What’s going on with the Henderson Group’s Share Price?

What happened to the Henderson Group share price?

Shareholders in Henderson Group [ASX:HGG] have endured a rocky road of late. From seeing out the end of May at just under $5.50 a share, the price fell over 18%, hitting a recent low of $4.47 just two weeks later.

Why did Henderson Group Shares do this?

Henderson Group is a UK based international fund manager. It’s listed on both the ASX and London Stock Exchange (LSE), and manages in excess of 90 billion pounds throughout Europe, Asia and the US.

However, it’s all about the Brexit — that is, Britain’s upcoming referendum about whether they want to remain in the European Union (EU). While the ‘remain’ numbers initially looked to have the upper hand, the ‘exit’ camp are making headway, just a week away from the vote.

One of the anticipated side effects of a possible Brexit is a selloff in the pound. And for a business that earns its revenue predominantly in pounds, this could potentially have a big impact on Henderson’s profits.

What now for Henderson Group?

While many suspect the selloff to be overdone, a vote to remain in the EU could help steady the share price. But it’s not just the Brexit that will determine Henderson’s prospects.

There’s also the uncertainty about what the Federal Reserve will do in the US. That is, if Dr. Yellen will push ahead for interest rate increases, or let the status quo remain. That, and the upcoming Presidential election are making it a tough time for all global asset managers, irrespective of which part of the world they’re based.

Matt Hibbard,
Money Morning

Money Morning Australia