Fund manager Henderson (HGG) delivered solid progress at the half-year stage - helped by a net retail fund inflow of £587m and a strong performance from the group's funds. Accordingly, underlying half-year pre-tax profit rose 22 per cent year on year to £101m.
Total assets under management (AUM) have increased by £2.3m to £67.9bn since the December year-end and some 73 per cent of the group's funds met or exceeded investment performance benchmarks. Moreover, net management fees rose by 4 per cent to £186m, while performance fees more than doubled from last year's £22.2m to £57.5m.
Henderson did see £2bn of institutional fund outflows, but this was more than offset by £600m of retail inflows and a market rise that boosted AUM by £3.7bn. That, says management, mainly reflects legacy issues relating to Gartmore funds. Prospects for the second quarter look better. Mandate wins since the period ended, for instance, haven't been reflected in the figures and, at end-July, funded mandates matched the outflows seen in the second quarter. While, in the property investment book, there's a pipeline of around £1bn of client commitments that have yet to be invested.
Geographically, some 75 per cent of gross fees and commissions are generated in the UK, although management points to well-established operations in the US and Asia which are expected to grow solidly.
Broker Oriel Securities expects full-year pre-tax profit of £176m and EPS of 12.8p (from £146.5m and 11.7p in 2012).
HENDERSON (HGG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 168p | MARKET VALUE: | £1.88bn | |
| TOUCH: | 167-168p | 12-MONTH HIGH: | 182p | LOW: 101p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 72p* | |||
| Half-year to 30 Jun | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2012 | 49.3 | 4.9 | 2.10 |
| 2013 | 72.0 | 6.3 | 2.15 |
| % change | +46 | +29 | +2 |
Ex-div: 28 Aug Payment: 20 Sep *Includes intangible assets of £694m, or 62p a share | |||
