Janus Henderson Group plc (JHG) Earnings Call Transcript & Summary

Hello, everyone, and welcome to the Janus Henderson Group 2022 Annual General Meeting. Thank you for joining me today. I'm Richard Gillingwater, Chairman of Janus Henderson Group plc. And joining me today are members of your Board of Directors, all sitting in front. Quorum is present, so we can open the Annual General Meeting. Certain matters discussed at today's meeting may constitute forward-looking statements. Actual results could differ materially from those projected in forward-looking statements due to a number of factors, including, but not limited to, those described in the forward-looking statements and Risk Factors section of the company's most recent 10-K, 10-Q and other filings with the SEC. Janus Henderson assumes no obligation to update any forward-looking statements made during this call. Although the global challenges persist due to the COVID-19 pandemic, luckily, some aspects of society and industry are now returning to a level of normality. And it is a particular pleasure to be joined by my fellow Board Directors in person at this Annual General Meeting. I'd like to briefly touch on the firm's performance over the past year. I'm encouraged by the progress made in 2021, made possible by the continued commitment and exceptional efforts of our colleagues. Despite challenging net outflows of $16.2 billion, the firm finished the year with a record $432 billion of assets under management, an increase of 8% from the prior year, driven by strong global markets. Compared to our 2020 results, our adjusted operating margin improved 550 basis points to 43.5%, and our adjusted earnings per share improved 42% to $4.28. Throughout the year, we made progress on delivering on our strategy of Simple Excellence across each strategic pillar, and details of which were given in the year-end results call in February. Earlier today, we reported first quarter results. Despite the market environment challenged by geopolitical uncertainty, the war in the Ukraine and continued micro and macroeconomic concerns, our first quarter results reflect favorable long-term investment performance, robust financial results, progress towards our strategic initiatives, including the closing of the previously announced sale of our Quantitative Equities business, Intech, and of course, our commitment to returning capital to shareholders. We completed $43 million of share buybacks in the first quarter. And today, we announced that the Board declared a 3% increase of the quarterly dividend to $0.39 per share and authorized a new on-market buyback program of $200 million to be completed prior to our 2023 AGM. Including the $628 million return to shareholders in 2021 through dividends and buybacks, this exemplifies our dedication to active capital management, balancing the needs and investment opportunities of the business with shareholder interest. Before concluding my opening remarks, I'd like to thank Dick Weil, who retired as our Chief Executive Officer and as a Board member at the end of March, for his service over his 12-year career at the company. His efforts have been instrumental in transforming Janus Henderson into the global franchise it is today. As we announced in late March, we are very pleased to have appointed Ali Dibadj to lead Janus Henderson as our next CEO. We believe that he both understands our business and has the necessary strategic expertise to help drive the firm's next steady phase of growth for the benefit of our clients and shareholders. On behalf of the Board, I also want to extend my appreciation to Roger Thompson, who has stepped up to the role of interim CEO until Ali is able to join in June. I would also like to take this opportunity to formally welcome the Board, Nelson Peltz and Edward Garden, who represent our largest shareholder, Trian partners, and who had deep industry experience, fresh perspectives and valuable insights to complement members' skill sets. And in addition, we would like to recognize Glenn Schafer, who is retiring from the Board following the conclusion of this AGM, for his many years of distinguished service to the company, both as Chairman of Janus Capital Group and Deputy Chairman of Janus Henderson Group. Janus Henderson has greatly benefited from Glenn's dedication, judgment and professionalism, and we wish him the best. So in conclusion, we remain encouraged about the prospects for the company as our business fundamentals remain solid, and we continue to make significant progress to our long-term strategic objectives. On behalf of the Board, I'd like to commend all our employees for their continued hard work and dedication and express gratitude to our shareholders and clients for their continued support. And now to the formal items of business. Notice of Annual General Meeting and proxy statement were sent or made available to all Janus Henderson Group shareholders, and I hope you are all content as I will not read out the news in full. I remind you the votes needed to pass the proposals as required by our articles. Proposals 1 to 3, 5, 6 and 9, as ordinary proposals, require votes in favor of more than 50% of the votes cast. Proposals 8 and 9, as special proposals, require votes in favor of at least 2/3. On Proposal 4, the alternative among 1, 2 or 3 years that receives the highest number of votes cast will be deemed to be the frequency preferred by our shareholders. I will proceed and now begin with the first proposal. So Proposal 1.1 approves the election of Ms. Davis as director. Proposal 1.2 approves the election of Ms. Desai. Proposal 1.3 approves the election of Mr. Diermeier. Proposal 1.4 approves the election of Mr. Dolan. Proposal 1.5 approves the election of Mr. Flood Jr. Proposal 1.6 approves the election of Mr. Garden. Proposal 1.7 approves the election of myself, Mr. Gillingwater. Proposal 1.8 approves the election of Mr. Kochard. Proposal 1.9 approves the election of Mr. Peltz. And Proposal 1.2 approves -- 1.10 approves the election of Ms. Seymour-Jackson. Proposal 2 approves an increase in the cap on the aggregate annual compensation for nonexecutive directors. Proposal 3 is an advisory proposal to approve the company's executive compensation as disclosed in the proxy statement. This is called a say-on-pay vote. Proposal 4 is an advisory proposal to approve the frequency of future say-on-pay votes. Proposal 5 approves the global employee stock purchase plan. Proposal 6 approves the 2022 deferred incentive plan. Proposal 7 authorizes the company to purchase its own shares to a limited extent. Proposal 8 authorizes the company to purchase its own CDIs to a limited extent. And Proposal 9 approves the reappointment of PwC as auditors of the company and renews the Audit Committee's authority to agree their remuneration. That completes a summary of the proposals. We will now conduct the polls for the proposals included in the company's Notice of Annual General Meeting and proxy statement. And I appoint Erin Crosby of Computershare as the Inspector of Election, also known as the returning officer for the conduct of the polls. If there are any shareholders present in Denver who have not submitted their voting cards, then please do so now. I don't think there are. [Voting]

So I now direct the Inspector of Elections to count the votes and report the results to me in due course. The Inspector of Election has already provided me with her preliminary report on the voting. All proposals have received sufficient votes to pass and are therefore adopted. Final voting results will be announced to the NYSE and the ASX, will be disclosed in the Form 8-K, to be filed with the SEC and will also be published on our website. So that concludes the formal business of the AGM, and I now declare the meeting closed. I thank you all for being loyal shareholders of Janus Henderson, and we look forward to welcome you to the AGM next year. Thank you all very much.