Monday 3 October 2016 8:43 am

Janus Capital is merging with Henderson Global Investors to create a $320bn giant

Shares in Henderson Global Investors shot up more than 18 per cent to 274p in early trading after it unveiled plans to merge with Janus Capital, the asset manager bond king Bill Gross famously ditched Pimco for.

In a statement today Janus said it was merging with Henderson Global Investors to create a giant asset manager with $320bn (£247bn) of assets under management and a combined market capitalisation of $6bn. 

The merger of equals will leave Henderson and Janus shareholders with 57 per cent and 43 per cent respectively of the creatively-titled Janus Henderson Global Investors – although the deal isn't expected to be sealed until the second quarter of next year. 

The new business will have presences across the US, Europe and Asia, with 54 per cent of its assets under management based in the US, while 31 per cent will be in Europe, the Middle East and Africa, and 15 per cent will be in Asia. 

“Henderson and Janus are well-aligned in terms of strategy, business mix and most importantly a culture of serving our clients by focusing on independent, active asset management," said Andrew Formica, Henderson's chief executive.

Meanwhile Dick Weil, Janus' chief exec, added:  "This is a transformational combination for both organisations.

"Janus brings a strong platform in the US and Japanese markets, which is complemented by Henderson’s strength in the UK and European markets"

In February this year Henderson reported record net inflows of £8.5bn for the year to the end of December, plus a 17 per cent rise in its underlying pre-tax profits

However, after the Brexit vote it ran into rather rockier territory as it suspended trading on its UK Property PAIF as investors panicked – although last month it said the fund will reopen on 14 October. 

Law firm Freshfields was advising Henderson.

Here's Gross talking about the performance of his Janus Global Unconstrained Bond Fund in May this year.