Janus Henderson's Q4 2024 Earnings Call: Contradictions in ETF Strategy, Institutional Growth, and Fixed Income Performance

These are the key contradictions discussed in Janus Henderson's latest 2024Q4 earnings call, specifically including: ETF strategy and expansion, institutional pipeline and client engagement, fixed income performance and flow momentum:



Financial Performance and Flow Improvements:
- Janus Henderson reported a 13% increase in total assets under management in 2024, partly reflecting strong markets and positive net flows.
- The company's net management fee rate remained stable at 48.6 basis points, only declining 1 basis point over the last two years.
- The improvement in net flows and fee stability were driven by diversified regions and investment strategies, as well as effective fee management strategies.

ETF Expansion and Success:
- Janus Henderson's ETF platform grew to rank eighth globally in terms of active ETF assets, with AUM topping $27 billion.
- The company launched its first active ETFs in Europe, including a European version of JAAA, with plans to introduce more European equities and fixed income ETFs in 2025.
- The growth in ETFs was attributed to leveraging acquisitions like Tabula, leveraging distinctive investment strategies, and entering maturing markets like Europe.

Institutional and Regional Growth:
- Institutional net inflows improved significantly, driven by multiple fundings between $100 million and $500 million in various regions.
- Positive net inflows were seen in Asia Pacific, with Asia particularly performing well and carrying momentum into 2025.
- Growth was supported by strategic efforts to build sustainable pipelines and engage with leading indicators in various regions.

Fixed Income and Alternative Strategies:
- The fixed income segment experienced positive flows, with notable contributions from active ETFs and Australian fixed income strategies.
- The company's alternatives capability saw net inflows of $500 million, primarily from pooled hedge funds.
- Performance in fixed income and alternatives was driven by strong investment returns, strategic acquisitions, and successful portfolio management.