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Janus Henderson to have headquarters in London Janus Henderson to have headquarters in London
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The biggest asset management deal since the Brexit vote, bringing together Anglo-Australian group Henderson and Janus Capital of Denver, is to headquarter in London in a signal that the City remains at the heart of the world’s financial system. The biggest asset management deal since the Brexit vote, bringing together Anglo-Australian group Henderson and Janus Capital of Denver, is to have its headquarters in London in a signal that the City remains at the heart of the world’s financial system.
The combined group will have $320bn (£249bn) of total assets under management, with the chief executive of Janus, Dick Weil, relocating from Denver to London to co-manage the merged group with Henderson’s Andrew Formica.The combined group will have $320bn (£249bn) of total assets under management, with the chief executive of Janus, Dick Weil, relocating from Denver to London to co-manage the merged group with Henderson’s Andrew Formica.
Formica said: “London still acts as the heart of the global financial system and as a pivot between the US and Asia ... over a 10 to 15-year view, the Brexit debate will be seen as a drop in the ocean in the timeline of our business.”Formica said: “London still acts as the heart of the global financial system and as a pivot between the US and Asia ... over a 10 to 15-year view, the Brexit debate will be seen as a drop in the ocean in the timeline of our business.”
But the merger is a blow for the London Stock Exchange, with the primary listing for the merged group moving to New York, with a secondary listing in Sydney.But the merger is a blow for the London Stock Exchange, with the primary listing for the merged group moving to New York, with a secondary listing in Sydney.
The deal brings controversial billionaire bond investor Bill Gross under the roof of the combined group.The deal brings controversial billionaire bond investor Bill Gross under the roof of the combined group.
Gross shot to fame in 2010 when he warned that the UK was a “must to avoid” for his investors as its debt was “resting on a bed of nitroglycerine”. At the time he was acting for Pimco in California, running the world’s biggest bond fund, but left for Janus in 2014 and subsequently issued a $200m lawsuit against his former employers.Gross shot to fame in 2010 when he warned that the UK was a “must to avoid” for his investors as its debt was “resting on a bed of nitroglycerine”. At the time he was acting for Pimco in California, running the world’s biggest bond fund, but left for Janus in 2014 and subsequently issued a $200m lawsuit against his former employers.
Formica said there were no new lock-in arrangements for individual fund managers but it is expected that Gross will stay.Formica said there were no new lock-in arrangements for individual fund managers but it is expected that Gross will stay.
After the EU referendum, Henderson was hit by outflows from its property fund, prompting its suspension, along with many others in the industry. But Formica said there has since been a “reduced pattern of retail outflows, offset by institutional inflows.” After the EU referendum, Henderson was hit by outflows from its property fund, prompting its suspension, along with many others in the industry. But Formica said there has since been a “reduced pattern of retail outflows, offset by institutional inflows”.
The newly merged group promises ‘synergy’ savings of $110m a year, although it is not clear where the cuts will come from. Janus is largely a US-facing group with tiny operations in London, while Henderson, which acquired New Star in 2009 and Gartmore in 2011, is largely UK and European, but with a significant presence in Australia. The newly merged group promises “synergy” savings of $110m a year, although it is not clear where the cuts will come from. Janus is largely a US-facing group with tiny operations in London, while Henderson, which acquired New Star in 2009 and Gartmore in 2011, is largely UK and European, but with a significant presence in Australia.
Both Janus and Henderson face the challenge of a shift away from expensive ‘active’ fund management towards low-cost index management, where funds track market indices but are much less profitable for fund groups. Both Janus and Henderson face the challenge of a shift away from expensive “active” fund management towards low-cost index management, where funds track market indices but are much less profitable for fund groups.
Formica said the combined group, to be called Janus Henderson, will keep active management “at the heart of what we do.” Formica said the combined group, to be called Janus Henderson, will keep active management “at the heart of what we do”.
The deal is likely to have only a minor impact on small savers with investments in Henderson funds. Darius McDermott of Chelsea Financial Services said: “Not much will change for those who already invest with Henderson and all the funds we rate will continue to be rated. What we should gain from the merged companies is even more choice: Janus are particularly good in Japanese and US equities, which are gaps in the Henderson range.”The deal is likely to have only a minor impact on small savers with investments in Henderson funds. Darius McDermott of Chelsea Financial Services said: “Not much will change for those who already invest with Henderson and all the funds we rate will continue to be rated. What we should gain from the merged companies is even more choice: Janus are particularly good in Japanese and US equities, which are gaps in the Henderson range.”