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Henderson buoyed by returning retail investors

Asset management group Henderson increased assets under management (AUM) by 4.8 per cent in the first quarter despite suffering a net outflow of funds from institutional investors.

Asset management group Henderson increased assets under management (AUM) by 4.8 per cent in the first quarter despite suffering a net outflow of funds from institutional investors.

The group enjoyed its first net retail inflow for two years, although across the group suffered net outflows of £1.3bn.

However, thanks to favourable foreign exchange movements of £4.5bn and rising equity markets, total AUM swelled £3.2bn to £68.9bn in the three months to the end of March.

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The net retail inflow of £188m was the first quarter of positive growth since the same period in 2011, even more impressive as it included outflows of £400m from the previously announced loss of two investment trust mandates and does not capture the win of a new £143m mandate falling just outside the period.

Net outflows from institutional investors were £1.2bn during the period, with Henderson noting that £840m of which was due to one client of acquisition Gartmore exiting from a mandate and an outflow of £331m in property primarily due to the winding up of a 10-year old fund as the fund reached the end of its life.

The group states that the pipeline for institutional business was "positive", with a large pipeline of uninvested client commitments totalling £1.1bn in property.

Andrew Formica, Chief Executive, said positive cash flows improved the group's financial strength, with net cash position up almost 80% to £31.9m at period-end.

Shares in Henderson Group were up 2p at 167.5p at 09:10 on the morning of the announcement.

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