Henderson Group - Trading Statement

Trading update

19 July 2011

Highlights

·; Underlying profit¹ in 1H11 expected between £83 million and £87 million (1H10: £48.5 million).

·; Total AUM at 30 June 2011 £74.4 billion (31 December 2010: £61.6 billion).

·; £575 million net inflows into Henderson retail in 1H11.

·; £439 million net inflows into Henderson and Gartmore absolute return funds in 1H11.

·; 91% of Gartmore's assets retained since 31 December 20102 (4 April 2011 'Completion': 93%), ahead of our expectations at acquisition announcement.

·; Integration of Gartmore well advanced.

Earnings guidance for 1H11

Henderson Group plc ('the Group') will be announcing its results for the six months ended 30 June 2011 on 17 August 2011.

However, in order to comply with ASX listing rules, it provides an update today to advise that underlying profit1 in 1H11 is expected to be between £83 million and £87 million (1H10: £48.5 million).

The underlying profit1 in 1H11 is expected to include gross performance fees of approximately £54 million (1H10: £24.6 million) and transaction fees of approximately £24 million (1H10: £16.6 million). Given lower performance fee potential in 2H11 the Group expects the level of performance fees generated in 2H11 to be substantially lower than 1H11.

Gartmore Group Limited ('Gartmore') flows and integration

The retention of Gartmore's assets remains ahead of expectations; at mid-year some 91% of the 31 December 20102 assets had been retained.

Gartmore's AUM as at 30 June 2011 were £15.5 billion. At the time of the acquisition announcement, Gartmore had £666 million of notified redemptions of which £224 million remain outstanding at 30 June 2011. Since Completion up to 30 June 2011 we have seen net outflows of £438 million (£294 million excluding previously notified redemptions).

In line with previous guidance, management remains confident that the operating margin of the acquired Gartmore business will exceed 50%. The acquisition remains on track to deliver significant enhancement in underlying earnings per share3 in 2011.

Integration of the Gartmore business is well advanced and has progressed smoothly. A further update will be provided when the Group announces its results for the six months ended 30 June 2011.

Summary of AUM and flows in 1H11

The Group also provides an update today on fund flows for 1H11 and detail on its average net management fee rates.

Total AUM at 30 June 2011 were £74.4 billion, £12.8 billion above AUM at 31 December 2010.

The acquisition of Gartmore added £15.7 billion to AUM at Completion partially offset by the £1.5 billion transfer from the Henderson Liquid Assets Fund to DB Advisors in February 2011. During 1H11, favourable market and foreign exchange rate movements of £1.4 billion and £575 million net inflows into Henderson retail, were offset by net outflows of £290 million from Gartmore retail, £148 million from Gartmore institutional, £2.6 billion from Henderson institutional and £407 million from Phoenix.

Henderson UK retail continues to see good net inflows (1H11: £482 million). Net flows in our US Mutuals range have turned positive and flows in the Henderson SICAV range, although net positive, were held back by eurozone concerns and ensuing market volatility.

In Property, we had £197 million net inflows in 1H11 and the property pipeline at 30 June 2011 was £1.5 billion.

The Henderson absolute return funds added £374 million of assets during 1H11 and we have seen returning interest in the Gartmore absolute return fund range.

Institutional net outflows, excluding Phoenix, include all of the £2.2 billion notified withdrawals announced in the Group's May Interim Management Statement, and other net outflows.

NSIM

The Group has sold its shareholding in WorldInvest Management Limited ('WorldInvest') to Connor, Clark & Lunn UK Limited ('CCL'). WorldInvest owns 100% of the share capital of New Star Institutional Managers Limited ('NSIM') and, therefore, the Group's interest in NSIM has been disposed of. The NSIM AUM of £1.1 billion transferred to CCL on 1 July 2011 and is therefore included in our AUM at 30 June 2011. The impact on the Group's profit in future periods is negligible.

Appendix 1: Detailed fund flows and AUM

Appendix 2: Detailed Gartmore AUM

 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 £74.4 billion assets under management and employed around 1,100 people worldwide (as at 30 June 2011).

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.