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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.’

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Profile: The opportunity set that attracted Brett Williams to wealth management

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