Henderson reports outflows as AUM shrinks

2 November 2011 9:03 am | By Rob Langston

Henderson Global Investors has reported outflows across its range during the third quarter as assets under management shrank by £9 billion to £65.4 billion.

The fall in assets under management was attributed to unfavourable market and FX movements of £5.9bn and the sale of New Star Institutional Managers.

In the three months to September 30, the asset manager saw outflows from its retail, institutional businesses and Gartmore.

Its retail funds - predominantly European Sicavs - saw outflows of £692m, the Garmore business saw net outflows of £568m, while outflows of £505m in the institutional business were said to be offset by a pipeline of £700m.

Henderson chief executive Andrew Formica (pictured) says: “Markets were extremely challenging over the period, with significant economic concerns developing in the eurozone.

“Although property and fixed income valuations were broadly unaffected, equity prices fell sharply as investors lowered their risk appetite and switched into cash.”

He adds: “Investors have taken some comfort from the statement by the eurozone last week but, as evident this week, there are many stages to go through before the package of measures is fully implemented.

“We therefore anticipate uncertain and volatile market conditions for at least the remainder of this year. However, as we saw post 2008/2009, once volatility subsides, investor demand for equities should return.

“In the meantime, the variability of our cost base cushions the revenue impact of market declines and we are taking additional steps to manage costs although we will continue to invest selectively.”

 

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