Fund manager Henderson's (HGG) half-year figures revealed a 10 per cent hike in funds under management (FUM) to £74.7bn. But that was still weaker than some analysts had expected: Numis Securities, for instance, says FUM (adjusted for joint-ventures) came in around 5 per cent lower than its forecast. And Henderson’s shares fell 6 per cent on the day the figures appeared.
The group did see nearly £5bn of net fund inflows from retail clients, which is a big improvement on last year’s £0.6bn net retail inflow. That's presumably due to strong performance: Henderson says 86 per cent of its funds have outperformed their benchmarks on a three-year basis. But institutions still aren’t flocking to the fund manager. It saw just £0.3bn of institutional fund inflows in the period - although that’s an improvement on last year’s £2bn net outflow of institutional funds.
The group’s decision in late June to buy Milwaukee-based Geneva Capital Management - which comes with $6.3bn (£3.8bn) of FUM - should help expand Henderson’s US institutional client base. But management has cautioned that it’s expecting a slowdown in fund inflows in the US, after an exceptionally robust start to the year.
Numis expects full-year pre-tax profit of £215m, giving EPS of 16.3p (from £190m and 14.9p in 2013).
HENDERSON (HGG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 230p | MARKET VALUE: | £2.6bn | |
| TOUCH: | 229.7-230p | 12-MONTH HIGH: | 275p | LOW: 163p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 84p* | NET CASH: | £123m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 291 | 59.5 | 5.2 | 2.15 |
| 2014 | 321 | 61.5 | 5.0 | 2.6 |
| % change | +10 | +3 | -4 | +21 |
Ex-div: 27 Aug Payment: 19 Sep *Includes intangible assets of £619m, or 55p a share | ||||
