Q2 2025 Janus Henderson Group PLC Earnings Call

July 31, 2025

After the Speakers' remarks, there'll be a question and answer period and the interest of time questions will be limited to one initial and one follow up question and today's conference call certain matters discussed may constitute forward looking statements actual results could differ materially from those projected in the forward looking statements due to a number of factors, including but.

Not limited to those described in the forward looking statements and risk factors sections of the company's most recent Form 10-K and other more recent filings made with the SEC.

Henderson assumes no obligation to update any forward looking statements made during the call. Thank you now it is my pleasure to introduce Alistair Budge, Chief Executive Officer, Jonathan Henderson. Mr. <unk>, you may begin your conference.

Welcome everyone and thank you for joining us today on Janus Henderson second quarter 2025 earnings call.

Ali the batteries I am joined by our CFO Roger Thompson.

In today's call I'll start with some thoughts on the quarter before handing it over to Roger to run through the quarterly results in more detail. After Roger's comments I'll provide an update on our strategic progress and how our client approach has evolved leading to deeper collaborative relationships, which has become the foundation of our new brand efforts will then take your questions. Following our prepared remarks.

Turning to slide two.

Despite its mattress few months, an incredible market volatility we saw through much of April business trends appear to have stabilized for now and strong alpha generation provided by a world class investment teams. The exceptional service provided by our client teams the productivity and execution of our operations technology and support teams enabled Janus Henderson to deliver a good set of.

Quarterly results.

And investment performance there was meaningful improvement in the one year number and investment performance has consistently solid with at least two thirds of assets, beating respective benchmarks on a 135 and 10 year basis against peers and investment performance is even stronger with over 70% of AUM in the top two Morningstar quartile.

Across all time periods at.

At the end of June we completed the previously announced transaction with Guardian.

We are extremely excited for this multifaceted strategic partnership.

This significant milestone further expands our insurance presence in institutional reach and we are pleased to bring to bear our strengths in fixed income multi asset solutions and model portfolios to achieve mutually beneficial outcomes for clients policyholders and shareholders alike.

Henderson is now managing $46 $5 billion of largely but not exclusively investment grade public fixed income assets for Guardians General account, which is even more than the previously communicated 45 billion Devon.

Demonstrated guardians growth trajectory and the potential of our partnership.

This expands Janus Henderson fixed income AUM to $142 billion, which is now over 30% of company wide AUM.

In addition, guardian is committing up to $400 million of seed capital to help accelerate our continued innovation in securitized credit and high quality active fixed income products, including Etfs.

Pleasingly <unk>.

A portion of the seed commitment has recently been utilized demonstrating quick progress from our partnership.

Guardian has provided a $100 million of seed to our asset backed securities ETF J ABS are jobs, which was launched last week.

Jobs is intended to provide investors access to short duration high quality predominantly fixed rate securitized assets and complements Janus Henderson industry, leading CLO ETF, J, AAA, which is predominantly floating rate <unk>.

<unk> expands Janus Henderson is offering to meet client demand, including and especially insurance companies.

Switching to AUM or the addition of the Guardian, coupled with market gains and favorable currency adjustments due to weakening U S. Dollar enabled assets under management increased 23% to 457 $3 billion, which is our highest quarterly AUM ever.

Turning to flows.

The second quarter marked our fifth consecutive quarter of positive net flows.

Guardian contributed to our strong quarterly net flow results were pleased that net flows excluding the Guardian General account were also positive even the difficult flow environment created by a drawdown.

Positive net flow results demonstrate our truly global distribution footprint and the broad range of strategies and vehicles, we offer said another way.

All our businesses may not fire on all cylinders at the same time, however, our strategically developed broad breadth of businesses are capable of delivering more and more consistent growth for us over time and this quarter was an instance of that.

I wanted to quickly highlight a few examples of our diversified breadth of flows in the second quarter. There were 15 strategies, including for Etfs that each had at least $100 million of net inflows.

The fully token is Janus Henderson and in my Treasury fund had over $400 million of net inflows.

Net flows into our CIP and hedge fund strategies were positive and finally <unk> has advised on several hundred million dollars raised for co. Two seatac funds in the wealth channel, which you might have read about in the media.

Additionally, our institutional channel performed very well offsetting retail net outflows, which were impacted by market volatility, especially during a few weeks in April.

As we stated previously delivering positive active flows is a key differentiator for Janus Henderson in an industry with well documented active flow headwinds, including during the second quarter for many of our peers.

Moving to our financial results, which remains solid.

Adjusted diluted EPS of <unk> 90 is a 6% increase compared to the same period, a year ago, our financial performance and strong balance sheet continues to provide us the flexibility to invest in the business, both organically and Inorganically and return cash to shareholders.

In summary, our investment performance is solid our net flows are positive we continue to execute our strategy, including the Guardian partnership financial results are good we continue to be disciplined and ROI focus on expenses.

Strong and stable balance sheet, and our truly global footprint and expanding breadth of product positions us well for the future.

Ali Dibadj: Where the addition of the guardian AUM, coupled with market gains and favorable currency adjustments due to weakening the US dollar, enabled assets under management to increase 23% to $457.3 billion, which is our highest quarterly AUM ever. Turning to flows, the second quarter marked our fifth consecutive quarter of positive net flows. While Guardian contributed to our strong quarterly net flow results, we're pleased that net flows excluding the Guardian general account were also positive, even in the difficult flow environment created by April's drawdown. The positive net flow results demonstrate our truly global distribution footprint and the broad range of strategies and vehicles we offer. Said another way, all our businesses may not fire on all cylinders at the same time.

It gains and favorable currency adjustments due to weakening U S. Dollar enabled assets under management increased 23% to $457 $3 billion, which is our highest quarterly AUM ever.

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

Thanks, Kelly and thank you for joining us on today's call.

On slides three and investment performance.

Turning to flows.

The second quarter marked our fifth consecutive quarter of positive net flows.

We mentioned, we saw significant improvements in our short term investment performance versus benchmark during the quarter and now have at least two thirds of our U M, reaching their respective benchmarks over the 135 and 10 year time periods.

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

Positive net flow results demonstrate our truly global distribution footprint and the broad range of strategies and vehicles, we offer set another way.

Overall investment performance compared to peers continues to be competitively strong with at least 72% of AUM in the top two morningstar quartile over all time periods presented.

Ali Dibadj: However, our strategically developed broad breadth of businesses are capable of delivering more and more consistent growth for us over time, and this quarter was an instance of that. I want to quickly highlight a few examples of our diversified breadth of flows in the second quarter. There were 15 strategies, including four ETFs that each had at least $100 million of net inflows. The fully tokenized JANUS HENDERSON NMY Treasury Fund had over $400 million of net inflows. Net flows into our CIT and hedge fund strategies were positive. And finally, Privacor has advised on several hundred million dollars raised for Co2 CTEC funds in the wealth channel, which you might have read about in the media. Additionally, our institutional channel performed very well, offsetting retail net outflows, which were impacted by market volatility, especially during a few weeks in April.

Slide four shows total company flows by quarter.

Net inflows for the quarter were $46 $7 billion, which includes a $46 $5 billion from Guardians General accounts.

Well the Guardian mandate will quite rightly take the headlines we're pleased with positive net flows ex guardians during that accounts for a quarter of extreme market volatility.

The fully token is Janus Henderson and in my Treasury fund had over $400 million of net inflows.

Net flows into our city and hedge fund strategies were positive and finally <unk> has advised on several hundred million dollars raised for <unk> in the wealth channel, which you might have read about in the media.

So truly global footprint and the breadth of product solutions, we bring to clients.

Excluding the Golden General account, our gross sales increased for the third consecutive quarter.

Additionally, our institutional channel performed very well offsetting retail net outflows, which were impacted by market volatility, especially during a few weeks in April.

Improved by 40% compared to the second quarter of last year.

All three channels, so an increase in gross sales compared to the prior year across a broad range of capabilities, including Etfs U S concentrated growth auto code on his Treasury Fund U S mid cap growth U S by maintained credits.

Ali Dibadj: As we stated previously, delivering positive active flows is a key differentiator for JANUS HENDERSON in an industry with well-documented active flow headwinds, including during the second quarter for many of our peers. Moving to our financial results, which remain solid, adjusted diluted EPS of $0.90 is a 6% 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. In summary, our investment performance is solid. Our net flows are positive. We continue to execute our strategy, including the Guardian partnership. Financial results are good. We continue to be disciplined and ROI-focused on expenses. We have a strong and stable balance sheet and our truly global footprint and expanding breadth of product positions as well for the future.

I sit back opportunistic credit from BPC.

Moving to our financial results, which remains solid.

Turning to slide five on flows by client type.

As a reminder, beginning with the first quarter of 2025 ETF gross flow activity is reflected in the applicable client types that generally to the activity access to improved data transparency enabled us to make this change for periods prior to towards 25 older tier flow activity as shown in the intermediary channel.

Intermediary channel net flows were negative $1 2 billion, reflecting the challenging flow environment joined me a pud drawdown.

In the second quarter net flows were positive in the U S with net outflows in EMEA, Latam and Asia Pacific.

<unk> and stable balance sheet, and our truly global footprint and expanding breadth of product positions us well for the future.

In the U S. The net flows were positive for the eighth consecutive quarter.

Ali Dibadj: I'll now turn the call over to Roger to run you through the detail of the financial results.

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

Despite a challenging April for our active Etfs once the extreme market dislocation abated market stabilized J AAA quickly return to net inflows, resulting in positive net flows for active etfs in the quarter.

Thanks, Kelly and thank you for joining us on today's call.

Roger Thompson: Thanks, Ali, and thank you for joining us on today's call. Starting on slide three on investment performance, as Ali mentioned, we saw a significant improvement in our short-term investment performance versus benchmark during the quarter and now have at least two-thirds of AUM beating their respective benchmarks over the one, three, five, and 10-year time periods. Looking in further detail, at least half of each of the capabilities AUM is ahead of benchmarks over all time periods, reflecting consistent investment performance across time periods and capabilities. Overall investment performance compared to peers continues to be competitively strong, with at least 72% of AUM in the top two Morningstar quartiles over all time periods presented. Slide four shows total company flows by quarter. Net inflows for the quarter were $46.7 billion, which includes the $46.5 billion from Guardian's general account.

On slide three on investment performance.

All he mentioned we saw significant improvements in our short term investment performance versus benchmark during the quarter amount of at least two thirds of our AUM, beating their respective benchmarks over the 135 and 10 year time periods.

In addition to our active Etfs other areas contributing net flows in the second quarter included U S. Mid cap growth international allow for equity a biotech hedge fund and the political revised assets rice for co two.

U S. Intermediary is a key initiative under our protect and grow strategic pillar and we're pleased that we continued to gain market share against the volatile market backdrop.

Overall investment performance compared to peers continues to be competitively strong with at least 72% of our AUM in the top two morningstar quartile over all time periods presented.

Under our amplify strategic pillar, we've talked about amplifying our investments in client service strengths using various means including vehicles through which we deliver our products. In addition to active Etfs flows into cities Sma's and hedge funds in this channel were positive in the second quarter.

Slide four shows total company flows by quarter.

Net inflows for the quarter were $46 $7 billion, which includes a $46 $5 billion from Guardians General accounts.

Roger Thompson: While the Guardian mandate will quite rightly take the headlines, we're pleased with positive net flows ex-Guardian's general account from a quarter of extreme market volatility, and it highlights our truly global footprint and the breadth of product solutions we bring to clients. Excluding the Guardian general account, our gross sales increased for the third consecutive quarter and improved by 40% compared to the second quarter of last year. All three channels saw an increase in gross sales compared to the prior year across a broad range of capabilities, including ETFs, US concentrated growth, our tokenized treasury fund, US mid-cap growth, US buy and maintain credit, and asset-backed opportunistic credit from VPC. Turning to slide five and flows by client type. As a reminder, beginning with the first quarter of 2025, ETF gross flow activity is reflected in the applicable client type that generated the activity.

In EMEA Continental Europe delivered net inflows, while the U K had net outflows, primarily driven by investment trusts and the global strategic total bond strategy.

Well the Guardian mandate will quite rightly take the headlines we're pleased with positive net flows ex guardians during that accounts for a quarter of extreme market volatility and it highlights a truly global footprint and the breadth of product solutions, we bring to clients.

Institutional net inflows of 49 billion compared to net inflows of $800 million in the prior quarter, marking the third consecutive quarter of positive flows.

Excluding the garden General account, our gross sales increased for the third consecutive quarter and improved by 40% compared to the second quarter of last year.

During the quarter, we were pleased to see a broad distribution footprint demonstrated as our institutional channel performed well, while retail was that mostly impacted by the market uncertainty and the early parts of the quarter.

All three channels saw an increase in gross sales compared to the prior year across a broad range of capabilities, including Etfs U S concentrated growth.

Excluding the Guardian General account institutional gross sales were the best result in over two years and reflects fundings in fixed income and equities across corporate pensions and insurance clients.

So could always Treasury fund U S mid cap growth U S by maintain credit.

Opportunistic credit from V P C.

Turning to slide five on flows by client type.

We're continuing to work to create a sustainable pipeline and we're encouraged by the second quarter results, leading indicators and the increasing number of opportunities across our regions.

As a reminder, beginning with the first quarter of 2025 ETF gross flow activity is reflected in the applicable client types that generated the activity access to improved data transparency enabled us to make this change for periods prior to towards 25, all ETF flow activity as shown in the intermediary channel.

Net outflows for the self directed channel, which includes direct and supermarket investors were $1 $1 billion.

Roger Thompson: Access to improved data transparency enabled us to make this change. For periods prior to 2025, all ETF flow activity is shown in the intermediary channel. Intermediary channel net flows were negative $1.2 billion, reflecting the challenging flow environment during the April drawdown. In the second quarter, net flows were positive in the US, with net outflows in EMEA, LATAM, and Asia Pacific. In the US, the net flows were positive for the eighth consecutive quarter. Despite a challenging April for our active ETFs, once the extreme market dislocation abated and markets stabilized, JAAA quickly returned to net inflows, resulting in positive net flows for our active ETFs in the quarter. In addition to our active ETFs, other areas contributing net flows in the second quarter included US mid-cap growth, international Alpha Equity, our biotech hedge fund, and the Privacor revised assets raised for Co2.

The second quarter includes approximately $100 million of ETF outflows from a supermarket clients.

Intermediary channel net flows were negative $1 2 billion, reflecting the challenging slower environment joined me to draw them.

Leading etfs self directed net outflows were roughly flat to the prior quarter and the prior year.

In the second quarter net flows were positive in the U S with net outflows in EMEA, Latam and Asia Pacific.

Slide six shows our flows in the quarter by capability.

Equity flows were negative $2 $6 billion compared to $4 $2 billion of Midtown flows in the prior quarter.

In the U S. The net flows were positive for the eighth consecutive quarter.

Despite a challenging April for our active Etfs once the extreme market dislocation abated and market stabilized J AAA quickly return to net inflows, resulting in positive net flows for active etfs in the quarter.

The rote remains challenging for active equities across all regions. While it's negative net flows are equity capability had its best gross so quarter two years, demonstrating increased client demand for equities.

Second quarter net inflows for fixed income with $49 $7 billion.

To $5 $6 billion of net inflows in the prior quarter.

Outside of the Guardian General account net flows several strategies contribution as opposed to fixed income flows.

Roger Thompson: US intermediary is a key initiative under our protect and grow strategic pillar, and we're pleased that we continue to gain market share against a volatile market backdrop. Under our amplify strategic pillar, we've talked about amplifying our investment and client service strengths using various means, including vehicles through which we deliver our products. In addition to active ETFs, flows into CITs, SMAs, and hedge funds in this channel were positive in the second quarter. In EMEA, Continental Europe delivered net inflows, while the UK had net outflows, primarily driven by investment trusts and the global strategic total bond strategy. Institutional net inflows were $49 billion compared to net inflows of $800 million in the prior quarter, marking the third consecutive quarter of positive flows.

U S. Intermediary is a key initiative under our protect and grow strategic pillar and we're pleased that we continued to gain market share against a volatile market backdrop.

Active fixed income Etfs delivered net inflows of $1 billion in the quarter and as Ali mentioned included four active Etfs with at least $100 million of net inflows, including J AAA J M. B S vanilla and J S. I alpha strategies contributing to positive flows we use by maintained credit.

Under our amplify strategic pillar, we've talked about amplifying our investments in client service strengths using various means including vehicles through which we deliver our products. In addition to active Etfs flows into Cit's sma's and hedge funds in this channel were positive in the second quarter.

A token of US Treasury fund core plus and Australia and sustainable credit.

In EMEA Continental Europe delivered net inflows, while the U K had net outflows, primarily driven by investment trusts and the global strategic total bond strategy.

Net outflows for the multi asset capability with $1.1 billion, primarily due to net outflows and a balanced strategy.

And finally net inflows in the alternatives capability with $700 million driven primarily by the biotech hedge fund V. P. CS asset backed opportunistic credit strategy and political.

Institutional net inflows of 49 billion compared to net inflows of $800 million in the prior quarter, marking the third consecutive quarter of positive flows.

Roger Thompson: During the quarter, we were pleased to see our broad distribution footprint demonstrated as our institutional channel performed well, while retail was adversely impacted by the market uncertainty in the early part of the quarter. Excluding the Guardian general account, institutional gross sales were the best result in over two years and reflect fundings in fixed income and equities across corporates, pensions, and insurance clients. We're continuing to work to create a sustainable pipeline, and we're encouraged by the second quarter result, leading indicators, and the increasing number of opportunities across our regions. Net outflows for the self-directed channel, which includes direct and supermarket investors, were $1.1 billion. The second quarter includes approximately $100 million of ETF net outflows from our supermarket clients. Excluding ETFs, self-directed net outflows were roughly flat for the prior quarter and the prior year. Slide six shows our flows in the quarter by capability.

During the quarter, we were pleased to see a broad distribution footprint demonstrated as our institutional channel performed well, while retail was that firstly impacted by the market uncertainty in the early part of the quarter.

Moving onto the financials.

<unk> seven is our U S. GAAP statement of income on slide eight we explain the adjusted financial results.

Adjusted operating results improved compared to the prior quarter and the prior year.

Excluding the Guardian General account institutional gross sales with the best result in over two years and reflect fundings in fixed income and equities across corporate pensions and insurance clients.

Compared to the prior quarter the improvement is primarily from higher performance fees.

Versus the same period, a year ago. The improvement was primarily from strong investment performance delivering high performance fees on higher average AUM.

We're continuing to work to create a sustainable pipeline and we're encouraged by the second quarter results, leading indicators and the increasing number of opportunities across our regions.

These were partially offset by increased expenses from acquisitions and strategic investments in the business and a weaker U S dollar.

Net outflows for the self directed channel, which includes direct and supermarket investors were $1 $1 billion.

Looking at the detail.

Adjusted revenue increased 2% compared to prior quarter, primarily due to higher seasonal performance fees increased 9% compared to the prior year, primarily due to higher management fees on higher average AUM and the improved U S Mutual fund performance fees.

The second quarter includes approximately $100 million of ETF outflows from a supermarket clients. Excluding Etfs self directed net outflows were roughly flat to the prior quarter and the prior year.

Slide six shows our flows in the quarter by capability.

Net management fee margin was 47.5 basis points in the second quarter the.

Roger Thompson: Equity flows were negative $2.6 billion compared to $4.2 billion of net outflows in the prior quarter. The arrival remains challenging for active equities across all regions. Whilst negative in net flows, our equity capability had its best gross sale quarter in two years, demonstrating increased client demand for equities. Second quarter net inflows for fixed income were $49.7 billion compared to $5.6 billion of net inflows in the prior quarter. Outside of the Guardian general account net flows, several strategies contributed to positive fixed income flows. Active fixed income ETFs delivered net inflows of a billion dollars in the quarter, and as Ali mentioned, included four active ETFs with at least $100 million of net inflows, including JAAA, JMBS, Vanilla, and JSI. Other strategies contributing to positive flows were US buy and maintain credit, our tokenized treasury fund, Core Plus, and Australian Sustainable Credit.

Equity flows were negative $2 $6 billion compared to $4 $2 billion of Midtown flows in the prior quarter.

The decline from the prior quarter was primarily a result of mix shift caused by the April drawdown as well as some onetime adjustments, which will not repeat.

The Iran remains challenging for active equities across all regions. While it's negative net flows are equity capability had its best gross sales quarter in two years, demonstrating increased client demand for equities.

With a $46 $5 billion predominantly investment grade fixed income portfolio. We now manage for Guardians General accounts, we expect for the aggregates that management fee rates will be approximately 45 basis points lower than the second quarter average net fee rates of 47.5 basis points, which compares to our previous guidance of five.

Second quarter net inflows for fixed income with $49 $7 billion compared to $5 $6 billion of net inflows in the prior quarter.

Six basis points lower.

Second quarter performance fees of positive $15 million, primarily consist of seasonal C cap U K Oik on investment Trust performance fees.

Outside of the Guardian General account net flows several strategies contribute to it as opposed to fixed income flows.

Active fixed income Etfs delivered net inflows of $1 billion in the quarter and as Ali mentioned included four active Etfs with at least $100 million of net inflows, including J AAA J M. B S. Vanilla J S. I alpha strategies contributing to positive flows we use by maintained credit a token.

Our U S. Mutual fund performance fees were also positive this quarter with a $1 million, which was the first positive result in over 10 years U S. Mutual fund performance fees have continued to improve reflected by the positive $1 million this quarter compared to negative $11 million a year ago.

Treasury Fund core plus and Australia and sustainable credit.

Continuing on to expenses.

Adjusted operating expenses for the second quarter with $331 million compared to $330 million in the prior quarter.

Roger Thompson: Net outflows for the multi-asset capability were $1.1 billion, primarily due to net outflows in the balance strategy. And finally, net inflows in the alternatives capability were $700 million, driven primarily by the biotech hedge fund, VPC's asset-backed opportunistic credit strategy, and Privacor. Moving on to the financials, slide seven is our US GAAP stabilized income, and on slide eight, we explain the adjusted financial results. Adjusted operating results improved compared to the prior quarter and the prior year. Compared to the prior quarter, the improvement is primarily from higher performance fees. Versus the same period a year ago, the improvement was primarily from strong investment performance delivering higher performance fees and higher average AUM. These were partially offset by increased expenses from acquisitions, strategic investments in the business, and a weaker US dollar.

Net outflows for the multi asset capability with $1.1 billion, primarily due to net outflows in the balanced strategy.

Adjusted LTI decreased 12% compared to the prior quarter largely due to seasonal payroll taxes triggered by annual vesting of the prior quarter.

And finally net inflows in the alternatives capability with $700 million driven primarily by the biotech hedge fund V. P. CS asset backed opportunistic credit strategy on political.

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

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

The second quarter adjusted comp to revenue ratio declined to 43, 2% from 45, 8% in the seasonally high first quarter.

Adjusted operating results improved compared to the prior quarter and the prior year.

Adjusted non comp operating expenses increased 8% compared to the first quarter, primarily from higher marketing and G&A expenses with respect to full year 2025 expense expectations. Our previously stated expected compensation ratio in 2025 remains unchanged at 43% to 44%.

The prior quarter the improvement is primarily from higher performance fees.

Versus the same period, a year ago. The improvement was primarily from strong investment performance delivering high performance fees on Hi, Robert J U N.

These were partially offset by increased expenses from acquisitions and strategic investments in the business and a weaker U S dollar.

Assuming 30 June of U M zero market assumption for the second half of the year.

Roger Thompson: Looking at the detail, adjusted revenue increased 2% compared to the prior quarter, primarily due to higher seasonal performance fees, and increased 9% compared to the prior year, primarily due to higher management fees on higher average AUM and the improved US mutual fund performance fees. Net management fee margin was 47.5 basis points in the second quarter. The decline in the prior quarter was primarily a result of mixed shift caused by the April drawdown, as well as some one-time adjustments which will not repeat. With the $46.5 billion predominantly investment-grade fixed income portfolio we now manage the Guardian's general account, we expect that our aggregate net management fee rate will be approximately 4.5 basis points lower than the second quarter average net fee rate of 47.5 basis points, which compares to our previous guidance of five to six basis points lower.

Looking at the detail.

For non compensation guidance, we expect high single digit percentage growth in non comp expenses compared to 2024, reflecting investments supporting our ongoing strategic initiatives and operational efficiencies inflation and the full year impact of the consolidation of CPC and BK tabular and Guardians.

Adjusted revenue increased 2% compared to prior quarter, primarily due to higher seasonal performance fees and increased 9% compared to the prior year, primarily due to higher management fees on higher average AUM and the improved U S Mutual fund performance fees.

Net management fee margin was 47.5 basis points in the second quarter.

This update to the high end about previous range is solely as a result of the FX impacts from a further weakening U S. Dollar in the first half of 2025.

Declines in the prior quarter was primarily a result of mix shift caused by the April drawdown as well as some one time adjustments, which will not repeat.

We remain committed to strong cost discipline and showing that we manage our cost base, while continuing to support our long term growth objectives with the business.

With the $46 $5 billion predominantly investment grade fixed income portfolio. We now manage the Guardian's General account, we expect for the aggregate net management fee rate will be approximately 4.5 basis points lower than the second quarter average fee rates of 47.5 basis points, which compares to our previous guidance of 5%.

Our expectation of the firm's tax rate on adjusted net income attributable to <unk> G remains unchanged in the range of 23% to 25%.

Our second quarter adjusted operating margin was 33, 5%.

Six basis points lower.

Second quarter performance fees of positive $15 million, primarily consist of seasonal C cap U K Oik on investment Trust performance fees.

Roger Thompson: Second quarter performance fees of positive $15 million primarily consist of seasonal CCAV, UK OIC, and investment trust performance fees. Our US mutual fund performance fees were also positive this quarter at a million dollars, which is the first positive result in over 10 years. US mutual fund performance fees have continued to improve, reflected by the positive $1 million this quarter compared to negative $11 million a year ago. Continuing on to expenses, adjusted operating expenses for the second quarter were $331 million compared to $330 million in the prior quarter. Adjusted LTI decreased 12% compared to the prior quarter, largely due to seasonal payroll taxes triggered by annual vestings in the prior quarter. In the appendix, we've provided the usual table on the expected future amortization of existing grants for you to use in your models.

And finally, adjusted diluted EPS was <unk> 90 up 6% from the comparable second quarter 2024 period.

Our U S. Mutual fund performance fees were also positive this quarter with $1 billion, which is the first positive result in over 10 years U S. Mutual fund performance fees have continued to improve reflected by the positive $1 million this quarter compared to negative $11 million a year ago.

Excuse me I have a slide nine and moving to slide 10, and look at our liquidity profile.

Balance sheet remains strong and stable cash and cash equivalents were $900 million, especially for June which is lower from the end of the first quarter, primarily due to share buybacks related to our corporate and compensation repurchase schemes.

Continuing onto expenses.

Adjusted operating expenses for the second quarter with $331 million compared to $330 million in the prior quarter.

As well as net investments made in seed capital.

During the quarter, we funded our quarterly dividend and repurchased one 3 million shares as part of our corporate buyback program for $50 million.

Adjusted LTI decreased 12% compared to the prior quarter largely due to seasonal payroll taxes triggered by annual vesting of the prior quarter.

The Board has also declared a <unk> 40 cents per share dividend to be paid on the 28th of August to shareholders of record as at the 11th of August.

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

Roger Thompson: The second quarter adjusted comp to revenue ratio declined to 43.2% from 45.8% in the seasonally higher first quarter. Adjusted non-company operating expenses increased 8% compared to the first quarter, primarily from higher marketing and G&A expenses. With respect to full year 2025 expense expectations, our previously stated expected compensation ratio in 2025 remains unchanged at 43 to 44%, assuming 30 G&A and a zero market assumption for the second half of the year. For non-compensation guidance, we expect high single-digit percentage growth in non-comp expenses compared to 2024, reflecting investments supporting our ongoing strategic initiatives and operational efficiencies, inflation, and the full year impact of the consolidation of VPC, MBK, Tabula, and Guardian. This update to the high end of our previous range is solely as a result of the FX impact from a further weakening US dollar in the first half of 2025.

The second quarter adjusted comp to revenue ratio declined to 43, 2% from 45, 8% in the seasonally high first quarter.

Slide 11 looks at more detail at our consistent return of capital to shareholders.

Yeah.

We've maintained a healthy quarterly dividend and have reduced shares outstanding by over 22% since 2018.

Adjusted non comp operating expenses increased 8% compared to the first quarter, primarily from higher marketing and G&A expenses with respect to full year 2025 expense expectations.

During the first half of 2025, we returned $202 million, including $76 million for share repurchases.

Previously stated expected compensation ratio in 2025 remains unchanged at 43% to 44% achieving 30 June of U M zero market assumption for the second half of the year.

The buyback program and dividends do not alter our ability to invest in the business organically or inorganically as well as return cash to shareholders.

Currently our liquidity profile allows us to do both.

Our return of excess cash is consistent with our capital allocation framework and we'll continue to look to return capital to shareholders, where there isn't an immediately more compelling investments in the business.

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

Thanks, Roger turning to slide 12, and a reminder of our three strategic pillars of protect and grow our core businesses amplify our strengths thoughtfully levers and diversify where clients gave us the right to win.

This update to the high end about previous range is solely as a result of the FX impacts from a further weakening U S. Dollar in the first half of 2025.

Yeah.

Roger Thompson: We remain committed to strong cost discipline, ensuring that we manage our cost base while continuing to support the long-term growth objectives of the business. Finally, our expectation of the firm's tax rate on adjusted net income attributable to JHG remains unchanged in the range of 23 to 25%. Our second quarter adjusted operating margin was 33.5%. And finally, adjusted diluted EPS was $0.90, up 6% from the comparable second quarter 2024 period. Skipping over slide nine and moving to slide ten on a look at our liquidity profile, our balance sheet remains strong and stable. Cash and cash equivalents were $900 million as of the 30th of June, which is lower from the end of the first quarter, primarily due to share buybacks related to our corporate and compensation repurchase schemes, as well as net investments made in seed capital.

We remain committed to strong cost discipline, ensuring that we manage our cost base, while continuing to support our long term growth objectives with the business.

We are in the execution phase and we believe this strategic vision has is on the path to you over time deliver organic growth consistently.

In protect and 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.

Finally, our expectation of the firm's tax rate on adjusted net income attributable to J H G remains unchanged in the range of 23% to 25%.

We also delivered another quarter of positive net flows in U S intermediary, despite a challenging flow environment, marking eight straight quarter of those net flows.

Our second quarter adjusted operating margin was 33, 5%.

And finally, adjusted diluted EPS was <unk> 90 up 6% from the comparable second quarter 2024 period.

Within amplify we've talked about our institutional business and our product development and expansion efforts such as our build out of active Etfs in the U S and now outside the U S with the acquisition of tabular.

Skipping over to slide nine and moving to slide 10, and look at our liquidity profile.

Year to date, we have launched eight ETF globally with more planned in the second half of the year.

Our balance sheet remains strong and stable cash and cash equivalents were $900 million.

Janus Henderson is now the eighth largest provider of active Etfs in the world and second largest provider of active fixed income Etfs in the world are.

She said June which is lower from the end of the first quarter, primarily due to share buybacks related to our corporate and compensation repurchase schemes.

Our partnership with NOI centrifuge reflects the firm's commitment to digital assets and our desire to embrace disruptive financial technologies. The partnership has already begun to demonstrate success as I mentioned earlier the fully on chain Janus Henderson animal Treasury fund delivered over $400 million of net inflows in the second quarter.

Well its net investments made in seed capital.

Roger Thompson: During the quarter, we funded our quarterly dividend and repurchased 1.3 million shares as part of our corporate buyback program for $50 million. The board has also declared a $0.40 per share dividend to be paid on the 28th of August to shareholders of record as of the 11th of August. Slide 11 looks in more detail at our consistent return of capital to shareholders. We've maintained a healthy quarterly dividend and have reduced shares outstanding by over 22% since 2018. During the first half of 2025, we returned $202 million, including $76 million via share repurchases. The buyback program and dividends do not alter our ability to invest in the business organically or inorganically, as well as return cash to shareholders. Currently, our liquidity profile allows us to do both.

During the quarter, we funded our quarterly dividend and repurchased one 3 million shares as part of our corporate buyback program for $50 million.

The Board has also declared a <unk> 40 cents per share dividend to be paid on the 28 of August to shareholders of record as at the 11th of August.

<unk>. The recently completed strategic partnership with Guardian will amplifier insurance institutional and fixed income businesses through the management of their general account, mostly investment grade public fixed income portfolio acceleration of product innovation with Guardians commitment of seed capital and the strategic initiative to co developed proprietary multi app.

Slide 11 looks at more detail at our consistent return of capital to shareholders.

We've maintained a healthy quarterly dividend and have reduced shares outstanding by over 22% since 2018.

During the first half of 2025, we returned $202 million, including $76 million for share repurchases.

That solution model portfolios for Guardians, Julian registered broker dealer and registered investment Advisor Park Avenue Securities.

Under diversify we've addressed both the public and private market and emerging market debt with <unk> capital partners, a private capital space and on the public side, we brought on a well respected emerging market debt team.

The buyback program and dividends do not alter our ability to invest in the business organically or inorganically as well as return cash to shareholders.

Currently our liquidity profile allows us to do both.

We expanded its differentiated private market capabilities for clients with the acquisition of pioneering asset backed lending firm victory Park capital and we establish our joint venture private core focus on the democratization of alternatives in partnership with the wealth channel, which is starting to bear fruit as I mentioned earlier.

Roger Thompson: Our return of excess cash is consistent with our capital allocation framework, and we'll continue to look to return capital to shareholders where there isn't an immediately more compelling investment in the business. With that, I'd like to turn it back over to Ali to give an update on our strategic progress.

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

In addition.

<unk> to implementing and executing on our new strategic direction Janus Henderson has gone through many other changes over the last several years. These.

Thanks, Roger 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 our clients gave us the right to win.

Ali Dibadj: Thanks, Roger. Turning to slide 12 and a reminder of our three strategic pillars of protect and grow our core businesses, amplify our strengths, not fully leveraged, and diversify where clients give us the right to win. We are in the execution phase, and we believe this strategic vision has us on the path to, over time, deliver organic growth consistently. In Protect and 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 also delivered another quarter of positive net flows in US intermediary, despite a challenging flow environment, marking eight straight quarters of net flows. Within Amplify, we've talked about our institutional business and our product development and expansion efforts, such as our build-out of active ETFs in the US and now outside the US with the acquisition of Tabula.

These changes are all being done with the explicit objective of improving the client experience. This includes how we have evolved our client approach now moving to slide 13.

The execution phase and we believe this strategic vision has is on the path to you over time deliver organic growth consistently.

We've been intentional about how we interact and importantly partner with our clients.

In protect and grow you'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.

We strongly believe that strategically partnering with clients delivers better outcomes for all parties.

First and most important of our five firm values as clients come first always and we are humbled and honored that our approximately 60 million people globally rely directly or indirectly on Janus Henderson for their financial wellbeing that is at our core and clients, calling first will not change in fact, we're trying to push that firm.

We also delivered another quarter of positive net flows in U S intermediary, despite a challenging flow environment, marking eight straight quarter of those net flows.

Within amplify we've talked about our institutional business, our product development and expansion efforts such as our build out of active Etfs in the U S and now outside the U S with the acquisition of tabular.

Therefore, with elevating partnerships with clients.

Ali Dibadj: Year to date, we've launched eight ETFs globally, with more planned in the second half of the year. JANUS HENDERSON is now the eighth largest provider of active ETFs in the world and second largest provider of active fixed income ETFs in the world. Our partnership with NMY and Centrifuge reflects the firm's commitment to digital assets and our desire to embrace disruptive financial technologies. The partnership has already begun to demonstrate success. As I mentioned earlier, the fully on-chain JANUS HENDERSON NMY Treasury Fund delivered over $400 million of net inflows in the second quarter.

Year to date, we have launched eight etfs globally with more planned in the second half of the year.

What that means for us tactically and thoughtfully is working to deepen client relationships.

Janus Henderson is now the eighth largest provider of active Etfs in the world and second largest provider of active fixed income Etfs in the world.

Wyant relationship is no longer transactional it's not about sales relationship it's about peer to peer relationships and really working to increase nodes of connectivity between Janus Henderson and our clients.

Our partnership with antibody centrifuge reflects the firm's commitment to digital assets and our desire to embrace disruptive financial technologies. The partnership has already begun to demonstrate success as I mentioned earlier the fully on chain Janus Henderson and my Treasury fund delivered over $400 million of net inflows in the second quarter.

It's evolving from regional accountability to global Accountability again, it's not about sales accounts, but having franchise partnerships and franchise clients. That's what we want to continue to do and we believe our clients are seeing those intentional actions and improvements from US already there are several ways, we can elevate partnerships with clients and increase those nodes of connectivity.

Ali Dibadj: Finally, the recently completed strategic partnership with Guardian will amplify our insurance, institutional, and fixed income businesses through the management of their general account, mostly investment-grade public fixed income portfolio, acceleration of product innovation with Guardian's commitment of seed capital, and the strategic initiative to co-develop proprietary multi-asset solution model portfolios for Guardian's duly registered broker-dealer and registered investment advisor, Park Avenue Securities. Under Diversify, we've addressed both the public and private markets and emerging market debt with NBK Capital Partners in the private capital space. And on the public side, we brought on a well-respected emerging market debt team. We expanded its differentiated private market capabilities for clients with the acquisition of pioneering asset-backed lending firm Victory Park Capital, and we established our joint venture Privacor, focused on the democratization of alternatives in partnership with the Wealth Channel, which is starting to bear fruit, as I mentioned earlier.

Finally, the recently completed strategic partnership with Guardian will amplifier insurance institutional and fixed income businesses through the management of their general account, mostly investment grade public fixed income portfolio acceleration of product innovation with Guardians commitment of seed capital and the strategic initiative to co develop proprietary multi <unk>.

Of course, those waves include delivering investment performance in the right vehicles with World class client service at all.

Also means leading with insight and sharing our knowledge base with clients.

For example, we've had Janus Henderson colleagues lead its strategic off sites for some of our clients our Chief Technology officer is that discussions with clients on AI.

Asset solution model portfolios for Guardians, Julian registered broker dealer and registered investment Advisor Park Avenue Securities.

Educational sessions with U S financial advisors on Investor Psychology, behavioral finance and succession planning.

Under diversify.

Both the public and private market and emerging market debt with NBA capital partners that have private capital space and on the public side, we brought on a well respected emerging market debt team.

Those are just a few of the many examples of bringing the whole firm to our clients.

Elsewhere, we've conducted several client conferences in the U S. The U K kind of Europe, Asia, and Australia, where clients give their scarce time to hear from us with several trillion dollars of EM and millions of People's retirement and savings represented at these conferences. They tend to these events is to bring the whole firm to our clients and develop shared experiences.

We expanded into differentiated private market capabilities for clients with the acquisition of pioneering asset backed lending firm victory Park capital and we establish our joint venture private car focus on the democratization of alternatives in partnership with the wealth channel, which is starting to bear fruit as I mentioned earlier.

Ali Dibadj: In addition to implementing and executing on a new strategic direction, JANUS HENDERSON has gone through many other changes over the last several years. These changes are all being done with the explicit objective of improving the client experience. This includes how we have evolved our client approach. Now moving to slide 13, we've been intentional about how we interact and importantly partner with our clients. We strongly believe that strategically partnering with clients delivers better outcomes for all parties. The first and most important of our five firm values is clients come first always, and we are humbled and honored that approximately 60 million people globally rely directly or indirectly on JANUS HENDERSON for their financial well-being. That is at our core, and clients coming first will not change. In fact, we're trying to push that further forward with elevating partnerships with clients.

In addition to implementing and executing on our new strategic direction Janus Henderson has gone through many other changes over the last several years. These.

Slide 14 looks at how this evolved approach to client partnerships is now embedded in our updated branding.

These changes are all being done with the explicit objective of improving the client experience. This includes how we have evolved our client approach now moving to slide 13.

First I'm pleased to report that a few recent external surveys seem to confirm that Janus Henderson is making progress in strengthening its brand profile and brand matters.

We've been intentional about how we interact and importantly partner with our clients.

To start off knowing our brand are much more likely to partner with it then if they don't know their brand.

We strongly believe that strategically partnering with clients delivers better outcomes for all parties.

Ah Broadridge Fund brand 50 is a global survey of asset manager brand strength in the intermediary channel.

First and most important of our five firm values as clients come first always and we are humbled and honored that of approximately 60 million people globally rely directly or indirectly on Janus Henderson for their financial wellbeing that is at our core and clients, calling first will not change in fact, we're trying to push that further.

Over the last two years, we've seen both our U S and European intermediary brand strength improve.

Next specific to our institutional business is the global institutional N M. G. Consulting report here removed up 32 spots from two years ago to global brand rank of 37.

I want to thank my colleagues from across the firm for their individual and collective efforts around strengthening our brand profile.

Therefore, with elevating partnerships with clients.

Ali Dibadj: What that means for us tactically and thoughtfully is working to deepen client relationships. The client relationship is no longer transactional. It's not about sales relationships. It's about peer-to-peer relationships and really working to increase nodes of connectivity between JANUS HENDERSON and our clients. It's evolving from regional accountability to global accountability. Again, it's not about sales accounts. It's about having franchise partnerships and franchise clients. That's what we want to continue to do, and we believe our clients are seeing those intentional actions and improvements from us already. There are several ways we can elevate partnerships with clients and increase those nodes of connectivity. Of course, those ways include delivering investment performance in the right vehicles with world-class client service. It also means leading with insight and sharing our knowledge base with clients. For example, we've had JANUS HENDERSON colleagues lead strategic offsites for some of our clients.

What that means for us tactically and thoughtfully is working to deepen client relationships.

Second our strengthening brand profile and updated global branding reflect our commitment to investing in a brighter future together.

Current relationship is no longer transactional it's not about sales relationship it's about peer to peer relationships and really working to increase nodes of connectivity between Janus Henderson and our clients.

Some of you may have noticed the Janus Henderson ampersand, appearing in targeted advertising around you.

Believe that our ampersand symbolizes the deepening connection with clients and captures who we are in that journey, we actively choose to go on every day with our clients.

We surveyed and interview clients hearing from them that one important thing Janus Henderson does that is unique is connect with them.

We want clients to think about Janus Henderson and its connection with them when they see that ampersand client goals and our solution client vision and our mission client successes and our pride in delivering on our objective of differentiated insights disciplined investments and world class service.

<unk>.

Of course, those ways include delivering investment performance in the right vehicles with World Class client service. It also means leading with insight and sharing our knowledge base with clients.

For example, we've had Janus Henderson colleagues lead its strategic off sites for some of our clients our Chief Technology officer is that discussions with clients on AI.

This new brand campaign was launched globally in April including campaigns in North America, Europe, and Asia, We believe that our new branding, including the ampersand uniquely demonstrates our partnership centered approach and shared connections with clients.

Ali Dibadj: Our Chief Technology Officer has had discussions with clients on AI, and we've held educational sessions with US financial advisors on investor psychology, behavioral finance, and succession planning. Those are just a few of the many examples of bringing the whole firm to our clients. Elsewhere, we've conducted several client conferences in the US, the UK, continental Europe, Asia, and Australia, where clients give their scarce time to hear from us, with several trillion dollars of AUM and millions of people's retirements and savings represented at these conferences. The intent of these events is to bring the whole firm to our clients and develop shared experiences. Slide 14 looks at how this evolved approach to client partnerships is now embedded in our updated branding.

Held educational sessions with U S financial advisors on Investor Psychology, behavioral finance and succession planning.

Turning to slide 15, and a reminder, that although we are changing and improving as a firm our mission values and purpose. Our M. P. P will never change.

Those are just a few of the many examples of bringing the whole firm to our clients <unk>.

Elsewhere, we've conducted several client conferences in the U S. The U K kind of Europe, Asia, and Australia, where clients give their scarce time to hear from us with several trillion dollars of EM and millions of People's retirement and savings represented at these conferences. The 10th of these events is to bring a whole firm to our clients and develop shared experiences.

Indeed, our evolved approach to client partnership is borne out of our N V. P, which was first introduced in 2023 and continue to enhance our culture.

Since then Janus Henderson is gone and will continue to go through a lot of positive change and transformation. These changes were made to improve ourselves for our clients as I mentioned, one thing, which will not change is our mission values and purpose that isn't beautiful.

Slide 14 looks at how this evolved approach to client partnerships is now embedded in our updated branding.

Ali Dibadj: First, I'm pleased to report that a few recent external surveys seem to confirm that JANUS HENDERSON is making progress in strengthening its brand profile, and brand matters. Clients who start off knowing a brand are much more likely to partner with it than if they don't know the brand. The Broderick Fund Brand 50 is a global survey of asset manager brand strength in the intermediary channel. Over the last two years, we've seen both our US and European intermediary brand strength improve. Next, specific to our institutional business is the Global Institutional NMG Consulting Report. Here we moved up 32 spots from two years ago to a global brand rank of 37. I want to thank my colleagues from across the firm for their individual and collective efforts around strengthening our brand profile.

First I'm pleased to report that a few recent external surveys seem to confirm that Janus Henderson is making progress in strengthening its brand profile and brand matters.

Our purpose remember is investing in a brighter future together, that's what we do for investors, we do together with our clients, we aim to deliver a brighter future for our clients and their clients. The 60 million people around the world, who rely on Janus Henderson directly or indirectly for their financial health.

Clients, who start off knowing our brand are much more likely to partner with it then if they don't know their brand.

The Broadridge Fund brand 50 is a global survey of asset manage our brand strength in the intermediary channel.

Goal is to do this in partnership with our clients shared connectivity in collaboration with them.

Over the last two years, we've seen both our U S and European intermediary brand strength improve.

Wrapping up on slide 16.

We're making meaningful progress across the business, we are executing against our strategic objectives, including our multifaceted strategic partnership with Guardian for which we are already starting to see benefits.

Next specific to our institutional business is the global institutional N M. G. Consulting report here removed up 32 spots from two years ago to global brand rank of 37.

Investment performance was solid across all time periods versus benchmarks and peers.

Wanted to thank my colleagues from across the firm for their individual and collective efforts around strengthening our brand profile.

Net inflows were positive $46 $7 billion, marking our fifth consecutive quarter of net inflows, even excluding the Guardian general account flow net flows remain positive and reflect a 40% increase in gross sales compared to the prior year and that's during a quarter with heightened market volatility.

Second our strengthening brand profile and updated global branding reflect our commitment to investing in a brighter future together.

Ali Dibadj: Second, our strengthening brand profile and updated global branding reflect our commitment to investing in a brighter future together. Some of you may have noticed the JANUS HENDERSON ampersand appearing in targeted advertising around you. We believe that our ampersand symbolizes the deepening connection with clients and captures who we are and the journey we actively choose to go on every day with our clients. We surveyed and interviewed clients, hearing from them that one important thing JANUS HENDERSON does that is unique is connect with them. We want clients to think about JANUS HENDERSON and its connection with them when they see that ampersand. Client goals and our solution, client visions and our mission, client successes, and our pride in delivering on our objective of differentiated insights, disciplined investments, and world-class service. This new brand campaign was launched globally in April, including campaigns in North America, Europe, and Asia.

Some of you may have noticed the Janus Henderson ampersand, appearing in targeted advertising around you.

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

Leave that our ampersand symbolizes the deepening connection with clients and captures who we are in that journey, we actively choose to go on every day with our clients.

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

We surveyed and interview clients hearing from them that one important thing Janus Henderson does that is unique is connect with them.

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

Thank you to ask a question. Please press star followed by one on your telephone keypad now if you change your mind. Please press star flip I T.

And preparing to ask a question. Please ensure your devices and muted lately.

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

Ali Dibadj: We believe that our new branding, including the ampersand, uniquely demonstrates our partnership-centered approach and shared connections with clients. Turning to slide 15 and a reminder that although we are changing and improving as a firm, our mission, values, and purpose, or MVP, will never change. Indeed, our evolved approach to client partnerships is born out of our MVP, which was first introduced in 2023 and continues to enhance our culture. Since then, JANUS HENDERSON has gone and will continue to go through a lot of positive change and transformation. These changes were made to improve ourselves for our clients. As I mentioned, one thing which will not change is our mission, values, and purpose. That is immutable. Our purpose, remember, is investing in a brighter future together. That's what we do. We're investors. We do it together with our clients.

The first comes from Ken Worthington of Jpmorgan. Your line is now open. Please go ahead.

Turning to slide 15, and a reminder, that although we are changing and improving as a firm our mission values and purpose. Our M. P. P will never change.

Hi, Good morning. Thank you for taking the question maybe first on the institutional channel as you guys mentioned the third consecutive quarter of positive net sales, even excluding guardian and the results are an indication of the success that your strategy has had thus far.

Indeed, our evolved approach to client partnership is borne out of our MVP, which was first introduced in 2023 and continue to enhance our culture.

Are there next priorities on the institutional side or do you feel that Janus has sort of appropriately positioned in the institutional channel at this point.

Hey, Ken It's Ali Thanks for the question.

Youre right, where we're pleased with the three consecutive quarters of institutional net flows again this quarter.

Our purpose remember is investing in a brighter future together, that's what we do for our investors, we do together with our clients, we aim to deliver a brighter future for our clients and their clients. The 60 million people around the world, who rely on Janus Henderson directly or indirectly for their financial health.

About $49 billion of net flows in the quarter of which four six and a half is from the Guardian General account.

Ali Dibadj: We aim to deliver brighter futures for our clients and their clients, the 60 million people around the world who rely on JANUS HENDERSON directly or indirectly for their financial health. Our goal is to do this in partnership with our clients, a shared connectivity and collaboration with them. Wrapping up on slide 16, we're making meaningful progress across the business. We are executing against our strategic objectives, including our multifaceted strategic partnership with Guardian, from which we are already starting to see benefits. Investment performance is solid across all time periods versus benchmarks and peers. Net inflows were positive $46.7 billion, marking our fifth consecutive quarter of net inflows. Even excluding the Guardian general account flow, net flows remain positive and reflect a 40% increase in gross sales compared to the prior year, and that's during a quarter with heightened market volatility.

We're also pleased by the way Thats, a 46 and a half from Guardian has better than 45 billion that we anticipated earlier on.

Our goal is to do this in partnership with our clients shared connectivity in collaboration with them.

Again as a symbol of their growth.

And excited to partner with them, we've seen that growth and we hope that their growth.

Wrapping up on slide 16.

Can can continue.

We also saw flows excellent regarding general account and institutional quite broadly across equities and fixed income that was across corporates across pensions across insurance and even if you disaggregate that a little bit further they were 10 fundings of greater than $100 million.

Investment performance was solid across all time periods versus benchmarks and peers.

Institutional side of things so.

It feels like we're broadening it feels like we are getting in the on the radar screen of these institutional players and it feels like again, the leading indicators in terms of meetings and everything are are looking pretty good.

Ali Dibadj: Our financial performance and strong balance sheet allow us to continue returning cash to shareholders through dividends and share buybacks, while reinvesting in the business for future growth. Our focus continues to be helping clients define and achieve superior financial outcomes and to deliver desired results for our clients, shareholders, employees, and all our stakeholders. Let me turn the call back over to the operator to take your questions.

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

Not there yet in my mind, perhaps subtext of your question Ken to say that we are always going to deliver positive flow from institutional and we have a sustainable outcome, but it certainly feels like we're on the right track part of what we're doing obviously with this branding campaign is to make sure that people put us in their consideration set and that is both.

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

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

Thank you to ask a question. Please press star followed by one on your telephone keypad now if you change your mind. Please press star flip I T.

Lucy: Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. In the interest of time, questions will be limited to one initial and one follow-up question. The first comes from Ken Worthington of JP Morgan. Your line is now open. Please go ahead.

The client on the institutional side as well as the consultants with whom we are building closer and closer relationships with with whom we're really putting into play as we mentioned in the prepared remarks are much more aligned and partnership mindset that we have to bear. So we're clearly broadening ourselves we're pleased with the outcome. So far we certainly have more to go.

And preparing to ask a question. Please ensure your devices and muted lately and.

The interest of time questions will be limited to one initial and one follow up question.

The first comes from Ken Worthington of Jpmorgan. Your line is now open. Please go ahead.

But the.

The pace is picking up here and we feel okay.

Ken Worthington: Hi, good morning. Thank you for taking the question. Maybe first on the institutional channel, as you guys mentioned, the third consecutive quarter of positive net sales, even excluding Guardian, and the results are an indication of the success that your strategy has had thus far. Are there next priorities on the institutional side, or do you feel that JANUS is sort of appropriately positioned in the institutional channel at this point?

Okay. Thank you and just maybe turning to retail equities.

It's good it's not a great environment for retail investors.

Investors are making money in equity is they're putting more money in their brokerage accounts.

But active equities remained in outflows.

Are there next priorities on the institutional side or do you feel that Janus has sort of appropriately position in the institutional channel at this point.

And the structure it is out of favor.

He is solution.

Outflows in your retail equity business.

You're successfully thing around the core.

Hey, Ken It's Ali Thanks for the question.

Ali Dibadj: Hey, Kenneth. Ali, thanks for the question. You're right. We're pleased with the three consecutive quarters of institutional net flows. Again, this quarter, about $49 billion of net flows in the quarter, of which 46.5 is from the Guardian general account. We're also pleased, by the way, that the 46.5 from Guardian is better than the 45 billion that we anticipated earlier on, which again is a symbol of their growth. We've been excited to partner with them. We've seen their growth, and we hope that their growth can continue. We also saw flows excluding the Guardian general account in institutional quite broadly across equities and fixed income. That was across corporates, across pensions, across insurance. And even if you disaggregate that a little bit further, there were 10 fundings of greater than $100 million in the institutional side of things. So it feels like we're broadening.

Youre right, where we're pleased with the three consecutive quarters of institutional net flows again this quarter.

But this part of the core seems to be sort of in persistent redemptions.

Is there an eventual fix here or is it something that we should just learned to live with.

About $49 billion of net flows in the quarter of which four six and a half is from the Guardian General account.

Turning our attention to the success you're having.

We're also pleased by the way that the <unk> 46, and a half from Guardian is better than a 45 billion that we anticipated earlier on.

Or around the sort of core part of the franchise.

As a symbol of their growth and we've been excited to partner with them, we've seen that growth and we hope that their growth curve.

We believe very strongly and our equities franchise and franchises around the world.

Dan can continue.

And we very much put that into our execution of our strategy. So if you remember our strategy. It starts first and foremost with protecting and growing our core businesses.

We also saw flows excellent regarding general account and institutional quite broadly across equities and fixed income.

Those are just proportionately the equity franchises that we have in whatever vehicle that may be in.

That was across corporates across pensions across insurance and even if you disaggregate that a little bit further there were 10 fundings of greater than $100 million and institutional side of things. So.

In actually in the intermediary channel and so our focus is very much first and foremost protecting growing before we amplify and diversifying.

It feels like we're broadening it feels like we are getting in the on the radar screen of these institutional players.

Ali Dibadj: It feels like we are getting on the radar screen of these institutional players, and it feels like, again, the leading indicators in terms of meetings and everything are looking pretty good. We're not there yet in my mind, perhaps subtext to your question, Ken, to say that we are always going to deliver positive flow from institutional and we have a sustainable outcome, but it certainly feels like we're on the right track. Part of what we're doing, obviously, with this branding campaign is to make sure that people put us in their consideration set, and that is both the client on the institutional side as well as the consultant with whom we're building closer and closer relationships with, with whom we're really putting into play, as we mentioned in the prepared remarks, the much more aligned and partnership mindset that we have to bear.

We do believe very much as you described it can that there is a very strong interest right now in active equities active investing more broadly, but active equities of the world is a very complex place of the second quarter was an example of that I'm not just in a three week period, but beyond that and that's probably going to persist.

And it feels like again, the leading indicators in terms of meetings and everything are are looking pretty good.

We're not there yet in my mind, perhaps subtext of your question Ken to say that we are always going to deliver positive flow from institutional and we have a sustainable outcome, but it certainly feels like we're on the right track part of what we're doing obviously with this branding campaign is to make sure that people put us in their consideration set and that is both.

The cost of capital is much higher so good companies bad companies will deliver differential performance.

Certainly certainly.

There are lots of them.

Dispersion in stock just from a driver's and thematic areas like health care like innovation more broadly in technology and other places and we believe very strongly in our track record shows it frankly over 91 years, but certainly over the next over the past 135 10 years you see at our track record shows that we can actually deliver alpha.

The client nutritional side as well as the consultants with whom we are building closer and closer relationships with with whom we're really putting into play as we mentioned in the prepared remarks, the much more aligned and partnership mindset that we have to bear. So we're clearly broadening ourselves we're pleased with the outcome. So far we certainly have more to go.

Ali Dibadj: So we're clearly broadening ourselves. We're pleased with the outcome so far. We certainly have more to go, but the pace is picking up here and we feel okay.

For our client base through equities and of course elsewhere in our business. So so we look first and foremost to gain market share and we do that by delivering outstanding investment performance with the fantastic equities. For example investment teams that we have but even beyond that to your point of fixed income and in our alternatives business as we grow that as well.

But the the.

The pace is picking up here and we feel okay.

Okay. Thank you.

Ken Worthington: Okay, thank you. And just maybe turning to retail equities, it's a good, if not a great environment for retail. Investors are making money in equities. They're putting more money in their brokerage accounts, but active equities remain in outflows, and the structure is out of favor. See a solution to the persistent outflows in your retail equity business. You're successfully putting around the core, but this part of the core seems to be sort of in persistent redemptions. Is there an eventual fix here, or is it something that we should just learn to live with and turn our attention to the success you're having around this sort of core part of the franchise?

Maybe turning to retail equities.

It's good it's not a great environment for retail investors.

Investors are making money in equity is they're putting more money in their brokerage accounts.

Okay, great. Thank you can you add to that.

But active equities remained in outflows.

Ken if I can just add to that.

We have we have 62 strategies that are now over $1 billion.

And the structure it is out of favor.

See a solution.

And within that there was a lot of equity.

Outflows in your retail equity business.

There are six or seven.

You're successfully thing around the core.

All positive in Q2, so we've shown that we can do that and they are both really existing strategies U S concentrated growth U S mid cap growth global equity.

But this part of the core seems to be sort of in persistent redemptions.

Is there an eventual fix here or is it something that we should just learned to live with.

National Alpha as well as new things and we talked last time about global small cap and another $170 million so up through up through $1 billion of global small cap as well. So it's both see existing products. Yes, we believe given the performance, we've got and that client relationship, but I always been talking about we can grow in.

Let's turn our attention to the success you're having.

Or around the sort of core part of the franchise.

We believe very strongly and our equities franchise and franchises around the world.

Ali Dibadj: We believe very strongly in our equities franchise and franchises around the world, and we very much have put that into our execution of our strategy. So if you remember our strategy, it starts first and foremost with protecting and growing our core businesses. Those are disproportionately the equity franchises that we have in whatever vehicle that may be in, particularly in the intermediary channel. So our focus is very much first and foremost protecting and growing before we amplify and diversify. We do believe very much, as you described it, Ken, that there is a very strong interest right now in active equities, active investing more broadly, but active equities. The world is a very complex place. The second quarter was an example of that, not just in a three-week period, but beyond that, and that's probably going to persist.

What is a tough environment you're right.

And we very much would put that into our execution of our strategy. So if you remember our strategy. It starts first and foremost with protecting and growing our core businesses.

But also developing things that are specific from from trying to send us a lot of global small cap that we've delivered.

<unk> built out over the last few years, but now is $1 billion in itself.

Those are just proportionately the equity franchises that we have in whatever vehicle that may be in.

Great. Thank you Roger Thank you Ali.

Okay.

In ethylene in the intermediary channel so.

The next question comes from Bill Katz of TD Securities. Your line is now open. Please go ahead.

Our focus is very much first and foremost protecting growing before we amplify and diversify.

Okay.

We do believe very much as you described it can that there is a very strong interest right now in active equities active investing more broadly but active equities.

Yeah.

Good morning, Robert.

Uh huh.

At the moment.

Hi.

Okay.

Right.

The World is a very complex place. The second quarter was an example of that and not just in a three week period, but beyond that and that's probably going to persist.

Right.

Are any of them.

That's fine.

Ali Dibadj: The cost of capital is much higher, so good companies and bad companies will deliver differential performance. And certainly, there are lots of kind of dispersion in stock just from drivers and thematic areas like healthcare, like innovation, more broadly in technology and other places. And we believe very strongly, and our track record shows it, frankly, over 91 years, but certainly over the next over the past one, three, five, ten years, you see it. Our track record shows that we can actually deliver alpha for our client base through equities and, of course, elsewhere in our business. So we look first and foremost to gain market share, and we do that by delivering outstanding investment performance with the fantastic equities, for example, investment teams that we have, but even beyond that, to your point of fixed income and in alternatives business as we grow that as well.

Cost of capital is much higher so good companies and bad companies will deliver differential performance in.

Sure. Thanks for the question, you're a little muffled, but I think the question was about jobs.

And certainly certainly there are lots of.

Okay.

Great example, jobs is a great example.

Kind of dispersion in stock just from drivers and thematic areas like health care like innovation more broadly in technology.

The client led innovation that we are creating here now in Janus Henderson.

We're just starting to do this more and more as we build them.

Other places and we believe very strongly in our track record shows it frankly over 91 years, but certainly over the next over the past 135 10 years you see at our track record shows that we can actually deliver alpha for our client base through equities and of course elsewhere in our business. So so we look first and foremost to gain market share and we do that.

Our attempt to build the asset management company.

The future for client needs of the future.

So.

There is a clear need that we had heard.

From our clients around short duration high quality fixed rate securitize assets.

By delivering outstanding investment performance with the Fantastic Equities for example investment teams that we have but even beyond that youre applying a fixed income and in our alternatives business as we grow that as well.

Amherst to complement as you're describing the J AAA and other <unk>.

TFS that we have in the active fixed income area.

Replace floating rate and and we heard that need among a broad range of clients, but particularly around insurance clients like Guardian.

Okay. Great. Thank you can you add to that Ken if I can just add to that we have.

Ken Worthington: Okay, great. Thank you.

Roger Thompson: I'll just add to that. Ken, if I can just add to that, you know we have 62 strategies that are now over a billion dollars. And within that, you know there is a lot of equity. And there are six or seven that are positive in Q2. So you know we've shown that we can do that, and they're both really existing strategies: US concentrated growth, US mid-cap growth, global equity, international alpha, as well as new things. And we talked last time about global small cap, you know another $170 million, so up through a billion dollars of global small cap as well.

We have 62 strategies that are now over $1 billion.

With this partnership that we have with Guardian, which as I mentioned before is going extraordinarily well.

And within that there was a lot of equity.

As well or better than we had planned and we made quick work of that given their $400 million commitment to see things that are right for their general account.

And there are six or seven but all positive in Q2. So we've shown that we can do that and they are both really existing strategies U S concentrated growth U S mid cap growth global equity International Alpha.

They exceeded $100 million for jobs.

And we now have that in the market as of the other day and we have quite high aspirations for that business.

There's new things and we talked last time about global small cap and another $170 million, so up through up through $1 billion of global small cap as well. So it's both see existing products. Yes, we believe given the performance we've got that client relationship, but I always been talking about we can grow.

I remember.

Roger Thompson: So it's both the existing products that, yes, we believe, given the performance we've got and that client relationship that Ali's been talking about, we can grow in what is a tough environment, you're right, but also developing things that are specific from JANUS HENDERSON, like global small cap that we've built out over the last few years that now is a billion dollars in itself.

Everyone talks about Jacob play and certainly takes a lot of the headlines will be a for Etfs in Q2 that are above a $1 billion were second globally in active fixed income Etfs.

In what is a tough environment, you're right, but also developing things that are specific from from Janus Henderson global small cap that we've delivered.

Globally in any active ETF period around the world. So we do have high aspirations for jazz because again, we're bringing client led innovation to deliver for.

Built out over the last few years, but that was $1 billion in itself.

Our clients' needs and our skill sets.

Great. Thank you Roger Thank you Ali.

Ken Worthington: Great. Thank you, Roger. Thank you, Ali.

Yeah.

Okay.

The next question comes from Bill Katz of TD Securities. Your line is now open. Please go ahead.

Lucy: The next question comes from Bill Katz of TD Securities. Bill, your line is now open. Please go ahead.

Thank you and then as a follow up on investment performance could you speak to what's driving the strong improvement in investment performance and how that performance might be translating to sales or maybe some of the leading indicators in the pipeline that you mentioned previously.

Good morning, Robert.

Robin: Morning. This is Robin holding out for Bill Katz. I was wondering if you could take a moment to see how you see the investable market for the JANS ETF as for the products of JAAA, JDD, or any other types of ETF products you can find out in the pipeline?

Let me take a moment.

Hi.

Yeah, Hi, Bill, it's Roger Yeah were real.

Yeah.

Right.

Really pleased to see and we've we've we've had good consistent medium or long term investment performance for a long time and.

Right.

Are any of them.

Right.

Yeah.

The one year number was a little bit weaker last quarter. So it was really pleasing to see that bounce back so that you know.

Sure. Thanks for the question, you're a little muffled, but I think the question was about jobs.

Ali Dibadj: Sure. Thanks for the question. You're a little muffled, but I think the question was about JANS. Look, it's a great example. JANS is a great example of the client-led innovation that we are creating here now at JANUS HENDERSON. We're just starting to do this more and more as we build or attempt to build the asset management company of the future for client needs of the future. So there's a clear need that we had heard from our clients around short duration, high quality, fixed rate securitized assets, very much to complement, as you're describing, the JAAA and other ETFs that we have in the active fixed income area, JAAA's floating rate. And we heard that need among a broad range of clients, but particularly around insurance clients like Guardian.

Okay.

We now have at least 72% ahead of benchmark over all time periods.

Great example, jobs is a great example.

The client led innovation that we are creating here and now and Janice Anderson.

Morningstar courthouse, or a little bit stronger than that with.

So 88% ahead of the top two courthouse, what drove it was was a lot of Oh U S U S and global equity products. So.

We're just starting to do this more and more as we build.

Our attempt to build the asset management company of the future for client needs of the future.

So U S concentrated growth U S research.

So so there is a clear need that we had heard.

Mobile check in innovation U S grocery income global equity income.

From our clients around short duration high quality fixed rate securitize assets of Amyris to complement as youre, describing the J AAA and other Etfs.

S opportunistic alpha which were all slightly behind bench on the one year time period at the end of March a rule now above and in some cases quite strongly above.

Etfs that we have in the active fixed income area.

Benchmark.

Th replace floating rate.

Over one year.

And and we heard that need among a broad range of clients, but particularly around insurance clients like Guardian.

At the end of the second quarter I'm not just you know that that obviously just follows through into the into the three five and 10, but to a much more a dampened effect. It was that it was just that one year number was a little bit weaker at the end of March which we're really pleased snapped back too.

Ali Dibadj: So with this partnership that we have with Guardian, which, as I mentioned before, is going extraordinarily well, as well or better than we had planned, we made quick work of that. Given their $400 million commitment to seed things that are ripe for their general account, they seeded $100 million for JANS, and we now have that in the market as of the other day, and we have quite high aspirations for that business. Remember, you know everyone talks about JAAA and certainly takes a lot of the headlines, but we have four ETFs in Q2 that are above a billion dollars. We're second globally in active fixed income ETFs, eighth globally in any active ETF period around the world. So we do have high aspirations for JANS because, again, we're bringing client-led innovation to deliver for our client's needs and our skill sets.

So with this partnership that we have with Guardian, which as I mentioned before is going extraordinarily well.

Where we want it to be with with the.

As well or better than we had planned and we made quick work of that given their $400 million commitment to seed things that are right for their general account.

Consistently strong investment performance.

So you did $100 million for.

Thank you very much.

For jobs, and we now have that in the market as of the other day and we have quite high aspirations for that business.

Okay.

The next question comes from Dan Fannon of Jefferies. John Your line is now open. Please go ahead.

<unk>.

You know everyone talks about J AAA and certainly takes a lot of the headlines will give for Etfs in Q2 that are above a $1 billion were second globally in active fixed income Etfs.

Thanks, I guess, just sticking with performance looking at multi asset the performance on slide 25.

Really strong X basically one period over the last several it on a 135 10 year number but the flows just haven't been that consistent. So can you talk about the opportunities you see there given some of the performance, you're having that kind of asset class and where the appetite sits within that context.

Globally in any active ETF period around the world. So we do have high aspirations for jazz because again, we're bringing client led innovation to deliver for our.

Our client needs and our skill sets.

Sure Dan Thanks for the question I'll start and Roger can can chime in and out of as well.

Okay.

Robin: Thank you. And then as a follow-up on investment performance, could you speak to what's driving the strong improvement in investment performance and how that performance might be translating to sales or maybe some of the leading indicators in the pipeline that you mentioned previously?

So as you know that asset class as we reported is disproportionately related to the balanced fund that we have one of our largest most successful and most storied funds out there.

We do believe the time for balanced has come.

Roger Thompson: Yeah. Hi, Bill. It's Roger. Yeah, we were really pleased to see, and we've had good, consistent medium and long-term investment performance for a long time. And the one-year number was a little bit weaker last quarter, so it was really pleasing to see that bounce back so that we now have at least 72% ahead of benchmark overall time periods, and the Morningstar quartiles are a little bit stronger than that with up to 88% ahead of or in the top two quartiles. What drove it was a lot of our US and global equity products.

Yeah, Hi, Bill it's Roger.

In a world of complexity and having to choose good come from bad company the equity sleeve.

Yeah, we were really pleased to see and we've we've we've had good consistent medium or long term investment performance for a long time and.

Balance delivered that in the performance there is very strong as you note. It has consistently done that for decades.

The one year number was a little bit weaker last quarter. So it was really pleasing to see that bounce back so that.

And at the same time fixed income actually has a year old now and there are two differentiation between a good security that security plays into into space. So.

We now have at least 72% ahead of benchmark over all time periods.

The Morningstar quartile, so a little bit stronger than that with.

You can actually with balanced.

So 88% ahead of the top two courthouse what drove it.

You are an investor have the ballast of fixed income and the yield of fixed income plus the growth of the equity sleeve to it. So we are big believers in.

Does.

A lot of our U.

U S U S and global equity products.

Roger Thompson: So US concentrated growth, US research, global tech and innovation, US growth income, global equity income, US opportunistic alpha, which were all slightly behind bench on the one-year time period at the end of March, are all now above, and in some cases, quite strongly above benchmark over one year at the end of the second quarter. And that just, you know, that obviously just followed through into the three, five, and ten, but to a much more dampened effect. So it was just that one-year number that was a little bit weaker at the end of March, which we're really pleased is now back to where we want it to be with consistently strong investment performance.

So U S concentrated growth U S research.

In and balanced the flows to your point have not been there at this point as much as we'd like to be in balance per se, but refining starting interest there starting interest there certainly in the U S. But we're finding in particular in Europe.

Global Tech and innovation U S grocery income global equity income.

S opportunistic alpha which were all slightly behind bench on the one year time period at the end of March a rule now above and in some cases quite strongly above.

And in Asia, and we're expecting to see a little bit more of an improvement on those numbers as well now multi asset I said is disproportionately that but it's not only that but in that sleeve is a lot of solutions as well and we're really picking up the pace on growth from our solutions business as well. So this is where clients want outcomes.

Benchmark.

Over one year.

At the end of the second quarter and not just you know that that obviously just follows through into the into the three five and 10, but to a much more a dampened effect. It was that it was just that one year number there was a little bit weaker at the end of March which we're really pleased it's now back to.

Where we want it to be with with the.

Clients want things are more sophisticated I'll give you a few examples we do a lot of work with large sovereign wealth funds and what we call. The adaptive strategy. So that's someplace, where we go in and they want to use signals to understand when those regime change in the markets and so they can adjust their asset allocation. That's been quite successful recently. So again. These are these are areas with MLP asset that number.

Consistently strong investment performance.

Robin: Thank you very much.

Thank you very much.

Okay.

The next question comes from Dan Fannon of Jefferies. Your line is now open. Please go ahead.

Lucy: The next question comes from Dan Fannon of Jefferies. Dan, your line is now open. Please go ahead.

One our well established like balanced, which we think are coming into people's focus areas and number two areas, where we're growing so call that protect and grow in the areas that we're growing where we have extraordinary strong skill sets.

Robin: Thanks. I guess just sticking with performance, you know, looking at multi-asset, you know, the performance on, you know, slide 25, it looks really strong. It's basically one period over the last several, you know, on a one, three, five, ten-year number, but the flows just haven't been that consistent. So can you talk about the opportunities you see there, given some of the performance you have in that, you know, kind of asset class and where the appetite sits within that context?

Thanks, I guess, just sticking with performance looking at multi asset the performance on slide 25, it looks really strong X basically one period over the last several.

That we want to amplify and bring to them. So we would expect improved over time not overnight growth in that in that segment, but again as you point out it all has to be based on performance, which gladly is well established.

On a 135 10 year number but the flows just haven't been that consistent. So can you talk about the opportunities you see there given some of the performance, you're having that kind of asset class and where the appetite sits within that context.

It's just adding to that that's helpful and then.

Sure Dan Thanks for the question I'll start and Roger can can chime in and edit as well.

Ali Dibadj: Sure, Dan. Thanks for the question. I'll start, and Roger can chime in and edit as well. So, as you know, that asset class, as we reported, is disproportionately related to the balanced fund that we have, one of our largest, most successful, most storied funds out there. We do believe the time for balanced has come. In a world of complexity and having to choose good company from bad company, the equity sleeve of balanced delivers that, and the performance there is very, very strong, as you note. It has consistently done that for decades. And at the same time, fixed income actually has a yield now, and there, too, differentiation between a good security and a bad security plays into the space.

Sorry, sorry, I was actually just out to it a little bit balanced as a $49 billion fund.

So as you know that asset class as we reported is disproportionately related to the balanced fund that we have one of our largest most successful and most storied funds out there.

We sell around the world, particularly in the U S across the across a multitude of.

It's different client areas.

Direct book into <unk>.

<unk> book.

We do believe the time for balanced has come.

Well as an institutional we also sell it around the world.

In a world of complexity and having to choose good come from bad company the equity sleeve.

And there are new opportunities for us there as well so we're pretty excited about it about a new launch that we've got to balance in the second half of this year.

<unk> delivers that in our performance there is very strong as you note. It has consistently done that for decades.

So yes, it's an outflow of about 2% if you look at it of outflow in the second quarter.

And at the same time fixed income actually has a year old now and there are two differentiation between a good security about security plays into into the space. So you can actually with balanced.

But we've got a lot of a lot of plans for that and then as Ali said.

Plans outside of balanced in the multi asset channel with things like adaptive.

Ali Dibadj: So you can actually, with balanced, if you are an investor, have the ballast of fixed income and the yield of fixed income plus the growth of the equity sleeve to it. So we are big believers in balanced. The flows, to your point, have not been there at this point as much as we'd like it to be in balanced per se, but we're finding starting interest there, starting interest there, certainly in the US, but we're finding it in particular in Europe and in Asia, and we're expecting to see a little bit more of an improvement on those numbers as well. Now, multi-asset, I said, is disproportionately that, but it's not only that. In that sleeve is a lot of solutions as well, and we're really picking up the pace on growth from a solutions business as well. So this is where clients want outcomes.

You are an investor have the ballast of fixed income and the yield of fixed income plus the growth of the equity sleeve to it. So we are big believers in and balanced the flows to your point have not been there at this point as much as we'd like it to be in balance per se, but refining starting <unk>.

Great I guess, then just to follow up on that the plans more institutional SMA driven I guess when you talk about offshoots of it is that.

What is that one of the versions that are coming.

That's all.

Yes.

They're going on.

Thanks Roger.

Interest there starting interest there certainly in the U S. But we're finding in particular in Europe.

On the balance side, it's just firstly on the intermediary side at this point from the solutions element I E things like adaptive that's more an SMA form or overlaying form for institutional.

And in Asia, and we're expecting to see a little bit more of an improvement on those numbers as well now multi asset I said is disproportionately that but it is not only that and in that sleeve is a lot of solutions as well and we're really picking up the pace on growth from our solutions business as well. So this is where clients want out.

Got it and then just just as a follow up here Roger just in terms of.

The expense guidance and the outlook.

Knowing that performance fees are very hard with I'm sorry.

Okay.

The frame for what you're assuming for the comp ratio guidance for performance fees, this year or potentially how where you sit today with performance fee eligible AUM versus a year ago, and how you potentially you could bracket the second half opportunity.

Ali Dibadj: Clients want things that are more sophisticated. I'll give you a few examples. We do a lot of work with large sovereign wealth funds in what we call the adaptive strategy. So that's someplace where we go in, and they want to use signals to understand when there's regime change in the markets, and so they can adjust their asset allocation. That's been quite successful recently. So again, these are areas within multi-asset that, number one, are well established, like balanced, which we think are coming into people's focus areas, and number two, areas where we're growing. So call that protect and grow, and then areas that we're growing where we have extraordinarily strong skill sets that we want to amplify and bring to them. So we would expect improved over time, not overnight, growth in that segment.

<unk> clients want things are more sophisticated and I'll give you a few examples we do a lot of work with large sovereign wealth funds and what we call. The adaptive strategy. So that's someplace, where we go in and they want to use signals to understand when those regime changed the market and so they can adjust their asset allocation. That's been quite successful recently. So again. These are these are areas with MLP asset.

Yes, Thanks, Dan.

That number one our well established like balanced, which we think are coming into people's focus areas and number two areas, where we're growing so call that protect and grow in the areas that we're growing where we have extraordinary strong skill sets.

It's too early to predict performance fees for the second half of the year, we have a little bit in Q3, but the vast majority of our segregated accounts all Q4, and there's obviously still a long way to go in terms of the amount of of assets eligible for performance fees.

That we want to amplify and bring to them. So we would expect improved over time not overnight growth in that in that segment, but again as you pointed out it all has to be based on performance, which gladly is well established.

Pretty broadly similar to where we were this time last year second half of last year. We had some very strong performance fees as you as you will remember from our biotech innovation fund.

Ali Dibadj: But again, as you point out, it all has to be based on performance, which gladly is well established.

Roger Thompson: Yeah, just adding to that a little bit.

Just adding to that that's helpful. And then Oh, sorry, sorry that was it just adds to it a little bit balanced as a $49 billion fund.

Robin: That's helpful. And then, oh, go ahead.

Yeah, that's a little bit behind as we sit here today, so we're unlikely to see those.

Roger Thompson: Sorry. I was just going to just add to it a little bit. Balanced is a $49 billion fund. We sell around the world, particularly in the US, across a multitude of different client areas, like direct book, intermediary book, as well as in institutional. We also sell it around the world, and there are new opportunities for us there as well. So we're pretty excited about a new launch that we've got for balanced in the second half of this year. So yes, it's in outflow for about 2%, if you look at it, of outflow in the second quarter, but we've got a lot of plans for that. And then, as Ali said, there are plans outside of balanced in the multi-asset channel with things like adaptive.

Those numbers can move very strongly very quickly.

We sell around the world, particularly in the U S across the across a multitude of.

It does yes.

Predicting today, you have to take the lower number there, but we're seeing some other stronger numbers. So.

It's different client areas.

Alright book to redo your book as well as in institutional.

Yeah.

Blend of things that come in there that leads into a compressed show we've got it to a comp ratio of AR.

We also send it around the world.

Yeah, and there are new opportunities for us there as well so we're pretty excited about it about a new launch that we felt were balanced in the second half of this year.

<unk>, 43% to 44%.

And that includes some performance fees in the second half.

So yes, it's an outflow of about 2% if you look at it of outflow in the second quarter.

Thank you.

As a reminder to ask a question. Please press star followed by one on your telephone keypad now.

But we've got a lot of a lot of plans for that and then as Ali said.

The next question comes from John Dunn of ethical John Your line is now open. Please go ahead.

Outside of balance to the multi asset channel with things like that.

Robin: Great. I guess then just to follow up on that, is the plan more institutional SMA driven? I guess when you talk about offshoots of it, is that what are the versions that are coming?

Great and I guess, then just to follow up on that the plans more institutional SMA driven I guess, when you're talking about offshoots of it is that.

Thank you.

You talked about your reputation improving for intermediate intermediary overseas, maybe could you just give us a.

What is that one of the versions that are coming.

Kind of some color on the different regions and what.

Strategies and vehicles.

So that is about.

Ali Dibadj: So it's all multi-asset on the.

The asset.

Are in demand and maybe just outlook for the back half of the year.

Ali Dibadj: Go ahead, Ali.

They're going on.

Ali Dibadj: Thanks, Roger. So on the balanced side, it's disproportionately on the intermediary side at this point. For on the solutions element, i.e., things like adaptive, that's more in SMA form or overlay form for institutional.

Thanks Roger.

On the balance side, it's just firstly on the intermediary side at this point from the solutions element I E things like adaptive that's more an SMA form or overlaying form for institutional.

Oh sure so.

Look as you anticipate John we don't give outlook from a flow perspective, because there's so many things that could change.

Hi.

On in the World.

Robin: Got it. And then just as a follow-up here, Roger, just in terms of the expense guidance and the outlook, knowing that performance fees are very hard to predict, I was hoping you could kind of maybe set the frame for what you're assuming for the comp ratio guidance for performance fees this year or potentially how where you sit today with performance fee eligible AUM versus a year ago and how you potentially could bracket the second half opportunity.

Got it and then just just as a follow up here Roger just in terms of.

We're only going to control, we can control, but to your point, we feel like we're controlling what we control from a delivery of investment performance perspective, you see the numbers, that's quite attractive obviously to a client.

The expense guidance and the outlook.

Knowing that performance fees are very hard to predict.

I was hoping you could kind of.

We're controlling what we can control from a client service perspective, as well that includes different vehicles and we'll talk about that.

And as well as we're controlling weed control from delivering infrastructure that delivers on our clients' expectations of legal compliance technology operations, everybody that works here and pulls all of that together for them. So so we're really very focused on delivering on that point.

Roger Thompson: Yeah, thanks, Dan. It's too early to predict performance fees for the second half of the year. We have a little bit in Q3, but the vast majority of our segregated accounts are Q4, and there's obviously still a long way to go. In terms of the amount of assets eligible for performance fees, that's probably broadly similar to where we were this time last year. Second half of last year, we had some very strong performance fees, as you will remember from our biotech innovation fund. That's a little bit behind as we sit here today, so we're unlikely to see those, although those numbers can move very strongly, very quickly. But as you're predicting today, you predict a lower number there, but we're seeing some other stronger numbers. So there's a blend of things that come in there. That leads into a comp ratio.

Yes, Thanks, Dan.

We're having conversations that I would posit, we've never really had before with intermediary clients around the world.

I'd argue.

We are well established obviously in the U S. Although there too we continue to grow and develop in eight consecutive quarters of U S. Intermediary growth would suggest we have a lot more room to go but youre starting to see as we've talked before the lifting and shifting of the way we sell the way we build relationships with intermediary clients actually applying outside of the U S as well so.

Second half of last year, we had some very strong performance fees as you as you will remember from our biotech innovation fund.

Yeah, that's a little bit behind as we sit here today, so we're unlikely to see those.

If you think of EMEA.

Those numbers can move very strongly very quickly.

The UK for a second if you exclude if you talk about EMEA, we're seeing a lot of interesting opportunities and growth. There that are developing intermediary usually starts out slow and then starts to grow but we're getting preferred mandates quote unquote on a lot of intermediary platforms, where we never have had those before in EMEA.

But as you know as you're.

Predicting today, you have to take the lower number there, but we're seeing some other stronger numbers. So.

Yeah.

Blend of things that come in there that leads into a comprised show we've got it to a comp ratio of <unk>.

Roger Thompson: We've guided to a comp ratio of 43 to 44%, and that includes some performance fees in the second half.

<unk>, 43% to 44%.

Now that's continental Europe, but it's also in the Middle East where the wealth channel as you know is burgeoning quite quite strongly.

And that includes some performance fees in the second half.

You know we have a big business in the middle East on the institutional side, that's been translating reputation linked to the intermediary side as well on the private wealth channel that as I mentioned is just nascent and growing there and of course in Asia broadly that includes in Japan, where we're signing up new clients just over the past few months, we sign up new clients that we've never served before in Japan.

Robin: Thank you.

Thank you.

As a reminder to ask a question. Please press star followed by one on your telephone keypad now.

Lucy: As a reminder, to ask a question, please press star followed by one on your telephone keypad now. The next question comes from John Dunn of Evercore. John, your line is now open. Please go ahead.

The next question comes from John Dunn of ethical John Your line is now open. Please go ahead.

Ken Worthington: Thank you. You talked about your reputation improving for intermediary overseas. Maybe could you just give us kind of some color on the different regions and what strategies and vehicles are in demand and maybe just the outlook for the back half of the year?

Thank you you talked about your reputation improving for intermediate intermediary overseas, maybe you could you just give us.

Asia, Hong Kong, Singapore, and other areas in Asia, where for the first time, having conversations and launching products with those intermediary partners there.

Kind of some color on the different regions and what.

Strategies and vehicles.

And same thing in Australia, where we have been present for a number of years and we certainly look to grow with consultants support theres, a little bit different in the Australian market with consultant support and partnership and then grow so we feel like we're making strides.

Are in demand and maybe just the outlook for the back half of the year.

Sure so.

Ali Dibadj: Sure. So look, as you'd anticipate, John, we don't give outlook from a flow perspective because there's so many things that could change in the world, and we're only going to control what we can control. But to your point, we feel like we're controlling what we control from a delivery of investment performance perspective. You see the numbers. That's quite attractive, obviously, to a client. We're controlling what we control from a client service perspective as well. That includes different vehicles, and we'll talk about that. And as well as we're controlling what we control from delivering an infrastructure that delivers on client expectations, so legal compliance, technology operations, everybody that works here and pulls all that together for them. So we're going to be very focused on delivering on that.

Look as you'd anticipate John we don't give outlook from a flow perspective, because there's so many things that could change.

I will let you know that we don't feel like we're there yet in the U K.

Hi.

If you think about our overall intermediary business. If you look at APAC, plus North America, plus EMEA ex UK.

In the World and we're only getting control, we can control, but to your point, we feel like we're controlling what we control from a delivery of investment performance perspective, you see the numbers, that's quite attractive biopsy to a client.

That would have been a much better result from a growth perspective, if you an intermediary if you layer in UK plead investment trusts in the U K area.

We're controlling what we can control from a client service perspective, as well that includes different vehicles and we'll talk about that.

What takes us negative so we have more work to do we're not firing all cylinders, but to your question with feeling that our reputation our brand our performance. The support teams from our client service and broader perspective is certainly, allowing us to have conversations and grow businesses in areas and with acceleration we've never seen before.

And as well as we're controlling weed control from delivering infrastructure that delivers on our clients' expectations of legal compliance technology operations, everybody that works here and pulls all of that together for them. So it's going to be very focused on delivering on that to your point.

Ali Dibadj: To your point, we're having conversations that I would posit we've never really had before with intermediary clients around the world. I would argue we're well established, obviously, in the US, although there, too, we continue to grow and develop, and eight consecutive quarters of US intermediary growth would suggest we have a lot more room to go. But you're starting to see, as we've talked before, the lifting and shifting of the way we sell, the way we build relationships with intermediary clients actually applying outside of the US as well. So if you think of EMEA, exclude the UK for a second. If you talk about EMEA, we're seeing a lot of interesting opportunities and growth there that are developing intermediaries.

We're having conversations that I would posit, we've never really had before with intermediary clients around the world.

Got it and then.

You alluded to.

Institutional investors like insurers using Etfs, it seems like Youre seeing that users utilization increase.

I'd argue.

How are they using them like in motor.

Maybe some idea of the types of strategies. They are gravitating to and is it is that just limited to insurance companies.

Yeah. So it's a great question. It is not just limited to insurance companies, but let me disaggregate that a little bit and Roger.

If you think of EMEA.

Can can chime in as well.

Exclude the UK for a second if you talk about EMEA, we're seeing a lot of interesting opportunities and growth. There that are developing intermediary usually starts out slow and then starts to grow but we're getting preferred mandates quote unquote on a lot of intermediary platforms, where we never have had those before in EMEA.

What we found in our ETF business, which is still predominantly a fixed income active ETF business in the U S is that there were a few trendsetters I guess, so to speak and institutional side and in fact, one of our large etfs was seeded by a large state pension plan.

Ali Dibadj: It usually starts off slow and then starts to grow, but we're getting "preferred mandates," quote unquote, on a lot of intermediary platforms where we never have had those before in EMEA. Now, that's continental Europe, but that's also in the Middle East, where the Wealth Channel, as you know, is burgeoning quite strongly. You know we have a big business in the Middle East on the institutional side that's been translating reputationally to the intermediary side as well. We're on the private wealth channel that, as I mentioned, is just nascent and growing there. And of course, in Asia broadly, that includes in Japan, where we're signing up new clients. Just over the past few months, we've signed up new clients that we've never served before in Japan, in Asia, so Hong Kong, Singapore, other areas in Asia.

Now that's continental Europe, but it's also in the Middle East where the wealth channel as you know is burning quite quite strongly.

And that then evolved to go into.

Who are looking at securitize as an example to put on their platforms and get institutional quality.

You know we have a big business in the middle East on the institutional side, that's been translating reputation to the intermediary side as well on the private wealth channel that as I mentioned is just nascent and growing there and of course in Asia broadly that includes in Japan, where we're signing up new clients just over the past few months, we sign up new clients that we've never served before in Japan.

Security selection in the securitized world to their clients than wire houses start to take it onboard and then models start to took it take it onboard Berkeley in the intermediary side of things and then institutions more broadly start to pick this up because what they were saying to themselves as.

In Asia, our Hong Kong, Singapore other areas in Asia, where for the first time, having conversations and launching products with those intermediary partners there.

Gosh, I'm big but your ETF had yes now for them over a billion dollars have liquidity.

Ali Dibadj: We're, for the first time, having conversations and launching products with those intermediary partners there. And same thing in Australia, where we've been present for a number of years, and we certainly look to grow with consultant support there. It's a little bit different in the Australian market with consultant support and partnership and then grow. So we feel like we're making strides. I will let you know that we don't feel like we're there yet in the UK. If you think about our overall intermediary business, if you look at APAC plus North America plus EMEA x UK, that would have been a much better result from a growth perspective. On intermediary, if you layer in UK, particularly the investment trust in the UK area, that's what takes us negative. So we have more work to do. We're not firing all cylinders.

And they're at a cheaper price than if I were to go into some other means of delivering this return stream. So it's that institutional and really take off and thats, mainly in the U S. In the past couple of years on Etfs again, they are in all of the Etfs from our fixed income segment that you would see but disproportionally. If your insurance you are more on the.

And the same thing in Australia, where we have been present for a number of years and we certainly look to grow with consultants support theres, a little bit different in the Australian market with consultant support and partnership and then grow so we feel like we're making strides I will let you know that we don't feel like we're there yet in the U K.

The AAA kind of investment grade stuff.

If you think about our overall intermediary business. If you look at APAC, plus North America, plus EMEA ex UK.

If you're less insurance and you're more on the kind of pension plans or what have you want higher returns you might go to the triple BS in other areas of our of our portfolio and that's in the U S and in the rest of the world.

That would have been a much better results from a growth perspective, if you an intermediary if you layer in our U K investment trusts in the U K area.

The disproportionate users of our Etfs I remember the Teva acquisition that we brought on board.

What takes us negative so we have more work to do we're not firing all cylinders, but to your question, we're feeling that our reputation our brand our performance the support teams from our client service and broader perspective is certainly, allowing us to have conversations and grow businesses in areas and with acceleration we've never seen before.

Ali Dibadj: But your question was feeling that our reputation, our brand, our performance, the support teams from a client service and broader perspective is certainly allowing us to have conversations and grow businesses in areas and with acceleration we've never seen before.

Thats round about eight or $900 million right now global Etfs that we have including everywhere non U S. Disproportionately that's already in the institutional channels. So institutions are already using that to get return streams at the Etfs described we have AAA <unk> in Europe for example.

Okay.

Got it and then.

Ken Worthington: Got it. And then you alluded to institutional investors like insurers using ETFs. It seems like you're seeing that utilization increase. How are they using them? And what are maybe some of the other types of strategies they're gravitating to? And is that just limited to insurance companies?

You alluded to.

<unk> that are being used by pension plans.

To show investors like insurers using Etfs, it seems like Youre seeing that use utilization increase.

<unk> companies as well so you are seeing.

Institutional players catch on in the U S, but be leaders I'd say outside the U S, particularly in Continental Europe, Roger is there more to add there.

How are they using them like what are we.

Maybe some idea of the types of strategies. They are gravitating to and is it is that just limited to insurance companies.

Yes, I think again, it's just the threats, which I think is important you talked a lot about a bit there about the breadth of client types, which are which was jon's question I think the other thing is the breadth of Etfs.

Yeah. So it's a great question. It is not just limited to insurance companies, but let me disaggregate that a little bit and Roger can.

Ali Dibadj: So it's a great question. It is not just limited to insurance companies, but let me just aggregate that a little bit, and Roger can chime in as well. What we found in our ETF business, which is still predominantly a fixed income active ETF business in the US, is that there are a few trendsetters, I guess, so to speak, in the institutional side. In fact, one of our large ETFs was seeded by a large state pension plan. And that then evolved to go into RIAs, who are looking at Securitize as an example to put on their platforms and get institutional quality security selection in the Securitize world to their clients. Then wirehouses start to take it on board. Then models start to take it on board, particularly in the intermediary side of things.

Can can chime in as well.

Jay AAA takes that takes the the headlines.

At the end of June $23 billion.

ETF as of today, it's 23.

We have $34 billion of.

Of Etfs.

We've launched eight this year.

And that then evolved to go into our eyes are who are looking at securitize as an example to put on their platforms and get institutional quality.

And we've talked about diversifying.

Both in the U S and and as already mentioned with with tabular bromine use Etfs that we can sell in Europe and around the world now we've launched a number of things in Europe.

Security selection in the securitized world to their clients than wire houses start to take it on board and then models start to took it take it onboard Berkeley in the intermediary side of things and then institutions more broadly start to pick this up because what they were saying to themselves is gosh.

And it's still early days.

What's the now it's something like the Europeans.

AAA CLO <unk> zero.

Ali Dibadj: And then institutions more broadly start to pick this up because what they were saying to themselves is, gosh, I'm big, but your ETF has ETFs now for them over a billion dollars, have liquidity, and they're at a cheaper price than if I were to go to some other means of delivering this return stream. And so we saw institutional really take off, and that's mainly in the US in the past just a couple of years on ETFs. Again, they're in all the ETFs from a fixed income segment that you'd see, but disproportionately, if you're insurance, you're more on the AAA kind of investment grade stuff. If you're less insurance and you're more on the kind of pension plans or what have you, you want higher returns, you might go to the BBBs and other areas of our portfolio. Now, that's in the US.

Ah.

As a few hundred million dollars, but that's the fastest growing ETF of all of them so far.

Gosh, I'm big but your ETF had yes now for them over a billion dollars have liquidity.

I'm, not saying, we'll get to $23 billion immediately or perhaps ever but.

And they're at a cheaper price than if I were to go into some other means of delivering this return stream. So it's that institution really takeoff and thats, mainly in the U S. In the past couple of years on Etfs again, they are in all of the Etfs from our fixed income segment that you would see but disproportionately if your insurance youre more on that.

But we're really growing fast and we're seeing a lot of interest.

In Europe.

Uh huh.

And around the World and we will continue to launch things in the U S with things like jobs launching last week.

So yes, we're excited about about the interest there.

And there's a lot more to do.

Yeah.

AAA kind of investment grade stuff.

Thanks very much.

If you're less insurance and you're more on the kind of pension plans or what have you want higher returns you might go to the triple B as in other areas of our of our portfolio and that's in the U S and in the rest of the world.

The next question comes from Bill Katz of TD <unk> TD Securities. Your line is now open. Please go ahead.

Ali Dibadj: In the rest of the world, the disproportionate users of our ETFs, remember the Tabula acquisition that we brought on board, that's around about $800 or $900 million right now of global ETFs that we have, including everywhere non-US. But disproportionately, that's already in its institutional channels. So institutions are already using that to get return streams that the ETFs describe. We have AAA CLOs in Europe, for example, that are being used by pension plans, insurance companies as well. So you are seeing institutional players catch on in the US, but be leaders, I'd say, outside the US, particularly in continental Europe. Roger, is there more to add there?

Hi, This is robin holding on for Bill Katz, you, Dan and thank you for the follow up.

The disproportionate users of our Etfs I remember the tableau acquisition that we brought on board.

I wanted to ask if you could spend a moment on your <unk> strategy.

What type of clients are showing interest in these products and why are they interested in how do you see the strategy involved in with other products and client types going forward.

Hey, Robyn thanks for a jump back in on the follow up.

This is this is another example of us.

Return streams at the Etfs described we have AAA <unk> in Europe. For example that are being used by pension plans insurance companies as well. So you are seeing.

In client led in innovation.

And thinking about how we can be client led in the way, we deliver the asset management company.

The future.

And look into organization broadly and construct a financial technology as broadly as we call them. We want to be ahead of the vast majority of our peers and I think I think we are.

Institutional players catch on in the U S, but be leaders I'd say outside the U S, particularly in Continental Europe, Roger is there more to add there.

Roger Thompson: Yeah, I think, again, it's just the breadth, which I think is important. You talked a lot about a bit there about the breadth of client type, which was John's question. I think the other thing is the breadth of ETFs. JAAA takes the headlines at the end of June. It's a $23 billion ETF. As of today, it's $23. But we have $34 billion of ETFs. We've launched eight this year, and we've talked about diversifying both in the US and, as Ali mentioned, with Tabula bringing us its ETFs that we can sell in Europe and around the world. And we've launched a number of things in Europe, and it's still early days. But something like the European AAA CLO, what we call JCL Zero, is a few hundred million dollars, but that's the fastest growing ETF of all of them so far.

Yes, I think again, it's just the threats, which I think is important you talked a lot about a bit there about the breadth of client type, which at which was Jon's question I think the other thing is.

The main client base.

Core question, so far is on token.

Truly unchanged clients.

And we've seen that across the board. So if you think about the first token is fun that we did.

Breaths of Etfs J AAA takes it takes the the headlines.

Animal.

<unk> centrifuge took a nice treasury J T. R. S Y so Jay Treasury.

At the end of June 23 billion.

ETF as of today, it's 23.

That took in about $400 million in Q2 from Unchained clients for the most part most part for that want our folks who are sitting in stable coin and that's fine when there's no yield but when there is a yield they want to get some yield and not just sit and they're yielding.

We have $34 billion of.

Of Etfs, we've launched eight this year.

And we've talked about diversifying.

Both in the U S and and as already mentioned with with tabulate, bringing UCITS Etfs that we can sell in Europe and around the world now, where we've launched a number of things in Europe.

Product and so on chain token is <unk>, where they've gone in and that's the first one that we launched we then followed up with a token is version of J AAA.

And it's still early days.

And it was something like the European see AAA CLO two <unk> zero.

Thats with NY centrifuge and also growth.

Yeah.

As a few hundred million dollars, but that's the fastest growing ETF of all of them so far.

I don't know if people know grow but grow this part of the Sky ecosystem, which you may know better by the maker now brand as our old brand.

Roger Thompson: I'm not saying it'll get to $23 billion immediately or perhaps ever, but we're really growing fast, and we're seeing a lot of interest in Europe and around the world. And we'll continue to launch things in the US with things like JANS launching last week. So yeah, we're excited about the interest there, and there's a lot more to do.

I'm, not saying, we'll get to $23 billion immediately or perhaps ever.

But we're really growing fast and we're seeing a lot of interest.

And it's.

The owner of them or the manager I guess I should say of USDA, which is I think the second or third largest stable coin and so similarly.

In Europe.

Uh huh.

And around the World and we'll continue to launch things in the U S with things like jobs launching last week.

People weren't stable coin not getting all yield they could go to treasury and Jay AAA gives them another opportunity in a token is fully unchain manner to go there.

So yes, we're excited about about the interest there.

And there's a lot more to do.

Yeah.

Ken Worthington: Thanks very much.

Thanks very much.

So we're seeing again.

The next question comes from Bill Katz of TD <unk> TD Securities. Your line is now open. Please go ahead.

Lucy: The next question comes from Bill Katz of TD Securities. Bill, your line is now open. Please go ahead.

Nascent interest from folks outside of the purely on chain clients, but were in particular, we're seeing a lot of interest for folks who are sitting and stable client want better yields from those we will continue to evolve as our client base evolves and as our clients needs are there.

Hi, This is robin holding on for Bill Katz, you, Dan and thank you for the follow up.

Robin: Hi, this is Robin holding on for Bill Katz again, and thank you for the follow-up. We wanted to ask if you could spend a moment on your tokenized fund strategy. What type of clients are showing interest in these products, and why are they interested? And how do you see the strategy evolving with other products and client types going forward?

I wanted to ask if you could spend a moment on your <unk> strategy what type of clients are showing interest in these products and why are they interested in how do you see the strategy involved in with other products and client types going forward.

But again this is something that puts I think Janus Henderson ahead of the peer group in terms of being innovative thinking differently and delivering on our client need.

Ali Dibadj: Hey, Robin. Thanks for jumping back in on the follow-up. You know, this is another example of us being client-led in innovation and thinking about how we can be client-led in the way we deliver the asset management company of the future. And look, in tokenization broadly and disruptive financial technologies broadly, as we call them, we want to be ahead of the vast majority of our peers, and I think we are. The main client base to your core question so far is on token, purely on-chain clients, and we've seen that across the board. So if you think about the first tokenized fund that we did, it was with NMY and Centrifuge, Tokenized Treasury, JTRSY, so JTreasury. That took in about $400 million in Q2 from on-chain clients for the most part.

Hey, Robyn thanks for a jump back in on the follow up.

Thank you very much.

This is this is another example of us.

Yeah.

In client led in innovation.

They currently have nice other questions. So I'll hand back to Alex for any closing remarks.

And thinking about how we can be client led in the way, we deliver the asset management company.

Okay look thanks, Lucy thanks to all our listeners today of course, including our investors and analysts and also our many colleagues who I know are joining from Janus Henderson.

Of the future.

And look into organization broadly and construct a financial technology as broadly as we call them. We want to be ahead of the vast majority of our peers and I think I think we are.

Have all helped deliver another clear step forward this quarter in the transformation of Janus Henderson on behalf of our clients.

The main client base.

Core question, so far is on token.

Thank you all thank you all for listening and we'll talk to you next quarter.

Truly unchanged clients.

And we've seen that across the board. If you think about the first token I just found that we did.

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

As with animals centrifuge took a nice treasury J T. R. S Y So Jay Treasury.

Yeah.

[music].

That took in about $400 million in Q2 from an chain clients for the most part most part for that want our folks who are sitting in stable coin and that's fine when there's no yield but when there is a yield they want to get some yield and not just sit and youre yielding.

Ali Dibadj: Most part for that one are folks who were sitting in stablecoin, and you know that's fine when there's no yield, but when there is a yield, they want to get some yield and not just sit in zero yielding product. And so on-chain Tokenized, JTRSY is where they've gone, and that's the first one that we launched. We then followed up with a tokenized version of JAAA. That's with NMY, Centrifuge, and also Grove. I don't know if people know Grove, but Grove is part of the Sky ecosystem, which you may know better by the MakerDAO brand, that was their old brand. And it's the owner of, or the manager, I guess I should say, of USDS, which is, I think, the second or third largest stablecoin.

Yeah.

[music].

Product and so on chain token is J, Trs wise, where they've gone in and that's the first one that we launched we then followed up with a <unk> version of J AAA.

That's with and with centrifuges and also growth.

I don't know if people know grow the Grove is part of the Sky ecosystem, which you may know better by the maker now brand and that was our old brand.

And it's.

The owner of the manager I guess I should say of the USDA, which is I think the second or third largest stable coin and so similarly piece.

Ali Dibadj: And so similarly, people who were in stablecoin not getting a lot of yield, they could go to Treasury, and JAAA gives them another opportunity in a tokenized, fully on-chain manner to go there. So we're seeing, again, nascent interest from folks outside of the purely on-chain clients, but we're, in particular, seeing a lot of interest for folks who are sitting in stablecoin and want better yields from those. We will continue to evolve as our client base evolves and as our clients' needs are there. But again, this is something that puts, I think, JANUS HENDERSON ahead of the peer group in terms of being innovative, thinking differently, and delivering on a client need.

People weren't stable coin not getting on yield they could go to treasury and Jay AAA gives them another opportunity in a token is fully unchain manner to go there.

Okay.

[music].

So we're seeing again.

Nascent interest from folks outside of the purely on chain clients, but were in particular is seeing a lot of interest for folks who are sitting and stable client want better yields from those we will continue to evolve as our client base evolves and as our clients needs are there.

But again this is something that puts I think Janus Henderson ahead of the peer group in terms of being innovative thinking differently and delivering on our client need.

Okay.

Yes.

Yeah.

Okay.

Robin: Thank you very much.

Thank you very much.

Okay.

Lucy: We currently have no further questions, so I'll hand back to Ali for any closing remarks.

We currently have no further questions. So I'll hand back to Alex for any closing remarks.

Okay look thanks, Lucy thanks to all our listeners today of course, including our investors and analysts and also our many colleagues who I know are joining from Janus Henderson.

Ali Dibadj: Okay. Look, thanks, Lucy. Thanks to all our listeners today, of course, including our investors and analysts, and also our many colleagues who I know are joining from JANUS HENDERSON. You have all helped deliver another clear step forward this quarter in the transformation of JANUS HENDERSON on behalf of our clients. Thank you all. Thank you all for listening, and we'll talk to you next quarter.

Have all helped deliver another clear step forward this quarter in the transformation of Janus Henderson on behalf of our clients and thank you. All thank you all for listening and we'll talk to you next quarter.

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

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

[music].

Okay.

[music].

Yes.

[music].

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