Interim Management Statement

Interim Management Statement

11 May 2010

Henderson Group plc ('Henderson Group' or 'the Group') is today publishing its first Interim Management Statement for 2010, in accordance with the EU Transparency Directive and revised UK Listing Authority rules. Unless otherwise stated, the comments below refer to the first quarter of the current financial year, representing the period from 1 January 2010 to 31 March 2010 ('the period').

Key points

·; Assets under management ('AUM') increased by £2.2 billion (4%) in the period to £60.3 billion.

·; Good investment performance across a broad range of products; in Listed Assets 69% of funds are outperforming over one year.

·; Net inflows of £0.7 billion into higher margin and £0.3 billion into our fixed income Institutional business with a further £0.6 billion pipeline of client commitments in this channel.

·; The administration systems for Henderson and New Star funds were successfully migrated to a single platform and all New Star funds renamed as Henderson in April.

Commenting on the Interim Management Statement, Andrew Formica, Henderson Group's Chief Executive said: "We capitalised on our good investment performance and the better conditions across most markets and asset classes. We saw positive net flows in most of our higher margin businesses and good demand from Institutional clients in the first quarter. Given the diversity of our business and our healthy pipeline of client commitments, the organic growth outlook for Henderson remains strong. We are also considering further opportunities to expand the Group."

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

Summary of movements in AUM

¹ New Star Institutional Managers

Favourable market and currency movements across the business of £2.8 billion, were partially offset by net fund outflows of £0.6 billion during the period, bringing total AUM to £60.3 billion at 31 March 2010, 4% higher than at 1 January 2010 (£58.1 billion).

Higher margin net inflows were £0.7 billion during the period consisting of £0.5 billion into the Wholesale business (£0.4 billion Horizon and £0.1 billion US Wholesale) and £0.2 billion into both Hedge funds and non-US Property, partially offset by a £0.1 billion outflow from each of Investment Trusts (relating to expected outflows from a New Star investment trust) and Structured Products.

The strong net inflows in our Horizon fund range were spread across a series of funds but predominantly into our Pan European Equity and Global Technology funds. Our US Wholesale business saw net positive fund flows with our US Global Equity Income Fund and International Opportunities Fund attracting most of the flows.

The positive trend in fund flows since the second quarter of 2009 in our hedge fund business continued and we saw good flows across a number of our hedge funds including the Japan Funds, UK Equity Long Short and into a number of our Asian hedge funds.

We invested £0.2 billion of the Property pipeline in the period, mainly into the European Retail Fund and our KAG Funds. Property client commitments were £1.3 billion at 31 March 2010 (£1.4 billion at 31 December 2009).

In our UK Wholesale business, we recorded good net inflows in the Strategic Bond, European Special Situations and Multi-Manager Income and Growth funds. These and inflows elsewhere in the fund range were offset by a number of smaller outflows across the New Star range and the impact of previous withdrawal notices relating to the International Property fund following its reopening in February. Overall, flows in our UK Wholesale business were stable. Since the end of the period, with the successful migration of the administration systems for Henderson and New Star funds onto a single platform and the rebranding of all New Star funds as Henderson, we have seen positive net flows in UK Wholesale.

In Private Equity, we saw an improvement in the performance of the funds which was the main driver for the increase in assets in this area. This increase was predominantly in one of the infrastructure funds where the plans we have implemented to restore the value in this fund are beginning to bear fruit. However, despite its encouraging improvement recently, this fund's performance since inception remains disappointing and clients have written to us expressing their concerns. We have engaged with these clients and their advisers and remain focused on improving the performance of this fund.

In the lower margin businesses, inflows of £0.4 billion into our Institutional business, mostly into fixed income products, were partly offset by the expected outflow of the remaining £0.1 billion New Star Private Clients money in January 2010. The net inflows in our Institutional business were offset by redemptions of £0.5 billion from our cash funds and £0.4 billion from NSIM. Overall, lower margin products saw net outflows of £0.6 billion during the period. The Henderson Institutional business has a net pipeline of client commitments of approximately £0.6 billion made up of fixed income and global equity funds as at the end of the period.

We had net outflows of £0.7 billion from Pearl in the period: £0.4 billion from the run-off of Pearl's closed life books and £0.3 billion in respect of previously notified withdrawals. Pearl has a further £2.1 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 unexpected impact on Henderson's future revenues.

Investment performance

Overall, Henderson's investment performance remained good during the period.

In Listed Assets performance is good, with 69% of Equity and Fixed Income funds achieving or beating their benchmarks over one year (three years: 72%). We are pleased to have recently been awarded 'Fixed Income Manager of the Year' at the UK Professional Pensions Awards dinner and, for the second year running, at the FT Business Pension and Investment Provider Awards.

In Henderson UK Wholesale, investment performance was strong with 88% of assets in first or second quartile (three years: 78%). Investment performance of the New Star UK wholesale funds was also strong with 86% of funds achieving or beating their benchmarks over one year, the first full year under our stewardship (three years: 22%).

We are pleased with the strong performance in Horizon SICAVs over the quarter with 77% of assets beating target. Performance over one year has seen 52% of assets beating target, whilst over three years the numbers remain excellent with 85% of assets beating target.

The three-year investment performance of our US Wholesale business remained excellent with 98% of assets outperforming, however, over one year the International Opportunities fund has lagged its peers resulting in 15% of assets in our US Wholesale business outperforming. The International Opportunities fund is a flagship fund and, other than its most recent performance, has been top quartile consistently over two, three and five years.

In the Henderson Institutional business, investment performance was good with most of the funds meeting or beating their benchmarks over one and three years. Our Hedge funds performance remained strong with 100% of funds meeting or beating benchmarks over one year (three years: 87%).

Branding

We undertook a company-wide rebranding project during the period, the catalyst being the integration of the Henderson and New Star client administration systems on to the same platform on 6 April 2010. The Henderson New Star name was replaced by Henderson Global Investors. All funds with a "New Star" prefix became "Henderson" funds. In tandem with the decision to remove the New Star brand, there was a strong desire for a group-wide invigoration of the Henderson brand. A new Henderson Global Investors logo and brand identity has been developed, which builds on the investment made into the UK retail brand over the last year.

Balance sheet

The Group's balance sheet at 31 March 2010 comprised total net assets of £295.8 million (31 December 2009: £282.2 million) including cash and cash equivalents of £101.5 million (31 December 2009: £119 million).

Dividend

As announced at the end of February, the Board is recommending a final dividend for 2009 of 4.25 pence per share, which will bring the total dividend for 2009 to 6.1 pence per share, the same as the total dividend paid for 2008. The proposed final dividend will be paid on 28 May 2010 to shareholders on the register on 7 May 2010.

2010 interim results

We intend to release the Group's 2010 half-year results on 18 August 2010.

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Appendix

Number of shares for earnings per share (EPS) calculations¹

¹ This is a full-year weighted average number of shares based on current issued share capital and employee share plans adjusted for expected movements until the end of 2010.

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 £60.3 billion assets under management and employed around 930 people worldwide (as at 31 March 2010).

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.