Janus Henderson Group PLC at Morgan Stanley US Financials, Payments & CRE Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : <_ALACRA_META_ABSTRACT>Great. Great to hear. So you joined the firm about two years ago. Maybe you could talk about how your priorities have evolved since you've joined as CEO and how you feel the business has changed the most and what excites you most about the future?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. And you've outlined three strategic pillars. First being protect and grow the core business. Second, to amplify the strengths, and third to diversify. Want to dive into each of those, but maybe first before we do which of the three do you feel that you are maybe further along with and which opportunity do you think could be the biggest needle mover for Janus Henderson?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Why don't we just dig into them, starting with protect and grow the core franchise, the intermediary business is a core focus here. You posted inflows in the channel in the first quarter. US intermediary is now showing inflows for now three consecutive quarters. So maybe you could just talk a little bit about some of the steps that you're taking in the US and then we'll come back with separate question on Europe. Just in the US, what is driving the success there, what are some of the steps that you've been taking and how can you build on that as you look out from here?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : So what do we do?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Moving over to Europe and LATAM, the intermediary channel they are seeing improved outflows. How are you looking to drive change and improve results overseas within the intermediary channel?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : And as you look across those four regions and you think about the products that you have overseas, any particular product set or country that stands out within the intermediary channel you're most excited about that you see the biggest potential.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Moving over to your second pillar, which is to amplify your strengths. Here your institutional business had a lot of success last year with some very large fundings. Maybe you could talk a little bit about how you're going out rebuilding the pipeline from here, what strategies and parts of the institutional marketplace are you seeing more traction?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Anything to be mindful of near term just in terms of that pipeline rebuild?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Okay. Great. ETFs, active ETFs you guys have had tremendous strength across the board, in particular with your CLO ETF JAAA, that's now over $10 billion of AUM. Congratulations on that, nearly four years. Can you just talk a little bit about the go-to-market strategy with this product. What do you see driving the success and how might you apply, any sort of lessons learned here elsewhere?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : You provided a number of newer strategies to the marketplace over the past couple of years, including some income and alternative products across a range of whole different vehicles. Maybe you could talk a bit about the pipeline, new product pipeline, how that looks today, what we might see from Janus Henderson over the next year or two in terms of new products?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. And that's a great segue to the whole next set of questions starting with Tabula. You're extending your ETF business with this recently announced acquisition of Tabula European ETF manager, I think they have about $500 million of AUM across nine different products. I guess why acquire versus building out an ETF lineup since you already have footprint in Europe, you built out organically in the US over many years? What attracted you to Tabula?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Just sticking with that for a moment. With mutual funds, there's established revenue share arrangements with the intermediary platforms and sales commissions for your own team. But maybe you could talk about how that differs with ETFs, particularly in Europe, as you're navigating that versus the US.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Now shifting gears to the last prong of your strategy that is to diversify. Let's talk about your recently announced acquisition or strategic partnership -- excuse me with the wealth management arm of National Bank of Kuwait and the acquisition of their private investment team there. Can you talk about your vision here? How does this partnership expand your access to pools of capital in the Middle East?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : And they're primarily private equity, but they also have (inaudible) primarily private credit, but they also have some private equity capability.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Okay. And maybe you could talk a little bit about some of the steps you're going to take to help accelerate the growth you mentioned, helping them, I guess, gather AUM for them to be able to deploy and invest? How are you going to go about doing that? And maybe just share some thoughts around distribution, how you're thinking about broadening that out? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 10, 2024 / 3:00PM, JHG.N - Janus Henderson Group PLC at Morgan Stanley US Financials, Payments & CRE Conference

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : And can you give us a little bit of a flavor of the type of private credit decision as a sponsor finance, direct lending, structured credit.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Shifting over to Privacore, you acquired a 49% stake in Privacore a couple of years ago that is democratizing access to alternatives, they're working with third party managers there. Can you talk about their approach for the marketplace and update us on the business there?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. We're almost up on time. Maybe final question here just on AI, getting a lot of attention across many different sectors. I guess how do you think about the role of artificial intelligence in terms of the role that will play in asset management? Is this more of an expense efficiency play or (inaudible) be had? Are there revenue opportunities here? How is Janus Henderson experimenting with this today and what's your outlook here over the next couple of years?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Anything you'd like to elaborate on in terms of where you're finding the most success or any most compelling use cases at this point?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Very exciting. I have to leave it there. Thank you so much Ali, appreciate you taking the time.