Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Henderson overcomes RDR income fall with performance fee gains

Henderson overcomes RDR income fall with performance fee gains

Increased fund flows to higher-margin products and solid performance helped Henderson overcome a 10% fall in transaction fees following RDR to deliver a record year of profits.

The company reported £190 million in profit before tax for 2013, up from £153 million in the same period as the year before, with operating margin actually rising from 34.1% to 35.7%. At 8.10 Henderson was up 2.1% at 248p.

That was despite a fall in transaction fees from £39.2 million to £34.9 million, with the company benefitting from performance fees up more than three-fold from £30.4 million to £94.5 million and total management fee income rising from £301.9 million to £331.9 million.  

‘We have further improved our investment performance and delivered strong returns for our clients across all of our core capabilities,’ said Henderson chief executive Andrew Formica (pictured).

‘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 £2.5 billion in the fourth quarter, up from £1.3 billion in the third quarter.

‘The financial strength of our business also continued to improve, allowing us to increase the total dividend by 12% over the prior year.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter