Janus Henderson Group plc (NYSE:JHG) Q4 2022 Earnings Call Transcript

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Now where money is not free, and it doesn’t sound like it’s going to be free for a while, differentiating between the good companies and the not so good companies is a skill set that we are extraordinarily good at and will be in high, high demand. It just hasn’t been for the past little while. And so in this location that you’ve seen in the marketplace, I’m not surprised that our flows would be impacted negatively because it’s effectively a baby with a bath water, so to speak, from a savings perspective that you’ve seen. But going forward, feel very, very confident, very comfortable that our investment teams know how to differentiate that has and have not and that the market going forward will see even more differentiation between those 2 groups and create real alpha.

So my view is that the client demand will be there. Then it goes to the second point, which is can we deliver from a distribution perspective, these products to those clients. Well, some of our products, certainly the ones in the U.S., were actually closed for a while. They’re at their limit from a capacity perspective. Well, they are not at those limits anymore. We have opportunity to deliver them, and we have a distribution force as to some of the earlier questions in U.S. intermediary and EMEA intermediary, APAC intermediary that are very, I guess, thoughtfully targeting which clients to bring this to and can deliver those to our clients that want them. So it’s both of those prongs, and it’s a very good question and hopefully give you a little bit of color how we think about things.

Nigel Pittaway: And then just maybe as a follow-up, just, I mean, obviously, the fulcrum fees to get raised before, but obviously, there are 2 funds there that are causing the main negative. Is there any sort of hope that alpha will start to be delivered in those funds and reduce the negative? Or is that just a matter of wait and see?

Ali Dibadj: Well, your guess is a little bit as good as ours, right? We certainly will try to consider to improve our performance. That’s what we’re focused on. You can’t win every day, every time every portfolio. But certainly, over time, we’d like to improve the performance there. And that should back from a future perspective. But to be clear, that’s nothing that we model or put into our expectations.

Operator: That concludes our Q&A session for today. So I’ll hand you over to Ali Dibadj for closing remarks.

Ali Dibadj: Well, thanks, Emily. Thanks, everybody, for joining the call today and for your interest in Janus Henderson. I hope you get the feeling that we believe we have a great foundation to work from. We’re making thoughtful changes to reposition the firm to deliver better for our clients and their clients, for our employees, our shareholders, other stakeholders and this will take time, but we are on track. Thank you for joining.

Operator: Thank you. Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.

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