Q2 2023 Janus Henderson Group PLC Earnings Call

August 2, 2023

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Operator: Good morning. My name is Sam, and I'll be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group second quarter 2023 results briefing. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer period. In the interest of time, questions will be limited to one initial and one follow-up question. In today's conference call, certain matters discussed may constitute forward-looking statements. Actual results could differ materially from those projected in the forward statements due to a number of factors, including, but not limited to, those described in the forward-looking statements and risk factors section of the company's most recent Form 10-K and other more recent filings made with the SEC. Janus Henderson assumes no obligation to update any forward-looking statements made during the call. Thank you.

Good morning, My name is Sam and I will be your conference facilitator today.

Thank you for standing by and welcome to the Janus Henderson Group second quarter 2023 results briefing.

Operator: In today's conference call, certain matters discussed may constitute forward-looking statements. Actual results could differ materially from those projected in the forward statements due to a number of factors, including, but not limited to, those described in the forward-looking statements and risk factors section of the company's most recent Form 10-K and other more recent filings made with the SEC.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question and answer period and the interest is time questions will be limited to one initial and one follow up question.

And today's conference call such as much discussion may constitute forward looking statements actual results could differ materially from those projected in the forward statements due to a number of factors, including but not limited to those described in the forward looking statements and risk factors section.

Operator: Janus Henderson assumes no obligation to update any forward-looking statements made during the call. Thank you. Now it's my pleasure to introduce Ali Dibadj, Chief Executive Officer of Janus Henderson. Mr. Dibadj, you may begin your conference.

Operator: Now it's my pleasure to introduce Ali Dibadj, Chief Executive Officer of Janus Henderson. Mr. Dibadj, you may begin your conference.

The company's most recent Form 10-K and other more recent filings made with the SEC.

John Henderson assumes no obligation to update any forward looking statements made during the call.

Ali Dibadj: Welcome, everyone, and thank you for joining us today on Janus Henderson's Q2 2023 earnings call. I'm Ali Dibadj, and I'm joined by our CFO, Roger Thompson. In today's call, I'll start with some thoughts on the quarter before handing it over to Roger to run through more detail. After Roger's comments, I'll provide an update on our strategic initiatives, and then we'll take your questions after those prepared remarks. Turning to slide 2. Markets remain uncertain, and while second quarter and year-to-date market returns have been positive, the rally has been extremely narrow, led by a few mega-cap stocks. Persistent headwinds, including an opaque economic outlook, higher interest rates, uneven inflationary pressures, and recession fears, notably in the UK and continental Europe, are contributing to a difficult market backdrop.

Now, it's my pleasure to introduce Alan <unk>, Chief Executive Officer, Dennis Hudson is said to Bush you may begin your conference.

Welcome everyone and thank you for joining us today on Janus Henderson second quarter 2023 earnings call I'm allergies are bad and I'm joined by our CFO Roger Thompson.

Ali Dibadj: Turning to slide 2. Markets remain uncertain, and while second quarter and year-to-date market returns have been positive, the rally has been extremely narrow, led by a few mega-cap stocks. Persistent headwinds, including an opaque economic outlook, higher interest rates, uneven inflationary pressures, and recession fears, notably in the UK and continental Europe, are contributing to a difficult market backdrop.

Today's call I'll start with some thoughts on the quarter before handing it over to Roger to run through more detail.

Roger's comments I'll provide an update on our strategic initiatives and then we'll take your questions. After those prepared remarks.

Turning to slide two.

Markets remain uncertain, and while second quarter and year to date market returns have been positive. The rally has been extremely narrow led by a few mega cap stocks.

Ali Dibadj: Even amidst macro challenges, we're very pleased that Janus Henderson continues to make progress executing our strategy and again, delivering good quarterly results. Assets under management increased 4% to $322.1 billion due to positive markets, and are up 12% since the beginning of the year. The quarterly flows were negative $500 million this quarter. While just negative, the result is the second-best quarter in nearly three years. Taking a step back to look at the broader picture, our results this quarter clearly show significant improvement from where we were a year ago. Inflows for the first half of 2023 were $5 billion, a marked improvement from the $14 billion of outflows during the first six months of 2022. Let me just say that again.

Assistant headwinds, including an opaque economic outlook higher interest rate and even replace air pressure and recession fears, notably in UK and Continental Europe are contributing to a difficult market backdrop.

Even in the midst macro challenges, we're very pleased that Genesis Henderson continues to make progress executing our strategy and again delivering good quarterly results.

Ali Dibadj: The quarterly flows were negative $500 million this quarter. While just negative, the result is the second-best quarter in nearly three years. Taking a step back to look at the broader picture, our results this quarter clearly show significant improvement from where we were a year ago. Inflows for the first half of 2023 were $5 billion, a marked improvement from the $14 billion of outflows during the first six months of 2022. Let me just say that again.

Assets under management increased 4% to $322 $1 billion deposit markets are up 12% since the beginning of the year.

The quarterly flows were negative $500 million this quarter I'll just negative. The result is the second best quarter in nearly three years.

Taking a step back to look at the broader picture our results. This quarter clearly showed significant improvement from where we were a year ago.

Ali Dibadj: Last year in H1, we were sitting at negative $14 billion in net flows. Now we're at a positive $5 billion in net flows. Clear progress. To remind you, we've also said that our flow trajectory won't be linear, and we're not yet at the point to be able to promise consistent positive flows despite the tangible improvements. As we begin the second half of the year, we need to rebuild our pipeline, which takes time. Our retail flows continue to be negative, especially in EMEA, and there are a few pockets of internal transition that will make us a stronger firm for the long term, but will negatively impact our flows in the near term.

Inflows for the first half of 2023 were $5 billion.

A market improvement from the $14 billion of outflows during the first six months of 2022, let me just say that again last year in <unk>, we were sitting at negative $14 billion in net flows.

Now we are at a positive $5 billion in net flows clear progress.

Ali Dibadj: As we begin the second half of the year, we need to rebuild our pipeline, which takes time. Our retail flows continue to be negative, especially in EMEA, and there are a few pockets of internal transition that will make us a stronger firm for the long term, but will negatively impact our flows in the near term.

To remind you. We've also said that our flow trajectory wont be linear and we're not yet at the point to be able to promise consistent positive flows despite the tangible improvements as.

As we begin the second half of the year, we need to rebuild our pipeline, which takes time, our retail flows continue to be negative, especially in EMEA and there are a few pockets of internal transition that will make us a stronger firm for the long term, but will negatively impact our flows in the near term.

Ali Dibadj: That being said, remember that last year's total annual net flows were negative $31 billion, and we expect to show great improvement from that and believe we're on our way to sustainable organic growth in the future. In particular, we remain encouraged with the momentum and sales activity levels in the business and conversations we're having with clients, given our investments in client service, greater accountability and collaboration, improved selling processes, and investment performance. Given long lead times in this industry, our expectation continues to be that we deliver one or two quarters of positive net flows over the next one to two years as an indication that our strategic plan is taking hold. Turning to investment performance, it is solid in aggregate, with 68% of assets ahead of benchmark on a three-year basis.

Ali Dibadj: In particular, we remain encouraged with the momentum and sales activity levels in the business and conversations we're having with clients, given our investments in client service, greater accountability and collaboration, improved selling processes, and investment performance.

That being said remember that last year's total annual net flows were negative $31 billion and we expect to show great improvement from that and believe we are on our way to sustainable organic growth in the future.

Ali Dibadj: Given long lead times in this industry, our expectation continues to be that we deliver one or two quarters of positive net flows over the next one to two years as an indication that our strategic plan is taking hold. Turning to investment performance, it is solid in aggregate, with 68% of assets ahead of benchmark on a three-year basis.

In particular, we remain encouraged with the momentum in sales activity levels in the business and conversations we're having with clients given our investments in client service greater accountability and collaboration improved selling processes and investment performance.

Given long lead times in this industry, our expectation continues to be that we deliver one or two quarters of positive net flows over the next one to two years as an indication that our strategic plan is taking hold.

Ali Dibadj: The ability of our world-class investment and distribution teams across all our capabilities to deliver differentiated insights, investment discipline, and world-class service positions us well to navigate these uncertain markets and deliver the best possible investment outcomes for our clients and their clients. In summary, we are clearly showing progress on our strategic path to deliver consistent organic growth. There's still much opportunity for improvement. Our financial results are solid. We're generating good cash flow, and we have a strong and stable balance sheet. I'll now turn the call over to Roger to run you through the financial results.

Turning to investment performance. It is solid in aggregate with 68% of assets ahead of benchmark on a three year basis.

The ability of our world class investment and distribution teams across all of our capabilities to deliver differentiated insights investment discipline and world class service positions us well to navigate these uncertain market and deliver the best possible investment outcomes for our clients and their clients.

Ali Dibadj: In summary, we are clearly showing progress on our strategic path to deliver consistent organic growth. There's still much opportunity for improvement. Our financial results are solid. We're generating good cash flow, and we have a strong and stable balance sheet. I'll now turn the call over to Roger to run you through the financial results.

In summary, we are clearly showing progress on our strategic path to deliver consistent organic growth. There is still much opportunity for improvement or financial results are solid we're generating good cash flow and we have a strong and stable balance sheet.

Roger Thompson: Thank you, Ali, and thank you again to everyone for joining us on today's call. Turning to slide 3 and investment performance. Investment performance versus benchmark remains solid, with over 60% of assets beating their respective benchmarks over all time periods. Short-term fixed income performance versus benchmark improved this quarter, and the longer-term time periods remain very strong. Investment performance compared to peers continues to be competitively strong, with 70, 61, 78, and 87% of AUM in the top two Morningstar quartiles over the 1-, 3-, 5-, and 10-year time periods. Slide 4 shows company flows. As Ali mentioned, net outflows were $500 million this quarter. And while we're pleased with year-to-date flows compared to the prior year, our goal is to deliver consistent organic growth over time, and we're not there yet.

I'll now turn the call over to Roger to run you through the financial results.

Thank you Allie and thank you again to everyone for joining us on today's call.

Going to slide three and investment performance.

Roger Thompson: Investment performance compared to peers continues to be competitively strong, with 70, 61, 78, and 87% of AUM in the top two Morningstar quartiles over the 1-, 3-, 5-, and 10-year time periods. Slide 4 shows company flows. As Ali mentioned, net outflows were $500 million this quarter. And while we're pleased with year-to-date flows compared to the prior year, our goal is to deliver consistent organic growth over time, and we're not there yet.

Performance versus benchmark remains solid with over 60% of assets, beating their respective benchmarks over all time periods.

Short term fixed income performance versus benchmark improved this quarter and the longer term time periods remained very strong.

Investment performance compared to peers continues to be competitive to be strong with 70, 61, 78%, 87% of our AUM in the top two Morningstar courthouse over the 135 and 10 year time periods.

Slide four shows company flows.

Roger Thompson: Based on the items that Ali's discussed, we wanted to provide an outlook for Q3 flows. As we sit here today, we expect net outflows in the Q3 to be in the range of negative $3.5 to $5 billion. Turning to slide five for a look at flows by client type. Net outflows for the intermediary channel were $1.6 billion, compared to $700 million in the Q1. The quarterly decline was primarily from the EMEA and LATAM regions, as higher interest rates and recessionary fears are weighing on flows. This is not unique to Janus Henderson, as the industry in general has experienced a challenging flow environment in those regions. US intermediary flows were virtually flat, supported by strong positive flows in several strategies, including the AAA CLO ETF, our mortgage-backed securities ETF, and US Mid-Cap Growth.

As Ali mentioned net outflows were $500 million this quarter.

While we're pleased with year to date flows compared to the prior year. Our goal is to deliver consistent organic growth over time, and we're not there yet.

Based on the items fatalities discussed we wanted to provide an outlook for third quarter flows.

As we sit here today, we expect net outflows in the third quarter to be in the range of negative 3.5 to negative <unk> $5 billion.

Roger Thompson: The quarterly decline was primarily from the EMEA and LATAM regions, as higher interest rates and recessionary fears are weighing on flows. This is not unique to Janus Henderson, as the industry in general has experienced a challenging flow environment in those regions. US intermediary flows were virtually flat, supported by strong positive flows in several strategies, including the AAA CLO ETF, our mortgage-backed securities ETF, and US Mid-Cap Growth.

Turning to slide five for a look at flows by client type.

That's outflows for the intermediary channel $1.6 billion compared to $700 million in the first quarter.

Quarterly decline was primarily from the EMEA and Latam regions at higher interest rates and recessionary fears are weighing on flows.

This is not unique to Janus Henderson as the industry in general has experienced a challenging flow environments in those regions.

U S intermediary flows with virtually flat supported by strong positive flows in several strategies, including the AAA CLO ETF.

Roger Thompson: We've told you before that US intermediary is a key initiative under our protect and grow strategic pillar, and we're pleased that we've shown a significant improvement in net outflows in the first half of 2023 compared to the same period a year ago, and that we are capturing market share. Institutional net inflows were $1.9 billion versus $6.9 billion in the first quarter. Pleasingly, the quarter included a $3 billion enhanced index mandate from a global insurance client, adding to flows in Q1 from sovereigns and other insurers. In addition, in Q2, we had our largest emerging market debt mandate fund to date. We are not anticipating any similar-sized fundings in Q3, in line with our comments on last quarter's call, that our distribution team is working to replenish and build a sustainable pipeline and that this will take time.

We expect security ETF and U S mid cap growth.

We've told you before the U S. Intermediary is a key initiative under off protect and grow strategic pillar.

Roger Thompson: Institutional net inflows were $1.9 billion versus $6.9 billion in the first quarter. Pleasingly, the quarter included a $3 billion enhanced index mandate from a global insurance client, adding to flows in Q1 from sovereigns and other insurers. In addition, in Q2, we had our largest emerging market debt mandate fund to date.

We're pleased that we've showed a significant improvement in net outflows in the first half of 2023 compared to the same period a year ago.

We are capturing market share.

Institutional net inflows of $1.9 billion versus $6 $9 billion in the first quarter.

Pleasingly the quarter includes the $3 billion in hogs to index mandate from a global insurance clients, adding to flows in Q1 from sufferings on other insurers.

Roger Thompson: We are not anticipating any similar-sized fundings in Q3, in line with our comments on last quarter's call, that our distribution team is working to replenish and build a sustainable pipeline and that this will take time. Redemptions were normalized in Q2 after a benign Q1.

In addition in Q2, we had our largest emerging market debt mandate funded to date.

Roger Thompson: Redemptions were normalized in Q2 after a benign Q1. Finally, net outflows for the self-directed channel, which includes direct and supermarket investors, were $800 million. The US direct business is a strategically important pool of assets, and to better deliver for our clients during the second quarter, we started to offer an investment advisory service to our direct investors in the US. This is a service we haven't offered previously and helps us guide our direct clients so that they are better positioned to achieve their desired financial outcomes. Slide 6 is flows in the quarter by capability. Equities flows were break even in the second quarter, compared to net inflows of $3.3 billion in the prior quarter. A good result, considering the challenging environment for active equities.

We're not anticipating any similar sized fundings in Q3, and along with our comments on last quarters call that our distribution team is working to replenish and build a sustainable pipeline.

Roger Thompson: Finally, net outflows for the self-directed channel, which includes direct and supermarket investors, were $800 million. The US direct business is a strategically important pool of assets, and to better deliver for our clients during the second quarter, we started to offer an investment advisory service to our direct investors in the US.

This will take time.

Redemptions with normalized in Q2 after it but no in Q1.

Finally, net outflows for the self directed channel, which includes direct and Sigma to investors what $800 million.

Roger Thompson: This is a service we haven't offered previously and helps us guide our direct clients so that they are better positioned to achieve their desired financial outcomes. Slide 6 is flows in the quarter by capability. Equities flows were break even in the second quarter, compared to net inflows of $3.3 billion in the prior quarter. A good result, considering the challenging environment for active equities.

The U S direct business is a strategically important pool of assets to better deliver for our clients. During the second quarter. We started to offer an investment advisory service talk direct investors in the U S.

Is the service we Havent offered previously and helps US guide our direct clients. So that they are better positioned to achieve their desired financial outcomes.

Slide six it slows in the course by capability.

Roger Thompson: Net inflows for fixed income were $1 billion, compared to $3.6 billion in the prior quarter. We remain encouraged that despite the challenging short- and medium-term investment performance in fixed income, we have differentiated breadth of product that is able to capture flows across multiple channels and regions. Several strategies contributed to positive fixed income flows, including emerging market debt, which had $600 million in net inflows for the quarter and has crossed the $1 billion mark of assets under management. Elsewhere, fixed income ETFs had positive flows of $870 million in the quarter, led by the AAA CLO ETF and our mortgage-backed securities ETF. For the year, our fixed income ETFs have gathered $1.7 billion in inflows, and our ETF AUM has grown to over $7 billion.

Equity flows were breakeven in the second quarter compared to net inflows of $3 $3 billion in the prior quarter.

Good results, considering the challenging environment for active equities.

And that's in place with fixed income with $1 billion compared to $3 $6 billion in the prior quarter.

Roger Thompson: Several strategies contributed to positive fixed income flows, including emerging market debt, which had $600 million in net inflows for the quarter and has crossed the $1 billion mark of assets under management. Elsewhere, fixed income ETFs had positive flows of $870 million in the quarter, led by the AAA CLO ETF and our mortgage-backed securities ETF.

We remain encouraged that despite the challenging short and medium term investment performance in fixed income.

<unk> differentiated breadth of products that is able to capture flows across multiple channels and regions.

Central strategies contributed to positive fixed income flows, including emerging market debt, which has $600 million in net inflows for the quarter and has crossed the $1 billion Mark assets under management.

Roger Thompson: For the year, our fixed income ETFs have gathered $1.7 billion in inflows, and our ETF AUM has grown to over $7 billion. Total net outflows for multi-assets were $700 million, driven by the balanced strategy within the US retail channel. While the net outflow is in part due to short-term underperformance back in 2022, the strategy is currently outperforming versus benchmark and peers across 1-, 3-, 5-, and 10-year time periods.

Elsewhere fixed income Etfs had positive flows of $817 million in the quarter led by the AAA CLO ETF and mortgage backed securities Etfs.

Roger Thompson: Total net outflows for multi-assets were $700 million, driven by the balanced strategy within the US retail channel. While the net outflow is in part due to short-term underperformance back in 2022, the strategy is currently outperforming versus benchmark and peers across 1-, 3-, 5-, and 10-year time periods. Finally, net outflows in the alternatives capability were $800 million, primarily from the multi-strategy and the absolute return strategies in the UK and continental Europe. Moving on to the financials, slide 7 is the US GAAP statement of income, and on slide 8, we explain the adjusted financial results. Adjusted revenue increased 5% compared to the prior quarter, primarily due to increased management fees on higher average AUM, in addition to seasonal performance fees.

For the year, our fixed income Etfs have got at $1.7 billion in inflows and our Etfs AUM has grown to over $7 billion.

Total net outflows for multi assets was $700 million driven by the balanced strategy within the U S retail channel.

Roger Thompson: Finally, net outflows in the alternatives capability were $800 million, primarily from the multi-strategy and the absolute return strategies in the UK and continental Europe. Moving on to the financials, slide 7 is the US GAAP statement of income, and on slide 8, we explain the adjusted financial results.

Whilst the net outflow is impart due to short term underperformance back in 2022.

Our strategy is currently outperforming versus benchmark and peers across 135, and 10 year time periods.

Finally, net outflows in the alternatives capability, where $800 million, primarily from the multi strategy absolute return.

10 strategies in the U K and Continental Europe .

Roger Thompson: Adjusted revenue increased 5% compared to the prior quarter, primarily due to increased management fees on higher average AUM, in addition to seasonal performance fees. Net management fee margin for Q2 was 48.5 basis points, compared to the prior quarter of 49.8. The decline is primarily due to the impact of large institutional mandate fundings during H1 2023.

Moving on to the financials slide seven is the U S. GAAP statement of income and on slide eight we explain the adjusted financial results.

Roger Thompson: Net management fee margin for Q2 was 48.5 basis points, compared to the prior quarter of 49.8. The decline is primarily due to the impact of large institutional mandate fundings during H1 2023. All else equal, we anticipate the net management fee margin to stabilize in Q3. Q2 performance fees were -$6 million and include -$17 million of US mutual fund fees, partially offset by performance fees primarily generated from the European Smaller Companies Investment Trust. As we sit here today, based on our current investment performance, our estimate of aggregate performance fees for the full year remains unchanged towards the lower end of -$35 to -$45 million. This includes roughly -$65 million from US mutual fund performance fees. Clearly, the result will be dependent on future performance.

Adjusted revenue increased 5% compared to the prior quarter.

Similarly, due to increased management fees on higher average AUM in addition to seasonal performance fees.

Net management fee margin for the second quarter was 48 five basis points compared to the prior quarter of 49.8.

Roger Thompson: All else equal, we anticipate the net management fee margin to stabilize in Q3. Q2 performance fees were -$6 million and include -$17 million of US mutual fund fees, partially offset by performance fees primarily generated from the European Smaller Companies Investment Trust.

The decline is primarily due to the impact of large institutional mandate fundings during the first half of 2023.

All else equal we anticipate the net management fee margin to stabilize in the third quarter.

Roger Thompson: As we sit here today, based on our current investment performance, our estimate of aggregate performance fees for the full year remains unchanged towards the lower end of -$35 to -$45 million. This includes roughly -$65 million from US mutual fund performance fees. Clearly, the result will be dependent on future performance.

Second quarter performance fees were negative $6 million.

And include negative $17 million, if U S. Mutual fund fees, partially offset by performance fees, primarily generated from the European solar companies investment Trust.

As we sit here today based on our current investment performance, our estimates of aggregate performance fees for the full year remains unchanged towards the lower end of negative 35 to negative $45 million.

Roger Thompson: Continuing on to expenses. Adjusted operating expenses in Q2 were $280 million, up 1% from the prior quarter. Adjusted employee compensation, which includes fixed and variable costs, was up 5% compared to the prior quarter, primarily due to higher variable cost accrual. Adjusted LTI was down 30% compared to the prior quarter, largely due to seasonal payroll taxes triggered by annual vestings in the prior quarter. In the appendix, we've provided the usual table on the expected future amortization of existing grants for you to use in your models. The Q2 adjusted comp to revenue ratio was 45.6%, in line with expectations. Adjusted non-comp operating expenses increased 13%, again, in line with expectations compared to the prior quarter, primarily due to higher G&A and marketing expenses.

This includes roughly negative $65 million from U S Mutual fund performance fees.

Clearly the result will be dependent on future performance.

Continuing onto expenses.

Adjusted operating expenses in the second quarter.

With $219 million up 1% from the prior quarter.

Adjusted employee compensation, which includes fixed and variable costs was up 5% compared to the prior quarter, primarily due to higher variable cost accrual.

Roger Thompson: In the appendix, we've provided the usual table on the expected future amortization of existing grants for you to use in your models. The Q2 adjusted comp to revenue ratio was 45.6%, in line with expectations. Adjusted non-comp operating expenses increased 13%, again, in line with expectations compared to the prior quarter, primarily due to higher G&A and marketing expenses.

Adjusted LTI was down 30% compared to the prior quarter largely due to seasonal payroll taxes tripled biannual vesting in the prior quarter.

In the appendix, we've provided the usual table on the expected future amortization of existing grants speak to use in your models.

Yeah.

The second quarter adjusted comp to revenue ratio was 45, 6% inline with expectations.

Roger Thompson: Adjusted operating income increased 15% over the prior quarter to $121.5 million in Q2. Second quarter adjusted operating margin was 30.2%. Finally, adjusted diluted EPS was $0.62. Updating on our expectations for full year 2023 operating expenses. We continue to be disciplined on costs and are always looking for ways to operate more efficiently. We now expect to deliver at least to the high end of the $40 to 45 million in previously communicated cost saves, to provide fuel for growth, to strategically and reinvest back into the business. Our compensation and non-comp guidance remains unchanged. We expect our adjusted compensation ratios to be in the mid-40s.

Adjusted non comp operating expenses increased 13% again in line with expectations compared to the prior quarter, primarily due to higher G&A and marketing expenses.

Adjusted operating income increased 15% over the prior quarter to $121 5 million in Q2.

Second quarter adjusted operating margin was 32%.

Finally, adjusted diluted EPS was <unk> 62 cents.

Roger Thompson: We now expect to deliver at least to the high end of the $40 to 45 million in previously communicated cost saves, to provide fuel for growth, to strategically and reinvest back into the business. Our compensation and non-comp guidance remains unchanged. We expect our adjusted compensation ratios to be in the mid-40s.

Updating on our expectations for full year 2023 operating expenses.

We continue to be disciplined on costs and are always looking for ways to operate more efficiently.

We now expect to deliver at least to the high end of the $40 million to $45 million in previously communicated cost saves to provide fuel for growth to strategically reinvest back into the business.

Roger Thompson: We expect adjusted non-compensation expense percentage growth of mid to high single digits compared to the prior year, which implies an acceleration in our non-compensation costs for the second half of the year as we continue to execute on our strategy. This will include our previously mentioned brand campaign, increased but very disciplined T&E expenses, and the amortization of capitalized costs associated with our OMST project, which just began following the successful go live of this important project in June. Skipping over slide 9 and moving to slide 10 and a look at our liquidity. Our balance sheet remains very strong. Cash and cash equivalents were $966 million as of 30 June, an increase of approximately $137 million, resulting primarily from strong cash flow generation, partially offset by capital return and strategic spend.

Our compensation and non comp guidance remains unchanged.

We expect our adjusted compensation ratio to be in the mid Forty's.

Roger Thompson: This will include our previously mentioned brand campaign, increased but very disciplined T&E expenses, and the amortization of capitalized costs associated with our OMST project, which just began following the successful go live of this important project in June. Skipping over slide 9 and moving to slide 10 and a look at our liquidity.

We expect adjusted non compensation expense percentage growth of mid to high single digits compared to the prior year, which implies an acceleration in our non compensation costs for the second half of the year as we continue to execute on our strategy.

This will include a previously mentioned brand campaign increased but very disciplined TNA expenses and the amortization of capitalized costs associated with all O M. S. T project, which just began following the successful go live of this important project in June .

Roger Thompson: Our balance sheet remains very strong. Cash and cash equivalents were $966 million as of 30 June, an increase of approximately $137 million, resulting primarily from strong cash flow generation, partially offset by capital return and strategic spend. We've maintained a strong liquidity position, and we continue to balance the capital needs and the investment opportunities of the business with returning capital to shareholders.

Yeah.

Skipping over to slide nine and moving to slide 10, I don't look at our liquidity.

Our balance sheet remains very strong.

Cash and cash equivalents were $966 million as of the 13th of June an increase of approximately $137 million, resulting primarily from strong cash flow generation, partially offset by capital return and strategic spend.

Roger Thompson: We've maintained a strong liquidity position, and we continue to balance the capital needs and the investment opportunities of the business with returning capital to shareholders. As I stated on last quarter's call, given the opportunities we see in investing in the business organically and inorganically, we do not anticipate buying back shares at this time. We'll continue to return cash to shareholders through a strong quarterly dividend, and the board has declared a $0.39 per share dividend to be paid on 30 August to shareholders of record as at 14 August. With that, I'd like to turn it back over to Ali to give an update on our strategic progress.

Roger Thompson: As I stated on last quarter's call, given the opportunities we see in investing in the business organically and inorganically, we do not anticipate buying back shares at this time. We'll continue to return cash to shareholders through a strong quarterly dividend, and the board has declared a $0.39 per share dividend to be paid on 30 August to shareholders of record as at 14 August. With that, I'd like to turn it back over to Ali to give an update on our strategic progress.

We've maintained a strong liquidity position and we continue to balance the capital needs and the investment opportunities that the business with returning capital to shareholders.

As I stated on last quarters call given the opportunities we see in investing in the business organically and Inorganically, we do not anticipate buying back shares at this time.

We will continue to return cash to shareholders through a strong quarterly dividend.

Ali Dibadj: Thanks, Roger. Turning to slide 11, a reminder of our three strategic pillars of protect and grow our core businesses, amplify our strengths not fully leveraged, and diversify where clients give us the right to win. We are in the execution phase, and we believe this strategic vision will lead to consistent organic revenue growth over time. In protect and grow, we've talked previously about the importance of protecting and growing our US intermediary business and have been investing in and supporting this channel. We've appointed a new head of North America Client Group, launched a national brand campaign, selectively upgraded talent, aligned org structure and compensation with the growth strategy, and increased wholesaler client engagement. Progress has been tangible.

The board has declared a 39 cents per share dividend to be paid on the 13th of August to shareholders of record as of the 14th of August .

I'd like to turn it back over to Ali to give an update on our strategic progress.

Thanks Roger.

Turning to slide 11, and a reminder of our three strategic pillar of protect and grow our businesses amplify our strengths not fully leverage and diversify where clients give us the right to win we are in the execution phase and we believe this strategic vision will lead to consistent organic revenue growth over time.

Ali Dibadj: In protect and grow, we've talked previously about the importance of protecting and growing our US intermediary business and have been investing in and supporting this channel. We've appointed a new head of North America Client Group, launched a national brand campaign, selectively upgraded talent, aligned org structure and compensation with the growth strategy, and increased wholesaler client engagement. Progress has been tangible.

And protecting grow we've talked previously about the importance of protecting and growing our U S intermediary business and have been investing in and supporting this channel.

Ali Dibadj: Significantly improved net positive flows into our advisor group is pleasing to see and has been offset by negative flows in the typically lumpy retirement channel, resulting in an overall -1% annualized organic growth rate for the first half of 2023. That is strong progress compared to a -6% organic rate for all of 2022. As Roger mentioned, importantly, we are capturing market share in this channel. Under Amplify, we've previously talked about our institutional and diversified alternative businesses. For the institutional business, which is almost $9 billion of positive flows year to date, we've restructured coverage to be more aligned to different client types, helping us to better serve their needs through greater specialization. We've made many new appointments and other professionals are joining in the coming months.

We've appointed a new head of North American client group, Washington National brand campaign selectively upgrade of talent aligned org structure and compensation with the growth strategy and increased wholesaler client engagement.

<unk> has been tangible significantly improved net positive flows into our advisor group is pleasing to see that has been offset by negative flows in the typically lumpy retirement channel, resulting in an overall negative 1% annualized organic growth rate for the first half of 2023, and a strong progress compared to negative 6% organic rate for all of 2022.

Ali Dibadj: Under Amplify, we've previously talked about our institutional and diversified alternative businesses. For the institutional business, which is almost $9 billion of positive flows year to date, we've restructured coverage to be more aligned to different client types, helping us to better serve their needs through greater specialization. We've made many new appointments and other professionals are joining in the coming months.

Two.

As Roger mentioned importantly, we're capturing market share in this channel.

Under amplify.

He talked about our institutional and diversified alternatives businesses.

In the institutional business, which is almost $9 billion of positive flows year to date, we've restructured coverage to be more aligned to different client types, helping us to better serve their needs through greater specialization. We've made many new appointment and other professionals are joining in the coming months.

Ali Dibadj: Diversified Alternatives, which includes multi-strategy hedge funds and enhanced index funds, has experienced 35% growth in AUM in the first six months of 2023. We also continue to launch new products and vehicles based on what our clients are telling us. For example, in 2023, we've established a Global Property Equity Fund in an OEIC, the Sustainable Credit Active ETF in Australia, additional SMA strategies in the US, and an Emerging Markets Innovation Fund in a SICAV. Under our diversified pillar, our emerging market debt team, which we brought in last September, now manages $1.2 billion in AUM after starting at 0 less than a year ago. Finally, we continue to look actively to buy, build, or partner to diversify where clients give us the right to win.

Diversified alternatives, which includes multi strategy hedge funds and enhanced index funds and experienced 35% growth in AUM in the first six months of 2023.

Ali Dibadj: For example, in 2023, we've established a Global Property Equity Fund in an OEIC, the Sustainable Credit Active ETF in Australia, additional SMA strategies in the US, and an Emerging Markets Innovation Fund in a SICAV. Under our diversified pillar, our emerging market debt team, which we brought in last September, now manages $1.2 billion in AUM after starting at 0 less than a year ago.

We also continue to launch new products and vehicles based on what our clients are telling us.

For example in 2003, we've established a global property equities bonds and in the.

The sustainable credit active ETF in Australia, additional SMA strategies in the U S and in emerging markets Innovation fund and a C cap.

Ali Dibadj: Finally, we continue to look actively to buy, build, or partner to diversify where clients give us the right to win. As an example, we announced a joint venture, Privacore, that looks to take advantage of the democratization of private alternatives into the retail channel. Moving to slide 12 for more background on Privacore.

Under our diversified pillar.

Our emerging markets debt team, which we brought in last September now manages $1 2 billion in.

Ali Dibadj: As an example, we announced a joint venture, Privacore, that looks to take advantage of the democratization of private alternatives into the retail channel. Moving to slide 12 for more background on Privacore. In June, we announced a new joint venture with Privacore, which is an open architecture distributor and trusted advisor for alternative investment products tailored to private wealth clients in the US, and aligns with our strategic ambitions to diversify and grow our business. Privacore taps into the fast-growing market with a strong leadership team in a strategically important segment of the industry where Janus Henderson's clients have asked for help. The initiative positions Janus Henderson to grow with our clients and further strengthens our credibility as a future partner in strategic M&A in private and alternative asset classes of focus for our firm.

After starting at zero less than a year ago.

Finally, we continue to look actively to buy build or partner to diversify where clients give us the right to win.

Ali Dibadj: In June, we announced a new joint venture with Privacore, which is an open architecture distributor and trusted advisor for alternative investment products tailored to private wealth clients in the US, and aligns with our strategic ambitions to diversify and grow our business.

As an example, we announced a joint venture protocol that looks to take advantage of the democratization of private alternatives into the retail channel.

Moving to slide 12 for more background on <unk>.

In June we announced a new joint venture with protocol, which is an open architecture distributor and trusted advisor for alternative investment products tailored to private wealth clients in the U S that aligns with our strategic ambitions to diversify and grow our business.

Ali Dibadj: Privacore taps into the fast-growing market with a strong leadership team in a strategically important segment of the industry where Janus Henderson's clients have asked for help. The initiative positions Janus Henderson to grow with our clients and further strengthens our credibility as a future partner in strategic M&A in private and alternative asset classes of focus for our firm.

<unk> taps into the fast growing market with a strong leadership team and a strategically important segment of the industry, where Janus Henderson clients have asked for help.

Ali Dibadj: Very importantly, it allows us to do all this without distracting any part of our firm from our core businesses. We recognize that the democratization of alternatives among private wealth clients is still in the early stages, and this trend represents a significant opportunity for firms with strong relationships with retail intermediaries, like we have at Janus Henderson, to provide a broader range of alternative investment solutions for clients. Alternatives as a category represents a $12 trillion market today, with assets expected to roughly double in size over the next five years. High net worth investors command $80 trillion of assets globally and are expected to account for much of the growth in private markets. We expect that Privacore, with Janus Henderson, will play an integral role in bridging the gap between managers of alternative assets and end investors....

Chip this is Dan with Henderson to grow with our clients and further strengthens our credibility as a future partner strategic M&A in private and alternative asset classes, our focus for our firm.

Very importantly, it allows us to do all of this without distracting any part of our firm from our core businesses.

We recognize that the democratization of alternatives among private wealth client is still in the early stages and this trend represents a significant opportunity for firms with strong relationships with retail intermediaries like we have a Kansas Henderson to provide a broader range of alternative investment solutions for clients.

Ali Dibadj: Alternatives as a category represents a $12 trillion market today, with assets expected to roughly double in size over the next five years. High net worth investors command $80 trillion of assets globally and are expected to account for much of the growth in private markets.

Alternatives as a category represents a 12 trillion dollar market today with assets expected to roughly double in size over the next five years.

Ali Dibadj: We expect that Privacore, with Janus Henderson, will play an integral role in bridging the gap between managers of alternative assets and end investors through diligence, investor education, portfolio construction, and client service across private equity, debt, real estate, infrastructure, and other non-traditional asset classes.

Worth investors command 80 trillion dollars of assets globally are expected to account for much of the growth in private markets. We expect that protocol with Kansas Henderson will play an integral role in bridging the gap between managers of alternative assets and and investors through diligence investor education workflow construction and client service across private equity.

Ali Dibadj: through diligence, investor education, portfolio construction, and client service across private equity, debt, real estate, infrastructure, and other non-traditional asset classes. Privacore's mission: to partner with the best-in-class managers of alternative investments, paired with extensive relationships at wirehouses, broker-dealers, and RIAs, creates value on both ends of the value chain, accelerating GP fundraising and bringing differentiated institutional quality investment opportunities to set of clients that are notably under-allocated to alternatives today. This partnership seeks to provide access to best-in-class, largely private alternative investments, managed by both third-party investment managers and with Janus Henderson's proprietary alternative capabilities, where we have the right to win. Privacore is led by two principals, Brendan Boyle and Bill Cashel, a pair of industry veterans, each with proven track records of building dynamic, alternative-focused businesses.

Ali Dibadj: Privacore's mission: to partner with the best-in-class managers of alternative investments, paired with extensive relationships at wirehouses, broker-dealers, and RIAs, creates value on both ends of the value chain, accelerating GP fundraising and bringing differentiated institutional quality investment opportunities to set of clients that are notably under-allocated to alternatives today.

<unk> real estate infrastructure and other non traditional asset classes.

Greg of course mission to partner with the best in class managers alternative investments paired with extensive relationships at wire houses broker dealers and are a great value on both ends of the value chain accelerating G. P fund, raising and bringing differentiated institutional quality investment opportunities set of clients, there, notably under allocated to alternative.

Ali Dibadj: This partnership seeks to provide access to best-in-class, largely private alternative investments, managed by both third-party investment managers and with Janus Henderson's proprietary alternative capabilities, where we have the right to win. Privacore is led by two principals, Brendan Boyle and Bill Cashel, a pair of industry veterans, each with proven track records of building dynamic, alternative-focused businesses.

Today.

This partnership seeks to provide access to best in class largely private alternative investments managed by both third party investment managers and with Janus Henderson is proprietary alternative capabilities, where we have the right to win.

Ali Dibadj: Brendan and Bill are truly the best in the business, and Janus Henderson's robust heritage, combined with this new entrepreneurial team, demonstrates our commitment to ensuring our clients come first, always. Turning now to slide 13, for a reminder of a few of the things each and every person at Janus Henderson has pulled together to accomplish over the past year. We've made a significant amount of positive change in just a few short months that are showing tangible progress and is setting us up for the long-term success of the firm, despite some volatility in the short term. Reflecting my first impressions from last summer, there was and continues to be a strong foundation in place at Janus Henderson. There are very talented people who want to win.

First quarters led by two principles, Brendan Boylan, Bill casual apparel industry veterans with proven track records of building dynamic alternatives focused businesses Brendan.

Brendan and Bill are truly the best in the business.

Janus Henderson has robust heritage combined with this new entrepreneurial team demonstrate our commitment to ensuring our clients come first always.

Ali Dibadj: We've made a significant amount of positive change in just a few short months that are showing tangible progress and is setting us up for the long-term success of the firm, despite some volatility in the short term. Reflecting my first impressions from last summer, there was and continues to be a strong foundation in place at Janus Henderson. There are very talented people who want to win.

Turning now to slide 13 for a reminder of a few of the things each and every person at Janus Henderson has pulled together to accomplish over the past year.

We've made a significant amount of positive change in just a few short months theyre showing tangible progress and is setting us up for long term success of the firm. Despite some volatility in the short term.

Ali Dibadj: We are an investment powerhouse with world-class client focus, with global corporate functions and infrastructure, and underpinning all these attributes is a strong financial position, including a fortress balance sheet. We leverage this strong foundation through a new strategy and focused execution with increased collaboration, accountability, and urgency, with the intent of repositioning Janus Henderson to meet our clients' and their clients' needs, and thus for our future growth. Established the strategic leadership team that created and is now executing on our new strategic plan. We have seven new board members, including a new board chair, and their exceptional breadth and depth of experience will be critical in leading Janus Henderson. We've created fuel for growth to reinvest in Janus Henderson's strategic growth initiatives on behalf of the client.

Reflecting my first impressions from last summer there was and continues to be a strong foundation in place of Janus Henderson.

Very talented people, who want to win we are an investment powerhouse with world class client focus with global corporate functions infrastructure and underpinning all of these attributes is a strong financial position, including a fortress balance sheet.

Ali Dibadj: We leverage this strong foundation through a new strategy and focused execution with increased collaboration, accountability, and urgency, with the intent of repositioning Janus Henderson to meet our clients' and their clients' needs, and thus for our future growth. Established the strategic leadership team that created and is now executing on our new strategic plan.

We leveraged this strong foundation through new strategy and focused execution with increased collaboration accountability and urgency with the intent of repositioning Janus Henderson to meet our clients and their clients need and thus for our future growth.

Ali Dibadj: We have seven new board members, including a new board chair, and their exceptional breadth and depth of experience will be critical in leading Janus Henderson. We've created fuel for growth to reinvest in Janus Henderson's strategic growth initiatives on behalf of the client.

Established the strategic leadership team that created and is now executing on our new strategic plan.

Ali Dibadj: The operating model has been upgraded and simplified, including the order management system transformation project that went live smoothly in Q2. This multi-year effort is a monumental step forward in our technology evolution and will help our clients and their clients achieve superior financial outcomes. And finally, we've added talent and promoted from within across the firm while removing layers within the organization. Attracting and retaining the best talent enables us to deliver for clients and execute our strategy over the long term. Notably, of the talent coming in, many are high-caliber former employees who've taken notice of the positive changes happening at Janus Henderson, see the great opportunity at hand, and want to come back and be a part of it. Net, net, we have a solid foundation, the core team is nearly fully in place, and our plan is in motion.

Seven new board members, including a newborn care and their exceptional breadth and depth of experience will be critical and leaving Janus Henderson.

We've created fuel for growth to reinvest in Janus Henderson strategic growth initiatives on behalf of the client.

The operating model has been upgraded in a simplified including the order management system transformation project that went live smoothly in the second quarter.

This multiyear effort is a monumental step forward in our technology evolution will help our clients and their clients achieve superior financial outcomes.

Ali Dibadj: Attracting and retaining the best talent enables us to deliver for clients and execute our strategy over the long term. Notably, of the talent coming in, many are high-caliber former employees who've taken notice of the positive changes happening at Janus Henderson, see the great opportunity at hand, and want to come back and be a part of it.

And finally, we've added talent and promoted from within across the firm, while removing layers within the organization.

<unk> and retaining the best talent enables us to deliver for clients and execute our strategy over the long term.

Ali Dibadj: Net, net, we have a solid foundation, the core team is nearly fully in place, and our plan is in motion. The element about our team or people is so key, given we want an enduring culture of performance built upon our stable and client-focused processes at Janus Henderson, and we are well on our way.

Notably other talent coming in many are high caliber former employees, who have taken notice of the positive changes happening at Janus Henderson, either great opportunity at hand, and want to come back and be a part of it.

Ali Dibadj: The element about our team or people is so key, given we want an enduring culture of performance built upon our stable and client-focused processes at Janus Henderson, and we are well on our way. Moving to slide 14, which shows how we are enhancing our culture through our company-wide mission, values, and purpose, or MVP. I'm a firm believer that a strong MVP is essential to the success of a company. Research shows that firms with a clearly defined MVP are more successful in the long term and generate better returns than those companies that don't. We introduced our MVP earlier this year to define who we are and what we stand for as a collection of individuals and a firm, not just for today, but what we want to be in the future. It gives us a clear North Star.

Net net we have a solid foundation.

<unk> is nearly fully in place and our plan is in motion.

Ali Dibadj: Moving to slide 14, which shows how we are enhancing our culture through our company-wide mission, values, and purpose, or MVP. I'm a firm believer that a strong MVP is essential to the success of a company. Research shows that firms with a clearly defined MVP are more successful in the long term and generate better returns than those companies that don't.

The element about our team our people is so key given we want an enduring culture performance builds upon our stable and client focused processes of Janus Henderson and we are well on our way.

Slide 14 shows how we are enhancing our culture through a companywide mission values and purpose or MVP.

Ali Dibadj: We introduced our MVP earlier this year to define who we are and what we stand for as a collection of individuals and a firm, not just for today, but what we want to be in the future. It gives us a clear North Star. Importantly, we developed our MVP, much like we did our strategy, inclusively and from the bottom up, as opposed to top down, a truly crowdsourced and thus bought-in articulation and aspiration.

I'm a firm believer that a strong MVP is essential to the success of our company.

So that firms with a clearly defined MVP are more successful in the long term and generate better returns than those companies that don't.

Ali Dibadj: Importantly, we developed our MVP, much like we did our strategy, inclusively and from the bottom up, as opposed to top down, a truly crowdsourced and thus bought-in articulation and aspiration. The feedback internally has been overwhelmingly positive. I've been extremely encouraged by how quickly colleagues have embedded our mission, values, and purpose into their daily work. Our MVP, coupled with our strategy on a foundation of creating fuel for growth, guides our decision-making and prioritization and allows all colleagues to move together in the same direction to help us win in this competitive landscape. Wrapping up on slide 15, I'm proud of the progress made this quarter, building on the progress of past quarters. Net flows are positive $5 billion year to date.

We introduced our MVP earlier this year to define who we are and what we stand for as a collection of individuals and a firm not just for today, but what we want to be in the future. It gives us a clear north star <unk>.

Ali Dibadj: The feedback internally has been overwhelmingly positive. I've been extremely encouraged by how quickly colleagues have embedded our mission, values, and purpose into their daily work.

Importantly, we developed our MVP much like we did our strategy inclusively and from the bottom up as opposed to top down a truly crowdsource and that's bought in articulation and aspiration.

Ali Dibadj: Our MVP, coupled with our strategy on a foundation of creating fuel for growth, guides our decision-making and prioritization and allows all colleagues to move together in the same direction to help us win in this competitive landscape. Wrapping up on slide 15, I'm proud of the progress made this quarter, building on the progress of past quarters.

Feedback internally has been overwhelmingly positive and I have been extremely encouraged by how quickly colleagues have embedded our mission values and purpose into their daily work.

Our NDP, coupled with our strategy on a foundation of creating fuel for growth guide our decision, making and prioritization and allows all colleagues to move together in the same direction to help us win in this competitive landscape.

Ali Dibadj: Net flows are positive $5 billion year to date. Investment performance is solid, financial results are good, and we continue to execute on our strategy, including providing more fuel for growth to reinvest back in the business.

Ali Dibadj: Investment performance is solid, financial results are good, and we continue to execute on our strategy, including providing more fuel for growth to reinvest back in the business. Success will not happen overnight, and progress will not be linear, particularly as we rebuild our institutional pipeline, retail flows remain negative, and we go through pockets of transition over the next few quarters, which, when taken in aggregate, will lead to negative flows in at least Q3. Even so, 2023 flows are set to be significantly improved versus 2022. We are in the early stages of executing our strategic plan, and as we have shown, progress is starting to bear fruit. We believe our strategy will lead to organic revenue growth over time.

Wrapping up on slide 15, I'm proud of the progress made this quarter building on the progress of the past quarters.

Ali Dibadj: Success will not happen overnight, and progress will not be linear, particularly as we rebuild our institutional pipeline, retail flows remain negative, and we go through pockets of transition over the next few quarters, which, when taken in aggregate, will lead to negative flows in at least Q3. Even so, 2023 flows are set to be significantly improved versus 2022.

Net flows are positive $5 billion year to date.

<unk> performance is solid financial results are good and we continue to execute on our strategy, including providing more fuel for growth to reinvest back in the business.

This will not happen overnight and progress will not be linear, particularly as we rebuild our institutional pipeline retail flows remain negative let me go through pockets of transition over the next few quarters, which when taken in aggregate will lead to negative flows in at least the third quarter. Even so 2023 flows are set to be significantly improved versus 2022.

Ali Dibadj: We are in the early stages of executing our strategic plan, and as we have shown, progress is starting to bear fruit. We believe our strategy will lead to organic revenue growth over time. Our focus continues to be helping clients define and achieve superior financial outcomes and to deliver desired results for our clients, shareholders, employees, and all our other stakeholders. Let me turn the call back over to the operator for your questions.

Ali Dibadj: Our focus continues to be helping clients define and achieve superior financial outcomes and to deliver desired results for our clients, shareholders, employees, and all our other stakeholders. Let me turn the call back over to the operator for your questions.

In the early stages of executing our strategic plan and as we have shown progress is starting to bear fruit.

We believe our strategy will lead to organic revenue growth over time, our focus continues to be helping clients define and achieve superior financial outcome and to deliver desired results for our clients shareholders employees and all our other stakeholders.

Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your line is unmuted locally.

Let me turn the call back over to the operator for your questions.

Thank you if you'd like to ask a question. Please press star followed by one on your telephone keypad now if you change your mind. Please press star felt bacci.

Roger Thompson: ... Our first question comes from Ken Worthington from J.P. Morgan. Ken, your line is now open. Please go ahead.

When preparing to ask your question TC saw your line is on mute locally.

Ken Worthington: Hi, good morning. Thanks for taking the question. In the relationship with Privacore, what are the Janus alternative products that seem best positioned to succeed with this relationship? I think you mentioned that Privacore is really a US-focused distribution strategy or platform, but I also think your biggest alternative products, like absolute return, are sort of registered in Europe. So what existing products seem better positioned to sell well on this platform, and how much assets do those products have today? And will you be developing new alternative products to kind of maximize this relationship?

Okay.

Our first question comes from Ken Worthington from J P. Morgan can you line is now open. Please go ahead.

Go ahead.

Hi, good morning, Thanks for taking the question.

In the relationship with private core what are the Janus alternative products. It seemed best position to succeed with this relationship I think you mentioned that private core is really a U S focused distribution strategy or platform, but I also think your biggest alternative products like absolute return.

Ken Worthington: So what existing products seem better positioned to sell well on this platform, and how much assets do those products have today? And will you be developing new alternative products to kind of maximize this relationship?

Registered in Europe , so what existing products seemed better positioned to sell well on this platform.

Ali Dibadj: Hey, Ken. Thanks very much for the question. So, well, first off, we're, we're very enthusiastic about the potential of Privacore. We, we firmly believe in the democratization of private alternatives and, and the broader democratization of sophisticated investment products. And, and we certainly believe that this is gonna be a, a very exciting way that Janus Henderson can participate in with our joint venture, with Privacore. Because it does serve, and this will start to answer your question, Privacore does serve to deliver on both ends of the value chain. A set of clients who have told us that they want more access to alternative investment capabilities, but, but perhaps don't have the ability to have client service, from those alternative capability, managers.

How much assets to those products have today and will you be developing new alternative products.

To kind of maximize this relationship.

Hey, Ken Thanks, very much for the question so.

Well first off we're very enthusiastic about the potential of <unk>.

We firmly believe in the democratization of private alternatives and broader democratization of sophisticated investment products and we certainly believe that this is going to be a very exciting way that Genesis Henderson can participate in with our joint venture with protocol.

Ali Dibadj: Because it does serve, and this will start to answer your question, Privacore does serve to deliver on both ends of the value chain. A set of clients who have told us that they want more access to alternative investment capabilities, but, but perhaps don't have the ability to have client service, from those alternative capability, managers.

It does serve and it will start to answer your question <unk> does serve to deliver on both ends of the value chain.

Clients, who have told us that they want more access to alternative investment capabilities.

Ali Dibadj: On the flip side, the GPs, the actual investment managers, want to get access to private wealth, given that, you know, $80 trillion of wealth is sitting there, and that a lot of allocations are lower relative to where they should be from a broader alternative perspective. So the investors want to get access there, but they don't have the scale to develop the client service that the clients need. So Privacore sits right in the middle and answers both of those questions, answers both of those needs. And, you know, coupled with the Janus Henderson brand and our ability to reach out to the retail channel, starting in the US, we think it's gonna be a really interesting and exciting opportunity for us to deliver for our clients and for our shareholders.

But perhaps don't have the ability to have client service from those alternatives capability managers on the flip side. The GPS the actual investment managers want to get access to private wealth given that 80.

$82 million.

Wealth is sitting there and that a lot of allocations are lower relative to where they should be from broader alternative perspective, and so that the investors want to get access there, but they don't have the scale to develop our client service that the client need.

Ali Dibadj: So Privacore sits right in the middle and answers both of those questions, answers both of those needs. And, you know, coupled with the Janus Henderson brand and our ability to reach out to the retail channel, starting in the US, we think it's gonna be a really interesting and exciting opportunity for us to deliver for our clients and for our shareholders.

Ali Dibadj: So that's, that's the broad view. Now, to your question, very specifically, Privacore is an open architecture platform. Its point, its value proposition is not just the client service part, but it's also selecting the best-in-class alternative asset managers, then deliver that to the client base that is in great need of access there. We may have products currently. You're exactly right. If there's anything that's closest, it'll be in our liquid alternatives businesses. But right now, we don't have necessarily the right products to bring to Privacore, which is why it's open architecture. Which is why the team of Privacore has the great experience that it has in selecting the best alternative managers out there to deliver to the clients.

Ali Dibadj: You're exactly right. If there's anything that's closest, it'll be in our liquid alternatives businesses. But right now, we don't have necessarily the right products to bring to Privacore, which is why it's open architecture. Which is why the team of Privacore has the great experience that it has in selecting the best alternative managers out there to deliver to the clients.

Ali Dibadj: Over time, could we have more capabilities that we can bring to clients via Privacore? To your second part of your question, absolutely. That's part of the plan, and in fact, having a relationship with Privacore legitimizes us even further for potential M&A down the line in the liquid alternatives, and illiquid alternatives area. Thanks for the question, Ken.

Okay. The best Ultra managers out there to deliver to the clients over time could we have more capabilities that we can bring to clients via <unk> to your second part of your question absolutely. That's part of the plan and in fact, having a relationship <unk> legitimizes up even further for potential M&A down the line and.

Ken Worthington: Okay. Yep, understood. Maybe as a follow-up, outflows for Q3 you mentioned EMEA. Any rationale for the redemption or redemptions? And can you, can you compare the fee rate to the assets being lost versus the fee rate in the larger mandates that you've been winning in recent quarters?

The look at alternatives and Uhm illiquid alternatives area.

Thanks for the question.

Okay.

Understood maybe it's a follow up uhm outflows for three Q you mentioned to me any rationale for the redemption of redemptions and can you can you compare the fee right to the assets being los versus the fee right in the larger mandates that you've been winning in recent quarters.

Ali Dibadj: So let me start and then pass it over to Roger to feed you the context. So look, in our guidance for Q3, you'll see it's a little bit different than consensus, not massively. We just want to make sure a few things. One is that people don't just project forward the past couple quarters of our delivery here on net flows into Q3 and beyond. We said it won't be linear. We've also mentioned last quarter and this quarter, that we have to replenish the pipeline. We've certainly talked about intermediary being challenging. That's especially an EMEA comment for us, particularly in an environment where rates in that market are quite high. There's a lot of uncertainty about the economic outlook.

So let me start and then pass it over to Roger just to give you the context.

<unk> in our guidance for Q3, you'll see it's a little bit different the consensus not massively. We just wanted to make sure of two things. One is that people don't just project for the past couple of quarters.

Ali Dibadj: We said it won't be linear. We've also mentioned last quarter and this quarter, that we have to replenish the pipeline. We've certainly talked about intermediary being challenging. That's especially an EMEA comment for us, particularly in an environment where rates in that market are quite high.

Of our delivery here on on on <unk>, three and beyond we set it won't be linear we'd also mentioned last quarter and this quarter to that we have to replenish the pipeline, we certainly talked about an intermediary being challenging that's especially in email comments for us, particularly in an environment where <unk>.

Ali Dibadj: There's a lot of uncertainty about the economic outlook. EMEA intermediary seems to be pulling back a little bit, and also we're going through some transitions that are internal in nature that will make us a better firm for the longer term. What I would say, though, is that we continue to see our market share look better and better versus peers.

Ali Dibadj: EMEA intermediary seems to be pulling back a little bit, and also we're going through some transitions that are internal in nature that will make us a better firm for the longer term. What I would say, though, is that we continue to see our market share look better and better versus peers. If you take a step back for the year, we certainly expect significant improvement versus 2022 numbers, despite what we expect to be outflow in Q3. Let me hand it over to Roger for more comments there or broader on the fee rate.

Market are quite high there's a lot of uncertainty about the economic outlook email intermediary seems to be pulling back a little bit and also we're going through some some transitions that our internal in nature that will make us a better firm for the longer term uhm, what I would say, though is that we continue to see our market share look better and better versus.

Ali Dibadj: If you take a step back for the year, we certainly expect significant improvement versus 2022 numbers, despite what we expect to be outflow in Q3. Let me hand it over to Roger for more comments there or broader on the fee rate.

Peers, and if you take a step back for the year, we certainly expect significant improvement versus 2022 numbers. Despite what we expect to be outflow in Q3 now let me, let me hand, it over to Roger for more comments, there or brought on the file.

Roger Thompson: Yeah, sure. Hi, Ken. Yeah, I mean, remember that last quarter, we told you that in the near term, our success in institutional would impact the fee rate because we were winning with those large sovereigns and insurance clients. But over time, we'd anticipate a stable fee margin as we execute the strategy. And importantly, we're not discounting business in order to win. I think when I look at our 10 largest strategies, our inflows and our outflows are actually at almost identical management fee levels. So it's not a pricing story. It's around where the inflows have been, and in the first half of the year, we've been really pleased to see those sizable inflows in institutional. But we'd expect...

Yeah sure I can yeah, I mean remember that last quarter. We told you that in the near term off excess at institutional would impact the fee right. Because we were winning with those large <unk> insurance clients.

Roger Thompson: I think when I look at our 10 largest strategies, our inflows and our outflows are actually at almost identical management fee levels. So it's not a pricing story. It's around where the inflows have been, and in the first half of the year, we've been really pleased to see those sizable inflows in institutional. But we'd expect. So that, that makes sense that the fee rate has fallen by about a basis point in Q2. But we'd expect that management fee rate to stabilize going forward.

But over time, we'd we'd anticipate a stable <unk> as we execute the strategy and importantly, with not discounting business in order to in order to win I think when I look at all 10 largest strategies.

Inflows and all that flows or actually it almost identical management fee levels. So it's not it's not a pricing story.

Roger Thompson: So that, that makes sense that the fee rate has fallen by about a basis point in Q2. But we'd expect that management fee rate to stabilize going forward.

It's it's around it's around where the inflows of pain in the first half of the year, we've been really pleased to see those sizeable inflows and institutional.

Ken Worthington: Great. Thank you.

But if we think we would expect so that that makes sense for the fee right has fallen by about a basis point.

Operator: ... Our next question comes from Craig Siegenthaler from Bank of America. Craig, your line is now open. Please go ahead.

Operator: Our next question comes from Craig Siegenthaler from Bank of America. Craig, your line is now open. Please go ahead.

In Q2.

But I would expect that management fee right to stabilize going forward.

Great. Thank you.

Craig Siegenthaler: Morning, Ali, and congrats on another better than expected flow quarter. And it, it's also nice to see some of your stars returning, like Marc Pinto. My question is on the flow side. I realize there were a few large institutional mandate wins in the Q2, but if you could really attribute two or three factors to the second better than expected net flow quarter in a row, what would those factors be?

Next question comes from <unk> from Vancouver America, Craig. Your line is now please go ahead.

Good morning, Ali and congrats on another better than expected.

And it's also nice to see some of your stars are turning like Mark Pinto.

My question is on the flow side I realized there were a few large institutional mandate wins in the second quarter number, but if you could really a tribute two or three factors to the second better than expected.

Ali Dibadj: Well, thanks. Thanks, Craig. Look, I think it's a culmination of a lot of things that we're doing at the firm, and hopefully continued progress around that. So look, if I take a step back and, you know, we've been talking about this firm for the past, call it 12 or 13 months, I would argue that we are, I am very pleased about the progress that each and every person at Janus Henderson has done on behalf of our, on behalf of our clients. I wouldn't exactly have expected this kind of progress.

What were those factors bank.

Uhm well. Thanks, Thanks, Craig look I think it's a culmination of a lot of things that we're doing at the firm.

And hopefully continued progress around that so so like I I, if I take a step back and you know we've been talking.

Ali Dibadj: I wouldn't exactly have expected this kind of progress. If you told me a year ago, we'd be where we are, from a flow perspective, you know, think about it, +$5 billion first half of the year, this year in inflows relative to -$14 billion last year. So, I think there's a real improvement cycle there, and that's has, to your point, translates results, whether it be EPS or flows.

It looks at this firm for the past 12, or 13 months I I would argue that we are I am very pleased about the progress that each and every person agenda Henderson has done on behalf of our on behalf of our clients.

Ali Dibadj: If you told me a year ago, we'd be where we are, from a flow perspective, you know, think about it, +$5 billion first half of the year, this year in inflows relative to -$14 billion last year. So, I think there's a real improvement cycle there, and that's has, to your point, translates results, whether it be EPS or flows. But underlying a little bit of that is a couple things to your question. One is, significant uptick in client activity. So we've been talking to more clients, and frankly, I like, we like what we're hearing from clients. They want to do business with us. They're pleased that we're, quote unquote, back on their radar screen, and that has filtered through.

I I wouldn't exactly have expected this kind of progress. If you told me year ago, we'd be where we are from a flow perspective, you know think about Ah plus $5 billion in the first half of the year this year and inflows relative to the negative 14 last year. So I think there's a real improvement cycled there and that's how.

Ali Dibadj: But underlying a little bit of that is a couple things to your question. One is, significant uptick in client activity. So we've been talking to more clients, and frankly, I like, we like what we're hearing from clients. They want to do business with us. They're pleased that we're, quote unquote, back on their radar screen, and that has filtered through.

To your point Sandwich results, whether the U P S or flows but underlying a little bit of that is a couple of things to your question one is significantly.

Significantly uptick in a text to client activity.

Ali Dibadj: That has filtered through clients who were waiting and seeing what the transitions would look like, and they're pleased with what they see. They're giving us their vote of confidence and suggesting that we're very much on track in terms of our progress and our delivery to our clients. And that's culminating exactly as you described so far in you know good quarters of flows. Again, I don't think we're out of the woods. I don't think that we can promise linear and positive flows going forward, but what we are seeing is real improvement from a market share perspective. Take US intermediary as an example. I mentioned in the prepared remarks; their US intermediary business was at -6% last year.

So we've been talking to more clients and frankly I like we like what we're hearing from clients. They want to do business with US. They were pleased that were quote unquote back on the radar screen and that has filtered through that filter through clients, who were waiting and seeing what the transitions would look like and they are pleased with what they see they're giving us a vote of confidence in <unk>.

Ali Dibadj: And that's culminating exactly as you described so far in you know good quarters of flows. Again, I don't think we're out of the woods. I don't think that we can promise linear and positive flows going forward, but what we are seeing is real improvement from a market share perspective. Take US intermediary as an example. I mentioned in the prepared remarks; their US intermediary business was at -6% last year.

Suggesting that were very much on track in terms of our progress in our delivery to our clients and that's culminated exactly as you described so far and and you know good quarters of of close.

Again, I don't think we're out of the woods I don't think that we can promise linear and positive flows going forward, but what we are seeing is real improvement from a market. Your perspective take you are intermediary as an example.

Ali Dibadj: We're at negative 1% this year, and that's really driven by some of the lumpiness in the retirement channel, as opposed to the core, wholesaler-driven investment intermediary business. So, you're seeing tangible progress here. And again, I think it's built up on a lot of the great work that the team has done, over the past year, and we'd like to see that continue. I wouldn't expect it, as Roger mentioned, to continue into Q3, particularly given we're not assuming large institutional inflows in Q3 at this point. It's really focused on intermediary, and we have also mentioned, obviously, the intermediary challenges that we have in EMEA, that in the macro environment there is, feels like it's a little bit on a lag in terms of improvement relative to the US. Hopefully, that answers the question, Craig.

I mentioned in the prepared remarks that are you essentially earache business.

Uhm was at negative six per cent last year, we're at negative one per cent. This year and that's really driven by some the lumpiness in retirement channel as opposed to the corps.

Ali Dibadj: I wouldn't expect it, as Roger mentioned, to continue into Q3, particularly given we're not assuming large institutional inflows in Q3 at this point. It's really focused on intermediary, and we have also mentioned, obviously, the intermediary challenges that we have in EMEA, that in the macro environment there is, feels like it's a little bit on a lag in terms of improvement relative to the US. Hopefully, that answers the question, Craig. It's a whole bunch of things that point us in the right direction.

Wholesaler gribben, you've essentially dairy business, so you're seeing tangible progress here and again I think it's built up on a lot of great work that the team has done over the past year and we'd like to see that continue I wouldn't expect it as Roger mentioned to continue into two three particularly given were not assuming large institutional inflows in Q3 at this point it's.

Ali Dibadj: It's a whole bunch of things that point us in the right direction.

Really focused on intermediary and we have also mentioned obviously intermediary challenges when you have anemia that in the macro environment. There is feels like it's a little bit amount of lag in terms of improvement relative to the U S. Hopefully that answered the question pregnant with a whole bunch of things that point from the right direction.

Craig Siegenthaler: Helpful, Ali. My second one is on the momentum you've been seeing with your insurance clients, and I want to get a read on the appetite for Janus to take this one step further and form a partnership with an insurance company that could provide strategic benefits to both parties. I know you have a lot of experience with this.

Helpful. Holly My my second one is on the momentum you've been seeing with your insurance clients and I wanted to get a read on the appetite for Janice to take this one step further and form a partnership with an insurance company that could provide strategic benefits to both parties I I know you have a lot of <unk>.

Ali Dibadj: So, look, we think that there's a real opportunity to provide our skill set to a broader insurance clientele. We have very strong clients in the insurance market right now that we've had long-standing relationships with, and we're actually increasing the number of insurance clients that we have. Very sophisticated global insurance clients, most recently, particularly in Europe, where we have been able to deliver for them, and we believe that we have the skill set to deliver them even further. You're right that historically, I've had some interactions with insurance companies and relationships there that have been mutually beneficial.

Spirits with it.

So so we we think that there is a there's a real opportunity to provide our skill set to a broader insurance clientele. We have very strong clients any insurance market right now that we've had long standing relationships with and where I have actually increasing.

Ali Dibadj: Very sophisticated global insurance clients, most recently, particularly in Europe, where we have been able to deliver for them, and we believe that we have the skill set to deliver them even further. You're right that historically, I've had some interactions with insurance companies and relationships there that have been mutually beneficial.

The number of insurance client that we have very sophisticated global insurance client most recently, particularly in Europe , where we have been able to deliver for them and we believe that we have the skill set to deliver them even further.

Ali Dibadj: And we have been, you know, quite active in speaking with insurance companies and seeing if there's something that we can do together with them. There's nothing to talk about today. Again, we're focused on our clients and our client's clients, whether it be insurance clients or otherwise. We think we can continue to deliver great product to them, from a performance perspective and a client service perspective on the strong foundation Janus Henderson has. And, you know, broadening that client base, insurance and otherwise, is certainly part of our focus.

You're right that historically I've had some.

Interactions with insurance companies, and and and relationships there that had been a mutually beneficial and we have been you know quite active in speaking with insurance companies and seeing if there's something that we can do together with them. There's there's nothing to talk about today again, we're focusing our clients and our clients clients, whether it be insurance plans or otherwise we think we can continue to do.

Ali Dibadj: We think we can continue to deliver great product to them, from a performance perspective and a client service perspective on the strong foundation Janus Henderson has. And, you know, broadening that client base, insurance and otherwise, is certainly part of our focus.

River, great product to them from foreign perspective, and a client service perspective on a strong foundation, Dennis Henderson has and uhm broadening that client base insurance and otherwise is certainly part of our focus.

Craig Siegenthaler: Thank you.

Operator: Our next question comes from Dan Fannon from Jefferies. Dan, your line is now open. Please go ahead.

Dan Fannon: Thanks. Good morning. Wanted to follow up on a comment you made around the pockets of internal transition, I think, impacting flows. So maybe talk about, you know, some of the headlines we've seen, but ultimately where you are in this process, and as you think about the guidance for Q3 for flows, how much of that, you know, potential disruption is part of that, and whether you think that's going to continue for a few more quarters thereafter?

Thank you.

Our next question comes from <unk> from Jeffries, Daniel <unk> Open. Please go ahead.

Thanks, Good morning wanted to follow up on a comment you made around the pockets of internal transition I think impacting pillows. So maybe talk about some of the headlines we've seen but ultimately where you are in this process and as you think about the guidance for three Q for flows.

Ali Dibadj: Dan, thanks very much for the question. So look, the transitions are specifically things that we're doing that may increase volatility in the short term for sure, but are definitely the right things for the future, and the right things for the future, particularly for our clients. All of these transitions, at least the ones in our control, are client-led, insofar as our clients entrust us to manage their wellbeing, their money, and we want to take that responsibility even more seriously than we have before. And very much make sure that when we're managing their money, we're entirely focused on managing their money from a colleague and employee perspective.... The specific transitions are gonna be surgical, very focused on delivering again for client needs.

How much of that potential disruption as part of that and whether you think that's going to continue for a few more quarters thereafter.

Okay. Thanks, very much for the question Uhm, So look <unk>.

Ali Dibadj: All of these transitions, at least the ones in our control, are client-led, insofar as our clients entrust us to manage their wellbeing, their money, and we want to take that responsibility even more seriously than we have before. And very much make sure that when we're managing their money, we're entirely focused on managing their money from a colleague and employee perspective.

Transitions are specifically things that we're doing that may increased volatility in the short term for sure but are definitely the right things for the future and the right things for the future, particularly if our clients all of these transitions at least the ones that are control our client led in so far as our clients and trust us to manage.

Their their their their wellbeing their money and we want to take that responsibility even more seriously than we have the four and very much make sure that when we're managing their money were entirely focused on managing their money from my colleague an employee perspective.

Ali Dibadj: The specific transitions are gonna be surgical, very focused on delivering again for client needs. And they typically take two flavors of broad transitions. One is, and every company needs to do this, whether it be in our industry or other industries, look at the products that they have and look at them to make sure that performance expectations are being met from clients, making sure that there is real growth in those businesses, making sure there's real profitability in those businesses overall.

Ali Dibadj: And they typically take two flavors of broad transitions. One is, and every company needs to do this, whether it be in our industry or other industries, look at the products that they have and look at them to make sure that performance expectations are being met from clients, making sure that there is real growth in those businesses, making sure there's real profitability in those businesses overall. We've done the bulk of that, to your question, from a fuel for growth perspective already, but there are a few stragglers here and there. The easiest decisions are when things don't meet performance and aren't particularly big and clients don't like it. Those are some easy decisions, but some of the other decisions, you know, come through as well when only one or two of those criteria are met.

The specific transitions are gonna be.

Surgical very <unk>.

Focus on delivering again for for client needs and they typically take two flavors.

Broad transitions.

One is in every company needs to do this whether it be an art industry or other industries look at the products that they have and look at them to make sure that performance expectations are being met compliance, making sure that there is real growth and those businesses, making sure those real profitability. Most businesses overall, we've done the bulk of that.

Ali Dibadj: We've done the bulk of that, to your question, from a fuel for growth perspective already, but there are a few stragglers here and there. The easiest decisions are when things don't meet performance and aren't particularly big and clients don't like it. Those are some easy decisions, but some of the other decisions, you know, come through as well when only one or two of those criteria are met.

To your question from appeal for growth perspective already but there are a few stragglers here and there. The easiest decisions are when things don't mean performance are particularly big and clients don't like it that was an easy decision, but some of the other decisions you know come through as well when only one or two of those criteria are met the bulk of that again as I mentioned has been.

Ali Dibadj: The bulk of that, again, as I mentioned, has been done. What I would say is, there's a second flavor, obviously, which is more typical, right? So typical turnover in this industry, which happens quite a bit. Just I'd ask you to think about your client base and how that turns over. We've been fortunate at Janus Henderson, that we've had less than industry turnover across the board for us, but we have turnover nonetheless. Typically, those things are, you know, retirements that are expected. Usually, there's lots of time to manage that. And the great news is that because we have really great tenure, and we have 330 investment professionals around, we have long-standing processes that each of the investment teams hold to. We have risk overlays.

Has been has been done what I would say is there's a second flavor, obviously, which is more typical alright. So typical.

Ali Dibadj: Typically, those things are, you know, retirements that are expected. Usually, there's lots of time to manage that. And the great news is that because we have really great tenure, and we have 330 investment professionals around, we have long-standing processes that each of the investment teams hold to. We have risk overlays.

Turnover in this industry, which happens quite a bit just I'd ask you to think about your client base and how that turns over we've been fortunate Janice Henderson that we'd have less than industry turnover across the board for us, but we have turnover. Nonetheless typically those things are retirement that are expected to lots of times manage that and the great news.

Is is that because we have really great 10 years, and we have 330 investment professionals around we have a long standing processes that that each of the investment teams Ah hold too we have risk overlays. We have proposed construction tools, we have all sorts of other things that make the transition <unk>.

Ali Dibadj: We have portfolio construction tools. We have all sorts of other things that make the transition even more seamless, let alone obviously a very clear succession plan and bench. We believe that these transitions will be somewhat seamless across the board, and again, over and over again, they're going to be and are client-led, in, in every instance that we can deliver.

Even more seamless let alone obviously, a very clear succession planning bench, we believe that these transitions will be somewhat seamless across the board and again over and over again, they're going to be in our client led and in every instance that we can deliver.

Dan Fannon: Thanks for that, appreciate the color. And then another kind of clarification of your kind of longer term view of 1 to 2 positive quarters over the next 1 to 2 years for flows. And so thinking about institutional being the swing factor and then having, as you think about, intermediary showing steadily improving in the US and still may be challenged in, in, in outside the US and direct kind of being stable. Just trying to think about how you think about that progression in that scenario of 1 to 2 positive quarters over the next 1 to 2 years.

Thanks for that I appreciate the color and then another kind of clarification of your kind of longer term view of one to two positive quarters over the next one to two years for flows into.

Thinking about institutional being the swing factor and then having as you think about intermediary showing steadily improving in the U S and still maybe challenged in and outside the U S and direct kind of being stable just trying to think about how you think about that progression in that scenario of wanted.

Ali Dibadj: Yeah, so, well, just to clarify even further, remember that Q1 of this year was positive, and we'd anticipate one to two more quarters between this year and next year. You know, we've established our strategic roadmap. We're focused on the longer term. We're implementing that strategy with a revamped and very focused team. And the strategic plan has taken hold. To your point, we're seeing progress in the intermediary channel. We're seeing progress in institutional. We've had $9 billion of that institutional flows this year. Again, we can't and don't want to project that going forward. There's a long cycle for those, but certainly the signs are positive.

Two positive courses over the next one to two years.

Yeah. So look just to clarify even further the remember that the first quarter of this year was positive and we'd anticipate wanted two more quarters between this year and next year.

Ali Dibadj: And the strategic plan has taken hold. To your point, we're seeing progress in the intermediary channel. We're seeing progress in institutional. We've had $9 billion of that institutional flows this year. Again, we can't and don't want to project that going forward. There's a long cycle for those, but certainly the signs are positive.

We've established our strategic roadmap, we're focused on a longer term or <unk> implementing a strategy with.

Revamped and and very focused team in the strategic plan has taken hold your point, we're seeing progress and use intermediary channel.

Ali Dibadj: In other areas where we're focused, like diversified alternatives, we've seen 35% growth in the first part of this year. Now, all those things are very much pointing us in the right direction. What I would say is, and you know this better than anybody, right, this isn't gonna necessarily be linear. We've said that before. So we can't yet promise consistent organic growth. We can see significant improvements, certainly relative to last year. We believe we're on our way to sustainable organic growth, but I don't wanna overpromise at this point, given your points on the challenges in EMEA and some of the lack of clarity at this point in the pipeline that we have on the institutional side.

We're seeing progress in institutional.

We've at $9 billion of Destitution flows. This year again, we can't and don't want to project that going forward, there's a long cycle for those but certainly the signs are positive in other areas, where we're focused like diverse I'd alternatives. We've seen 35 per cent growth in the first part of this year and all those things are very much pointing us in the right direction what.

Ali Dibadj: We can see significant improvements, certainly relative to last year. We believe we're on our way to sustainable organic growth, but I don't wanna overpromise at this point, given your points on the challenges in EMEA and some of the lack of clarity at this point in the pipeline that we have on the institutional side.

I would say is and you know that's better than anybody writes. It this isn't going to necessarily be linear and you said that before so we we can't yet promise consistent organic growth. We we can see significant improvements are only relative to last year. We believe we're on our way to sustainable organic growth, but I don't want to Overpromise at this point.

Dan Fannon: Thank you. That's helpful.

Given your points and the challenges anemia, and some of the lack of clarity at this point in the pipeline that we have on this <unk>.

Operator: Our next question come from Nigel Pittaway from Citigroup. Nigel, your line is now open. Please go ahead.

Nigel Pittaway: Great. Thanks very much. Just a quick question, if I could, on the comp ratio guidance. Obviously, you've had, I think, 50.1% Q1, 45.6% Q2, but you're still guiding to the mid-40s. So that obviously implies that it does come down a bit in the last two quarters. Is that a reasonable assumption?

Thank you that's helpful.

On the next question comes from natural pitch away from Citigroup <unk>. Please go ahead.

Oh, great. Thanks, very much just just a quick question if I could on the <unk>. So hopelessly sides, I think 50.1% first quarter, 45.6% second cool, but he's still got into the mid forties. So that'll this implies that it does come down a bit in the last two code is is that a reasonable assumption.

Roger Thompson: Yeah, that's reasonable, Nigel. The first quarter is always high, given timings, particularly in the US, but that guidance of mid-forties still applies.

Nigel Pittaway: Right. So presumably, that means, and it's gonna come through the comp expense, right? Because your LTIP guidance really hasn't moved, so.

Yeah, that's reasonable nodule, the first quarters of waist high given timings, particularly in the U S, but that guidance of mid forties still applies.

Roger Thompson: That's right.

Nigel Pittaway: Is that a right way of looking at it? Yeah.

Roger Thompson: Yes.

Nigel Pittaway: Okay. Yeah, all right. And then, a similar vein, just on the tax rate. Obviously, you're reiterating that at 24% to 26%, even though it was 22.2% this quarter. And any reason why it was particularly low this quarter and reverts back up again?

Right, so presumably that means it's gonna come through the conflict expense right, because you're able to it got really hasn't Leafs.

Right that way of looking at it yeah, yeah. Okay.

Yeah, Alright, and then similar vein just on the tax right. So, let's see you're restricting that at 24 to 26 eight and that is 22.2. This is.

Roger Thompson: Yeah, it's really how it's calculated. You need to exclude the NCI. If you exclude NCI, our ETR in Q2 is 23.9. So it's basically at the lower end of our guidance of 24% to 26%. And again, I'd stick with that guidance of 24% to 26%.

Cool Sir.

Any reason why it was particularly school sure Revotes back up again.

Yeah. It's it's really that's how it's calculated you need to exclude the N C. I. If you exclude N C. I R. A T T R and the second code is 23.9. So it's it's basically the lower end of all guidance of 24% to 26% and again, let's stick with that gardens of 24 to 26.

Nigel Pittaway: Okay, great. Thanks.

Operator: Our next question comes from John Dunn from Evercore ISI. John, your line is now open. Please go ahead.

Okay alright. Thanks.

John Dunn: Good morning, guys. You talked about EMEA, the drag and some of the drags there, but can you talk about maybe where are you seeing growth sales overseas, both regionally and then, strategy-wise?

Our next question comes from John done from the ethical ISI Tonioli. One is now open. Please go ahead.

Good morning, guys Uhm, you talked about it in the the <unk> and send it to drag their but can you talk about maybe what are you, saying gross sales overseas both regionally and then strategy wise.

Ali Dibadj: ... Sure. So, look, we are seeing a significant pickup in institutional business overseas, particularly in actually the EMEA region. I mentioned earlier on large institutional clients in the insurance world, entrusting us with their and their policyholders' capital. Hopefully, we'll be good stewards of that. Similarly, very sophisticated sovereign wealth funds, for example, in the Middle East, have looked to us for help. We're very proud to serve them and their citizens. And we're finding also in Asia some interest from the institutional side as well, and also intermediary flows looking relatively better in those regions. The core kind of issue for us, as we've mentioned before, is in the EMEA intermediary space.

Ali Dibadj: Sure. So, look, we are seeing a significant pickup in institutional business overseas, particularly in actually the EMEA region. I mentioned earlier on large institutional clients in the insurance world, entrusting us with their and their policyholders' capital. Hopefully, we'll be good stewards of that. Similarly, very sophisticated sovereign wealth funds, for example, in the Middle East, have looked to us for help.

Sure. So what we are seeing significant pick up an institutional business overseas, particularly in actually the EMU region mentioned earlier on large institutional clients in the insurance world and trusting us with.

Ali Dibadj: We're very proud to serve them and their citizens. And we're finding also in Asia some interest from the institutional side as well, and also intermediary flows looking relatively better in those regions. The core kind of issue for us, as we've mentioned before, is in the EMEA intermediary space.

They're in their policyholders capital hopefully, we'll we'll be good stewards of that similarly, very very sophisticated sovereign wealth funds for example in the middle East.

Look to us for for help and we're very proud to to serve them and their citizens and we're finding also in Asia. Some interest from institutional side as well and also intermediary flows looking relatively better in those regions. The the core.

Ali Dibadj: And again, we are setting ourselves up for when the wind is at our backs, with increased activity, with great product, with fantastic performance, with great world-class service from our salespeople. You know, right now the wind is at everybody's face, including ours. The good news is, even in that market, we're not losing share. In fact, I would argue we're gaining a little bit of share in that marketplace. So again, we're setting ourselves up for the future. But you know, the macro headwinds are clearly there in the EMEA intermediary area, and we just want to be mindful of that.

Issue for US as we mentioned before is in the EMU intermediary space and again, we are setting ourselves up for when the wind is at our backs uhm.

Uhm with increased activity with great product, a fantastic performance with Great World Class service from our salespeople.

Ali Dibadj: In fact, I would argue we're gaining a little bit of share in that marketplace. So again, we're setting ourselves up for the future. But you know, the macro headwinds are clearly there in the EMEA intermediary area, and we just want to be mindful of that.

You know right now the winters at everybody's face, including ours. The good news is even in that market, we're not losing share in fact, I would argue regaining a little bit of sharing that marketplace. So again, we're setting ourselves up for the future, but you know the macro headwinds are clearly there in the EMU intermediary area and you just want to be mindful of that.

Ed Henning: John, if I can add to that. If you look on-

Roger Thompson: John, if I can add to that. You can, if you look on slide 5, you can see the gross flows in intermediary that are pretty constant at around $9 billion. So as Ali said, you know, we, we've seen very significant improvement year on year in the North American intermediary flows, which for Q1 and Q2 are basically flat compared to, you know, $3 billion and $2 billion out in the first couple of quarters of last year.

Ali Dibadj: Got you. And then...

Ed Henning: You can see the-

Ali Dibadj: Yeah.

Ed Henning: You can, if you look on slide 5, you can see the gross flows in intermediary that are pretty constant at around $9 billion. So as Ali said, you know, we, we've seen very significant improvement year on year in the North American intermediary flows, which for Q1 and Q2 are basically flat compared to, you know, $3 billion and $2 billion out in the first couple of quarters of last year. And in EMEA, both in the UK and on the continent, outflows, you know, it is a tough market, as Ali said, but again, we think we're at least holding and possibly taking a little bit of market share in what is a very tough market.

Johnny fucking add to that if you if you look on Gotcha and then.

Yeah.

If you ever saw five you can see the gross closer than tomato.

Pretty comfort at around $9 billion. So that's all it said, we've seen very significant improvement ear on here in the North American <unk> flows, which which for Q1 and Q2 are basically flat compared to three.

Roger Thompson: And in EMEA, both in the UK and on the continent, outflows, you know, it is a tough market, as Ali said, but again, we think we're at least holding and possibly taking a little bit of market share in what is a very tough market.

<unk> the first couple of quarters.

Last year in in a mere both in the UK I know the confidence outflows.

John Dunn: Right. Okay, cool. And then, you know, you have a lot of experience building an alt business, Ali, and the JV is definitely a step in the right direction. Can you kind of frame what you think the next couple of years of building that out could be?

It is a tough market is Ali said, but but again, we think we are at least holding and possibly taking a little bit of market Sharon and what is a very tough market.

Right. Okay Cool and then you know you have a lot of experience building you know what's business Alley, and J V is definitely a step in the right direction, but can you kind of frame what <unk>. What you think the next couple of years in a building that could be.

Ali Dibadj: Absolutely. So we are very, very involved, as I'd mentioned, you know, over the past several quarters, and we saw each other live as well, in the M&A landscape on private credit. I think, you know, one has to make sure from an institutional perspective, or Janus Henderson perspective, what one's skill sets are and what can do inorganically, organically, or, you know, to some combination of partnership. From an investment skill set perspective, in the private world, particularly in the private credit world, we do think, John, that M&A has to be part of the story. So we've been very active in the M&A landscape. I will suffice to say, any deal you've seen occur, big or small, we've looked at. The M&A team has been very active and very strong looking through this.

Absolutely. So we are very very involved as I mentioned, you know over the past several quarters and we saw each other alive as well.

In the M&A landscape on private credit I think.

Ali Dibadj: From an investment skill set perspective, in the private world, particularly in the private credit world, we do think, John, that M&A has to be part of the story. So we've been very active in the M&A landscape. I will suffice to say, any deal you've seen occur, big or small, we've looked at. The M&A team has been very active and very strong looking through this. If we're not involved in the final culmination of a deal, it's because of our decision, either on valuation, potential to grow, fit with our business from a cultural perspective, or client need.

One has to make sure from your institution perspective of James Henderson perspective, what one skill sets are and what can do inorganically organically or or some combination of partnership.

From an investment skill set perspective, and the private swirled between the private credit World. We do thank John that M&A has to be part of the story. So we've been very active in the empty landscape.

Ali Dibadj: If we're not involved in the final culmination of a deal, it's because of our decision, either on valuation, potential to grow, fit with our business from a cultural perspective, or client need. And so we would expect M&A to continue to factor into growing our private credit business, whether it be through partnerships like a Privacore or wholly owned businesses in private credit, but we have to make sure, most importantly, it's the right team to deliver for our clients. The flexibility we have, just to remind everybody, is very easy to see if you look at our balance sheet. So we have real ability to leverage our balance sheet to grow, to acquire inorganically and grow in that way.

I will suffice it to say any deal you've seen occur big or small we've looked at do you have any team has been very active and very strong looking through this and and if we're not involved in the final culmination of a deal. It it's because of our decision either on valuation or potential to grow or fit with our business from a cough.

Ali Dibadj: And so we would expect M&A to continue to factor into growing our private credit business, whether it be through partnerships like a Privacore or wholly owned businesses in private credit, but we have to make sure, most importantly, it's the right team to deliver for our clients. The flexibility we have, just to remind everybody, is very easy to see if you look at our balance sheet. So we have real ability to leverage our balance sheet to grow, to acquire inorganically and grow in that way.

Full of perspective or client need and so we would expect M&A to continue to factor into growing our private credit business, whether it be through partnerships like a perfect corps or wholly owned businesses and private credit, but we have to make sure. Most importantly to the right team to deliver for our clients.

The flexibility we have just to remind everybody is very easy to see if you look at our balance sheet. So we have real ability to.

Ali Dibadj: And then, of course, the value that we bring, inclusive of Privacore, is our distribution capabilities to grow any M&A partners that we sign and targets that we bring on board, both in the retail channel in the US and globally, as well as the institutional channel on a global basis. So, we would only buy things we think we can grow, and we will only do it at the right price. And of course, of course, probably the most important thing, I think I mentioned this a couple of quarters ago, we'll only do it if the cultural fit is there, high investment focus and client-led.

To leverage our balance sheet to grow it's it's it's acquire inorganically and grow in that way and then of course the value that we bring inclusive of <unk> is our distribution capabilities to grow any uhm M&A partner that we signing targets that we bring on board that both in the retail channel in the U S and globally.

Ali Dibadj: So, we would only buy things we think we can grow, and we will only do it at the right price. And of course, of course, probably the most important thing, I think I mentioned this a couple of quarters ago, we'll only do it if the cultural fit is there, high investment focus and client-led.

<unk> has all the additional channels on a global basis. So we would only buy things. We think we can grow and we will only do it at the right price and of course of course, probably the most important thing I think I mentioned this couple of quarters ago will only do it if the cultural fit in there I investment focus and client led.

John Dunn: Thanks very much.

Operator: Our next question comes from the line of Ed Henning, from CLSA. Ed, your line is now open. Please go ahead.

Ed Henning: Thanks, and good morning. I just have two questions. Firstly, thinking about your net flows, if we're thinking about gross sales versus redemptions, the past couple of quarters at a high level, at least, look like you've seen improving trends in redemptions. Is there anything deliberate that you've done in there, or is that simply an outcome around, you know, off market trends, et cetera? And going forward, how are you thinking about that?

Thanks very much.

Our next question comes from the lineup Anthony here from CLSA Anthony online is now open. Please go ahead.

<unk> good morning, I guess two questions firstly.

Thinking about getting it flows if we're thinking about gross sales Bush's redemptions <unk> couple of quotas at.

At a high level of at least look like you've seen including twins redemptions.

Ali Dibadj: So let me start and maybe pass it over to Roger. So I think there are a couple things that are going on from redemptions perspective for sure. One of them is, we have certainly delivered better performance consistently across the board, and better performance from a long-term perspective, most importantly. And that is being recognized more and more as we talk to clients that our performance over the longer term, yes, there may be spikes of volatility across that, and we may have seen that last year, for example, where it was quite a unique market with bonds and stocks going down significant amounts. But over the long term, we can deliver that performance, and I think that's something that clients are seeing and entrusting us with.

Is there anything deliberate that you've done in that or is it simply the outcome around you know of.

Market trends et cetera, and going forward, how are you thinking about that.

So let me start and maybe pass over to Roger.

So I I think there are a couple of things that are going on from redemptions perspective for sure. One of them is we have certainly delivered better performance cause it's only across the board and better performance from a long-term perspective, most importantly, and that is being recognized more and more as we talk to clients better performance over the longer.

Ali Dibadj: And that is being recognized more and more as we talk to clients that our performance over the longer term, yes, there may be spikes of volatility across that, and we may have seen that last year, for example, where it was quite a unique market with bonds and stocks going down significant amounts. But over the long term, we can deliver that performance, and I think that's something that clients are seeing and entrusting us with.

Term, yes, or maybe spike the volatility across that and it may seem that last year for example, where where it was quite a unique market with with with bonds and and and and that stocks going down significant amount uhm, but over the longterm, we can deliver that performance and I think that's something that clients are seeing an interesting us with so so the shore.

Ali Dibadj: So the short-term volatility and performance, Anthony, doesn't really impact the redemptions as much. The second thing is that, you know, clients are waiting and seeing a little bit, in terms of what the changes are at this organization. And change is often a worrisome term for clients. But I think what clients are realizing is that the change that we're making here is for them. The change that we're making here for Janus Henderson is for our clients, and we can certainly deliver stability, but I'm, I don't agree to any clients to deliver stagnation because it's not good for them. So the changes that we're going about here, I think, are seen very, very positively.

[noise] term volatility performance Anthony doesn't really impact of redemption as much. The second thing is that no clients were waiting and seeing a little bit in terms of what the changes are at this organization and that changes often worrisome term for clients, but I think what clients are realizing is that the change that we're making here is.

Ali Dibadj: But I think what clients are realizing is that the change that we're making here is for them. The change that we're making here for Janus Henderson is for our clients, and we can certainly deliver stability, but I'm, I don't agree to any clients to deliver stagnation because it's not good for them. So the changes that we're going about here, I think, are seen very, very positively.

Four of them <unk>.

Ali Dibadj: The last thing I'd say before I hand over to Roger is that our client service folks, our talent that we have in the field, that are interacting face-to-face with clients, are thinking about our clients and our clients' clients, are world-class and continue to be improved from a talent perspective as we bring more and more people in. I think that goes a long way to delivering on our clients' needs, and thus, curtailing some of the redemptions. So I'd argue it's those three points: performance, waiting on the positive change that they're now seeing, and the client service personnel that we have and the upgrades that we've brought to bear. Roger, I don't know if you have more detail, maybe to bring to bear on anything.

Change that we're making here for Janice Henderson is for our clients.

And we can certainly deliver stability, but but I'm I don't agree to any client deliver stagnation because it's not good for that so the changes that were going about here I think are seeing very positively the last thing I'd say before I hand over to Roger.

Is that our client service folks are are talent that we have in the field that are interacting face to face with clients are thinking about our clients our client client a world class and continued to be improved from a talent perspective, as you bring more and more people and I think that goes a long way to delivering our clients needs and.

Ali Dibadj: I think that goes a long way to delivering on our clients' needs, and thus, curtailing some of the redemptions. So I'd argue it's those three points: performance, waiting on the positive change that they're now seeing, and the client service personnel that we have and the upgrades that we've brought to bear. Roger, I don't know if you have more detail, maybe to bring to bear on anything.

And thus curtailing the some of the redemption. So I'd argue with those three points outperformance waiting on a positive change that they are now seeing them in a client service personnel that we have any upgrade that'd be brought to bear butter and if you have more detail maybe to bring to bear Nancy.

Roger Thompson: Yeah, the same points, but as you said, a little bit more detail. If you remember, our small and mid-cap growth performance in the US was pretty challenged in 2021, and bounced back very strongly in 2022, and you can see the strength of those numbers now. Flows take a little bit longer to turn, but it's really pleasing to see, you know, small cap growth is positive in flows this quarter. Interestingly balanced, which is, you know, our biggest capability, biggest single capability, about $40 billion, again, had a tough first part of 2022, perhaps.

Roger Thompson: Flows take a little bit longer to turn, but it's really pleasing to see, you know, small cap growth is positive in flows this quarter. Interestingly balanced, which is, you know, our biggest capability, biggest single capability, about $40 billion, again, had a tough first part of 2022, perhaps. But again, as I said earlier, is now ahead of benchmark and right up there in top quartiles for 1, 3, 5, 10, and even longer time periods for balanced.

The same points, but as you said a little bit more data. If you remember a smaller mid cap growth performance in the U S was pretty challenged in in in 21 and bounce back very strongly in 22 and you can see the strengths those numbers now flows take a little bit longer term, that's really pleasing to see small cap growth is positive.

Close this quarter.

Roger Thompson: But again, as I said earlier, is now ahead of benchmark and right up there in top quartiles for 1, 3, 5, 10, and even longer time periods for balanced. That's still an outflow. Again, these things take a little bit of time to turn. So hopefully that will also recover in the same way as we've seen with small and mid-cap growth. And our European equity performance is also strong. And then, as Ali said, it's really around activity and getting in front of clients. But I think, yeah, flows do tend to follow performance, and that strength of performance that we've seen has certainly shown coming through in small and mid-cap growth.

Interestingly balanced which is you know our biggest biggest capability.

<unk> about $40 billion again, how to how to cut a tough first part of 22, perhaps but again as I said earlier is now ahead of benchmark and brought up there in top quartile for 1135, 10, and even longer throats on parents for balance.

Roger Thompson: That's still an outflow. Again, these things take a little bit of time to turn. So hopefully that will also recover in the same way as we've seen with small and mid-cap growth. And our European equity performance is also strong. And then, as Ali said, it's really around activity and getting in front of clients. But I think, yeah, flows do tend to follow performance, and that strength of performance that we've seen has certainly shown coming through in small and mid-cap growth.

Still it outflow again these things take a little bit of time to turn so hopefully that will that will also recovery in the same way as we've seen with small to make up growth and I know you are paid equity performance is also strong I think metallic said, it's it's really around activity and getting in front of clients, but I think it.

Ed Henning: Great. Thanks for that. Can I ask also a follow-up question just around your dual listing on the Australian Exchange? It looks like currently you only have about 5.5% of your shares listed on the ASX, which is a decline from around about 25% just 4 years ago. How are you thinking about maintaining this dual listing? How costly is it for you to maintain this?

Flows they tend to fall like performance.

That strength and performance that we've seen has certainly shown coming through and install it kept growth.

Great. Thanks for that today can I ask <unk> follow up question just thrown you'll you'll be sitting on the street and exchange. It looks like County, you only has about 5.5% of your socialist it on the 86.

Roger Thompson: Yeah, but the ASX, the ASX listing has been a long and valued part of our ownership structure for many years. But yeah, I think yeah, it's currently at a low point. But as I say, it's been a very valuable holding for a long period of time.

Climate full run about 25% just four years ago. How you think how were you thinking about maintaining just you will be seeing you how cost easy for you to maintain these.

Yeah, but the ISS assess listing is there's been a long and valued part of alright, <unk> structure for many years, but yeah. I think it's it's currently at a low point, but as I say, it's it's paid up.

Ed Henning: Okay, thank you.

Operator: Our next question comes from Marcus Barnard, from Bell Potter. Marcus, your line is now open. Please go ahead.

It's been up very valuable holding for a long period of time.

Marcus Barnard: Yeah, thank you. Congratulations on an upbeat set of figures and an upbeat performance. I'm gonna ask about your levels of cash on the balance sheet, if I may. Which, looking at slide 10, have reached $966 million. I suppose the question is: What's the right level of cash for your business? You know, I think you've talked about acquisitions in response to John's question, and, you know, perhaps we're expecting some small bolt-on acquisitions in the future. But where do we think that cash level will get to? And as a follow-on, when do you expect to start to increase dividend or reinstate the buyback? Thanks.

Okay. Thank you.

On next question comes from <unk> from the <unk> <unk>. Please go ahead.

Yeah, Thank you and uhm congratulations on a <unk>.

<unk> performance I'm Gonna ask you about your <unk>.

Marcus Barnard: You know, I think you've talked about acquisitions in response to John's question, and, you know, perhaps we're expecting some small bolt-on acquisitions in the future. But where do we think that cash level will get to? And as a follow-on, when do you expect to start to increase dividend or reinstate the buyback? Thanks.

Levels of cash on the balance sheet, if I may which looking at slide 10 have reached 966 minutes.

I suppose the question is what's what's the right level of cash.

So your business.

No I think he talks about acquisitions in response to Jones question and can that password expecting some small bolt on acquisitions in the future <unk>.

Roger Thompson: Thanks, Marcus. Yeah, I mean, first thing is, yes, we have a strong balance sheet, and we don't make any excuse for that. It's something that positions us well to do some of those activities that Ali's talked about. They're things we want to do. And the board's and the company's capital philosophy hasn't changed at all. We've taken an active, disciplined approach to the management of cash. Obviously, we're earning more on that cash now as well. But we have a, you know, a hierarchy of needs in terms of the regulatory needs of the business, the working cap of the business, and then how we invest, both organically and inorganically in the business.

Where do we can that cash level will get too and.

<unk> when do you expect to start to increase <unk> will reinstate the buyback. Thanks [noise].

Thanks, <unk>, Yeah, I mean first thing is yes, we have a strong balance sheet. Then we we don't make any excuse for that it's something that positions us well to do some of those activities that that that he's talked about their things we want to do.

Roger Thompson: We've taken an active, disciplined approach to the management of cash. Obviously, we're earning more on that cash now as well. But we have a, you know, a hierarchy of needs in terms of the regulatory needs of the business, the working cap of the business, and then how we invest, both organically and inorganically in the business.

And the boats.

Companies capital philosophy hasn't changed at all we taking an active disciplined approach to the management of cash.

Obviously, carosi, earning more on that cash now as well, but we have a.

Roger Thompson: That's where we think there could potentially be opportunities for now, as Ali's talked about. So the dividend, you know, we would still say is, you know, it's a healthy dividend. But you know, what we will continue to do is manage that, manage the balance sheet prudently, but in the same way as we always have. We're not here to hoard cash. If we don't have a better use of it, we will think about returning it. But at the moment, we see real opportunities to invest in the business, as I say, both organically and inorganically. And we'll support that with a strong, healthy quarterly dividend.

Hierarchy of needs in terms of the the regulatory needs of the business. The working cap of the business and then how we invest spicy organically and inorganically in the business and that's where we think that that could potentially be opportunities for now is that he's talked about.

So the dividend.

He would still say, it's it's a healthy dividend.

Roger Thompson: We're not here to hoard cash. If we don't have a better use of it, we will think about returning it. But at the moment, we see real opportunities to invest in the business, as I say, both organically and inorganically. And we'll support that with a strong, healthy quarterly dividend.

But you know what we what what we will continue to do is manage that manage the the balance sheet prudently, but but in the same way as we always have we're not here to hold cash if we don't have a better use of it we will think about returning it but at the moment, we say real opportunities.

Marcus Barnard: Excellent. Thank you very much.

To invest in the business as I say bye bye, so organically and Inorganically.

And and we will support that with a with a strong.

Operator: There are no further questions, so I'll hand back to the management team for any closing remarks.

<unk> quarterly dividend.

Ali Dibadj: Well, thank you, operator. Thanks, Sam, and thanks, everybody, for joining today. Janus Henderson is clearly gifted with a solid foundation. Our core team is nearly fully in place. The plan is in motion. And hopefully, this is another quarter where you're seeing some of our clear progress based on those factors. Thanks for joining, and we'll talk to you in a little bit.

Excellent. Thank you very much.

Okay.

And then I find the question. So I will have back to the management team for any <unk> remarks.

Well. Thank you operator, thank Tim and thanks for joining today Janice Henderson is it is clearly mm gifted with a solid foundation a core team is nearly fully in place. The plan is in motion and hopefully this is another quarter, where you're seeing some of our clear progress based on his back.

Operator: This concludes today's call. Thank you for joining. You may now disconnect your lines.

<unk>, Thanks for joining and we'll talk to you in a little bit.

This concludes today's cool. Thank you for joining you may now disconnect your lines.

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