Henderson sees some stability after rush of outflows at start of 2017

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Henderson Global Investors has bumped up its assets under management, but has still suffered outflows in the opening months of this year.

The investment house, which is in the process of merging with US rival Janus Capital, said today it suffered a net outflow of £1.4bn from its retail clients, and £400m from institutional clients in the quarter ending in March.

All told, 85 per cent of the outflows came in January and February, with a steadier tone in March. “This positive trend continued into April,” the company said today.

It’s not just cash that has left the building. Several senior investment staff have left ahead of the Janus tie-up, which is expected to receive shareholder approval at the end of this month.

The eight departures, which include Henderson’s head of global equities and a high-yield bond team, stem partly from efforts to eliminate overlap after the deal. Some staff have also cited concerns about transatlantic cultural differences between the UK fund house and Denver-based Janus Capital.

Still, positive investment performance and help from exchange rate movements helped assets under management to rise by just over £2bn, to £103.1bn.

Andrew Formica, Chief Executive of Henderson, said:

While Retail client outflows continued, we saw an improvement in client sentiment and flows as we moved towards the end of the quarter. Aside from the one-off outflows that resulted from the merger-related restructuring of our Global Equities team, our Institutional business continues to see steady growth, with a healthy number of mandates funding since quarter end.

We have made substantial progress in preparation for our proposed merger with Janus Capital Group.

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