Henderson Group's full year results show its assets under management fell by 16% from £59.2bn at 31 December 2007 to £49.5bn at 31 December 2008.
The group experienced net outflows of £800m across its higher margin range of investment trusts, horizon funds and wholesale funds in the UK and US. The losses also relate to the asset manager's hedge funds, and property portfolios in Europe and the US, as well as private equity and structured products.
Henderson Group attributed the drop in AUM to net fund inflows of £2.9bn, predominantly into its institutional and property divisions, which were offset by net fund outflows of £6.7bn from Pearl. This was worsened by unfavourable market and foreign exchange movements of £5.9bn.
The results also reveal that Henderson Global Investors' generated a profit before tax of £99.7m before tax in the 12 months to 31 December 2008. This compares with £109.6m for the same period in 2007, which is a drop of 9%.
Henderson Group chief executive Andrew Formica says the asset manager's AUM has proved resilient amid a tumultuous year for global equity markets.
Formica says: "Presently market levels are significantly below the average levels of 2008 and we expect the situation to persist in the short to medium term. Therefore, 2009 is likely to be more challenging for earnings than 2008. However, our competitive long-term investment performance, diversity of revenues and active cost management should provide some support."
He adds that the proposed acquisition of New Star Asset Management is expected to be completed in early April.
Full details of the offer to New Star shareholders are expected to be published on 11 March 2009. Henderson Group shareholders will have the opportunity to vote on the proposed acquisition at a general meeting on 2 April 2009.IFAonline
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