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T. Rowe Price Group, Inc.

115.31
USD
1.50%
115.31
USD
1.50%
104.72 224.56
52 weeks
52 weeks

Mkt Cap 26.17B

Shares Out 226.94M

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Janus Henderson on verge of new era with new CEO after a rough 2017 merger

Janus Henderson Group (NYSE:JHG) is standing on the precipice of a new era as a new CEO takes over at the company that was formed by the 2017 merger of Denver-based Janus Group with London-based Henderson. Under the merger plan, the asset manager would be run by co-CEOs — Dick Weil from Janus and Henderson's Andrew Formica. Both are now gone. Ali Dibadj, who has been AllianceBernstein's (AB) CFO and head of strategy will become JHG's CEO no later than June 27, the company announced in March. It will be up to him to devise a plan that proves the company's focus on actively managed funds can outperform passive index investing. Data compiled by Bloomberg estimates that in the past two years, the passive approach increased its market share to 46% of all funds from 42%. Peltz is betting that active fund management will make a comeback, Bloomberg reported, citing people familiar with his thinking. After the company's board backed Weil in becoming sole CEO, pushing out Formica in 2018, he came under pressure by activist investor Nelson Peltz starting in 2020. Peltz's Trian Fund had been building a stake in Janus Henderson (JHG) starting in 2020. Peltz and Ed Garden, also of Trian, joined JHG's board in February 2022. Trian Fund boosted its stake in JHG to 17.6% in March, up from 16.9%. Weil retired on March 31. In the five years, since the merger, the company's total assets under management have barely increased to $361.0B at March 31, 2022 compared with $344.9B at June 30, 2017. In the past five years, Janus Henderson (JHG) stock has dropped 7.6% compared with the S&P 500's 81% gain, XLF's 44% rise, and peer T. Rowe Price's (TROW) 79% climb as seen in this chart. Weil, at the time his retirement was announced, said he helped to build a foundation from which to grow. "Together with my colleagues, we have built a strong operational and financial foundation, extended our product offering, created significant value for our clients and our shareholders alike, and successfully positioned the company for future growth," he said. After disappointing Q1 results at Janus Henderson (JHG) SA contributor Intrinsic Analysis sees a strategy shake-up coming late this year

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