Q2 2024 Janus Henderson Group PLC Earnings Call

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Operator: Excuse me, ladies and gentlemen. Thank you for your patience. The call will begin momentarily. Again, thank you for your patience. The call will begin momentarily.

Speaker Change: Excuse me, ladies and gentlemen, thank you for your patience the call will begin momentarily again. Thank you for your patience the call will begin momentarily.

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Operator: Good morning.

Megan: Good morning. My name is Megan, and I'll be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group second quarter 2024 results briefing. All lines have been placed on mute to prevent any background noise.

Megan: My name is Megan, and I'll be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group second quarter 2024 results briefing. All ones have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question in the answer period. In the interest of time, questions will be limited to one initial and one follow-up question. In today's conference call, certain matters discussed may constitute forward-looking statements. Actual results could differ materially from those predicted in the forward-looking statements due to a number of factors, including but not limited to those described in the forward-looking statements and risk factors sections of the company's most recent Form 10-K and other more recent filings made in the SEC.

Megan: 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 predicted in the forward-looking statements due to a number of factors, including, but not limited to, those described in the forward-looking statements and risk factors sections of the company's most recent Form 10-K and other more recent filings made with the SEC. Janus Henderson assumes no obligation to update any forward-looking statements made during the call.

Speaker Change: Forward looking statements due to a number of factors, including but not limited to those described in the forward looking statements and risk factors sections of the company's most recent Form 10-K and other more recent filings made in the S. E C.

Megan: Janus Henderson assumes no obligation to update any forward-looking statements made during the call.

Speaker Change: Janus Henderson assumes no obligation to update any forward looking statements made during the call. Thank you now it is my pleasure to introduce Ali the badge, Chief Executive Officer of Janus and hit Janus Henderson Mr. The batch you may begin your conference.

Megan: Thank you.

Ali Debatch: Now, it is my pleasure to introduce Ali Debatch, Chief Executive Officer of Janus Henderson. Janus Henderson, Mr. Debatch, you may begin your conference. Welcome, everyone, and thank you for joining us today on Janus Henderson's second quarter 2024 earnings call. I'm Ali Debatch; I'm joined by CFO Roger Thompson. In today's call, I'll provide some thoughts on the quarter before handing it over to Roger to run some more details.

Megan: Thank you. Now it is my pleasure to introduce Ali Dibadj, Chief Executive Officer of Janus Henderson. Mr. Dibadj, you may begin your conference. Welcome, everyone, and thank you for joining us today on Janus Henderson's second quarter 2024 earnings call. They'll take your questions following those prepared remarks.

Ali Dibadj: Net flows were positive $1.7 billion. Improvement in net flows came from our intermediary channel and the institutional channel, which benefited from over 10 distinct mandate fundings, ranging from $100 million to $400 million, illustrating our efforts to grow a broad range of client sizes for our institutional business. And that inflows mark our second quarter out of the last six with positive flows, demonstrating tangible improvement towards our aspiration of delivering consistent organic growth over the long term. Our financial results remain solid.

Speaker Change: Welcome everyone and thank you for joining us today on Janus Henderson second quarter of 2024 earnings call.

Speaker Change: Ali the Bath I am joined by our CFO Roger Thompson.

Speaker Change: In today's call I'll provide some thoughts on the quarter before handing it over to Roger to run some more details.

Ali Debatch: After Roger's comments, I'll provide an update on our strategic initiatives for end strength and positioning, and our progress towards delivering consistent results over time. They'll take your questions following those prepared remarks. Turning to slide two, despite a persistent unsettled macro backdrop, market gains, continued alpha generation provided by our world class investment teams, the exceptional services provided by our client teams, and the productivity and execution of our operation and support teams in technology operations, legal, finance, risk and compliance, human capital, marketing and other functions. Again, enable Janus Henderson to deliver a good set of quarterly results.

Speaker Change: After Roger's comments I'll provide an update on our strategic initiatives.

Speaker Change: <unk> strengthened positioning and our progress towards delivering consistent results over time.

Ali Debatch: The investment performance is consistently solid, the belief 63% of asset beating respective benchmarks on a 135 and 10-year basis. Acids that are management increased 3%, the $361.4 billion, which is the highest quarterly AUM figure in over two years and 12% higher compared to a year ago. Net flows were positive, $1.7 billion. Improvement in net flows came from our intermediary channel and the institutional channel, which benefited from over 10 distinct mandate funding, ranging from $100 million to $400 million, illustrating our efforts to grow a broad range of client sizes for our institutional business. We are encouraged by the net inflows in the quarter. Recall that we've previously said that intermittent quarters of neutral to positive net flows would be an indication that our strategic plan is starting to bear fruit, and that inflows mark our second quarter out of the last six with positive flows, demonstrating tangible improvement towards our aspiration to delivering consistent organic growth over the long term.

Ali Debatch: Our financial results remain solid. Positive markets, net inflows, app performance delivered by our investment teams, plus expense management and increased productivity resulted in adjusted due to EPS of 85 cents, a 37% increase compared to the same period a year ago. Our financial performance and strong balance sheet continue to provide us the flexibility to invest in the business, both organically and inorganically, and return cash to shareholders.

Ali Dibadj: Positive markets, net inflows, outperformance delivered by our investment teams, plus expense management and increased productivity resulted in adjusted diluted EPS of $0.85, a 37% increase compared to the same period a year ago. In summary, while there's always work to do, the second quarter demonstrates we are squarely on the path to delivering consistent results over the long term. Investment performance and financial results are strong. Net inflows reflect areas of momentum in our business.

Ali Debatch: In summary, while there's always work to do, the second quarter demonstrates we are squirreling on the path to delivering consistent results for the long term. Investment performance and financial results are strong; net inflows reflect areas we mentioned in our business. We have a strong and stable balance sheet, and each person at Janet Henderson, individually and collectively, continues to execute on our strategy.

Ali Dibadj: We have a strong and stable balance sheet, and each person at Janus Henderson individually and collectively continues to execute on our strategy, starting on slide three with investment reform. Looking in further detail, at least half of each capability's AUM is ahead of benchmarks over all time periods, reflecting consistent investment performance across time periods and capabilities, with almost three quarters of AUM in the top two Morningstar quartiles over the 1, 3, 5, and 10 year time frames. As Ali mentioned, net inflows of $1.7 billion for the quarter compared to $3 billion of net outflows last quarter.

Roger Thompson: I'll now turn the call over to Roger to run you through the detailed financial results. Thanks, Ali, and thank you, everyone, for joining us on the call today. Starting on slide three, and investment performance. As Ali mentioned, investment performance versus benchmark remained solid, with more than 60% of aggregate AUM reaching their respective benchmarks over all time periods. Looking at further detail, at least half of each capability's AUM is ahead of benchmark over all time periods, reflecting consistent investment performance across time periods and capabilities. Overall, investment performance compared to peers is competitive, with almost three quarters of AUM in the top two Morningstar quartiles over the one, three, five, and ten-year time periods.

Speaker Change: Take us on the call today.

Roger Thompson: Starting on slide three and investment performance.

Roger Thompson: As already mentioned the investment performance versus benchmark remained solid with more than 60% of aggregate AUM, beating their respective benchmarks over all time periods.

Speaker Change: Looking at further detail at least half of each capabilities that AUM is ahead of benchmark over all time periods, reflecting consistent investment performance across time periods and capabilities.

Speaker Change: Overall investment performance compared to peers is competitive with almost three quarters of our 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. As Ali mentioned, net inflows of $1.7 billion for the quarter compared to $3 billion of net outflows last quarter were pleased with the result and believed it shows that we're making progress towards our goal of delivering consistent organic growth over time. On slide five, a flow is by client type. Second quarter net flows for the intermediary channel were positive $2.4 billion, equating to a 5% annual organic growth rate. The quarterly flow results were supported by a 45% increase in growth sales year over year and was the best quarterly growth sales risk figure in over two years.

Speaker Change: Slide four shows total company flows by quarter.

Speaker Change: As Ali mentioned net inflows of $1 7 billion for the quarter compared to $3 billion of net outflows last quarter. We're pleased with the result, I believe it shows that we're making progress towards our goal of delivering consistent organic growth over time.

Unnamed Speaker: On slide five, flows by client. Second quarter net flows for the intermediary channel were positive $2.4 billion, equating to a 5% annual organic growth rate for multi-sector credit, international alpha, and US mid-cap growth. As we've spoken about previously, U.S. intermediary is a key initiative under our Protecting Growth strategic pillar. We're pleased by the results for the quarter and that we're gaining market share, using various means, including vehicles in which to deliver products.

Roger Thompson: The US Intermediary Channel was positive for the fourth consecutive quarter, with their inflows in several strategies, including most of the active ETS, multi-sector credit, international alpha, and US mid cap growth. As we've spoken about previously, US Intermediary is a key initiative under our Protect and Growth strategic pillar, but pleased by the results for the quarter and that we're gaining market share. Under the Amplify Strategic Pillar, we've talked about amplifying our investment and client service strengths using various means, including vehicles in which to deliver products. In addition to ETS, flows into CITs, SMAs, and our biotech innovation hedge fund were positive in the second quarter in this channel.

Unnamed Speaker: In addition to ETS, flows into CITs, SMAs, and our Biotech Innovation Hedge Fund were positive in the second quarter in this channel. Moving to the EMEA and Latin American intermediary sectors, where we've spoken previously about expanding our strategic efforts. Similar to the first quarter, both continental Europe and Latin America delivered positive flows, while the UK remained in net outflows.

Roger Thompson: Moving to the Amir and Latin America intermediary segment, here we've spoken previously about expanding our strategic efforts. In the region, net flows improved for the third consecutive quarter, finishing slightly positive this quarter, and we increased market share. SMAs for the first quarter, both constantly Europe and Latin America delivered positive flows, while the UK remained in net outflows. Institutional net inflows were positive $200 million, which improved meaningfully compared to the $3.1 billion of net outflows in the previous quarter. Reauthorating Alley's Commentary, institutional net flows were aided by over 10 distinct fundings of between $100 and $400 million, demonstrating that our efforts to fill the missing middle, as we called it in our institutional client base, are beginning to bear fruit.

Ali: In Latin America delivered positive flows while the UK remains in net outflows.

Speaker Change: Yeah.

Unnamed Speaker: Institutional net inflows were positive $200 million, which improved meaningfully compared to the $3.1 billion of net outflows in the previous quarter. Reiterating Ali's commentary, institutional net flows were aided by over 10 distinct fundings of between $100 and $400 million, demonstrating that our efforts to fill the missing middle, as we've called it, in our institutional client base are beginning to bear fruit. Notably, each of these fundings went into a different strategy spanning all capabilities.

Speaker Change: Institutional net inflows were positive $200 million, which improved meaningfully compared to the $3 $1 billion of net outflows in the previous quarter.

Speaker Change: Reiterating alleys commentary institutional net flows were aided by over 10 distinct fundings of between 100 and $400 million demonstrating.

Speaker Change: Demonstrating that our efforts to fill the missing Midlands, which call. It in our institutional client base are beginning to bear fruit.

Roger Thompson: Notably, each of these fundings went into a different strategy spanning all capabilities. We continue to work to create a sustainable pipeline. We're pleased with the work our distribution team is doing, and we're encouraged by the increasing number of opportunities across all of our regions. But the continued development and maturation of the pipeline will still take time. Let's outflows for the self-directed channel, which includes direct and system market investors, were flat to the prior quarter at $900 million. Like to fix, it flows in the quarter by capability. Equity flows were negative $1.4 billion compared to negative $1.1 billion in the first quarter, pleasingly, in a challenging environment for active equities.

Speaker Change: Notably each of these fundings went into a different strategy spanning all capabilities.

Unnamed Speaker: We continue to work to create a sustainable pipeline. We're pleased with the work our distribution team is doing, and we're encouraged by the increasing number of opportunities across all of our regions. Net outflows for the self-directed channel, which includes direct and supermarket investors, were flat to the prior quarter at $900 million. Equity flows were negative $1.4 billion compared to negative $1.1 billion in the first quarter.

Speaker Change: We continue to work to create a sustainable pipeline. We're pleased with the work our distribution team is doing and we're encouraged by the increasing number of opportunities across all of our regions, but the continued development and maturation of the pipeline will still take time.

Speaker Change: That's outflows for the self directed channel, which includes direct and supermarket investors were flat to the prior quarter at $900 million.

Speaker Change: Slide six is flows and of course, if our capability.

Unnamed Speaker: Pleasingly, in a challenging environment for active equities, across all regions, we continue to take equity market share. Several strategies contributed to positive fixed income flows in the intermediary channel, led by fixed income ETFs which had positive flows of $4.1 billion in the quarter, led by flows into JAAA, but also including $600 million into the JBBB CLO and $100 million into JSI, the Securitized Income ETF, both at a fee rate in the mid to high 40s, and offsetting these net inflows were net outflows in Total net outflows for the multi-athlete capability were $800 million, and on slide 8, we explain the adjusted financial results.

Roger Thompson: Across all regions, we continue to take equity market share. Less inflows for fixed income were $3.3 billion. Several strategies contributed to positive fixed income flows in the intermediary channel, led by fixed income ETFs, which had positive flows of $4.1 billion in the quarter, led by flows into J-Triple A, but also including $600 million into the J-Triple B-CLO, and $100 million into JSI to secure a size income ETF, both at a fee rate in the mid to high 40s. Other strategies contributing to the positive flows were multi-sector credits, global buy and maintain credits, and Australian tactical income.

Roger Thompson: And offsetting these net inflows were net outflows in the lower-fee institutional channel. Total net outflows for the multi-afted capability were $800 million. and finally, net inflows in the alternative capability were $600 million driven by institutional fundings in absolute return, global commodity-enhanced index, and multi-strategy.

Roger Thompson: Moving on to the financials, slide seven is our US GAAP statement of income, and on slide eight we explain the adjusted financial results. Adjusted operating results improved compared to the prior quarter and the prior year. The improvement was primarily due to higher average AUM, good investment performance, generating higher performance fees, and strong operating leverage and lower LTI expense. Adjusted operating income improved 28% and EPS improved 20% to quarter of a quarter. Improvements over a year ago were even stronger, with operating income and EPS up 36% and 37%, respectively. Looking at the detail. Adjusted revenue increased 7% compared to the prior quarter and 14% compared to the prior year, primarily due to higher management fees and higher AUM and improved seasonal CKAS and UK oil performance fees.

Unnamed Speaker: Adjusted Operating Income improved 28% and EPS improved 20% quarter over quarter. However, improvements over a year ago were even stronger, with operating income and EPS up 36% and 37%, respectively. Looking at the details, adjusted revenue increased 7% compared to the prior quarter and 14% compared to the prior year. Primarily due to higher management fees due to higher AUM and improved seasonal CCAV and UK OECD performance fees, our roughly stable net management fee margin continues to be a differentiator compared to many peers considering fee pressures experienced in the asset management industry, and it continues to expand. Adjusted operating expenses in the second quarter declined 2% to $294 million. Adjusted LTI declined nearly 30% compared to the prior quarter, largely due to seasonal payroll taxes driven by annual vestings in the prior quarter.

Speaker Change: Tom It's generating high performance fees and strong operating leverage.

Tom: Our LTI expense.

Tom: Okay.

Speaker Change: Adjusted operating income improved, 28% and EPS improved 20% quarter over quarter improved.

Tom: Improvements over a year ago were even stronger with operating income and EPS up 36% and 37% respectively.

Tom: Looking at the detail.

Tom: Adjusted revenue increased 7% compared to the prior quarter and 14% compared to the prior year, primarily due to higher management fees and higher AUM and improved seasonal CCAR and UK OIBDA performance fees.

Roger Thompson: Net management fee margin declined slightly from the prior quarter, but more importantly, was unchanged year-on-year at 48.5 basis points. Our rusty stable net management fee margin continues to be a differentiator compared to many peers, considering fee pressures experienced in the asset management industry. While we're not immune to these fee pressures, we do see our competitively resilient fee rate as a differentiator given the mix of capabilities and channels where we're seeing success and our strong investment performance. Continuing on to expenses. Adjusted operating expenses in the second quarter declined 2% to $294 million. Adjusted LTI declined nearly 30% compared to the prior quarter, largely due to seasonal payroll taxes driven by annual vestings in the prior quarter. In the appendix, we've provided you with a usual table on the expected future amount of existing grants for you to use in your models.

Tom: Management fee margin declined slightly from the prior quarter, but more importantly was unchanged year on year at 48 five basis points.

Tom: A roughly stable net management fee margin continues to be a differentiator compared to many peers considering fee pressures experienced in the asset management industry.

Unnamed Speaker: In the appendix, we've provided you with the usual table on the expected future amortisation of existing grants for you to use in your model. The second quarter adjusted comp-to-revenue ratio declined to 42.8% from 48.2% in the seasonally higher first quarter and declined from 45.6% year-over-year, demonstrating the leverage in our business. Our 2024 expectation of an adjusted compensation ratio range of 43 to 45% remains unchanged. We still anticipate adjusted non-compensation costs to accelerate in the second half of the year and result in an annual growth of mid to high single digits compared to the prior year.

Roger Thompson: The second quarter adjusted comp to revenue ratio declined to 42.8% from 48.2% in the seasonally higher first quarter and declined from 45.6% year-over-year, demonstrating the leverage in our business. Our 2024 expectation of an adjusted compensation ratio range of 43 to 45% remains unchanged. Adjusted non-comp operating expenses increased to 5% compared to the prior quarter, primarily due to higher G&A expenses and increased marketing and advertising expenses. Compared to the prior year, adjusted non-comp operating expenses for flats, reflecting our disciplined expense management and our commitment to operate more efficiently while reinvesting in the business. Similar to my comments last quarter, we still anticipate adjusted non-compensation costs to accelerate in the second half of the year and resulted in an annual growth of mid to high single digits compared to the prior year.

Roger Thompson: We expect non-compensation expenses to increase as a result of investments supporting areas of opportunity in our business. Business, examples being higher expected marketing, advertising, and T&E. We also expect higher operational expenses, such as increased investment administration expenses and the addition of NBK and tabular expenses in the second half of the year. As I said earlier, adjusted operating income increased 28% compared to the prior quarter and increased 36% over the same period a year ago to $165 million. Compared to the prior year, operating income increased $43 million on $56 million over incremental revenue. Our second quarter adjusted operating margin with 36% and increased 570 basis points from a year ago, demonstrating the operating leverage in our business.

Unnamed Speaker: We expect non-compensation expenses to increase as a result of investments supporting areas of opportunity in our business, examples being Higher Expected Marketing, Advertising, and T&E. We also expect higher operational expenses, such as increased investment administration expenses and the addition of NDK and tabular expenses in the second half of the year.

Unnamed Speaker: As I said earlier, Adjusted Operating Income increased 28% compared to the prior quarter and increased 36% over the same period a year ago to $165 million. Compared to the prior year, operating income increased $43 million on $56 million of incremental revenue. Our capital position remained strong as we generated over $220 million in cash flows from operations in the second quarter. Cash and cash equivalents were $985 million as of 1st June, an increase of 9% and 2% from the prior quarter and prior year, respectively. The board has also declared a 39 cents per share dividend to be paid on the 28th of August to shareholders of record as at the 12th of August.

Roger Thompson: Adjusted diluted EPS with 85 cents, up 20% from the prior quarter and up nearly 40% from the second quarter 2023. The increase in adjusted diluted EPS primarily reflects higher operating income.

Roger Thompson: Skipping over slide 9 and moving to slide 10 and a look at our liquidity profile. Our capital position remains strong as we generated over $220 million in cash rose from operations in the second quarter. Cash and cash equivalents were $985 million as we prefer to use the June and increase of 9% and 2% from the prior quarter and prior year, respectively. During the quarter, we funded our quarterly dividend and repurchased approximately 1 million shares for $34 million. The board has also declared a 39% per share dividend to be paid on the 28th of August to shareholders of record as at the 12th of August.

Roger Thompson: Slide 11 looks in more detail as our consistent return of capital to shareholders. We've maintained a healthy quarterly dividend and have reduced shares outstanding by over 20% since 2018. During the first half of 2024, we returned $241 million, including $115 million by share repurchases. As we've communicated previously, our return of capital reflects our positive financial outlook, our cash flow generation, and a strong and stable balance sheet. It does not impede our ability to buy, build, or partner should opportunities arrive to diversify where clients give us the right to win.

Ali Dibadj: Slide 11 looks in more detail at our consistent return of capital to shareholders. Our return of capital reflects our positive financial outlook, our cash flow generation, and a strong and stable balance. With that, I'd like to turn it back over to Ali for an update on our strategic program. Thanks, Roger.

Tom: Has the right to win.

Ali Debatch: With that, I'd like to turn it back over to Ali for an update on our strategic progress. Thanks, Roger. Turning to slide 12 and a reminder of our three strategic pillars of protecting our core businesses, amplifying our strengths, not fully leveraged, and diversifying where clients give us the right to win.

Tom: With that I'd like to turn it back over to Ali for an update on our strategic progress.

Ali: Thanks Roger.

Ali: 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 Debatch: We are in the execution stage, and we believe the strategic vision will lead to consistent organic growth over time. In protecting grow, we've talked previously about the importance of protecting and growing our US intermediary business and the progress we've made in capturing market share. We are now working to leverage this strategic plan to drive change and improve results in the area and Latin American intermediary channels. As Roger discussed, trends across our global intermediary businesses are encouraging, with more work to do to deliver steady results. We've talked about our institutional and diversified alternatives in our product development and expansion efforts, such as our build-out of the active ETFs in the US, and now outside of the US with our acquisition of Tabular Investment Management, which closed on July 1st.

Ali Dibadj: We are in the execution phase, and we believe this strategic vision will lead to consistent organic growth over time. Formed in June 2023, Privacore seeks to take advantage of and be a leader in the democratization of private alternatives into the retail channel. ProvoCore has assembled a highly experienced team, is in the market placing products, has sparked and launched new alternative products, including interval and tender offer funds, and continues to have active conversations with high-quality asset managers interested in partnering with ProvoCore.

Speaker Change: We are in the execution phase and we believe this strategic vision will lead to consistent organic growth over time.

Ali: 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: We are now working to leverage the strategic plan to drive change and improved results in the EMEA and Latin American intermediary channels.

Tom: Roger discussed trends across our global intermediary businesses are encouraging with more work to do to deliver steady results.

Speaker Change: Within amplify we've talked about our institutional and diversified alternative businesses and our product development and expansion efforts such as our Buildout of the active Etfs in the U S and now outside of the U S with our acquisition of Tabular investment management, which closed on July one.

Ali Debatch: We believe the acquisition of Tabular allows Janus Henderson early access to the growing European ETF market and builds on our successful suite of active ETFs in the US. We believe it will also expand our reach into key growth markets in Latin America, the Middle East, and APAC, where there's rising demand for use of ETFs. While retaining all existing tablet products, we anticipate lodging a range of new active products across equities and fixed income strategies, beginning in the second half of this year. Under diversify, we continue to look actively to buy build-out partner to diversify what clients give us the right to win.

Ali Debatch: We've talked previously about our joint venture, Privacore. Formed in June 2023, Privacore seeks to take advantage of and be a leader in the democratization of private alternatives into the retail channel. Privacore has assembled a highly experienced team within the market placing products, has filed to launch new alternative products, including interval and tender offer funds, and continues to have active conversations with high quality as managers interested in partnering with Privacore. As quarter, we announced a strategic partnership with National Bank of Kuwait Group and BK Well and the pending acquisition of their private investment team and BK Capital Partners, which allows Janus Henderson early entry into the rapidly expanding emerging markets, private capital space.

Ali Dibadj: Last quarter, we announced a strategic partnership with the National Bank of Kuwait's group NBK Wealth and the pending acquisition of their private investment team, NBK Capital Partners, which allows Janus Henderson early entry into the rapidly expanding emerging markets private capital space. The M&A pipeline is active for Janus Henderson, Perfect Core Capital, Tabula, and NVK, and we expect these to be only the beginning of what we expect to be more well thought out acquisitions and partnerships of varying sizes to meet our clients' needs and to support the growth of the firm.

Ali Debatch: The M&A pipeline is active for Janus Henderson, Privacore Capital, Cadillac and BK are only the beginning of what we expect to be more well thought out acquisitions and partnerships of varying sizes to meet our client needs. And to support the growth of the firm. I like that previously, you will be disciplined and identifying where to buy, build-out partner, find the right teams with the right product at the right price for client shareholders and employees.

Ali: As I said previously we will be disciplined in identifying where to buy build or partner finding the right team with the right product at the right price for our clients shareholders and employees.

Ali Debatch: Moving to 513 for an update on the encouraging trends we're seeing and strengthening our brand and position again in the sense of the trusted financial partner. In early 2023, we launched a national brand campaign in the US, which is something new for Janus Henderson and a big change from what we've done in the past. Brand matters, and the data suggests that there are a lot of great funds out there, for if the brand isn't relevant, it's difficult to capture flows. We're very pleased that a few recent external surveys seem to confirm that Janus Henderson is making progress in strengthening its brand profile.

Speaker Change: Moving to slide 13 for an update on the encouraging trends, we're seeing in strengthening our brand and positioning Janus Henderson as a trusted financial partner.

Speaker Change: In early 2023, we launched our National brand campaign in the U S, which is something new for Janus Henderson and a big change from what we've done in the past brand matters and the data suggests that there are a lot of great funds out there, but the brand is irrelevant, it's difficult to capture flows.

Ali Dibadj: We're very pleased that a few recent external surveys seem to confirm that Janus Henderson is making progress in strengthening its brand profile. First, the Broadbridge Fund Brand 50 Global Survey, Asset Manager at BrandStrength. Our global brand rank climbs to 16, improving by seven spots. Second, specific to our institutional business, was a global institutional NMG consulting report.

Speaker Change: We're very pleased that a few recent external surveys seem to confirm that Janus Henderson is making progress in strengthening its brand profile.

Ali Debatch: First is a broad-grage fund brand 50 global survey asset manager brand strength. Our global brand rank climbs to 16, improving by seven spots. For additional context, Janus Henderson made the top 25 for the first time in the last year survey at number 23. So it's been a significant climb for us in a relatively short period of time. Second, specific to our institutional business with a global institutional NMG Consulting report. Here we moved up 17 spots from last year to global brand rank of 52 among 890 managers ranking the top six percent of asset managers in the survey.

Speaker Change: First as a Broadridge fund Brent 50 Global survey of asset manager of brand strength, our global brand ranked climbed to 16 improved by seven spots for additional context, Janus Henderson made the top 25 for the first time in last year's survey number 23. So it's been a significant client for us in a relatively short period of time.

Speaker Change: Second specific to our institutional business with a global institutional LMG consulting report, where we moved up 17 spots from last year to global brand ranked 52, among 890 managers ranking in the top 6% of asset managers in the survey.

Ali Dibadj: Here we moved up 17 spots from last year to a global brand rank of 52 among 890 managers, ranking in the top 6% of asset managers in the survey. Lastly, is the CityWire Pro Buyer Report, which is a client experience and satisfaction survey from asset allocators and fund buyers in the U.S. Slide 14 highlights some of the progress Janus Henderson is making towards delivering results more consistently for those clients and our shelters and employees.

Ali Debatch: Lastly, it is a City Wire Pro Buyer report, which is a client experience satisfaction survey from asset allocators and fund buyers in the US. Janus Henderson showed strong improvement overall, earning higher year-over-year scores in 15 of 16 categories. Overall, some of the areas where Janus Henderson did well across all these reports included accessibility, portfolio managers, knowledge of the markets, client interactions, and transparency. I want to thank my colleagues for across the firm for their collective efforts around strengthening our brand profile.

Ali Debatch: It's a great example of one of our core firm values: together we win, which you might recall we are calculated as part of our mission, values, and purpose launch just about a year ago. We'll continue investing our brand globally to raise our profile, drive our business forward, and communicate our purpose of investing in our buyer future together for the over 60 million people globally who directly or indirectly rely on Janus Henderson for their financial wellbeing.

Ali Debatch: Slide 14, how is some of the progress Janus Henderson is making towards delivering results more consistently for those clients and our shoulders and employees? We believe executing on our strategic vision will lead to consistent organic revenue growth over time. Remember, we've previously said that success will not happen overnight, and progress will not be linear. While we're not at our destination yet of delivering steady results over the long term, we are beginning to see indications of real progress across areas of the business that we believe will eventually lead to a virtuous cycle. A world-class investment team continues to generate solid investment results versus benchmark and peers, positioning us well to deliver the best possible outcomes for clients and their clients.

Ali Debatch: Plenty of retention and activity metrics are improving; as previously mentioned, our brand position is strengthening. In looking at financial metrics, our net management theme margin is roughly stable and a key differentiator from Janus Henderson in an industry experiencing relentless heat pressures. We are disciplined in expense management and investing in the business where it strategically makes sense to do so. Being disciplined with our expense-based and the productivity of our technology operations and other functional teams in particular is also contributing to increase offering leverage in the business. A strong balance sheet and cash flow generation enable us to maintain capital returns to shareholders while continuing to invest in the business for future growth.

Ali Dibadj: We are disciplined in expense management and investing in the business where it strategically makes sense to do so. Being disciplined with our expense base and the productivity of our technology, operations, and other functional teams, in particular, is also contributing to increased offering leverage in the business. A strong balance sheet and cash flow generation enable us to maintain capital returns to shareholders while continuing to invest in the business for future growth. Establishing and embedding our enhanced mission, values, and purpose across the organization over the last 15 months has allowed colleagues to move together with quiet confidence in the same direction.

Ali Debatch: Originally, we've added external talent and promoted from within with a best athlete lens. Attracting and rotating the best talent allows us to deliver for clients and execute our strategy over the long term. Establishing and embedding our hands, emissions, values, and purpose across the organization for the last 15 months allows colleagues to move together with quiet confidence in the same direction. Finally, enacting an effective M&A strategy presents highly experienced talent while creating expanded opportunities for colleagues and allows us to fill in capacity gaps in areas of the industry that are growing; we're inclined to give us the right to win.

Ali Dibadj: Finally, enacting an effective M&A strategy brings in highly experienced talent while creating expanded opportunities for colleagues and allows us to fill in capability gaps in areas of the industry that are growing, where clients give us the right to win. Finishing up on slide 15.

Ali Debatch: Finishing up on 515, we are proud of and energized by the progress made this quarter, building on the results of past quarters. And while there is more work to do, we believe we are on the path to delivering consistent results over time. Investment performance is solid across all time periods versus benchmarks and peers. Net inflows were positive $1.7 billion and almost 2% organic growth rate and reflect a 19% increase in growth sales compared to the prior year. It marks our second quarter of net inflows in the last six quarters and provides a tangible indication that our strategic plan is certainly starting to take hold.

Ali Dibadj: We are proud of and energized by the progress made this quarter, building on the results of past quarters. And while there is more work to do, we believe we are on the path to delivering consistent results over time. Investment performance is solid across all time periods versus benchmarks and peers. We are executing against our strategic objectives, and I'd like to thank my teammate, Janus Henderson, for putting in all the extra effort.

Ali Debatch: Adjusted diluted EPS increased 37% compared to last year, reflecting strong markets, investment performance, positive flows, expense management, and increased productivity. Our strong balance sheet and financial results allow us to continue returning cash to shareholders through dividends and share buyback while reinvesting in the business for future growth. We are executing against our strategic objectives. And I'd like to thank my teammates at Janus Henderson for putting in all the extra effort. It is clearly, clearly starting to pay off. Our focus continues to be helping clients define and achieve superior financial outcomes to deliver desired results for our clients, shareholders, employees, and all of our stakeholders.

Speaker Change: Reflecting strong markets investment performance positive flows expense management and increased productivity.

Speaker Change: Our strong balance sheet and financial results allow us to continue returning cash to shareholders through dividends and share buybacks, while reinvesting in the business for future growth.

Speaker Change: We are executing against our strategic objectives.

Speaker Change: Like to thank my teammates at Janus Henderson for putting in all the extra effort. It is clearly clearly starting to pay off.

Speaker Change: Our focus continues to be helping clients define and achieve superior financial outcomes and to deliver desired results for our clients shareholders employees and all of our stakeholders.

Operator: Let me now turn the call back over to the operator to take your questions. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If, for any reason, you would like to remove that question, please press star followed by two. Again, to ask a question, press star one.

Speaker Change: Let me now turn the call back over to the operator to take your questions.

Speaker Change: Thank you.

Speaker Change: I would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to remove that question. Please press star followed by two.

Speaker Change: Again to ask a question press star one.

Operator: Would you ask that you let me yourself to asking one question and one follow up?

Speaker Change: We do ask that you limit yourself to asking one question and one follow up as a reminder, if you're using a speaker phone. Please remember to pick up your handset before asking your question. We will pause briefly as questions are registered.

Operator: As a reminder, if you're using a speaker phone, please remember to pick your hands up before asking your question. We will pause our briefly as questions are registered.

Bill Katz: Our first question goes to line of bill cats with TD Securities. Your line is open.

Ali Dibadj: It is clearly, clearly starting to pay off. Our focus continues to be helping clients define and achieve superior financial outcomes to deliver desired results for our clients, shareholders, employees, and all our stakeholders. Our first question goes to the line of Bill Katz with TD Securities. Your line is open. Okay, thank you very much. Good morning.

Speaker Change: Our first question goes to the line of Bill Katz with TD Securities. Your line is now open.

Bill Katz: Thank you very much. Good morning. Thank you for all the detail. I'm sort of intrigued by your discussion on the brand improvement. And I'm across your platform, which is nice to see.

Ali Dibadj: Thank you for all the detail. I'm sort of intrigued by your discussion on the brand improvement across your platform, which is nice to see. Can you talk a little bit about, as you step function up the relative ranks, any statistical relevance you see in terms of the improvement for gross and or net sale opportunities, whether it be on the retail, intermediary side, or institutional side, and how that might compare, maybe, U.S. versus globally? Thank you.

Bill Katz: Okay. Thank you very much good morning, Thank you for all the detail.

Bill Katz: Im sort of intrigued by your discussion on the brand improvement and across your platform, which is nice to see can you talk a little bit about as you step function up the relative ranks.

Ali Debatch: Can you talk a little bit about as you step function up the role of ranks of any statistical relevance you see in terms of the improvement for growth and or net sale opportunities, whether it be on the retail and intermediary side, in social side, and how that might compare maybe US versus globally? Thank you.

Speaker Change: Of any statistical relevance you see in terms of the improvement for gross and net sale opportunities whether it be on the retail intermediary side institutional side and how that might compare maybe U S versus globally. Thank you.

Ali Debatch: Hey, Bill, thanks for the question. We are very pleased with the one-to-one correlation between brand rankings and getting flows in the door. But it's very clear that we have to be in a consideration set. And if your brand isn't known, if you're not up there in terms of the rankings, you won't be considered. That's both from an institutional perspective directly. That's also from a consultant perspective, too, our partners as consultants. And for sure, for sure, from an intermediary view of advisors. A lot of what folks on the client side want to do is deliver for their clients with trusted brands, and that's something that we are building up here over time.

Bill Katz: Hey, Bill Thanks for the question.

Speaker Change: We are very pleased with the brand progress that we're making.

Speaker Change: You would imagine that it's not a one to one correlation between brand rankings and getting flows in the door, but it's very clear that we have to be in the consideration set.

Ali Dibadj: And if your brand isn't known, if you're not up there in terms of the rankings, you won't be considered. That's both from an institutional perspective directly, that's also from a consultant perspective too, our partners as consultants, and, for sure, for sure, from an intermediary view of advisors, right? A lot of what folks on the client side want to do is deliver for their clients with trusted brands, and that's something that we are building up here over time.

Ali Dibadj: Now, we are, just to be very clear, maniacal about our ROI as well. We have analytics around all of this stuff. We are very surgical in the way that we promote our brand. And the good news is, we have a lot to say. Okay, thank you.

Ali Debatch: Now, we are just to be very clear, maniacal about our ROI as well. We have analytics around all of this stuff. We are very surgical in the way that we promote our brand. And the good news is we have a lot to say. We have a lot to say now about Janice Henderson. Janice Henderson is really special in terms of our investors that we have. We do client service like no one else. And we want people to experience that. We want clients to experience that. Our infrastructure, IT operations, everything else is reliable and trustworthy. So we have a lot to say.

Ali Debatch: So we want to get our brand out there. It is working. And you're seeing it correlated, not one-to-one, not a formula, but correlated with our success of it.

Speaker Change: I don't have a formula, but correlated with our success of the business.

Bill Katz: Thank you.

Ali Dibadj: This is a follow-up, maybe strategically toward the end of your comments, Ali, you talked about only the beginning of the M&A pipeline, which is active and alive in a well. Maybe I'm paraphrasing a little bit there. Could you talk a little bit about where it's going, what kind of things you're looking at, and then could you loop into that, just maybe an update on how the economics work with Privacore? I think there's been a lot of signings of late, and then how are you thinking about maybe buying in the second part of that platform in the second half of this year? Thank you.

Bill Katz: This is a follow-up, maybe strategically toward the end of your comments. All you talked about that only at the beginning on the M&A pipeline, which is active and alive, and well, maybe I'm paraphrasing a little bit there. Could you talk a little bit about where it's seasoning, what kind of things you're looking at, and then could you loop into that, just maybe an update on how the economics work with Privacore, and I think it's been a lot of signings of late, and then how are you thinking about maybe buying in the second part of that platform?

Speaker Change: Okay. Thank you.

Speaker Change: Follow up maybe strategically toward the end of your comments al you talked about that are only the beginning on the M&A pipeline, which is active and alive and well.

Speaker Change: Maybe I'm paraphrasing, a little bit there could you talk a little bit about where it is seasoning what kinds of things you're looking at and then could you loop into that just maybe an update on how the economics work with Premier core because I think there's been a lot of signings of late and then how you're thinking about maybe buying in the second part of that platform. It's the second half of this year. Thank you.

Ali Debatch: Or is this second after this year? Thank you.

Bill Katz: Yeah.

Ali Debatch: Sure, thanks again for that question.

Ali Dibadj: Sure. Thanks again for that question. So our view on M&A hasn't changed at all. We're going to continue to be client-led. We're going to look actively to buy, build, or partner to support our strategy and to support our clients. We want to do everything we can to protect and grow, amplify, and diversify our businesses and execute our strategy. I want to be clear, though, that M&A is not our strategy. It's not a strategy unto itself.

Speaker Change: Sure and thanks again for that question. So our view on M&A has.

Ali Debatch: So our view on M&A hasn't changed at all. We're going to continue to be client-led. We're going to look actively to buy, build, or partner to support our strategy and to support our clients. We want to do everything we can to protect and grow, amplify, and diversify our businesses and execute our strategy.

Bill Katz: Isn't changed at all we're going to continue to be client led were.

Bill Katz: We're gonna look actively to buy build or partner.

Bill Katz: Two to support our strategy and to support our clients want to do everything we can to protect and grow amplifying diversify our businesses and execute our strategy I want to be clear, though that M&A is not our strategy. It's not as cut into itself. I think you may hear that from others. Its not ours for us it's a tool to deliver on.

Ali Debatch: I want to be clear, though, that M&A is not our strategy. It's not a strategy in itself. I think you may hear that from others. It's not ours. For us, it's a tool to deliver on our strategy.

Bill Katz: Our strategy.

Ali Debatch: Okay, M&A timing is difficult to predict. Obviously, some transactions come and go. I will say that we are aware of everything that's out there in the marketplace, and almost everything, really everything's safe for one, that has actually transacted. We are very careful in the way we go about M&A. We look at performance of the teams. We look at the processes that they go through. We look at people, and I'll come back to that in a second. We look at the potential growth, as well as obviously the financials and the price of it. I would say that 90% of where we triage is actually around the people in the culture.

Bill Katz: Okay, M&A timing is difficult to predict obviously some transactions come and go I will say that we are aware of everything that's out there in the marketplace in almost everything.

Bill Katz: Everything except for one that has actually transacted.

Bill Katz: We were very careful in the way we go about M&A.

Bill Katz: We look at performance of the teams when you look at the processes that they go through and you look at people and I'll come back to that a second when we look at the potential growth as well as obviously the financials and the price of it.

Bill Katz: I would say that 90% of where we triage is actually around the people and the culture.

Ali Debatch: It's extraordinarily important to make sure that the culture and the people tie into our culture, which is so client-focused, so fundamentally focused in terms of understanding what we're investing in. We want to partner with teams who want to grow, want to leverage our global distribution footprint, our research skillset, and our strong infrastructure to grow the businesses.

Bill Katz: Ordinarily important to make sure that the culture and the people tie into our culture, which is so clients focus so fundamentally focused in terms of understanding what we're.

Bill Katz: What we're investing in and.

Bill Katz: And we want to partner with teams who want to grow on a leverage our global distribution footprint our research skill set.

Bill Katz: Our strong infrastructure to grow the businesses. So we've talked about some of the areas. We're looking at obviously, what we look for is things that are not overlapping as much as possible with the businesses that we have trying to bring differentiated product to our clients on areas like private credit in areas like solutions.

Ali Debatch: We've talked about some of the areas we're looking at. Obviously, what we look for is things that are not overlapping as much as possible with the businesses that we have trying to bring differentiated product to our clients. Areas like private credit, areas like solutions, areas with quality biases, those types of things are a lot of areas that we're looking at. We'll continue to make sure that we're disciplined in bringing forth the right teams to deliver for our clients and their clients. As we have been with Tabula, with NVK Capital, with Privacore, and all the way back to just a couple of years ago with Emerge Market.

Roger Thompson: Roger, do you want to go through some of the Privacore details?

Roger Thompson: Yeah, I mean, to start, before we get into the accounting for it, we're really excited by the significant progress to date at Privacore Capital. They partnered with a premier, almost $200 billion alternative asset manager. They completed a placement in the second quarter.

Roger Thompson: It's a private placement, so we're unable to talk about specifics in terms of capital raised or who that partner is. And we've also previously talked about them partnering with a second firm, a tech investment firm, and they're also working with other alt managers. Again, pretty size of all ones, $50 billion plus, and a file registration statements for two new alternative funds. And I can say, excited about the team-native assembles, they're in the market placing products; they file to launch new products. that includes interval and tender funds, and continues to have high-quality conversations. We currently own 49%; so it is the costs, and they are primarily costs at the moment.

Roger Thompson: Those revenues stand to come through with that first fundraise, come through as NCI.

Roger Thompson: We do have the option to purchase the other 51%, but that's still five or so months away, so it'll be early to talk about that now. Now, we'll assess our options in due course.

Bill Katz: Purchase the other 48, 51%, but that's still five months away. So a little early to talk about that now, we'll assess our options and vehicles.

Ali Debatch: Just to add a little bit to remind folks of why PrimaCore is so exciting.

Ali Dibadj: I think you may hear that from others. It's not ours. For us, it's a tool to deliver on our strategy. Just to add a little bit to remind folks of why Privacore is so exciting. It sits at the nexus of clear needs in this industry. We have a set of clients, wirehouse clients, and wealth clients who want access beyond just the big, you know, some folks are reporting today, the Apollo, the Blackstone, the others; they want access beyond that to differentiate and also to make sure that they get the very best performance. So those large firms have great performance, but they're not always the best performers in some of these categories. That's what the wealth folks want.

Speaker Change: Just to just add a little bit to remind folks.

Speaker Change: Why premier core so exciting and it sits at the Nexus of clear needs. In this industry. We have a set of clients wire house clients wealth clients, who want access beyond just the big somehow.

Ali Debatch: It sits at the nexus of clear needs in this industry. We have a set of clients, wirehouse clients, wealth clients who want access beyond just the big, you know, folks who are reporting today, the Apollo, the Blackstone, the others. They want access beyond that to differentiate and also to make sure that they get the very best performance. Those large firms have great performance, but they're not always the best performance in some of these categories. That's what the wealth folks want. And then there are really strong investors. Roger mentioned a few, and there's a long list of others that are in the pipeline for PrimaCore that have fantastic performance, but just don't have the scale, even at $50 billion, even at $200 billion, to get to that wealth channel.

Speaker Change: Some folks are reporting today, the Apollo the Blackstone and the others they want access beyond that.

Speaker Change: To differentiate and also to make sure that they get the very best performance, how those large firms have great performance, but they're not always the best performance in some of these categories. That's what the wealth folks want and then there are really strong investors Roger mentioned, a few and there is a long list of others that are in the pipeline for <unk> core that have fantastic.

Ali Dibadj: And then there are really strong investors. Roger mentioned a few, and there's a long list of others that are in the pipeline for Privacore that have fantastic performance, but just don't have the scale, even at $50 billion, even at $200 billion, to get to that wealth channel. And that's where Privacore sits within those, between those, as a best-in-class open architecture driver of democratization for all. Thank you

Roger Thompson: Performance, but just don't have the scale EBIT at $50 billion.

Roger Thompson: <unk> 200 billion to get to that wealth channel.

Ali Debatch: And that's where PrimaCore sits within those, between those.

Roger Thompson: That's where <unk> sits within those between those.

Ali Debatch: As a best-in-class open architecture driver of democratization of alternatives.

Roger Thompson: <unk> a best in class open architecture draw.

Speaker Change: Driver democratization of alternatives.

Bill Katz: Thank you, Bill.

Bill Katz: Thank you Bill.

Ken Worthington: Our next question goes to line of Ken Worthington with JP Morgan.

Speaker Change: Our next question comes from the line of Ken Worthington with JP Morgan. Your line is now open.

Ken Worthington: Your line is by Wilburne. Hi, morning, and thanks for having the question. I want to dig into the ETF business and Tabula given that that's just closed. So maybe first dig into how you see the non-US ETF business growing. You mentioned you plan on launching new equity products. Can you give us some more color there? Are you thinking of going active, passive, or factor based? I think your US side has been very creative. So how are you thinking about taking that creativity outside the US? And then maybe the second part is you've had amazing success with the US fixed income ETFs.

Ken Worthington: Hi, good morning, and thanks for taking the question.

Ken Worthington: I'd like to dig into the ETF business in tabular given that Thats just closed so maybe first dig into how you see the non U S. ETF business growing you mentioned you plan on launching new equity products can you give us some more color. There are you thinking of going active passive factor based.

Speaker Change: I think your U S side has been very creative so how are you thinking about taking that creativity.

Speaker Change: Outside the U S. And then maybe the second part is you've had amazing success with the U S. Fixed income Etfs can you discuss to what extent you can leverage.

Ken Worthington: Can you discuss to what extent you can leverage the success or the learning you've had on the US fixed income side to drive success scaling Tabula funds in Europe? Thanks.

Ali Dibadj: Can you discuss to what extent you can leverage the success or the learning you've had on the U.S. fixed income side to drive success scaling tabula funds in Europe? Thanks, Ken, for the questions. Let me start off with the ETF franchise. We are very proud of the progress we've been making there. The team has done a phenomenal job.

Speaker Change: The success or the learnings you've had on the U S fixed income side to drive success scaling tabular funds.

Speaker Change: In Europe. Thanks.

Ali Debatch: Thanks, Ken, for the questions.

Ali Dibadj: It is now crossing, I'd say about $19 billion in ETFs AUM for the business. And what's really exciting is there are four ETFs that we have that are each above $1 billion in AUM. So it's really, As of late, so back in Q4, we launched an ETF there called JSI. We've also then filed for about a couple ETFs. An emerging market debt ETF, as an example, is one that we filed there.

Speaker Change: Thanks, Ken for the question, let me start off with the ETF.

Ali Debatch: Let me start off with the ETF franchise. We are very proud of the progress we've been making there. The team has done a phenomenal job. It is now crossing, I'd say about $19 billion ETFs AUM for the business. And what's really exciting is there are four ETFs that we have that are each above a billion dollars in AUM. So it's really moving beyond just a few ETFs and becoming more broad. The momentum has been great. And the momentum has been very aligned with our strategy. Remember what we're doing is we're democratizing a set of capabilities that were addressable only by institutional clients and are bringing that to a broader reach of clients.

Speaker Change: Franchise, we are very proud of the progress we've been making there the team has done a phenomenal job on it.

Speaker Change: Is now crossing I'd say about $19 billion.

Speaker Change: Etfs.

Speaker Change: AUM for the business.

Speaker Change: And what's really exciting is therefore etfs that we have better each about $1 billion in AUM. So it's really.

Speaker Change: Moving beyond just a few etfs and becoming more broad.

Speaker Change: The momentum has been great and the momentum has been very aligned with our strategy remember what we're doing is we're democratizing.

Speaker Change: Set of capabilities that were.

Speaker Change: Our addressable only by institutional clients and we're bringing that to a broader reach of clients. So we think that there is a continued enormous potential in the U S first to grow the ETF franchises, we've launched Etfs.

Ali Debatch: So we think that there's a continued enormous potential in the US first to grow the ETF franchises. We've launched ETFs. As of late, so back in Q4, we launched an ETF there called JSI. We've also then filed, you may see, about a couple ETFs, an emerging market debt ETF as an example, is one that we've filed there, and so we think there's a continued room to grow as we build our, to use a word from earlier answer, brand in active ETFs in the US.

Speaker Change: As of late so back in Q4, we launched an ETF, they're called J S. Sai.

Speaker Change: We've also then filed you may see about a couple of Etfs and emerging market debt Etfs as an example.

Speaker Change: Is one that we filed there and so we think there is continued room to grow as we build our to use a word from an earlier answer a brand.

Ali Dibadj: And so we think there's continued room to grow as we build our, to use a word from an earlier answer, brand in active ETFs in the U.S. Now, shifting over to Europe and Tabula. We see the exact same patterns from an analytical perspective in Europe as we saw in the U.S., and that's why we want to go where the puck is going and partner with Tabula in-house. They are an extraordinarily strong team.

Speaker Change: In active Etfs in the U S.

Ali Debatch: Now shifting over to Europe and Tabula, we see the exact same patterns from an analytical perspective in Europe as we saw in the US, and that's why we want to go where the puck is going and partnered with Tabula, brought Tabula in-house. They are an $500 million of AUM in 15 different countries, 10 different trading venues, and we see that as a fantastic platform to continue to grow the funds that they have, and then add our own funds. To your very specific question, we do expect fixed income and equities to be on those platforms, as they will be in the US as well, and all in the active realm.

Speaker Change: Now shifting over to Europe in tabular.

Speaker Change: We see the exact same patterns from an analytical perspective in Europe as we saw in the U S and that's why we want to go where the puck is going and.

Speaker Change: With Tabula <unk> in house and they are an extraordinarily strong team.

Ali Dibadj: They already have a great presence with their nine ETFs and 500 million dollars of AUM in 15 different countries, on 10 different trading venues, and we see that as a fantastic platform to continue to grow the funds that they have and then add our own funds. To answer your very specific question, we do expect fixed income and equities to be on those platforms as they will be in the U.S. as well, all in the active realm.

Speaker Change: They already have great presence with their nine Etfs and $500 million of AUM in 15 different countries 10 different trading venues.

Speaker Change: And we see that as a fantastic platform to continue to grow the funds that they have and then add our own funds.

Speaker Change: Very specific question, we do expect fixed income and.

Speaker Change: Equities to be on those platforms as they will be in the U S as well and all of the active realm we.

Ali Dibadj: We believe that we should be client-led and agnostic to the vehicles, and so our differentiator is really the investment that we put in a form that clients want to have contact with. Now the last point that I'd say, Ken, on Tabula. It is absolutely, yes, based in London. It's a European franchise right now.

Ali Debatch: We believe that we should be a need to be client-led and be agnostic to the vehicles, and so our differentiators really need investments acumen that we've put in a form that clients want to have contact with. Now, but the last point that I say can is on Tabula, it is absolutely yes based in London, it's a European franchise right now, but what we're also seeing is that other regions, Latin America, Middle East, APEC, places we have presents, are also looking for ETFs in USIT form, and Tabula allows us to do that as well.

Ken: We believe that we should be or need to be client led and be agnostic to the vehicles and so our differentiator is really the investment acumen that we put in a forum that clients want to have contact with now the last point that I'd say Ken is.

Speaker Change: On tabular, absolutely, yes based in London, It's a European franchise right now, but what we're also seeing is that other regions Latin America Middle East APAC Places we have presence. We're also looking for Etfs and use it for them and tabulate allows us to do that as well so think about square.

Ali Dibadj: But what we're also seeing is that other regions, Latin America, the Middle East, APAC, places we have a presence in, are also looking for ETFs in USIP form. And Tabula allows us to do that as well. So think about it squarely in that Amplify bucket of our three-pronged strategy. We're very pleased with the progress so far in our ETF franchises. We think with Tabula, you're right, just closing July 1 could help us grow that business even further. Our next question goes to Dan Fannon with Jefferies. Your line is now open.

Ali Debatch: So think about it squarely in the amplify bucket of our three-prong strategy. We're very pleased with the progress so far in our ETF franchises. We think with Tabula, you're right, just closing July 1, can help us grow that business even further.

Speaker Change: And that amplify bucket of our three pronged strategy, we're very pleased with the progress so far in our ETF franchises, we think with tabular Youre right just closing July one.

Speaker Change: Can help us grow that business even further.

Speaker Change: Okay.

Ali Debatch: Thank you, Ken.

Ken Worthington: Thank you Ken.

Dan Fannon: Our next question goes to the line of Dan Fanon with Jeffries. Your line is our weapon. Great, thank you. So I wanted to just expand upon some of the comments just as you think about momentum in the business, the flow trend, certainly in the second quarter coming in strong. I know you've talked in the past about not being linear, but can you just talk about where you're seeing the most improvement in growth sales and how you think that translates, you know, prospectively into the back half of the year?

Speaker Change: Our next question comes from the line of Dan Fannon with Jefferies. Your line is now open.

Speaker Change: Okay.

Dan Fannon: Great. Thank you so wanted to just expand upon some of the comments just as you think about momentum in the business the flow trends certainly in the second quarter coming in strong I know you've talked in the past about not being linear but can you just talk about where youre seeing the most improvement in gross sales and how you think that translates prospectively into the <unk>.

Speaker Change: Half of the year.

Speaker Change: Yes.

Dan Fannon: Sure, thank you. It's difficult, obviously, to give projections because so many things are out of anyone's control, but we'll continue to control what we can control and continue to be client-led. That means continue to be focused on investment performance, on outstanding client service, on a robust infrastructure, and executing on our strategy. Our strategy, as you've heard several times now, hasn't moved. We're protecting, growing our core businesses, we're amplifying our strengths, and we're diversifying for clients to give us the right. And we'd like to think that we're seeing proof points. I think this quarter and, and certainly run up to this quarter from other quarters are proof points that our strategy seems to be bearing proof.

Dan Fannon: Sure. Thanks, Dan.

Ali Dibadj: It's difficult, obviously, to give projections, because so many things are out of anyone's control. But we'll continue to control what we can control and continue to be client-led. That means continuing to be focused on investment performance, on outstanding client service, on a robust infrastructure, and executing on our strategy. Our strategy, as you've heard several times now, hasn't moved.

Speaker Change: It's difficult obviously to give projections because so many things are out of anyone's control.

Speaker Change: But we will continue to control what we can control.

Speaker Change: <unk> continued to be client led.

Speaker Change: That means continuing to be focused on investment performance on outstanding client service on a robust infrastructure.

Speaker Change: And executing on our strategy and our strategy as you've heard several times now hasn't moved protecting and growing our core businesses, we're amplifying our strengths and we're diversifying for clients give us the right.

Ali Dibadj: We're protecting and growing our core businesses. We're amplifying our strengths, and we're diversifying for clients to give us the right opportunity. Siegenthaler, it's a tough one to pronounce there.

Speaker Change: And we'd like to think that we're seeing proof points I think this quarter and certainly run up to this quarter from other quarters are proof points that our strategy seems to be bearing fruit you can look at that.

Ali Debatch: You can look at that from an intermediary perspective, look at US intermediaries of start and how that's expanding to other parts of the world intermediary. Think about it as well from an institutional perspective. We're clearly seeing leading indicators on the institutional side look positive: number of meetings, number of consultant discussions, number of RFPs; you know, perhaps this quarter as well. You can see some lagging indicators looking good too, in terms of flows and institutional. And we think that our strategy is bearing proof of organic perspective. We have seen market share continue to grow. That's been something not just this quarter, but for many, many quarters in a row.

Speaker Change: From an intermediary perspective look at U S. Intermediary is a start and how that's expanding to other parts of the world intermediary.

Speaker Change: About it as well from an institutional perspective.

Speaker Change: We're clearly seeing leading indicators on the institutional side look positive number of meetings with.

Speaker Change: Consultant discussions number of Rfps.

Speaker Change: Perhaps this quarter as well you can see some lagging indicators looking good too in terms of the flows in institutional and we think that our strategy is bearing fruit from organic perspective, we have seen market share continue to grow.

Speaker Change: That's been something not just this quarter, but for many many quarters in a row, we think that will eventually lead to organic growth over time and that's before we talk about some of the inorganic capabilities.

Ali Debatch: We think that will eventually lead to organic growth over time. And that's before we talk about some of the inorganic capabilities. Whether it be emerging market debt that we bought on board as a team with debt, whether it be around the corner. We think that we have a real progress shown and hopefully on a path to grow organically, consistently over time. And we certainly hope this quarter is viewed as an example of being on the right track.

Speaker Change: Whether it be emerging market debt that we brought on board as a team with that whether it be proven core as a JV, whether it be Tyler and VK and anything else around the corner.

Speaker Change: We think that we have a real progress shown and hopefully on a path to grow organically consistently over time and we certainly hope this quarter is viewed as an example of being in the right direction.

Roger Thompson: I think just adding onto that a little bit again. We talked about leveraging from the US intermediary business, and obviously we've seen some really great progress there over the last couple of years on both the growth and net side of the business. But that really is coming to bear in Europe, Latin, you know, we're positive in just about every country now in consensual Europe, positive in Latin America, we're positive in Asia, and we're positive in Australia. So, you know, the breadth of that is starting to come through. Again, you know, we've got; we still want a lot to work to do.

Jim: Well I think Jim.

Speaker Change: And I guess, just just adding on to that a little bit again, we've talked about leveraging from the U S intermediary business and obviously, we've seen some really great progress there over the last couple of years.

Jim: On both the gross.

Speaker Change: Both the growth in gross and net side of the business, but that really is coming to bear.

Speaker Change: Europe Latam.

Speaker Change: We're positive in just about every country now in Continental Europe positive in Latin America with.

Speaker Change: Positive in Asia, and we're positive in Australia. So the breadth of that is starting to come through again.

Speaker Change: We've got we still got a lot to work to say this is this isn't going to be a linear path.

Roger Thompson: This isn't going to be a linear path, but the second quarter is demonstration of the beginnings of the broadening of that flow and what we're seeing across the world, and obviously we hope to continue that over time. But like I said, it's really a linear path.

Speaker Change: But the second quarter is.

Speaker Change: As demonstration of the beginnings of the broadening of that flow and what we're seeing across the world and obviously, we hope to continue.

Speaker Change: Continue that over time, but like I sites.

Speaker Change: It's really a linear path.

Speaker Change: Understood.

Dan Fannon: I get just the follow up there on the distribution side US institutional. I know it's been an area of focus for you, but obviously legacy, Janus, that has not been an area of strength. To talk about where you are in the maturation of that opportunity and if you have the right team in place, you mentioned meetings and consultants. I guess if you could just put a little more context around where you are in the kind of evolution of that channel would be. It's very helpful. Sure, remember, we had very positive flows in 2023 in institutional globally, and we said we were going to rebuild the pipeline that's probably 12 or 18 months ago from now, and this quarter, we had over 10 distinct funding that we said earlier, 100 to 400 million dollars pop.

Speaker Change: And I guess, just a follow up there on the distribution side U S. Institutional I know, it's been an area of focus for you, but obviously legacy Janus that has not been an area of strength can you talk about where you are in the maturation of.

Speaker Change: That opportunity.

Speaker Change: You have the right team in place you mentioned meetings and consultants I guess, if you could just put a little more context around where you are in the kind of evolution of that channel would be helpful.

Speaker Change: Sure remember, we had very positive flows in 2023 and institutional globally.

Speaker Change: And we said we were going to rebuild the pipeline, that's probably 12 or 18 months ago from now and and.

Speaker Change: This quarter, we had over 10 distinct fundings will be said earlier.

Speaker Change: $100 million to $400 million.

Ali Debatch: I think that's demonstrating that our efforts at broadening our institutional client base is working. Some of that is brand; some of that is also investment performance, so that is client service. And importantly, it's bringing different capabilities to those institutional clients, so those funding were completely different capabilities, completely different investment strategies. We believe also in receiving; you mentioned this, and we mentioned this, that the consultant relationships that we have are growing quite well as well. We're really seeing those relationships being enhanced over time, and we think that that will continue to drive growth. Again, perhaps not linearly, but drive growth for us.

Speaker Change: Pop.

Speaker Change: Think that's demonstrating that our efforts are broadening our institutional client base.

Speaker Change: Some of that is brand some of that is obviously investment performance. Some of that is client client service and importantly, it's bringing different capabilities to those institutional clients. So those fundings were completely different capabilities complete different investment strategies.

Speaker Change: We believe also in were seeing you mentioned this and we mentioned this.

Speaker Change: The consultant relationships that we have are growing quite quite well as well.

Speaker Change: We're really seeing those relationships be enhanced over time, and we think that that will continue to drive growth again, perhaps not linearly, but drive growth for us the leading indicators as he mentioned are good but were not going to count our chickens before they patched so to speak.

Ali Debatch: The leading indicators, as you mentioned, are good, but we're not going to count our chickens before they pass, so to speak.

Speaker Change: Yeah.

Dan Fannon: Thank you.

Speaker Change: Thank you.

Craig Segan: Thank you, Dan.

Speaker Change: Thank you Dan. Our next question comes from the line of Craig Seeger, Sigyn Sandler with Bank of America.

Craig Segan: Our next question goes to line of Craig Segan, Segan Thaler with Think of America. Your line is not open. Segan Thaler, it's a tough one to pronounce there. Good morning, Ali, and congrats on the positive flows. Okay, thanks. So a big part of that positive flow trajectory was the fixed income business. You know, it's seeing strong momentum. How much of that is accelerating reallocations and duration extensions, which we've been seeing more of in the industry? And then, you know, what part of that would you attribute specifically to Janice's line up, especially with the big hit you've had with JAAA, the triple A COETF continuing the ramp.

Speaker Change: Line is now open.

Siegan Sandler: Siegan's dollar it's a it's a tough one to pronounce Derek good morning, Ali and congrats on the positive flows.

Ali Dibadj: Good morning, Ali, and congrats on the positive flows. Hey Craig, thanks. So, a big part of that positive flow trajectory was the fixed income business. It would seem that it has strong momentum.

Ali Dibadj: How much of that is accelerating reallocations and duration extensions, which we've been seeing more of in the industry? And then, what part of that would you attribute specifically to Janus's lineup, especially with the big hit you've had with JAAA, and the AAA COETF continues to ramp? Thanks for the question. Let me disaggregate that a little bit.

Craig: Hey, Craig Thanks.

Siegan Sandler: So.

Speaker Change: A big part of that positive flow trajectory was the fixed income business.

Speaker Change: It was seeing strong momentum how much of that is decelerating reallocations in duration extensions, which we've been seeing more of in the industry and then what part of that would you attribute specifically to Genesis lineup, especially with the big hit you've had with Jay.

Speaker Change: The AAA CLO ETF continues to ramp.

Ali Debatch: Thanks for the question. Let me disaggregate that a little bit first from about a fixed income perspective. We clearly are seeing interest from clients looking at fixed income. I think the interest will be even greater when the curve changes this complexion, and perhaps rates come down in the short term as well. Well, we are very pleased with our fixed income business right now. The interesting thing is we're at Janus Henderson not as well known for fixed income, and we see that as a very interesting long term opportunity for us, especially if you look at our performance.

Ali Dibadj: First, from our fixed income perspective, we clearly are seeing interest from clients looking at fixed income. I think the interest will be even greater when the curve, you know, changes its complexion, and perhaps rates come down in the short term as well. We are very pleased with our fixed income, extraordinarily good, and we have a broad palette of opportunities for clients to take advantage of. If you want income, we have multi-asset credit; we have multi-sector income. Those things are growing for us. Certainly, as you mentioned, if you want secured ties, we have them in direct form to institutionals, but we also have them in ETF forms. JAAA is an example of that.

Speaker Change: Thanks for the question let me.

Speaker Change: Disaggregate that a little bit first from about a fixed income perspective, we clearly are seeing interest from clients looking at fixed income.

Speaker Change: The interest will be even greater when the curve.

Speaker Change: Changes its complexion and.

Speaker Change: Perhaps rates come down.

Speaker Change: In the short term as well.

Speaker Change: We are very pleased with our fixed income.

Speaker Change: Business right now.

Speaker Change: Getting thing is were at Janus Henderson and not as well known for fixed income and we see that as a very interesting long term opportunity for us, especially if you look at our performance. So if you think of our performance on a 135 10 year basis were 88%, 72%, 83% 92% of our.

Ali Debatch: So if you think about performance on a 1, 3, 5, 10 year basis, we're 88%, 72%, 83%, 92% of our AEM performs benchmark on that. So our performance is extraordinarily good, and we have a broad palette of opportunities for clients to take advantage of. If you want income, we have multi-asset credit; we have multi-sector income. Those things are growing for us. Certainly, as you mentioned, if you want secure ties, we have it in direct form to institutions, but we also have it in ETF forms. J for plays an example of that plus a JNBS, JSI, J triple B is growing for us as well.

Speaker Change: AUM outperformed benchmark on that so our performance is extraordinary good and we have Ah Ah.

Speaker Change: Broad pallet of opportunities for clients to take advantage of I don't know if you want income we have multi asset credit we have multi sector income.

Speaker Change: Those things are growing for US certainly as you mentioned if you want to securitize, we have at hand.

Speaker Change: Direct formed institutional but we also have in an ETF form taped replay as an example, and that also J MBS GSI J Triple BS are growing for us as well.

Ali Dibadj: Also, JMBS, JSI, and JBBB are growing for us as well. If you want short-term, we certainly have short-term in the U.S., and we have an ETF form. Vanilla is an example of that, or VNLA.

Ali Debatch: Well, if you want short term, we certainly have short term in the US, and we have an ETF form vanilla as an example of that, or the NLA. We have regional strategies: Australia, UK, US, the American market debt that we talked about. So we think we're actually very well positioned for the current, and your question, Craig, likely even more future interest in fixed income as other clients want that business. Now, beyond that, from a US intermediary perspective and a growth view, we do think that we have a more opportunity to bring that expertise that we have on the secure ties side globally as well, but that's true for other areas of our business and fixed income too.

Speaker Change: If you want short term and we certainly are short term in the U S and we Havent ETF form Vanilla is an example of that are in L. A and we have regional strategies, Australia U K U S and emerging market debt that we talked about so we think we're actually very well positioned.

Ali Dibadj: We have regional strategies, Australia, UK, U.S. We have emerging market debt that we talked about. So we think we're actually very well positioned for the current and, to your question, Craig, likely even more future interest in fixed income as our clients want that business. Now, beyond that from a U.S. intermediary perspective and a growth view, we do think that we have more opportunity to bring that to bear. Thank you, Ali. Just for my follow-up. How does the institutional new win and also redemption pipeline look like heading into 3Q in the second half? Are there any lumpy inflows or outflows on your radar?

Craig Seeger: For the current and to your question, Craig likely even more future interest in fixed income.

Speaker Change: As our clients want that business now.

Speaker Change: Beyond that from a U S intermediary perspective.

Speaker Change: And a growth view.

Speaker Change: We do think that we have more opportunity to bring that.

Speaker Change: Expertise that we have on our securitized side globally as well, but that's true for other areas of our business in fixed income too so we feel quite.

Ali Debatch: So we feel quite positive about the momentum there. We think the broader industry momentum will support us as well, and given the performance, given the client service that we brought to bear, as well as different vehicles, we can bring to our clients. Again, it might not be linear, but we think we have the right set of categories to deliver for our clients.

Speaker Change: Positive about the momentum there, we think the broader industry momentum.

Speaker Change: Will support us as well and given the performance given the client service that we brought to bear as well as different vehicles, we can bring to our clients.

Speaker Change: Again, it might not be linear, but we think we have the right set of categories to deliver for our clients.

Craig Segan: Thank you, Ali, just for my follow up. How does the institutional new and also redemption pipeline look heading into 3Q in the second half? Are there any lumpy inflows or outflows in your radar, and also have you been focused on adding new talent, which could attract more, more flows into the institutional channel. Thank you, Patrick. Let me give you the first part on the pipeline. It's developing. It's doing what we said we wanted it to do. We told you that we needed to rebuild it, and we told you it would take time. That's starting to come through as you've seen this quarter.

Unnamed Speaker: And also, have you been focused on adding new talent, which could attract more flows into the institutional channel too? Let me give you the first part of the pipeline. We've seen how the pipeline is developing. It's doing what we said we wanted it to do. We told you that we needed to rebuild it, and we told you it would take time. That's starting to come through, as you've seen, this quarter. Ten fundings of $100 million to $400 million. We now need to repeat and repeat over time again.

Speaker Change: Thank you Ali just for my follow up.

Ali: How does the institutional new win and also redemption pipeline look like.

Ali: Heading into <unk> in the second half are there any lumpy inflows or outflows in your radar.

Speaker Change: And also have you been focused on adding new talent.

Speaker Change: Which could attract more talent more flows into the institutional channel sale.

Speaker Change: Yes.

Speaker Change: Patrick Let me, let me give you the first part on the.

Speaker Change: The sort of pipeline that we see the pipeline is developing its doing what we said we wanted to today, we told you that we needed to rebuild it.

Patrick: Tells you it would take time.

Speaker Change: That's starting to come through as you've seen this quarter.

Ali Debatch: You know, 10 fundings of 100 to 400 million dollars. We need to, we now need to, you know, to repeat and repeat over time. Again, that's going to take time, as we've said. But we're seeing that we're seeing that the pipeline developed. But, and in the short run, there's nothing to tell you about that's massive, either on the, you know, the outside.

Speaker Change: <unk> fundings of $100 million to $400 million.

Speaker Change: Yeah.

Speaker Change: We need to we don't need to repeat and repeat over time and time again, that's going to take time as we've said.

Unnamed Speaker: That's going to take time, as we've said. We're seeing the pipeline develop. In the short run, there's nothing to tell you about that's massive, either on the inside or the outside. Ali, do you want to pick up on people?

Speaker Change: But we're saying that we're seeing that pipeline.

Speaker Change: Develop.

Speaker Change: I mean in the short run there's nothing to tell you about that's massive either only annuity outside.

Ali Debatch: Ali, do you want to pick up on people?

Speaker Change: Pick up on people.

Ali Debatch: He, on the talent side, we are always looking for talent to bring to bear to that part and any part of our business. And so we're very much on the lookout for that, both from an acquisition perspective as well as from just an organic hiring perspective.

Ali Dibadj: Yeah, on the talent side, we are always looking for talent to bring to bear on that part in any part of our business. And so we're very much on the lookout for that, both from an acquisition perspective, as well as from just an organic hiring perspective. So the short answer is yes, we're always looking for talent to bring on board, including United Business. Thank you. Our next question goes to the line of Michael Cyprys with Morgan Stanley. Your line is open. Great, thank you. Good morning.

Speaker Change: Yes on the talent side.

Speaker Change: We are always looking for talent to bring to bear to that part of any part of our business and so we're very much on the lookout for.

Speaker Change: For that both from an acquisition perspective as well as from just an organic hiring perspective, so the short answer.

Ali Debatch: So the short answer is yes, we're always looking for talent to bring on board, including in that business. Thank you.

Speaker Change: Yes, we're always looking for talent to bring on board, including that business.

Speaker Change: Thank you.

Michael Cyprys: Thank you, Craig.

Craig Seeger: Thank you Craig.

Michael Cyprys: Our next question goes to the line of Michael Cyprys with Morgan Stanley. Your line is open. Great, thank you. Good morning. Just wanted to ask another question here just on Privacore. If this is successful, looking out three to five years, what does that look like? And what might be contribution to bottom line earnings at Janus B. Oh, over time. How meaningful did that be? Thank you. Thanks, Michael.

Michael Cyprys: Just wanted to ask another question here just on Privacore. If this is successful looking out three to five years, what does that look like? And what might the contribution to bottom-line earnings at Janus be over? Thanks, Michael. So it's difficult to say what the end contribution will be and the opportunities that will accrue to Janus Henderson.

Speaker Change: Our next question goes to the line of Michael Cyprus with Morgan Stanley. Your line is now open.

Michael Cyprus: Great. Thank you good morning, I just wanted to ask another question here just on <unk>. If this is successful looking out three to five years, what does that look like and what might the contribution to bottom line earnings Janice be overtime, how meaningful could that be.

Janice: Thanks, Michael.

Ali Debatch: So it's difficult to say what the end contribution will be, and the option he said that that will accrue to Janus Henderson. We can think very broadly, obviously, about what's going on in the industry. And when we're finding over and over and over again, as I mentioned a month ago, is that there is this clear need in the market for more and more investment people in the alternatives world to reach the wealth channels.

Speaker Change: So it's difficult to say what the end contribution will be in the opportunity set that will accrue to Janus Henderson, we can think very broadly obviously about what's going on in the industry.

Ali Dibadj: We can think very broadly, obviously, about what's going on in the industry. And what we're finding over and over and over again, as I mentioned a moment ago, is that there is this clear need in the market for more and more investment people in the alternative world to reach the wealth channels. And PervaCore sits right at the nexus of that democratization, again, being an open architecture, best in class selection, and product creator for those alternatives delivering wealth. Okay, great.

Speaker Change: And what we're finding over and over and over again as I mentioned, a moment ago is that there is this clear need in the market for more and more investment people in the alternatives world to reach the wealth channels and proof of course sits right at the Nexus of that democratization again being.

Ali Debatch: And Privacore sits right at the nexus of that democratization, again, being an open architecture, best in class selection and product creator for those alternatives delivering to wealth. Right now in the wealth channel, alternatives are nominal, called less than 5% of exposure to clients, the end clients, and people target something like 15 to 20% of that exposure going to alternatives. That in itself is trillions and trillions of dollars. I heard some of our peers competitors talk about 80 trillion dollar opportunity on a global basis and several trillion dollars in the US. You know, when you get the numbers like that, it's big.

Speaker Change: On open architecture best in class selection and product creator for those alternatives delivering to wealth.

Speaker Change: Right now in the wealth channel alternatives are.

Speaker Change: Nominal call it less than 5% of exposure to two clients in the end clients and people target something like 15% to 20% of that exposure going to alternatives.

Speaker Change: In and of itself is trillions and trillions of dollars Ive heard some of our our peers competitors talk about 80 trillion dollar opportunity on a global basis and several trillion dollars in the U S.

Speaker Change: When you get to numbers like that its big right now we would love to be a part of that we think <unk> is clearly.

Ali Debatch: Right. We would love to be a part of that.

Ali Debatch: We think Privacore is clearly putting our bets for four in terms of becoming a real part of that and not just a part of it, but driving success in that industry, in that industry change. So it could be big. We'd like it to be big where it continues to support Privacore to be big, and the proof points so far, as Roger went through a moment ago, seemed like we're on the right track with Privacore. So difficult to put some numbers around it, given you're talking about such big terms, but we're certainly in the mix and want to continue to do so with Privacore.

Speaker Change: Putting our best foot forward in terms of becoming a real part of that and not just a part of it but driving success in that industry and that industry change.

Speaker Change: It could be big we'd like it to be bigger it could senior support protocol to be big and the proof points. So far as Roger went through a moment ago.

Speaker Change: Seem like we're on the right track with protocol, so difficult to put some numbers around it given you're talking about such a big Tam.

Roger Thompson: But we're certainly in the mix and we want to continue to do so with protocol.

Ali Debatch: Okay, great.

Unnamed Speaker: And then just a follow-up question around capital allocation and the balance sheet. Clearly, a strong balance sheet and a net cash position present a lot of optionality for you. I guess, how do you think, over time, how to optimize the usage of the balance sheet? Is there a particular leverage target or thinking about that over time as you look to sort of optimize and operate that in the most efficient way possible for the firm? And then more broadly, how should we be thinking about the pace of that? I'll buy back some of that next remainder of the year into next year as well.

Michael Cyprys: And then just a follow-up question around capital allocation and balance sheet, clearly strong balance sheet net cash position presents a lot of optionality for you.

Speaker Change: Okay, Great and then just a follow up question around capital allocation and balance sheet.

Speaker Change: Clearly strong balance sheet net cash position presents a lot of Optionality for you I guess, how do you think over time, how to optimize the usage of the balance sheet is the particular <unk>.

Ali Debatch: I guess how do you think over time how to optimize the usage of the balance sheet is the particular leverage target or thinking about that over time as you look to sort of optimize and operate that in the most efficient way possible for the firm. And then, more broadly, how should we be thinking about the pace and buybacks of the next remainder of the year into next year as well.

Speaker Change: Average target or thinking about that over time as you look to sort of optimize and operate that in a most efficient way possible for the firm and then more broadly how should we be thinking about the pace of buybacks over that next.

Speaker Change: Under the year into next year as well thank you.

Roger Thompson: Thanks, Mike. I think our capital profile allows us to invest in the business; that's the most important thing, both organically and inorganically, as well as return capital shells, and we showed that in the first half of 24. Our dividend is at the upper end of peer yield, and the buyback is something that has been pretty consistent. We're brought back over 20% of shares over the last few years, so we've shown that that is something that we're committed to. The buyback has got about another $150 million to go. As we currently stand, we'd expect to complete that.

Speaker Change: Thanks Buck this is Richard.

Richard: Our capital profile allows us to invest in the business. That's the most important thing both organically and Inorganically.

Speaker Change: As well as return capital to shareholders and we showed that in the first half of 'twenty four our dividend is.

Speaker Change: Is at the upper end of.

Speaker Change: Pay yield.

Speaker Change: And.

Speaker Change: The buyback is something that has been pretty consistent.

Speaker Change: We.

Speaker Change: We bought back over 20% of shares.

Speaker Change: Over the last few years. So we've shown that that is something that we're committed to.

Speaker Change: The buyback is has got about another $150 million to go.

Speaker Change: We currently stand we would expect to complete that.

Roger Thompson: So our capital philosophy is unchanged; we will maintain capital for regulatory needs, we will invest in the business, whether that be through seed capital, through organic growth, or in organic things, and then we will return capital to shareholders on top of that. So nothing has changed there, and you would expect us to complete the buyback.

Speaker Change: And then so our capital philosophy is unchanged, we will we will maintain capital for regulatory needs, we will invest in the business.

Speaker Change: Whether that be through seed capital through organic organic growth or inorganic things and then and then we will return capital to shareholders.

Speaker Change: On top of that so nothing has changed there and you would expect us to complete the buyback.

Speaker Change: Okay.

Michael Cyprys: Great, thank you.

Speaker Change: Great. Thank you.

Michael Cyprys: Thank you, Michael.

Michael Cyprus: Thank you Michael.

John Dunn: Our next question goes to the line of John Dunne with Evercore. Your line is a weapon. Thank you. I wanted to check in on the balance fund. It's not been two quarters' improved performance. In the past, how long has it taken to improve performance to choke and slow in slow in that fund?

John Dunn: Thank you. Our next question goes to John Dunn with Evercore. Your line is open.

Speaker Change: Our next question comes from the line of John Dunn with Evercore. Your line is now open.

John Dunn: Thank you. I wanted to check in on the balance fund. It's now been two quarters of improved performance. In the past, how long has it taken for improved performance to show up in inflows into that fund?

John Dunn: Thank you I wanted to check in on the balanced fund.

John Dunn: Two quarters of improved performance in the past how long.

Speaker Change: Has it taken.

Speaker Change: Improved performance to choke flow inflows in that fund.

Ali Debatch: Thanks, John. Thanks for noticing that the balance fund is really one of our strongest and install work funds that we have at the firm. It's run by great investment managers, and it really is a testament to our broad skill set, because we're extraordinarily strong in the equity side, as you know. Into what I was saying before a moment ago, kind of an unfounded jewel of ours is a six income business given the performance. And you put that together in a balance fund, something that we've been doing for decades and decades. That's a testament to a driver to the success that we've had there.

Ali Dibadj: The balance fund is really one of our strongest and stalwart funds that we have at the firm. It's run by great investment managers, and it really is a testament to our broad skill set because we're extraordinarily strong on the equity side, as you know, and to what I was saying before a moment ago, kind of an unfounded jewel of ours is the fixed income business, given its performance. And you put that together in a balance fund, something that we've been doing for decades and decades.

Sean: Thanks, Sean.

Speaker Change: Thanks for noticing that the.

Speaker Change: The balance fund is really one of our strongest and install work funds that we have at the firm.

Sean: It's run by Great investment managers and it really is a testament to our broad skill set because we're extraordinarily strong in the equity side as you know until what I was saying that for a moment ago kind of a unfounded jewel of ours in the fixed income business given the performance and you put that together in a balanced on something that we've been doing.

Sean: Decades and decades.

Ali Dibadj: That's a testament to and a driver of the success that we've had there in this marketplace where people are interested in looking at the equity markets but want to still have a balance of something that's more, more, more, more, more, I guess, stable from a fixed income perspective, and fixed income is delivering a return given the cost of capital and the yield is where it is.

Sean: That's a testament to train a driver to the success that we've had there but in this marketplace.

Ali Debatch: But in this marketplace, where people are interested in looking at the equity markets, but want to still have a ballast of something that's more, more, more, I guess, stable from a fixed income perspective and fixed income is delivering a return given the capital and the yield is where it is. Balance seems to be kind, quite interesting for our client base. Now you couple that interest with exactly as he mentioned. Sorry to say this, ridiculously strong performance over a number of years from both fixed income and equity team. We were seeing a lot of interest in the balance fund for us.

Sean: Where people are interested in looking at the equity markets, but want to still have a ballast of something that's more.

Sean: More and more and more stable from a fixed income perspective, and fixed income is delivering a return given the cost of capital and the yield is where it is a balanced seems to becoming quite interesting for our client base. Now you couple that interests with is exactly as you mentioned.

Ali Dibadj: A balance seems to be coming quite interesting for our client base. Now, you couple that interest with exactly as you mentioned, I'm sorry to say this, ridiculously strong performance over a number of years from both fixed income and equities teams. We were seeing a lot of interest in the balance fund for us.

Speaker Change: I'm sorry to say this ridiculously strong performance over a number of years from both fixed income and equities team.

Speaker Change: We're seeing a lot of interest in the balanced fund.

Ali Dibadj: We are, we believe, subscale in that business, and we believe we deliver extraordinarily good client value by being in that fund. So you're right, we're seeing improvements. But I don't know if I have a great kind of exact number about the timing.

Roger Thompson: We are, we believe, sub scale in that business, and we believe we deliver extraordinarily good client value by being in that fund. So you're right; we're seeing improvements. I don't know if I have a great kind of exact number about the timing. It's not overnight, but over time performance like we've delivered consistently over a very long period of time, accessibility of the portfolio managers, broader client service does deliver improved flow performance for balance.

Speaker Change: For US we are we believe sub scale in that business and we believe we believe we deliver extraordinary good client value by being in that fund. So youre right were seeing improvements.

Speaker Change: I don't know if I have a great kind of exact number about the timing, it's not overnight, but over time performance like we've deliver consistently over a very long period of time.

Unnamed Speaker: It's not overnight, but over time, performance like we've delivered consistently over a very long period of time, accessibility of the portfolio managers, and a broader client service does deliver improved flow performance for balance. And just while Ali's been talking, I've been desperately trying to look back at previous quarters. And, you know, we've seen the outflow is improving. Sorry, yeah, the outflow is improving. It's getting smaller. It's got smaller this quarter over last quarter, but that's better than it was.

Speaker Change: Accessibility of the portfolio managers are broader client service does deliver improved flow performance for Malibu.

Roger Thompson: And just while Ali's been talking, I've been trying to look back at previous courses. And we've seen the, yeah, the outflow is improving; it's getting smaller. It's got smaller this quarter over last quarter; that's better than it was, and last quarter was better than the quarter before. So, yeah, it's an improving trend. We all know there's a bit of a lag between performance and flow. It isn't, I guess, a formula, but we've seen the improvement, and we're also seeing new clients investing in the strategy, which is great to see. Got it.

Ali: And just while Ali.

Speaker Change: Okay.

Speaker Change: If I look back at previous quarters.

Speaker Change: We've seen.

Speaker Change: The outflow is sorry, yeah. The outflow is improving it's getting smaller and smaller this quarter over last quarter, that's better than it was last quarter was better than the quarter. Before we've also got we are also seeing some new interest.

Unnamed Speaker: And last quarter was better than the quarter before. We've also got, you know, we're also seeing some new interest. You know, we've got great new clients in Japan that have just started, just launched. We've already raised a couple of hundred million dollars in Japan in a month or so. So, yeah, it's an improving trend. We all know there's a bit of a lag between performance and flow. It isn't, I guess, a formula, but we're seeing improvement, and we're also seeing new clients investing in the strategy, which is great to see.

Speaker Change: We've got a great new clients in Japan.

Speaker Change: Just started.

Speaker Change: <unk> launched that and we've already raised a couple of hundred million dollars in Japan in a month or so so it's an improving trend.

Speaker Change: A bit of a lag between performance and flow it isn't I guess, it's a formula but we're seeing the improvement and we're also seeing new clients investing in the strategy, which is great to see.

Unnamed Speaker: And then, could you give us a little more color on what specific products are driving the improvement in the LASAM intermediary? Yeah, that's sure. Let me start. Yeah, go on, Ali.

Ali Debatch: And then could you give us a little more color on what specific products are driving the improvement in the end last time intermediary? Yeah, that's sure.

Speaker Change: Got it and then could you give us a little more color on what specific products or.

Speaker Change: Driving the improvement in EMEA and Latam.

Speaker Change: Intermediary.

Speaker Change: Yes sure.

Ali Debatch: Let me start. The expansion of some experience that we have an investment intermediary flowing into, Emia and LaPam. We're taking the learnings, whether it be about making sure we have the right product set, make sure we have the right people, incentivizing people for growth, ensuring that we are promoting and marketing the products quite strongly. We have a story to tell. It's very clear both on the investment side and the firm side. And then really importantly, ensuring we have productivity at the right level. That's not just the number of meetings; that's the right number of meetings and really using data behind that.

Speaker Change: Yes.

Ali Dibadj: Let me start and I'll hand it over to Roger to go through it. You know, we are clearly seeing the expansion of some experience that we have in the U.S. intermediary flowing into EMEA and LATAM. We're taking the learnings, whether it be about making sure we have the right product set, making sure we have the right people, incentivizing people for growth, ensuring that we are promoting and marketing the products quite strongly. We have a story to tell, that's very clear, both on the investment side and the firm side.

Speaker Change: Let me start and I'll hand over to Roger to go through it.

Roger Thompson: We are clearly seeing.

Roger Thompson: The expansion of some experience that we have in U S intermediary flowing into EMEA and Latam.

Roger Thompson: We're taking the learnings whether it be about making sure we have the right product set to make sure we have the right people incentivizing people for growth.

Roger Thompson: Ensuring that we are promoting and marketing the products quite strongly we have a story to tell that's very clear both on the investment side on the Perm side, and then really importantly, ensuring we have productivity at the right level. That's not just the number of meeting that's the right number of meetings and really using data behind that so we're using a lot of those same concepts.

Ali Dibadj: And then, really importantly, ensuring we have productivity at the right level. That's not just the number of meetings; that's the right number of meetings and really using data behind that. So we're using a lot of those same concepts that we used in the U.S. channels to bring them over to EMEA and LATAM. Remember, we talked about that, and it seems like it's working out.

Ali Debatch: So we're using a lot of those same concepts that we used in the US channels to bring it over to Emia and LaPam. Remember, we talked about that, and it seems like it's playing out. Now, in Emia, we talked about the UK being a place we continue to have to work on as opposed to continental, where things are looking significantly better, and we hope that that continues to deliver as well. Expanding beyond that, Middle East looks like there's some real progress going on there in the Latin America, particularly with some our investments in Mexico. From a regional perspective, things look strong.

Speaker Change: That we used in the U S channels to bring it over to EMEA and.

Roger Thompson: And in Latam.

Roger Thompson: Remember, we talked about that and it seems like it's playing out now in EMEA.

Ali Dibadj: Now, in EMEA, we've talked about the UK being a place we continue to have to work on, as opposed to continental, where things are looking significantly better, and we hope that that continues to deliver as well. Expanding beyond that, the Middle East looks like there's some real progress going on there. And then Latin America, particularly with some of our investments in Mexico, from a regional perspective, things look strong.

Speaker Change: We've talked about the UK being in place we continue to have to work on as opposed to continental where things are looking significantly better and we hope that that continues to deliver as well.

Roger Thompson: Expanding beyond that middle East it looks like there is some real progress going on there and then Latin America, particularly with some of our investments in Mexico from a regional perspective things look strong, but broadly speaking and I'll hand, it over to Roger.

Roger Thompson: Broadly speaking, and I'll hand it over to Roger, it's the strength of things like balance from your question earlier, but also our European equities platform has been extraordinarily strong. Our fixed income platform looks quite good. And all this, even before we bring tabula squarely online to grow that business. Roger, you can give more comments.

Roger Thompson: Broadly speaking, I'll hand it over to Roger. It's been strength of things like balance from your question earlier, but also our European equities platform has been extraordinarily strong. Our 16 come platform looks quite good, and all this even before we bring fabulous squarely online to grow that business. Roger, you can get more comments. Now, I think you've got most of it, and it's great to see European equity, which has been, which is the area where we have fantastic teams and fantastic performance, being in inflow. We're taking market share there. So it's really great to see flow into European equity in a number of different strategies, both large cap and small cap, but also thematics, global technology, for example, and some sustainable equity products.

Roger Thompson: It's been strength of things like balance from the from your question earlier, but also our European equities platform has been extremely strong.

Roger Thompson: Fixed income platform looks quite good and all of this even before we bring tabular squarely online to grow that business. Roger you can give some more comments.

Roger Thompson: No I think you've got most of it I mean, it's great to see European equity, which has been which is the area, where we have fantastic teams and fantastic performance.

Roger Thompson: Being an inflow, we're taking market share there.

Roger Thompson: So it's really it's really great to see flow into European equity in a number of different and a number of different strategies.

Roger Thompson: Cap and small cap, but also some ethics.

Roger Thompson: Technology for example, and.

Speaker Change: Some sustainable equity products so.

Roger Thompson: So it's pretty broad brush, but like I say, particularly pleasing to see European equity seeing such from those also absolute return seeing flows as well for the first time in a while.

Speaker Change: It's pretty broad brush, but like I say, particularly pleasing to see European equity seeing such strength is also absolute return seeing flows as well for the first time in a while placing them.

Roger Thompson: Thanks very much.

Speaker Change: Thanks very much.

Speaker Change: Yes.

Roger Thompson: Thank you, John.

Roger Thompson: Thanks very much. Thank you, John. Our last question will go to Adam Beatty with UBS. Your line is now open. Thank you and good morning.

John Dunn: Thank you John.

Adam Beatty: Our last question will go to the line of Adam Beatty with UBS. Your line is open. Thank you, good morning. First, just a quick follow-up on the institutional channel. It looks like the redemptions have pretty much stabilized there, and the swing on the redemptions side. Do you feel there's still some opportunity there, or are we kind of at a run rate level given the improved performance and what have you?

Speaker Change: Our last question will go to the line of Adam Beatty with UBS. Your line is now open.

Adam Beatty: First, just a quick follow-up on the institutional channel. It looks like the redemptions have pretty much stabilized there, and the swing factor is really improving gross sales, which you mentioned some progress on. So just wondering on the redemption side, do you feel there's still some opportunity there? Or are we kind of at, you know, a run rate level given the improved performance and what have you? Appreciate that, Ali.

Adam Beatty: Alright, Thank you and good morning, first just a quick follow up on the institutional channel. It looks like the redemptions have pretty much stabilized there and the swing factor is really improving gross sales, which you mentioned some progress on so just wondering on the redemption side do you feel theres still some opportunity there or are we kind of about.

Speaker Change: I had a run rate level, given the improved performance and what have you. Thank you.

Adam Beatty: Thank you.

Ali Debatch: Hey Adam, thanks for the question. Okay, it is very tough to tell. A lot of what happens in the institutional world is reallocations among asset classes, and you kind of get the downstream effects of that. What I will say is that the investment performance is obviously something institutional investors look to first and foremost when they look at reallocating. Our investment performance, as you know, is consistently quite strong. So we don't really know it's going to happen. We don't see anything on the horizon at this point, but our investment performance certainly is a protection to that.

John Dunn: Hey, Adam Thanks for the question. Okay. It is very tough to tell.

Speaker Change: A lot of what happens is twofold world as Reallocations among asset classes and you kind of get the downstream effects of that what I will say is that the investment performance is obviously something institutional investors look to first and foremost when they look at reallocating our investment performance.

Ali Dibadj: As you know is consistently quite strong so.

Speaker Change: We don't really know what's going to happen, we don't see anything on the horizon at this point, but our investment performance certainly as a as a protection to that.

Ali Debatch: Appreciate that, Ali. Thank you.

Ali Dibadj: And then finally, a lot of your peers talk about solutions and managed accounts as kind of a way of bringing the range of products, you know, toward the end client. So just wanted to get your thoughts on where Janus stands there, where it ranks in your priority stack, and what the next steps might be. Thanks a lot.

Speaker Change: I appreciate that thank you and then finally just on one of your peers talk about.

Ali Debatch: And then finally, just on, a lot of your peers talk about solutions and managed accounts as kind of a way of bringing the range of products, you know, toward the end client. So just wanted to get your thoughts on where Janus stands there, where it ranks in your priority stack, and what the next steps might be. Thanks a lot. Yeah, thanks. Thanks very much. I think on the industry is certainly looking more and more at outcome orientation as opposed to specific strategies. There's still a real place for those six strategies, and we have a lot of those, but we are actually facing off to our clients as providing solutions to their problems. That's about our client service lens that we bring to bear.

Speaker Change: Solutions and managed accounts, so it's kind of a way of bringing the range of products toward the end client. So just wanted to get your thoughts on where Janus stands there where it ranks in your priority stack and what the next steps might be thanks a lot.

Ali Dibadj: I think the industry is certainly looking more and more at outcome orientation, as opposed to specific strategies. But there's still a real place for those six strategies, and we have a lot of those. But we're actually facing off to our clients as providing solutions to their problems. That's about our client service lens that we bring to bear, bringing the whole firm to deliver on a client's needs. Within that, solutions and managed solutions are certainly something that we're seeing more interest in, and it is a very high priority for us. In fact, it's a part of our strategy.

John Dunn: Sure.

Speaker Change: Yeah. Thanks, Thanks very much.

Speaker Change: I think the industry is certainly looking more and more at outcome orientation as opposed to specific strategies Theres still a real place for those six strategies and we have a lot of those but we are actually facing off to our clients as providing solutions to their problems. That's about our client service lens that we bring to bear on bringing the whole.

Ali Debatch: I'm bringing the whole firm to deliver on a client's needs. Within that, solutions and managed solutions is certainly something that we're seeing more interesting, and it is a very high priority for us. In fact, it's a part of our strategy if it's one of the amplify buckets of our strategy, and we've pulled together a team that does solutions for us. Interestingly, we had pockets of it across the firm, and we brought that together under a great leader and a great team to drive the solutions business for us. We are still to be fair nascent. We could certainly go bigger in that area.

John Dunn: Firm to deliver on our clients' needs.

Ali Dibadj: It fits under the Amplify bucket of our strategy, and we've pulled together a team that does solutions for us. Interestingly, we had pockets of it across the firm, and we brought that together under a great leader and a great team to drive the solutions business for us. We are still, to be fair, nascent; we could certainly go bigger in that area.

John Dunn: Within that solutions and managed solutions is certainly something that we're seeing more interest in and it is a very high priority for us in fact, it's a part of our strategy. It fits under the amplify bucket of our strategy and we've pulled together a team that does solutions for US Interestingly, we had pockets of it across the firm and we.

John Dunn: Brought that together under a great leader and a great team to drive the solutions business for US we are still to be fair nascent we could certainly go.

John Dunn: Bigger in that area.

Ali Debatch: It's something that we plan to invest in organically and hopefully inorganically as well to grow that and deliver our client needs. Very much to your point, Adam. It is what clients are looking for, and we are very focused, obviously, as you know, on being client led. Solutions is something that we believe we can bring to bear. We have a broad base of skill sets to funnel into those solutions, and so we are very attractive for our clients. We just have to build that kind of nexus of solution to be able to the skill sets and quantity of skill sets to be able to deliver that for our clients.

Ali Dibadj: It's something that we plan to invest in organically and, hopefully, inorganically as well to grow that and deliver on our client needs. Very much to your point, Adam, this is what clients are looking for, and we are very focused, obviously, as you know, on being client-led. Solutions is something that we believe we can bring to bear. We have a broad base of skillsets to funnel into those solutions, and so we are very attractive to our clients.

John Dunn: That we plan to invest in organically and hopefully inorganically as well to grow them to deliver on our client needs very much to your point on them. It is what clients are looking for and we are.

John Dunn: Very focused obviously as you know on being client led solutions is something that we believe we can bring to bear we have a broad based of skill sets to funnel into those solutions.

John Dunn: So we are very attractive for our clients. We just have to build that kind of nexus of solution.

Ali Dibadj: We just have to build that kind of nexus of solutions to be able to, the skillsets and quantitative skillsets to be able to deliver that for our clients. So yes, it is something we're very, very keen on. Sounds good. It makes sense. Thank you very much. Okay, thanks, Megan. I want to thank, most importantly, each and every employee at Janus Henderson, whether they are investments or client service or IT operations and legal and compliance and risk and finance, human capital, all of our teammates at Janus Henderson, without whom we certainly could not have delivered these results and could not have continued to be on the right trajectory here.

John Dunn: To be able to to the skill sets and quantity of skill sets to be able to deliver that for our clients. So yes. It is something we're very very keenly looking at.

Ali Debatch: So yes, it is something we're very, very keenly looking at.

Ali Debatch: Sounds good. Makes sense. Thank you very much.

Speaker Change: It sounds good it makes sense. Thank you very much.

Ali Debatch: Thank you, Adam.

John Dunn: Thank you Adam there are no other questions registered so I'll pass the conference back over to Ali for closing remarks.

Ali Debatch: There are no other questions registered, so I'll pass the conference back over to Ali for closing remarks. Okay, thanks, Megan.

Ali: Okay. Thanks Megan.

Ali Debatch: I want to thank, most importantly, each and every employee at Janus Henderson, whether they are investments or client service or an IT operation, the legal and compliance and risk and finance, community capital, all of our teammates at Janus Henderson, without whom we certainly could not have delivered these results and could not have continued to be on the right trajectory here. The hard work that everybody is delivering and living our values and executing our strategy. We hope continues to deliver for our clients and their clients, our shareholders, our employees, and all other stakeholders.

Speaker Change: I think most importantly, each and every employee at Janus Henderson.

Ali: Whether they are investments or client service or or 19 operations in legal and compliance and risk and finance team to capital all of our teammates of Janus Henderson without whom we certainly could not have delivered these results and could not have continued.

Speaker Change: Continue to be on the right trajectory here.

Ali Dibadj: The hard work that everybody is delivering and living our values and executing our strategy will, we hope, continue to deliver for our clients and their clients, our shareholders, our employees, and all other stakeholders. So thanks for listening to this call, and bye for now.

Speaker Change: Work that everybody is delivering and living our values and executing our strategy.

Speaker Change: We hope continues to deliver for our clients and their clients.

John Dunn: Our shareholders our employees and all other stakeholders. So thanks for listening to this call and bye for now.

Megan: So thanks for listening to this call, and bye for now.

Operator: That concludes today's conference call. Thank you for your participation. I hope you have a wonderful rest of your day.

Speaker Change: That concludes today's conference call. Thank you for your participation I Hope you have a wonderful rest of your day.

Speaker Change: [music].

Speaker Change: Yes.

Ali Dibadj: Yes.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: [music].