Henderson leaps 80% as it urges investors to sit tight amid buffeting

Don't panic, was the message from fund manager Henderson today after weeks of volatility across the world's financial markets.

"This is not a time to sell," said chief executive Andrew Formica, whose firm manages £74.4 billion, of which almost half is for private investors.

"If people are prepared to buy, if they have spare cash, now is a time to buy. People investing for the long-term should certainly see this as a buying opportunity.

"This is not like 2008 all over again. The banks are not facing off against each other and there is no banking crisis. At the same time we don't expect a sharp rebound in markets. Investors should be selective and perhaps a little bit more adventurous. That means high-yielding equities and corporate bonds rather than sovereign debt."

Henderson saw £475 million of new money coming into its UK retail funds in the first half, its highest ever level. That follows its £107 million takeover of New Star in 2010 and Gartmore for £533 million this year.

Formica said punters had bought New Star's bond funds and technology-based share funds alongside Gartmore's absolute return fund.

He said: "Looking at the recent turmoil in the markets we are managing the business on the assumption that conditions remain challenging in the short to medium term." Henderson's profits came at the top end of the range it announced last month, rising by 80% to £86.4 million. Funds under management rose from £56.4 billion a year ago to £74.4 billion at the end of June, which include some £15.5 billion from the Gartmore takeover.

The first-half dividend is being raised by 5% to 1.95p a share.

Broker JPMorgan Cazenove said: "The outlook statement is understandably cautious given the market backdrop, although we expect Henderson's profitability to be underpinned by continued benefits from the Gartmore acquisition (integration is progressing well) and an emphasis on the active management of costs."