Henderson Global Investors has blamed third quarter £1bn net outflows from its retail business on investors’ reaction to the vote to leave the European Union
The fund house reported assets under management at 30 September up 6 per cent to £100.9bn, compared to £95bn three months earlier.
It attributed the increase to positive markets and foreign exchange gains caused by sterling weakness.
But while total AUM increased, money flowed out of its retail business during the period.
Retail net flows were £1bn negative, with over 70 per cent of the outflow occurring in July in the immediate aftermath of the UK referendum, according to the company.
Despite a stronger economic backdrop than many expected, retail client sentiment remains cautious, it stated.
Demand for Henderson UK Absolute Return and Henderson Strategic Bond were offset by a rotation away from European equities, according to the company.
Henderson was among the fund houses that suspended its flagship property fund in the wake of the Brexit vote, as jittery investors sought to sell out of the sector. It has since reopened the fund.
On long-term investment performance 77 per cent of Henderson funds outperformed over three years, according to the trading update, on a par with June 2016 performance. Over one year, 54 per cent of funds outperformed, slightly down on June 2016 at 55 per cent.
The company this month announced its acquisition of Janus Capital in a deal that will create a new firm valued at £4.7bn.
Andrew Formica, Chief Executive of Henderson, said: “This quarter’s retail outflows were concentrated in the period immediately after the UK Referendum, with the rotation out of European assets balanced to some extent by continued demand for absolute return and income generating strategies.
“Our institutional business continues to see steady growth, and the pipeline of mandates due to fund in the fourth quarter is strong.
“We are very pleased with the supportive response we received from clients, employees and shareholders to the announcement of our merger with Janus Capital Group.
“Over the next few months, we will continue to serve our clients with our customary dedication, and use the time well to prepare for the launch of Janus Henderson Global Investors.”