Janus Henderson CEO Formica Exits

Former Henderson chief Andrew Formica has resigned as co-CEO of Janus Henderson. The asset manager finalised its merger last year

Emma Wall 1 August, 2018 | 4:47AM
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Janus Henderson merger asset manager CEO steps down funds

Janus Henderson has announced co-CEO Andrew Formica is stepping down, effective immediately. The board has confirmed Dick Weil will continue as sole CEO of the asset manager. 

The merger between London-based Henderson, led by Formica for a decade, and Colorado-based Janus Capital Group, headed up by Weil since 2010, was finalised last year. While the market expectation was that one of the two would be appointed CEO in due course, the timing comes as a surprise.

Wing Chan, Morningstar's director of manager research for EMEA and Asia said: "The appointment of a sole CEO is something that the market had expected it to happen next year, but while the news is earlier than expected it is not a complete surprise. There was some speculation on which of the two would get the position."

A statement from Henderson reads: "While not an easy decision, due to having two highly qualified candidates, the CEO decision was based on a very rigorous process over several months, supported by expert advice from external consultants. This decision was made with the full support of the Board, and the Board believes Dick is most appropriate to take Janus Henderson to the next level."

Chairman Richard Gillingwater added that as the integration of the two firms was now complete, it was time for the asset manager to be lead by a single individual. 

Formica said: “It has been a pleasure to work with Dick in the creation and formation of Janus Henderson this past year. I am also proud of what we achieved at Henderson over the 10 years I was CEO. Janus Henderson is an outstanding business with a fantastic and talented workforce. I wish Dick and the team the very best going forward”.

While Formica’s resignation from the CEO post is effective immediately, Janus Henderson has confirmed he will stay on in an advisory capacity until the end of the year. Janus Henderson global head of distribution Phil Wagstaff has announced he is also leaving the firm.

The asset manager has revealed a hefty severance cost of $12 million in conjunction with these changes.

What Does This Mean for Investors?

Morningstar fund analysts rate 134 Janus Henderson funds worldwide, with 70 of these offerings listed in the UK, including the Silver Rated four-star fund Janus Henderson Strategic Bond.

When the two asset managers announced plans to merge in October 2016, Morningstar senior fund analyst Simon Dorricott said there would be no change to ratings, but that the team would monitor the merger to “ensure that the culture remains in place and that the Henderson fund managers are happy to stay put”.

As Formica does not directly manage any assets, there is not expected to be any immediate impact to ratings.

“We consider the ethos and culture of a firm when analysing a fund as part of the Parent pillar,” adds Chan. “While a change in CEO can impact this, Weil has been in place for some time. We will be meeting with the group over the coming weeks to ensure it is business as usual.”

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Janus Henderson Strategic Bond I Acc391.40 GBP-0.05Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar