Henderson to Review 2016 Strategy Should Market Turmoil Persist

  • U.K. asset manager reports record net inflows and assets
  • CEO says volatility may throw up acquisition opportunities

Henderson Group Plc Chief Executive Officer Andrew Formica said the U.K. asset manager may be forced to review its investment strategy in 2016 should market turmoil persist.

The London-based firm, which reported 1.6 billion pounds ($2.3 billion) of net inflows in the three months through December on Thursday, said market conditions and investor demand has changed markedly from November, when the budget was set.

“We expect markets to remain difficult,” Formica said on a conference call Thursday. “We are still happy with our short-term plans, but with lower markets and client interest, we might have to revisit them. It might be prudent to hold back discretionary spending but we are not planning to do anything radical.”

Global equities are on the brink of a bear market, having lost about $7.7 trillion in value in 2016 amid tumbling commodity prices and global growth concerns. Henderson’s shares, which were down 7.4 percent to 228.3 pence at 9:14 a.m. in London, have tumbled 26 percent this year.

Even so, net inflows and a 3.6 billion-pound boost from markets and foreign exchange in the fourth quarter helped Henderson to report a record 92 billion pounds of assets under management at the end of December, according to a statement. Formica said the firm had seen strong inflows out of U.S. assets into European funds, which he expects to continue into 2016.

The CEO, who has been expanding in Australia after buying three business in 2015, said while acquisitions were not the focus of the firm, the continued market volatility could throw up other opportunities for deals in 2016.

Before it's here, it's on the Bloomberg Terminal.