7th Aug 2014 10:01
LONDON (Alliance News) - Henderson Group PLC Thursday reported a decline in assets under management over the course of the second quarter, as the creation of a 40%-owned real estate joint venture with IAA-CREF and the additional stake it took in 90 West came into effect.
In a statement, the FTSE 250 investment manager said assets under management fell to GBP74.71 billion at the end of June, from GBP79.20 billion at the end of March. This was due to a GBP6.68 billion reduction due to those deals coming into effect, more than offsetting GBP1.86 billion of net inflows from retail clients and GBP179.0 million of institutional net inflows.
Henderson is also awaiting the closing of a deal to acquire Geneva Capital Management, which had USD6.3 billion in assets under management at the end of May, for up to USD200.0 million.
Henderson said its first half pretax profit almost trebled, to GBP209.7 million over the six months ended June 30 from GBP72.0 million in the corresponding period last year. The group reported that net income increased by GBP25.6 million to GBP261.9 million, more than offsetting a GBP23.4 million increase in expenses to GBP171.2 million.
However, results were boosted by a net gain of GBP112.7 million before tax due to a GBP141.9 million gain on the sale of the property business, less intangible amortisation of investment management contracts of GBP28.6 million. On an underlying basis, which strips out those effects, Henderson's pretax profit from continuing operations increased to GBP90.7 million, from GBP88.5 million.
"The second half has begun well, although we expect a slowdown in flows during the summer holiday season and more generally in the US, after an exceptional start to the year. Given our performance and product suite, we remain confident that we can deliver on our growth aspirations. We remain committed to being a trusted global asset manager, focused on delivering excellent performance and service to our clients," Chief Executive Andrew Formica and Chief Financial Officer Roger Thompson said in a joint-statement.
Henderson increased its interim dividend to 2.60 pence from 2.15p.
Henderson shares were Thursday quoted down 5.4% at 228.50p.
By Samuel Agini; [email protected]; @samuelagini
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