Financial Data and Key Metrics Changes - Janus Henderson reported adjusted diluted EPS of $1.09, a 20% increase compared to the same period a year ago [10][31] - Assets under management (AUM) reached $483.8 billion, a 6% increase over the prior quarter and a 27% increase year-over-year [8][31] - The company generated net inflows of $7.8 billion in the third quarter, significantly improving from $400 million in net inflows a year ago [20][21] Business Line Data and Key Metrics Changes - The third quarter saw 21 strategies each achieving at least $100 million in net inflows, up from 11 strategies a year ago [11] - Fixed income net flows were $9.7 billion, while equity flows were negative $3.3 billion, impacted by a merger that resulted in $900 million of net outflows [24][25] - The alternative capability generated net inflows of $1.4 billion, driven by various strategies including Victory Park Capital's asset-backed opportunistic credit strategy [25] Market Data and Key Metrics Changes - Net flows in the U.S. were positive for the ninth consecutive quarter, with significant inflows in Active ETFs and U.S. Research [22] - In EMEA, net inflows were recorded in Continental Europe and the Middle East, while the UK experienced net outflows primarily due to a single outflow [23] - The intermediary channel saw net flows of $5.1 billion, equating to a 9% organic growth rate [21] Company Strategy and Development Direction - The company is focused on three strategic pillars: protect and grow core businesses, amplify strengths, and diversify where clients provide opportunities [11] - A partnership with CNO Financial Group aims to provide long-term capital, enhancing Victory Park Capital's investment capabilities [12] - The transition to the Aladdin investment management system is expected to improve operational efficiencies in the long term, despite a short-term increase in costs [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent growth, despite acknowledging that not all areas are performing optimally [39] - The company remains committed to returning cash to shareholders while investing in business growth [39] - Management highlighted the importance of active asset management in navigating challenging market conditions [95] Other Important Information - The company returned nearly $130 million to shareholders through dividends and share buybacks in the quarter [18][32] - A special committee has been formed to evaluate a non-binding acquisition proposal from Trian, a significant shareholder [6][39] - Roger Thompson, the CFO, will retire in April 2025, with Suk Rawal set to succeed him [40][41] Q&A Session Summary Question: What is the story behind the improved gross sales? - Management attributed improved gross sales to having the right people in place, incentivizing them effectively, and ensuring product performance [43][46] Question: Can you comment on the themes impacting equity performance? - Management noted that while one-year performance in equity is lower, longer-term performance remains solid, with over 50% ahead of benchmarks [60] Question: How do you think about capital return from here? - Management confirmed that capital return expectations remain unchanged, with plans to complete a $200 million buyback by the annual general meeting next year [71] Question: How has Victory Park's AUM grown since the deal closed? - Management expressed satisfaction with the Victory Park Capital acquisition, highlighting its growth and the potential for future expansion, particularly in private credit [75][86] Question: How are you addressing recent issues in the bank loan market? - Management emphasized the importance of active asset management in mitigating risks associated with market volatility [95][96]