Henderson sees inflows of £5bn as institutional flows turn positive

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International investor demand for European equities helped Henderson boost retail net inflows by more than seven times in the first half of 2014.

Retail client net inflows were £4.7bn between January and June, according to the firm's half-year results, compared to £600m for the same period in 2013.

Its institutional arm has also reversed its long-running trend of withdrawals, moving from outflows of £2bn last year to net inflows of £300m. Overall, the firm saw £5bn in net inflows.

The firm attributed its jump in flows to a growing international presence, demand for European equities - a core Henderson strategy - and strong distribution relationships. Close to half of flows came from Henderson's SICAV range, marketed at European, Latin American and Asian investors, while a fifth came from US mutuals.

Twelve retail funds saw net inflows of more than £100m during the half-year, with Henderson Horizon Pan European Alpha topping sales.

Assets under management at 30 June were up 10% to £74.7bn. The acquisition of Geneva Capital Management in June is expected to increase the firm's US AUM to 15% of the total. The firm hopes to double AUM by 2018. 

The firm also reported a boost to profits, with underlying profit before tax of £90.7m, compared to £88.5m for the same time last year. Revenue from management fees increased, while that from performance fees fell.

Henderson chief executive Andrew Formica said: "We have made great strides on a number of fronts in the first half of 2014 towards delivering on our strategy.

"We are starting to see early results from some of our previous investments, including mandate wins for our global equities strategy and excellent first year performance from our US high yield team.

"We continue to add resources in investment management and distribution and are enhancing our global platforms. I was delighted to be able to announce the acquisition of Geneva Capital Management at the end of June, to add US equities capability to our business and extend our US institutional client base."

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