Henderson Global Investors saw a net inflow of £1.2bn into its retail funds in Q3, driven by its equity fund range which saw a positive flow for the first time since 2011.
Total AUM increased £2.9bn or 4.3% to take the group's assets above the £70bn threshold.
The group saw positive flows return to its equity products in Q3 for the first time since Q1 2011, posting £889m of net inflows.
It had seen an outflow from equities of more than £1bn in the first quarter of 2013, and an £81m outflow in the second quarter of the year.
Institutional funds saw a net outflow of £107m, but a strong demand within the retail arm produced a total net inflow of £1.241bn. This figure compares to a £399m net inflow into retail funds in the second quarter.
The institutional outflow was caused by CDOs maturing, property sales, and clients moving from offshore absolute return funds into regulated, onshore funds, Henderson said.
UK OEICs and unit trusts saw strong demand, the group added, taking £473m in net flows, about the same as for its SICAV range.
Flows into investment trusts slowed significantly to just £7m, down from a £184m inflow in the second quarter of the year.
By region, the UK experienced high demand for specialist credit, European equities, its retail joint ventures Optimum and Cirilium, and the UK property unit trust.
Net absolute return inflows were £89m for the period, with increased demand for equity long/short and credit long/short strategies across the UK, Europe and Japan, Henderson said.
Group chief executive Andrew Formica (pictured) said: "The net inflows into our retail businesses are testament to both improved investor confidence and our consistently strong investment performance across our core product ranges.
"All our geographies have seen substantial increases in net flows during the period. This momentum and strong cash generation allow us to continue to invest in the business whilst strengthening our balance sheet further."
FTSE 100-listed Henderson saw its shares close down 0.4% yesterday at 213.27p. This week broker Shore Capital said Henderson shares are a 'sell' at this level as it expected the group's results to disappoint.
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