Janus Capital Group and Henderson Group completed their “all-stock merger of equals” on Tuesday to form the Janus Henderson Group, with their new stock debuting on the New York Stock Exchange under the trading symbol JHG, at $30.75 per share.
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The firm’s stock will also continue to trade on the Australian Securities Exchange but not under the JHG symbol until June 13. It was delisted on the London Stock Exchange.
The merger is seen as a way to add distribution capabilities because of the international reach of the new firm and potentially slow outflows that have plagued both Janus and Henderson, which focus on actively managed funds. It remains to be seen if that will be the case.
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Dick Weil and Andrew Formica, both co-CEOs of the new firm and formerly CEOs of Janus and Henderson, respectively, are hopeful.
“The combined firm, Janus Henderson, creates a truly global active asset manager that is well-positioned to succeed in the investment marketplace, with expanded product suites, greater financial strength and better talent, benefiting our clients, shareholders and employees,” said Weil, in a statement.
“The breadth and depth of investment professionals and the broad array of talented colleagues gives us an enviable position to meet our clients’ needs,” said Formica in the same statement.
Greg Carlson, analyst at Morningstar, said, “The merger could reduce outflows a bit especially if the surviving funds are better performers, but ultimately the new firm is still going to need strategies to improve performance or merge more funds to turn flows around.” He noted that “outflows are a particular issue at Janus.”
Carlson added that the firm will “ultimately need to cut fees to some degree to remain competitive.” Fees at Janus funds overall have been below average, but in the U.K., where Henderson is based, fees are generally higher, said Carlson.
Since the merger was approved by shareholders in late April, several funds have merged, including the following:
- The Janus Twenty Fund was merged into the Janus Forty Fund, which had better performance among the two large-cap growth funds, said Carlson.
- The Janus Fund, a large-cap growth equity fund, was merged into the Janus Research Fund, another large-cap growth equity fund
- The Janus Emerging Markets Fund was merged into the Henderson Emerging Markets Fund
In addition, the Henderson Global Technology Fund will merge into the Janus Global Technology Fund and the INTECH U.S. Core Fund will be merged into the INTECH U.S. Managed Volatility Fund, though no date has been set yet, according to spokeswoman Erin Passan.
All the merged funds previously using the Janus or Henderson name will be renamed as Janus Henderson funds.
Also at the new firm, Roger Thompson, chief financial officer of Henderson, and Phil Wagstaff, global head of distribution at Henderson, retain those positions while the 12-person board of directors is divided equally between board members from Janus and Henderson, but its chairman, Richard Gillingwater, comes from Henderson and its Deputy Chairman, Glenn Schafer, from Janus.
Janus Henderson manages approximately $331 billion in assets – more than half in equities and the rest in bonds, multi-asset products and alternatives – and has a market cap of approximately $6 billion. It has offices in 27 cities around the world, and, despite the NYSE listing, it is headquartered in London.
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