific doesn't or their believe, to right are to awful be U.S. pipeline trend in that middle. And Roger come and for term, challenging improvement And

the the them continues. has foot, last over bit volatility that put recent the a back So three little on years and

Ed Henning

just growth things last about you talked Okay. you those one, a pillars some touched one initiatives growth got bit you've little strategic touch of Can good some Fixed Today, the Thank talked going with more little you've a products? you. just new multi-asset. And second growth some you and on initiatives. new bit Income of the on some period, on about in and

Dick Weil

Sure.

efforts So both sort progress longer-term we those of on initiatives. in our We internally that and making of out Japan. initiatives our wanted ex of identified both the wanted we're but further to are we that franchise. ETF growth invest And Asia those, to strengthen build in

sales that a have then distribution ex most a and in is and Asia folks to new sales. to we retooled acclimate But it in the new of So brought of talent. talent, firm and Japan, while lot team for a takes drive

we've confident us of sources in that growth region. in forward investments and important to made will people really in available that's that's frankly, we're and move that So some the the one management talent for industry. asset And industry the of the

space. we've it's early more right so on the We And think but be track successful got just in that results. talk to about too to big we're

previously there. Michael lead lot trying a encouraging The interest. that to there need hired lot There's moving there. indices were forward effort, with and lineup to and achieve wins we third part had higher forward, and we're of to seen be signs we multi-asset, to area using we of to Ho if our substantial tends discretion, do enhance mentioned some had alternatives new well also as the basic some we're was to that more aspiration. we We've A to client the doing product fee what higher some tools and going with some push get

So there's substantial we seeing And hope there plenty are will interest progress. do London team to is the bear real seeing in that some fruit. particularly institutional we but

Operator

question JP And Morgan. with Ken from our we'll take Worthington next

Ken Worthington

Hi. performance Good Maybe fees about U.S. first, breakeven. a morning. are

I think that's the XXXX. best result since

to them? back the the are almost the restructure outright this to And either structure might level, the maybe correct or in is there think fees? fees to something eliminate you an feasible with is fulcrum fund boards that Given performance flaws to that breakeven appetite be work

Dick Weil

going of reason their alignment that, duration somebody else's performance, particular investment fee investment Hi, of fan with fee distributors the last a that a the previously the a and sets deal over structure. three-year find of Dick. may in what on on looks the of of I lot and said the And an find returns. in that And largest Ken, coupled because it's trouble generally this fee fee question. troubling. am really hard inappropriate have variability I length the basis. their Thanks with explaining be the are mutual fund a retail is have real the have to is is I horizon because the they of the folks lagging for years trouble three three-year of of lack paying it's time it who the for bit always ongoing based And, terms then analysis, a not to

our so distribution the in business, big structure. fee particularly in And key that this partners love networks don't

if So that. stable, button a press would and you could structure more the we amend to fee do probably something

there's remains hurdles fee out They're complicated fact an expensive a lot SEC the complicated set But investor There's awful change big of very process. and that to approval structure. votes.

transition And cusp the so the structure of of substantial. and pushing in road. disruption the cost of sort we're challenge that fee on of not The our view is and down

to answer world, while structure. willing if a would this in it, and trustees stick your are to a which the this. we in of aware discussion. partner who the live really imminent. And given longer So fee are we it would becomes to talk about thoughts not be in in hurdles, appropriate They that's charge that is of But with frictionless the the question our amend the for a no but going a we're continue in practical to answer world to be we

Ken Worthington

thought million just looks notifications the notifications PM, so redemptions to sales? And track multiple need scratch to then, rebuild on the in new It record then Or last take you does track to you. years Thank you built in XQ. you're you is a million this get think the sort does hit postponed position from – it And $XXX maybe EM, with record I of quarter, be I would that on hit. coming canceled those a like said or here? year Right. it – max think that for Do $XXX of received better or quarter?

Dick Weil

still it mentioned a taking get could, obviously, concentrated and we're because to big Roger, your we to quarter, question them comments, postponed that expect the we could in They're in remaining there's that the you third first, notifications. more Rogers in we client mix as are they high there second come substantially think about cautious what's? There's postponed, risk and one is

Roger Thompson

billion. $X.X

Dick Weil

high-risk $X.X billion, could that and at certainly – also. that

that challenged we So clear – be see through we've the don't gone as market to the trying in short substantially emerging asset remaining transition. term we're communications. and our base in see as We

is sort to back from client your a good record credit Turning – They're, we prior to team, for the a gives new that the strong question. employee. question a with quickly yet. on question. ask take obviously, We they their much take question to about track answer. a their a willing and base institutional basis, How it's to something team It's of view how well-known sure track hard that that of record ourselves an don't over know are consistent time a

We play We're very of we're precise optimistic can't know how to a came they waiting continuity well but have lot going And they I they've therefore, Boston case connecting team that it, because gone of the and and the short enough a over, substantial business in part adopt what the makes on that there'll in of that period. to integrating. of how great thrilled that to that's how time. sort the yet But of analysts shrinks evidence strong. including don't medium which will that understanding it start of going the such And the great professionals. them. been fast a – amazing way basis. and thing kind out be adoption they The firm, say We're know in based do. They're the contributing They're far term, team. is process to on only clients period they've read made their very well confident an broader have when is of people, are They're a here we their give in of you really a integrating and good a already to thing they're research forward. to

Operator

of question from Bank Mike Merrill Lynch. next Carrier our take with America we'll And

Mike Carrier

taking for thanks the question. Great,

in industry the But that's realize going improvement the some forward? drive sales and side on distribution good performance how working like is you challenges. seeing seems lower. performance, improved give with a the even muted the you're to on us with side, stuff to redemption still can color it But teams heading on the you're sales bit First, the of try some

Dick Weil

This Yeah. is Dick, Sure. again.

existing foremost, our that the on distribution team, and optimistic doing the get the Global way. a for facing and First addition excited marketing in Cain and recently resources she distribution that and is news a review bang team. we're against and new And is opportunities that the And biggest that our the forward. the more And distribution the we going of marketing terrific trying Head right She's off be to to Distribution. making for talent to she sure Suzanne is hired we're assets good job we'll providing. in leadership of we're

The that second point performance. I investment would flows make is lag generally

redemption thing that a the So the see first And improvement think of second period performance, different products good see we're talking have for you is you And on have we probably about. you investment continues is time, obviously, of lot then long when I and up sales. pick slowdown. thing the that a you the

general. So sort we path sort the that being But inaccurately we're see. of of

with that tough put the continue really U.S., in challenges Brexit it's really we're in are in on is, we we areas right of And a we said And market to The together one that That think U.K. make in equities. tough. in are But for that that that still business challenged. with market we environment. so again, the our can good going gaining we our chaos. sales. progress track. are some So product do That's and the indicator the more That's and and industry amount Europe drive see a huge the America. gaining through there performance obviously, of you strong are parts flows made share to of European intermediary Latin positive us that lead momentum

Mike Carrier

meaning, performance with average have is a muted any maybe just helpful. that an follow-up, over performance as then, you maybe guess, time? the idea potential That's see on general right. the more what max provide, update you And can the is of what trends? improving, just fees, or Roger, actually you can All a the versus I potential year the Just like like recent

Roger Thompson

Yeah. Mutual a better obviously, And that it's U.S. there's becoming pieces. a we number. – Funds. were. there Well, see we're, much we'd as three than like We've place talked you say, And to about positive the in

We have ex Mutual $XX performance with about billion the billion capabilities. – fee $XX Funds U.S.

very things. that's have So same. stayed fees, performance – $XX other about some We've things about billion but and shrunk, grown has the some We've it's broad.

a it's a got a mentioned, fees. Dick of So there's performance portfolio assets we've bit on things, a – but bit of risk generalizing with

two They the years QX the and year. about before. are biggest are – QX spread through those biggest two quarters for as we've talked

and much QX. in expect expected didn't we have you So shouldn't

QX. accounts fees those institutional in them. are with more three-year a of performance should You on three-year Most expect bit

the it's So But we've done. in count you got months bank. until don't XX anything

get firms the We to still in levels 'XX. about some we But had is there'll need which not The build we're some the performance performance QX. performance So fees got the – to continue have – to capability need that talking combined that performance in be fees It's fees in there. in on the QX. them. XXXX, there'll areas be

Mike Carrier

mentioned return? you absolute U.K. And

Roger Thompson

it performance bit its got a still I XX generate go watermark, as which sizable little And I very to fund, has quarterly long-term tougher U.K. generated performance swing can months, it significant Yeah. talked hopefully the guess, last before It's so just clients slightly strong and which absolute a but past. in fees in the benchmark. a had been funds quarterly. track, back behind factor starts months. the fees about, work it's again, performance will. It's that for to its above fees It's is you the other pays return, XX last that high more

Operator

And with we'll from take Credit Siegenthaler next Craig our Ag. question Suisse

Craig Siegenthaler

demand Thank Brexit sidelines on European just and operations. change investor on versus you, for your risky resolution? But given macro wanted to your pent-up view also on is hard your with soft actually And the in a does the of what scenario cash how the assets Brexit view? start large Europe

Dick Weil

a to is led This Hi. Brexit our Dick. it then across over and firm. preparations I'll the Roger. hand Roger has start

exactly the he's So right address guy to this.

just me assets. regarding Let say un-invested the

the system. – getting think happening out a sort that driving of getting Insurance don't of would products is middle. banks the themselves products with We come rates, I are really to the are those yet. are middle. in banking There see of companies lot negative Europe, in Ideally, us. the assets

probably And of some cash of asset is of coming management a active stands industry. un-invested way the in the fear into Brexit big that generating process wall forward the the

major cash not a the Europe, money benefits it's tons go. have that we're et which But post bank not really deposits of over So a yet sort possibility. strategically rates, of that's it future. if we're we cetera, traditional it this hopefully as calms we're optimistic job, going opportunity to business. of that in reasons and that do sort of will a from represent Brexit real there's frankly, one And U.K. for the to drive with well. the find And of of other in once lot time, down, whole of to will the us. will that noise that in out optimistic somewhere out in election, the in just see our do Europe un-invested hanging there And still But the we reaping a particularly markets lot about negative opportunities great

Roger Thompson

branches built Luxembourg to technically, our a we hard soft, hard products were or are We've have We've done Brexit. structure. company, OEICs be move five. got and Craig, SICAV now. XX for some Europeans work some our enhanced We've the in in versus – people to We branches to used And weren't some able in potentially not our rather that company. U.K. be launched buying of the We've might the the range Luxembourg to. where funds than technically,

Brexit business. So technically proved our Yes. we've

improved. less, So macro slightly side, about much outflows in say, U.K. the home slightly technical an issue the flows you side. the The That's more improved. but nothing isn't the write it's have as to are

but job, doing in. pretty The are to wait got time a U.K. market great market doing it's we've out business a to So tough yet. be there. Teams ugly is a

Craig Siegenthaler

to just would really have the Thanks, Roger. Janus out the it after significant take And merger? you lever what on more business stance post proactive a you cost expenses, on of available expenses? a here And the reducing this take do took for follow-up

Roger Thompson

that got grow this. And most the And we But do what invested again, in But thing And Well, pretty business. that. combination think to it I we've to hope trying grow is we've with this are this together business. you've to important this consistent lever been we always available. continue to put we do? I

as that There natural in do possible. and try as are business. levers efficiently will the We

take look in Our so to going level is the about variable business. to to the things we're business. things just will efficiencies going down is – company at continue up we and total for comp earnings. are that we're There costs And flex out. invest There's fully with formulaic, the in also

business we this can and we be that's – not – I are grow grow. that case, you'd expense a business. expect yes, we different And this business believe grow So we're because the base. we the run Should think running to running to

Operator

question from Blostein Sachs. Goldman Alex take our final with And we'll

Ryan Bailey

This we quarter. the another morning. fee a rate. Ryan the like wondering it rate, looks basis actually declined this moment is fee management Bailey, spend on specifically if It Good on X.X was I points Alex. for could

puts of you you that rate? that the risk pressure near-term So as takes of us the give of think fee key of for would ultimately of kind and highlighted, guidance of sort what in sort you areas some through can result the

Roger Thompson

Ryan, I and us product, fee little don't is some a what probably as see do protects changed pressure that high-quality have think we There the in from has same pressure said in bit business. We more others, areas. but Hi, sure. the we've fee Yeah, anything consistently.

flow the So mix. impact is biggest

So and the – in average you've got move an rate.

So both QX and you of to that's we terms sort lost. in look – assets at the QX in of what got happened

in some emerging lost INTECH. we've higher of fee product product So also we've fee alts equity in the equity, in some lost some capabilities, market lower but

see news higher that's, continued will the at the the mix obviously, We good told for markets, see that's Going at that's continue risk fee in on emerging I lower growth you with end. of end. in got INTECH, the we depend forward, that Should product, We've guess, rate. intermediary, the we answer. risk is to it

how we a is back in around of that but continue to which change fundamental done that sees down, the expect business. and drift to no mix because it's business question do we're decade, prior it we that running to that seeing run driven be pressure But by we're fee the rates is need So last or we our and fee a see. industry they've to fundamental will with not that see what business comes there in Craig's for change expectation the the will expenses, be efficient

Ryan Bailey

the or just you and on one in Do INTECH, us on mind it a an maybe EM concentration. concentration really terms of update some gave Got reminder INTECH clients? on at more helpful color us giving key you

Roger Thompson

we It bit XXXX, comes is will the – a with And you and they've it will in, could And too we predict. we number why performance. very some the at has are that's performance talked three the mean, assets. there patient. asset we been and accounts that much working There opportunities. much XXXX, of but are concentrations. is of at have INTECH, if excellent through There pretty clients, notice its and There the volatility. difficult explaining are clients. of that notice those I if at good we business. if is been – on of We've where the Yeah. say sit little concentrated lose challenging is it multibillion years something you that's with a clients, before, pleasingly, pipeline. team That but large we better, got to dollar Running in very with a business. risk side, it, be those with therefore, is But most some our relationships and that moment

Dick Weil

Dick. up of – XX% is the strategies think at It's for largest I This make its AUM. INTECH That's Yes. five right.

and big substantial see But you that not good could the smart be high you've revenue risk asked. concentration a tend to it's a those truth degree is question. of therefore, question highest There's it's So pieces. a pieces move. corresponding The

Operator

participation. does and your conclude We And conference. ladies gentlemen, that appreciate today's

disconnect. now may You

Janus Henderson (JHG) 3 Nov 192019 Q3 Earnings call transcript