Retail investors remain cautious despite a stronger-than-expected economic backdrop, said Henderson Group, which saw a £700 million (€783 million) retail outflow in the wake of the June Brexit vote.
Henderson, which operates Henderson Global Investors, saw total outflows of £1 billion between July and September with 70% of that coming in July after the EU referendum vote, the company said today in its third quarter statement.
Andrew Formica, chief executive, 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.”
Sicavs in Continental Europe and Latin America saw a net outflow of £800 billion as clients reduced their exposure to European assets and held higher proportions of their portfolios in cash.
However, institutional investor flows were a positive £400 million and Formica said the pipeline of mandates for Q4 was strong.
Institutions placed money into global technology, global natural resources, small and mid-cap US equities, and credit. There are also flows in the pipeline for emerging markets equity, global credit, European high yield, Australian fixed income and global “buy and maintain” credit.
Positive market and foreign exchange gains in Q3 saw Henderson’s assets under management increase 6% to £100.9 billion.
The firm said 77% of funds outperformed over three years.
Henderson and Janus Capital Group recently announced a merger.
Formica said he was pleased with the “supportive response” from clients, employees and shareholders.
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