TIDMHGG
RNS Number : 5542B
Henderson Group plc
29 October 2009
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Interim Management Statement
29 October 2009
Henderson Group plc ('Henderson Group' or 'the Group') is today publishing its
second Interim Management Statement for 2009, in accordance with the EU
Transparency Directive and revised UK Listing Authority rules. Unless otherwise
stated, the comments below refer to the third quarter of the current financial
year, representing the period from 1 July 2009 to 30 September 2009 ('the
period').
Key points
* Assets under management ('AUM') increased 9% in the period to GBP57.7 billion.
* Strong investment performance across a broad range of Listed Assets products
with 81% of funds outperforming over one year.
* Net inflows of GBP0.3 billion into higher margin products offset by GBP0.3
billion outflows from lower margin products and GBP1.2 billion from Pearl.
* Positive market and foreign exchange rate movements of GBP5.9 billion.
* Strengthened our sales and distribution team to support the improved outlook for
markets.
* Well positioned to take advantage of further opportunities.
Commenting on the Interim Management Statement, Andrew Formica, Henderson
Group's Chief Executive said: "Conditions across most markets and asset classes
have continued to improve during the period and, together with good investment
performance, have led to increased client demand for our products. This,
supported by a healthy pipeline of client commitments, the diversity of our
revenues and prudent management of our resources, makes us confident of
delivering on our business and strategic objectives.
We remain committed to providing clients with more valuable investment products.
Generating profitable organic growth continues to be our primary focus. That
said, where we see other opportunities, at attractive prices, to extend our
product offering and build market share, we will seek to take advantage of
them."
Henderson Group plc
47 Esplanade
St Helier
Jersey JE1 0BD
Registered in Jersey
No. 101484
ABN 67 133 992 766
Fund flows and AUM for Henderson Global Investors ('Henderson')
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| | 1 Jul - 30 Sep 2009 | 1 Jan - 30 Sep 2009¹ |
+----------------+--------------------------------------------+------------------------------------------------------+
| GBPbn | Opening | Net | Market/ FX | ClosingAUM | Opening | New | Net | Market/ FX | ClosingAUM |
| | AUM | flows | 1 Jul - 30 | | AUM | Star | flows | | |
| | | 1 Jul | Sep | 30 Sep | 1 Jan | take-on | 1 Jan | 1 Jan - 30 | 30 Sep |
| | 1 Jul | - 30 | | | | 9 Apr | - 30 | Sep | |
| | | Sep | | | | | Sep | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Higher margin | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Investment | 2.8 | - | 0.6 | 3.4 | 2.7 | 0.1 | - | 0.6 | 3.4 |
| Trusts | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Horizon funds | 2.6 | 0.1 | 0.5 | 3.2 | 2.3 | - | 0.4 | 0.5 | 3.2 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| UK Wholesale | 8.1 | - | 1.5 | 9.6 | 3.1 | 4.7 | - | 1.8 | 9.6 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| US Wholesale | 2.3 | 0.2 | 0.4 | 2.9 | 2.3 | - | 0.1 | 0.5 | 2.9 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Hedge funds | 0.7 | 0.1 | 0.1 | 0.9 | 0.8 | 0.1 | (0.2) | 0.2 | 0.9 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Property | 7.2 | - | (0.1) | 7.1 | 7.6 | 0.5 | (0.4) | (0.6) | 7.1 |
| (UK/Europe) | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Property (US) | 1.3 | - | 0.1 | 1.4 | 1.7 | - | - | (0.3) | 1.4 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Private Equity | 0.9 | - | (0.3) | 0.6 | 1.2 | - | - | (0.6) | 0.6 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Structured | 1.8 | (0.1) | 0.2 | 1.9 | 2.2 | - | (0.2) | (0.1) | 1.9 |
| Products | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Total higher | 27.7 | 0.3 | 3.0 | 31.0 | 23.9 | 5.4 | (0.3) | 2.0 | 31.0 |
| margin | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Lower margin | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Institutional | 14.4 | (0.1) | 1.8 | 16.1 | 14.1 | 0.2 | 0.6 | 1.2 | 16.1 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| NSIM² | 2.4 | (0.2) | 0.4 | 2.6 | - | 2.5 | (0.4) | 0.5 | 2.6 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Total lower | 16.8 | (0.3) | 2.2 | 18.7 | 14.1 | 2.7 | 0.2 | 1.7 | 18.7 |
| margin | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| | 44.5 | - | 5.2 | 49.7 | 38.0 | 8.1 | (0.1) | 3.7 | 49.7 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| | | | | | | | | | |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Pearl | 8.5 | (1.2) | 0.7 | 8.0 | 11.5 | - | (4.0) | 0.5 | 8.0 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
| Total AUM | 53.0 | (1.2) | 5.9 | 57.7 | 49.5 | 8.1 | (4.1) | 4.2 | 57.7 |
+----------------+---------+--------+------------+------------+---------+---------+--------+------------+------------+
¹ Year-to-date flows, market and currency movements are adjusted to reflect
rounding differences.
² New Star Institutional Managers.
Favourable market and currency movements of net GBP5.9 billion, partially offset
by net fund outflows of GBP1.2 billion during the period, brought total AUM to
GBP57.7 billion at 30 September 2009, 9% higher than at 30 June 2009 (GBP53.0
billion). Market and currency movements across the business were favourable
despite unfavourable movements in UK and Europe Property (GBP0.1 billion),
largely as a result of currency movements, and Private Equity (GBP0.3 billion),
as a result of the revaluation of one fund³.
Higher margin net inflows were GBP0.3 billion during the period consisting of
GBP0.3 billion into the Wholesale business (GBP0.2 billion US Wholesale and
GBP0.1 billion Horizon) and GBP0.1 billion into Hedge funds partially offset by
a GBP0.1 billion outflow from Structured Products. Encouragingly, following the
acquisition of New Star Asset Management Group PLC ('New Star') in April 2009,
flows in our combined Henderson New Star UK Wholesale business have stabilised
during the period. Our other higher margin businesses were also stable during
the period. During October we have seen continued client demand,
particularly across our Wholesale funds. Following the acquisition of New Star,
we have launched our first UK wholesale fund under our combined Henderson New
Star business. The European Special Situations fund managed by Richard Pease
has, since its launch on 1 October 2009, attracted around GBP50 million. Given
the improving flows in our Wholesale business, we have strengthened our sales
and distribution capability representing our UK, pan-European and US wholesale
ranges.
In Property, modest investment of existing client commitments during the period
was offset by the reduction in debt in one fund and an asset sale. Property
client commitments remained at GBP1.6 billion at 30 September 2009. In addition,
our Property team has been appointed by the Australian Government Future Fund to
manage its initial UK property investment of GBP210 million. This inflow will be
included in our fourth quarter AUM. We expect an increase in the pace of
investment from the end of 2009 and into 2010.
Lower margin products saw net outflows of GBP0.3 billion during the period.
Flows of GBP0.3 billion into our Fixed Income business, mostly into asset-backed
securities funds, were offset by redemptions of GBP0.3 billion from equity
funds, including a long-standing US sub-advisory mandate taken in-house, GBP0.1
billion from our cash funds and GBP0.2 billion from NSIM. The
Henderson Institutional business has a net pipeline of client commitments of
around GBP0.7 billion made up of fixed income, global equity and cash funds.
This pipeline will be partially offset by the outflow of GBP0.2 billion New Star
private client money previously highlighted and expected to occur in the fourth
quarter of 2009 and a further GBP0.2 billion net outflow from NSIM that occurred
in October 2009.
We had net outflows of GBP1.2 billion from Pearl in the period: GBP0.3
billion from the run-off of Pearl's closed life books and GBP0.9 billion in
respect of previously notified withdrawals. Pearl has a further GBP1.4 billion
of assets which it has given notice on, but has yet to withdraw. We continue to
manage these funds on a care and maintenance basis. Given the investment
management and other related agreements entered into with Pearl in June 2006,
the Pearl fund outflows mentioned above will not have any material impact on
Henderson's future revenues.
Investment performance
Overall, Henderson's investment performance in Listed Assets is good, with 81%
of Equity and Fixed Income funds achieving or beating their benchmarks over one
year (three years: 77%). Property and Private Equity investment performance
have been adversely impacted by current market conditions. Property however, has
seen an improvement in investment performance in the third quarter of 2009 as UK
market conditions improve, although the overall track-record remains impacted by
the adverse market movements over the past two years. NSIM's investment
performance has been disappointing.
US Wholesale maintained its excellent track record with 98% of assets
outperforming over one year (three years: 98%). The Horizon SICAVs continued to
deliver strong performance with 74% of assets beating target over one year
(three years: 86%). In Henderson UK Wholesale investment performance suffered
slightly over one year with 51% of assets beating their benchmarks (three years:
57%). In the Henderson Institutional business, 87% of assets have beaten their
benchmarks over one year (three years: 83%). Investment performance of the New
Star UK wholesale funds continues to improve with 61% of funds achieving or
beating their benchmarks year-to-date although performance over one year
remains poor at 24% (three years: 14%).
In light of current investment performance and recent market improvements, we
remain confident of our previous guidance for full-year 2009 on performance and
transaction fees.
Balance sheet
The Group's balance sheet at 30 September 2009 comprised total net assets of
GBP283.5 million (largely unchanged since 30 June 2009) including unrestricted
cash balances of GBP81.2 million.
Board of Directors
As announced in mid-September, John Roques will retire as a Non-Executive
Director of the Group on 31 December 2009 and Robert Jeens will become Chairman
of the Audit Committee at that time.
³ Valuation as at 30 June 2009, completed in third quarter of 2009.
..........*..........
Appendix: Number of shares for earnings per share (EPS) calculations
+----------------------------+------------+----------------------------+------------+
| FY09(E)¹ | FY09(E)¹ |
+-----------------------------------------+-----------------------------------------+
| Basic EPS calculation: | No. | Diluted EPS calculation: | No. |
| | (millions) | | (millions) |
+----------------------------+------------+----------------------------+------------+
| Issued share capital | 810.0 | Shares for Basic EPS | 759.4 |
| | | calculation | |
+----------------------------+------------+----------------------------+------------+
| Less: own shares | (45.5) | Add back: own shares | 45.5 |
| (unconditional awards) | | (unconditional awards) | |
+----------------------------+------------+----------------------------+------------+
| Less: own shares | (5.1) | Add back: dilutive | 4.7 |
| (conditional awards) | | potential of | |
| | | share options | |
+----------------------------+------------+----------------------------+------------+
| Shares for basic EPS | 759.4 | Shares for diluted EPS | 809.6 |
| calculation | | calculation | |
+----------------------------+------------+----------------------------+------------+
¹ This is a full-year weighted average number of shares based on current issued
share capital and employee share plans.
Forward-looking statements
This announcement contains forward-looking statements with respect to the
financial condition, results and business of Henderson Group. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
events, and depend on circumstances, that will occur in the future. Henderson
Group's actual future results may differ materially from the results expressed
or implied in these forward-looking statements. Nothing in this announcement
should be construed as a profit forecast.
Notes to editors
About Henderson Group plc
Henderson Group plc ('Henderson Group' or 'Group') is the holding company of the
investment management group Henderson Global Investors ('Henderson'). Henderson
Group's principal place of business is in London and since December 2003 it has
been dual-listed on the London Stock Exchange and Australian Securities Exchange
('ASX'). Henderson Group is a constituent of the FTSE 250 and S&P/ASX 200
indices. Since 31 October 2008, the Group has been incorporated in Jersey and
tax-resident in the Republic of Ireland.
Established in 1934, Henderson is a leading independent global asset management
firm. The company provides its institutional, retail and high net-worth clients
with access to skilled investment professionals representing a broad range of
asset classes, including equities, fixed income, property and private equity.
Henderson is one of Europe's largest investment managers, with GBP57.7 billion
assets under management and employed around 940 people worldwide (as at 30
September 2009).
About CHESS Depositary Interests
In this announcement, the term "shareholders" refers to all holders of
Henderson Group plc shares, including those whose holdings are in the form of
CHESS Depositary Interests on the Australian Securities Exchange.
CHESS Depositary Interests, or CDIs, are a way of allowing securities of foreign
companies to be traded on the Australian Securities Exchange. CDIs afford
shareholders all the same direct economic benefits as ordinary shares, like the
right to dividends and the right to participate in rights offers.
+-------------------------------------------------+-------------------------------------------------+
| Further information | |
| www.henderson.com or | |
+-------------------------------------------------+-------------------------------------------------+
| | |
+-------------------------------------------------+-------------------------------------------------+
| Investor enquiries | |
+-------------------------------------------------+-------------------------------------------------+
| Mav Wynn, Head of Investor Relations | +44 (0) 20 7818 5135 or |
+-------------------------------------------------+-------------------------------------------------+
| | +44 (0) 20 7818 5310 |
+-------------------------------------------------+-------------------------------------------------+
| | mav.wynn@henderson.com or |
+-------------------------------------------------+-------------------------------------------------+
| | investor.relations@henderson.com |
+-------------------------------------------------+-------------------------------------------------+
| | |
+-------------------------------------------------+-------------------------------------------------+
| | |
| Media enquiries | |
+-------------------------------------------------+-------------------------------------------------+
| Richard Acworth, Head of Corporate | +44 (0) 20 7818 3010 |
| Communications | richard.acworth@henderson.com |
| | |
+-------------------------------------------------+-------------------------------------------------+
| United Kingdom: Maitland | Australia: Cannings |
+-------------------------------------------------+-------------------------------------------------+
| Brian Cattell/ Rebecca Mitchell | Luis Garcia |
+-------------------------------------------------+-------------------------------------------------+
| +44 (0)20 7379 5151 | +61 (0)2 8284 9990 |
+-------------------------------------------------+-------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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