London-based Henderson Group looks to grow assets to £150B by 2018

By Nicel Jane Avellana

Feb 26, 2014 09:16 AM EST

Henderson Group intends to grow its assets two times to £150 billion or $250 billion in four years, with its eyes set on a US deal that would allow the UK-based fund manager to meet "a big gap" in its business operations, Reuters reported.

In a conference call, Henderson Group Chief Executive Officer Andrew Formica told reporters that his approach was to bring the firm out of its main market in the UK. Making small purchases in Australia and Asia could also be part of his strategy, the report said.

Formica said, "By 2018 we expect to have a truly global footprint, infrastructure and mindset, to have delivered in excess of 5 percent in net new money each year. With reasonable market appreciation and some bolt-on acquisitions, our ambition is to double our AUM (assets under management) for the group."

Last year, Henderson Group reported a 14% rise in the assets it manages for its clients. According to Formica, a majority of the increase is due to the focus they have placed on retail clients who were putting in more money. The group said that by the end of 2013, its total assets under management were pegged at £75.2 billion, an increase from the £65.6 billion posted the year before. The increase was also fueled by the net inflow from retail clients amounting to £2.5 billion in the last quarter of 2013, the report said.

Formica revealed that inflows have continued in the current year. As markets and economies get back on their feet after the economic crisis, investors have become more positive. Property and equities are in high demand, especially in Europe, where the markets have made a credible rebound since the sovereign debt plagued the Euro Zone, the report said.

Henderson Group said its underlying profit before tax last year was close to 25% higher at £190.1 million than what the company earned the year before, the report said. 

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