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Annual report

STRENGTH IN OUR STRATEGY

STRENGTH IN OUR STRATEGY

In this year’s Annual Report, we highlight the characteristics we need to exhibit to deliver our strategy:

  • Focus and energy, to drive the execution of our ambitious plan
  • Awareness and agility, to keep moving forward and adapt when necessary to changes in market conditions and regulatory environments
  • Discipline and responsibility, to fulfil our governance obligations
  • Expertise and awareness, to be successful in active investment management
  • Local knowledge and teamwork, to deliver for our clients, worldwide


PERFORMANCE HIGHLIGHTS

Investment
outperformance


81%

of funds over three years


Net new money
growth1


11%


Assets under management2


£92.0bn



1 As a percentage of opening AUM from continuing operations (excluding TH Real Estate).

2 Assets under management from continuing operations.

CHAIRMAN'S STATEMENT

It is of fundamental importance that everyone at Henderson respects the fact that we are trusted with our clients’ money, on which their future wellbeing may depend."

Richard Gillingwater, Chairman

CHIEF EXECUTIVE'S STATEMENT

2015 has been another strong year for Henderson. We have executed well on our strategy to grow and globalise the business."

Andrew Formica, Chief Executive

Our strategy

GROWTH AND GLOBALISATION

Our strategy focuses on achieving growth and globalisation by delivering excellent performance and service to an increasingly diverse client base.

We aim to deliver a sustained period of organic growth, attracting net new money from clients at a higher rate than that of our industry peers. We will supplement this organic growth with value accretive acquisitions. By 2018, we will have established a truly global footprint, infrastructure and mind set. Our success in delivering our strategy depends on strong execution of our business plans but also on being agile enough to assess changes in market conditions and respond where appropriate to opportunities and threats.


DELIVER first-class investment performance and service to our clients

DELIVER first-class investment performance and service to our clients

  • Investment performance remained consistently strong, with 81% of funds outperforming on a three year basis.
  • Continued embedding the fair treatment of customers into the firm’s business model, including:

    • Appointment of Customer Champions in the US and Asia.
    • Global roll out of annual Customer Interests Staff Survey.
    • Relaunch of mandatory Customer Interests training for a global audience.

EXPAND our global investment offering to meet the current and future needs of our clients

EXPAND our global investment offering to meet the current and future needs of our clients

  • The core capabilities we require to meet our 2018 objectives are in place, but we will continue to evaluate new opportunities to deliver value to our clients.
  • Organic build of an Emerging Markets Equities team to add to the 2014 build out of Emerging Markets Debt.
  • New offerings at or close to their three year track records in global equities, high yield credit, absolute return bond and multi-asset.

DIVERSIFY our business

DIVERSIFY our business

  • Good progress in the US, with 27% of Henderson’s total net flows in 2015 into the US Mutuals range and a significant recovery in investment performance at Henderson Geneva Capital Management since the acquisition closed.
  • Acquisitions of Perennial Fixed Interest, Perennial Growth Management and 90 West in Australia to expand investment management capabilities and client reach.

OPERATE efficiently

OPERATE efficiently

  • Scalable operating platform in place to facilitate growth and globalisation.
  • Significant investment in regulatory expertise to manage constant change.
  • Disciplined management of financial resources to generate a regulatory capital surplus and facilitate return of capital to shareholders.