JHG - Earnings call transcript Q2 2021 | Janus Henderson Group plc

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Operator

Good morning. My name is Andrew, and I will be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group Second Quarter 2021 Results Briefing. [Operator Instructions] In today's conference call, certain matters discussed may constitute forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements due to a number of factors, including, but not limited to, those described in the forward-looking statements and Risk Factors sections of the company's most recent Form 10-K and other more recent filings made with the SEC. obligation any no during statements assumes call. the Henderson to forward-looking update made Janus you. Thank

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

Dick Weil

the Welcome, everyone to our usual, Group. second quarter CFO, as Roger Dick and joined Janus call Weil, XXXX I’m I'm Henderson earnings the for by Thompson.

call a business, and the long-term As robust taking we the our we’ve well with use said business through in as on line to second discussion on our quarter previous more of our run calls as view strategy.

include are updates to and will touch today's the presentation, We our with flow also and In then I like would of you usual of results, start over performance results. and with hand quarter financial the I will this a of quarterly on our with usual, then line take summary toward it and some And precision second progress detail. delivery will strategy through as who we Excellence. Simple in I more results to Roger, making

always, prepared taking questions. remarks will our As your with follow we

X. Slide to Turning

Here is our the see as story it. I of quarter

First, beating their years. It's our of assets investment over X solid performance. benchmarks with XX%

billion Markets $X.X high our of improvement outflows first billion. an quarter. $XXX.X of net Second, X% to the were over lifted and new strong is AUM a

and returning performance and shareholders. flow strong cash This in prior generated our our driven compared we EPS financial quarter, was extremely of Third, that. results. Roger by than a higher more These XX% Adjusted $XXX to quarter and you better is through $X.XX second to mainly to quarter. markets combination are our million excess committed remain strong will We strong than very a $X.XX take of to fees. cash up the ago.

quarter share which new generation, has to $X.XX and we million As accretive complete by announcing dividend a share. are given today, earnings buyback, we $XXX we Board authorized a per a cash strong April XXXX. And of also second declared consequence, the expect

call out a the Looking deeper underlying highlight. at bit positive some result, let trends me to net flow

in flows Mid Asia Denver, was equities Pacific quarters. with were SMID pockets flat intermediate particularly team from of talked in flows Cap that some and we've net This First, channel our recent offset Growth which has in our by LatAm outflows, EMEA and intermediary about in U.S. and regions. positive experienced underperformance in

Second, to continuing the looking win remains reinforcing from we diversified at are investment Quant a challenged. our list of of across business very capabilities. Equities strategies institutional, breadth

to growth Next, flows as I’ve path organic told net our Equity starts Quant going our positive with outside you quarters, of in prior business.

We are the last fallen short, and but growth, consistent for in quarter and okay in first which achieved with fourth this of year year, quarter aiming not second us. we’ve we that's the

confident chance trends outside half Quant of that us second pipeline underlying deliver the consistent goal year. the more of make to the have of Equity the the good a and our However, we positive flows in

the that continued Turning to see on you page. four significant X. this executing can first across We’ve our strategy to Slide planks progress make

of significantly will and the leadership toward environment, role created strategy. hopefully, contribute well a who talent teams. the Global already control also and strengthen hire moving and announced our our Last strengthen of will we've example, For excellent approach. This We've best-in-class COO. help our week, He in enhance newly James as as leadership our team. to firm-wide on infrastructure joining risk building continued be continued we appointment Committee Executive to first-class our will Lowry,

as we’ve by announced evidenced capital been requirements, to has in us assisting which this return lower of capital regulatory are delivering further today. Importantly, this shareholders

growth. our the to on organic running in But key day business ultimately planks our four focused strategy, those first remain of and fully day and delivering remain which to with we ahead, progress Looking strengthening able potentially now growth include as time, energy are initiatives organically some we investment focus. well. with and to this to over planks, and both is inorganically additional four greater develop going And new first

some to let this initiatives. are call that recent out to as our Slide ETFs. about vanilla a In focus Within as for highlights. ETFs, franchise successful think attention our us we’ve X. of growth five the slide securities those particularly we such me in our Turning areas fixed We income short-duration on JMBS lay small areas, your in active the and but ETFs, mortgage-backed

positive last is a of the real end the ETF, flows our innovative ETF, CLO marked which back an our extension of existing in of launched JAAA, U.S. The we the estate ETFs. of the real at XXth strategy. consecutive first estate launched pipeline products, equities half We’ve AAA active natural net year. of In June, as which XXXX half we JRE, U.S. such

also We ETFs. be for active expect which sustainable are to fixed active U.S., income we registration investors U.S. granted, equity and includes only offering fixed preliminary equities SEC expect we the to the with both ETFs a firm ETFs, sustainable in launch active filed This September. statement the in the including sustainable in three if five approvals two for hope Again, income and and

in strategy. I mentioned investing in Australia. of an expect the already coming excellent in our some Turning the should just you record products to see equity ESG-focused sustainable sustainable and more developing product We’ve quarters, dedicated ESG. we to are track launches including

XXth example, anniversary and is celebrating For three X years. month, both the decile year equity Morningstar ranked sustainable over its global strategy and in our top next it's

ESG, awful strong background done. an recognize to work in we We be have a there's more lot but

We about are ESG. our growth where excited in are we in phase

teams, a support of available people. in investments our XX team X growing from We to people are ESG investment to making central

consistent to front cloud-based standard our management central approach data all support ESG of also building ensuring to a applications. are delivery data We office of

half domiciled to be under We are EU regulation. or of the Disclosure Sustainable by designation more an range January X also than targeting by measured AUM Article fund Luxembourg Finance X our XXXX

in As making ESG. you great are we can see, progress

business. appointment we as we’ve strengthened This our further before, a to Last Earlier about new Head and now recently Japanese with the in senior very we’ve is two really continued along he welcomed our who to week, We leadership chance also this Aizawa, think partners important Distribution of of announced really energize the efforts in Japan. Asia, we is in Life. Daiichi strengthen executive, and leaders Chairman in support from Shinichi Finally, Tomoyasu is Japan, have excellent these talked the Japan. year, Dai-ichi of us. Tanimoto, our a at our

Before up. handing over to let wrap me it briefly Roger,

We excellence in continue focus business. on and our growth to

have confident of do. work stronger, profitable but more organically are We awful left path deliver and we a working the and an right to lot are to Simple growing, resilient business, that we is on Excellence that more

now me over with precision. take to results Let to some it more turn Roger the you through

Roger Thompson

Thanks, Dick, everyone and for joining us. thank you,

remains of compared performance two-thirds assets their the reflects and around XX% Morningstar June. the Turning respective solid performance on to X represented as X, with XX%, beating three X of quartiles benchmarks on Relative XX% a the Slide basis a firm-wide top X-year Investment of to and XX in X, X. X-year and X AUM peers of basis.

of tend the X-year flows. is our for As indicators in AUM called of basis. on first top to X out quartile the at term These XX% and page, XX% and metrics in longer the the a Morningstar be bullet better the

flows Slide to X. total on Now company turning

outflows outflows net for seeing talk which billion that good the Growth flows our contributing important talk positive second in in region intermediary and Asia next that annualized inflows strength than to Europe fee saw and EMEA, Pacific, region, growth set we For strategies. offset by looking a in areas detail flows intermediary rate I by the channel $X.X and America products X% outflows each in net were By of Slide XX%, U.S. in are business management including In and the about of contrarian and closer mask flat. intermediary, Asia QX. slides. client the note were Developed Pacific, will offset EMEA, later. net And breakdown reflect underlying and X to XX% management organic equating some the in the challenges shows to about is Within other growth to of I and second flows will in the the we fee flows Latin inflow, Net Mid-Cap are Continental $X.X in quarter. a and regions, the flows at carrying the billion income, EMEA the quarter momentum impact performance the America in intermediary positive the U.S. diverse Asia the quarter quarter, of business, the SMID It's rates that our The by in rate. multi-sector more improved EMEA, flows business, trends with these Xth of quarter $X for into these quarter, last few from seeing consecutive respectively, of mark rate Bond on were the higher Latin billion of in type. World an and are

Moving to institutional.

Here, wins. fee by saw quarter of outflows masking significantly primarily higher Equity in billion we driven which Quantitative second was smaller the some $X.X but outflows,

diversified flows we're made encouraged pipeline. institutional progress said solid to elsewhere, we've being team Equity by previously, a Quantitative but As longer take will the and in heal, the globalizing

includes for channel, quarter. the Finally, self-directed in investors, and which outflows $XXX direct million the supermarket net was

wide inflows positive continue a strategies, in overall mid-cap strategic buy equities was retail the prior EMEA quarterly U.S. certain net billion. strategies income second were in and flows equity in see strategy primarily quarter global by billion. the fixed quarter, by $XXX X prior slightly outflows were European U.S. of and Flows Chicago of negative of Asia fixed were liquidation Moving managed Australia. The about multi-sector to the to into tactical $X.X income, we value positive, Equity the multi-asset Whilst in in to in the Total in credit of balanced quarter across outflows talked were Slide and the result across America, Pacific. fixed quarter. the as this growth North and by flows the team into driven quarter real range were well we outflows in Outside $XXX the by small that compared estate. million Quantitative the a the income, by U.S., driven global and U.S. the the maintain capability. driven negative breakdown positive in million and from inflows including $XXX the in million, quarter. flows $X.X continued income the as were quarter Equity

Finally, several The were to the primarily higher is strategy XX Slide GAAP which our in really our benefit pleasing It's U.S. the geographies. fee another presentation product positive standard statement flows in shows alternatives the set. return seeing diversified business, of the of alternative compared which million of income. by to momentum see is product, hedge multi-strategy our our is in million of of which absolute $XXX our outflows and driven prior in funds, inflows were $XXX inflows quarter. one

Moving the XX summary for at a to financial Slide results. look

As this and can you strongly are on extremely year-over-year. metrics see financial results quarter-over-quarter good slide, up with our

prior reflect same Average The the to primarily ago, strong fees rate. from results seasonal the period fees fee XX% management the in quarter, same income from the further ago. prior the and seasonal second performance to compared mostly a second second AUM X% from revenues Total year net average higher the compared assets. quarter a performance assets, increased improvement and market and year XX% XX% due and from increased quarter higher a quarter was quarter the adjusted of gains. up in to Adjusted $XXX average XX% million operating quarter period to prior our

quarter to compared XX% EPS and prior XX.X% increase $X.XX year-ago, representing adjusted was a XX% for in compared a margin $X.XX operating XX.X% year-on-year. the to prior quarter a $X.XX lastly, the diluted quarter year-ago. the for adjusted and was quarter And Second

this items between Before moving I clarify adjusted the difference. two were noncash diluted GAAP and the EPS. difference on, quarter U.S. There wanted to behind

this income assets million increase First, the was XX% our intangible the with be XXXX related remeasured management secondly, $XX.X related certain rate. to impairment recognized recognized to of million liability contracts. at to the We Xst from to expense this tax we a to an investment tax from on and deferred of XX% And $XX tax requires U.K. proposal effect April XX% corporation enacted, remeasurement.

second the fees revenue Turning This net the XX.X basis high quarter and straight to was XX.X prior to from in margin increase in drivers which and Net fee for quarter. the up management fee margins. the marks an revenue points management adjusted outlines in due was management the both from drivers Slide higher the the quarter margin. for in year which performance points, quarterly average fee net ago. mix. were margin up basis markets biggest of changes Xth underlying seasonal asset is XX.X points basis positive in The the a assets, XX, and increase of change quarter The strong

and the and and fee relatively million, I’ve talked showing be versus to EMEA Pacific lower both Inflows and equities. being the as and margin with the fee multi-strategy up high a fees fee products for continue our focused just areas, areas Performance We Asia quality quantitative that were higher in about, rate. prior in outflows that's $XX quarter $XX in year-ago. such are million on margin into coming including assets, quarter intermediary

million year-ago. to this compared Slide pay Given quarter as I first range million in SICAV that which the a performance our wanted fee compared the measurement Performance fees mix strategy, insight drove quarter in $XX performance million annual second and result payout. have $X was this into a which quarter reflects additionally, strong the and from delivered on of of diversified the exceptional increase absolute little The second I'll more do the has SICAV's period and June. the quarter bit return And $XX first this, result performance it, quarterly in a to the quarter in seasonality you what to fees and second give XX. were funds,

Second, million by driven fees the and the OEIC Return U.K. performance unit quarter, $XX strong Absolute were in in the to in QX million $X fulfillment trusts fund. first compared

earning were pay the smaller trust Third, compared trust fees trust negative performance was and were the quarter for the $X performance in performance companies mutual the investment to compared $X second investment U.S. million fees Again, fund by first negative driven in trusts. growth the in quarter X performance the fees fees quarter. in U.K. last million European $XX the in million quarter. and seasonality that this from during quarter to annual

updated has period U.K. performance payout, OEIC and want to on measurement will SICAV from annual that already we've you that measurement offline. quarterly an switched which will annual return if point that be then In period, on by this the fee The payout quarterly with to out appendix, Xst and change, of to quarter, provided earned, absolute the Xst strategy AUM an in in I line more the I’m the one quarter The payout a measurement reflects starting switch switching of through with eligible June, October. earn third fee to Finally, or the the quarterly regulation. last will happy in talk May. to

Adjusted to in operating to higher Adjusted as variable includes was on a operating Adjusted costs, Slide the was largely quarter of down Turning up from expenses from XX. variable taxes expenses prior fixed X% result up compensation annual quarter, payroll due in second compensation, which which quarter. were X% the and $XXX the to employee higher was compared quarter profits. prior primarily on LTI on vestings QX. XX% million, first

was ratio quarter XX.X%. adjusted comp-to-revenue second The

a higher XX%. from range Adjusted prior non-comp the For still anticipate expenses full the X% the we first compared XX% XX%, the primarily quarter, of to were for of operating half higher G&A. and ratio XXXX, year, was to

of For rate effective expectation remains of XXXX, single mid for was XX.X%. non-comp second our unchanged. digits quarter And growth expense the recurring the finally, tax operating

flow to generation Slide were million Turning profits and the from of of resulting mentioned. increase of from our look $XXX is strong we which at liquidity. cash an a the just June, XX, cash as million, equivalents XXth Cash the $XXX

discussed and exclude MD&A more how cash and capital XX-K investments slide of our our reflects and from resources with liquidity. true and in As this also a the aligns reminder, our section XX-Q we now filings. It liquidity VIEs as to accurately related VREs it we

declared of to paid the shareholders Xth dividend the and be approximately During paid the on shareholders share of $XX quarter, $X.XX as to of per August. to XXth million August in second a dividends we record of

expected buyback completed strong Finally, we've in flow the Dick with demonstrates cash has that the the buyback announced million as which in $XXX and reduced generation returning including dividend, capital significant $XXX today buyback, $XXX our AGM additional to has first of next announced previously a last is requirements, April regulatory to the cash The completed commitment a of shareholders. be X% million sheet, the our mentioned, Board quarter, quarter excess authorized by balance million XXXX. and increase quarterly

it operator like would turn to Q&A. I for over to back Now the

Operator

[Operator Please from The Fannon Instructions] Jefferies. with go comes Dan first question ahead.

Dan Fannon

Thanks and good morning.

You both mentioned inflows you pipeline. solid list are diversified institutional a of side, on and think taking a strategies that mentioned the I

or little fund get that some to context. a the just of level either sizing at so about So can hoping color we think maybe some more

Roger Thompson

Dan, Hey, Roger. it's

answer Let me that. and try

say, of mix it's think continuation just a a it's called of as a the we’ve also out. I mix, we and things

smaller areas. fee fundings higher some in So

we’ve high other hopes And think good see you lower and expectations seen like, opportunities as as bigger expect some for products we I that’s that had some in area, if there. and talked barbell, an in well. to AUM some continuation previously fee a about So fee wins winning and product. end important fee The multistrat the assets the -- some in we’ve -- on bigger good got of we've that

be obviously So mix, in good revenue come for of a growth there and profits. both through. most in important size, should the expect But terms we is the us thing to

So us different flows rate. in that of fixed growth in in sustained -- income, of in, mix both multistrat continuation areas of product fee equity that gives in give areas and management and coming confidence like

Dan Fannon

five are Great. some and a you organic things areas Dick, you and then inorganic that already that happening. follow-up, mentioned as focus segments the growth, those And of highlighted, the of

within in M&A alternative sense? you make where could a about these Could seems opportunity. maybe be like your inorganic potential inorganic context of might maybe segments talk this -- more where backdrop might for area the an So and appetite you

Dick Weil

Yes.

doing U.S. base liquid versions we already that of care to think us job and in and areas, with end the good of these of organic a the So push of have, alternatives, like adding from science alternative efforts, strategy focus strategies we sense organic are into us. makes more bit first about adding suite we the less the strategy some on think health a and the our lot for alternative I and the in of life our that spectrum that adding extending a space

and We that both in equities are looking for to income. fixed opportunities do in

to a opportunities opportunities, look inorganic hard about As inorganic culture find look people hard you take find a that the like match. are as of part an opposed want do you It's and fits. hard it's we own to area. organization be marketplace always, find But little out in directed self talk when compensation to It's at also in to their that, the be who to there. that

business. right finding so difficult days It's fit of different difficult. of especially that the in high probably lot these with parts it's nontrivial very for And exercise, is a prices alternatives a

So actively presence and looking our intend we inorganic. alternatives. grow much opportunities, at are organic to We in both very

will alternatives. We push liquid more into

We specific more I that’s have can it. how looking than elements, be we be will will also more those smaller, think don't that. and less some but are I at liquid

Dan Fannon

Okay. Thank you.

Operator

The ahead. next question Henning comes go from CLSA. Please with Ed

Ed Henning

also Hi. the Thanks question. should how run the about the measuring we you're also how key on here, Can then biggest you just success also look questions for Two taking think of just growth. medium-term highlighted, then my within through biggest areas and And And opportunity? you opportunities if what milestones? what's think the is at do opportunity? the that, just you near-term you

Dick Weil

We Roger his Ed. Taking I for a filed ETFs five in clearly, first, think new in active products, as part most second we the U.S. the opportunities, statement comments. launching biggest are in registration new mentioned the Thanks, near-term

at can things Australia. looking We do down are we additional in

are are a existing I one we we right ESG, whole active. includes is, are new forward continues ESG, on think an near-term, strengthening across about in the ETFs In firm, steps we alternatives, We've active. awful it very products, to the area the talked product. bit which that that adding lot in the but putting of taking so be includes effort includes probably within approach pushing it And focus already what forward to

is anniversary a and product excellent it's up coming effort. equity in XXth year its on Our on Europe ESG focused remarkably

we've got a like so for But across happening reasons. And to the plant you things board. different farmer, need

long-term. things you medium paying do do hopefully then and pay to are want planted want things you and and tomorrow that some are the today in so that in today And to the

things So do time to the act are to future are also immediate, that more trying think across foundation lay success. both frames but we for that

Roger Thompson

about side, think the I on Ed, clever measurement that. super there's nothing

For we've growing us, for us about we get business. how -- talked talked important is -- we thing our the about there. and about And

but it's us, really flow, it's for and growth -- yes, profit it's So, ultimately, growth. revenue

what So areas we the run we Are look investing in. at they different them do? to speeds. wanted Things are all delivering we at

now flow you those. for As Dick things profit. plant to and of nurture and delivery it's just said, some revenue to need But leading about seeds ultimately,

Ed Henning

Okay. Thanks.

Dick Weil

Just that, investment. forth where at the to delivering on I'm to is to you, investments we are looking about we having in it and areas The having the that are financial us these great make but on sorry results thing enables strong growth. close back additional go appropriate areas are

So business. inorganic taking of investment and in know we some hard we make organic our the we a opportunities, and areas, each have capability these at to in look are additional

Ed Henning

helpful. Okay. you. Thank That’s

Operator

Davitt Autonomous with comes ahead. The next Patrick Research. go Please from question

Patrick Davitt

guys. morning, good Hey,

investment without we kind of with gone of savings. this these in all perhaps even of the lens want expense kind investments at more saves First How a through invest kind expense offset guys should opportunities through see you the need year? make having pretty period the to you tenor -- on about think finding beyond growth good expense of the all ways idea to question of these to offset and -- good pretty that being this you at of that and

Roger Thompson

on I’m a headed the on our always that’s we to we efficient. think be what investments where we given making margin looking and is Patrick, in doing, make, comp there more But the to ratio. to business, we included are business. core hating guidance in I I’ve are are always in are of lot add, and investments

and more launch go to you going the to sizable revenue investments to that to is growth base but I expense look obviously and business. of or a become how grow at revenue something were the to buy those continue challenge come to sizable, we time. the constant is with something So if us we going allow that's in -- over make to expectations efficient guess if

So obviously change the they we again, the are would -- the constantly line business, the business. size but at would be business bottom growing of the looking of and looking we growing

So I think that's probably the best way of thinking about it.

We more at the and run make trying are business. those If expect looking adding constantly be to you'd business well. a investments, the efficient the we revenue of ongoing to as to bottom

Patrick Davitt

was Okay, the running quarter? performance fair a doesn't fee, it Is much it's if than were on all. at correct, of this look that there correct -- core of that you is is you much not or there that's kind comp accrual and correct? really at compensation could what lower enough. And a So like then like

Roger Thompson

our benefits see and is can You comp quarter-on-quarter. XX% up

a we've formulaic the before, payout So house. at as about we've talked of got relatively top the

So obviously, higher see profits results in XX% higher that so that's increase can the Pat. you comp in And pool. a there, quarter-on-quarter,

Patrick Davitt

Okay. Thank you.

Operator

comes go ahead. Miliatis The Liz Please Jarden. next with question from

Elizabeth Miliatis

I have two. for do you Thank taking Hi. my question.

more to it are bit I that at of at commentary bit to that then focusing into you taking And some with ESG. a Firstly, there? were in Has -- fairly a really and a something approach it tax. last find aggressively? more it's to second that on seemed going like heavily seems little my strategy. evident investing it question cautious you odds you changed relates be ESG your results Are where

tax your guidance, the should low that Your of that has assume that so the rate guidance of given quite range? sort rate we falling half. across first far in end maybe be seems of Should again you to tax now outside bottom the been be

Dick Weil

But first I tone. if the changed you have about we’ve no, rate. the leave ESG, from that the and apologies the part Liz will Roger, on you Hey, talk take to sense tax and

done that. really We intentionally haven't

a make that develop progress in and and We path continue a and on. approach to been that’s are not and are strengthen and turning we our been work the ESG recent on signaling we point, signaling to continuation quarters, consistent we’ve

haven't apologies communicated if but the we perfectly, And that And the intent tax? on from our so Roger, side. that’s

Roger Thompson

under We our quarter. Yes. the very in were slightly guidance

we the XX.X%. tax where The -- XX% earn profits. is empiric rate tax think we I the guidance to pay in rate Yes, tax of XX%. places

to So the the at you half. lower XX% in at the we've guidance been But of are XX%. right, same end first stays that the

Elizabeth Miliatis

you. Thank Okay.

Operator

The next Please with go & question Simon comes Evans from Fitzgerald Partners. ahead.

Simon Fitzgerald

strategy Hi of growth another broadly? such that. as is ESG stick you've do to few you of a looking style -- there. years of medium Obviously, more looking being sort fully sort even I equity of little sort potential term, you you the will of addition on the or independent a side fledged of being just see forward for a your Do minute. highlighted from as sort of things see just this just sort Intech or do see sort as this

Dick Weil

you, Thank Simon.

the separate We firm. as thing from it of are away about a thinking not the rest

approach, time lot and formalizing things into clear, been We making a that it the core have is are thinking about that the separate investment And documentation that’s that then data it new style. firm. resources, Part and not we and a it. distinct part and strengthen are, the we we're new both. and that doing as doing research is as it long appropriate for really the of people and part see of of of the doing and a is the to franchise core the of who But of as sure integrated part of evidencing adding gathering

terms and it terms those firm, identity. overall at investment process both at levels of and core process product. want in think -- products, investment and all we but in not of We terms be at overall are also at to of about company also We then in

Simon Fitzgerald

Thank had you. Okay. … Maybe I

Roger Thompson

I said other it's to the would add as across equity, actually you thing Simon, totally that firm. the it's as well only but --

very fixed income business engaged with our ESG. So is

engaged Our is very ESG. with business Quant Equity

Article to the X quarters. see old our Some of the some products, of over couple will next absolute moving products of you return

to it's business. So across again, it's entire the clarify just that I equity, just not wanted

Simon Fitzgerald

then think Yes, those that’s June the, dates. the on we final performance question, year in then the future? And will that of restructure in terms just sort clear. the be I pattern Should around just sort sort in of seasonal end of strongest of fee guess,

Roger Thompson

now add the QX, you the version of Absolute fee performance be OEIC will QX will annual the Return the annual from version the in fee So the fee SICAV performance Return from of performance will Absolute and Fund be actually.

I will because bit, quarter again, a So in our eligible. should lowest is little that us of in, QX come normally guess, smooth terms that what's

will bit. that little a smooth So

Simon Fitzgerald

Okay. Thank you.

Operator

Sachs. from Goldman comes Bolstein ahead. question Next Please go Alex with

Ryan Bailey

him This of strategic speak hire, actually are mentioned. you on your could as finding for this to you wondering is aggressive if given at Alex. to as hopes I hire experience Alpha? COO, James investments Street Hi. of is to What the focus then efficiencies? his on at, focus Global or Ryan Lowry, was and particularly And on State look more behalf expenses to an

Dick Weil

infrastructure we and excellent stewardship as executing in the firm. and be Dick to need in should order the very as architecture seat my aligned have in ourselves together here. push of those in of that parts different in of be experience, side areas. efficiently and in client to excellent infrastructure, And in in the investing, good to to really all Hi, data a order tied I haven't from job a Brian, lot I forward do done and uniting firm

in COO those aligned effort the so have is and our responsibility new take pieces efficient the different to we and and and parts will first we're urgent that all being of make and how deliver effective things. that sure And that

firm our in he infrastructure contribute Of of that effective lot strongest, clients most also one all is can piece possible and as simple, well. infrastructure know the broader have to spends will most things are first the we we we most that strategy across deliver scale those are initially, so investments everything that areas job our making are excellent, most be and as and and leadership across he making aligned we time, brings to will teams. in for the doing, way I and the aligned and capable a really welcome investors internal other that the and and excellence doing sure he be foremost, But course,

Ryan Bailey

Got And a for quick Roger. maybe one just it.

if the just management any that the of help the there wondering contracts? forward? going could if of us Just about And think are from driver impairment implications was asset you what

Roger Thompson

No.

probably know, As a you number different, intangibles Ryan, in places. very we recognize specific of

don't So those things originally fast as grow would some thought things when things as write and grow you up. some you

a write can never balance. You up

intangible. grow as need as than things when you So thought were are take with, the when you to start of pieces at upside. When you those things look that expected, better to not exactly value don't the never you and going they fair -- individual go at look

one particular know, did we to the that's taken value, area So backed noncash item. when that it's a needed why fair we that as there's at intangible you wasn't But just look that's off. intangible. the so But up,

Ryan Bailey

Got it. Yes, Thank thanks. you.

Operator

with The next Please question Citi. from Nigel go ahead. comes Pittaway

Nigel Pittaway

guys. Hi

strategies. Mid-Cap for on a question the now, underperforming a mean while chunk thumb and have I there. a all, been and is of they SMID of big there first Just

sort about a how if you just see those the performance in don't So near strategies, you turn of future? are in wondering worried

Dick Weil

Dick it going on in effects have that’s Nigel, we In Thanks. flows worried are where short-term, the to clearly a be, fee we? concerned. are performance short-term, wonderful Hi. we see sort that we isn't would It's business. revenues. and the of to high In the here. How and like

don’t these and the I been some is investors. are across absolute Coleman are the Demain so and super products, cause good Brian potential well But of strong those them really they folks And leading they look And anybody some And in performed when decades. managing saying best indeed Jonathan you teams mean as our for pain pressure by pain. stable and who on and obviously, has it heat and some but to have causing and to world. this, as the more are

we have don't. So No, we do long-term concern?

will and in those the and in But out created certainly some they would are we the We market like, short-term, have the long has to and are will what create just than been that we the very effect run. will long-term, pain absolutely it and results world really more. in confident. has, But that some turn see what the weaker do, best at have

Nigel Pittaway

if poor but quartile. for slightly are Thanks or on that negative sort And understanding fairly of the in sort Okay. turned My where that relaxed then looks Is is -- as about the slightly of may areas, recently. there balance also, another area lower the sorry of concern? it's have hop that. to sort obviously, that you is that is some still fund

Dick Weil

we things, recent it know with -- and fund softer growers as the is very I it we largest one no, are It data, months, stronger and watch carefully. don’t we so and it had pleased the Well, most not strongest But some Roger our had is does. very transition. actually maybe are some of of where the then months. public balance

a our We with easy bit driver business And do. fund. now, the while like not a you have move been that as to for correct a add to like It's anything manage job of these little team, want to or leadership. and Roger, signs superb things the superb and we are that on we It's confident. the an manager pleased going and process, a really We it's manager. abating. But we're around don't really we that? biggest see

Roger Thompson

yes, and outperformed said, X X you're you It is it's strongly and but top -- year, over Nigel, Like right, XX. decile over decile I over year. even top over No. is quartile benchmark than think its one -- even better it one third I it's probably it's think

very performance but So a relative agreed. is short-term the very it's in a little good place, weaker,

Nigel Pittaway

Okay. Thank you.

Operator

Evercore. The go question Please comes John ahead. from with next Dunn

John Dunn

kind that I a Since do average thumb per year? launches be fund guys priority, guess higher you launches at have number end. would rule you. for are would five the of Hi. of Thank of

Roger Thompson

think have we that. I don't -- we don't

at what got looking in for, sure that right constantly are We clients we we've place. the and are can deliver looking what making

years or -- So capability making over set set the done work vehicles of that fully already world. last a product that the by around leveraging sure lot we've we've got that the the few making are we've we of got sure we've already

world. things OEIC, just the filed his been So like We having U.K. we've five already just said a new we've that launching done as comments, for Dick Sustainable, -- been Global originally around only which in was we've one. launching ETFs,

The So of are teams capacity we hard. to There places. have a a capacity. working world launch lot is around us lot multiple the for of products in multiple

done the leveraging So haven't sure and world vehicles seen success place. new things around we've there isn't we're last few that probably real We some the making over a the And right as sure because in we've the number. years right that. got the been making much product we've with

that in the sustainable markets. Strategic we're fund would that about, successfully a obviously, that a sell bonds just talked balanced very we again, example. be U.S., we selling selling something So and now world good U.K. around and in we're that was, the multiple was

last looking So the we of in probably years in products. we've of I client we that is will capital. got we do guess future. done existing we will more there. satisfy now try we that of products -- to We've got if to vehicles final seed as yes, do part number we've demand But things much a -- out can And now as have few of the and launching the launch are

to continue to will work. capital put We seed

there So year capital, probably some launch more remainder the there as in probably is -- this next some some seed we will year of are and which add products.

John Dunn

more might then products that rate environment? anticipate what the Makes in sense. of some demand a you rising some are And catching

Dick Weil

of is. I environment equities lower. rate be guess rising which to environments, of There sort kind on depends rate are what repriced caused it rising

and strategies. expect in than better environment valuation kinds to of You'd value that more the growthy more strategies do

in of rate part environment. downdraft rate bullish of big You where a is a really rising kinds equities. doesn't environment, rising a could see cause cycle which it There's all

markets history, can up go see at you look down equity rates. with and and back rising If you

know don't should more good value, as nice we more I conservative and some think some So on mix well a pretty the side. and We've more mix our some income, have absolute the a growth aggressive, cycles alternatives of with fixed returns. from pretty equity on good got protection exactly. I of Similarly, offer

we where expect the on in third business that parts that of of parts alternatives is equities, part and obviously we're our I business would increasing place So the have our continue in that could But the grow. well would to presence. do well be could fixed a of can business focused

John Dunn

Got it. very much. Thanks

Operator

with from our will question Please Stanley. We Andrei Morgan go take Stadnik last ahead.

Andrei Stadnik

what going question. one around to do And making time? Thank in kind bit wanted be a about talk outcomes kind Asia, results ask you're you. I you investments expect the of to you Can just little of China? over particularly

Dick Weil

We’ve make China. alone capable in to don't company we Chinese taking ourselves going and uniquely relationships haven't small with China that continue years, we a looked thing the open of close on or the of don't Yes. do. couple think our to and We’ve as Shanghai we that at is market. of and a partnerships people are X be we in We've the actually go ground. at a looked right the but in view the right probably on I hiring huge need to and hard XX We right circumstance. sort think times, just folks and we're to over But come found just the investment

past go us, in continue until with the we’ve for that not of with a And we've as or it's service part been the can But right happen. as time identify practice lot. so partner, looked market such a opportunity to we we the will world, may to consistent probably market to which a may a at who makes that it's sense part most

looking. we have in also done and whom forward interest or and us, we the and ability to guarantees to We given great in will to whether other continue to find of every certainly we are make interested will about company be it our big no step to opportunity. get with lot so a that we there opportunity compete, is interested there but we a don't. But It be it, see a right

Andrei Stadnik

you. Thank

Operator

for the This attending and Janus Henderson concludes XXXX question-and-answer briefing. second Thank results call. quarter our Group session today’s you

may You line disconnect your this time. at

Janus Henderson (JHG) 31 Jul 212021 Q2 Earnings call transcript