Business Description:
Henderson Group (HGG) is an international UK based fund manager listed on the ASX and LSE. HGG provides investment management services throughout Europe, North America and Asia.

Strategy Analysis:
HGG is focused on managing its businesses to maximise total shareholder return. The focus is on active asset management across a range of investment strategies in equities and fixed income, including hedge funds, as well as property and private capital. Capabilities are expected to increase through acquisition and a focus on specialist products and improved flexibility of the business. The principal financial measures of success are trends in margins and profits, rather than growth in assets under management. The geographic focus is on Europe, although there is a presence in other major global financial markets such as North America. In order to expand, there is a specific focus on: delivering improved investment performance; developing a sustainable culture to attract and retain the best people; developing innovative specialist products and rapidly bring them to market; and maintaining highly coordinated marketing, distribution and client-servicing activities across all channels. Henderson Group reported a net loss of GBP13.8m for the half-year ended 30 June 2011. Revenues from ordinary activities were GBP355.1m, up 50.3% from the same period last year. Diluted EPS was 1.4 pence compared to 3.9 pence last year. Net operating cash flow was GBP0.4m compared to GBP31.4m last year. The interim dividend declared was 1.95 pence compared with 1.85 pence last year. Total AUM increased GBP12.8bn (21%) from 31 December 2010. The acquisition of Gartmore added GBP15.7bn at completion, whilst the transfer of the Henderson Liquid Assets Fund to DB Advisors in February 2011 reduced AUM by GBP1.5bn.