Henderson sees 10bn rise in AUM

Henderson posted £10bn rise in AUM and a pre-tax profit of £190.1m in its year-end results.

Henderson sees 10bn rise in AUM

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Diluted underlying earnings per share were posted a 14.9p with a 12% increase to its total dividend, with final payout set at 5.58p.

Henderson’s share price grew 72.8%, sitting at £2.48 at the time of writing.

With group AUM at £75.2bn (split roughly 52:48 in favour of retail money) chief executive Andrew Formica said 82% of its funds had outperformed over three years. 

Total net flows were £2.5bn and recurring revenue grew 9.5% to £578.2m.

Some key themes being identified from the business included a continued search for income, globalisation and European absolute return strategies coming heavily into favour.

Formica said talk of ‘the great rotation’ from bonds into equities were quite premature, adding there has been an “inner rotation” within fixed income that has seen investors shift from vanilla bond offerings into for specialist fixed income vehicles.

Given the strength of our Fixed Income team, these trends leave us well placed as we have observed increasing demand from existing and new institutional clients for high alpha, absolute return and total return bond funds, together with demand for alternative forms of fixed income assets such as multi-asset credit, which includes loans and asset-backed securities.

"It has now been five years since I became chief executive and I wanted to begin my review by looking back at what we have achieved in that time. There has been significant change and I believe Henderson is now a much stronger business with a very exciting future following the decisions and investments we have made.

"Henderson is now a strong business, with a trusted brand and a suite of highly popular flagship funds which are attracting significant new flows, combined with consistently good investment performance and an unrelenting focus on clients and shareholder value.”

Formica explained the rationale for the group’s new global brand, which should have wider appeal to sophisticated investors around the world and added that the group was well-placed to make further acquisitions.

As well as new chairman Richard Gillingwater who has taken over from retired Rupert Pennant-Rea, the executive will see former JPMorgan Asset Management chief financial officer Roger Thompson join the firm and Rob Gambi, who returns to Henderson from UBS Global Asset Management as chief investment officer.

“Our mission remains to be a trusted global asset manager focused on delivering excellent investment performance and service to our clients. The last 12 months have seen us take great strides forward on delivering against our mission. In the years ahead, we will continue to invest in the business and maintain focus on our clients as we seek to build upon the solid foundations of our business.

“I would like to thank our shareholders for their patience and support over the years. To my colleagues here at Henderson, I would also like to extend a very large thank you for their unflagging commitment, working tirelessly on behalf of our clients to enable Henderson to deliver on our promises,” Formica concluded.