Henderson assets under management fall 3 percent

LONDON (Reuters) - Fund firm Henderson Group HGI.L said on Thursday assets under management fell to 51.2 billion pounds in the three months to September, down 3 percent from the previous quarter.

Net inflows during the period were 800 million pounds but the firm was hit by declining markets and foreign exchange rate movements which reduced assets by 2.2 billion pounds.

"Worsening market conditions have resulted in a recent pick-up in client redemptions in some of our higher margin businesses," Chief executive Andrew Formica said.

"We are managing the business on the assumption that market conditions remain difficult in the short to medium term."

The firm said that redemption requests from hedge fund clients have increased in recent months.

Henderson, which had earlier agreed a lock-up and reduced management fee for its European Absolute Return Fund, expects the value of the fund to remain at 260 million pounds until the end of the year and then shrink to about 36 million pounds.

It has also recently acquired 30 percent in Australian alternatives asset manager Attunga Capital Pty Ltd. Attunga has assets under management of around A$150 million.

(Reporting by James Molony; Editing by Richard Hubbard)