Henderson’s outflows better than expected as retail money rises

Letters to editor MS 480

Henderson Group was hit by net outflows in the first half of 2013, although these were better than analysts’ expectations and the firm won new money into its retail business.

According to the asset manager’s 2013 interim results, the group saw net outflows of £1.45bn over the six months to 30 June, driven by clients taking money from institutional strategies. RBC Capital Markets had forecast the group to suffer £2bn in outflows.

However, Henderson’s retail business benefitted from £587bn in net inflows over the six-month period, with new money into its Sicavs and US mutuals offsetting net redemptions from UK-domiciled funds and investment trusts.

Strong investment performance across the group’s strategies, especially those focused on equities, helped Henderson to lift its total assets under management to £67.9bn – up 3.5 per cent from the £65.7bn at the start of the year.

Henderson chief executive Andrew Formica says: “Sustained strong investment performance is a good lead indicator of flows and we are beginning to see this in our business, in particular with an improvement in net retail flows, demonstrated by approximately £600m of net inflows in the first half.

“Importantly, we saw positive UK retail net flows of approximately £150m in the second quarter, driven by flows into Credit Alpha, European Special Situations and the UK Property unit trust along with solid flows into the new joint ventures we established last year with Sesame Bankhall Group and Intrinsic Financial Services.”

The firm also reported underlying profit before tax of £101.1m, which is a half-year record for the group. It also announced an ordinary dividend per share of 2.15p, up from 2.1p at the same point in 2012.