Flows across the business were weak and described as ‘below management expectations’: We believe Henderson is cheap relative to the sector, but there are several good reasons for this and as such we regard the share price as fair.
ARUN MELMANE CANACCORD GENUITY
Net asset flows continue to remain challenging for Henderson but the pace of outflows has reduced over the last few quarters. Post the repayment of £142.6m the remaining overall debt in the business amounts to £148.2m. The repayment of debt saves an annualised interest cost of £9.2m.
MARK IANNOTTI BANK OF AMERICA
Assets under management came in four per cent ahead of our estimates driven by better performance and slightly worse flows. The beat on costs highlights the embedded value still to come from the Gartmore transaction. We would not expect consensus to move up a great deal.