Henderson Group (HGG) was buoyed by demand for its European and global equity strategies from retail investors on both sides of the Atlantic. The introduction of quantitative easing in Europe lured savers out of cash and back to the equity markets, while US investors looking for returns in a low-rate environment bought global growth and income stocks outside of their home market.
This contributed to £5.6bn-worth of net inflows for the period (from £5bn in the first half of 2014). As a result, assets under management increased by 10 per cent year on year to just over £82bn at the end of June. Chief executive Andrew Formica was particularly bullish about Henderson's US distribution, saying the company was "just scratching the surface" with its three equity strategies. Henderson has a range of funds coming up to the three-year track record mark needed to sell them effectively.
Mr Formica batted off concerns over negative headlines in Australia surrounding practices at financial adviser IOOF, from which Henderson acquired £5.5bn of AUM in June and with which it hoped to form a "strong relationship". These problems have "nothing to do with the business we bought", he said, adding that the client-facing adviser groups under IOOF's umbrella are currently escaping any reputational contagion.
Analysts at Numis expect pre-tax profits of £219m for the full year, giving EPS of 16.4m, compared with £188m and 14.7p in 2014.
| HENDERSON (HGG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 273.5p | MARKET VALUE: | £3.1bn | |
| TOUCH: | 273.2-273.5p | 12-MONTH HIGH: | 303p | LOW: 180p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 88p* | NET CASH: | £119m | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 321 | 61.5 | 5.0 | 2.6 |
| 2015 | 365 | 98.1 | 8.3 | 3.1 |
| % change | +14 | +60 | +66 | +19 |
Ex-div: 27 Aug Payment: 18 Sep *Includes intangible assets of £658m, or 58p a share | ||||
