Henderson posts £100m net retail inflow across UK range

Henderson recorded a £100m net retail inflow across its UK Oeic and unit trust range in 2009.

The group, which took over ailing fund manager New Star in April, saw a £700m net inflow across its higher margin assets last year, with its Horizon range posting a £500m net wholesale inflow.

However, strong outflows from its lower margin New Star Institutional Managers business and Pearl assets led the group to a £4.6bn total net outflow over the period.

Taking into account the New Star acquisition and market movements, Henderson's total AUM at end 2009 was £58.1bn, a 17% rise on the previous year.

The lower margin outflows dented the group's 2009 recurring profit - before intangible amortisation, void property finance charge and tax - down to £73.7m, an 8% fall on 2008. Group profit before tax rose to £15.5m, compared to a loss of £17m the previous year.

Henderson says its investment performance improved significantly in most areas in 2009, with 94% of fixed income and 70% of equity funds achieving or beating their respective benchmarks.

This has translated across the New Star UK fund, with 62% of funds beating their benchmarks over one year to 31 December, compared to 13% at 30 June.

Henderson says its retail range has gained good traction over the period, with Richard Pease's New Star European Special Situations fund raising £128m since launch on 1 October.

John Pattullo and Jenna Barnard's Henderson Strategic Bond fund has also seen significant investor interest, growing from £346m at the start of 2009 to £750m.

The Henderson Multi-Manager Income and Growth fund, run by Bill McQuaker, has seen consistent inflows and was the best selling fund on the Cofunds platform in January 2010.

Henderson plans to rationalise its UK wholesale range from April, which will result in further fund mergers and closures. However, the group intends to continue its commitment to advertising spending in 2010 and also plans to launch selected new funds.

"Our overriding priority is to deliver the performance our clients expect. It is, therefore, encouraging to see that a significant number of New Star funds, that had previously lagged the market, are now in either the first or second quartile since acquisition," Henderson head of retail distribution Mark Skinner says.

"2010 will be a year of opportunity for us as we near full administration integration and complete a programme of fund rationalisation.

"We remain committed to our clients and their advisers and thank them for their continued support throughout the integration process."