In a Q1 2016 trading statement, the asset manager reported £100m of inflows into its retail business dominated by £317m in inflows into its US mutual business, driven Henderson said, by “continued demand for International Opportunities and Global Equity Income, as well as promising levels of interest in Henderson's broadening US product line.”
Flows into the firm’s UK and other retail business also remained positive with £44m in inflows, largely on the back of demand for income and absolute return.
Its SICAV range, however, reported outflows of £271m, largely from Europe-focused products.
According to Henderson CEO, Andrew Formica, the firm continues to benefit from diversification both in geography and investment style, but said the volatility seen in markets resulted in clients tempering their investment decisions. But, he added, retail flows improved as the quarter progressed.
It also benefited from currency moves. According to the trading statement FX translation gains, driven by AUD, USD and EUR strength against GBP, counterbalanced negative market movements to boost AUM by £1.4bn.
On the institutional side, Henderson reported a net outflow of £769m, “driven by £500m of previously notified redemptions and outflows linked to fund closures in areas of limited client demand,” it said.
However, it added, flows into absolute return bond and UK fixed income strategies remained strong.
In a note out after the release of the trading statement, Numis Securities said, Henderson’s AUM figure had come in 1% below expectations but was broadly in line.
“We continue to see Henderson as more exposed than many traditional asset managers to a market downturn, given its higher than average reliance on performance fees and market expectation of strong retail flows. Nonetheless, having underperformed, such that the share price is now close to our target price, our recommendation moderates from Reduce to Hold,” it said.