HENDERSON Global Investors, the retail and institutional fund manager, yesterday delivered a better than expected half year net profit despite £2.1bn fund outflows from the business.
The FTSE 250 listed firm showed pre-tax profits of £79m, down from £86.4m last year, but posted improved net profit of £46.4m after paying a lower effective tax rate of 10.1 per cent, saving £8m.
Despite the solid financial results, the firm saw its asset base slide as assets under management slumped from £74.4bn to £63.6bn.
Results show that £1.7bn left its equity funds since January with a further £457m leaving its fixed income range.
Management said it would focus on cost control and fund diversification to navigate weak investor confidence for risk assets.
Chief executive Andrew Formica told City A.M.: “These are solid results but there’s an air of disappointment around the net outflows.
“We have to keep looking at whether the funds are economic in size and appropriate.”
The firm has closed or merged 40 funds over the last 12 months as it seeks to control costs across the business.
“In some cases we haven’t had the right product or the right people, but the focus on the client has remained,” Formica said.
Shares finished up 2.37 per cent.