Bill Gross, Henderson, Janus Henderson discussed on Bloomberg Best

Automatic TRANSCRIPT

You JT down about twenty four percents in the year so far obviously you know lower fee passive? Fund companies. Are A little bit. Better in this kind of environment what's. The plan for areas agendas Henderson, were out close have been particularly strong well we've been suffering a little bit in outflows in one of our, traditional strengths are European equity. Managers have had a difficult period of, performance which is against a really long term. Record of excellence and so we're not really head in the bucket over it but it's it's affecting our short-term flows and European equity funds which is the largest. Single area of outflows we're facing we have a broad and diverse company with excellent managers but that diversity, means at any given time you're going to be seeing some better. Struggling more than others and that's certainly true but managing European equities is a is a historic and great strength of this firm and we're confident, we'll come back around on it but it's fair to say we're going through a disappointing period talk about just the parenting periods and long longtime. Records of of excellence I want to? Turn repeat we may to Bill Gross you said. That you're. Sticking, by him, you said that this is a Short turn some bad decision. Making but how long can. You stomach the outflows from. His particular fund how long until it. Taints the rest of Janus Henderson Well look Bill manages I think last count about two and a half, billion dollars for us we have about three hundred seventy billion dollars overall so it. Isn't a question of of flows in his area tainting the. Overall picture it's it's a smaller part of the overall picture. From the from the flow standpoint but certainly we care about those clients care about his business bill's been one of the world's great, investors for forty years and I, think, the sort of underperformance that he's seeing. Now is is is challenging and disappointing to him, more than any of. Us but certainly to all of us we're we're not where we need to be but if you look across. His forty year record that's the anomalous period and I think in time he'll he'll come back around? The, unconstrained fund has just fourteen delivered negative total returns is he. Still your painting manning. Is he's still that strong quarterback for the rest of the market? Sure bills a terrific investor and and and a terrific Strong player but as, we've, said look he's going through a really. Tough and disappointing time and he's he's working incredibly, hard to earn that. Back but that won't happen overnight he's he's gone through a really difficult period and it'll take some time to. Dig his way out and of course you bought him from him co you had on record together? Fifteen years you were pimco so you, saw his fantastic Returns than his great years firsthand as we all and. These things go in waves. Now as for waves right now we're in a wave of sort of the popularity of passive funds. At what point do the fund companies get too big that they lose that, advantage and, back to advantage. Active fund companies like yours Yeah it's a great question and please, keep asking you know. And the question is what really is. Going to drive that pendulum swing in terms of performance we have an awful lot of. Our company that is outperforming passive Netto fees we have a lot, of investment teams doing a terrific job of delivering great performance. Not all of them to be sure but a great many and so that isn't the only piece I think the other piece of the puzzle is we have to get better at messaging passive is clearly one of the marketing. Battle to a great, extent and we have to fight back a little bit more effectively I think that people have a sort of an unrealistic expectation of active and passive and over time when. You need to do a better job of educating them that we have a really good chance of outperforming passive. Neta fees certainly at my company, the active process that that that we operate across the broad spectrum. Of our assets has generally over long periods of time outperformed and we need to continue to do that but we need to also Get better. At explaining that to clients and messaging that more broadly from an industry and brand point of view because as clear as an industry passive has has been winning the marketing battle that was chief executive officer dick while of asset. Manager Janice Henderson speak, with Bloomberg's vonnie Quinn and Caroline Hyde coming up we'll be speaking with Paul Roberts KKR head.

Coming up next