Q1 2024 Janus Henderson Group PLC Earnings Call

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Prika: Good morning, my name is Prika, and I will be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson first quarter 2024 results briefing. All lines have been placed on mute to prevent any background noise.

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

Prika: After the speaker's remarks, there will 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. However, actual results could differ materially from those projected in the forward-looking statement due to a number of factors including, but not limited to, those described in the forward-looking statements and risk factors section in 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.

Prika: Thank you for standing by and welcome to the Janus Henderson first quarter 'twenty 'twenty four results briefing.

Prika: All lines have been placed on mute.

Prika: Any background noise.

Prika: After the Speakers' remarks, there will be a question and answer period.

Prika: In the interest of time questions will be limited to one initial and one follow up question.

Prika: In today's conference call certain matters discussed may constitute forward looking statements actual results could differ materially from those projected in the forward looking statements due to a number of factors, including but not limited to those described in the forward looking statements and risk factors section in the <unk>.

Prika: Company's most recent Form 10-K, and other more recent filings made with the SEC.

Prika: There's 10% assumes no obligation to update any forward looking statements made during the call.

Prika: Thank you. Now it is my pleasure to introduce Ali Dibadj, Chief Executive Officer of Janus Henderson. So, Mr. Dibadj, you may begin your presentation.

Prika: Yeah.

Prika: Now it is my pleasure to introduce Alistair Budge, Chief Executive Officer, Jonathan Johnson Mr.

Prika: Mr. Bosch you may begin your conference.

Ali Dibadj: Welcome, everyone, and thank you for joining us today on Janus Henderson's first quarter 2024 earnings call. I'm Ali Dibadj, and I'm joined by our CFO, Roger Thompson.

Ali Dibadj: Welcome everyone and thank you for joining us today on Janus Henderson first quarter 2024 earnings call O'malley.

Ali Dibadj: And by our CFO Roger Thompson.

Ali Dibadj: At today's call, I'll start with some thoughts on the quarter before handing it over to Roger. After Roger's comments, I'll provide a progress update on our strategic initiatives, including two transactions we announced earlier today that we believe will allow us to deliver tremendous value for our clients and shareholders. And then we'll take your questions following those prepared remarks. Turn to slide two.

Ali Dibadj: Today's call I'll start with some thoughts on the quarter before handing it over to Roger.

Ali Dibadj: After Roger's comments I'll provide a progress update on our strategic initiatives, including two transactions, we announced earlier today that we believe will allow us to deliver tremendous value for our clients and shareholders and then we will take your questions. Following those prepared remarks.

Ali Dibadj: Turning to slide two.

Ali Dibadj: Global equity market returns were strong in the first quarter, including in the U.S., where the S&P 500 touched record highs. However, despite these strong returns, the market backdrop is uncertain, with increasing investor expectations for a higher-for-longer rate environment, stickier inflation, and geopolitical conflicts in Eastern Europe and the Middle East. The strong equity markets, alpha generation provided by a world-class investment team, the exceptional service provided by our client teams, and importantly, and often overlooked, the productivity of our IT and operations teams, as well as our regulatory, risk, legal, finance, and other teams, enabled us to deliver a good set of quarterly results.

Ali Dibadj: Global equity market returns were strong in the first quarter, including in the U S where the S&P 500 touched record highs despite.

Ali Dibadj: Despite these strong returns the market backdrop is uncertain with increasing investor expectations for a higher for longer rate environment, stickier inflation and geopolitical conflicts in eastern Europe, and the middle East.

Ali Dibadj: The strong equity markets Alpha generation provided by a world class investment team. The exceptional service provided by our client teams and importantly, an often overlooked the productivity of our I T and operation teams as well as our regulatory risk legal finance and other teams enabled us to deliver a good set of quarterly results.

Ali Dibadj: Indeed, investment performance is off to a very good start in 2024, resulting in at least 60% of assets beating respective benchmarks on a 1, 3, 5, and 10-year basis. Assets under management increased 5% to $352.6 billion, which is the highest quarterly AEM figure in two years. First quarter flows were negative $3 billion, in line with expectations.

Ali Dibadj: Indeed investment performance is off to a very good start in 2024, resulting in at least 60% of assets, beating respective benchmarks on a 135 and 10 year basis.

Ali Dibadj: Assets under management increased 5% to $352 $6 billion, which is the highest quarterly figure in two years.

Ali Dibadj: First quarter flows were negative $3 billion in line with expectations. The net flow results reflect improvement in our higher fee intermediary channel, particularly EMEA intermediary in Q1, where if you recall, we said we'd focus this year all institutional net flows were impacted by a few larger redemptions in the first quarter.

Ali Dibadj: The net flow results reflect improvement in our higher fee intermediary channel, particularly EMEA intermediary in Q1, where, if you recall, we said we would focus this here, while institutional net flows were impacted by a few larger redemptions in the first quarter. Our financial results remain solid. Positive markets, coupled with our performance delivered by our investment teams, plus expense management and increased productivity by all our teams at Janus Henderson, resulted in an adjusted diluted EPS of 71 cents, a 29% increase compared to the first quarter of 2023.

Ali Dibadj: Our financial results remained solid positive markets, coupled with outperformance delivered by investment teams plus expense management and increased productivity by all our teams at Janus Henderson resulted in an adjusted diluted EPS of <unk> 71.

Ali Dibadj: A 29% increase compared to the first quarter of 2023.

Ali Dibadj: Our financial performance and strong balance sheet continue to provide us with the flexibility to invest in the business, both organically and inorganically, and return cash to shareholders. In summary, investment performance and financial results are strong. We have key areas of flow momentum in our business and still have much work to do to become consistent. We have a strong and stable balance sheet, and we continue to execute our strategy, which I'll talk more about later in the presentation. I'll now turn the call over to Roger to run you through the detailed financials.

Ali Dibadj: Our financial performance and strong balance sheet continues to provide us the flexibility to invest in the business, both organically and Inorganically and return cash to shareholders.

Roger: In summary investment performance and financial results are strong with key areas of flow momentum in our business and still have much work to do to become consistent.

Roger: We have a strong and stable balance sheet, and we continue to execute our strategy, which I'll talk more about later in the presentation.

Ali Dibadj: I'll now turn the call over to Roger to run me through the detailed financial results.

Roger Thompson: Thank you Ali and thank you again to everyone for joining us on today's call. Starting on slide three, investment performance. As Ali mentioned, investment performance versus benchmarks remained solid, with at least 60% of AUM beating their respective benchmarks over all time periods.

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

Roger Thompson: Starting with slide three and investment performance.

Roger Thompson: That's all he mentioned investment performance versus benchmark remained solid with at least 60% of our U M, reaching their respective benchmarks over all time periods.

Roger Thompson: Backing up the strong long-term numbers, we're pleased to report that the one-year number improved to 70% compared to 44% in the prior quarter, primarily driven by our equity and multi-asset capabilities. In equities, the improvement was driven primarily by the US concentrated growth, international alpha, and global alpha strategies. In the multi-asset capability, the balance strategy, which is the vast majority of assets in this bucket, moved back above its benchmark on a one-year basis and is now ahead of its benchmark across all time periods. Performance is strong against Pears, being in the top Morningstar quartile over 1, 3, 5 and 10 year time periods.

Roger Thompson: Backing up the strong long term numbers, we're pleased to report that the one year number improved to 17% compared to 44% in the prior quarter, primarily driven by our equity and multi asset capabilities.

Roger Thompson: In equities the improvement was driven primarily by the U S concentrated growth international Alpha and global Alpha strategies.

Roger Thompson: And the multi asset capability, the balanced strategy, which is the vast majority of assets in this bucket move back above its benchmark on a one year basis and is now ahead of its benchmark across all time periods.

Roger Thompson: Strong against peers being at the top Morningstar quartile over 135, and 10 year time periods.

Roger Thompson: We see the balance strategy as a focal point for many of our clients who want to take on more risk but also want the balance to be fixed income, which now delivers higher yields. Elsewhere, fixed income performance versus benchmark remains strong. We believe our fixed income performance and differentiated breadth of products across different vehicles and regions positions us well for the anticipated movement into fixed income as interest rates potentially fall and bonds provide diversification benefits to clients.

Roger Thompson: We see the balanced strategy as a focal point for many of our clients who want to take a more risk, but also want the ballast of fixed income, which now delivers higher yield.

Roger Thompson: Elsewhere fixed income performance versus benchmark remains strong.

Roger Thompson: We believe our fixed income performance and differentiated breadth of products across different vehicles and regions positions us well for the anticipated movements into fixed income as interest rates potentially for our bonds provides diversification benefits to clients.

Roger Thompson: Overall investment performance compared to peers continues to be competitively strong, with at least 66% of AUM in the top two Morningstar quartiles over the 1, 3, 5 and 10 year time periods. Slide 4 shows total company flows by quarter, which would net outflows of $3 billion for the quarter. Slide five is closed by client type.

Roger Thompson: Overall investment performance compared to peers continues to be competitively strong with at least 66% of AUM in the top two morningstar quartile over the 135 and 10 year time periods.

Roger Thompson: Slide four shows total company flows by quarter, which would net outflows of $3 billion for the quarter.

Roger Thompson: Slide five is flows by client type.

Roger Thompson: Net flows for the higher-fee intermediary channel were positive $1 billion for the first quarter, supported by a 25% increase in gross sales year-over-year. The U.S. Intermediary Channel was positive for the third consecutive quarter, with net inflows into several strategies, including most of the active ETFs, Multisector Income, Global Life Sciences, and the Biotech Innovation Hedge Fund. As we've spoken about previously, U.

Roger Thompson: Net flows for the highest the intermediary channel the positive $1 billion for the first quarter supported by a 25% increase in gross sales year over year.

Roger Thompson: The U S. Intermediary channel was positive for the third consecutive quarter with net inflows into several strategies, including most of the active Etfs.

Roger Thompson: Sector income global life Sciences, and biotech innovation hedge fund.

Roger Thompson: Intermediary is a key initiative under our Protect and Grow strategic pillar. We're pleased by the results for the quarter and that we're gaining market share. During the quarter, we also expanded the sales reach of the Biotech Innovation Hedge Fund and announced a strategic partnership with the Forum Investment Group to market the Forum Real Estate Investment Fund, a hybrid public and private real estate investable fund for which Janus Henderson has managed the commercial MBS leave since its inception in 2019. This distribution partnership will provide access to differentiated products to our clients in an investor-friendly structure.

Roger Thompson: As we've spoken about previously U S. Intermediary is a key initiative under our protect and grow strategic pillar.

Roger Thompson: We're pleased by the results for the quarter and that we're gaining market share.

Roger Thompson: During the quarter.

Roger Thompson: We also expanded the sales for each of the biotech innovation hedge fund and announced a strategic partnership with a form of investment group to market for real estate investment fund a hybrid public and private real estate in multiple fund of which channels Henderson has managed the commercial MBS leave since its inception in 2019.

Roger Thompson: This distribution partnership will provide access to differentiated products to our clients in an investor friendly structure.

Roger Thompson: Moving to the EMEA and Latin American intermediary segments, we are expanding our strategic efforts. Net outflows improved significantly compared to the prior quarter. Within the region, both continental Europe and Latin America delivered positive flows for the quarter. Intermediary flows in Asia were also positive. Institutional net outflows were $3.1 billion, which were primarily driven by the EMEA region and included two large redemptions of $1.5 billion in the Global High Yield Strategy and $1.2 billion in the Global Commodities Enhanced Index Strategy.

Roger Thompson: Moving to the EMEA and Latin American intermediary segments, we're expanding our strategic efforts, that's outflows improved significantly compared to the prior quarter.

Roger Thompson: Within the region, both Continental Europe, and Latin America delivered positive flows for the quarter.

Roger Thompson: Immediately flows in Asia were also positive.

Roger Thompson: Institutional net outflows were $3 $1 billion, which were primarily driven by the EMEA region and include two large redemptions of one and a half billion dollars and the global high yield strategy.

Roger Thompson: Put $2 billion and the global commodities and halted index strategy.

Roger Thompson: We talked publicly about the need to replenish a sustainable pipeline. We're pleased with the work our distribution team is doing, and the leading indicators suggest more and better client interactions and discussions. But the maturation of the pipeline is taking time.

Roger Thompson: We talked publicly about the need to replenish a sustainable pipeline. We're pleased with the work our distribution team is doing.

Roger Thompson: And the leading indicators suggest more and better client interactions and discussions with the maturation of the pipeline is taking time.

Roger Thompson: Net outflows for the self-directed channel, which includes direct and supermarket investors, were $900 million, compared to $1.1 billion in the prior quarter. Slide 6 is Flows in the Course by Capability. Equity flows were negative $1.1 billion, improving from negative $3.2 billion in the fourth quarter. The improvement came primarily from the EMEA region in both the intermediary and institutional channels. Net inflows for fixed income were $100 million. Several strategies contributed to positive fixed income flows in the intermediary channel, including fixed income ETFs, which had positive flows of $2.6 billion in the quarter.

Roger Thompson: That's outflows for the self directed channel, which includes direct to seek market investors with $900 million compared to $1.1 billion in the prior quarter.

Roger Thompson: Slide six is flows and of course by capability.

Roger Thompson: Equity flows were negative $1 $1 billion, improving from negative $3 $2 billion in the fourth quarter.

Roger Thompson: The improvement came primarily for the EMEA region in both the intermediary and institutional channels.

Roger Thompson: It's in place of fixed income where $100 million.

Roger Thompson: Central strategies contributed to positive fixed income flows in the intermediary channel, including the fixed income Etfs, which had positive flows of $2 $6 billion in the quarter.

Roger Thompson: Other strategies contributing to the positive flows were multi-sector credits, such as Core Plus Fixed Income and US Bind Maintained Credit, and offsetting these inflows or net outflows in the lower fee institutional channel, including the global high yield redemption that I just mentioned. Total net outflows for the multi-asset capability were $800 million. And finally, net outflows in the alternatives capability were $1.2 billion, driven by the institutional redemption of the Global Commodities Enhanced Index Strategy.

Roger Thompson: Other strategies contributing to the positive flows with multi sector credit core plus fixed income and U S bond maintain credits.

Roger Thompson: Offsetting these inflows when net outflows in the lower fee institutional channel, including the global high yield redemption that I just mentioned.

Roger Thompson: Yeah.

Roger Thompson: Total net outflows to the multi asset capability.

Roger Thompson: $800 million and finally net outflows in the alternatives capability with $1 $2 billion driven by the institutional redemption of the global commodities enhanced index strategy.

Roger Thompson: Yeah.

Roger Thompson: Moving on to the financials, Slide 7 is our US GAAP Statement of Income. Before moving on to adjusted financial results, GAAP results for the Quarter include a non-operating, non-cash item related to the release of accumulated foreign currency translation gains due to the liquidation of several JHG entities. This amount is removed from Adjusted Results.

Roger Thompson: Moving onto the financials slide seven is our U S GAAP statement of income.

Roger Thompson: Before moving on to adjusted financial results GAAP result.

Roger Thompson: Quarter, including nonoperating noncash item related to the release of accumulated foreign currency translation gains due to the liquidation of several G. H T entities.

Roger Thompson: This amount is removed from adjusted results as we continue to simplify our legal entity structure there'll be additional releases of accumulated foreign currency translation reserves in future quarters, which will also be nonoperating, no cash, but will likely be losses, and similarly will be excluded from adjusted results.

Roger Thompson: As we continue to simplify our legal entity structure, there will be additional releases of accumulated foreign currency translation reserves in future quarters, which will also be non-operating and non-cash but will likely be losses, and similarly will be excluded from adjusted results. Moving to slide 8 and the adjusted financial results. Adjusted operating results are lower compared to the prior quarter, primarily due to the significant annual performance fees realized in the fourth quarter. More relevantly, compared to the first quarter a year ago, operating income and EPS are up 21% and 29%, respectively, primarily due to higher average AUM, operating leverage, and good investment performance.

Roger Thompson: Continuing to slide eight and the adjusted financial results.

Roger Thompson: Adjusted operating results, a lower compared to the prior quarter, primarily due to the significant annual performance fees realized in the fourth quarter more relevantly compared to the first quarter a year ago operating income and EPS are up 21% and 29% respectively, primarily due to higher average AUM operate.

Roger Thompson: Leverage and good investment performance.

Roger Thompson: Looking at the detail.

Roger Thompson: Adjusted revenue decreased 6% compared to the prior quarter, primarily due to lower seasonal performance fees, which were partially offset by higher adjusted management fees. Adjusted revenue increased 11% over the prior year, primarily as a result of higher average assets and improving U.S. mutual fund performance fees. The net management fee margin was stable at 48.7 basis points, level with, or above, each of the prior three quarters. This is a good result and a differentiating position compared to many competitors, considering the fee pressures experienced in the asset management industry.

Roger Thompson: Adjusted revenue decreased 6% compared to the prior quarter, primarily due to lower seasonal performance fees, which were partially offset by higher adjusted management fees.

Roger Thompson: Adjusted revenue increased 11% over the prior year, primarily as a result of higher average assets and improving U S Mutual fund performance fees.

Roger Thompson: Net management fee margin was stable at 48.7 basis points level with or above each of the prior three quarters. This is a good result, and a differentiating position compared to many competitors considering the fee pressures experienced in the asset management industry.

Roger Thompson: While we're not immune to those fee pressures, we do see that our competitively resilient fee rate is a differentiator versus many of our peers, given the mix of capabilities where we're seeing success, particularly in our higher-fee intermediary business.

Roger Thompson: While we're not immune to those fee pressures, we do see that I'll competitively resilient fee rate is a differentiator versus many of our peers given the mix of capabilities, where we're seeing success, particularly in our higher fee intermediary business.

Roger Thompson: Continuing on to expenses, adjusted operating expenses in the first quarter were $299 million, a slight decrease compared to the prior quarter, reflecting continued expense discipline. Adjusted LTI was up 18% compared to the prior quarter, largely due to seasonal payroll taxes triggered by the annual vesting in the quarter. In the appendix, we provided the usual table on the expected future amortization of existing grants for you to use in your model. The first quarter adjusted comp to revenue ratio was seasonally higher at 48.2%, which is down from 50.1% in the first quarter of last year. The higher rate in the first quarter is primarily due to payroll taxes on annual LTI vesting and the beginning of year reset on payroll taxes and retirement contributions.

Roger Thompson: Continuing on to expenses.

Roger Thompson: Adjusted operating expenses in the first quarter with $299 million, a slight decrease compared to the prior quarter.

Roger Thompson: Reflecting continued expense discipline.

Roger Thompson: Adjusted LTI was up 18% compared to the prior quarter largely due to seasonal payroll taxes triggered by the annual vesting in the quarter.

Roger Thompson: The appendix, we provided the usual table on the expected future amortization of existing grants for you to use in your models.

Roger Thompson: The first quarter adjusted comp to revenue ratio.

Roger Thompson: With seasonally higher at 48, 2%, which is down from 51% in the first quarter of last year.

Roger Thompson: The higher rates in the first quarter is primarily due to the payroll taxes on annual LTI vesting.

Roger Thompson: Beginning of year resets on payroll taxes and retirement contributions.

Roger Thompson: Our 2024 expectation of an adjusted compensation ratio range of 43% to 45% remains unchanged. Adjusted non-comp operating expenses decreased 11% compared to the prior quarter, primarily due to lower G&A expenses. Lower than anticipated non-compensation costs in the quarter are due to the timing of our expenses. We still anticipate adjusted non-compensation annual growth of mid to high single digits compared to the prior year, which suggests significant acceleration in our non-compensation costs for the remaining three quarters of the year, given we expect non-compensation expenses to increase as a result of investment supporting areas of opportunity in our business.

Roger Thompson: Our 2020 for expectation of an adjusted compensation ratio range of 43% to 45% remains unchanged.

Roger Thompson: Yeah.

Roger Thompson: Adjusted non comp operating expenses decreased 11% compared to the prior quarter, primarily due to lower G&A expenses.

Roger Thompson: Lower than anticipated non compensation costs in the quarter is due to the timing of our expenses, we still anticipate adjusted non compensation annual growth of mid to high single digits compared to the prior year, which suggests significant acceleration in our non compensation costs for the remaining three quarters of the year, given we expect non compensation expenses to <unk>.

Roger Thompson: Kris as a result of investments supporting areas of opportunity in our business.

Roger Thompson: As I said earlier, while Adjusted Operating Income decreased 18% compared to the prior quarter, it increased 21% over the same period a year ago to $128 million. Our first quarter adjusted operating margin was 30%, an increase of 250 basis points from a year ago, demonstrating the leverage in our business.

Roger Thompson: As I said earlier, while adjusted operating income decreased 18% compared to the prior quarter. It increased 21% over the same period, a year ago to $128 million.

Roger Thompson: Our first quarter adjusted operating margin was 30%.

Roger Thompson: An increase of 250 basis points from a year ago, demonstrating the leverage in our business.

Roger Thompson: Adjusted diluted EPS was $0.71, down 13% from the prior quarter, but up 29% from the first quarter of 2023. First quarter adjusted diluted EPS primarily reflects higher operating income and benefits below the line from strong alpha generation on the JHG portion of our seed book, active management of our balance sheet, and a slightly lower tax rate. Skip over slide 9 and move to slide 10 to look at our liquidity profile. Our capital position remains strong.

Roger Thompson: Adjusted diluted EPS was <unk> 71 cents down 13% from the prior quarter, but up 29% for the first quarter of 2023.

Roger Thompson: First quarter adjusted diluted EPS, primarily reflects higher operating income and benefits below the line from strong alpha generation or the J H D portion about seabrook active management of our balance sheet and a slightly lower tax rate.

Roger Thompson: Skipping over to slide nine I'm moving to slide 10 to look at our liquidity profile.

Roger Thompson: Our capital position remains strong cash and cash equivalents with $900 million as at the 31st of March just lower from the end of the year, primarily from the payment of annual variable compensation.

Roger Thompson: Cash and cash equivalents were $900 million as of the 31st of March, which is lower from the end of the year, primarily due to the payment of annual variable compensation. The first quarter cash position is typically our lowest given seasonal cash needs.

Roger Thompson: First quarter cash position is typically our lowest given the seasonal cash needs.

Roger Thompson: Compared to the same period a year ago, our cash and cash equivalents are 8% higher. During the quarter, we funded our quarterly dividend and repurchased 2.7 million shares for $81 million. As of the 31st of March, there were $7 million remaining under the existing buyback authorization, which was completed in April.

Roger Thompson: Compared to the same period, a year ago, our cash and cash equivalents or 8% higher.

Roger Thompson: During the quarter, we funded our quarterly dividend and repurchased two 7 million shares $81 million.

Roger Thompson: As at the 31st of March there was $7 million remaining under the existing buyback authorization, which was completed in April.

Roger Thompson: This return of excess cash is consistent with our capital allocation framework. We'll look to return capital to shareholders where there isn't an immediately more compelling investment, either organically or inorganically, in the business. The board has declared a 39 cents per share dividend to be paid on the 29th of May to shareholders of record as at the 13th.

Roger Thompson: This return of excess cash is consistent with our capital allocation framework, we will look to return capital to shareholders, where there isn't an immediately more compelling investments either organically or inorganically in the business.

Roger Thompson: The board has declared a <unk> 39 per share dividend to be paid on the 29th may to shareholders of record as at the 13th of May.

Roger Thompson: Finally, I'm pleased to say that our improving financial results and cash flow generation, along with a strong and stable balance sheet, have enabled the Board to authorise a new share buyback program of up to $150 million to be completed by April 2025. The Buy Back Program does not change our desire and pursuit to diversify our business through M&A where clients want us to do so. At this stage, our liquidity profile allows us to do both, as we've demonstrated by the acquisitions announced earlier today that Ali will discuss further in a moment.

Roger Thompson: Finally, I'm pleased to say that our improving financial results and cash flow generation, along with a strong and stable balance sheet has enabled the board to authorize a new share buyback program of up to $150 million to be completed by April 2025.

Roger Thompson: The buyback program does not change our design and pursuit to diversify our business through M&A, where clients want us to do so.

Roger Thompson: At this stage our liquidity profile allows us to do both as we've demonstrated by the acquisitions announced earlier today that Ali will discuss further about in a moment.

Roger Thompson: Finally, slide 11 looks at our return on capitalist shareholding. We've been disciplined in consistently returning excess capital to shareholders, as the historical data reflects. We've maintained a healthy quarterly dividend and, since 2018, have reduced shares outstanding by almost 20%. Our return of capital reflects our positive financial outlook, our cash flow generation, and our strong and stable balance sheet. We believe that our buybacks and stable dividends do not impair our ability to execute M&A should further opportunities arise, and we'll continue to actively look to buy, build, or partner to diversify where clients give us the right to win. With that, I'd like to turn it back over to Ali to give us an update on our strategic progress. Thanks, Roger.

Roger Thompson: Finally, slide 11 looks at our return of capital to shareholders.

Roger Thompson: Being disciplined and consistently returning excess capital to shareholders as the historical data reflects we've maintained a healthy quarterly dividend and since 2018 have reduced shares outstanding by almost 20%.

Roger Thompson: Our return of capital reflects our positive financial outlook, our cash flow generation and a strong and stable balance sheet.

Roger Thompson: We believe the buybacks and stable dividends did not impair our ability to execute M&A should further opportunities arise and we will continue to actively look to buy build or partner to diversify what clients give us the right to win.

Roger Thompson: With that I'd like to turn it back over to Ali to give us an update on our strategic progress.

Ali Dibadj: Thanks Roger. Turning to slide 12, a reminder of our three strategic pillars of protecting GrowerCorps 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 U.S. intermediary business and the progress we have made in capturing market share.

Ali Dibadj: Thanks Roger.

Ali Dibadj: Turning to slide 12, and a reminder of our three strategic pillars of protect and grow our core businesses amplify our strengths not fully leverage and diversify where clients give us the right to win.

Ali Dibadj: We are in the execution phase and we believe this strategic vision lead to consistent organic revenue growth over time.

Ali Dibadj: And protecting grow we've talked previously about the importance of protecting and growing our U S intermediary business and the progress we've made in capturing market share.

Ali Dibadj: We are now working to shift the strategic plan to drive change and improve results in the EMEA and Latin American intermediary channels, and early trends are encouraging, with much more work to do to deliver steady results.

Ali Dibadj: We're now working to shift the strategic plan to drive change and improved results in the EMEA and Latin American intermediary channels and early trends are encouraging with much more work to do to deliver steady results.

Ali Dibadj: Within Amplify, we've talked about our institutional and diversified alternatives businesses and our product development and expansion efforts, such as our buildout of active ETFs in the U.S. Over the next few slides, I'll highlight the exciting progress we've made in our efforts to amplify and diversify the business, including an update on Perficor Capital and two transactions we announced earlier today, the acquisition of Tabula Investment Management and a Moving to slide 13, and an update on our joint venture, Privacore Capital, a trusted partner to alternative managers in the democratization of private alternatives for wealth management clients.

Ali Dibadj: Within amplify we've talked about our institutional and diversified alternatives businesses and our product development and expansion efforts such as our build out of active Etfs in the U S.

Ali Dibadj: Over the next few slides I'll highlight the exciting progress we've made in our efforts to amplify and diversify the business, including an update on perfect or capital and two transactions, we announced earlier today the acquisition of Tabular investment management, and a strategic partnership with N BK wealth and the acquisition of their private investments team and BK Caf.

Ali Dibadj: <unk>.

Ali Dibadj: Moving to slide 13, and an update on our joint venture critical capital a trusted partner to alternative managers and the democratization of private alternatives with wealth management clients.

Ali Dibadj: Quo Capital has made substantial progress in its mission to deliver institutional quality alternative investment products to private wealth clients through its open architecture distribution platform. I told you last quarter that Privacore was partnering with a premier, almost $200 billion alternative asset manager, and it's currently in the market to distribute its first product. Privacore is about to partner with a second firm, a well-known technology investment firm, in order to represent them in their fundraising efforts.

Ali Dibadj: Political capital has made substantial progress in its mission to deliver institutional quality alternative investment products to private wealth clients through its open architecture distribution platform.

Ali Dibadj: I told you last quarter that perfect car was partnering with our premier almost $200 billion alternative asset manager and it's currently in the market to distribute its first product.

Ali Dibadj: Critical or is about to partner with the second firm, a well known technology investment firm in order to represent them in their fund raising efforts.

Ali Dibadj: In addition, Privacore is working with an alternative manager that oversees more than $50 billion in assets globally and has filed registration statements with Privacore for two new alternative funds. We look forward to providing additional details on these funds on future calls. Established last June, in less than a year, Privikor has put together a highly experienced team and is in the market placing products, is preparing to launch new alternative products, and is having active conversations with several high-quality asset managers interested in partnering with Provo.

Ali Dibadj: In addition.

Ali Dibadj: <unk> is working with an alternatives manager that oversees more than $50 billion in assets globally, and that's filed registration statements with protocol for two new alternative funds, we look forward to providing additional details for these funds on future calls.

Ali Dibadj: Established last June in less than a year.

Ali Dibadj: The court has put together a highly experienced team is in the market, placing products is filing to launch new alternative products and having active conversations with several high quality asset managers interested in partnering with protocol.

Ali Dibadj: We are excited about the significant progress to date and the opportunities for perfect core capital to launch integral and tender offer funds and develop custom products for wealth clients. In addition to placement.

Ali Dibadj: We are excited about the significant progress to date and the opportunities for Privacore Capital to launch interval and tender offer funds and develop custom products for wealth clients in addition to placement. Pervicore is in its initial stages of meaningful product development, and we anticipate that it will be a key player in the democratization of alternatives.

Ali Dibadj: <unk> is in its initial stages of meaningful product development, and we anticipate that it'll be a key player in the democratization of alternatives.

Ali Dibadj: I look forward to sharing more, including the details of the new launches with our second quarter results. Now turning to slide 14 for more background on our pending acquisition of Tabula Investment Management, announced earlier today. Tabula is a leading independent ETF provider in Europe, with $500 million in assets under management across nine usage products, primarily in fixed income and a sustainability strategy.

Ali Dibadj: Forward to sharing more including the details of the new launches with our second quarter results.

Ali Dibadj: Now turning to slide 14 for more background on our pending acquisition of Tabular investment management announced earlier today.

Ali Dibadj: Tabular is a leading independent ETF provider in Europe with $500 million in assets under management across nine UCITS products, primarily in fixed income and our sustainability strategies with an institutional grade investment management business led by an extremely experienced management team.

Ali Dibadj: It is an institutional-grade investment management business led by an extremely experienced management team. The European ETF market is undergoing a significant transformation, growing considerably, and mirroring trends observed in the U.S. market, where active management is increasingly incorporated in the ETF wrapper. This shift represents a considerable growth opportunity for asset managers seeking to broaden the way in which clients access their investment capabilities and capitalize on evolving client preferences in the European market.

Ali Dibadj: The European ETF market is undergoing a significant transformation grown considerably and mirroring trends observed in the U S market, where active management is increasingly incorporated in the ETF wrapper.

Ali Dibadj: This shift represents a considerable growth opportunity for asset managers seeking to broaden the way in which clients access their investment capabilities and capitalize on evolving client preferences in the European market.

Ali Dibadj: We believe this acquisition will allow Janus Henderson early access to this growing market and build on our extremely successful suite of active ETFs in the U.S., where Janus Henderson is the fourth largest global provider of active fixed income ETFs by assets under management. We believe partnering with Tabula will enable Janus Henderson to respond to client demand globally for its exceptional investment acumen to include an ETF wrapper. In particular, Janus Henderson is seeking to enhance its partnership with its UK and European client base, which is increasingly looking at active ETFs, and to further expand its reach in key growing markets in Latin America, the Middle East, and APAC, where there's rising demand for UCS ETFs and our existing. Turn to slide 15.

Ali Dibadj: We believe this acquisition will allow Janus Henderson early access to this growing market and build on our extremely successful suite of active Etfs in the U S where genus Henderson is the fourth largest global provider of active fixed income ETF assets under management.

Ali Dibadj: We believe partnering with tabular when enabled Janus Henderson to respond to client demand globally for its exceptional investment acumen to include an ETF wrapper.

Ali Dibadj: In particular, Janus Henderson is seeking to enhance its partnership with its UK and European client base, which is increasingly looking at active Etfs.

Ali Dibadj: And to further expand its reach in key growing markets in Latin America, the middle East and APAC, where theres rising demand for UCITS Etfs and our presence is increasing.

Ali Dibadj: Turning to slide 15. In addition to tabular, we also announced a strategic partnership with National Bank of Kuwait groups, and BK wealth and the pending acquisition of their private investment team and BK capital partners, which allows Janus Henderson to enter the emerging markets private capital space.

Ali Dibadj: In addition to Tabula, we also announced a strategic partnership with the National Bank of Kuwait Group's NBK Wealth and the pending acquisition of their private investment team, NBK Capital Partners, which allows Janus Henderson to enter the emerging markets private capital space. NBK Capital is a leading alternative investments manager across multiple private capital asset classes in emerging markets, including the Middle East and North Africa. They've secured $1.1 billion in capital commitments to date and have built an 18-year track record of strong investment performance.

Ali Dibadj: And BK capital is a leading alternative investment manager across multiple private capital asset classes in emerging markets, including the middle East and North Africa.

Ali Dibadj: Basically you're at $1 $1 billion in capital commitments to date and have built an 18 year track record of strong investment performance.

Ali Dibadj: Janus Henderson has a well-established history of investing in emerging markets, with capabilities in both emerging market equity and, more recently, emerging market debt. As investors look across the global market for differentiated investment opportunities, emerging markets remain under-penetrated for private capital solutions and therefore present a key strategic growth area.

Ali Dibadj: Janus Henderson has a well established history of investing in emerging markets with capabilities in both the emerging market equity and more recently emerging market debt at.

Ali Dibadj: As investors look across the global market for differentiated investment opportunities emerging markets remain underpenetrated for private capital solutions, and therefore present, a key strategic growth area.

Ali Dibadj: We believe partnering with NBK Wealth will provide Janus Henderson with the opportunity for early entry into this rapidly expanding market, where there is increasing appetite for both sovereigns and corporations. In addition to enhancing product offerings for existing clients, the partnership also provides Janus Henderson with access to engage with new clients that include some of the largest and fastest growing pools of capital, such as Middle East and Asian sovereign wealth funds and pensions, who want to actively invest globally, thereby expanding Janus Henderson's footprint in the region.

Ali Dibadj: We believe partnering with N V K, well will provide Janus Henderson the opportunity for early entry did this rapidly expanding market, where there is increasing appetite for both sovereigns and corporates.

Ali Dibadj: In addition to enhanced product offerings for existing clients. The partnership also provides Janus Henderson with the access to engage with new clients that includes some of the largest and fastest growing pools of capital such as the middle East and agents sovereign wealth funds and pension who want to actively invest globally, thereby expanding our footprint in the region.

Ali Dibadj: Both Tabula and NBK Capital are prime examples of our strategic pillars of amplify and diversify, respectively. Tabula's existing infrastructure and ecosystem offers Janus Henderson instant access to an institutional platform that we believe will immediately position the firm as a trusted and credible player in the growing European ETF market and allow us to amplify our existing investment skills in a sought-after way. NBK Capital gives Janus Henderson a private investments capability, allowing us to better serve our clients who are increasingly seeking differentiated investments in private credit, including evolving opportunities in emerging economies, and positions the firm as a pioneer in anticipating and embracing this growing trend.

Ali Dibadj: Both tabular and BK capital are prime examples of our strategic pillars of amplify and diversify respectively.

Ali Dibadj: Tabulate the existing infrastructure and ecosystem offers Janus Henderson instant access to an institutional platform that we believe will immediately position the firm as a trusted incredible player in a growing European ETF market and allow us to amplify our existing investment skills and a sought after wrapper.

Ali Dibadj: And BK capital gives Janus Henderson, a private investments capability, allowing us to better serve our clients are increasingly seeking differentiated investments in private credit, including evolving opportunities in emerging economies and positions the firm as a pioneer in anticipating and embracing this growing trend.

Ali Dibadj: Importantly, Privacore Capital, Tabula, and NBK Capital are only the beginning of what we expect to be more well-thought-out acquisitions and partnerships of varying sizes to meet our clients' needs to support the growth of Janus Henderson. As I've said previously, we'll be disciplined in identifying where to buy, build, or partner. We want people who are like-minded in terms of culture, investment mindset, and client service, which is what we believe we have in Privacore Capital, Tabula, and BKK. Now I'm wrapping up on slides.

Ali Dibadj: Importantly, perfect core capital Tabular and BK capital are only the beginning of what we expect to be more well thought out acquisitions and partnerships are varying sizes to meet our clients' need to support the growth of Janus Henderson.

Ali Dibadj: As I've said previously we will be disciplined in identifying where to buy build or partner. We want people who are like minded in terms of culture and investment mindset and client service, which is what we believe we have an <unk> capital tabular and VK capital.

Ali Dibadj: Now wrapping up on slide 16 in conclusion, we are proud of the progress made during the first quarter investor.

Ali Dibadj: In conclusion, we are proud of the progress made during the first quarter. The investment performance is solid, including a meaningful improvement in short-term performance. Adjusted diluted EPS increased 29% compared to last year, reflecting strong markets, alpha generation, expense management, and increased productivity. A strong balance sheet and financial results allow us to return cash to shareholders through dividends and share buybacks, including $145 million in the first quarter, declaring a $0.39 per share quarterly dividend, and approving a new share buyback authorization of up to $150 million, all while continuing to reinvest in the business for future growth.

Ali Dibadj: Investment performance is solid including a meaningful improvement in short term performance adjusted diluted EPS increased 29% compared to last year, reflecting strong markets Alpha generation expense management and increased productivity.

Ali Dibadj: Our strong balance sheet and financial results allow us to return cash to shareholders through dividends and share buybacks, including $145 million in the first quarter, declaring a <unk> 39 per share quarterly dividend and approving a new share buyback authorization of up to $150 million.

Ali Dibadj: All while continuing to reinvest in the business for future growth.

Ali Dibadj: We are executing our strategic objectives. U.S. intermediary flows are positive, and our early strategic efforts in the EMEA and Latin American intermediary segments have resulted in improved intermediary flows. We continue to work on our institutional channel, and we have amplified and diversified our business with client-led inorganic bolt-on acquisitions. We expect that these acquisitions are only the beginning. The M&A pipeline remains active, and we continue to look to buy, build, or partner where clients give us the right to further diversify the business.

Ali Dibadj: We are executing our strategic objectives.

Ali Dibadj: S. Intermediary flows are positive in our early strategic efforts in EMEA and Latin America intermediary segments have resulted in improved intermediary flows. We continue to work on our institutional channel, we amplified and diversified our business with the client led inorganic bolt on acquisitions.

Ali Dibadj: We expect that these acquisitions are only the beginning the M&A pipeline remains active and we continue to look to buy build or partner where clients give us the right to further diversify the business.

Ali Dibadj: Looking forward, our focus is unwaveringly to help clients define and achieve superior financial outcomes and deliver desired results for our clients, shareholders, employees, and all our stakeholders. Let me turn the call back over to the operator for your question.

Ali Dibadj: Looking forward our focus is unwaveringly to help clients to finance chiefs up here financial outcomes and deliver desired results for our clients shareholders employees and all our stakeholders.

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

Ali Dibadj: Yeah.

Prika: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If you change your mind at any time, please press star 2. And as a reminder...

Speaker Change: Thank you we will now begin the question and answer session.

Prika: Please ensure to unmute locally when asking your question. And please note, in the interest of time, questions will be limited to one initial and one follow-up question. We will pause for a moment whilst questions are registered. The first question is from the line of Craig Siegenthaler from Bank of America in Maryland.

Prika: If you would like to ask a question. Please press star followed by one on your telephone keypad.

Prika: If you change your mind any time, please press star two.

Prika: And as a reminder.

Craig Siegenthaler: Sure we can meet likely when asking your question and please in the interest of time questions will be limited to one initial and one follow up question.

Prika: We will pause for mainland Carl's question, Todd I just did.

Prika: Okay.

Craig Siegenthaler: The first question.

Craig Siegenthaler: Is from the line, it's Craig seeking a hammer, sometimes because of Mcmahon.

Prika: Yeah.

Prika: Yeah.

Craig Siegenthaler: Good morning Ali.

Craig Siegenthaler: Hi, Greg.

Craig Siegenthaler: So my question is on the N V K in tabular deals and actually first just congrats on those two and the foreign partnership which is a couple of weeks ago, but I.

Craig Siegenthaler: My question is how.

Craig Siegenthaler: How do you finance them, including any potential.

Craig Siegenthaler: Future payments like earn outs.

Craig Siegenthaler: How much did they cost in total and then remind us how you think about valuation when deploying capital strategically.

Prika: Yeah.

Ali Dibadj: I'm happy to start with the broader views, and Roger can go through them more. Look, we are very excited about these deals. It allows us to, both of them, as well as Privacore, allow us to skate to where the puck is going in a very client-led way and help us to amplify and diversify the business as we continue to protect and grow. We think they will deliver enormous value for our clients and important shareholders, given the economics, which I'll pass to Roger to... Yeah, so the financial terms aren't disclosed.

Craig Siegenthaler: I'm happy to start with the broader views and Roger can can go through it more.

Ali Dibadj: We are very excited about these deals.

Ali Dibadj: It allows us to both of them as well as private core allow us to skate to where the puck is going.

Ali Dibadj: And a very client in that way and help us to amplify and diversify the business as we continue to protect and grow.

Ali Dibadj: I think they all deliver enormous value for our clients and importing our shareholders given the economics, which I'll pass to Roger to go through in more detail.

Roger Thompson: Yeah, so the financial terms aren't disclosed, but they are relatively small transactions up front and all cash, and we'd expect them to be cash going forward. So that's fully factored into our calculations when we thought about buyback, for example, Craig. So, in addition to these deals, we also expect to increase capital a little bit this year, probably to do some ETF launches off the back of or certainly to do some ETF launches off the back of the tabular transaction and some other opportunities we see as well.

Roger Thompson: Yes, so the financial terms are disclosed.

Roger Thompson: But they are.

Roger Thompson: It'll be small transactions upfront cash and would expect to be cash going forward.

Roger Thompson: That's fully factored into.

Roger Thompson: Into our calculations when we thought about buyback for example, Craig.

Roger Thompson: So in addition to these deals we also expect.

Roger Thompson: To increase the capital a little bit this year, probably to do some ETF launches off the back of it we'll certainly do some ETF launches off the back of the tabular transaction and some other opportunities we see as well. So that's all factored in from a cash perspective, when we look forward in terms of things like the buyback.

Roger Thompson: So that's all factored in from our cash perspective when we look forward in terms of things like the buyback. Actually, just carrying on with the buyback as well, just probably preempting a question. But the buyback is a little bit more this year than last. We also buy back stock for all employee comp, so the buyback is fully accretive. And whilst the approval is for the year, that doesn't mean that we will necessarily take the entire year to do it, so hopefully, that concludes the cash capital part of the question, but I'm happy to take more later.

Roger Thompson: That's just carrying on the buyback as well.

Roger Thompson: Fully preempting the question.

Roger Thompson: The buyback is a little bit more this year than last.

Roger Thompson: I'll say buyback stock.

Roger Thompson: Full employee comp therefore, the buyback is pretty accretive.

Roger Thompson: And whilst the approval is for the year that doesn't mean that we will necessarily take the entire year to do it so hopefully that.

Roger Thompson: So that concludes the cash capital part of the question, but happy to take more later.

Speaker Change: Thank you Roger.

Prika: Your next question comes from Ken Worthington of J.P. Morgan.

Roger Thompson: Your next question comes from Ken Worthington with J P. Morgan.

Michael Cho: Hi Ali and Roger, this is Michael Cho, and for Ken, congratulations to me as well on the deal announcement.

Kenneth Worthington: Hi, good morning.

Michael Cho: Michael Cho in for Ken.

Michael Cho: Myself as well on the deal announcement I just one on an SDK to follow up here I mean, clearly Ali you can talk to a mek clearly CT scans as entry into the private capital space, but.

Ali Dibadj: I just want on NBK to follow up here. I mean, clearly, Ali, you talk through NBK, clearly supports Janus's entry into the EM private capital space. But longer term, how are you thinking about sizing that market opportunity for Janus? And how do you think about incremental capability to potentially address that opportunity adequately?

Ali Dibadj: But longer term, how you think about sizing that market opportunity for that and how do you think about incremental capability to potentially address that opportunity adequacy.

Ali Dibadj: Yeah, thanks for the question, Michael. We're pretty energized about the opportunity we see here. And again, it allows us really early entry into a market that is rapidly growing while we build on some foundational strengths that we have as we diversify. So remember, we have the emerging market equity business; we have an emerging market public debt business more recently. And building on top of that, now we have an emerging market private equity capability.

Ali Dibadj: Yes, thanks for the question Michael.

Ali Dibadj: We're pretty energized about the opportunity we see here and again it allows us.

Ali Dibadj: Really early entry into a market that is rapidly growing.

Ali Dibadj: While we build on some foundational strengths that we have as we diversify so remember we have the emerging market equity business, we have an emerging market public debt business more recently.

Ali Dibadj: And building on top of that now we have an emerging market privates capability and we see this in very very high demand among our clients both in the region and outside the region and the real logic behind the demand we understand and we have actions with this acquisition.

Ali Dibadj: And we see this in very, very high demand among our clients, both in the region and outside the region. And the real logic behind the demand we understand and we've addressed with this acquisition is that emerging markets are really where the growth for the longer term will likely be faster, household formation, corporate company formation. But at the same time, the banking system isn't broadly sophisticated.

Ali Dibadj: Is that the emerging markets is really where the growth for the longer term will likely be faster household formation corporate Corporation formation, but the same time the banking system isn't broadly sophisticated so with that in excess we found a fantastic team.

Ali Dibadj: So with that nexus, we found a fantastic team. 20 years of average experience investing in the region, a great cultural fit, and a fantastic partnership with NBK and NBK Wealth. And we think that that combination, and what we're hearing from clients, both locally and globally, really will deliver great value for clients and shareholders alike.

Ali Dibadj: 20 years of average experience investing in the region a great cultural fit.

Ali Dibadj: And a fantastic partnership with Mek and BK wealth, and we think that that combination and what we're hearing from clients, both locally and globally really will deliver a great value for clients and shareholders alike.

Ali Dibadj: Yes.

Ali Dibadj: Great, thanks for all that color. And then just a follow up, just a bigger picture question for you, Ali. You've been with Janus for a couple of years now, but as you think about your prior time with Alliance, how do you feel that relationship that aligns with AXA and Equitable has with Janus here? And do you see value for Janus here in pulling together some of those same pieces? I mean, just curious how you're thinking about the bigger picture thoughts around the right capability, the right structure around Alternos and fixed income at Janus, given some of your past experience.

Speaker Change: Okay, great. Thanks for all that color.

Ali Dibadj: And then just a follow up just bigger picture question for you Ali.

Ali Dibadj: For a couple of years now.

Ali Dibadj: But as you think about where the lion's yeah, how do you feel that relationship.

Ali Dibadj: That aligns had with Axa and equitable.

Ali Dibadj: <unk> volume organic while here in pulling together something about same pizza, yeah, just curious how youre thinking about the bigger picture thought around the right capability alright structure around alternatives and fixed income agenda, just given some of your past experience.

Ali Dibadj: Yes.

Ali Dibadj: We believe at Janus Henderson we have enormous sets of arrows in our quivers that can deliver for client needs of all sorts. We obviously are very focused on delivering the improvements that we're seeing in the intermediary channel for many of our clients.

Ali Dibadj: We believe that Tennant Henderson, we have enormous.

Ali Dibadj: Kind of assets of arrows in our quiver as that can deliver for our client needs of all sorts.

Ali Dibadj: We obviously are very focused on delivering our currently are the improvements that we're seeing an intermediary channel for many of our clients and as you know we are rebuilding the pipeline on the institutional side, which is you mentioned includes our clients like insurance companies and those insurance companies need things like privates, We just mentioned one deal.

Ali Dibadj: And as you know, we're rebuilding the pipeline on the institutional side, which, as you mentioned, includes clients like insurance companies. And those insurance companies need things like private equity. We just mentioned one deal.

Ali Dibadj: And obviously, there are many more in the pipeline that one could imagine doing on the private side of things, certainly on the credit side. But also, they need other things that we have as well. The fixed income side of our business is about half, maybe a little bit more than half on the insurance side as well, and we continue to see needs from that segment. So, look, we are very pleased with our core business that we're protecting and growing. We look for opportunities to amplify that and then diversify to deliver on client needs, and to your point, clients of all sorts, including, for sure, insurance companies as well.

Ali Dibadj: Obviously, there is many more in the pipeline that one could imagine doing on the private side of things. That's certainly on the credit side, but also they need other things that we have as well a fixed income side.

Ali Dibadj: Side of our business is about half, maybe a little bit more than half on the insurance side as well and we continue to see needs from that from that segment. So look we are very pleased with.

Ali Dibadj: Our core business that we are protecting and growing we look for opportunities to amplify that and then diversify to deliver on client needs and to your point.

Ali Dibadj: Clients of all sorts, including for sure insurance companies as.

Ali Dibadj: As well.

Prika: Great, thanks so much.

Michael Cho: Great! Thank you so much.

Speaker Change: Great. Thanks, so much.

Prika: We now have Don Fannon with Keffries.

Speaker Change: We now have gone from them with Jefferies. You May proceed.

Prika: Yeah.

Daniel Fannon: Thanks. Good morning.

Daniel Thomas Fannon: Thanks, Good morning.

Daniel Thomas Fannon: Wanted to follow up on some comments you guys have been saying for some time about replenishing the institutional backlog. So curious what you think is a reasonable time period for that and also underneath that I believe you've been doing some hiring in some changes internally was hoping to get a little more color on what youre doing proactively to enhance that channel.

Daniel Thomas Fannon: Hey, Dan Thanks, Yeah.

Daniel Thomas Fannon: Yes. Your recollection is right we told you that.

Daniel Thomas Fannon: We would need to replenish the institutional pipeline after an $8 billion positive slow year last year.

Daniel Fannon: I wanted to follow up on some comments. You guys have been saying for some time about replenishing the institutional backlog. So, curious what you think is a reasonable time period for that. And also, underneath that, I believe you've been doing some hiring and some changes internally. I was hoping to get a little more color on what you're doing proactively to, you know, enhance that channel.

Daniel Fannon: There is lots of activity I'm actually very very pleased about the level of activity that we're having with clients will have activity and positive feedback were getting from consultants, which has a little bit of lead time, obviously, so the leading indicators are actually quite quite positive.

Ali Dibadj: Hey Dan, thanks. Yes, your recollection is right.

Ali Dibadj: We told you that we would need to replenish the institutional pipeline after an $8 billion positive flow year last year. There's lots of activity. I'm actually very, very pleased about the level of activity that we're having with clients, the level of activity and positive feedback we're getting from consultants, which has a little bit of lead time, obviously. So the leading indicators are actually quite, quite positive. This stuff takes a while.

Dan: It takes a while.

Ali Dibadj: <unk> talked about 12 to 18 months type timeframe, Thats, probably still right plus or minus is our view.

Ali Dibadj: Of course these things move.

Ali Dibadj: We talked about a 12 to 18 months type timeframe. That's probably still right, plus or minus, is our view. But of course, these things move at the pace of the institutional world and at the pace of the consultant world quite often. I would note that we're also being quite mindful about what AUM we take on. I think you all realize, investors realize, we certainly realize that not all AUM is created equally. So we're very mindful about delivering value to our clients and delivering value to our shareholders and not in search of so-called low-calorie AUM.

Ali Dibadj: At the pace of the institutional world and at the pace of the consultant world quite often.

Ali Dibadj: I would note that.

Ali Dibadj: We're also being quite mindful about what AUM, we take on I think you all realize investors realize we certainly realize that.

Ali Dibadj: Not all AUM is created equally.

Ali Dibadj: So we're very mindful about delivering value to our clients and delivering value to our shareholders and not in.

Ali Dibadj: In search of so called low calorie AUM.

Ali Dibadj: So we're being very mindful of that. The leading indicators are quite positive. You mentioned in terms of people, you're correct. We're investing in people and changing the organizational structure a little bit to make sure that we pair off against our institutional clients in the same manner that they run their businesses, i.e., much more regionally, and we're already starting to see some very fruitful results.

Ali Dibadj: So we're being very mindful of that.

Ali Dibadj: The leading indicators are quite positive.

Ali Dibadj: Mentioned in terms of people you are correct, we are investing in people and changing the organizational structure, a little bit to make sure that we.

Ali Dibadj: The pair off against our institutional clients in the same manner that they run their businesses I am much more regionally and we're starting to see already some very fruitful results out of that.

Ali Dibadj: Great, that's helpful. And then I was hoping you could expand upon your vision for the ETF franchise. You have obviously the announcement today, the success of the last 12 months on certain fixed income products. Do you anticipate lookalike products coming to market with what you have existing on the active footprint within equities? Or is this mainly just focused on fixed income as you think out the next couple years, but I was hoping to get a little bit more of a roadmap of what your vision is for your ETF franchise over the longer term?

Speaker Change: Great. That's helpful. And then I was hoping you could expand upon your vision through the ETF franchise, you have obviously the announcement today the success over the last 12 months and so certain fixed income products do you anticipate.

Ali Dibadj: Look alike products coming to market with what you have existing on the active footprint within equities or is this mainly just focused on fixed income as you think out. The next couple of years, but I was hoping to get a little bit more of a roadmap of what your vision is for the ETF franchise over the longer term.

Ali Dibadj: Sure, thanks for the question. Let me start off maybe with tabula as a jumping off point, and then we can expand that discussion. You know, we're seeing a lot of the same trends that we saw in the US, in Europe. If you shift the timeframe to kind of the start time, we're seeing a lot of the same trends. So Tabula allows us to get into that marketplace and take advantage of some of those trends.

Speaker Change: Sure. Thanks for the question.

Ali Dibadj: Let me start off maybe with tabular as a jump off point and then we can we can expand that discussion.

Ali Dibadj: Sure.

Ali Dibadj: We're seeing a lot of the same trends that we saw in the U S.

Ali Dibadj: In Europe, if you shift the timeframe to kind of the start time, we're seeing a lot of the same trends. So tabular allows us to get into that marketplace and.

Ali Dibadj: And take advantage of some of those trends I mean literally the ETF market on the active side grew about 50% small base mind, you to be fair right, but growing about 50%, we're starting to see growing interest actually and.

Ali Dibadj: I mean, literally, the ETF market on the active side grew about 50%. Small base, mind you, to be fair, right, but growing about 50%. We're starting to see growing interest in ETF USIT form in Latin America and in Asia as well. So we're seeing that. As I mentioned a second ago, we're skating to where the puck is going, like we are doing with NBK and Privacore as well.

Ali Dibadj: <unk> use it form.

Ali Dibadj: In Latin America, and in Asia as well. So so we're seeing that as I mentioned, a second ago, we're skating to where the puck is going like we are doing with mek and protocol as well and the strategic prong that fits under this amplified pillar and so are amplifying the skill sets that we have in a vehicle.

Ali Dibadj: And the strategic prong that it fits under is this amplified pillar. And so we're amplifying the skill sets that we have in a vehicle-agnostic way to deliver on client needs. Again, we're always client-led. So that hopefully starts to answer your question, which is we're taking the skill sets that we have, which is this incredible set of investment acumen, a little bit to the question earlier, Michael's question earlier. We have great investors, great client service folks, and now we're putting it in a different wrapper, right, to deliver for our clients. We are not prone to doing a cloning in our mindset.

Ali Dibadj: I'll stick way to deliver to the client needs again, we're always being client led so that hopefully starts to answer your question, which is we're taking the skill sets that we have which is this incredible set of investment acumen and a little bit to the question earlier Michael's question earlier.

Ali Dibadj: We have great investors, great client service folks and now we're putting it in a different wrapper right to deliver for our clients.

Ali Dibadj: We are not prone to doing a cloning.

Ali Dibadj: And our mindset, we think that the folks who are purchasing yes have different needs look for different characteristics and so we're doing things slightly differently now come to the U S. Exactly as you described it now to securitize platform on the fixed income side is exactly. An example of this we had a great investment team fantastic.

Ali Dibadj: We think that the folks who are purchasing ETFs have different needs, look for different characteristics, and so we're doing things slightly differently. Now, coming to the US, exactly as you described it, the Securitize platform on the fixed income side is exactly an example of this. We had a great investment team, fantastic performance, and we put it in a form factor, again, being vehicle agnostic, that clients could digest this product with enormous success. Take this example, think about that for Europe with Tabula, and then think about that for Latin America and Asia as well as a thought.

Ali Dibadj: <unk> and we put it in a form factor again being vehicle agnostic that clients could digest. This product with enormous success take that example think about that for Europe with tabular and then think about that for Latin America, and Asia as well as the thought process.

Ali Dibadj: Two other pieces to note. One is that it does not only have to be a fixed income. In fact, we do have ETFs in other asset classes, including active equities. They will all be active, but we could imagine doing things with equities and think that there is the potential to do that. Now, the last thing that I'd say is, as compared to some other ETF franchises that folks may be familiar with, the fee rate on this thing is very different because it is active, right?

Ali Dibadj: Two other pieces to note one is.

Ali Dibadj: It does not only have to be fixed income.

Ali Dibadj: In fact, we do have Etfs and other.

Ali Dibadj: Asset classes, including active equities.

Ali Dibadj: We'll all be active but.

Ali Dibadj: But we could imagine doing things in equities and think that there is potential to do that now the last thing that I would say is.

Ali Dibadj: As compared to some other ETF franchises that folks may be familiar with the fee rate on this thing is very different because it is active right again not all AUM is created equally we're very very mindful that we have an investment team that is very very strong across many many different kind of arrows in our quiver, we're delivering that in a form factor of the TTM.

Ali Dibadj: Again, not all AUM is created equally. We're very, very mindful that we have an investment team that's very, very strong across many, many different arrows in the quiver. We're delivering that in an ETF form factor, and the fee rate for most of these is very, very attractive because of that investment team. Hopefully, that gives you a full picture.

Ali Dibadj: And the fee rate for most of these is very very attractive because of that investment acumen. Hopefully it gives you a full picture.

Ali Dibadj: to help with all this. Thank you.

Speaker Change: That's helpful. Yes. Thank you.

Speaker Change: Thank you.

Prika: We now have John Dunn with Evercore ISI.

Ali Dibadj: We now have John can ever.

John Dunn: Oh, Yes, hi.

John Dunn: Thank you. It was great to see Europe and Latin America intermediary improve. You guys have talked about transporting some of the US practices to those markets. Can you bring that to life a little more, like specific shifts you're making and how sustainable do you think better results are overseas?

John Dunn: Thank you.

John Dunn: It was great to see Europe, and Latin America intermediary improve.

John Dunn: You guys have talked about transporting some of the U S practices to those markets can you bring that to life, a little more like specific shifts you're making and how sustainable do you think better results are overseas.

Ali Dibadj: Hey, John, thanks very much for the question. Yes, you're right.

Speaker Change: Hey, John Thanks, very much for the question.

John Dunn: Yes, Youre right recall, we had talked about.

John Dunn: Taking some of the experiences and expertise in changes, which I'll go into in a second from the U S markets that are delivered we believe now sustainable results in the U S. Intermediary business is growing and by the way it's not just growing.

John Dunn: Fundamentally it's growing market share and EBIT, even in kind of the most challenging areas of the U S. Intermediary business like active equities were growing market share to which again suggests that sustainability is playing out there that team has done a phenomenal job and hats off to them and to continued successes in that business and what we did in that business to your very point.

Ali Dibadj: Recall, we talked about taking some of the experiences and expertise and changes, which I'll go into in a second, from the U.S. markets that have delivered, we believe now, sustainable results in the U.S. The U.S. intermediary business is growing. And by the way, it's not just growing. Fundamentally, it's growing market share. And even in some of the most challenging areas of the U.S. intermediary business, like active equities, we're growing market share, too.

Ali Dibadj: Are things that we are bringing and modifying right to make sure that their customized but modifying to the rest of the world. So things like investing in the business investing in people in the business, bringing new people onboard or upgrading internally.

Ali Dibadj: Promoting people internally with that we are looking at data much more carefully we have market share data cut as you'd imagine every which way for each of our sales folks now, which we didn't have before we're spending more on branding and marketing on a global basis again to make sure that there is a pull element to it.

Ali Dibadj: <unk> element of our sales force to give them a little bit of a an amplification push as well and of course, we're very focused on kpis.

Ali Dibadj: Kpis that have differentiated cost structures that are much more focused on growth.

Ali Dibadj: And that are extraordinary focus on delivering our clients needs now couple that with investment performance that is stronger.

Ali Dibadj: Which, again, suggests that sustainability is playing out there. That team has done a phenomenal job. Hats off to them and to continued successes in that business. And what we do in that business, to your very point, are things that we are bringing in and modifying, right, to make sure that they're customized, but modifying to the rest of the world. Now, couple that with investment performance that is stronger, and that's what you're seeing in Latin America and EMEA. We're very, very pleased with the early progress from that team. We want that to continue, obviously, for investors' sake and clients' sake.

Ali Dibadj: Thats, what Youre seeing in Latin America, and EMEA were very very pleased with the early progress from that team now we want that to continue obviously for investors sake and.

Ali Dibadj: And client mix as well.

Roger Thompson: If I could add a couple of bits to that, John, I think the other things are pretty broad improvements on what we're talking about in terms of European flows. We're positive in continental Europe. We're also positive in LATAM, and actually, we're also positive in core Asia in terms of intermediary flows. The UK is a tough market. That market is still experiencing outflows.

Speaker Change: If I could add a couple of big data.

Ali Dibadj: John.

Roger Thompson: I think the other things it is a it's a pretty broad.

Roger Thompson: Improvement in what we're talking about.

Roger Thompson: P inflows.

Roger Thompson: We're positive in Continental Europe were also positive in Latam and actually we were supposed to be in.

Roger Thompson: Core Asia in terms of intermediary flows the U K is a tough market.

Roger Thompson: That is that market is to the outflows were probably not losing market share, but that's a tough market was still negative in the UK. We've reorganized that we're excited about new leadership, we've reported in the UK.

Roger Thompson: We're probably not losing market share, but that's a tough market. We're still negative in the UK, but we've reorganised there.

Roger Thompson: We're excited about the new leadership we've brought to the UK. But on the continent, LATAM and Asia, we've moved to positive. And as Ali said on the call earlier, that backs up the three quarters we've done positive in the US, and it's coming in a relatively broad range of products. We're definitely taking a share in European equity. We're positive there. We've got some outstanding performance in European equity, but also in thematics, things like global tech and biotech and life sciences. So more to do, but really pleasing to see Europe joining the party, the US positive last quarter and the one before, and continental Europe positive this quarter. So we're pleased with the direction of travel.

Roger Thompson: But in the constant Latam and Asia, we've moved to positive.

Roger Thompson: As Ali said on the call earlier.

Roger Thompson: Next up for three quarters, we've done positive in the U S and it's coming in a broad relatively broad range of.

Roger Thompson: Products, we're definitely taking share.

Roger Thompson: European equity with positive flow there, we've got some outstanding performance in European equity, but also informatics things like global Tech and buy it.

Roger Thompson: Biotech and life Sciences.

Roger Thompson: Multi day, but really pleasing to see Europe.

Roger Thompson: Joining the policy U.

Roger Thompson: U S positive last quarter or the one before.

Roger Thompson: In Continental Europe positive this quarter. So we're pleased with the direction of travel.

John Dunn: Got it. And then, you know, the Balance Fund, back to great performance in the past. It's been a good contributor in past cycles. How quickly have you seen interest return to that strategy? And what do you think that look is for 24?

Roger Thompson: Got it and then the balance fund back to great performance in the past it's been a good contributor.

John Dunn: Cycles like how quickly have you seen interest return to that strategy and what do you think that look is for 24.

Ali Dibadj: I'm glad you raised the balance strategy, John. It's really become a big focus of our client base, and the client base is effectively saying, I'm sure you know this, they're effectively saying, look, we want to take on a little bit more risk, we feel like things are better, cautiously, but better, certainly, but we want to maybe not go all the way. We want to have exposure to equities but have the ballast of fixed income which, oh by the way, is actually delivering a relatively good return, a good yield.

John Dunn: I'm glad you raised the balance strategy John.

Ali Dibadj: It's really become a big focus of our client base and the client base is effectively saying as I'm sure you know this effectively saying.

Ali Dibadj: Look we want to take on a little bit more risk, we feel like things are better cautiously, but better certainly.

Ali Dibadj: But we want to maybe not go all the way we want to have exposure to equities.

Ali Dibadj: But have the ballast of fixed income, which oh by the way is actually delivering a relatively good return a good yield and so the balanced portfolio has become a very very big focus for our clients and of course I'll gladly. The investment performance on that team is extraordinarily good.

Ali Dibadj: And so the balanced portfolio has become a very, very big focus for our clients, and, of course, gladly, the investment performance on that team is extraordinarily good. I think, over any time frame you choose, they're one of the best performing balanced franchises out there. Unfortunately, see it as an opportunity; they're not one of the biggest balanced franchises out there, and so there's still an enormous amount of opportunity to take that business and grow that business on the basis of client needs in this part of the cycle environment as well as great performance. So we're really excited about the balanced portfolio. Thank you.

Ali Dibadj: I think over any time frame you choose.

Ali Dibadj: They're one of the best performing balanced franchises out there. Unfortunately.

Ali Dibadj: Unfortunately see it as opportunity there not one of the biggest bounce franchises out there and so there's still an enormous amount of opportunity to take that business and grow that business on the basis of the client needs in this part of the cycle environment as well as the great performance. So we're really excited about the balanced strategy at this point.

John Dunn: Thank you and congrats on the transactions.

Speaker Change: Thank you and congrats on the transactions.

Speaker Change: Thanks, John.

Speaker Change: Thank you.

Prika: We now have Adam Beatty with EBS.

John Dunn: We now have Adam Beatty with UBS.

Prika: Yeah.

Adam Beatty: Thank you and good morning. Just a quick follow up on the institutional kind of rebuild. You've talked about that somewhat already on the call, but just wanted to get a sense. I'm assuming the couple of mandates that went away in the first quarter had some seasonality to that, maybe some annual-type decisions. So just wanted to get a look at if there's anything else near term, either positive or negative, that might hit the flows in the next quarter or two. And also, broadly, just the institutional response so far to the improving performance in the equity franchise. Thanks.

Adam Beatty: Thank you and good morning, just a quick follow up on the institutional kind of rebuild you you've talked about that.

Adam Beatty: <unk> already on the call, but just wanted to get a sense I'm assuming the the couple of mandates that went away in the first quarter, where there was some seasonality to that maybe you know with some annual type decisions. So just wanted to get a look on if theres anything else near term either positive or negative.

Adam Beatty: But that might hit the flows in the next quarter or two.

Adam Beatty: And also just broadly just the institutional response, so far to the improving performance in the equity franchise. Thanks.

Roger Thompson: Let me start on that one, Adam. We've told you in the past if we've got any large outflows that we're expecting, and at the current time, we don't. And as Ali said, there are a lot of things in the early to mid phase. Some of those are quite large; they could come through. But as we said, it's going to take us time to rebuild that full pipeline to something where we can be consistent and deliver on an overall basis. So it's likely to be lumpy for a period of time, but at the current time, I have nothing to tell you about. Ali, do you want to pick up the equity?

Speaker Change: Yes, let me start on that one yes, we've told you in the past if we've got any large outflows that were expecting.

Ali Dibadj: And at the current time, we don't.

Roger Thompson: <unk>.

Roger Thompson: And as Ali said there is there is a lot of things in the in the early to mid phase. Some of those are quite large they could come through.

Ali Dibadj: But as we said, it's going to take us time to rebuild that that full pipelines is something where we can be consistent.

Ali Dibadj: And delivering on an overall basis, so it's likely to be lumpy for a period of time.

Roger Thompson: Yes.

Ali Dibadj: At the current time nothing nothing to tell you about.

Ali Dibadj: Im probably going to pick up on equity.

Ali Dibadj: Sure, we are seeing more interest on that side, and the hypothesis that we had a little while ago is certainly being repeated back to us, which is exciting for us and other active asset managers because, wow, it sounds like there's going to be a real cost of capital here for a while. And so it makes fixed income attractive for sure, but it also comes back to good and bad companies we can use from chaff separation to create alpha. That's something we're hearing back from clients. We're hearing back from the most sophisticated clients as well as end clients with whom we have connectivity.

Roger Thompson: Sure.

Ali Dibadj: We are seeing more interest on that side and the hypothesis that we had a little while ago is certainly being repeated back to us which is exciting for us and other active asset managers, which is a while it sounds like theres going to be a real cost of capital here for a while.

Ali Dibadj: And so it makes fixed income attractive for sure but it also comes back to.

Ali Dibadj: Good and bad companies wheat from chaff separation to create alpha.

Ali Dibadj: That's something we're hearing back from clients, we're hearing back from the most sophisticated clients as well as end clients with whom we have connectivity with so they are effectively saying gosh, there's a higher cost of capital a bad company that has to pay a higher cost of capital will fail a good company will be successful and that divergence between a good and bad company.

Ali Dibadj: So they're effectively saying, gosh, there's a higher cost of capital; a bad company that has to pay a higher cost of capital will fail; a good company will be successful, and that divergence between a good and bad company will again create alpha. Honestly, that's music to our ears, right? When we hear that, given the performance that you see here, that's been consistent for such a long time, given the 340 plus investment professionals that we have at this firm, who do all they do all day long, it's in their DNA to understand wheat from chaff.

Ali Dibadj: We will again create alpha.

Ali Dibadj: Honestly, that's music carriers, when we hear that given the performance that you see here that's been consistent for such a long time, given the 340.

Ali Dibadj: Plus our investment professionals that we have at this firm who all they do all day long. It's our DNA is understand wheat from chaff, sometimes we short the task and invest in the week.

Ali Dibadj: Sometimes we short the chaff and invest in the wheat, and sometimes we just pick off the wheat, I think that's the positive part, and grow. So it's music to our ears. We think there's a real interest in a movement, starting from institutional to consultants to intermediary and clients, understanding that the tide will not lift all boats, and active asset management is a real place people are paying attention to.

Ali Dibadj: Sometimes we just pick up that we I think that's the positive part and grow so.

Ali Dibadj: Music to our ears, we think there is a real interest in a movement starting from institutional to consultants to intermediary and clients understanding that the title not lift all boats and active asset management.

Ali Dibadj: <unk> is a real place people are paying attention to.

Adam Beatty: Excellent. Thank you both for that detail. And then just wanted to ask a little bit more about the investment capabilities at Tabula. You know, a lot of the detail is about distribution and the use of this vehicle, obviously very important. Just wondering, you know, how similar or different the investment strategies are to what Janus Henderson has here in the US. And also, they mentioned kind of an ESG capability. So I don't know how important that was in terms of your partnership with them. Maybe you could talk about that. Thanks a lot. [inaudible] Go ahead, go ahead.

Speaker Change: Excellent. Thank you both for that detail.

Adam Beatty: And then just wanted to ask a little bit more about the investment capabilities a tabular.

Adam Beatty: You know all the details about distribution in the UCITS vehicles, obviously very important just wondering how similar or different the investment strategies are to what Janus Henderson has here in the U S. And also they mentioned kind of an ESG capability. So I don't know how important that was in terms of your partnership with them.

Adam Beatty: Maybe you could talk to that thanks a lot.

Jeremy: Jeremy Let me.

Roger Thompson: Let me start on that and then Ali can chip in. We've currently got nine UCIT CTFs, as Ali said earlier, they're about $500 million, and they include a range of Article 9 Paris Accord-aligned funds, so it's a mixture of things. It's largely a fixed income at the moment. The exciting thing for us is that it is traded on 10 exchanges, and it's sold to 15 countries. So the opportunity for us is now to launch Janus Henderson products through that tabular platform.

Speaker Change: Let me start on that sorry.

Roger Thompson: Let me start on that and then and then the <unk>.

Roger Thompson: Yeah.

Roger Thompson: Yes.

Roger Thompson: We've currently got what's happening currently, but we will certainly have nine Cts as Ali said earlier, it's about $500 million.

Roger Thompson: It includes the range of <unk>.

Roger Thompson: $2 million.

Roger Thompson: Paris, Paris accord allying funds.

Roger Thompson: So it's a mixture of things, it's largely fixed income at the moment.

Roger Thompson: <unk>.

Roger Thompson: The exciting thing for US is this is this is existing in 10.

Roger Thompson: 10 exchanges its sell through 15 countries.

Ali Dibadj: So the opportunity for US is now to launch Janus Henderson products three of the top three that tablet platform and as we said thats, probably both fixed income and equity.

Roger Thompson: And as we said, that's probably both fixed income and equity. And we will be moving very fast to get those launched during 24. So there are currently nine funds. They're interesting things. We'll certainly keep marketing those. There are some interesting things for us to look at. But we'll be adding to that with some of the investment talent.

Roger Thompson: So we will be moving very fast to get those to get those launched during 2004. So there's currently no and funds.

Roger Thompson: They are interesting things.

Roger Thompson: Certainly keep marketing those there's something interesting things for us to look at.

Roger Thompson: We'll be adding to that with some of the investment talent that we have and we will hopefully get a good number of those loans this year.

Roger Thompson: I'm sorry; I wasn't sure if Ali wanted to add anything. No, I think it's a great answer.

Speaker Change: I'm, sorry, I wasn't sure if all we wanted to add.

Ali Dibadj: No I think it's a great answer.

Roger Thompson: Okay, okay, cool. Thank you very much. I appreciate it.

Speaker Change: Okay. Okay cool. Thank you very much appreciate it.

Speaker Change: Thanks, Adam.

Adam Beatty: Thank you. As a reminder to ask any further questions, please press star followed by one on your telephone keypad now, and we have the next question for Michael Cyprys of Morgan Stanley.

Speaker Change: Thank you.

Roger Thompson: As a reminder to ask any further questions. Please press star followed by one on your kind of think he that's now.

Adam Beatty: And we have the next question from <unk>.

Adam Beatty: Michael.

Michael J. Cyprys: This is Morgan Stanley.

Prika: Great. Thank you. Good morning. Congratulations on both of the transactions that took place here this morning.

Michael J. Cyprys: Great. Thank you good morning.

Michael J. Cyprys: Gratulation is on both of the transactions here. This morning, I wanted to ask on EM BK with the private markets steel.

Michael J. Cyprys: I wanted to ask you about MBK and the private markets deal. I was hoping you could speak to some of the steps you'll take to accelerate the growth at MBK. Do you feel that you need to expand sourcing and origination in order to meaningfully drive growth or add more resources? Or is it really just about plugging it into global distribution?

Michael J. Cyprys: Hoping you could speak to some of the steps you'll take to accelerate the growth at EM BK do you feel that you need to expand our sourcing and origination in order to meaningfully drive growth or add more resources or is it really just about plugging it into global distribution and maybe you could talk about your vision for this over time. Thank you.

Ali Dibadj: And maybe you could talk about your vision for this over time. Thank you.

Ali Dibadj: Sure, thanks for the question. We don't believe we have to invest meaningfully in the origination part of it. In fact, that's something that we look at when we look at these types of acquisitions, the origination skillset, and how much sort of capacity the origination skillset has. Here, it's quite strong.

Speaker Change: Sure. Thanks for the question.

Ali Dibadj: We don't believe we have to invest meaningfully in the origination part to it and in fact, that's something that we look at when we look at these types of acquisitions is the origination skill set and how much sort of capacity. The origination scopes that has here is quite strong there continues to be an opportunity for them and in fact to scale up if they.

Ali Dibadj: There continues to be an opportunity for them, in fact, to scale up if they had the capital, and that's where we come in. So point number one, not enormous investment in the origination. They already have it.

Ali Dibadj: Had the capital and that's where we come in so point number one not enormous investment in the origination they already have it number two is.

Ali Dibadj: Number two is plugging into the distribution that we have both in the region but also globally is really how we can help them grow and help them get more deals. In fact, they're leaving money on the table, and BK would say, because they have so much coming in, being very selective, keeping the same diversification, keeping the same credit quality, but could put more to work. And so that's where the plug-in to us makes a lot of sense.

Ali Dibadj: Plugging into the distribution that we have both in the region, but also globally is really how we can help them grow and help them get more deals in fact, they're leaving money on the table and BK would say.

Ali Dibadj: Because they have so much coming in being very selective keeping the same diversified Joseph diversification and keeping the same credit quality, but could put more to work and so that's where the plug into us. It makes a lot of sense that the third point that I'd mentioned is of course also the partnership we have and BK well.

Ali Dibadj: The third point that I'd also like to mention is, of course, the partnership we have with NBK Wealth, which allows us to cross-sell effectively both our products and also NBK's products more broadly as that business grows. So we believe that this is a great foundational building block for our emerging market franchise and for our private banking franchise in the emerging market. So we're quite excited, and again, I think it's gonna deliver great value for our clients and phenomenal value for our shareholders, given this is where the growth happens.

Ali Dibadj: Which allows us to cross sell effectively both our products and also in Bk's products more broadly as that business grows. So we believe that this is a great foundational building block for our emerging market franchise and for our privates franchise in the emerging market. So we're quite excited and again I think it is going to deliver great value for.

Ali Dibadj: Clients and phenomenal value for our shareholders. Given this is where the growth is happening.

Michael J. Cyprys: And then just to follow up on the Privacore relationship, great to hear about the new partnerships that you were alluding to earlier. I was just hoping you could elaborate a bit more on your overall strategy and objectives here over the longer term. If you look at the next five years, if this is successful, what would that look like for Privacore?

Speaker Change: And then just to follow up on the perfect core relationship great to hear about the new partnerships that you were alluding to earlier I was just hoping you could elaborate a bit more on your overall strategy and objective here over the longer term. If you look out over the next five years. If this is successful what would that look like at Evercore.

Ali Dibadj: Um, sure, we are. Very energized. Bye.

Speaker Change: Sure we are there.

Ali Dibadj: I'm very energized by what's going on at Privacore right now. The progress to date in a very short period of time has been great. We mentioned a $200 billion alternative asset manager that's currently in the market. We are now working with a very well-known technology investment firm to do the same. We have an agreement with a $50 billion global private alternative asset manager that we're bringing to market. It's actually quite exciting to see the progress here.

Ali Dibadj: Very energized by what's going on at <unk> right now the progress to date in a very short period of time has been great. We mentioned $200 billion alternative asset manager that is currently in the market.

Ali Dibadj: We now are working with a very well known technology investment firm to do the same.

Ali Dibadj: We have.

Ali Dibadj: Agreement with a $50 billion global private alternative asset manager that we're bringing to market. So it's actually quite exciting to see the progress here.

Ali Dibadj: We'll give you more updates in future quarters and in more detail, but it's very exciting for a couple of things. The hypothesis was that there was a desire among our clients, particularly private wealth clients, RIAs, wirehouses, to have access to very well-performing alternative shops but couldn't get access to them because there was a missing service element and product creation element. At that nexus, it's PrivaCorp's job to bring in best-in-class managers of alternative asset management and pair that with the relationships and the wirehouses, brokers, dealers, and RAs that Janus Henderson has and PrivaCorp has.

Ali Dibadj: We'll give you more updates on future quarter or is it in more detail, but it's very exciting for a couple of things right. The hypothesis was that there is a desire among our clients, particularly the private wealth clients are as warehouses access to very well performing alternative shops, but can't get access to them.

Ali Dibadj: Because there is a missing service element in product creation element to it.

Ali Dibadj: At that Nexus sits protocol to bring in best in class managers of alternative asset management.

Ali Dibadj: And pair that to the relationships and the wire house brokers dealers are a the Janus Henderson has and <unk> and we're seeing that play out and very Excitingly. We're seeing it play out with brand name large alternative asset managers are these are these are not.

Ali Dibadj: And we're seeing that play out. And, very excitingly, we're seeing it play out with brand name, large alternative asset managers. These are not small folks; these are folks that you all will know. There are beliefs out there that the, call it, low single-digit type exposure in the private wealth channel to privates and alternates more broadly will go up to something like 15 to 20% allocations to private wealth. Folks at other firms that I have an enormous amount of respect for and that some of you cover say this is an $80 trillion AUM opportunity, private equity in private wealth.

Ali Dibadj: Small folks these are folks that you all well know.

Ali Dibadj: And so it is just the start.

Ali Dibadj: You expand that a little bit.

Ali Dibadj: There are beliefs out there that the call it low single digit type exposure on the private wealth channel to privates and alternatives more broadly will go up to something like 15% to 20%.

Ali Dibadj: Allocations in private wealth.

Ali Dibadj: Folks at other firms that I have enormous amount of respect for and Thats. Some of you cover say this is an 80 trillion.

Ali Dibadj: AUM opportunity private and private wealth.

Ali Dibadj: We think PrivaCorp can be a really important part of that democratization of the alternative landscape to private wealth. We currently have a minority stake in PrivaCorp with very clear and well-established milestones to become full owners of Perficor. So we're quite excited for the progress. I think the team there is fantastic. We have a great relationship with them, and they're showing us that that pop

Ali Dibadj: <unk> can be a really important part of that democratization the alternative landscape to private wealth.

Ali Dibadj: We have currently a minority stake in <unk> with very clear and well established.

Ali Dibadj: Milestones to become full owners of <unk>. So we're quite excited progress I think the team. There is fantastic we have great relationship with them and they are showing us that the hypothesis of playing out.

Speaker Change: Great. Thank you.

Prika: Thank you. I would now like to turn it back to Ali Dibadj for any final remarks.

Speaker Change: Thank you.

Ali Dibadj: I would now like to turn it back to Ali <unk> for any final remarks.

Ali Dibadj: Thanks very much, Brika. I want to thank, in this context of the quarter, each and every one of our employees at Janus Henderson. You've heard these calls before.

Ali Dibadj: Thanks, very much breaker I wanted to think.

Ali Dibadj: In this context of the quarter, each and every one of our employees of Janus Henderson.

Ali Dibadj: And you've heard these calls before we often speak about investments in client service and I wanted to just take a brief moment to thank all of the employees at Janus Henderson all of the functions. The key people the ops people legal compliance risk finance all the other folks as well that sometimes are unsung.

Ali Dibadj: We often speak about investments and client service, and I want to just take a brief moment to thank all of the employees at Janus Henderson, all of the functions, the IT people, the operations people, legal compliance, risk finance, all the other folks as well that sometimes are unsung at Janus Henderson, without whom we just could not have delivered these very strong results. Everyone at Janus Henderson is hard at work all across the world, living our values, executing our strategy to deliver for our clients, their clients, our employees, shareholders, and all of our staff. So thanks to those folks who are listening to the call. Thanks to investors and analysts, and bye for now.

Ali Dibadj: Janus Henderson without whom we just could not have delivered these very strong results everyone's Janus Henderson is hard at work all across the world living our values executing our strategy to deliver for our clients their clients are employees shareholders and all of our stakeholders. So thanks for those folks who are listening to the call.

Ali Dibadj: Thanks for investors and analysts.

Ali Dibadj: Bye for now.

Ali Dibadj: Okay.

Prika: Thank you all for joining us. I can confirm that this does conclude the Janus Henderson first quarter 2024 results briefing. You may now disconnect your lines and please enjoy the rest of your day.

Speaker Change: Thank you for joining I can confirm that does conclude the Janus Henderson fast quoted 10 to 20 fold without pricing.

Prika: You may now disconnect your lines and please enjoy the rest of year.

Prika: [music].

Prika: Yeah.

Prika: Yeah.

Prika: Yeah.

Prika: [music].

Prika: Yes.

Prika: Okay.

Prika: [music].