Janus Capital Group, Inc. (NYSE:JNS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 04, 2020 • 08:00 am ET


Janus Capital Group, Inc. (NYSE:JNS) Q4 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning. My name is Nicole, and I will be your conference facilitator today. Thank you for standing by, and welcome to the Janus Henderson Group Fourth Quarter and Full-Year 2019 Earnings Conference Call. [Operator Instructions]

In 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. Janus Henderson assumes no obligation to update any forward-looking statements made during the call. Thank you.

And now it is my pleasure to introduce Dick Weil, Chief Executive Officer of Janus Henderson. Mr. Weil, you may begin your conference.

Richard M. Weil

Welcome, everybody, to the fourth quarter and full year 2019 earnings call for Janus Henderson Group. I'm Dick Weil, and I'm joined as usual by our CFO, Roger Thompson.

In today's presentation, I'm going to touch on our full year business results, try and give a broader discussion on flows and talk a little bit about the business outlook for 2020. I'll then turn it over to Roger, who will go deeper into the quarterly results. And following our prepared remarks, we'll take questions from you as always.

So when I look back on 2019, the headline that I think will grab your eye is $27.4 billion in outflows. Now we're accountable for that result. That's the truth, and we need to own that. But it's important that we not let that mask a lot of other things going on in the business. We're seeing some very positive momentum in some very good parts of our business.

Our investment performance is best in class. That's starting to show through and generating positive flow results across many regions and products primarily in our retail businesses. Now these are smaller in AUM than some of the institutional flows, but a substantially higher fee business. Financial results are strong, and our business is generating good cash flow, which we were able to return to shareholders through both dividends and a $200 million share buyback.

Let's turn to Slide 2. I think first thing I want to call your attention to is our investment performance remains very strong, with 69%, 76% and 77% of assets beating their respective benchmarks over the one, three and five year time periods, which is another sequential improvement from prior year and is really an excellent result.

Next, we got to face the $27.4 billion in outflows, but with the benefit of markets, it's important to note that the ending AUM is actually 14% higher than a year ago and forms a good starting point for 2020.

Next, let's turn to financial results. We generated over $460 million in cash flow, which allowed us to complete both the $200 million buyback, and also we distributed $272 million in dividends. We are also announcing today, and