Janus Henderson(US:JHG)2025-07-31 14:02Financial Data and Key Metrics Changes - The company reported adjusted diluted EPS of $0.90, a 6% increase compared to the same period a year ago [30] - Adjusted revenue increased by 2% compared to the prior quarter and 9% compared to the prior year, primarily due to higher management fees on increased average AUM [25][30] - The adjusted operating margin for the second quarter was 33.5% [30] Business Line Data and Key Metrics Changes - The company achieved net inflows of $46.7 billion for the quarter, marking the fifth consecutive quarter of positive net flows [14][53] - Fixed income net inflows were $49.7 billion, significantly up from $5.6 billion in the prior quarter [21] - Equity flows were negative $2.6 billion, an improvement from $4.2 billion of net outflows in the prior quarter [21] Market Data and Key Metrics Changes - The U.S. market saw positive net flows for the eighth consecutive quarter, while EMEA, LatAm, and Asia Pacific experienced net outflows [17] - Institutional net inflows were $49 billion, compared to $800 million in the prior quarter, marking the third consecutive quarter of positive flows [19] - The company’s AUM increased by 23% to $457.3 billion, the highest quarterly AUM ever [8] Company Strategy and Development Direction - The company is focused on three strategic pillars: protect and grow core businesses, amplify strengths, and diversify where clients give the right to win [34] - The partnership with Guardian is expected to amplify the company’s insurance, institutional, and fixed income businesses [38] - The company aims to enhance client relationships by evolving from transactional to partnership-based interactions [40] Management's Comments on Operating Environment and Future Outlook - Management noted that business trends have stabilized despite market volatility, with strong alpha generation from investment teams [5] - The company is optimistic about its growth trajectory, particularly in the institutional channel, and is focused on broadening its reach [58] - Management emphasized the importance of delivering consistent investment performance to attract and retain clients [62] Other Important Information - The company completed a strategic partnership with Guardian, which includes a commitment of up to $400 million in seed capital for product innovation [7] - The company has reduced shares outstanding by over 22% since 2018 and continues to return capital to shareholders through dividends and share buybacks [32] Q&A Session Summary Question: What are the next priorities on the institutional side? - Management expressed satisfaction with the positive net flows in the institutional channel and indicated that they are broadening their reach among institutional players [56][58] Question: How does the company plan to address persistent outflows in retail equities? - Management remains confident in their equities franchise and is focused on delivering outstanding investment performance to regain market share [62] Question: Can you discuss the addressable market for the new product, JABS? - Management highlighted JABS as a client-led innovation aimed at meeting the demand for short-duration, high-quality fixed-rate securitized assets [71][73] Question: What is driving the strong improvement in investment performance? - Management noted that the improvement is largely due to US and global equity products that have rebounded above benchmarks [75][76] Question: What are the plans for the multi-asset segment? - Management indicated that there is growing interest in balanced funds and solutions, particularly in the U.S., Europe, and Asia [80][82]