Janus Henderson Group (JHG) investor relations material

Strategic and operational overview

• Net asset value declined by 5.1% and share price fell 2.3%, underperforming the benchmark by 10.1%.

• Dividend increased by 3.7% year-on-year, marking the 22nd consecutive year of growth.

• Active share buyback program narrowed the discount to NAV, with nearly 15% of shares repurchased in the past year.

• Leadership transition as Neil Hermon retires after 22 years, with Indriyati van Hien taking over as sole Fund Manager.

• The team is being strengthened with a new hire and continued collaboration across Janus Henderson’s investment teams.

Portfolio positioning and investment process

• Focus remains on bottom-up stock picking, targeting quality growth at reasonable prices (GARP), with a refined sell discipline.

• Portfolio is being streamlined, reducing the number of holdings to focus on high-conviction positions.

• Top 10 holdings represent about 30% of the portfolio, diversified across sectors like defense, construction, and financials.

• Emphasis on companies with strong cash generation, prudent capitalization, and higher growth than the benchmark.

• ESG integration and collaboration with a dedicated ESG team support non-financial risk assessment.

Market environment and outlook

• UK small caps have underperformed large caps, but the asset class is seen as undervalued and primed for re-rating.

• The UK market trades at a significant discount to global peers, with domestic-focused stocks especially cheap.

• Recent government actions—resetting EU relations, deregulating financial services, and planning reform—are expected to stimulate investment.

• Confidence, fiscal stability, and potential rate cuts are key to unlocking performance in the sector.

• M&A activity and abating outflows signal renewed interest in UK equities, with small caps poised to benefit.