Henderson’s Brexit outflows countered by sterling weakness

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Henderson Global Investors increasingly international business has helped it weather Brexit as it announces assets under management of £95bn compared to £92bn at the end of 2015, despite £2bn of net outflows.

Retail outflows “accelerated considerably” in the aftermath of the UK’s vote to leave the European Union, the asset manager said in its interim results, with net outflows totalling £1.4bn in Q2, compared to net inflows of £90m in Q1.

Underlying profit before tax was £100.5m compared to £117.4m for the same period last year.

The asset manager said negative market movements in the period were counterbalanced by FX translation gains with USD, EUR and AUD strengthening 9 per cent, 11 per cent and 11 per cent respectively, against GBP.

Approximately 50 per cent of assets are now managed for international clients compared to 30 per cent in 2013.

Andrew Formica, Chief Executive of Henderson, said: “The first half was dominated by widespread market uncertainty in the run up to the UK referendum.

“Clients pulled back from investing in European assets and UK property, particularly after the referendum result, but we saw good demand for absolute return and income generating investment styles.

“The dislocation caused by the UK referendum result demonstrates the importance of continuing to diversify our business.

“Our plan is to stay close to our clients, stay vigilant on costs and stay true to our strategy.”

Formica says outflows have moderated since the end of June and investment performance has improved.

The asset manager says 77 per cent of assets outperformed their relevant metrics over a three year period.