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Henderson Group plc’s profit down: Andrew Formica to replace Roger Yates

By Amarendra Bhushan for CEOWORLD Magazine Updated:August 28, 2008

Fund firm Henderson Group plc, which posted a 16 percent fall in profit on Thursday as assets fell, “I am pleased to announce the Board has chosen as my successor Andrew Formica, currently Head of Equities. Having worked with Andrew for a number of years, I know he is the right person to take Henderson forward. I will be stepping down as Chief Executive effective November this year. I’ve been doing the job nine years. I actually don’t think anyone should do more than 10 years running a business,..” , Chief Executive, Roger Yates said. He will be replaced by Andrew Formica, the head of equities.

“The economic environment in the first six months of 2008 was extremely hostile compared with the same period last year. Weaker markets and subdued demand for investment products, particularly from retail investors, put pressure on our fee income. Nevertheless, earnings per share increased by 12% to 6.7 pence in the first half of 2008 (1H07: 6.0 pence per share) due to the special dividend paid to shareholders in October 2007 and prudent gearing of the balance sheet in May 2007. Assuming markets do not fall materially from here, Henderson is still aiming to meet or beat its pre-tax operating profit from last year of £109.6 million and achieve an expense ratio of below 65% in 2008. This is facilitated by the prompt action we took on costs earlier this year, together with further net fund inflows into our Institutional business and some of our higher margin products.”

Roger Yates profile:

Roger Yates has been CEO since June 2003 and Managing Director of Henderson Global Investors since 1999. He joined AMP Limited (AMP) in October 1999 to lead the integration of Henderson Investors and AMP Asset Management Australia to form Henderson Global Investors.

Roger has 26 years’ experience in the fund management industry as an investment professional and business manager. Previously, he was Chief Investment Officer of Invesco Global and held senior roles for fund management companies LGT and Morgan Grenfell. He was an Executive Director of AMP Limited from December 2002 until the demerger of AMP’s UK and Australian operations in December 2003. Roger is also a Non-Executive and Senior Independent Director of IG Group Holdings plc.

Andrew Formica profile:

Andrew Formica will be new CEO. Andrew Formica is the Head of Equities for Henderson Global Investors with responsibility for overseeing the management of all of Henderson’s equity assets. Andrew and his team are responsible for equity assets covering all regions, as well as specialist SRI, Multi-Manager, Technology and Hedge Funds.

In 2006, Andrew was appointed as joint Managing Director of the newly formed Listed Assets business. In addition to overseeing Henderson’s equity business, Andrew also has responsibility for all the distribution activities of Henderson’s equity and fixed income assets, including product development, sales, marketing and client service.

About Henderson Group plc

Henderson Group plc (“Henderson Group” or “Group”) is the holding company of the investment management group Henderson Global Investors (Henderson). Henderson Group is headquartered in London and since December 2003 has been dual-listed on the London Stock Exchange and Australian Securities Exchange. Henderson Group is a constituent of the FTSE 250 and S&P/ASX200 indices. Established in 1934, Henderson is a leading independent global asset management business. Henderson provides its institutional, retail and high net-worth clients with access to skilled investment professionals representing a broad range of asset classes, including equities, fixed income, property and private equity. Henderson is one of Europe’s largest investment managers, with £52.6 billion of AUM (as at 30 June 2008) and employs around 970 people worldwide.

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