On Monday, Henderson Group PLC (ASX: HGG) announced an update on its proposed merger with Janus Capital Group. Janus Henderson Investors expects to have a combined market capitalisation of c.US $5.6 billion, with Henderson holding approximately 57% of the merged group and Janus approximately 43%. The Dai-ichi Life Insurance Company, Janus’ largest shareholder, intends to further invest in the combined company to increase its ownership to at least 15%. We believe the merger will create a leading funds management business which should see potential material cost and revenue synergies. Shares in HGG closed up 2.4% for the week. We own HGG as an investment in WAM Capital, WAM Leaders and WAM Active.