Henderson Global Investors has blamed Brexit for £1bn of retail outflows in its third quarter results and warned retail investors remain cautious on European assets despite better than expected economic data following the result.
Sterling weakness and positive markets helped assets grow 6 per cent to £100.9bn compared to £95bn at the end of June. Institutional net flows added a further £400m.
Chief executive Andrew Formica says: “This quarter’s retail outflows were concentrated in the period immediately after the UK Referendum, with the rotation out of European assets balanced to some extent by continued demand for absolute return and income generating strategies.”
Seventy per cent of outflows for the period occurred in July, immediately after the UK’s vote to leave the European Union, but demand for the Henderson UK Absolute Return and Henderson Strategic Bond funds remained strong among retail investors.
Sicavs in Continental Europe and Latin America also saw outflows of £800m due to clients reducing their exposure to European assets and held higher proportions of cash in their portfolio.
Formica says the firm has received a “supportive response” from clients, employees and shareholders regarding its merger with US asset manager Janus Capital, due to complete in Q2 next year.