Henderson feels pain of market slump

VOLATILE markets took their toll on fund manager Henderson over the past quarter, it said yesterday, as nervy investors withdrew funds and falling markets reduced the value of its investments.

Henderson, which bought its rival Gartmore in January, said investors took a net £1.9bn out of its funds in the three months to the end of September, split about evenly between the two brands, as European retail clients cut back on their risk exposure.

The market turmoil then slashed a further £5.9bn from the value of its funds as equities lost value and bond yields fell, leaving Henderson’s assets under management at £65.4bn, down by £9bn or 12 per cent from June.

Chief executive Andrew Formica said markets were “extremely challenging” but the investor rush to cash should reverse if they improve.

“We…anticipate uncertain and volatile market conditions for at least the remainder of this year. However, as we saw post 2008/2009, once volatility subsides, investor demand for equities should return,” he said.

Analysts said the loss to assets under management was less than expected, while Henderson said it had a net £700m in commitments from institutional investors to its funds.

“Flows are unsurprisingly negative but small in a group context,” said Singer Capital analyst Sarah Ing.