Henderson reports Q3 retail outflows on Brexit

Henderson Group reported a 6% rise in assets under management in the third quarter, but retail outflows of £1bn, which it said coincided with the UK’s vote to leave the European Union.

Assets under management at the end of September were £100.9bn compared to £95bn at the end of June, driven by positive markets and FX gains on the back of sterling weakness.

However, retail investors took £1bn from its funds, with over 70% of the outflow occurring in July in the immediate aftermath of the UK referendum. Henderson said that despite a stronger economic backdrop than many expected, retail client sentiment remains cautious.

The company saw net inflows of £0.4bn from institutional investors, which it said reflected continued success in its core UK business and an increasingly global client base in Continental Europe, the US and Australia.

There were inflows into global technology, global natural resources, small and mid-cap US equities, and credit, with flows in the pipeline into emerging markets equity, global credit, European high yield, Australian fixed income and global buy and maintain credit.

Chief executive Andrew Formica said: "This quarter's retail outflows were concentrated in the period immediately after the UK Referendum, with the rotation out of European assets balanced to some extent by continued demand for absolute return and income generating strategies. Our Institutional business continues to see steady growth, and the pipeline of mandates due to fund in the fourth quarter is strong.

"We are very pleased with the supportive response we received from clients, employees and shareholders to the announcement of our merger with Janus Capital Group. Over the next few months, we will continue to serve our clients with our customary dedication, and use the time well to prepare for the launch of Janus Henderson Global Investors."

At 0924 BST, Henderson shares were down 1% to 236.10p.