BNP Paribas to take over Janus Henderson US post-trade operations

Source: BNP Paribas

Janus Henderson Investors (NYSE:JHG, ASX:JHG) today announced that BNP Paribas Securities Services, a leading global custodian with over $10 trillion in assets under custody as of September 30, 2017, will assume responsibility for the majority of Janus Henderson's back office (including fund administration and fund accounting), middle office and custody functions in the U.S.

As part of this partnership, more than 100 Janus Henderson employees currently providing middle and back office functions in the U.S. will become employees of BNP Paribas. This continuity will support a seamless transition and consistent, high-quality service for clients.

Janus Henderson has a long-standing partnership with BNP Paribas outside of the U.S. with a strong track record of support and service delivery. This outsourced model will provide a single and consistent global platform to support the global growth of Janus Henderson. The partnership will leverage the broader expertise of BNP Paribas to provide best practice and leading industry approaches to global regulatory and industry issues.

Andrew Formica, Co-Chief Executive Officer at Janus Henderson Investors, said: “The expansion of our partnership with BNP Paribas to include U.S. services is yet another benefit to clients resulting from the merger between Janus and Henderson. BNP Paribas has been an excellent partner since we began our relationship more than 15 years ago.”

Dick Weil, Co-Chief Executive Officer at Janus Henderson Investors, said: “We are excited to announce a partnership that supports the continuity of individuals providing these functions and is expected to provide a seamless transition for clients.”

Clients will benefit from BNP Paribas Securities Services’ expertise in back and middle office services. Janus Henderson fund shareholders will also benefit from lower administration fees and expenses, as a result of the reduction in overall operating costs associated with these functions.

This is an important strategic step for BNP Paribas, providing it with a proven U.S. mutual fund administration and accounting platform, and enabling it to expand its global fund servicing offering.

This partnership is part of BNP Paribas’ 10-year strategic build-out of the firm’s Securities Services business in the U.S., which began with the launch of global and U.S. custody in 2012. BNP Paribas is committed to growing its presence in Denver where one of the firm’s fund servicing hubs will be located.

Patrick Colle, CEO of BNP Paribas Securities Services, said: “We are delighted to further broaden our long-time partnership with Janus Henderson. This is a transformational opportunity for both our U.S. platform and our global funds business. We are now able to offer a complete multi-asset class, middle-to-back office solution, covering all major markets in the world, including the U.S.”

Claudine Gallagher, Americas Head of BNP Paribas Securities Services, added: “We are excited to expand our capabilities for asset managers in the U.S. through this partnership, and look forward to providing high-quality service to Janus Henderson and its clients."

BNP Paribas will pay Janus Henderson net consideration of approximately $36 million for the operations upon closing, which is anticipated for March 2018.

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