Updating Our FVE for Janus to Account for 10-1 Reverse Split and Currency Changes

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Event-Driven

While we are likely to raise our fair value estimate, we expect to retain our narrow moat rating for <a href="https://www.smartkarma.com/entities/19490" target="_blank" data-smartkarma-citation="entities:19490:1">Janus Capital Group Inc (JNS US)</a> following the firm's announcement that the U.S.-based asset manager would be merging its operations with the <a href="https://www.smartkarma.com/entities/21968" target="_blank" data-smartkarma-citation="entities:21968:1">Henderson Group PLC (HGG LN)</a>, a U.K.-based global fund manager. Both firms are facing challenges in their core markets that are unlikely to be abated by the combination, with Janus now dealing with the headwinds posed by the adoption of the Department of Labor's fiduciary rule earlier this year, and Henderson mired in the uncertainty created by the Brexit. On top of that, the competitive pressures created by the growth and acceptance of low-cost index-based exchange-traded funds, which has accelerated the trend towards passive investing in the post-financial-crisis market, is a constant threat.At the very least, the deal increases the scale of the two firms' operations, which should help offset some of the pricing pressure we expect to see in the industry in the longer term, but it remains to be seen whether it will improve their active management performance to the levels needed to be competitive. With combined assets under management of $322 billion (Janus has $195 billion in assets, and Henderson $127 billion, as at the end of the second quarter), the combined firm is still relatively small when compared with industry giants like BlackRock, Vanguard, and Fidelity, each of which oversees more than $3 trillion in assets.Analyst: Stephen Ellis

While we are likely to raise our fair value estimate, we expect to retain our narrow moat rating for Janus Capital Group Inc (JNS US) following the firm's announcement that the U.S.-based asset manager would be merging its operations with the Henderson Group PLC (HGG LN), a U.K.-based global fund manager. Both firms are facing challenges in their core markets that are unlikely to be abated by the combination, with Janus now dealing with the headwinds posed by the adoption of the Department of Labor's fiduciary rule earlier this year, and Henderson mired in the uncertainty created by the Brexit. On top of that, the competitive pressures created by the growth and acceptance of low-cost index-based exchange-traded funds, which has accelerated the trend towards passive investing in the post-financial-crisis market, is a constant threat.At the very least, the deal increases the scale of the two firms' operations, which should help offset some of the pricing pressure we expect to see in the industry in the longer term, but it remains to be seen whether it will improve their active management performance to the levels needed to be competitive. With combined assets under management of $322 billion (Janus has $195 billion in assets, and Henderson $127 billion, as at the end of the second quarter), the combined firm is still relatively small when compared with industry giants like BlackRock, Vanguard, and Fidelity, each of which oversees more than $3 trillion in assets.Analyst: Stephen Ellis

ジャナスとヘンダーソン・グループの合併は答えよりも多くの疑問を生む。FVEの増加が期待される。

Janus Henderson Group

ジャナスとヘンダーソン・グループの合併は答えよりも多くの疑問を生む。FVEの増加が期待される。