Bloomberg – Henderson Group Plc, a London-based money manager, said first-half profit advanced 30 percent as it sold more high-fee investments such as hedge funds. The stock jumped 5.8 percent.
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, in the year-earlier period, the company today said in statement. Net fee and commission income climbed to 145.1 million pounds from 113.6 million pounds. Henderson took in a net 2 billion pounds of higher-fee funds in the six month period, the company said.
“They are delivering on their strategy,” said Geoff Miller, an analyst at Bridgewell Securities in London who has a “neutral” rating on the stock. “The performance fees were higher than expected,” and Henderson had better profit margins and a lower tax charge than expected, he said.
Henderson is following companies such as local rival Schroders Plc by concentrating on more profitable clients as institutional sales decline. The company’s hedge fund assets rose more than 50 percent in the first half to $3 billion.
“The strategy we have had had in place for some time of focusing on high-margin specialist products is really starting to bear fruit,” Chief Executive Officer Roger Yates said on a conference call with reporters.
