Brexit, Schmexit ... Or Ouch?
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Monday, August 01, 2016

Brexit, Schmexit ... Or Ouch?

One month after the Brexit vote, two publicly-traded British multinational asset managers that also operate in the U.S. are no longer taking a beating from Mister Market. Yet a third such shop has not been so lucky.

Andrew Formica
On June 23, a majority of British voters cast their ballots in favor of leaving the European Union. Within a day, shares in Aberdeen [profile], Henderson [profile], and Schroders [profile] had already fallen 11.38 percent, 19.65 percent, and 11.07 percent, respectively. At the time, Henderson CEO Andrew Formica called the vote "a huge confidence shock".

Last week Aberdeen, Henderson Group, and Schroders all shared their half-year earnings results, their first such big shares since the big vote on June 23.

Aberdeen reported a Q2 2016 AUM rise of nearly three percent to 301.4 billion pounds ($398.8 billion) on June 30, with net outflows being more than overwhelmed by asset appreciation. Part of that boost, Lionel Laurent of Bloomberg notes, comes from the benefits felt in Aberdeen's emerging markets investments from the falling value of the British pound. As of market close on Friday, shares in Aberdeen (LON:ADN) have actually risen 5.29 percent since June 23.

Schroders reported a nearly 10-percent AUM rise in the first half of 2016 to a record 343.8 billion pounds ($454.69 billion) on June 30, with the bulk of the change coming from investment returns but boosted by slight net inflows (mostly institutional flows). As of market close on Friday, shares in Schroders (LON:SDR) are still down slightly, 0.8 percent, since June 23.

Henderson reported a 2.5-percent AUM rise in Q2 2016 to 95 billion pounds ($125.63 billion) on June 30. Net outflows were overwhelmed by market appreciation, and CEO Formica notes that "clients pulled back from investing in European assets and UK property, particularly after the referendum result, but we saw good demand for absolute return and income generating investment styles." As of market close on Friday, shares in Henderson (LON:HGG) are still down 12.76 percent since June 23.

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