Is the party over for the Henderson Group plc share price?

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UK-based global funds management business Henderson Group plc’s (ASX: HGG) share price has slumped 8% on Friday morning after the group released full year results for the 12 months ending December 31.

Having previously been spun-out of AMP Limited (ASX: AMP), Henderson is a stock held by a broad range of Australian investors.

Here are the key numbers from the results release…

  • Net fee income surged 16% to £602 million thanks to a 16% increase in management fees and a 19% increase in performance fees
  • Total assets under management (AUM) grew 13% to £92 billion
  • Underlying profit before tax increased 17% to £220 million
  • Underlying earnings per share also expanded by 17% to £0.172 per share


A final unfranked dividend of £0.072 has been declared with Henderson’s shares set to trade ex-dividend on May 5 and shareholders can expect payment on May 27. For the year, total dividends paid or declared totalled £0.103.

Henderson has a strong capital position which has allowed the board to implement other shareholder friendly capital management initiatives on top of dividends. The company has flagged that a further share buyback is anticipated in the second half of 2016.

Impressive Track Record

With the group’s AUM spread across European equities, global equities, global fixed income, multi-asset classes and alternatives, Henderson offers a wide range of investment options to clients. Importantly, 81% of Henderson’s funds have outperformed over the past three years.

Long-term returns have also been pleasing with a range of Henderson’s funds producing relative outperformance since inception.


Turing to the outlook for 2016 and management noted that it has been a challenging start to the year with numerous areas of economic, geopolitical and market risks. Year to date Henderson has experienced some outflow of funds including £500 million from institutional clients.

After being a top performing stock in 2015 with the share price rising by around 54%, the shares have experienced a dramatic reversal since the start of 2016, with the stock slumping 28% inclusive of today’s falls.

Given the leverage fund managers have to the rise and fall in equity markets it’s unlikely that the long-term party is over for Henderson but the music may have been turned down for the time being.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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