Henderson fee income cheers despite more fund outflows

FUND manager Henderson yesterday said it had doubled its fee income in the past six months compared with the first half of 2010, but could not stem outflows as investors moved money out of its funds.

Performance fees jumped 120 per cent and transaction fees were up 45 per cent compared with 2010, pushing Henderson’s overall first-half profit guidance to £83-87m, ahead of analyst expectations.

But while Henderson said 91 per cent of Gartmore’s assets – now worth £15.5bn - remained in place, investors pulled a net £438m from Gartmore funds and a total £2.9bn from the group as a whole.

Institutional outflows from Henderson funds made up £2.6bn of that amount, while its retail funds attracted only £575m of new capital.

And Henderson warned that fee income was likely to slow “substantially” in the second half.

“Given lower performance fee potential in 2H11 the group expects the level of performance fees generated in 2H11 to be substantially lower than 1H11,” it said in a statement.

Henderson said its integration of Gartmore was on track. Its total assets under management were £74.4bn.