Henderson share price falls and blames Brexit vote for July’s retail exodus
Henderson said that its retail investors scampered for covered following this summer's Brexit vote, with large numbers of withdrawals from its funds during July.
Reporting on its third quarter performance, the asset manager said that retail outflows totalled £1bn, of which 70 per cent of them occurred in the immediate aftermath of the Brexit vote.
Shares in the FTSE 250 company fell by over one per cent in morning trading.
Read more: Henderson shares shoot up on plans to merge with Bill Gross' Janus Capital
Institutional investors, such as banks, pension funds and other financial companies, were less spooked and Henderson said that it had a £400m inflow from them over the three months to September.
"Our Institutional business continues to see steady growth, and the pipeline of mandates due to fund in the fourth quarter is strong," said chief executive Andrew Formica.
The asset manager's share price bounced back pre-Brexit vote levels after announcing on 3 October its plans to merge with Bill Gross' Janus Capital. It has subsequently lost some ground as investors digest the proposals.
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Formica said:
We are very pleased with the supportive response we received from clients, employees and shareholders to the announcement of our merger with Janus Capital Group.
Over the next few months, we will continue to serve our clients with our customary dedication, and use the time well to prepare for the launch of Janus Henderson Global Investors.
Despite the net outflows, assets under management grew during the quarter by six per cent to £101bn, boosted by a combination of market and FX gains.