Henderson saw £1.4bn in net outflows from its retail business in the first quarter of 2017, with £200m in net outflows from the UK retail arm at the end of March.
The UK Property fund saw “modest” outflows, although the UK Absolute Return and emerging markets offerings were in demand, the firm says.
In the US, the mutual fund range saw £200m in outflows as investors shunned non-US assets such as the International Opportunities and European Focus funds while the Sicav range saw £1bn in outflows due to investors’ concerns over Europe.
Overall 85 per cent of outflows took place in the first two months of the year, with retail sentiment improving in March and continuing in April, the firm says.
The institutional side saw £400m in net outflows, which the firm attributes to “one-off redemptions” following the restructure of its global equities offering ahead of the Henderson’s merger with Janus, adding that new business won in April has countered the outflows.
Assets under management increased to £103.1bn, up from £101.0bn in December, on the back of positive investment performance and currency gains.
Henderson has announced a first quarter extraordinary dividend of 1.85p per share to ensure equality with Janus shareholders, who are set to receive a Q1 dividend. The combined Janus Henderson Group plans to release Q2 results on 8 August 2017, subject to the completion of the merger.
Andrew Formica, chief executive of Henderson, says: “While retail client outflows continued, we saw an improvement in client sentiment and flows as we moved towards the end of the quarter. Aside from the one-off outflows that resulted from the merger-related restructuring of our global equities team, our institutional business continues to see steady growth, with a healthy number of mandates funding since quarter end.
“We have made substantial progress in preparation for our proposed merger with Janus Capital Group. It is an exciting time as momentum builds towards the launch of Janus Henderson Investors, which will enable us to significantly increase our distribution reach and investment capabilities. We continue to be pleased with the supportive response from clients and await shareholder approval on 26 April.”