Janus Henderson Group (JHG) Investor Update summary

Financial year review and performance

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

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

• Active buyback program narrowed the discount, with nearly 15% of shares bought back and held in treasury.

• Portfolio benefited from strong cash generation, despite challenging macroeconomic conditions.

• Long-serving manager Neil Hermon is retiring, with Indriatti van Hien taking over as sole manager.

Portfolio strategy and investment process

• Focus remains on bottom-up stock picking, targeting quality growth at attractive valuations (GARP approach).

• Investment process unchanged, centered on the 4Ms: business model, money, management, and momentum.

• Portfolio to be more concentrated, reducing the number of holdings to focus on high-conviction ideas.

• Ongoing capital recycling and stronger sell discipline to address past underperformance.

• ESG integration and collaboration with Janus Henderson’s broader teams support investment decisions.

Market outlook and opportunities

• U.K. small caps have underperformed for a decade but are now trading at significant discounts to global peers.

• Labour government’s reforms in trade, financial services, and planning seen as positive for domestic growth.

• Confidence, fiscal stability, and potential rate cuts are key to unlocking market upside.

• M&A activity and renewed investor interest signal potential for re-rating in the sector.

• Defensive, construction, and infrastructure sectors have been strong contributors to recent performance.