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Henderson’s Retail Clients Boost Net Inflows in Fourth Quarter

Henderson Group Plc (HGG), a U.K. money manager, posted 2.7 billion pounds ($4.5 billion) of net inflows in the fourth quarter as individual clients’ funds pushed the firm to a positive flow for the year.

Henderson’s retail business returned to growth in 2013, boosted by 2.5 billion pounds of inflows in the final three months of 2013, the London-based company said in a statement. The net flow for the full year was also 2.5 billion pounds, as the fourth-quarter gains offset withdrawals by institutional investors earlier in the year. Assets under management for the full year rose 15 percent to 75.2 billion pounds.

“The year has begun well in terms of flows,” Chief Executive Officer Andrew Formica said on a conference call with journalists. “The retail flow picture in the first quarter has been consistent with the very strong run rate we saw in the fourth quarter. In institutional, we started to see a stabilization.”

Formica has boosted the firm’s retail arm with acquisitions including Gartmore Group Ltd. in 2011 and John Duffield’s New Star Asset Management Group Plc in 2009. Retail funds now account for more than 60 percent of Henderson’s total assets and earnings.

Henderson said it’s planning to make further small acquisitions to double assets under management by 2018 and expand its international unit. It bought Australian commodity firms 90 West Asset Management and H3 Global Advisers in 2013.

The company declared a final dividend of 5.85 pence a share. Profit after tax for the year rose 18 percent to 125.1 million pounds.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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