JHG - Earnings call transcript Q3 2020 | 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 2020 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 you. Thank Henderson. now is Janus Chief pleasure Executive introduce to Weil, it Dick And my Officer, Mr. begin conference. may you Weil, your

Richard Weil

to everyone, XXXX call Welcome, third the earnings for quarter Janus Henderson.

CFO, As joined by usual, I'm Roger our Thompson.

hope Let continue of distance alongside me call start healthy. to by saying safe our be Roger. physically your that I family this I London your back a really taking pleased all be at friends, safe and am you, to in office,

we've calls, on of reporting business like as a the take at previous cycle. our to quarterly long-term odds with view somewhat said As we'd

what some and the do use the say and So, strategy. of detail. from then to we'll quarter hand to a the is in just calls, this, business brief Roger, more line who extent, update the to my over deeper the of today's I'll a quarterly bit and in through summary to calls quarter we've through presentation, run fourth third that In results, and done first a second the perspective. results with And on I'll on at start quarter give then go will we'll

remarks, prepared questions. we'll our take Following your

X. Slide So, turning to

AUM results Our strong. were X%. quarter third increased

ago. quarter better Adjusted and $X.XX prior compared to performance investment Our was was solid. of long-term to a year both EPS

is the which both in of remain you return like the sitting to capital broader the story, shareholders as continue about I through just also will financial But balance tell context in we quarter, and and strong details Our what very dividends to Roger you our cash the how and depth. about our I'd repurchases. generation really strategy. take during is try do think sheet flow quarter by more to

It's strategy, which of strategy, profitability. organic progress our If turn designed strong is to foundation, growth resilient to on to Excellence. Slide X. and making you deliver Simple a great and delivering is our building We're reminder a which increase

achieving to Our Excellence those path on to each referenced just to turn and five page Simple let the two, five planks standard planks. quickly of one on me

First, producing outcomes. dependable investment

long-term Our performance remains investment solid.

Some extremely other change diversity solid. But of of beginning our overall, to performance well, took forward. in done resilience And part year. in the to in long-term investment we've strategies the have and had this our drive remains continue of strategies number a COVID-related the the hit markets a and

And quarter-to-quarter. seeing momentum time. hard I'm over the line business, our execution. in those of second a flow me, institutional draw to see quarter. in sort extrapolation number areas in excel is it's and in seeing good But this that in improvement and significant client The around, we with in plank distribution a net seen moving numbers improvement to We've definitely can flows We particularly experience. of to I'm an have lumpy from

are to path growth. definitely excelling achieve organic client I our us of getting so we to experience, on which And distribution think puts a in objective and closer

the industry and retail our the example, APAC fixed Just at during and as grown EMEA U.S. flows quarter. have rate an income in across positive the retail U.S., were double

are in high-growth team. a global-focused products, year-to-date in Cain, They list and products been we're with strong pleased of on those program and We're focusing her the Distribution, this Another products. potential which Global example capitalizing is it's has growth of put Head our on products with working Suzanne and particular global-focused well.

against we improvements way business, some look be completed It's on that a approach. not we'd plank also we and focusing model hard our served In balance simplify thoughtful careful as really efficiency. attention the is Board the turn We major important an drive only that the took doing during steps we've project. been cost out. operational the and that making We number and quarter our of generational expenses. and lift business our good move capacity a quarter, of DAU and back-office management TPAs. a need current progress business investment up quarter to but can gotten get to to in excellent steps that, We're effectively forward also continued from that to also third-party taking help and free we've our some growth consultants. team, are a of so third Simple us the savings focus you in infrastructure. operate at other consolidated projects taking that completed increasing forward. the attention our The to appropriate our us that told levels Excellence. We required We last We well We're systems as strategy had

important we're control the our environment. of is strengthened further so hires, And we're We've to steps that continuing on our making how some strategy us. also taking we're environment strengthen to to give through. senior world, this we is I detail with an EMEA quarter updating team fourth work areas which And area growth Head I'm We more clients be this us, this to be And around control and the as of for some work area. combined of with number progress of about and with The tangible The you to plank forward plank on areas upcoming relationships the pleased pursuing. for develop ideas the we'll And in our for give the really in able progress guidance where progresses. doing have with fifth savings further is to in identified look in that year. the proactive strength are we we fourth initiatives. so our a expect the position risk Compliance, moving. regulators expense when I you you focusing see we progress. new We're very especially some of other

AAA a committed we're a growth VLNA to Outside CLO Example, we a ETF Last securities U.S. launched the this in JAAA really we in ETFs. our our in the in the month, launch called to launched ETFs, growth It ETF in We've profitable last X,XXX was week, years. we of earlier seen JMBS Here, asset-backed also out U.S. U.K. fund. support continue and largest ETFs XX good XXth the of delivering momentum way. in

develop in think doing I work targeted initiatives. growth good to continuing new we're

to to our our of Before employees our our turning reiterate delivering key strategy all it of stakeholders, and to our benefits Roger, let the commitment me clients, shareholders.

is forward We on are friend, expensive are this with much to know in really strategy. and as fast working driving We not deliver this and as possible. as our can always regard we that as we time urgency

a We've also of say INTECH improvement. better had and space. portfolios, about our bit of barbelling facing strategies. of a INTECH. in before of we facing for had while, number word a represents find their flow better of periods They've with this results. this me recent a middle its battle a how Let driven just are are which to primarily that in can history challenges a INTECH real because quarter results. leave talked the the also They And They some fighting challenge and about investment been clients underperformance challenge couple our investment business, in their

get forward as heal account as part in take and in going it's extrapolate hard the it's INTECH to size it's to the time so business business, that And But challenges to quarter business. But of path of significant in, we fully to about we deal to part that risk institutional our And of very predict the in business, it's the they INTECH to there's difficult to from on work our say we step face the go remaining large And and this does the of exactly health. quarter-to-quarter. back forward. good. as return health a quarter-to-quarter our nature INTECH that's the still some we fair represent lumpy business think and that know to

continue away drive rest to this we clear and term. I organic achieving bit to can Looking optimistic INTECH, made on are on growth, a am And perhaps I business, quarter. when a think the we've business the organization the that to organic to profitability see of path I path long with at really for the continue that the the steps driving I we from right greater toward building the quickly. of rest our forward path more believe continuing and look growth the can and

with results. over take to let you it me Roger So turn to through quarter's the that,

Roger Thompson

solid, X assets respective XX% with September. result a and joining us. of noted. encouraged mentioned. performance as Dick, you, of in we X-, The is performance. equity Dick everyone, Thank XX% for basis Investment equity the by on X-year previously remained Starting of our our from with beating Slide investment improvement and as performance and X-year firmwide on year benchmarks of performance, their just which INTECH's X- thanks, primarily its segments We're business, U.S. one in XXth XX%, capability

performance and the two a quartiles the However, concern. a X-year AUM XX% XX% X- XX%, top longer peers hence is to and will represented remains compared Morningstar turn and take with in Relative strong, on the performance X-, longer-term of basis. to

total to Now turning company flows.

in quarter outflows they're and net pipeline here. time by and business, the and quarter, billion retail We that compared reflects seasonally institutional remain diverse to were which from quarter. billion show we as best institutional across given last the $XX quarterly the series outlook, the in sales we the the been $X.X partially redemptions channel flow offset see number the sales lower quarter, billion encouraged primarily lower the strategies they've For by in the our third regions. first intermediary gross were typically $X.X The during lower

we SMID as to but still do. business U.S. positive risk XXXX, business fixed a we of we're that we through XX outflows majority the a as that know on We're we Additionally, with momentum optimistic work capabilities changes there's trends the due the made through the flows broader the our and identified while cap in were pleased our to management in much in investment short-term which improving result that and intermediary income as the last we're likely last months. of redemptions underperformance, saw progress call. multi-asset continued teams The mid over the quarter's and capabilities, flow

longer turn, we're As positive in to flows Dick to which INTECH, excluding likely returning about term. organic the near said, to just is optimistic take

the to several in X, elevated million. quarter. Slide were $XXX But the outflows were to of Total INTECH alternative which and net $X.X $X.X quarter. statement institutional, in was our compared and of to compared quarter better Slide with million. QX of in due for growing We're $X flow the globe. retail. strategy Flows fixed and of to as $XXX we've fluctuate short-term In seeing quarter-to-quarter. includes standard inflows outflows the and result underperformance. into mandate billion improving due prior Moving across from and presentation funding outflows shows Equity negative be in the lower billion positive flows primarily flows mostly capturing the balanced $XXX said capability. is $XXX strategies improved $X.X will into outflows Australia. inflows share positive also previously, is market this strategies short-term billion the performance flows certain to by were primarily but the quarter were million, as retail, redemptions to income. results The quarter in driven by lumpy breakdown million we're around from the pleased a third billion the X multi-asset INTECH's the U.S. quarter quarterly likely income in INTECH U.S. in The GAAP second positive outflows from result

expenses. a from in performance fees. a principally quarter on X, increased financial prior quarter X% the up operating set green in partially up this by quarter in third average the the operating AUM, income revenues quarter, second AUM. seasonally page. by primarily offset Total there's quarter, higher compared the million XX% Moving to higher $XXX summary Adjusted Adjusted was the higher adjusted a Slide third lower to strong partially XX% offset of quarter to of which revenue, compared results of prior were results, due average shows over lot to by driven increase

points quarter financial results, XX.X% quarter quarter XX% ago. finishing the EPS $X.XX but up to compared when there and performance for were final third last year. million was same up assets $X.X will quarter a ago. flows. adjusted X.X eligible QX points, the the to accounts of year. performance adjusted but significantly in was past quarter and increase from The margin third million And for the depend the from fee year, in $X biggest mix were the for basis year quality million the compared margin Third prior over our quarterly from from the Performance the drivers the XX.X quarter XX.X We of margin diluted expect to XX% the QX XX.X $XX.X outlined more the Higher and change in fees, currently basis quarter. for total XX we've the and a ago. months up a for basis be year are the Net in prior prior On fees $X.XX X, reflects quarter the up quarter on operating basis resilient year adjusted Slide remains ongoing focus on last $X.XX for revenue versus fees points quarter points driver average obviously ahead revenue. was in second of of in shift and that up management the the

For fees, negative the $X third quarter performance mutual was million. fund a

that Adjusted social on profit-based expenses X% staff of in down third quarter, was the usual operating XX. costs, variable a quarter. of was to $XXX expenses quarter we've compared detail taxes fixed in the adjustments vestings from quarter. operating includes occurred the LTI the and incentive employee in were quarters the both the Adjusted Adjusted on amortization to the Slide U.K. grants. X% In on increase appendix, the which prior compared from higher million, and compensation. which up was prior to compensation, the predominantly from in the mark-to-market Turning impact quarter second expected the provided XX% security existing prior

prior comp-to-revenue noncomp XX% mid-XXs The fees. quarter primarily XX.X%, increase guidance. ratio compared quarter. third up line Adjusted and was professional the in related to expenses with The were adjusted operating FX is our to marketing,

third XXth is during our noncomp be down the digits tax The XX%. state received the by impacted were Janus lastly, look low-single a portion the recurring September, of our we and For U.S. was million third below rate the was our compared which XX.X%, million. the Henderson's capital quarter rate at And quarter of And of a to refund effective anticipate year, of XXXX. to was Cash expenses lower cash statutory guidance XX for equivalents to in finally, the XX% quarter. management. $XXX Slide as $XXX rate

the about you maturity. the cash As as have aside meet a on reminder, should we to think working are what business the amount of sheet the conservative requirements, buffer a to comfortable set the capital cash and regulatory due management and Board operating balance debt XXXX with

flow previously, said generation from shareholders. to remain we As we our excess to committed future cash returning

as quarter, quarter, dividend today of third record paid million and share total shareholders purchased XXrd And the $XX in of the we of the a During started program of X.X of million we the $XX been has November per dividends QX in paid in accretive. to $X.XX And program our million. declared our approximately XXXX, stock November. to shares for shareholders buyback on the a be buyback of since X% to have Xth we

I'd like it over Now Q&A. for turn comments Dick before to we few a begin to back

Richard Weil

you, Roger. Thank

China's room, firm. briefly in operator for Before to the questions, I'd the recent the to elephant address our in handing like over investment

suggestions of will investment shares. views As Look, value our you holding them as all take specific shareholders. made us, and a good ideas China our has seriously. with approximately has and we input we If consider part thinking our broader know, of significant to China that X.X% share certainly from or of

driving rumors shareholder really committed on to we most can't deeply public creation. speculation. value companies, market are or Like comment We

shareholders. will Our Board and interest team and management the in of act best Henderson all responsibly will act Janus our

Our Henderson and plans of five on delivering our making to the can remains Excellence be priority and believe but Simple Excellence, right the forward. we excellence on, path strategy, toward planks Janus Achieving and unlocking Simple we're focus, growth path remain the though, it's our fully deliver We're moving from that takes which is against time, growth. progress the merger. we're and centered the that and synergies right frustrating,

turn Q&A, questions your appreciate that much understanding. really more isn't please over to operator We as the situation. me to the questions. say your can directed there quarterly keep As on trying we about let results your With that, we it turn this for

Operator

question you. Instructions] from JPMorgan. with we'll Ken Thank take And our first [Operator Worthington

Ken Worthington

my taking for you you morning. question. Thank good your Thank prepared Hi, for remarks.

scale merged with and to enhanced if over think in that I you the your that time next might the few be at the compete. dramatically the years or merger indicated by consolidation you position you Henderson, the same you industry. remains would position Henderson. looked size be the a at Janus for When today had But with not

think growth? as you today, the next company have again about Janus position we to pursuing compete size the in Or next your does over decade? of pace the do So at decade asset current management better scale effectively Janus' from benefit business global for and the to the size you acquisitions think

Richard Weil

in Hi, to question. your you with broader scale, Ken. right? key it Thanks it few breadth in Dick clients. helps economies it a things, here. for build probably helps helps itself by helps your a of brand and It ideas, your your of helps invest to infrastructure, ability ability a ability capture to Size and invest the also

clients alpha, consolidations doesn't size. with And inorganic very penalize typically accumulating are So, with But a transactions through It doesn't excellence. size. there's some there frankly, of involves getting some huge happen help size typically and disruptions, really or help good things challenges that which heavily. amount it

priorities I are think our clear. So,

for have. we priority deliver that excellence is clients the highest to Our existing

a and excellence is have platform the the organically. probably excellence may the the things, more bigger problem. be two a just well-established disruption. delivering qualitatively key could But priority add there will drive enhance be if is through way And fit that the offsets to is in growth those things inorganic second we than and that business that scale well to that got excellence. Size to the without our you've Our

level that now, that get some excellence. challenges itself organic right future frankly We'll take we're a is that is space more our delivering on So, And highest the that is keep more to acquirer is excellence, think pursuing growth. drive in on to and firm appropriate trying established to But first focus of ready of has priority. I consolidation. really better the our to

we If think pressured near-term good. consolidate margin a the this XX%, that's about how you we are future, to pretty in quarter have of

We're economies on talking I on that a potential think Simple coming priorities that. odds ear ideas. along the offset interested brings, that something in we're with strategy, delivering scale to great correct, always that that's But organic something So find Excellence special listening growth. to fit, something would we'd don't such I And at it often. like out focused doesn't of to And disruption people and missing getting very if about be certainly the than opportunities. on think moment. our the very happen always have like said, And more that we the of desperately are open an we existing that

Ken Worthington

comments Your much. very Thank very are helpful. you

Operator

next from question take We'll from Pittaway Nigel our Citi.

Nigel Pittaway

you Thank much. very Great.

of the sort hope will into be to what equity have is situation? improvement it think Just going to organic fixed you the the Where to going get do come that? greatest that all, biggest to Is you're a trying push you in outflows mean, obviously, growth to of be sort I do diminishing? first that income? the in, growth Is going of growth sort you stronger with driver flows be of of it

Richard Weil

that Thanks again. Hi. Dick for It's question.

us, it's it to complicated think we're a something comes like -- story I with that. when

it's environment has We of Denver at to been strong have pithy of taken this so parts so backdrops, simple franchise market your our particularly they're question. which extremely seen year, best challenges in different in against this heart the hard operating and you traditionally world, give many mid-cap answer investing, face very products and a many of We've a directions the moving different to really the some equity right through small challenge. investing our to has market

On our European strategies opposite all the during other taken really return have income, and outperformance some of period. hand, tack absolute demonstrated investing, fixed substantial have the the

at excellent in than delivers everything And the different to be a people so to you the the have some excellent And in bit with with it's resilient and time the what moving a I then those that the across if if to trying we're balance. time market going periods different infrastructure experience, better client strong all really accomplish. I But And parts a right that's you market internally you'll service, with client win with think story right doing products those others with wrap externally, of information And is environments. to complex the I be of cycle. think right that through hand. opportunity we're excellent, think you're things

there'll can business on environment. of yet. be I not we the doing. parts we're hopefully, And to good stuff with through we're that, But our so think just delivering that than all offset that quite path there we're And every challenges more the in go consistently right will market

Roger Thompson

I Dick couple Nigel. Roger. a income. If has It's mentioned fixed of Hi, specifics. add could

you can totally years is place strong we're in performance different than ago. income a growing, fixed the the board. across -- And income It's few fixed market market see where in is was are share. a We very a it taking

that new would ago, -- franchise growth the that against and fund we the largest mentioned really last fast, the expect we flows player a largest outsized around the The the seeing we've a in XXth interesting come in earlier, equity, growth and institutional that shown ETF pipeline We're number in things launch hope but JMBS, growing as we around growth the over that's equity, VNLA Dick in in of launched In future. of the and world. weeks is for market world. there's there. outsized there funded continued decade. JAAA And to U.S. things our be are market that the space. QX, in real products, in and well Nothing couple there So can and ETF a really also

pretty excited we're what So, well. as that we do space can in about

there we're as There couple, in be that of but where areas and as investment they're are said, are business seeing a which So a -- diversified us, have challenges there will as a short plenty growth. Dick are teams. there term, fantastic

Nigel Pittaway

Thank you the And Okay. to maybe are the of as Is you reinvested? how on be have that think And follow-up. going deferred mean, investment balance sort overall cost obviously for off going on be sort seem actual you're cost generate savings efficiency that further mentioned that. just savings. the of detail you the -- you need about then sort Obviously, to with program most currently? by a I quarter. balance there to relatively are Or to feeling impact of base? do some you meaningful will that of the

Roger Thompson

time through given said the don't obviously, right COVID we last the the And four time to years nothing's business, be in it. has at opportunity three, is it as there, I a looking different was And look at our things how we do anything merger. Nigel, think with on changed way. an to us call, Yes, to

we're through work. done piece of a working detailed we've So,

we've As the this to track. important really not business, right we to that are momentum right on Dick it's said, the because disturb this and got do

do normally we're QX. -- as around through there's guidance give So you working We'll we that. updated

our we've drop are invest will line, We been but to will business, investing our that efficiencies in in continue there are yes. business, to the investing, we bottom

Nigel Pittaway

you. thank Okay,

Operator

we'll from next take Carrig from Macquarie. And question Brendan our

Brendan Carrig

Hi.

clarification Just alluding isn't that troubles necessarily assume normalization that in requested. a Is potential reason do given the first question performance to redemptions a business INTECH. you're the get But flows those that into outflows made me. outflows more likely to it's the you of over just back or it's that probably quarter, it Dick, the just of comments record? a that pipeline more there's the track just have on a sort for around you to fair the been

Richard Weil

a that's think fair I to say. Yes, thing

Brendan Carrig

then Okay. buyback. had, I just And on the question second the

capacity that left, the obviously, the quarter. of left in a So year get to there's bit the million? of that amount quarter? be the through as could capacity capacity Is done that get Or left in fair ends, possible -- there some it might was passes entire that we $XXX expect to

Roger Thompson

authorized continue million structured Yes, Roger. that $XXX we've -- likely $XXX market well, program like. looking April with I the next before Board that The year. volumes Brendan, through had the We'll same through buyback the and million the it's think we're at

doing a I do So, to see us see But basis. you -- what you quarter. Australia, we'll expect wouldn't in can least -- and in one can at it we're on daily

Brendan Carrig

Okay, thank you.

Operator

And we'll question take CLSA. from our next from Henning Ed

Ed Henning

you question. taking Thank for my

concern coming me. the as last as just we strong the were? start the two from that sales, they this through for sales Just on you Can at if equities and Slide four a look been quarters aren't you on gross XX, they've trending down. Is

Roger Thompson

institutional yes, funded was but that, pieces two on is there I there's There about. pipeline QX, talked that partly, what equities that is is one in institutional, nothing to Ed. I there two to institutional. are part just referred And of it to pieces of that big

think a QX timing. were short-term side, in last the with And of just in I year. the intermediary more it's Two, given strategy. little that's So, where on the that in U.S., U.S. underperformance we bit we part line are slower

concerning on Europe. in and certainly, institutional very not powerful turning not I the franchise mentioned, Dick -- in corner, a been think what's the as we're not side So, concerning

I'm team the which a us great performance strong, very great sure. seen and a a That poor said, has engine. last is as capability down back equity doing U.S. months, six powerful will work, for I come that's they'll little slow Our over bit But there.

Ed Henning

and get ETFs. and that's and we medium margin margin Can Alright. FX And just will you on touch at a on both you into talked as flows push shift more term, forward? you mix into about more your been how a if mix the second just helping your near-term going look the that question, shift

Roger Thompson

Yes.

as losing, and in mentioned I been winning lower been Ed. assets. we've We've the fee fair, of think higher that's more been fee we've some have very before, assets

very a church pipeline the got and have that. across of product, We is broad

pressure. is, we've So not fee said, immune there we're always to

and So I you sets should The little X.X expect win our last excellent But out, to business shouldn't products, But income expect time, if and see probably possibly need see fixed yes, run flatten of an mandates competition. of and at forever. obviously year, they're the think, why come basis margin look to our that points it's to in over down improve margin. over some us significant we buy-and-hold fee margin fee. that the a those of fact enhanced some efficient, some type improve that's from to efficiencies time, bit, you we to that a maintain lower we'd effective, improved for over fee equity, of further significant amount the apart

Ed Henning

thanks. Okay,

Operator

We'll take Morgan from question with next Stadnik Stanley. Andrei our

Andrei Stadnik

I Good morning, just to two wanted afternoon. or good ask questions.

it XX% on helping Firstly, through? that margin, as the quarter, cost early is out transformation conditions the to the market operating well? improved better some in wins of on the is coming that Or

Roger Thompson

market relatively performance I we quarter, in less got areas COVID-type T&E. guess quarter. got you'd We're very QX. as performance in had in from QX low fee still this a than light you've find just got you've that's We've it improved. What light a some Yes. fees is spending,

but QX Our where was still from up marketing ago. year it is below a

I We're mix guess we're isn't I this efficient real a to we yes, that is sorry us business. it's But doing want no, weren't not something -- and running -- it's what doing differentiate anyway. an So, not on -- of things.

constantly looking running an at We efficient are business.

be where through things fundamentally we at for But we're we will there the the quarter, guess, do how right. that come is I efficiency. things this a but XX% always is differently, look that's But there driving yes, yes, are, looking margin there right and things so are doing So, have quarter.

Andrei Stadnik

second outside harder the and Japan it with sales need institutional Or like in Japanese popular push slowed wanted or would the to that's you And there product would you. progress Thank the And tailored take ask to question, your progress in market? seems partners think more be Japan. to think do needs about it I recently. you Japanese what progress? more accelerate Do on the Because mandates has the distribution? to

Richard Weil

Yes, for Yes, is Thanks this you. Dick. agree I that. Hi. with

things had slowed. to need because I think slowed on good that deeper There's dig on still observation growth we're reenergize bit. it's it's But we think had I more we how earlier and Japan business a and fair there. in we and more a it to happening say pursuing some momentum

answer we I to going have add that very that They're better, Roger, asking it's Japan. space. We're don't do that? an have reenergize informed base. client you to I And and pushing easy we're do one. don't focused stuff what of are. any well It's reinvigorate and do in it. it. for of magic to and need But very a about we to questions some and So, the more ourselves keep business, We're simple you the on competitive on on sophisticated need in know, not to do we aware on

Roger Thompson

Yes.

single in I go. think things haven't which last describe nickels I relevant. of things, we I just that as there's $X of think, There's a in more flow valuable. it over those a money blockbuster the quite of classic always is time What and sort talked more of more of at sort even think things, river few I CFO's friend billion they're that's the the product. that in, quarters about couple is probably possibly are a we've are couple over launch, had a that because comes And

the money a have last every we of a every between raising at adaptive around bit end we Life launched billion $X They're strategy product day, those. Frontier of little year the now Japan been two month. for two of ago talked so 'XX, about. for which a allocation Dai-ichi we Those year, in the we launched launched So, And Dai-ichi summer our in or Life.

So, through like are great that coming to that don't out. stand they're but see -- on things regular basis, they not

there's TAL, in positives which other think growth the last so. is of the And the business has with remains obviously So positive Dai-ichi or from I the some which there. very over XX piece, happened months Australia

there. down growth real some So,

Andrei Stadnik

you. Thank

Operator

question Patrick Davitt We'll our Research. with next from Autonomous take

Patrick Davitt

risks Hi, of good a at morning. ago, you on of concentrations my questions. the taking a appreciate remind kind think us or you few mentioned of the remind those kind I kind INTECH. Could the your year? plurality for the that? event making the of are there? us assets Thanks XQ quarters of And spread seasonality also candor and handful a more of of a decisions throughout of I up

Roger Thompson

aren't clients course year. the mandates I don't the looking think decisions over -- yes, the are necessarily at of

the $X largest there. multibillion-dollar don't of mandate, up think their of almost any INTECH real should several So but any mandates. mandates seasonality there's I existing And XX% with a won in we there is those make And INTECH of we substantial -- an But you're we billion are five yes, right, institutional the book. quarter, strategies some should business. have business this

concentration So is there. yes, a there

Patrick Davitt

Great. And quick a --. then as follow

Roger Thompson

that Patrick? Does help,

Patrick Davitt

the It has that reopen? of U.K. know can press. very don't what of some any pipeline And I you there view the kind Yes. of or then give real redemption to if idea Thank strategy an been does, us estate when getting helpful. might is you.

Roger Thompson

in is it. moment, cautious therefore, market. next about first liquidity is going No. We've the quartile and that, withdrawn strong. We're The very little, of it released, think, in and that, are the right are the few sure clauses there, year. have is want need fund quarter we that and it. to being performance unlikely that mix liquidity its across very uncertainty -- industry asset are were that opening there does at The make the And reopen said I transactions outflows. that in that is sure raised. there is we been how uncertainty make to on top built what What material pretty in But is clauses there in the to of we amount sorry, building the despite material we fund the its until there seeing still

taking selling So, is properties time.

that's going there. what's on So

yes, there is likely -- next The outflows year, QX self-closed. because so billion. that's $X.X So, is will still that or the at year, it moment, about QX fund be reopens in some when next

Patrick Davitt

much. very Thanks, Yes.

Operator

on move to Dunn Evercore. from We'll John

John Dunn

relationships you and a in vehicles, the evolving? little those new And talk Thank some channel, making also intermediary about bit looking potentially you. how right. can All of are at the investments you're

Roger Thompson

last yesterday, around the Interestingly, make, -- have the and were years And of I particularly we at that getting looking world, right from. over there. didn't instruments think to seen lot at they've launches we've a product right the ago. we're, success where come few we vehicles a we've flows few and made flows actually when the continue around the looking are years were Board in at from products exist that the

products, on about products. think ago around something launched be Getting ETFs. talked they another base, lot obviously, excited our but the from of $X.X we've World selling whether take product launched billion in is like years, so products there And that multi-strat we're there in -- third-largest JAAA, about is the the strategic of in That growing now sold U.S. is in last a which in franchise, the low Europe. is U.S. existing vehicles sustainable product. global few our a the ETF pretty Developed it I substantial as that's a income over We've the got interest year so being we've being where U.S., product launched So, now or great been Bond. a We fund

the going a but we've of And sure work of of in Got to both got making plenty corollary right right product, Q is then on John it. also places. Dunn in new terms that. there the kind that vehicles So -

guys a Could the vein? more of You distribution and different customer mentioned experience, you give kind flavor what which us in important. more is channels of in differentiates becoming that you

Richard Weil

Yes.

investment customers consistently. want, think excellence they I want

Second, the the right information right they time. want at

question better want bosses jobs, real convenient thought their a to a enriches to how your as and and easy friendly And of in they that efficiently as them complaint, at have and them you and makes they them effectively better. format, with they if Third, engage clients with access humanly the makes firm leadership their they a that, a that deal and possible. want or is problem their and

So, been sure without improving in ability feeling. disrupting enhance that improving that, to momentum we've that, building that we're to investing Difficulty] at do every stage the our are the getting of [Technical we progress to make technology

John Dunn

of G&A the that in then did we've just plan do seen Got your have services because to it. some professional and peers in And increase been environment. with this COVID the efficiency flat-to-lower quarter-over-quarter,

if a detail wondering could more what we on just get So, that. drove little

Roger Thompson

things No. Sure. couple There's of in partly FX. that's there, a

line. strengthened sterling the that quarter revenue the through cost comes against dollar the So line and in the

around talking is there, some that So investments Dick's of part that that is the it part of that's one-off consultancy that a and really we've a not about. around but

being business I the invest the we'll continue the last lower we've like you to and Now, that again, we'll been we said, into and year. year. that's give will the to we've got built continue of guidance us end than around guidance in investing at And update

John Dunn

Great. Thank you.

Operator

do us further And the questions that we at have this Ladies appreciate today. end our no your of time. brings participation gentlemen and conference we to today,

Janus Henderson (JHG) 31 Oct 202020 Q3 Earnings call transcript