Janus Henderson Group PLC (ASX: JHG) is an asset management holding entity founded in 1934. The group provides services to retail, institutional, and HNI clients. JHG handles equity, fixed income, and balanced funds for its clients.
The company was able to post a good performance in 2018 despite challenging conditions. On the Investment performance front, the company saw the majority of its AUM outperforming benchmark over the long-term time horizon, ranging from one, three, and five-year periods. 8 out of the 10 largest US managed equity asset portfolios beat the benchmarks over one year post the fees. More than 60% of mutual fund AUM is in top 2 Morningstar quarterlies over one, three and five years. Further, 55% of the US mutual funds have a 4 or 5-star Overall Morningstar rating.
On the Client relationships front, the company witnessed a gain in market share, in the US retail channel. It has also made inroads by winning new institutional business across all global regions. The company reported growth in Multi-asset capability with a 6 percent organic growth during the year 2018. Operationally, the company has aggressively met its target, and it achieved cost synergy target of US$125 million almost 18 months ahead of the plan. The company strengthened its team by hiring high calibre talent. The company rewarded the shareholders with a US$275 million dividend pay-out and completion of US$100 million share buyback.
For FY18, JHG reported a marginal increase in adjusted revenue coming in at US$1,859.7 million, up by 1 per cent on a year-on-year basis, aided by higher management fees which offset lower performance fees. End of the period AUM was down by 11% from prior year, due to negative market returns in 4Q18. On the operational margin parameters, the company reported an adjusted operating margin of 39% which was lower as compared on a Year-on-year basis. The FY18 dividends per share were up by 17% compared to the prior year.
The company has been efficiently managing its capital, and it is committed to returning the excess capital to its shareholders; this is evident from the fact that the company has consistently maintained or increased the dividend paid to its shareholders. The company has also rewarded shareholders by a US$100 million on market share buy-back and recently, on 4 February the company announced an additional on-market share buyback of up to US$200 million.
In 3Q17 JHG , the company declared a dividend per share of US$0.32 resulting in US$63.7 million cash pay-out to shareholders and in 3Q18 the company increased its dividend per share to US$ 0.36, a 12.5% increased YOY and a share buyback of US$ 49.9 million, resulting in a total cash pay-out of US$ 121 million, a 90% increase.
Quarterly Capital Return (Source: Company Report)
The shares of JHG last traded at A$34.150 on the ASX (As on 12 April 2019) and considering the latest ASX updated data, the company’s dividend yield stands at a healthy 5.81%. Below is a snapshot of the company’s annual dividend in AUD.
Dividend History (Source: ASX)
JHG shares have delivered a YTD return of 15.74%. It has delivered a return of 0.30%, 14.14%, and 1.47% in the past six months, three months, and one-month respectively.
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