Henderson Q1 AUM boosted by retail inflows and currency

Added 27th April 2016

Strong retail demand for income and absolute return strategies helped push up Henderson Global Investors AUM in the first three months of 2016.

Henderson Q1 AUM boosted by retail inflows and currency

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.

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Jupiter UK Special Situations
Jupiter UK Special Situations...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Geoff Candy

Group digital editor

Geoff Candy joined Portfolio Adviser as News Editor in May 2014. He has been a financial journalist and broadcaster since 2005 and, in that time has worked in both South Africa and the Netherlands, covering everything from high street retailers and construction companies to mining and insurance.

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Emerging Markets 2017
PA Emerging Markets 2017

Tuesday 7 February
Bloomsbury Street Hotel, London

PA SRI 2017
PA SRI 2017

Tuesday 21st February
Bloomsbury Street Hotel, London

PA Japan 2017
PA Japan 2017

Wednesday 8th March
Furniture Makers' Hall, London

PA Dublin 2017
PA Dublin 2017

Tuesday 14th March
Westbury Hotel, Dublin

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...