Janus Henderson's Q1 2025: Contradictory Signals in ETF Growth, Fixed Income Performance, and M&A Strategy

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Market Conditions and Flows:
- Janus Henderson reported assets under management decreased only 1% to $373.2 billion, with market declines partially offset by $2 billion of positive net flows.
- Despite challenging market conditions, including changing monetary policies, US recession fears, and global trade uncertainty, the company delivered four consecutive quarters of positive net flows.
- The positive flows reflect a 44% increase in year-over-year gross sales, driven by strong client engagement and a diverse global client base.

Investment Performance and Strategy:
- At least 65% of assets beat respective benchmarks on a three, five, and ten-year basis, and over 70% of AUM in the top two Morningstar quartiles across all-time periods.
- The company continues to focus on long-term investment performance and quality themes amid market volatility, seeing opportunities in high-quality, innovative, and undervalued stocks.
- The strategic focus on quality and long-term performance supports the company's active asset management capabilities.

Financial Results and Shareholder Returns:
- Adjusted diluted EPS increased 11% to $0.79 compared to the first quarter of 2024, driven by higher average AUM and improved operating leverage.
- The company announced a 3% increase in the quarterly dividend and a new $200 million share buyback authorization, reflecting strong balance sheet health and flexibility.
- The financial performance supports strategic investments and a disciplined cost structure, enabling both organic and inorganic growth.

Strategic Partnerships and Growth:
- Janus Henderson announced a multifaceted strategic partnership with Guardian Life Insurance Company, managing a $45 billion investment-grade public fixed-income portfolio.
- This partnership expands Janus Henderson's institutional reach and positions it as a top 15 unaffiliated insurance asset manager, with pro-forma fixed-income AUM over 30% of pro-forma company-wide AUM.
- The agreement aligns with Janus Henderson's strategic pillars to diversify and amplify its business, creating new growth opportunities.