Janus Capital merges with Henderson Global Investors to create a $320bn giant

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Henderson Group and Janus Capital Group will merge, creating a $320bn (£250bn) money manager as both companies seek to revive asset growth and profit.

The merger would create a money manager, Janus Henderson Global Investors, with a combined market value of about $6bn (£4.6bn) , the Denver and London-based firms said in a statement on Monday.

Japanese insurer Dai-ichi Life Holdings intends to boost its stake in the combined company to at least 15 per cent, according to the statement.

Active managers that specialise in stock and bond picking have been losing market share to lower-fee indexers in recent years.

Under chief executive Richard Weil, who came to Janus in 2010, the firm has diversified through acquisitions, new fund offerings and overseas expansion, especially in Asia.

In 2014, Weil hired Bill Gross from Pacific Investment Management Co to manage its Global Unconstrained Bond Fund, which now has $1.4bn.

“This is a transformational combination for both organisations,” Mr Weil said in the statement on Monday.

“Janus brings a strong platform in the US and Japanese markets, which is complemented by Henderson’s strength in the UK and European markets.”

Andrew Formica, chief executive officer of Henderson, and Mr Weil will lead the merged entity together. The deal will lead to annual net cost savings of at least $110m, the companies said.

The deal is expected to close in the second quarter of 2017.

The combined company will be a UK tax resident and will apply to trade on the New York Stock Exchange as its primary listing.

Henderson, named after its first client and founded in 1934, managed about £95bn ($122.6bn) as of 30 June.

Janus managed almost $195bn. Henderson shareholders will own 57 per cent of the new company, with 43 per cent going to Janus shareholders, according to the statement.

Bloomberg