Janus-Henderson Merger: Product Gaps Will Be Filled
Individual versus combined
The combination of Janus Capital’s (JNS) strength in the US market and Henderson Group’s (HGG) strength in the European and UK markets will help create a global asset manager. A positive outlook for higher revenue growth has paved the way for the Janus-Henderson merger. The merged entity is expected to have higher long-term growth compared to its asset management peers (XLF) such as Affiliated Managers Group (AMG) and Ameriprise Financial Services (AMP).
The graph below suggests the investment discipline breakdown across various asset classes. The combined entity’s product lineup is expected to be more diverse and balanced than the separate product offerings.
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Janus and Henderson: Business approaches
Janus Capital (JNS) and Henderson Group (HGG) both have well matched investment capabilities, corporate strategies, and complementary geographic footprints. The combined entity will have more flexibility and expertise to innovate, which could help their clients deploy funds across categories. By providing a strong global distribution, the merged entity will be able to serve its clients better. By acknowledging the expertise of the managers, the merged entity should continue to retain and attract the best investment talent, which in turn will help serve clients. Interesting opportunities could exist in terms of expanding Janus’s and Henderson’s asset allocation capabilities and alternatives. Janus’s dominance in the US markets could benefit Henderson’s distribution, and Henderson’s dominance in the European and UK markets could benefit Janus’s distributions. The Janus-Henderson entity is committing to excellent risk-adjusted returns.
The new board of directors
Andrew Formica, CEO (chief executive officer) of Henderson, and Dick Weil, CEO of Janus Capital Group, will be co-CEOs of the newly formed asset manager company, Janus Henderson Group. Glenn Schafer, deputy chair, and Sarah Arkle will be the non-executive director and risk committee chair, respectively. Other names of non-executive directors include Kalpana Desai, Jeffrey Diermeier, Kevin Dolan, Eugene Flood Jr., Lawrence Kochard, Angela Seymour-Jackson, and Tatsusaburo Yamamoto.