Asset management giant Janus Henderson has announced the appointment of Richard “Dick” Weil (pictured right) as sole chief executive officer of the firm.
Weil will take sole responsibility for the strategic direction and overall day-to-day management of the firm.
Since the $6bn merger between US manager Janus Capital and London-headquartered Henderson Global Investors in 2017, former Janus’ CEO Weil was sharing the role of co-CEO with ex-Henderson boss Andrew Formica (pictured left).
Prior to joining Janus, he spent 15 years with Pimco, having held various roles including global head of Pimco Advisory and chief operating officer. Other positions were with Bankers Trust Global Asset Management and Simpson Thacher & Bartlett LLP in New York.
In a media statement, Janus Henderson said the CEO decision was based on a very rigorous process over several months, supported by expert advice from external consultants.
It added the decision had received full support from Janus Henderson board which
“believes Dick is most appropriate to take Janus Henderson to the next level.”
Co-CEO Andrew Formica steps down
Formica has relinquished his role of co-CEO and left his board seat, immediately after the decision was made.
Janus Henderson specified Formica has agreed to continue on as an advisor to assist with final integration efforts through the end of the year.
“Now that our integration plans are significantly progressed, our board has determined that the co-CEO structure has achieved its goals, and now is the appropriate time for Janus Henderson to be led once again by a sole CEO. Dick brings a breadth of skills and experience from prior roles in his career where he successfully led organisations through challenge and change”, said Richard Gillingwater, chairman of the Janus Henderson Group plc board.
Commenting on his appointment as sole CEO, Dick Weil said: “I am honored and excited to have the opportunity to lead Janus Henderson. We have established a strong platform from which Janus Henderson can continue to drive deeper client relationships”.
Regarding Weil’s appointment, Formica commented: “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”.
The firm said that due to the decision, it “will take a severance charge of approximately $12m, including the acceleration of long-term incentive compensation, that will be reflected in the third quarter results.”
Janus Henderson’s global distribution chief exits
The departure of Phil Wagstaff, global head of Distribution, has also been announced. Janus Henderson said Wagstaff “has decided to take a career break, given that the integration work is significantly progressed and the distribution team is well in place.”
He will work closely with sole CEO Weil over the next 6 months to ensure a full and smooth transition.
Commenting on Phil Wagstaff’s departure, Gillingwater said: “Phil has been instrumental in the development of our global distribution team, first at Henderson following the acquisition of Gartmore and then with the merger of Janus and Henderson, where he has played a key role in welding the two distribution teams together, creating a world-class distribution organization. We are grateful for all Phil’s efforts”.
$19.8bn redemptions over Q2
Those appointments were announced along with Janus Henderson Group’s results for the second quarter of 2018.
Q2 2018’s net income of Janus Henderson amounted to $140.6m compared to $165.2m in Q1 2018.
On an adjusted basis, the group’s net income reached $149.9m, up 4% quarter-on-quarter ($143.6m) and up 7% year-on-year ($139.8m).
Janus Henderson said that some $107m of annualised run rate pre-tax net cost synergies were achieved as of end June 2018 while it expects further cost synergies of at least $125m within a three-year period post merger close.
Janus Henderson managed $370.1bn in assets as of 30 June 2018, down from $371.9bn as of end March 2018.
The manager has suffered redemptions of $19.8bn over the quarter: $9.6bn in equity funds (net inflows of $8.5bn), $5.6bn in fixed income funds (net inflows of $5bn), $1.2bn in quant equity strategies (net inflows of $0.4bn) and $2.1bn in alternatives (net inflows of $1.4bn).
Solely multi assets fund flows remained positive with $1.8bn of net inflows recorded for redemptions of $1.3bn.