Henderson posted record profits in 2013 following a return to positive UK retail flows.
The group recorded pre-tax profits of £190.1m for 2013, helped by overall net inflows of £2.5bn.
Total AUM climbed from £65.7bn to £75.2bn in the last year, with net inflows bolstered by markets and favourable currency moves, which added over £7bn.
Crucially, its UK retail business saw a return to positive flows, with £1.2bn of inflows for the full year.
Overall its retail business saw £4.4bn of net inflows across geographies.
Underlying profit was well ahead of the previous year's £153m thanks to the improvement in flows, and allowed the group to hike its dividend by 12%.
Inflows have returned to the business - which has been one of the most acquisitive in recent years, buying up rivals Gartmore and New Star among others - following a turnaround in investment performance.
The group said over three year's investment performance has improved, with 82% of funds now at or exceeding their performance benchmarks.
On a one year basis, the figure is 78%. This is a big improvement on previous numbers. In 2012, only 73% and 69% of its funds were at or exceeding their benchmarks over one and three years respectively.
Outflows from its institutional arm have also stabilised, standing at £1.9bn in 2013.
Andrew Formica, chief executive of Henderson for the past five years, said: "I am very pleased to announce record profits for Henderson in 2013. We have further improved our investment performance and delivered strong returns for our clients across all of our core capabilities.
"Our consistently strong investment performance and market positioning have enabled a turnaround in our retail business and a return to strong positive net inflows, with a retail net inflow of £2.5bn in the fourth quarter, up from £1.3bn in the third quarter."
"Given all we achieved in 2013, continued strong flows so far in 2014 and the way we have positioned ourselves for growth, I am confident about the outlook for our business."
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