Henderson Group has revealed a 5% jump in assets under management in the third quarter of 2010.
The group has seen its assets rise by £2.8 billion to £59.2 billion from July 1 to September 30. The group highlighted currency movements and favourable market conditions for a £3.1 billion increase in assets, this was partially offset by a £100m of net outflows as well as the £200m transfer of the international property fund to Aviva.
Henderson has also reported £300m of net inflows into its UK and horizon retail ranges. The £100m net inflow into the UK retail range was spread across its multi-manager range, credit alpha, strategic bond and European special situations funds. The £200m in the horizon range came through global technology, pan European equity and global currency funds.
Flows were flat within the group’s hedge fund range, while there were £200m net outflows in both its investment trust and structured products ranges. Henderson says the outflows in the investment trust range is a result of Witan Investment Trust’s decision to change its asset allocation by replacing enhanced index portfolios with active managers, while the structured products outflow is down to CDO’s maturing. (article continues below)
Cash funds remained flat while there were a further £200m of outflows from Pearl Group as it continues with the run-off of its closed-life books. Pearl has a further £1.4 billion of assets that it has given notice, but is yet to withdraw from Henderson.
Andrew Formica, chief executive of Henderson, says: “The risk appetite of both retail and institutional investors remains low, driven by poor economic news and volatile, albeit improving, equity markets.
“Henderson continues to see healthy demand especially in our fixed income credit products, recognising the strength of the team we have built in this area. We invested some of the client capital earmarked for property investments and expect this to continue in the fourth quarter and into 2011. Overall, Henderson’s diversity, combined with good investment performance and client focus, provides clients with a broad product range to choose from to suit their risk appetite and investment profile.”