| Item | AUM (1 Jan 2016) £m | Net flows £m | Market/Foreign exchange movements £m | AUM (31 Dec 2016) £m | Difference % |
|---|---|---|---|---|---|
| Equities | 60,891 | -3,003 | 9,672 | 67,560 | 11 |
| Fixed income | 26,841 | -126 | 3,370 | 30,085 | 12 |
| Property | 4,171 | -859 | -74 | 3,238 | -22 |
| Private equity | 82 | -21 | 7 | 68 | -17 |
| Total group | 91,985 | -4,009 | 12,975 | 100,951 | 10 |
Henderson Global Investors reported £859m in real estate outflows in 2016 as total property assets under management fell by 22% to £3.2bn – the biggest fall in any asset class.
Property was Henderson’s only asset class that experienced both net outflows and falls in market value and foreign exchange movements.
Henderson’s UK Property PAIF suspended trading on 5 July after investors scrambled for redemptions in the aftermath of the EU referendum. It re-opened on 14 October after stabilising its cash holdings.
The company’s 2016 annual report said it had bolstered its liquidity ahead of the referendum, but the level of outflows was higher than expected.
It was one of seven open-ended retail funds to temporarily close in July.
In contrast to its property assets, Henderson’s total AUM grew by 10% from £92bn to £101bn, driven largely by positive market and foreign exchange movements.
While equities had greater net outflows than property, at £3bn in 2016, strong market movements ultimately boosted its AUM 11% to £68bn.
The report also said the merger between Henderson and US fund manager Janus Capital Group, which was announced last October, is on track to be completed by May.
According to the report, Henderson delivered 5% net new money growth over the three years to 31 December 2016, which it said was a positive result “in light of muted industry growth”.
Andrew Formica, chief executive of Henderson Group, said: “Henderson has delivered resilient financial performance in a year of extraordinary turbulence in politics and financial markets.
“Over the past three years that we have had assets under management and management fees at record levels, which facilitated the proposed merger with Janus Capital Group.”
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