Schroders, Henderson Shrug Off Market Rout to Post Net Inflows

U.K. money managers Schroders Plc and Henderson Group Plc shrugged off June’s market rout to attract billions of pounds of inflows in the first half of 2015, sending assets at or near record highs.

At Schroders, net new money almost doubled to 8.8 billion pounds ($13.7 billion) from a year earlier, boosting assets 14 percent to 309.9 billion pounds, the company said in a statement. Henderson had 5.6 billion pounds of inflows, sending its funds up 10 percent to a record of 82.1 billion pounds, it reported. Shares of both companies climbed in London trading.

“We have had broad demand from institutions and retail investors right across the main asset classes,” Schroders Chief Executive Officer Michael Dobson said in an interview. While the company saw 3.7 billion pounds of net inflows in the second quarter, June was “awful,” he said.

Both Dobson and Henderson CEO Andrew Formica said uncertainty about Greece leaving the euro zone and from the selloff in Chinese equities erased more than 3 billion pounds off each firm’s assets in June. Schroders was also hit by the strength of the pound following the U.K. election, reducing assets by 10.2 billion pounds.

Schroders climbed 1.2 percent to 3,130 pence at 11:40 a.m. in London trading. Henderson rallied 3.2 percent to 273.8 pence as Formica also announced plans to start a 25 million-pound buyback in the second half. Shares of the firms are up 17 percent and 28 percent respectively in 2015.

‘Relatively Positive’

Greece “had an impact on our European client base in June, but July has been a fairly standard month of flows,” Henderson’s Formica said on a conference call. “On the outlook, we remain relatively positive, but we are conscious that lingering investor caution could affect flows across the industry in the third quarter. We haven’t seen any evidence yet.”

Schroders also said July has been “fine.” The company reported Thursday a 24 percent increase in first-half pretax profit to 290.3 million pounds and an interim dividend of 29 pence a share. Profit at Henderson from continuing operations rose 29 percent to 117.4 million pounds as it declared an interim dividend of 3.10 pence.

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