Brexit bruises Henderson to the tune of £1bn

The fund manager, which earlier this month announced it had struck an all-stock merger with Janus Capital, reported a net outflow of £612 million over the three months to September 30.

Its results for the period came a day after Janus had revealed its investors had withdrawn $ 2.4 billion from funds over the quarter.

Henderson was badly hit by the UK’s vote to leave the European Union on June 23, a decision that saw spooked retail investors rushing for the exit. The group said more than 70% of its retail outflows had occurred in the “immediate aftermath” of the referendum.

Henderson was one of a number of big-name fund managers forced to close a commercial property fund following redemption requests in the wake of the Brexit vote. The £3.4 billion UK Property PAIF and Feeder Fund reopened on October 14.

Flows from institutional investors, however, held up well with Henderson enjoying net inflows of around £400 million. Henderson said the inflows reflected the health of its core UK business, as well as an increasingly global client base in continental Europe, the US and Australia.

Chief executive Andrew Formica added in a statement that the “pipeline of [institutional] mandates due to fund in the fourth quarter is strong”.

Total assets under management rose to £100.9 billion from £95 billion at the end of June, an improvement the group attributed to positive markets and foreign exchange gains caused by sterling weakness.

Long-term investment performance remained constant with 77% of its funds outperforming over three years, the same proportion as at the end of the second quarter.

On the plans to merge with Janus, Formica said the companies had been “very pleased with the supportive response” from clients, employees and shareholders.

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