Q3 2025 Janus Henderson Group PLC Earnings Call

Any background noise. 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 to.

Trying to send us and assume no obligation to update any forward looking statements made during the call.

Thank you. It is my pleasure to introduce Mr. Ali demolished Chief Executive Officer, Jonathan Bush.

Ali Dibadj: The offer will be evaluated by the special committee, and there is no assurance that any definitive agreement will result from the proposal or that any transaction will be consummated. Janus Henderson Group plc does not intend to comment further about the proposal unless and until it deems further disclosure is appropriate. In the interim, and as always, 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. As you can understand, our remarks on this call must be focused on the quarterly results and progress across the business. We ask that during Q&A, questions be limited to the business results. Now, turning to the quarterly results, where I'll start with some thoughts on the quarter before handing it over to Roger to run through the results in more detail.

You may begin your conference.

Welcome everyone and thank you for joining us today on Janus Henderson <unk> third quarter 2025 earnings call.

Ali the batter and I'm joined by our CFO Roger Thompson.

Before discussing the quarterly results I wanted to comment briefly on a non binding proposal submitted by triad of 26% shareholder of Janus Henderson and general catalysts of growth venture capital firm earlier. This week to acquire all outstanding ordinary shares with Janus Henderson that try and does not already own or control.

Board of directors has appointed a special committee, which will carefully consider the proposal.

The company appreciates the history of constructive engagement with Trian since they first disclosed their investment in Janus Henderson in October 2020.

We also appreciate the proposal desire for continuity for Janus Henderson as clients and other stakeholders.

Ali Dibadj: After Roger's comments, I'll provide an update on our progress in private markets and how we are meeting the evolving needs of our clients and their clients. We'll then take your questions on the quarterly results following our prepared remarks. Turning to slide two. Janus Henderson Group plc delivered another good set of quarterly results, building upon tangible momentum in the business. Results reflect a sixth consecutive quarter of positive net flows delivered by dedicated client groups, market gains, solid investment performance produced by world-class investment professionals, and the efforts and productivity from all operating and support areas. Longer-term investment performance is consistently solid, with over 60% of assets beating respective benchmarks on a 3, 5, and 10-year basis. Against peers, long-term investment performance is even stronger, with over 70% of AUM in the top two Morningstar quartiles across the 3, 5, 10-year time periods.

The offer will be evaluated by the special Committee and there is no assurance that any definitive agreement will result from the proposal was that any transaction will be consummated datacenter.

Janus Henderson does not intend to comment further about the proposal unless and until it deems further disclosure is appropriate.

In the interim and as always our focus continues to be helping clients to find and achieve superior financial outcomes and to deliver desired results for our clients shareholders employees and all our stakeholders.

As you can understand our remarks on this call must be focused on the quarterly results and progress across the business.

Ask that during Q&A questions be limited to the business results.

Now turning to the quarterly results I'll start with some thoughts on our quarter before handing it over to Roger to run through the results in more detail.

Roger's comments I'll provide an update on our progress in private markets and how we are meeting the evolving needs of our clients and their clients will then take your questions on our quarterly results following our prepared remarks.

Ali Dibadj: Assets under management of $483.8 billion increased 6% over the prior quarter, and compared to a year ago, AUM has increased 27%. September AUM is our highest quarterly figure ever, at nearly half a trillion dollars in AUM. Switching to flows, the third quarter marked our sixth consecutive quarter of positive net flows and represented a 7% organic growth rate. Positive net flow results demonstrate our truly global distribution footprint and the broad range of strategies and vehicles we offer. Moving to our financial results, which remain solid. Adjusted diluted EPS of $1.09 is 20% higher 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. On slide three, I want to provide an update on progress being made in the business.

Turning to slide two.

Janus Henderson delivered another good set of quarterly results building upon tangible momentum in the business.

Results reflect the sixth consecutive quarter of positive net flows delivered by a dedicated client groups market gains solid investment performance produced by World class investment professionals, and the efforts and productivity from all operating and support areas.

Longer term investment performance is consistently solid with over 60% of assets, beating respective benchmarks on a three five and 10 year basis against peers long term investment performance is even stronger with over 70% of.

The top two Morningstar courthouse across the three 510 year time periods.

Assets under management of $483 8 billion increased 6% over the prior quarter and compared to a year ago, a AUM has increased 27%.

Ali Dibadj: We continue to be in the execution phase of our strategic vision, which consists of three pillars: protect and grow our core businesses, amplify our strengths not fully leveraged, and diversify where clients give us the right to win. In protect and grow, we are actively upskilling and utilizing data, people, and process best practices across the organization to drive market share improvement and diversification of organic growth across regions and strategies. For example, in the third quarter, there were 21 strategies that each had at least $100 million of net inflows. This compares to 11 strategies just a year ago.

September AUM is our highest quarterly figure ever at nearly half a trillion dollars and AUM.

AUM.

Switching to flows the third quarter marked our sixth consecutive quarter of positive net flows and represented a 7% organic growth rate.

Positive net flow results demonstrates our truly global distribution footprint and the broad range of strategies and vehicles we offer.

Moving to our financial results, which remains solid.

Adjusted diluted EPS of $1 <unk> is 20% higher compared to the same period a year ago.

Ali Dibadj: These 21 strategies reflect a broad range of capabilities and vehicles across protect and grow and amplify strategic efforts, including six ETFs, six equity strategies, the fully tokenized Janus Henderson NMI AAA CLO fund, regional fixed income strategies, absolute return, Victory Park Capital's asset-backed Opportunity Credit Fund, and Privacore within our alternative businesses, and the adaptive capital preservation strategy within multi-strategy. Under Amplify itself, we also announced a partnership with C&O Financial Group for providing long-term capital, which we believe will further accelerate the growth of Victory Park Capital and expand and scale its investment capabilities for the benefit of our clients. With C&O and Guardian, we now have almost $50 billion in very long-term capital, or roughly 10% of our overall AUM. We also continue to leverage our investment expertise through the launches of active ETFs that allow us to cater to client demands globally.

Our financial performance and strong balance sheet continues to provide us the flexibility to invest in our business, both organically and Inorganically and returned cash to shareholders.

On slide three I want to provide an update on progress being made in the business.

Continue to be in the execution phase of our strategic vision, which consists of three pillars protect and grow our core businesses amplify our strengths not fully leveraged and diversify our clients give us the right to win.

And protect and grow we are actively upskilling and utilizing data people and processes best practices across the organization to drive market share improvement and diversification of organic growth across regions and strategies for.

For example in the third quarter. There are 21 strategies that each had at least $100 million of net inflows. This compares to 11 strategies just a year ago.

21 strategies reflect a broad range of capabilities and vehicles across protecting grow and amplify strategic efforts, including six Etfs six equity strategies. The fully token is Janus Henderson Anomite AAA CLO fund.

Ali Dibadj: During the third quarter in the U.S., we launched our asset-backed securities ETF, JABS, and a global artificial intelligence ETF, JHAI. In Europe, we launched our transformational growth equity EUCITS ETF, JTXX, complementing our U.S. launch of transformational growth equity, JXX. Within the Diversify pillar, we announced the successful first closing of a non-U.S. direct lending vehicle by our emerging markets private investment team. I'll talk more about the Victory Park Capital partnership with C&O and our emerging markets private investment team later in the presentation. Along with executing our strategic vision, we are making progress in other areas of the business. As I mentioned, we delivered several consecutive quarters of positive net flows and delivered market share gains in key regions, which demonstrates that we are on the path to delivering consistent growth over the long term.

Regional fixed income strategies.

Absolute return victory Park capital asset backed opportunistic credit fund and <unk> within our alternative businesses and the adaptive capital preservation strategy within multi asset.

Under amplify itself, we also announced a partnership with <unk> financial group for providing long term capital, which we believe will further accelerate the growth of victory Park capital expand and scale its investment capabilities for the benefit of our clients.

With <unk> and Guardian, we now have almost $50 billion in very long term capital roughly 10% of our overall AUM.

We also continue to leverage our investment expertise through the launches of active etfs that allow us to cater to client demand globally.

During the third quarter in the U S. We launched our asset backed securities ETF, J, a b S or jobs and a global artificial intelligence ETF J Hai.

Ali Dibadj: In addition to the net flows this quarter, importantly, Janus Henderson also generated positive organic net new revenue growth in the third quarter. Fee pressures are persistent in this industry, and not all AUM is created equally, so we're pleased with that result. Elsewhere in the business, we've made the strategic decision to transition our investment management system to Aladdin. This multi-year transition is expected to deliver a more scalable operating model through consistent and integrated technology infrastructure and investment management platform. Transitions of this nature are not uncommon in our industry, and we expect this transition will deliver enhanced services to our funds and our clients and enable strategic growth. Our focus is on making this transition seamless for our clients, maintaining the consistent level of service they expect from us.

In Europe, we launched our transformational growth equity UCITS Etfs, J T X X complementing our U S launch of transformational growth equity J X X.

Within the diversified pillar, we announced the successful first closing of our non U S direct lending vehicle by our emerging markets private investment team.

I'll talk more about the V. P C partnership with <unk> and our emerging markets private investment team later in the presentation.

Along with executing our strategic vision, we are making progress in other areas of the business.

I mentioned, we delivered several consecutive quarters of positive net flows and delivered market share gains in key regions, which demonstrates that we are on the path to delivering consistent growth over the long term.

Ali Dibadj: While we anticipate an approximately 1% increase in adjusted operating costs for 2026 and 2027 from this transition, all else equal, in 2028 and beyond, we expect this transition to deliver ongoing operational improvements and efficiencies and attractive ROI. We'll provide an update on 2026 expense expectations, including the net impact of this shift in ongoing costs, on the next quarter's earnings call. Shifting to capital stewardship, our solid financial results and cash flow generation, along with a strong and stable balance sheet, have enabled us to return nearly $130 million this quarter through dividends and share buybacks. Our cumulative share count reduction is 23% since we started the accretive buyback program in the third quarter of 2018. Janus Henderson's strong liquidity profile continues to provide us the flexibility to invest in the business both organically and inorganically, as well as return cash to shareholders.

In addition to the net flows this quarter importantly, Janus Henderson also generated positive organic net new revenue growth in the third quarter.

Fee pressures are persistent in this industry and not all created equally so we're pleased with that result.

Elsewhere in the business, we've made the strategic decision to transition our investment management system to Aladdin.

This multiyear transition is expected to deliver a more scalable operating model through consistent and integrated technology infrastructure and investment management platform.

<unk> of this nature are not uncommon in our industry and we expect this transition will deliver enhanced services to our funds and our client and enables strategic growth.

Our focus is on making this transition is seamless for our clients maintaining a consistent level of service they expect from us.

While we anticipate an approximately 1% increase in adjusted operating costs for 2026 and 2027 from this transition all else equal in 2028 and beyond we expect this transition to deliver ongoing operational improvements and efficiencies and our attractive ROI.

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

Roger Thompson: Thanks, Ali, and thank you for joining us on today's call. Starting on slide four, investment performance. As Ali mentioned, longer-term investment performance versus benchmark remains solid, with at least 60% of AUM beating their respective benchmarks over the 3, 5, and 10-year time periods. Looking in further detail, at least half of each capability's AUM is ahead of benchmarks over medium and long-term periods, reflecting consistent longer-term investment performance across capabilities. Overall, investment performance compared to peers continues to be very competitive, with over 70% of AUM in the top two Morningstar quartiles over the 3, 5, and 10-year time periods. Slide five shows total company flows by quarter. Net inflows for the quarter were $7.8 billion, which improved significantly over the net inflows of $400 million a year ago.

We will provide an update on 2026 expense expectations include the net impact of this shift and ongoing costs on the next quarter's earnings call.

Shifting to capital stewardship, our solid financial results and cash flow generation, along with a strong and stable balance sheet has enabled us to return nearly $130 million this quarter through dividends and share buybacks.

Our cumulative share count reduction is 23% since we started the accretive buyback program in the third quarter of 2018.

Janus Henderson strong liquidity profile continues to provide us the flexibility to invest in the business, both organically and inorganically as well as return cash to shareholders.

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

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

Roger Thompson: Excluding the one-time impact from the Guardian General Account funding last quarter, our gross sales increased for the fourth consecutive quarter and improved by 86% compared to the third quarter of last year. All three channels and regions experienced an increase in gross sales compared to the prior year across a broad range of capabilities, including ETFs, U.S. buy-and-maintain credit, Australian fixed income, U.S. research, our tokenized AAA CLO ETF, and asset-backed opportunistic credit from VPC. Turning to slide six and flows by client type. Third-quarter net flows for the intermediary channel were positive $5.1 billion, equating to a 9% organic growth rate. In the third quarter, net flows were positive in the U.S. and Asia-Pacific, with net outflows in EMEA. To set expectations, we do not expect to repeat this level of net flow in Q4.

On slide four and investment performance.

As Ali mentioned longer term investment performance versus benchmark remains solid with at least 60% of our AUM, beating their respective benchmarks over the three five and 10 year time periods.

In further detail at least half rich capabilities. AUM is ahead of benchmarks over medium and long term periods, reflecting consistent long term investment performance across capabilities.

Overall investment performance compared to peers continues to be very competitive with over 70% of AUM in the top two morningstar quartile over the three five and 10 year time periods.

Slide five shows total company flows by quarter.

Net inflows for the quarter was $7 8 billion, which improved significantly over the net inflows of $400 million a year ago.

Excluding the one time impacts from the Guardian General account something last quarter gross sales increased for the fourth consecutive quarter and improved by 86% compared to the third quarter of last year.

Roger Thompson: In the U.S., net flows were positive for the ninth consecutive quarter, with inflows in several strategies, including most of the active ETFs, U.S. research, multi-sector income, U.S. mid-cap growth, and Privacore. U.S. intermediary is a key initiative under our protect and grow strategic pillar, and we're pleased that we gained market share on a year-over-year basis. Additionally, whilst negative, the third-quarter net flows for U.S. mutual funds within the intermediary channel were the best result in several years. 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 to our clients. In addition to active ETFs, flows into CITs and hedge funds in this channel were positive in the third quarter.

All three channels and regions experienced an increase in gross sales compared to the prior year across a broad range of capabilities, including Etfs you aspire maintained credits Australia in fixed income U S research.

Cocainize AAA CLO fund.

Back to opportunistic credit from BPC.

Turning to slide six on flows by client type.

Third quarter net flows for the intermediary channel with positive $5 $1 billion equating to a 9% organic growth rate.

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

Expectations, we do not expect to repeat this level of net flow in Q4.

Roger Thompson: In EMEA, continental Europe and the Middle East delivered net inflows, while the UK had net outflows primarily driven by a single outflow in investment trusts. Institutional net inflows were $3.1 billion, marking the fourth consecutive quarter of positive flows. Gross sales were the best result in over two years and reflect fundings across all capabilities covering corporates, pensions, insurance, and private credit clients. Net outflows for the self-directed channel, which includes direct and supermarket investors, were $400 million. The third quarter includes approximately $600 million of ETF net inflows from our supermarket clients. Excluding ETFs, self-directed net outflows were roughly flat to the prior year. Slide seven shows our flows in the quarter by capability. Equity flows were negative $3.3 billion compared to $2.6 billion of net outflows in the prior quarter.

Yeah.

In the U S. Net flows were positive for the ninth consecutive quarter with inflows in several strategies, including most of the active Etfs U S research multi sector income.

Mid cap growth and critical.

U S. Intermediary is a key initiative under our protect and grow strategic pillar and we're pleased that we gained market share on a year over year basis.

Actually whilst negative the third quarter net flows for U S mutual funds within the intermediary channel was the best result in several years.

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 to our clients.

In addition to active Etfs flows into cities on hedge funds in this channel were positive in the third quarter.

In EMEA.

Continental Europe, and the Middle East delivered net inflows, while the U K had net outflows, primarily driven by a single outflow in investment trusts.

Roger Thompson: The current quarter was impacted by the merger of the Henderson European Trust into another third-party trust, which resulted in $900 million of net outflows. The environment remains challenging for active equities across all regions. Whilst net flows for equities were negative in aggregate, CITs, active equity ETFs, and Horizon CCAP funds all delivered positive net flows in the quarter. Elsewhere, while still negative, the U.S. equity mutual funds had their best flow result in over two years. Third-quarter net inflows for fixed income were $9.7 billion, compared to $49.7 billion of net inflows in the Guardian boosted prior quarter. Several strategies contributed to positive fixed income flows. Active fixed income ETFs delivered over $5 billion in the quarter and included five active ETFs with at least $100 million of net inflows, including JAAA, JNBS, JSI, JBB, and VNLA. Other strategies contributing to positive flows were Australian fixed income, U.S.

Institutional net inflows were $3 $1 billion, Mark the fourth consecutive quarter of positive flows.

Gross sales with the best results in over two years and reflect funding is across all capabilities covering corporate pensions insurance and private credit clients.

Net outflows for the self directed channel, which includes direct and supermarket investors with $400 million.

The third quarter includes approximately $600 million of ETF net inflows from a supermarket clients.

Excluding Etfs self directed net outflows were roughly flat to the prior year.

Slide seven shows our flows in the quarter by capability.

Equity flows were negative $3 3 billion compared to $2 $6 billion of net outflows in the prior quarter.

The current quarter was impacted by the merger of the Henderson European Trust into another fed policy trusts, which resulted in $900 million of net outflows.

The environment remains challenging for active equities across all regions.

Whilst net flows for equities with negative in aggregates.

Roger Thompson: buy-and-maintain credit, the tokenized JAAA fund, and multi-sector credit. Net flows for the multi-asset capability were break-even, primarily due to net outflows in the balanced strategy, which were offset by an institutional win and our adaptive capital preservation strategy. Finally, net inflows in the alternative capability were $1.4 billion, driven primarily by absolute return, biotech hedge fund, VPC's asset-backed opportunistic credit strategy, and Privacore. Moving on to the financials. Slide eight is our U.S. GAAP statement of income. Before moving on to the adjusted financial results, GAAP results this quarter include an approximately $28 million charge related to the strategic decision to transition our investment management platform to Aladdin. This charge is removed from our adjusted results, and the majority is non-cash. Continuing to slide nine and our adjusted financial results. Adjusted financial results improved compared to the prior quarter and the prior year.

Active equity Etfs and horizon CCAR funds all delivered positive net flows in the quarter.

Elsewhere, while still negative the U S equity mutual funds had their best flow result in over two years.

Third quarter net inflows for fixed income with $9 $7 billion.

<unk> 49 $7 billion of net inflows in the Guardian boosted prior quarter.

Several strategies contributed to positive fixed income flows.

Active fixed income Etfs delivered over $5 billion in the quarter and included five active Etfs with at least $100 million of net inflows, including J AAA J M. B S. J S. I J, J B and V N L a over their life.

Other strategies contributing to positive flows were Australia and fixed income U S. Bio maintained credit the token is J AAA fund.

With respect to credit.

Yeah.

Net flows for the multi asset capability, we're breakeven primarily due to net outflows in the balanced strategy, which were offset by institutional win I know adaptive capital preservation strategy.

Roger Thompson: The improvement was primarily due to higher average AUM and good investment performance generating higher performance fees. Adjusted operating income improved 22%, and EPS improved 21% quarter over quarter. Improvements over prior year were similar, with operating income and EPS both up 20%. Looking at the detail, adjusted revenue increased 11% compared to the prior quarter and 14% compared to the prior year, primarily due to higher management fees on higher average AUM and improved performance fees. Net management fee margin was 42.7 basis points in the third quarter. The expected and communicated decline from the prior quarter was primarily a result of the successful integration of lower fee Guardian AUM. We are also very pleased with positive firm-wide organic net new revenue generation in the third quarter, which demonstrates our success across a broad range of strategies and regions.

And finally net inflows in the alternative capability with $1 $4 billion, driven primarily by absolute return.

Biotech hedge fund <unk> asset backed opportunistic credit strategy and political.

Moving onto the financials.

Slide eight is our U S GAAP statement of income.

Before moving on to the adjusted financial results GAAP results. This quarter include an approximately $28 million charge related to the strategic decision to transition our investment management platform to Aladdin.

This charge is removed from our adjusted results and the majority is noncash.

Continuing to slide nine and I was just at financial results.

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

The improvement was primarily due to higher aperture you earn a good investment performance generating higher performance fees.

Roger Thompson: Third-quarter performance fees were positive $16 million, primarily reflecting the CCAP absolute return strategy in U.S. mutual funds. The U.S. mutual fund performance fees were positive this quarter at over $3 million, which is the best result in over 10 years. This result compares favorably to negative $9 million of U.S. mutual fund performance fees over the same period a year ago. We currently expect Q4 2025 performance fees to be at or above the Q4 2024 total, reflecting very strong performance of our hedge funds, but final amounts will be dependent on performance over the remainder of the year. Continuing to expenses. Adjusted operating expenses in the third quarter increased 6% to $350 million, primarily reflecting higher profit-based compensation, LTI expense, and investments supporting strategic initiatives. Adjusted LTI increased 20% compared to the prior quarter, largely due to mark-to-market or mutual fund share awards.

Adjusted operating income improved 22% on EPS improved 21% quarter over quarter improve.

Improvements over prior year with similar with operating income and EPS, both up 20%.

Looking at the detail.

Adjusted revenue increased 11% compared to the prior quarter and 14% compared to the prior year, primarily due to higher management fees on higher average AUM unimproved performance fees.

That management fee margin was 42 seven basis points in the third quarter.

We expected and communicated decline from the prior quarter was primarily a result of the successful integration of lower fee Guardian.

We're also very pleased with positive firm wide organic net new revenue generation in the third quarter.

Which demonstrates our success across a broad range of strategies and regions.

So of course, the performance fees with positive $16 million, primarily reflecting the <unk> absolute return strategy in U S mutual funds the.

Roger Thompson: In the appendix, we provided the usual table on the expected future amortization of existing grants for you to use in your models. The third-quarter adjusted comp-to-revenue ratio was 43.3%, which is flat to the prior year and in line with our guidance. Our 2025 expectation and an adjusted compensation range of 43% to 44% remains unchanged. Adjusted non-comp operating expenses decreased 5% compared to the prior quarter, primarily from seasonally lower marketing and G&A expenses. For non-compensation guidance, our expectation of high single-digit % growth in full-year non-comp expenses compared to 2024 remains unchanged, reflecting investments supporting our ongoing strategic initiatives and operational efficiencies, inflation, the full-year impact of the consolidation of Victory Park Capital, NBK Capital Partners, Tabular, and Guardian, and the FX impact of a weaker U.S. dollar year-to-date in 2025. Our expectation of high single-digit % growth in non-comp expenses implies growth in the fourth quarter.

The U S. Mutual fund performance fees were positive this quarter at over $3 million, which is the best results in over 10 years. This result compares favorably to negative $9 million of U S. Mutual fund performance fees over the same period a year ago.

We currently expect Q4 2025 performance fees to be at or above the Q4, 'twenty four total reflecting very strong performance of our hedge funds, but final amounts will be dependent on performance over the remainder of the year.

Continuing to expenses.

Adjusted operating expenses in the third quarter increased 6% to $350 million, primarily reflecting higher profit based compensation LTI expense on investments supporting strategic initiatives.

Adjusted LTI increased 20% compared to the prior quarter largely as you said mark to market of mutual fund share awards in the appendix, we provided the usual table on the expected future amortization of existing grants for you to use in your models.

The third quarter adjusted comp to revenue ratio was 43, 3%, which is flat to the prior year and in line without guidance.

Roger Thompson: We do expect to invest a little bit further in high ROI investments supporting areas of momentum in our business, examples being marketing and advertising, as well as client-related expenses such as T&E. 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. Our expectation of the firm's tax rate on adjusted net income attributable to JHG remains unchanged in the range of 23% to 25%. Finally, we'll give 2026 guidance on our full-year call, but as Ali's mentioned, our transition to Aladdin will result in higher costs in 2026 and 2027 before we deliver the improvements and efficiencies for the future in 2028 and beyond. Our third-quarter adjusted operating margin was 36.9%, an increase of 200 basis points from a year ago.

Our 2025 expectation and adjusted compensation range of 43% to 44% remains unchanged.

Adjusted non comp operating expenses decreased 5% compared to the prior quarter, primarily from seasonally lower marketing and G&A expenses.

So non compensation guidance, our expectation of high single digit percentage growth in full year non comp expenses compared to 2024 remains unchanged, reflecting investments supporting our ongoing strategic initiatives and operational efficiencies inflation, the full year impact of the consolidation of GPC and BK.

A tabular Guardian.

And the FX impact of a weaker U S dollar year to date in 2025.

Our expectation of high single digit percentage growth in non comp expenses implies growth in the fourth quarter, we do expect to invest a little bit further in high ROI investments supporting areas of momentum in our business examples being marketing and advertising as well as client related expenses such as T D.

Roger Thompson: Finally, adjusted diluted EPS was $1.09, up 20% from the comparable third-quarter 2024 period. The increase in adjusted diluted EPS primarily reflects higher operating income and operating leverage. Skipping over slide 10 and moving to slide 11 and a look at our liquidity profile. Our balance sheet remains strong and stable. Cash and cash equivalents were $1 billion, as at the 30th of September, compared to $395 million of outstanding debt. During the quarter, we funded our quarterly dividends and repurchased 1.5 million shares as part of our corporate buyback program for approximately $67 million. The board has also declared a $0.40 per share dividend to be paid on the 26th of November to shareholders of record as at the 10th of November. Slide 12 looks in more detail at our consistent return of capital to shareholders.

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

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%.

And finally, we'll give 2026 guidance on a full year coal, but it's all of these mentioned I'll transition to Aladdin for results in higher costs in 2026, and 2027 before we deliver the improvements and efficiencies for the future in 2028 and beyond.

Third quarter adjusted operating margin was 36, 9% an increase of 200 basis points from a year ago.

And finally adjusted diluted EPS.

It was a dollar and nine cents up 20% from the comparable third quarter 2024 period.

Roger Thompson: We've maintained a healthy quarterly dividend and have reduced shares outstanding by almost 23% since 2018. During the first nine months of 2025, we've returned $331 million, including $143 million via share repurchases. The buyback program and dividends do not alter our ability to invest in the business organically and 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. 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 in private markets. Thanks, Roger. Turning to slide 13 and an update on our progress in private markets.

The increase in adjusted diluted EPS, primarily reflects higher operating income and operating leverage.

Skipping over to slide 10, I'm moving to slide 11, and look at our liquidity profile.

Sheet remains strong and stable.

Cash and cash equivalents were $1 billion is that the 13th of September compared to $395 million of outstanding debt.

During the quarter, we funded our quarterly dividends and repurchased one 5 million shares as part of our corporate buyback program for approximately $67 million.

The Board has also declared a <unk> 40 per share dividend to be paid on the 26th of November to shareholders of record as at the 10th of November Slide 12 looks at more detail at a consistent return of capital to shareholders.

Roger Thompson: We've made progress in the private market space through Privacore, Victory Park Capital, and our emerging markets private investment team. Starting with Privacore, which seeks to take advantage of and be the leader in the democratization of private alternatives in the private wealth channel, year-to-date, Privacore has advised on $1.4 billion raised in the private wealth channel. Privacore is now selling on five wirehouses and platforms, and the team is expanding into RIAs and broker dealers. In addition to advising on third-party products through its open architecture model, Privacore has also recently launched two proprietary funds: the Privacore VPC Asset Backed Credit Fund, ALTS ABF, which is sub-advised by our very own Victory Park Capital, and the Privacore PCAM Alternative Growth Fund, ALTS GROW, sub-advised by Partners Capital.

We've maintained a healthy quarterly dividend and have reduced shares outstanding volume was 23% since 2018.

During the first nine months of 2025, we've returned $331 million, including $143 million fast share repurchases.

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

Currently our liquidity profile allows us to do both a return of excess cash is consistent with our capital allocation framework. We will 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 and private markets.

Roger Thompson: In addition to these advised third-party proprietary funds, Privacore expects to have more products coming online in the upcoming months and is working with Janus Henderson to expand its reach. In September, we announced that C&O Financial Group, a nationwide life and health insurer and financial services provider with $37 billion in total assets, would acquire a minority interest in VPC. As part of the partnership, C&O will provide a minimum of $600 million in long-term capital commitments to new and existing VPC investment strategies. One of these strategies will be the Privacore Victory Park Capital Asset Backed Credit Fund I previously mentioned. This collaboration with C&O Financial Group reinforces our shared belief in the long-term potential of asset-backed private credit markets and further deepens Janus Henderson Group plc and Victory Park Capital's insurance presence.

Thanks, Roger turning to slide 13, and update our progress in private markets.

We've made progress in the private market space through private car, if it keep our capital and our emerging markets private investment team.

Starting with private car, which seeks to take advantage of and be the leader and the democratization of private alternatives in the private wealth channel year to date perfect course advised on $1 $4 billion raised in the private wealth channel.

<unk> is now selling on five warehouses and platforms and the team is expanding into our eighth and broker dealers.

In addition to advising on third party products through its open architecture model <unk> also recently launched two proprietary funds the pivot core V. P. C asset backed credit fund Alts, ABF, which is sub advised by our very own victory Park capital and the perfect car Pecan alternative growth fund alts grow sub advised by partners.

Roger Thompson: C&O Financial Group's investment of long-term capital speaks to Victory Park Capital's strong track record of providing private credit solutions across industries, their differentiated expertise in highly developed sourcing channels, and the significant value Victory Park Capital brings to its investors and portfolio companies. The transaction was completed on October 1, and Janus Henderson Group plc remains the happy majority owner of Victory Park Capital. The transaction with C&O Financial Group builds on Janus Henderson Group plc's recent momentum in the insurance space with our previously announced multi-faceted strategic partnership with Guardian, which is working well. Lastly, in early October, our emerging markets private investment team, formerly NBK Capital Partners, marked a strategic milestone with the announcement of the successful first close of the $300 million Sharia-compliant fund, the Janus Henderson MENA Private Credit Fund IV, with $125.5 million committed.

Capital.

In addition to these advised third party and proprietary funds perfect expects to have more products coming online in the upcoming months and is working with Janus Henderson to expand its reach.

In September we announced that the <unk> financial group, a nationwide life and health insurer and financial services provider with $37 billion in total assets will acquire a minority interest in V. P C.

As part of the partnership <unk> will provide a minimum of $600 million in long term capital commitments to new and existing EPC investment strategies.

What are the strategies will be the Premier core victory Park capital asset backed credit fund I previously mentioned.

This collaboration with Siano reinforces our shared belief in the long term potential of asset backed private credit markets and further deepens Janus Henderson N V P. CS insurance presence CN.

Roger Thompson: The vehicle, which attracts strong demand from global and regional institutional clients and family offices, provides investors with access to emerging market private credit opportunities that deliver attractive cash yield and total risk-adjusted returns. The second close is planned for year-end 2025, with the final close in mid-2026. The successful first close of this direct lending vehicle underscores our commitment to investors in the Middle East and the growing number of companies in the region seeking access to flexible, values-driven financing. It also highlights the important role private credit plays in connecting capital with opportunities across dynamic growth markets. This business also strategically complements our emerging market public credit business, which is now at almost $2 billion of assets under management.

<unk> investment of long term capital speak to <unk> strong track record of providing private credit solutions across industries Theyre differentiate expertise in highly developed sourcing channels and the significant value <unk> brings to its investors and portfolio companies.

The transaction was completed on October one and Janus Henderson remains a happy majority owner of EPC.

The transaction with the C. I know it builds on Janet's Hendersons recent momentum in the insurance space with our previously announced multifaceted strategic partnership with Guardian, which is working well.

Lastly in early October our emerging markets private investment team, formerly Enrique capital partners Mark for a strategic milestone with the announcement of the successful first close of the $300 million Sharia compliance fund the Janus Henderson, Nina private credit fund four with $125 $5 million committed.

Roger Thompson: Privacore, Victory Park Capital, and emerging markets private investments underscore Janus Henderson Group plc's commitment to private capital as a key strategic growth area as we continue to diversify our capabilities and deliver differentiated solutions for our clients. Now, wrapping up on slide 14. We're making meaningful progress across the business, although we're not firing on all cylinders yet and have more improvement to go. We're executing against our strategic objectives, including capturing market share in key regions, diversifying our flows across regions and strategies, establishing new strategic partnerships, and developing newly added pieces of our business. Investment performance is solid versus benchmark and peers. Net inflows were positive $7.8 billion, marking our sixth consecutive quarter of net inflows and the best quarterly result ever, excluding the Guardian net inflows of last quarter.

The vehicle, which attracted strong demand from global and regional institutional clients and family offices provides investors with access to emerging market private credit opportunities that deliver attractive cash yield and total risk adjusted returns. The second close as planned for year end 2025 with a final close in mid 2026.

The successful first close of this direct lending vehicle underscores our commitment to investors in the middle East and a growing number of companies in the region seeking access to flexible values driven financing.

It also highlights the role of private credit plays in connecting capital with opportunities across dynamic growth markets.

It's also strategically complements our emerging market public credit business, which is now at almost $2 billion of assets under management.

Perfect car victory Park capital and emerging markets private investments underscores Janus Henderson commitment to private capital is a key strategic growth area as we continue to diversify our capabilities and deliver differentiated solutions for our clients.

Roger Thompson: While we are very pleased with the quarterly results, it's worth noting for modelers that these flows also reflect several fundings which have depleted the near-term existing pipeline opportunities. 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. Finally, before I turn it over to the operator for questions, I want to acknowledge our CFO, Roger Thompson, who will start a well-deserved retirement beginning April 1, 2025. Roger joined the firm in 2013 as CFO and began leading the APAC Client Group in 2022.

Now wrapping up on slide 14.

Meaningful progress across the business, although were not firing on all cylinders, yet have more improvement to go.

We're executing against our strategic objectives, including capturing market share in key regions diversifying our flows across regions and strategies, establishing new strategic partnerships and developing newly added pieces of our business.

Investment performance is solid versus benchmark and peers.

Net inflows were positive seven $8 billion, marking our sixth consecutive quarter of net inflows and the best quarterly result ever excluding the Guardian net inflows of last quarter.

Roger Thompson: He is a valued member of our executive committee, a director on several of our boards, has been a strong supporter of several of our employee resource groups, a friend and mentor to many people, and a true culture carrier within our firm. He personifies all five of the Janus Henderson values. On a very personal note, the successes we've seen over the past few years of Janus Henderson could not have happened without Roger. He's been an incredible feedback giver, strategic thinker, and all-around partner to me. I also want to thank him for the collaboration and fun on many of our client and investor meetings, earnings calls, town halls, travels, even when we miss transcontinental flights, and so much more. I and the firm owe Roger an incredible debt of gratitude. While sad to see Roger go, we're very excited for his next phase in life.

While we were very pleased with the quarterly results, it's worth noting for Modelers that these flows also reflects several fundings, which are depleted the near term existing pipeline opportunities.

Our financial performance and strong balance sheet allows 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 it and achieve superior financial outcomes and to deliver desired results for our clients shareholders employees and all our stakeholders.

Finally, before I turn it over to the operator for questions I wanted to knowledge, our CFO, Roger Thompson, who will start a well deserved retirement beginning April 1st of next year.

Roger joined the firm in 2013, as CFO and began leading the APAC client group in 2022.

Roger Thompson: Pleasingly, and demonstrating the talent we have within Janus Henderson, I'm delighted that our Head of Corporate Development and Strategy, Suk Grewal, will become our CFO and joins our executive committee. Suk joined the firm in 2022, and through each of our recent acquisitions of Tabular, NBK Capital Partners, and Victory Park Capital, and partnerships with Privacore, Guardian, and C&O Financial Group, he's been instrumental in helping to define and deliver our strategy to protect and grow our core, amplify our strengths, and diversify where we have the right. As a reminder, as we turn the call over to the operator for questions, we're unable to comment further on the non-binding proposal and ask that you focus questions on the business results. With that, let me now turn the call back over to the operator to take your questions. Thank you.

As a valued member of our Executive Committee a director on several of our boards has been a strong supporter of several of our employee resource groups, a friend and mentor to many people and a true culture carrier within our firm.

He personifies all five of the Janus Henderson values.

On a very personal note the successes we've seen over the past few years of Janus Henderson could not have happened without Roger.

He's been an incredible feedback ever strategic thinker and all around partner to me I also want to thank them for the collaboration and fun on many of our client and Investor meetings earnings call town halls travels even when we miss transcontinental flights and so much more and.

And I and the firm or Roger and incredible Democratic food.

Roger Thompson: If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad now to join the queue. For preparing to ask your question, please ensure you are unmuted locally, and participants are reminded to limit themselves to one question and one follow-up per person. Our first question comes from Ken Worthington from JPMorgan. Ken, please go ahead. Your line is open. Hi. Good morning. Thanks for taking the question. Roger, congrats to you. We'll say farewells for later. Maybe first, in terms of net flows, clearly seeing a nice improvement in the intermediary and institutional channels. You highlighted the products that contributed. What I'm really after is, what is the story behind the numbers? What's the story behind the improved gross sales?

Well start to see Rodrigo very excited for its next phase in life.

<unk> and demonstrating the talent, we have within Janus Henderson I'm delighted that our head of corporate development and strategy. So great wall will become our CFO and joins our executive Committee.

Chuck joined the firm in 2022 and through each of our recent acquisitions of tabular and BK capital in victory Park capital and partnerships with private core Guardian and <unk> financial group. He has been instrumental in helping to define and deliver our strategy to protect and grow our core amplifier strength diversify where we have the right.

As a reminder, as we turn the call over to the operator for questions. We're unable to comment further on the non binding proposal and ask that you focus questions on the business results with that.

Roger Thompson: Is it possible to help us better understand how, and maybe which of the initiatives seems to be translating into what we can obviously see are the better results? Hey, Ken, thanks for the question. Look, as you pointed out, we feel pretty good about what we delivered in the quarter on flows. You're right. It's a lot of thought process to get there. If you start with the intermediary side of things, the $5.1 billion of flows in the third quarter were certainly positive. We, again, as we said in the prepared remarks, want to make sure that people don't expect that to continue at that pace consistently. You've seen some of the public ETF data. The whys are actually coming into play. The whys are actually certainly helping. On the intermediary side, we've done many things, right?

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

Thank you if you'd like to ask a question on todays call. Please press star slipped by one on your telephone keypad announced join the queue.

To ask a question. Please ensure you're on mute locally participants are reminded to lend themselves to one question on one follow up per person.

Our first question comes from Ken Worthington from Jpmorgan. Please go ahead. Your line is open.

Hi, good morning, Thanks for taking the question Roger Congrats to you will say farewell for later.

But maybe first in terms of net flows.

And clearly seeing a nice improvement in the intermediary and institutional channels you highlighted the products that contributed what I'm really after is like what is the story.

Roger Thompson: One is we've made sure that we have the right people in the right places. We've then made sure that we actually pay them the right way, incentivize them to grow and get new products on shelves, and make sure they're the right products for the end client. We then are making sure that we have the right product. That comes in two flavors. One is ensuring that the performance is right. You'll see that our performance continues to be solid versus several years ago, certainly improved on average. Also, make sure that they're right wrappers, whether they be ETFs or CITs or mutual funds, which we still are big believers in, or SMAs or other wrappers as well. Make sure the product is right. Of course, we want to make sure that we're calling the right people and are productive about it.

The numbers like what's the story behind the improved gross sales is it possible to help us better understand how and maybe which of the initiatives seems to be translating into what we can obviously see the better results.

Hey, Ken Thanks for the question.

Look as you pointed out we feel pretty good about what we delivered in the quarter on flows.

Youre right its a its a lot of thought process to get there.

Start with the intermediary side of things.

$1 billion of flows in the third quarter was certainly positive.

We again as we said in the prepared remarks, I want to make sure that people don't expect that to continue at that pace consistently you've seen some of the public ETF data, but the wise are actually coming into play in a wiser actually certainly helping and on the media side. We've done many things right. One is we've made sure that we have the right people in the right places <unk>.

Roger Thompson: We're using a lot of data, including some newer technologies, to make sure that folks are targeting the right people. You put all that stuff together to your question. It's not just the outputs, but it's the inputs and the whys. We feel pretty comfortable that we're on the right track. Obviously, in the U.S., that's certainly started to show. This is our, I think, ninth consecutive quarter of positive flows. It's starting to show outside of the U.S. as we transport that thought process on the intermediary side. On the institutional side, the $3.1 billion of flows this quarter marked the fourth consecutive quarter of positive flows. Gross sales were the best results we've had in something like two years. We're going to continue to build on that momentum. There too, I think we depleted some of our future pipeline in what happened this quarter.

Sure that we actually pay them the right way incentivize them to grow and get new products on shelves and make sure. They're the right products for the end client. We then are making sure that we have the right product now that comes in two flavors. One is ensuring that the performance is right you'll see that our performance continues to be solid and versus.

Several years ago has certainly improved on average and also make sure that the right wrappers, whether they be etfs or cities or mutual funds, which we still are big believers in or SMA as our other rappers as well to make sure. The product is right and of course, then we wanted to make sure that we're calling the right people and in our productive about it. So we're using a lot of data <unk>.

Roger Thompson: Still, the whys are a lot of the same, as I talked about on the intermediary side, around product, around vehicle, etc. Very importantly, it's also building relationships with our clients that are more than just transactional relationships. That's true in intermediary, but it's even more true in institutional, where we focus on building more nodes of connectivity between the firms. It might not just be delivering investment performance. It's also delivering ourselves, what we know about technology, what we know about AI, what we know about regulatory environments. That's also part and parcel, and you may have seen this to our brand campaign that's out there, that is resonating, again, both for intermediary and institutional, which is this ampersand, right? This ampersand is the symbolism of how we work with our clients. It's this together concept of Janus Henderson that our clients told us we're special about.

<unk>.

Some newer technologies to make sure that folks are targeting the right people. So you put all that stuff together and to your question. It's not just the outputs.

Put some wise, we feel pretty comfortable that we're on the right track.

And obviously in the U S. That's really start to show. This is our ninth consecutive quarter of positive flows.

And it's starting to show outside of the U S. As we transport that thought process on the intermediary side on the institutional side, the $3 $1 billion.

Flows this quarter marked the fourth consecutive quarter of positive flows gross sales were the best results. We've had in something like two years.

We're going to continue to build on that momentum again, there too I think we completed some of our future pipeline and what happened this quarter, but still the wise are a lot of the same.

Roger Thompson: It's this together, this ampersand. It's their goals and our solutions. It's. Their problems and our hopes to deliver solutions for their problems. It's all of those things together. It's not just one thing. It's never just one thing, as you know. There's no silver bullet. We're certainly pulling all this together and hoping to continue to build over time, not overnight. I'm not sure we're there yet. We're not firing all cylinders, but over time, very sustainable growth for us on a consistent basis. Thank you. Thank you for that. I'm always looking for the silver bullet. In terms of product performance, generally looks very good. Have seen some deterioration in equities. Can you talk about the themes you're seeing in the equity franchise that are impacting performance? Let me pick up on that first. I think you're right.

As I talked about in each meter side or on product around vehicle et cetera, but very importantly, it's also building relationships with our clients that are more than just transactional relationship that's true in intermediary, but even more true in institutional where we focus on building more nodes of connectivity between our firms and might not just be delivering investment performance. It's also <unk>.

We bring ourselves and what we know about technology, what we know about AI, what we know about regulatory environments and that's.

So part and parcel and you may have seen this to our brand campaign Thats out there that is resonating again, both for intermediary and institutional which is this ampersand right. This ampersand is the symbolism of how we work with our clients as this together concept of Janus Henderson that our clients told us where special about this together this ampersand.

Roger Thompson: The one-year performance in equity is a little lower, but the longer-term time periods remain really solid, at least 50% ahead of benchmark. Against competition, the figures are even better, with over 80% over three and ten years ahead of competition or top two Morningstar quartiles. As you say, it's very concentrated. The move in Q3 over Q2 is really due to U.S. concentrated growth and U.S. research moving below benchmark over one year. I think really importantly, that is really to do with a poor Q4 last year. Our year-to-date performance is strong. Both of those are ahead of benchmark over year-to-date. Overall equity is 63% ahead of benchmark year-to-date at the end of September. It's a short-term number with, as you say, some really tricky markets that our excellent investors are working through. Which, again, I think continues to be where active management is important.

It's their goals and our solutions, it's their problems and our hopes to deliver solutions for their problems. So.

It's all of those things together, it's not just one thing it's never just one thing as you know theres no silver bullet or certainly pulling all this together and hoping to continue to build over time not overnight I'm not sure. We're there yet and were not firing on all cylinders, but over time, a very sustainable growth for us on a consistent basis.

Okay. Thank you. Thank you for that and I'm always looking for the silver bullet so.

And just in terms of product performance.

It looks very good have seen some deterioration in equities can you talk about the themes you're seeing any equity franchise that are impacting performance.

Okay. Let me, let me first I mean, you're right the one year, one year performance and equity.

Aloha.

But it's.

The longer term time periods remained really solid at least 50% had a benchmark.

And against competition the figures are even better.

Roger Thompson: It's essential for client portfolios. 350 investment professionals intensely focused on delivering between good and bad, as we always say, separating the wheat from the chaff. That is a tough market at the moment. You will get short-term blips, but it's that long-term performance which is really critical to what clients look at. We're really proud of the investment performance that we've got. The next question comes from Bill Katz at TD Cowen. Bill, please go ahead. Your line is open. Thank you very much. Apologize, my voice. Maybe the first question is a two-parter. I was wondering if you could comment about the ability to drive expenses and growth in the business and what hurdles you face as a public company. Within that, I'm curious about the Aladdin opportunity. How do we think about the incremental leverage into 2028 relative to the spend in 2026 and 2027? Thank you.

With over 80%.

10 years ahead.

Ahead of competition with top to top Morningstar courthouse.

It's very tough it's very concentrated the moves in Q3 over Q2 is really due to U S concentrated growth in U S research moving below benchmark over one year I think really importantly.

It is really to do with a poor Q4 last year, our year to date performance.

His strong placement those are ahead of benchmark over a year to date overall equity of 63%.

Benchmark.

Yesterday at the end of September.

So it is a it's a short term number with as you say, some really tricky really tricky market set up excellent investors it.

I'll walk you through which which again I think continues to be where active management is important. This is essential for clinical failures 350 investment professionals and are intensely focused on delivering.

Roger Thompson: Hey, Bill. Thanks for the question. First, on the first one. Look, we're clearly investing in the business. To our guidance for this year of high sales digit growth, high sales % growth. In non-comp, we're seeing opportunities to invest. As we see opportunities to invest, we constantly look at ROI. We look at where we invest, what's the return on that investment. I mentioned marketing spend and branding a second ago. I mentioned some of the investments we made in our people from a compensation and growth driving perspective. We constantly look at ROI. Roger is great at that. We look at where we get the benefit out of it. We think we can continue to do that and get good ROI, which is why we continue to spend more. Not peanut butter, not blanket, but in particular areas we found that we can deliver value.

Between good and bad as we always say that separating the wheat from the chess.

Yeah that is that is a tough market at the moment and you will get you will get short term blips, but it's that long term that long term performance, which is really critical to what clients look at.

And then we're really proud of the way investment performance that we've got.

Yeah.

The next question comes from Bill Katz at TD Cowen. Please go ahead. Your line is open.

Okay. Thank you very much and apologize for my voice.

So maybe first question is a two parter I was just wondering if you could comment about the ability to drive expenses and growth in the business and what hurdles you face as a public company and then within that I was curious with the Aladdin opportunity how do we think about the incremental leverage into 28.

Five to spend in 2026 and 27. Thank you.

Roger Thompson: Value for our clients leads to growth. On your Aladdin question, as we mentioned, we'll give you more detail on the next quarterly call. We expect the short-term costs, as we said, to go up by about 1% of our overall expense base for 2026 and 2027. After that, we would tend to see some benefits. It's early days to know exactly what that is, but certainly, we'd like to see some benefits. We're doing it for cost benefits, sure, but also really, really importantly because we think we can deliver better for our investors. We think we can deliver better for our funds, our mutual fund trustees, and mutual fund shareholders, which are very important to us. We believe we can deliver better to our clients more broadly. We're doing it for all sorts of reasons. For us, this was the right match to work with Aladdin.

Hey, Bill Thanks for the question. So first on the first one.

Look we're clearly investing in the business to.

Our guidance for this year of high single digit growth on a percentage growth.

And non comp.

We're seeing opportunities to invest and as we see for opportunity I see opportunities to invest.

Do you really look at ROI, we look at where we invest what's the return on that investment I mentioned marketing spend and branding a second ago I mentioned some investments we made in our people from a compensation and growth driving perspective, we constantly look at Roy Rogers, great at that and.

And so we look at where we get the benefit out of it. We think we can continue to do that and get good ROI, which is why we continue to spend more again, not peanut butter not blanket, but and in particular areas. We found that we can deliver value.

Roger Thompson: May not be for everybody. For us, that was the right match. Thank you. Just as a follow-up, maybe on capital priorities from here, balance sheet's in great shape. You bought back a lot of stock in the quarter. A, does the offer from TRION take you out of the market temporarily? B, more broadly, how are you thinking about capital return from here? Maybe if you could comment on where you stand on the M&A pipeline. Thank you. Let me pick up on that, Bill. The short answer is nothing changes. Our current expectations will complete the full $200 million buyback by the annual general meeting of next year. In the third quarter, we bought another $67 million worth of stocks, 1.5 million shares. Cumulatively, since we started the buyback in 2018, we've now bought back 23% of the stock. That consistency is something we've talked about.

<unk> value for our clients leads to growth on your latter question as we mentioned we will give you more detail on the next quarterly call.

We expect the short term costs as we set to go up by about 1% of our overall expense base.

For 2026, and 2027 and then after that we would tend to see some benefits. It's early days to know exactly what that is but certainly we'd like to see some benefits and we're doing it.

Yes for.

Cost benefits sure, but also really really importantly, because we think we can deliver better for our investors. We think we can deliver better for our funds our mutual fund trustees of mutual fund shareholders, which are very important to us. We believe we can deliver better to our clients more broadly and so we're doing it for all sorts of reasons for us. This.

Was the right match to work with Aladdin may not be for everybody for us that was the right match.

Roger Thompson: We've got $83 million of the buyback outstanding. We have an ongoing 10B51 plan that's in place, which is unaffected by Monday's non-binding acquisition proposal. I may have passed back to you on M&A. As we've said, our capital philosophy remains completely unchanged and has been for a very long time, that we will invest in the business but return cash to shareholders where we don't have an immediate need or near immediate need for that. Again, in terms of individual items, Ali? We have the flexibility, obviously, to continue to M&A and invest back in the business organically and return cash to shareholders. We're in a privileged position. The next question comes from Craig Siegenthaler from Bank of America. Craig, your line is open. Please go ahead. Thanks. Good morning, Ali. Hope everyone's doing well. Roger, best wishes for your retirement.

Okay. Thank you and just as a follow up maybe on capital priorities from here of balance sheets in great shape, you bought back a lot of stock in the quarter.

Does the.

Offer from try and take you out of the market temporarily and be more broadly how are you thinking about capital return from here, maybe if you could comment on where you stand on the M&A pipeline. Thank you.

So let me, let me pick up on that though so.

So.

The short answer is nothing changes.

Patients will complete the full $200 million buyback.

By the annual General meeting of next year in the third quarter, we bought another $67 billion worth of stocks wasn't a half million shares.

Cumulatively since we started the buyback in 2018 with Apple at 23% of the stocking that consistency is something we've talked about.

We've got $83 million with the buyback outstanding.

And we Havent, we havent ongoing <unk> five one.

Planets.

Roger Thompson: Our question is on Victory Park. There are so many positive levers, currently, between Guardian, the C&O Financial Group partnership, and even capital raising at Privacore, and probably a few that I'm actually missing. How has Victory Park's AUM grown since the deal closed? How do you think about future growth of Victory Park over the next few years? Hey, Craig, thanks for the question. We are very pleased with the Victory Park Capital acquisition. Just to take a step back, as you might remember, we targeted three areas from a private perspective that we wanted to go after. One of them was the democratization of alternatives into the wealth channel, and that's how we stood up, to your point, Privacore. We have a team that is doing extraordinarily well in driving flows appropriately from the wealth channel into the appropriate products from GPs.

It's in place, which is unaffected by monday's non binding acquisition proposal.

Okay I'll pass it back to you on an M&A, but again as we've as we set our capital philosophy remains completely unchanged and has been for a very long time, but we will invest in the business, but return cash to shareholders, where we don't have an immediate need.

Or near immediate need for that.

Again in terms of individual items early.

Well.

We have the flexibility obviously to continue to M&A and invest back in the business organically.

And return cash to shareholders. So we're in a privileged position.

The next question comes from Craig Siegenthaler from Bank of America. Craig. Your line is open. Please go ahead.

Yes.

Thanks, Good morning, Ali I hope everyone's doing well and Roger.

Best wishes for your retirement.

Our question is on victory Park.

There's so many positive levers currently between Guardian life.

Roger Thompson: They're on five different platforms or wirehouses right now with product in the marketplace. That's one piece of the puzzle for us to get wealth more exposed into the opportunities in the alternatives landscape. That certainly includes some element of Victory Park Capital. As I mentioned, one of the proprietary products Privacore is delivering is with Victory Park Capital in that wealth channel. That's one element. The second element is in private credit. Private credit in the U.S., from a direct lending perspective, we thought was rather oversaturated at this point. There may be opportunities in the future, but at this point, direct lending in the U.S. was not a place we wanted to go. We certainly want to focus on outside the U.S. direct lending, and in particular, the MENA private credit business that we brought on board, which has done extraordinarily well.

<unk> partnership and even capital raising at private core and probably a few that I'm actually missing. So how is victory parks AUM grown since the deal closed and then how do you think about future growth a victory park over the next few years.

Hey, great. Thanks for the question, we are very pleased with the victory Park capital acquisition.

Take a step back as you might remember we had targeted three areas from a private perspective that we wanted to go after one of them was the democratization of alternatives into the wealth channel and that's how we stood up to your point <unk>.

We have a team that is doing extraordinarily well and driving flows appropriately from the wealth channel into the appropriate products.

From from GPS there on five different platforms or wire houses right now.

Roger Thompson: I was just out in the Middle East a couple of weeks ago now, and the interest is very, very high for our product because they are a group of folks who've been doing this for basically two decades and have been able to show very, very good results. That's why we did our first close on this, probably $300 million in total. Fund IV for them and first one for Janus Henderson, but Fund IV for the team. The close, I think, certainly suggested that there's more to come in that piece of the business. That's the non-U.S. private credit. To your point, not direct lending in the U.S., but we're certainly looking at asset-backed in the U.S. and globally. That's where we come across Victory Park Capital.

With product in the marketplace and so that's one piece of the puzzle for us.

To get.

Wealth more exposed into the opportunities in the alternative landscape and that certainly includes some element of victory Park capital as I mentioned in one of the proprietary products <unk> is delivering.

Is with victory Park capital in that wealth channels. So that's one element the second element is in private credit.

But private credit in the U S from a direct lending perspective, we thought was rather.

Over over saturated at this point there may be opportunities in the future, but at this point direct lending in the U S was not a place we wanted to go. So we certainly want to focus on outside the U S direct lending and in particular, the Mena private credit business that we brought on board, which is done extraordinary well I was just out in the middle East a couple of weeks ago.

Roger Thompson: Victory Park Capital is a firm where the culture fits Janus Henderson, i.e., client-focused, i.e., growth-oriented, i.e., deep, deep research, deep diligence on the companies that they lend to and a lot of history with them. We thought they were the best of the bunch, and we did bring them on board. To answer your question, if you note, out of the 21 products that delivered more than $100 million of flows this quarter, they have been one of them. They're mid-raise right now. I can't comment too much about the full raise. If you think about that, which does not include C&O, right, which comes in likely Q4 here or has come in in Q4, I do think that, to your point, we think there's enormous opportunity for Victory Park Capital, not just in Privacore, but more broadly, especially with the insurance relationships.

Now and the interest is very very high for our product because they are a group of folks who've been doing this for basically two decades.

And have been able to show very very good results.

That's why we did our first close on this probably $300 million in total.

For for them and first one for Janus Henderson, but fun for for the team.

And.

To close I think certainly suggest that there's more to come.

And that piece of the business. So that's the non U S. Private credit and then to your point not direct lending in the U S. But we've shown and certainly looking at asset backed in the U S and globally and that's where we come across victory Park capital victory Park capital is firm, where the culture fits Janus Henderson I E client focused growth oriented.

Roger Thompson: The insurance relationship we have with Guardian is going fantastically well. With C&O as well, we feel that it's another firm that we found really a culture match, really thoughtful, deep-thinking, great management team, great people. Partnering with them also makes a ton of sense. I think you're right to suggest that there's a lot of opportunity here. We have to make the right moves, and step by step, we'll get there. Again, this is one of those not overnight things, but over time, perhaps we'll get there. Thanks, Ali. Just for our follow-up on investing, year-to-date expenses have grown by 20% over the last two years, and that really doesn't account for CapEx either. We're curious, do you feel your ability to invest has been constrained by being public, balancing both growth objectives with the desire to show operating leverage? Again, thanks for the question.

<unk> deep deep research deep diligence on the companies that they that they lend to and a lot of history with them.

And we thought they were the best of the bunch and so we did bring them on board and to answer. Your question. If you note out of the 21.

Products that delivered more than $100 million of flows this quarter. They have been one of them and so they're mid raise right now I can't comment too much about the full raise but if you think about that.

<unk> does not include <unk>, right, which comes in and likely Q4 here.

Has come in in Q4, I do think that to your point, we think there's enormous opportunity to recoup our capital not just in further corporate more broadly, especially with the insurance relationships.

Roger Thompson: We're investing where we see that there's ROIs, and we'll continue to do that. You've clearly seen that in our numbers. You're right. We're investing in the business, and we're getting a return off of it. When we stop getting a return, we'll stop. Don't forget that a lot of that operating cost growth is due to the M&A that we brought on board. A different type of investment, but investment nonetheless in growth and, most importantly, delivering for our clients a broader suite of high-caliber investment products and client service. The next question comes from Patrick Davids from Autonomous. Patrick, your line is open. Please go ahead. Hey, good morning, everyone. First question, we saw some big credit wobbles in the bank loan market in October, and clearly, you mentioned that had an immediate impact on bank loan and CLO fund flows.

And the insurance relationship we have with Guardian is going fantastically, well and with <unk> as well we feel that it's another firm or is that really a cultural match really thoughtful deep thinking great management team great people and so partnering with them also makes a ton of sense. So I think youre right too.

Suggests that there is a lot of opportunity here, we have to make the right moves and step by step will get there again. This is one of those not overnight things, but overtime, perhaps we'll get there.

Thanks Ali.

Yes for our follow up on investing so year to date expenses have grown by 20%.

Over the last two years and that really doesn't account for capex either so.

We're curious do you feel your ability to invest has been constrained by being public balancing both growth objectives with the desire to show operating leverage.

Again, thanks for the question.

Where we're investing where we see that Theres rois and so we'll continue to do that you've clearly seen that in our numbers Youre right. We're investing in the business and we're getting a return off of it when we stopped getting a return.

Roger Thompson: At a higher level, I'm just curious how your bank loan and CLO teams are reacting to those specific issues, how they're scrubbing the portfolio, and to what extent those issues are having any impact on your discussions with the distributors of those products for you. Thank you. Hey, Patrick. Thanks for the question. Exactly as you describe it, the wobbles are precisely why active asset management, particularly in fixed income, is so critical across the board, particularly in fixed income. You mentioned there are a couple of companies that wobble out there. I mean, Tricolor, First Brands are the ones that hit everybody's radar screens. Without active asset management, perhaps one would have been index-exposed to those names. We, in fact, were significantly below index-exposed, some areas not at all exposed to those businesses. We very much espouse active asset management.

Full stop.

Don't forget that a lot of that operating cost growth is due to the M&A that we brought on board again that different type of investment, but investment Nonetheless in growth and most importantly, delivering for our clients a broader suite of high caliber investment products and client service.

The next question comes from Patrick David from Autonomous Patrick Your line is open. Please go ahead.

Okay.

Oh, Hey, good morning, everyone.

First question, we saw some big credit wobbles in the bank loan market October and clearly you mentioned that had an immediate impact on our bank loan and CLO fund flows have a higher level I'm just curious how your bank loan and CLO teams are reacting to those specific issues, how they're scrubbing the portfolio and to what extent those.

Roger Thompson: We select based on criteria and understanding the companies underlying, and we certainly think that in any world, separating the wheat from the chaff, which we do, and 350 people at our firm do every day, including fixed income folks, is very important. Now, remember also how we operate. We operate in the CLO world disproportionately. If you think about our securitized franchise and think about the five ETFs that we have that are over $1 billion, the largest one is the AAA CLOs. Just to remind folks about the construct of those, the CLO exposure, generally, no matter what grade it is, the CLO exposure generally has better cash flow protections to it. If you're in the AAA CLOs, if you're going to get hit, that basically means something like 70% or 75% of the loan portfolio in its entirety would have to default for you to get impacted.

These are having any impact on your discussions with the distributors of those products for you. Thank you.

Hey, Patrick Thanks for the question.

So so exactly as you describe it the wobbles are precisely why active asset management, particularly in fixed income.

Is so critical and across the board, particularly in fixed income.

And there are a couple of companies that wobbles out there I mean tricolor first brands are the ones that hits, everyone everybody's radar screens.

And without active asset management, perhaps one would've been index exposed to those names and we in fact were significantly below index expose some some areas not at all exposed.

Two to those to those businesses, so we very much.

Espouse active asset management, we select based on criteria in understanding the company's underlying and we certainly think that in any world.

Separating the wheat from the chaff, which we do in 350 people at our firm to everyday including fixed income folks is very important now and remember also how we operate.

Roger Thompson: It's actually a relatively safe area. Back in April, we saw some stresses in the market, obviously. What we found also is JAAA, JBB, given their size, given their competitive advantage in terms of a moat that they've built, sort of became the price discovery method for AAA and BBB CLOs overall. At that time, and again, at this time, nothing in our price action, nothing in our spread moves suggests that there is any feeling of contagion or sense of contagion in the marketplace. Active asset management, Patrick, to your core answer to your question, active asset management is why we've been able to do well in this environment and in environments going forward, hopefully. Any sense that the distributors are more or less concerned in distributing the product because of what's going on in the broader bank loan market? We're not hearing anything, to be fair.

We operated in the CLO World disproportionately if you think about.

Our securitized franchise and think about.

Five Etfs that we have that are over $1 billion. The largest one is the AAA CLO and just to remind folks about the construct of those.

Our CLO exposure generally no matter what grade it is the CLO exposure generally.

<unk> has better cash flow protections to it and if you are in the AAA CLO.

If youre going to get hit that basically means something like.

70, or 75% of the loan portfolio in its entirety would have to default for you get impacted so essentially a relatively.

Safe area.

Now again.

Back in April we saw some stresses in the market, obviously and what we found also is Jake replay to triple B given their size given their competitive advantage in terms of a moat that they've built sort of became the price discovery method for AAA and triple B cell those overall and at that time and again at this time.

Roger Thompson: You see the public ETF numbers, but I'm not hearing anything different at this point. Thanks, guys. Thanks. I think, Patrick, all volatility is different. As Ali said, in March and April, we had a dip there with some outflows in the CLO ETFs. From May all the way through the summer, through September, we had obviously very, very strong inflows. Everything's different, but short-term volatility. As Ali said, with the sort of we are the market in these things, you'd expect to see some price discovery. The next question comes from Brennan Hawken from BMO. Brennan, please go ahead. Your line is open. Good morning. Thanks for taking my questions. Very much, Ali, appreciate the comments about being limited in what you can say on the bid. I had some questions that are more process, not really about opining on the offer.

<unk>.

Nothing in our price action nothing.

Nothing in our spread moves suggest that there is any feeling of contagion or sense of contagion in the marketplace. So again active asset management Patrick to your core answer your question active asset management is y.

We've been able to.

To do well in this environment and an environment going forward hopefully.

And any sense that the distributors are more or less concerned and distributing the product because because of what's going on in the broader bank loan market.

Well, we're not hearing anything to be fair I mean, you see the public ETF numbers, but I'm not hearing anything different at this point.

Okay. Thanks, guys.

Roger Thompson: I was hoping you could maybe walk us through the special committee's process and timeline, how will updates be communicated as you progress, and whether or not there's been any interest expressed by strategic buyers now that Janus Henderson Group plc is formally in play. Hey, thanks for your question. I really appreciate it. From a process perspective, as best as I can tell, what I've been told is that the special committee will be going through a process over months, not weeks. Beyond that, we aren't commenting on the proposal at this time. Okay. Had to give it a try. All right. Your ETF progress has been great. Obviously, JAAA is a spread-sensitive product, right? When you get concerns about spreads, the flows will oscillate. Really encouraging to see how many products you've got now above $1 billion.

Thank you.

Yes.

Oh volatility is different again as Ali said in March and April we added we had a dip there with some with some outflows in.

In the CLO Etfs.

But for me all the way through the summer through September we had obviously very very strong inflows. So again everything is different.

But.

Short term volatility and as I said with a sort of we are the market. It makes things so you'd expect to see some price discovery.

The next question comes from Brennan Hawken from BMO Brendan. Please go ahead. Your line is open.

Good morning, Thanks for taking my questions.

Very much Ali appreciate the comments about being limited in what you can say on the bid but I had.

Questions that are more process not really about opining on the offer I was hoping you could maybe walk us through the special committee's process and timeline.

We will updates be communicated as you progress and whether or not there's been any interest expressed by strategic buyers know that genesis formally employed.

Roger Thompson: Specifically, you've got your first equity product, I believe, JSMD, which is approaching that threshold. Can you walk through your strategy for equity products within the active ETF construct and what your launch plans are as you progress and widen out the suite? Thank you. Sure. Let me just. I was going to say, while you're thinking about this sort of strategic answer, let me just make sure that, again, everyone's got the grounded facts. You're right. We're now operating a pretty sizable ETF franchise. It's about $40 billion. As at the end of September, that's 8%. That'll be up from, I don't know the number in front of me, but something like 2% or 3% a couple of years ago. Net flows into ETFs in the third quarter were $5.7 billion. Yes, the largest of those was JAAA in the high threes.

Hey, Thanks for your question I really appreciate it.

From a process perspective, best as I can tell and what I've been told is that the special Committee.

We'll be going through a process over months not weeks.

But beyond that we aren't commenting on the proposal at this time.

Okay had to give it a truck.

Alright, so so.

Yes.

Progress has been great.

Look obviously jacob ways spread sensitive products right and so when you get concerned about spreads.

Oh, Oh that will oscillate, but.

Really encouraging to see how many products you got now above $1 billion and specifically <unk> got your first equity product I believe J S. M D.

Which is approaching that threshold can you walk through your strategy.

Roger Thompson: JMBS, securitized income, JBB, you're right, SMIDCAP growth, short duration, were all in the hundreds of millions of dollars of flows. We're seeing some real diversification of flow behind JAAA, which is now a $25-plus billion product. Just to add to that, our philosophy is relatively simple and pretty consistent. We do things in a client-led way. What we believe our core competency is investing in the right companies, delivering good investment performance for folks with differentiated insights, disciplined investments, and delivering world-class service. We're happy to put in different packaging if clients want that different packaging. For example, we put in ETFs, we put in SITs, we put in SMAs to deliver on what our clients want. To be very, very clear, we're not believers in cloning. We don't think that makes sense. The products that we currently have in mutual funds are in mutual funds for a reason.

For equity products within the active ETF construct.

And what you and what your launch plans are as you progress and widen out the suite. Thank you.

Yeah.

Sure Let me just.

I was going to say well what are you thinking about the strategic answer let me just make sure that everyone's got the grounded facts. Yes. You are right. We are now operating at a pretty sizable ETF franchise, it's about $40 billion at the end of September that's 8% that'll be up from there.

The number in front of me, but it's something like two or 3% a couple of years ago.

Net flows into Etfs.

The quarter with $5 $7 billion.

Yes, the largest of those.

Jay AAA.

In the high threes.

That's J MBS securitized income Jay Triple B.

Yes, you're right Smid cap gross short duration will rule in the hundreds of millions of dollars of flows. So we're seeing some real some real.

Diversification of flow.

Behind behind J, AAA, which is now at 2025 plus billion dollar product.

Roger Thompson: There are some real benefits of being in mutual funds in terms of the accessibility, for example, that people can get mutual funds in. Cloning, it doesn't really make sense because it's not necessarily client-led need. We haven't heard of our clients, at least, maybe for others, but our clients, at least, saying, "Hey, let's turn these things into ETFs necessarily." For some areas, exactly as Roger described it, some of those businesses like JSMD, JSML, as well as some of the more exciting ones that we launched just very, very recently, JHAI, which is an AI ETF. It's not just the kind of high-flyer ETF. It's a really thoughtful, longer-term place to take advantage of AI shifts more broadly, so picks and shovels and everything else that we think from a longer-term perspective will benefit. JXX in the U.S.

And just to add to that.

Look our philosophy is relatively simple and pretty consistent we do things in a client led way.

What we believe our core competency is is investing in.

In the right companies.

Delivering investable good investment performance for folks with differentiate insights disciplined investments and delivering world class service.

We're happy to put it in different packaging, if clients want that different packaging.

For example.

We put in Etfs with Cit's goodness amazed to deliver on what our clients want to be very very clear, we're not believers in cloning, we don't think that makes sense.

The products that we currently have in mutual funds are in mutual funds for a reason there are some real benefits of being in mutual funds.

Roger Thompson: and JTXX in Europe, again, based on the USIT platform there. Those are transformational businesses that we invest in a very concentrated manner and deliver in ETF form. We are client-led in the way we develop our products, and they can take many, many different forms. ETF certainly is one of them that seems to be for the right investment strategy for the right client, the packaging that people are preferential to at this point. We have time for one final question. This will come from the line of Michael Cyprys from Morgan Stanley. Michael, please go ahead. Your line is open. Hey, good morning. Thanks for squeezing me in.

In terms of the accessibility for example that people can get mutual funds and so so plenty of it doesn't really make sense because it is not necessary client led need we haven't heard of our clients at least maybe for others, but our clients lease, saying, Hey, let's turn these things into ETF necessarily but for some areas exactly as Roger described at some of those businesses.

Like.

J S M D.

Jay small as well as some of the more exciting ones that we launched just very very recently J H AI, which is an AI ETF.

Roger Thompson: Just, Ali, as you're making investments across the business to drive growth, curious how you would characterize the level of speed at which you're investing in the business versus, say, a year ago, and how do you see that evolving into 2026? Does that stay at a similar pace? Might that accelerate? How do you think about that? Yeah, Michael, thank you very much for the question. It's a really insightful question, actually, because what typically happens, and I think we're there now, is that at the start of a kind of new strategy, which we started, call it three years ago, almost to your point. You invest a little bit and you wait for the reaction, right? It's kind of like a scientific method, right?

And if not just the kind of high Flyer ETF, it's really thoughtful longer term place to take advantage of AI shifts more broadly so picks and shovels and everything else that we think from a longer term perspective will benefit J X X in the U S. M. J T X X in Europe again based on the use of the platform there.

Those are transformational businesses that we invest in a very concentrated manner.

Liberty ETF form again, we our client led in the way, we develop our products and they can take many many different forms Etfs certainly is one of them that seems to be for the right investment strategy for the right client.

The packaging that people are preferential to at this point.

Roger Thompson: You have a hypothesis, you try it, you see what happens, and you get the response, and then you kind of add more fuel to the fire or not, right? When we started off the strategy, we had spread out a little bit, I guess, of where we're investing because we didn't really know what would hit, what wouldn't hit. We didn't know how the clients would respond, etc. Now we're in the process, effectively, of culling and focusing, for lack of a better word. You look at your overall expenses, you look at where they're going, you look at what the returns are from a growth perspective or other elements, right? Risk mitigation could be an element, future cost savings is an element, etc., and you readjust.

We have time for one final question this who come from the line of Michael <unk> from Morgan Stanley. Michael. Please go ahead. Your line is open.

Hey, good morning, Thanks for squeezing me in just as you're making investments across the business to drive growth. Just curious how you would characterize the level of speed at which you're investing in the business versus say a year ago and how do you see that evolving into 'twenty six does that stay at a similar pace it might that accelerate how do you think about that.

Yes, Michael Thank you very much for the question. It's a really it's a really insightful question actually because what typically happens and I think we are there now is that at the start of kind of new strategy, which we started call. It three years ago.

Roger Thompson: You can do that on a micro level, on a day-to-day basis, but you certainly have to look at it from a broader basis as well. That's the stage we're at right now, which is not so much from a quantum perspective, but from where we're going to invest. A much more focused look. It's a very good question, Michael, and I think you're right. We're at this point where we have now some experience. We have now some data. We know what's responding or not, and we can kind of focus in and hopefully get some ROI out of the business in particular areas and not kind of get lower ROIs in other areas. Hopefully, that helps. Great.

Almost your point.

Hugh you invest a little bit and you wait for the reaction right. It's kind of like a scientific method right. You have a hypothesis you try it see what happens and you get a response and then you kind of.

Add more fuel to the fire or not right and and when we started off the strategy, we had spread out a little bit I guess of where we're investing because we didn't really know what hit what wouldn't hit we did not know how the clients would respond et cetera, and so now we're in the process effectively of culling and focusing for a lack of about a word.

Roger Thompson: Just as a follow-up question, when you're thinking about the investments you're making in the business, how long of the list of items that do not make the cut to get funded don't get funded to maybe the manner that you'd like, what's the rationale for why those don't get funded? If you had more resources, might those be able to be funded? I imagine at some point organizational capacity bandwidth comes into play. I guess, how close are you running into that organizational capacity constraint? Roger can chime in on this. I think we are spending in the right areas and seeing the results come through. To your earlier question, you're right. Some of the areas we just are unable to spend more. We can't launch 100 products, right? Maybe we can, but we can't launch 1,000 products, right? We can only launch a few of them.

And so you look at your overall expenses you look at where they are going you look at what the returns are from a growth perspective or other elements right risk mitigation could be an element future cost savings as an element et cetera, and you readjust and so you can do that.

On a micro level on a day to day basis, but you certainly have to look at it from a broader basis as well and Thats. The stage were at right now which is not so much from a quantum perspective, but from a where we're going to invest.

I'm much more focused look so it's a very good question, Michael and I think you're right. We're at this point, where we have now some experience. We have now some data we know what's responding or not and we can kind of focus in and hopefully get some ROI out of the business in particular areas and not kind of get lower rois and other areas hopefully that helps.

Roger Thompson: There's some organizational capacity there. By the way, some of that is why we're looking at Aladdin as an underlying tool to be able to allow us to get more capacity on things. That's why we're, as I've talked before, using technology more broadly to help us do things more efficiently. I mentioned the RFPs, for example. Our RFPs have gone up about 100%. Since a couple of years ago, and we haven't added more cost there because we're using technology to help us out. We're trying to find ways, and we are finding ways to do that. I couldn't tell you how long the list is. I mean, as you can imagine, an organization our size, everybody wants something, but we're always focused on the ROI of it. I think we're being pretty disciplined and spending in the right ways. I think that's quite right, Ali.

Great and then just as a follow up question when Youre thinking about the investments youre, making in the business. How long is the list of items that do not make the cut to get funded don't get funded and maybe the manner that you would like what's the rationale for why those don't get funded if you had more resources might those be able to be funded or I imagine at some point organizational capacity bandwidth.

It comes into play I guess, how close are you running into that organizational capacity constraint.

Roger can chime in on this I think look I think we are.

Our spending in the right areas and seeing the results come through so to your earlier question Youre right some of the areas we.

Just are unable to spend more like we can't launch 100 products right, maybe we can but we can't launch 1000 products right.

Roger Thompson: I'm not the most popular guy around here because we are pretty strict on ROIs. Pleasingly, there is more demand than supply. Exactly as you said, Mike, that is two things. It is both money, and it is the ability to do things. Prioritizing things and prioritizing what some things are independent, some things are interrelated. You really need to understand those things in order to be able to say, "Yes, we can do this one," or, "We have to go a bit slow with this one because we're doing something else." That combination of capacity and cost is really critical to look at, but we are very disciplined in that. With this on our hand, back to Ali Dibadj for any concluding comments. Okay, thanks, Adam. Thank you all for joining the call today. I know it's a busy day.

We can only launched a few of them. So there is some of our initial capacity there by the way. Some of that is why we were looking at Aladdin as an underlying tool to be able to allow us to get more capacity on thing. That's why we're as I've talked before using technology more broadly to help us do things more efficiently I mentioned the Rfps for example, RFP.

<unk> have gone up about 100% since a couple of years ago, and we haven't added more costs there because we're using technology to help us out. So we're trying to find ways and we are finding ways to do that I Couldnt tell you how long. The list is I mean as you can imagine an organization of our size everybody wants something but we're always focused on the ROI of it so I think we're being.

Pretty disciplined and spending in the right ways.

Roger Thompson: I think this quarter continues to show our momentum, step by step, not overnight, but we are building towards sustainable growth. That's thanks to our IT, ops, legal, finance, people, risk and compliance, and other support functions. It's thanks to our world-class 500-plus client service teams. It's thanks to our outstanding group of 350-plus investment managers. To all of them, thank you, and let's continue to finish the year strongly on behalf of our clients, our shareholders, and our other stakeholders. Thanks, everybody.

Yeah, I think thats quite right.

I'm not the most popular guy around here, because we are pretty strict in rois.

And there are pleasingly, there is more demand than supply.

But as you exactly as you said, Mike that is two things it is base money.

And it is the ability to do things so prioritizing things in prioritizing some things are independent some things are interrelated.

So you really need to understand those things.

Just to be able to say, yes, we can do this one.

We have to go a bit slow with this one because we're doing something else. So that combination of capacity and cost is really critical to look at but we are very disciplined in that.

With this I'll now hand back to Alan <unk> for any concluding comments.

Okay. Thanks, Adam. Thank you all for joining the call today I know, it's a busy day I think this quarter continues to show our momentum step by step not overnight, but we are building towards sustainable growth.

Thanks to our it ops legal finance people risk and compliance and other support functions. It's thanks to our World Class 500, plus client service teams is thanks to our outstanding group of 350 plus investment managers.

And to all of them. Thank you and let's continue to finish the year strongly on behalf of our clients our shareholders and our other stakeholders. Thanks everybody.

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