Henderson sees outflows as assets rise

Fund manager Henderson Group’s total assets rose 10 per cent to £101 billion (Dh464 billion, $126 billion) in 2016 after market gains more than offset the impact of retail customers withdrawing money.

Henderson said the weakening demand was the result of a broad pullback from European assets, and was exacerbated by a weak performance in some of its equity funds, although it did see improved demand from institutional investors.

“Market conditions proved challenging for our investment management teams,” Chief Executive Andrew Formica said in a statement yesterday, with just half of the group’s assets outperforming over one year and amid a particularly weak performance from its European and Global equities strategies.

Net outflows for the year were £4 billion, it said, compared with net inflows of £8.5 billion the year earlier, and performance fees fell 59 per cent to £40.4 million, dragging on profits.

Underlying profit before tax was £212.7 million, down from 220 million a year earlier.

Henderson said its planned $6 billion purchase of rival US asset manager Janus Capital was on track to complete by the end of May, and it planned to pay a final dividend of 7.30 pence a share.

That would give a total dividend of 10.5 pence, up from 10.3 pence the year before.

Shares in Henderson were down 2.1 per cent at 0834 GMT, the secondbiggest fall on the UK midcap index, in contrast with emerging markets-focused peer Ashmore Group, which beat half-year profit forecasts and saw its shares rise.