Henderson funds hit by commodity, emerging market rally


Henderson saw a small increase in its assets under management over the first quarter, but fund performance was hampered by the asset manager being cautious on the recent emerging market and commodity rally.

Its assets under management reached £92.7bn compared to £92bn in December.

Retail inflows totalled £90m, with demand strong for income and absolute return strategies. On the institutional side the manager saw £769m of outflows, with £500m of that being previously notified redemptions and outflows linked to fund closures in “areas of limited client demand”.

Henderson saw a significant drop in the number of funds outperforming over one year, which it attributed to its cautious positioning through the end of quarter rally in materials, commodities and emerging markets.

While 78 per cent of funds outperformed for the one year period in December, by this quarter that figure had dropped to 52 per cent.

Over the three-year period 77 per cent of funds outperformed compared to 81 per cent in the previous quarter.

Chief executive Andrew Formica said: “Volatile markets saw our clients temper their investment decisions over the quarter. Our retail flows improved as the quarter progressed and, looking beyond previously announced mandate losses, our institutional pipeline remains healthy.”