A heavy fall in the share price of Henderson (HGG) on the release of these full-year results tells us more about investor fears about the current state of markets than about the asset manager's 2015 performance. Henderson enjoyed healthy net inflows of £8.5bn, a boost of around a fifth on the previous year, as retail investors on both sides of the Atlantic poured into funds targeting global and European equities. But its outlook somewhat understatedly acknowledged the "difficult market conditions" experienced since the start of the year.
In the reported period, further quantitative easing in Europe lured retail investors in the region away from cash and into equities and fixed income. Meanwhile, in the US, fears over further interest rate rises pushed investors out of domestic markets. New business bumped management fees up 16 per cent to £468m, while a positive investment performance boosted performance fees by a fifth.
The group has been developing its Australian distribution network, making three acquisitions in the country. Chief executive Andrew Formica says Henderson will benefit from the existing relationships these companies have with the limited number of managed platforms in Australia, which are not always open to taking on new funds. Investors there are also chasing global equities and fixed income, but also display interest in moving back into emerging markets investments, Mr Formica says.
Broker Numis Securities expects adjusted EPS of 18p in 2016, compared with 17.2p in 2015.
HENDERSON (HGG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 229.1p | MARKET VALUE: | £2.59bn | |
| TOUCH: | 229.1-229.3p | 12-MONTH HIGH: | 314p | LOW: 227p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 92p* | NET CASH: | £203m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 432 | 13 | 3.6 | 6.5 |
| 2012 | 386 | 77 | 8.2 | 7.15 |
| 2013 | 473 | 107 | 10.1 | 8 |
| 2014 | 538 | 136 | 11.7 | 9 |
| 2015 | 631 | 168 | 14.7 | 10.3 |
| % change | +17 | +24 | +26 | +14 |
Ex-div: 5 May Payment: 27 May *Includes intangible assets of £681m, or 60p a share | ||||
