The firm saw inflows of £8.5bn of net new money, growth of 11%m, which it said were well ahead of the industry growth rate of 2%.
On the retail side of things, the bulk of the flows (£4.3bn) came into Henderson’s SICAV range, which is sold across continental Europe, Latin American and Asia. According to the group, the top-selling funds were the Henderson Gartmore Continental European and Henderson Gartmore UK Absolute Return.
In the UK specifically, Henderson said it saw continued demand for its UK Property and UK Absolute Return and strategic bond products, on the back of continued demand from client for alternative sources of income.
But, it added as a caveat that industry flows were more focused toward passive than active strategies. Henderson Strategic Bond, as client demand for alternative sources of income and absolute return products increased
Within the US, demand was greatest for European, international and global equities.
Market conditions
As ever, though, the type of funds into which those inflows went was impacted by market conditions. “The year started exceptionally strongly,” the firm said, “with increased client demand for European assets. Flows were supported by the announcement of further Quantitative Easing (QE) in Europe and we were well placed to benefit with excellent investment performance from our core European products.
“As the year progressed, market conditions became more challenging and investors sought downside protection from products offering income and risk-adjusted returns.”
On the institutional side, business was dominated by fixed income clients, the firm said, in particular a £1.7bn mandate that helped its institutional business to a small net inflow of just over £500m
“Client demand for income continued in the second half with good flows into outcome-oriented strategies in fixed income such as diversified credit and total return bond. However, outflows from traditional core sterling credit mandates partly offset inflows, as well as the £0.5bn outflow associated with the planned run-off of our Private Equity business,” Henderson said.
Looking forward, CEO, Andrew Formica, was less bullish pointing out that the first few weeks of 2016 have been challenging for investors and clients.
And, while the firm had entered the year with significant momentum, it expects 2016 to be a challenging operating environment buffeted not only by global market volatility but also regulatory scrutiny and changing client needs.
Formica was quick to add that the firm remains far from complacent, especially given the scale of the changes expected within the industry around the shift of the retirement burden from the state to the individual and the growing impact of an ageing population.
“Linked to this is the shift in investment demand from traditional products into passive, multi-asset and outcome-oriented products and mandates,” Formica said, adding: “Our focus remains on our core capabilities in active investment management, but with increasing focus on outcome-oriented strategies linked to income generation, absolute return and preservation of capital.
Asked about the threat of Brexit and it possible impact on Henderson, Formica said it would have a limited impact on the business but, he added: “If we leave, we will still have to follow the regulations but we will have no voice to influence them.”
Formica also added that after consulting with the board, the firm had decided the role of chief investment officer has been made redundant following the significant progress made on the building out of the firm’s investment management teams.
As a result, CIO Rob Gambi has left the business.
