Published by Asia Asset Management – 18th July 2017
Gigi Chan, the chief operating officer and head of Asia-Pacific at Janus Capital since 2011, is set to leave at the end of July following the recent merger between the US company and London-based Henderson Global Investors, according to an email to clients seen by Asia Asset Management (AAM).
Her imminent departure comes amid what appears to be a demotion in the management hierarchy of the newly merged company, Janus Henderson Investors (Janus Henderson).
It will mark the most significant exit from the Asia leadership team of the combined company to date, just two months after the supposed “merger of equals” between Janus Capital (Janus) and the Anglo-Australian Henderson Global Investors (Henderson) closed on May 30.
This is despite Henderson’s earlier assurances to regional investors that it did not expect to see “substantial redundancies” in the region.
Aston Tan, Janus Henderson’s spokesman in Singapore, confirmed Ms. Chan’s last day would be July 31. In a statement to AAM, he said Ms. Chan “has decided to leave the company in order to pursue other interests”.
Ms. Chan’s exit will follow that of long-time boss Augustus Cheh, the New York-based president of Janus Capital International, who left just as the deal was closing in May. Both had joined Janus as veterans of AllianceBernstein in 2011, where Ms. Chan served as chief financial officer while Mr. Cheh was the Asia ex-Japan chief executive officer.
As at press time, neither had responded to AAM’s request for comment on their upcoming plans.
Ms. Chan’s departure comes amid a change of her role after the merger, where her new title since May 30 was head of Greater China.
Janus Henderson managed US$332 billion of assets globally, according to its public disclosures using end-2016 figures. Of this, $196 billon was from Janus, and the balance $126 billion was from Henderson. As at the end of March, Janus Henderson said its total assets had dipped to $330.8 billion.
The company has a stated target to trim $110 million of costs within three years of the merger, with $80 million being cut in the first year.
Investors will be closely watching the progress of the integration, including the company’s ability to retain client assets and investment talents.
The announcement of the merger last October helped to kickstart a trend and pressured other competitors to combine forces with industry peers, creating what analysts have described as the greatest wave of mergers and acquisitions in the asset management industry since 2008.
Most recently, Amundi’s deal to buy Pioneer Investments from Italy’s UniCredit closed on July 3. Meanwhile, Standard Life is set to complete its merger with Aberdeen Asset Management on August 14 to create the second biggest money manager in Europe.
