28th Apr 2015 06:56
LONDON (Alliance News) - Henderson Group PLC Tuesday reported a 10% increase in assets under management in the first quarter of 2015, driven by what it said were record quarterly net inflows of GBP3.6 billion, and it also agreed to sell its 40% stake in TH Real Estate to TIAA-CREF for GBP80 million, giving its cash position a boost.
In a statement, the fund manager said its assets under management increased to GBP89.4 billion from GBP81.2 billion in the three months ended March 31. Retail net inflows amounted to GBP2.90 billion, while institutional net inflows amounted to GBP656 million.
Positive foreign exchange and market movements bolstered assets under management by GBP4.17 billion, including its 40% stake in TH Real Estate assets.
Chief Executive Andrew Formica said that Henderson has benefited from the European Central Bank's announcement of quantitative easing back in January.
"Increased client demand for European assets has coincided with a sustained period of excellent investment performance from our core European products. However, it is difficult to predict how long the QE effect will last, the UK market outlook remains uncertain, and US interest rates look set to rise later this year," Formica said in a statement.
"Notwithstanding these market uncertainties, our strong momentum and the investments we have made to build a well-diversified, global business should help us make good progress towards our long term growth targets this year," Formica said.
The sale of the 40% stake in TH Real Estate is expected to complete on June 1.
"Our decision to sell our 40% holding in TH Real Estate will give them the best possible opportunity to grow their business," Formica said.
"We will retain a strong commercial relationship with TH Real Estate, as they will continue to sub-advise our highly successful Henderson UK Property OEIC," Formica said.
By Samuel Agini; [email protected]; @samuelagini
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