Janus Henderson Group plc (JHG): Business Model Canvas [10-2024 Updated]
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Janus Henderson Group plc (JHG) Bundle
Understanding the business model of Janus Henderson Group plc (JHG) reveals how this prominent asset management firm navigates the complex financial landscape. With a focus on investment management and advisory services, JHG leverages key partnerships, a diverse product range, and a commitment to sustainable investing to deliver value to its clients. Dive into the essential components of JHG's business model canvas to discover how they create tailored investment solutions for a variety of customer segments.
Janus Henderson Group plc (JHG) - Business Model: Key Partnerships
Collaborations with third-party intermediaries for distribution
Janus Henderson Group plc collaborates with various third-party intermediaries to distribute its investment products. As of September 30, 2024, the company's assets under management (AUM) through intermediary channels reached approximately $213.8 billion, reflecting a growth of 6% from the previous quarter.
Distribution and servicing fees are primarily passed through to these intermediaries, with JHG collecting fees that are either specified in the product prospectus or included in the management fees. For Q3 2024, management fees collected amounted to $502.8 million, an increase of 16% year-over-year from $434.9 million in Q3 2023.
Partnerships with asset management firms
Janus Henderson has established strategic partnerships with several asset management firms to enhance its product offerings and expand market reach. This includes collaborations to manage specific investment strategies and share resources. In Q3 2024, the company reported net inflows of $0.4 billion, indicating a positive reception of its investment products in the market.
As of September 30, 2024, JHG's AUM was reported at $382.3 billion, marking a significant increase of 24% year-over-year.
Strategic alliances with financial institutions
Strategic alliances with financial institutions are crucial for JHG's distribution model. These partnerships enable the firm to leverage the distribution networks of banks and other financial service providers. The company has seen a strong performance in its fixed income products, with 98% of fixed income AUM outperforming benchmarks over the last year.
| Partnership Type | Financial Institution | Impact on AUM | Performance Relative to Benchmarks |
|---|---|---|---|
| Strategic Alliance | Various Banks | $382.3 billion | Overall: 75% outperforming |
| Joint Ventures | Asset Management Partners | $10.4 billion | Alternatives: 100% outperforming |
Joint ventures for market expansion
JHG actively engages in joint ventures to explore new markets and expand its global footprint. The company completed acquisitions, including Tabula and NBK Capital in Q3 2024, which contributed to an increase in AUM by approximately $1.1 billion. The focus on joint ventures has allowed JHG to diversify its investment strategies and reach new client segments.
Investment performance data as of September 30, 2024, indicated that 100% of alternative strategies managed through joint ventures outperformed their respective benchmarks.
Janus Henderson Group plc (JHG) - Business Model: Key Activities
Investment management and advisory services
Janus Henderson Group plc specializes in providing investment management and advisory services across various asset classes. As of September 30, 2024, the company reported Assets Under Management (AUM) amounting to $382.3 billion, reflecting a significant increase of $47.4 billion or 14% from December 31, 2023. This growth was primarily driven by positive market performance of $43.6 billion.
Development of investment products and strategies
The firm is dedicated to the continuous development of innovative investment products and strategies tailored to meet client needs. The following table summarizes the average AUM by capability for the three and nine months ended September 30, 2024, compared to 2023:
| Capability | Average AUM (3 months ended Sept 30, 2024) (in billions) | Average AUM (3 months ended Sept 30, 2023) (in billions) | Average AUM (9 months ended Sept 30, 2024) (in billions) | Average AUM (9 months ended Sept 30, 2023) (in billions) |
|---|---|---|---|---|
| Equities | $229.6 | $196.9 | $221.1 | $191.5 |
| Fixed Income | $78.5 | $66.1 | $73.6 | $65.1 |
| Multi-Asset | $52.1 | $47.7 | $50.9 | $47.1 |
| Alternatives | $9.7 | $9.4 | $9.1 | $9.8 |
| Total | $369.9 | $320.1 | $354.7 | $313.5 |
Risk management and compliance oversight
Risk management and compliance are integral to Janus Henderson’s operations, ensuring adherence to regulatory standards while managing client investments effectively. The firm reported a total operating income of $164.7 million for the third quarter of 2024, with an operating margin of 26.4%, representing an increase from 23.4% in the same quarter of 2023.
Client relationship management and servicing
Client relationship management is a core activity that underpins Janus Henderson's service delivery. The company achieved third-quarter 2024 net inflows of $0.4 billion, demonstrating its effectiveness in maintaining and growing client relationships. The following table outlines the AUM by client type as of September 30, 2024:
| Client Type | Closing AUM (Sept 30, 2024) (in billions) | Net Sales (3 months ended Sept 30, 2024) (in billions) | Redemptions (3 months ended Sept 30, 2024) (in billions) |
|---|---|---|---|
| Intermediary | $213.8 | $13.3 | ($11.5) |
| Self-directed | $87.4 | $0.5 | ($1.4) |
| Institutional | $81.1 | $2.3 | ($2.8) |
| Total | $382.3 | $16.1 | ($15.7) |
Janus Henderson Group plc (JHG) - Business Model: Key Resources
Expertise of investment professionals
Janus Henderson Group plc employs a skilled workforce of over 2,000 employees, including approximately 450 investment professionals. This expertise is crucial for generating strong investment performance across its various funds. As of September 30, 2024, 75% of the assets under management (AUM) outperformed their relevant benchmarks over a one-year period.
Proprietary investment management technology
The company utilizes advanced proprietary investment management technology to enhance its investment processes. This includes data analytics and risk management systems that support decision-making for its investment teams. The total assets under management (AUM) as of September 30, 2024, were $382.3 billion, reflecting a growth of $47.4 billion or 14% from the end of 2023.
Strong brand reputation in asset management
Janus Henderson has established a strong brand reputation in the asset management sector, bolstered by a history of performance and client trust. The company has been recognized for its investment capabilities and has received numerous industry awards, enhancing its market position. As of the third quarter of 2024, the firm reported a net income of $27.3 million, demonstrating its financial stability and brand strength.
Diverse range of investment products
Janus Henderson offers a wide array of investment products, including equities, fixed income, multi-asset, and alternatives. The breakdown of AUM by capability as of September 30, 2024, is shown in the following table:
| Capability | AUM ($ billions) |
|---|---|
| Equities | 237.1 |
| Fixed Income | 81.3 |
| Multi-Asset | 53.5 |
| Alternatives | 10.4 |
| Total | 382.3 |
This diverse product range allows Janus Henderson to cater to various client needs and preferences, further solidifying its competitive position in the market.
Janus Henderson Group plc (JHG) - Business Model: Value Propositions
Customized investment solutions for clients
Janus Henderson Group plc offers tailored investment solutions that cater to the specific needs of a diverse client base. As of September 30, 2024, the company reported a total of $382.3 billion in Assets Under Management (AUM), representing a 24% increase from $308.3 billion in the previous year. This growth reflects the effectiveness of their customized strategies, which include active management across various asset classes.
Strong historical performance and track record
The company has demonstrated robust historical performance, with 75%, 71%, 67%, and 85% of its AUM outperforming relevant benchmarks over one, three, five, and ten years, respectively. Such a strong performance record enhances client trust and loyalty, contributing to ongoing inflows and retention of assets.
Access to a wide range of asset classes
Janus Henderson provides clients with access to a variety of asset classes, including equities, fixed income, multi-asset, and alternatives. The AUM by capability as of September 30, 2024, is as follows:
| Capability | Closing AUM (in billions) |
|---|---|
| Equities | $237.1 |
| Fixed Income | $81.3 |
| Multi-Asset | $53.5 |
| Alternatives | $10.4 |
| Total | $382.3 |
This diversified offering allows clients to build comprehensive portfolios that meet their unique investment objectives.
Commitment to sustainable investment practices
Janus Henderson is committed to sustainable investment practices, integrating Environmental, Social, and Governance (ESG) factors into their investment processes. The firm continues to enhance its ESG capabilities, evidenced by the growth in sustainable strategies within their AUM. As of September 30, 2024, the company reported that ESG-focused investments have seen substantial inflows, reflecting a growing trend among investors towards sustainability.
Janus Henderson Group plc (JHG) - Business Model: Customer Relationships
Dedicated client service teams for personalized support
Janus Henderson Group plc (JHG) has established dedicated client service teams that provide personalized support to their clients. These teams are instrumental in managing relationships with a diverse client base, which includes institutional investors, intermediaries, and self-directed clients. As of September 30, 2024, the company's total Assets Under Management (AUM) stood at $382.3 billion, reflecting a robust engagement with clients and a commitment to personalized service.
Regular communication through updates and reports
The firm prioritizes regular communication with its clients through comprehensive updates and reports. This approach allows clients to stay informed about market conditions, investment performance, and changes in their portfolios. For instance, JHG reported an increase in management fees of $67.9 million during the third quarter of 2024, attributed to improved average AUM, demonstrating the effectiveness of their communication strategy.
Educational resources and seminars for clients
Janus Henderson actively provides educational resources and seminars aimed at enhancing client knowledge. These initiatives include workshops, webinars, and detailed reports that cover various investment strategies and market trends. The firm has noted that 63% of its equity AUM outperformed benchmarks over the past year, a testament to the value of educating clients about effective investment strategies.
Loyalty programs and incentives for long-term clients
To foster loyalty, Janus Henderson offers various programs and incentives aimed at retaining long-term clients. These include performance-based fee structures and preferential rates for clients who maintain significant investments over extended periods. The firm reported a total net income of $287.1 million for the nine months ended September 30, 2024, showcasing the financial benefits of retaining a loyal client base.
| Client Type | Closing AUM (in billions) | Net Sales (in millions) | Redemptions (in millions) |
|---|---|---|---|
| Intermediary | $213.8 | $13.3 | ($11.5) |
| Self-directed | $87.4 | $0.5 | ($1.4) |
| Institutional | $81.1 | $2.3 | ($2.8) |
Through these customer relationship strategies, Janus Henderson continues to enhance client satisfaction and drive growth in their AUM, which increased by $47.4 billion or 14% since December 31, 2023.
Janus Henderson Group plc (JHG) - Business Model: Channels
Direct sales through financial advisors and brokers
Janus Henderson Group plc utilizes a network of financial advisors and brokers to facilitate direct sales of its investment products. As of September 30, 2024, approximately $213.8 billion of its assets under management (AUM) were attributed to intermediary clients, reflecting an increase from $183.4 billion on December 31, 2023. The company reported net sales of $16.1 billion during the third quarter of 2024, driven by strong demand from these intermediaries.
Digital platforms for online investment management
Janus Henderson has invested significantly in digital platforms to enhance online investment management services. These platforms allow self-directed investors to access a range of investment products. As of September 30, 2024, self-directed clients accounted for $87.4 billion in AUM. The company has seen positive trends in online transactions, with a reported increase in digital engagement leading to net inflows of $0.4 billion in the third quarter of 2024.
Institutional partnerships for large-scale investments
Institutional partnerships are a critical channel for Janus Henderson, contributing significantly to its overall AUM. As of September 30, 2024, institutional clients represented $81.1 billion of AUM. The company has established relationships with various institutional investors, facilitating large-scale investments and fostering long-term partnerships. These partnerships have led to net institutional sales of $2.3 billion in the third quarter of 2024.
Marketing through financial publications and events
Janus Henderson actively engages in marketing through financial publications and industry events to enhance brand visibility and attract new clients. The company reported a 15% increase in operating expenses attributed to marketing initiatives aimed at enhancing its presence in key financial markets. Additionally, participation in major financial conferences has proven effective in generating leads, contributing to a reported $624.8 million in total revenue for the third quarter of 2024.
| Channel | AUM (as of September 30, 2024) | Net Sales (Q3 2024) | Percentage Growth (2023-2024) |
|---|---|---|---|
| Financial Advisors and Brokers | $213.8 billion | $16.1 billion | 16% |
| Digital Platforms | $87.4 billion | $0.4 billion | 13% |
| Institutional Partnerships | $81.1 billion | $2.3 billion | 9% |
| Marketing through Publications/Events | — | — | 15% increase in marketing expenses |
Janus Henderson Group plc (JHG) - Business Model: Customer Segments
Individual investors seeking wealth management
As of September 30, 2024, Janus Henderson Group plc managed approximately $382.3 billion in total Assets Under Management (AUM), with individual investors contributing significantly to this total. The firm offers tailored investment solutions to individual investors, focusing on personalized wealth management strategies that align with their financial goals.
In Q3 2024, the self-directed investor segment accounted for $87.4 billion in AUM, reflecting a growth trend as more individuals seek to engage directly with investment products. This segment benefits from Janus Henderson's diverse product offerings, including mutual funds and retirement accounts, designed specifically for individual investor needs.
Institutional investors, including pension funds
Institutional investors represent a critical customer segment for Janus Henderson, with a reported AUM of $81.1 billion as of September 30, 2024. This category includes pension funds, endowments, and foundations, which require sophisticated investment strategies and risk management solutions.
Janus Henderson provides tailored investment strategies to meet the specific needs of institutional clients, focusing on long-term capital growth and income generation. The firm’s expertise in Fixed Income has particularly attracted institutional investors, with $81.3 billion in AUM attributed to fixed-income products as of Q3 2024.
Financial intermediaries and advisors
Financial intermediaries and advisors are integral to Janus Henderson's distribution strategy, with this segment holding $213.8 billion in AUM as of September 30, 2024. This includes a mix of independent advisors and large brokerage firms that utilize Janus Henderson's investment products for their client portfolios.
Janus Henderson supports financial intermediaries with comprehensive resources, including marketing materials, training, and dedicated sales support. The firm recognizes the importance of these partnerships in reaching a broader audience and enhancing service delivery to end clients.
High-net-worth individuals and families
High-net-worth individuals and families represent a significant and growing segment for Janus Henderson. The firm provides bespoke wealth management services, including estate planning, tax optimization, and investment management tailored to the unique needs of affluent clients.
As of Q3 2024, Janus Henderson's wealth management services are positioned to serve clients with AUM in excess of $1 million, offering personalized service and access to exclusive investment opportunities. This segment is increasingly important as Janus Henderson seeks to expand its footprint in the competitive wealth management landscape.
| Customer Segment | AUM (in billions) | Key Characteristics |
|---|---|---|
| Individual Investors | $87.4 | Personalized wealth management solutions |
| Institutional Investors | $81.1 | Tailored investment strategies for long-term growth |
| Financial Intermediaries and Advisors | $213.8 | Support and resources for investment distribution |
| High-Net-Worth Individuals and Families | Data not specified | Bespoke wealth management services |
Janus Henderson Group plc (JHG) - Business Model: Cost Structure
Employee compensation and benefits
Total employee compensation and benefits for the three months ended September 30, 2024, amounted to $177.0 million, an increase from $149.2 million in the same period of 2023. For the nine months ended September 30, 2024, the total reached $509.1 million, compared to $437.2 million for the same period in 2023, reflecting a 19% increase year-over-year.
Key components of this increase include:
- Variable compensation increased by $22.3 million due to higher profitability.
- Base-pay increases contributed $2.4 million.
- Foreign currency translation effects accounted for $3.1 million.
Technology and infrastructure investments
While specific figures for technology and infrastructure investments were not detailed in the latest reports, overall operating expenses for the third quarter of 2024 included $5.5 million for depreciation and amortization, which can partially relate to technology investments. For the nine months ended September 30, 2024, this expense totaled $15.9 million.
Marketing and client acquisition costs
Marketing expenses for the three months ended September 30, 2024, were $8.3 million, down from $9.6 million in the same period of 2023. For the nine months ended September 30, 2024, marketing costs totaled $26.1 million, slightly declining from $27.7 million in 2023.
Compliance and regulatory expenses
Compliance and regulatory expenses are typically included within the general administrative costs. For the three months ended September 30, 2024, general, administrative, and occupancy expenses were $77.4 million, compared to $73.7 million in the same period of 2023. For the nine months ended September 30, 2024, these costs reached $212.9 million, increasing from $207.0 million in 2023.
| Cost Category | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Employee Compensation and Benefits | $177.0 | $149.2 | $509.1 | $437.2 |
| Long-term Incentive Plans | $40.5 | $32.6 | $127.3 | $125.7 |
| Distribution Expenses | $133.7 | $116.0 | $382.7 | $342.6 |
| Marketing | $8.3 | $9.6 | $26.1 | $27.7 |
| General, Administrative, and Occupancy | $77.4 | $73.7 | $212.9 | $207.0 |
| Depreciation and Amortization | $5.5 | $5.8 | $15.9 | $18.0 |
| Total Operating Expenses | $460.1 | $399.3 | $1,316.7 | $1,193.3 |
Janus Henderson Group plc (JHG) - Business Model: Revenue Streams
Management fees from assets under management
Janus Henderson Group plc (JHG) generates significant revenue through management fees derived from its assets under management (AUM). As of September 30, 2024, JHG reported management fees of $502.8 million for the third quarter, reflecting an increase from $434.9 million in the same period in 2023. For the nine months ended September 30, 2024, management fees totaled $1,435.0 million, up from $1,273.0 million year-over-year. This represents a growth rate of 16% for the third quarter and 13% for the nine-month period.
Performance fees based on investment returns
Performance fees are another revenue stream for JHG, although they are more variable. In the third quarter of 2024, performance fees amounted to $8.6 million, a significant turnaround from a negative $15.8 million in the same period in 2023. For the nine months ending September 30, 2024, performance fees reported were $2.9 million, compared to a loss of $36.6 million in the previous year.
Shareowner servicing fees
JHG also earns revenue through shareowner servicing fees, which totaled $61.4 million in the third quarter of 2024, compared to $54.9 million in the same quarter of 2023. For the nine months ended September 30, 2024, these fees reached $177.1 million, an increase from $159.7 million year-over-year, representing a growth of 12% for the quarter and 11% for the nine-month period.
Other revenue from advisory services and products
In addition to management and performance fees, JHG generates other revenue from various advisory services and products. In the third quarter of 2024, this category accounted for $52.0 million, up from $47.0 million in the same quarter of 2023. For the nine months ended September 30, 2024, other revenue was $149.9 million, compared to $137.2 million in the prior year, marking an increase of 11% for the quarter and 9% for the nine-month period.
| Revenue Stream | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) | Growth Rate (Q3 2024 vs Q3 2023) | Growth Rate (9M 2024 vs 9M 2023) |
|---|---|---|---|---|---|---|
| Management Fees | 502.8 | 434.9 | 1,435.0 | 1,273.0 | 16% | 13% |
| Performance Fees | 8.6 | (15.8) | 2.9 | (36.6) | n/m | n/m |
| Shareowner Servicing Fees | 61.4 | 54.9 | 177.1 | 159.7 | 12% | 11% |
| Other Revenue | 52.0 | 47.0 | 149.9 | 137.2 | 11% | 9% |
| Total Revenue | 624.8 | 521.0 | 1,764.9 | 1,533.3 | 20% | 15% |
Article updated on 8 Nov 2024
Resources:
- Janus Henderson Group plc (JHG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Janus Henderson Group plc (JHG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Janus Henderson Group plc (JHG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.