Henderson reports £2bn asset drop in Q3


Fund manager Henderson saw outflows of almost £2bn for the third quarter of this year because of negative market returns, although retail net inflows helped stem losses.

In its third quarter results, published today, the firm saw net inflows of £1.3bn, but total flows were “more than offset” by market and FX losses of £1.9bn.

Net flows into the firm’s SICAVs were at £600m for the period, with the Gartmore UK Absolute Return and Henderson Gartmore Continental European funds the top selling vehicles in the quarter.

Meanwhile, net flows into the UK retail ranges remained consistent with previous quarters at £400m. Income and absolute return funds saw the strongest sales, particularly the UK Property Oeic, UK Absolute Return and Strategic Bond funds.

Henderson chief executive Andrew Formica says: “Henderson’s active fund management capabilities helped clients mitigate losses in a period of negative market returns. We continued to outperform in terms of investment performance and new business growth, and benefitted from being able to offer our clients a broad range of equity, fixed income and alternative investment strategies.”

Total assets under management declined slightly in the quarter to £81.5bn from £82.1bn as of June 2015.

Formica says: “We expect market conditions to remain challenging and regulatory oversight of asset managers to continue to intensify. That said, we continue to make good progress with our strategy to grow and diversify our business.”

In June, Henderson Group increased its assets by £5.6bn by purchasing two businesses and increasing its stake in another.

The asset manager bought the three businesses in Australia, to boost its Asian assets. It has bought Perennial Fixed Interest Partners, which has £4.2bn in assets, and Perennial Growth Management, which has £1.3bn in assets.