Henderson Global Investors has announced plans to merge with Janus Capital Group, the US-based fund manager. The merger is expected to complete in the second quarter of 2017 and is subject to shareholder and regulatory approval. The combined group will be listed on the New York and Australian stock exchanges and will be called Janus Henderson Global Investors.
Why are they merging?
The groups believe their fund ranges are complementary and their combined resources will give investors access to a wider range of funds with better performance potential. The merger is also expected to result in cost savings, as well as create a larger business in a strong financial position. Scale can help keep costs down for fund groups, helping them to deliver more competitive fund pricing, while still delivering good performance.
Our view
Mergers can be unsettling for fund managers, but we will continue to monitor the situation closely on behalf of our clients. In the short term we expect it to be business as usual for investors in Henderson funds and over the longer term we hope to see some of the cost savings passed on to investors via reduced costs on their funds.
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