Henderson Group Plc, a London-based money manager, says first-half profit advanced 30% as it sold more high-fee investments such as hedge funds.
In the year-earlier period, net income rose to 35.4 million pounds ($66.8 million), or 3.1 pence a share, from 27.2 million pounds, or 1.3 pence a share, says the company. Net fee and commission income climbed to 145.1 million pounds from 113.6 million pounds. It took in a net 2 billion pounds of higher-fee funds in the six months.
“Our strategy of focusing on specialist product areas in Henderson Global Investors has delivered good results,” says Chief Executive Officer Roger Yates. “We expect to add further assets in our higher margin product areas of mutual funds, absolute return funds and property, although at a slower rate than in the first half.”
Henderson is following companies like local rival Schroders Plc, which are compensating for declines in institutional sales by concentrating on more profitable clients. The company’s hedge fund assets climbed more than 50 percent in the first half to $3 billion. Hedge funds charge clients 20 percent of any profit they make on top of the 2 percent they levy for just looking after assets.
Shares in Henderson gained 1.2 percent to 82.5 pence yesterday, valuing the company at 953 million pounds. They have advanced 21 percent over the past year compared with an 11 percent gain for the FTSE 100 Index.