Roger Thompson: Yes. Let me start on that one Adam. Yes, we’ve told you in the past if we’ve got any large outflows that we’re expecting. And at the current time we don’t. And as Ali said, there is a lot of things in the early-to-mid phase. Some of those are quite large. They could come through. But as we said it’s going to take us time to rebuild that full pipeline to something where we can be consistent and delivering on an overall basis. So, it’s likely to be lumpy for a period of time. But at the current time nothing to tell you about. Ali do you want to pick up on equity?
Ali Dibadj: Sure. We are seeing more interest on that side. And the hypothesis that we had a little while ago is certainly being repeated back to us which is exciting for us and other active asset managers, which is wow it sounds like there’s going to be a real cost of capital here for a while. And so it makes fixed income attractive for sure but it also comes back to good and bad companies lead from chaff separation to create alpha. That something we’re hearing back from clients. We’re hearing back from the most sophisticated clients as well as end clients with whom we have connectivity with. So, they’re effectively saying gosh there’s a higher cost of capital a bad company that has to pay a higher cost of capital will fail a good company will be successful and that divergence between a good and bad company will again create alpha.
Honestly, that’s music to our ears right when we hear that. Given the performance that you see here that’s been consistent for such a long time, given the 340-plus investment professionals that we have at this firm who all they do, all day long, it’s our DNA understand wheat from chaff. Sometimes we short the chaff and invest in the wheat and sometimes we just pick off the wheat. I think that’s the positive part and grow. So, it’s music to our ears. We think there’s a real interest in a movement starting from institutional to consultants to intermediary end clients. Understanding that the tide will not lift all boats and active asset management is a real place people are paying attention to.
Adam Beatty: Excellent. Thank you both for that details. And then just wanted to ask a little bit more about the investment capabilities at Tabula. A lot of the detail is about distribution and the usage vehicle obviously very important. Just wondering how similar or different the investment strategies are to what Janus Henderson has here in the U.S.? And also they mentioned kind of an ESG capability. So, I don’t know how important that was in terms of your partnership with them? Maybe you could talk to that? Thanks a lot.
Roger Thompson: Let me start on that and then Ali can chip in. Yes we’ve currently got — what company has currently got we will currently have nine UCIT ETFs as Ali said earlier, it’s about $500 million. And it includes a range of Article 9 compares to order line funds. So, it’s a mixture of things. It’s largely fixed income at the moment. And the exciting thing for us is this is existing in 10 exchanges. It is sold through 15 countries. So, the opportunity for us is now to launch Janus Henderson product through that Tabular platform. And as we said that’s probably both fixed income and equity and we will be moving very fast to get those launched during 2024. So, there’s currently nine funds. They’re interesting things. We’ll certainly keep marketing those. They’re something interesting things for us to look at, but we’ll be adding to that with some of the investment talent that we have and we’ll hopefully get a good number of those launched this year.
Adam Beatty: I’m sorry I wasn’t sure if Ali want to add.
Ali Dibadj: No, I think it’s a great answer.
Adam Beatty: Okay, cool. Thank you very much. Appreciate it.
Ali Dibadj: Thanks Adam.
Operator: Thank you. [Operator Instructions] We have the next question from Michael Cyprys from Morgan Stanley.
Q – Michael Cyprys: Great. Thank you. Good morning. Congratulations on both of the transactions here, this morning. I wanted to ask on NBK, with the private markets deal. I was hoping, you could speak to some of the steps you’ll take to accelerate the growth at NBK. Do you feel that you need to expand sourcing and origination in order to meaningfully, drive growth or add more resources? Or is it really just about plugging it into global distribution? And maybe, you could talk about your vision for this over time. Thank you.
Ali Dibadj: Sure. Thanks for the question. We don’t believe, we have to invest meaningfully in the origination part to it. In fact, that’s something that we look at, when we look at these types of acquisitions, is the origination skill set and how much sort of capacity of the origination skill set has. Here, it’s quite strong. There continues to be an opportunity for them in fact to scale up, if they had the capital. And that’s where we come in. So point number one, not enormous investment in the origination they already have it. Number two is, plugging into the distribution that we have both in the region, but also globally is really how we can help them grow and help them get more deals. In fact, they’re leaving money on the table, NBK would say, because they have so much coming in, being very selective, keeping the same diversification, keeping the same credit quality, but could put more to work.
And so that’s where the plug-in to us makes a lot of sense. The third point that I’d mention is, of course, also the partnership we have with NBK Wealth, which allows us to cross-sell effectively both our products and also NBK’s products more broadly as that business grows. So we believe that this is a great foundational building block for our emerging market franchise, and for our private franchise in the emerging markets. So we’re quite excited. And again, I think it’s going to deliver great value for our clients and phenomenal value for our shareholders, given this is where the growth is happening.
Q – Michael Cyprys: And then just a follow-up on the Privacore relationship, great to hear about the new partnerships that you were alluding to earlier. I was just hoping, you could elaborate a bit more on your overall strategy and objectives here over the longer term, if you look out over the next five years if this is successful, what would that look like at Privacore?
Ali Dibadj: Sure. We are very energized by, what’s going on at Privacore right now, the progress to date in a very short period of time has been great. We mentioned a $200 billion alternative asset manager that’s currently in the market. We now are working with a very well-known technology investment firm to do the same. We have an agreement, with a $50 billion global private alternative asset manager that we’re bringing to market. So, it’s actually quite exciting to see the progress here. We’ll give you more updates on future quarters in more detail, but it’s very exciting for a couple of things, right? The hypothesis was that there is a desire among our clients particularly the private wealth clients, RIAs, warehouses, kind of access to very well-performing alternative shops, but can’t get access to them because there’s a missing service element and product creation element to it.
At that nexus, it’s Privacore to bring in best-in-class managers of alternative asset management, and pair that to the relationships in the warehouse with brokers dealers that Janus Henderson has and Privacore has. And we’re seeing that play out. And very excitingly, we’re seeing it play out with brand-name large alternative asset managers. These are not small folks. These are folks that you all, will know. And so it’s just the start. But if you expand that a little bit, there are beliefs out there that the call it low single-digit type exposure in the private wealth channel to privates and alternatives more broadly, will go up to something like 15% to 20% allocations in private wealth. Folks and other firms that have enormous amount of respect for and that some of you cover say, this is an $80 trillion AUM opportunity in private wealth.
And we think Privacore can be a really important part of that democratization of the alternative landscape to private wealth. We have currently a minority stake in Privacore, with very clear and well-established milestones to become full owners of Privacore. So, we are quite excited for the progress. I think the team there is fantastic. We have a great relationship, with them and they are showing us that that hypothesis is playing out.
Q – Michael Cyprys: Great. Thank you.
Operator: Thank you. I would now like to turn it back to Ali Dibadj for any final remarks.
Ali Dibadj: Thanks very much, Brika. I want to thank in this context of the quarter each and everyone, of our employees at Janus Henderson. And you’ve heard these calls before, we often speak about investments and client service and I want to just take a brief moment to thank all of the employees at Janus Henderson, all of the functions, the IT people, the ops people, legal, compliance, risk, finance, all the other folks as well that sometimes are unsung at Janus Henderson, without whom we just could not have delivered these very strong results. Everyone at Janus Henderson is hard at work, all across the world living our values, executing our strategy to deliver for our clients, their clients, our employees, shareholders and all of our stakeholders. So thanks for those folks, who are listening to the call. Thanks for investors and analysts and bye for now.
Operator: Thank you for joining. At this time, I confirm that does conclude the Janus Henderson First Quarter 2024 Results Briefing. You may now disconnect your lines and please, enjoy the rest of your day.
