HGG.L Regulatory News (HGG)

Henderson Group plc

2013 Interim Results

8 August 2013

Financial highlights

1. The results for 2012 have been restated upon the adoption of the amended standard IAS 19 'Employee Benefits'. See notes 2 and 14 of the Interim Condensed Consolidated Financial Statements for further details.

2. Total fee income less operating expenses divided by total fee income.

3. Based on underlying profit after tax attributable to equity holders of the parent.

4. Based on weighted average number of shares in issue less weighted average number of own shares held during the period.

5. Based on weighted average number of shares in issue less weighted average number of own shares held during the period adjusted for the dilutive potential of share options and unconditional awards.

Commenting on the 2013 interim results Chief Executive, Andrew Formica said:

"I am delighted to be reporting a record set of interim results. The strategic initiatives we have made to reposition the Group are having a positive impact and generating momentum across Henderson in terms of both our client and financial performance. The continued strong investment performance on behalf of our clients has in turn translated to an improvement in retail flows, with approximately £600 million of net retail inflows in the first half. Our strong financial position is enabling us to continue to invest in both our investment and distribution capabilities to further our growth. With these solid foundations in place and our strong cash generation and sound balance sheet, I am confident about the outlook for the Group."

 Henderson Group plc

47 EsplanadeSt HelierJersey JE1 0BDRegistered in Jersey Company No. 101484ABN 67 133 992 766

Key highlights

·; Underlying profit before tax of £101.1m, a half year record.

·; Positive retail net flows of £587m.

·; UK retail net inflows of £154m in second quarter.

·; Strong investment performance over three years; 73% of funds meet or exceed benchmarks.

·; TIAA Henderson Global Real Estate progressing well to complete next year.

·; AUM £67.9bn at 30 June 2013.

·; Diluted underlying EPS increases to 8.0p.

To view the full details of the 2013 Interim Results, paste the following link into your web browser:

http://www.rns-pdf.londonstockexchange.com/rns/2157L_-2013-8-7.pdf

To view the full details of the 2013 Interim Results Presentation, paste the following link into your web browser:

http://www.rns-pdf.londonstockexchange.com/rns/2157L_1-2013-8-7.pdf

Market briefing

Management will present these results on 8 August 2013 at 5.30pm (Sydney time)/8.30am (London time).

Teleconference details

We recommend participants start dialling in 5-10 minutes prior to the start of the presentation. To telephone link-up to the briefing, dial one of the following numbers from 5.20pm (Sydney time)/8.20am (London time):

Webcast details

You can logon to a webcast of the results briefing which will start at 5.30pm (Sydney time)/8.30am (London time). Go to www.henderson.com/group and click on the relevant link on the homepage. An archive of the webcast will be available shortly after the event.

Incorporating the requirements of ASX Appendix 4D

The information contained in this document should be read in conjunction with the Henderson Group plc Annual Report and Accounts for the year ended 31 December 2012 and any public announcements made by Henderson Group plc and its controlled entities (the Group) during the period in accordance with the continuous disclosure obligations arising under the Australian Corporations Act 2001 and the Australian Securities Exchange (ASX) Listing Rules. This report includes the interim information required to be provided to the ASX under Listing Rule 4.2A

Results for Announcement to the Market

The interim results of Henderson Group plc for announcement to the market are as follows:

Dividends

On 7 August 2013, the Board of Directors (the Board) declared an interim dividend in respect of the six months ended 30 June 2013 of 2.15 pence per share (1H12: 2.10 pence per share). Henderson Group plc does not offer a dividend reinvestment plan.

A final dividend of 5.05 pence per share was paid on 31 May 2013 in respect of the year ended 31 December 2012.

Net tangible assets per ordinary share

Net tangible assets are defined by the ASX as being total assets less intangible assets less total liabilities ranking ahead of, or equally with, claims of ordinary shares.

The Interim Condensed Consolidated Financial Statements included within the Interim Report and Accounts have been subject to an independent review by Ernst & Young LLP.

Consolidated Financial Results

1. The results for prior periods have been restated upon the adoption of the amended standard IAS 19 'Employee Benefits'. See notes 2 and 14 of the Interim Condensed Consolidated Financial Statements for further details.

2. Total fee income less operating expenses divided by total fee income.

3. Employee compensation and benefits divided by total income.

4. Net margin calculated on underlying profit before tax.

5. Based on underlying profit after tax attributable to equity holders of the parent.

6. Asset weighted of funds measured over one and three years to 30 June 2013.

Business Review

After a challenging 2012, I am pleased to report a record first half underlying profit before tax of £101.1m, helped by performance fees of £57.5m. With the key objective of the Group to deliver strong investment returns for our clients, I am pleased with the sustained strength of our investment performance. Overall, 70% and 73% of our funds are at or exceeding their benchmark or peers over one year and three years respectively, both an improvement from the first half of last year.

Sustained strong investment performance is a good lead indicator of flows and we are beginning to see this in our business, in particular with an improvement in net retail flows, demonstrated by approximately £600m of net inflows in the first half. Importantly, we saw positive UK retail net flows of approximately £150m in the second quarter, driven by flows into Credit Alpha, European Special Situations and the UK Property Unit Trust along with solid flows into the new joint ventures we established last year with Sesame Bankhall Group and Intrinsic Financial Services Limited. In Europe, our SICAVs, particularly European Corporate Bond, Global Property Equities and Global Technology, generated over £400m of net flows in the first half. Our US Mutual fund range experienced near record highs for both gross and net flows in the first half with approximately £300m net inflows with our Henderson Global Equity Income fund receiving particularly strong support from clients and advisers. The increasing penetration of our global distribution teams is a key strategic objective for the Group and therefore it is pleasing to see net inflows in excess of £100m into our retail funds by our Asian team driven by our Asian Dividend and Global Property Securities funds. Offsetting two Investment Trust departures in the first quarter, the Henderson Value Trust transferred to the Group during the second quarter with approximately £140m of AUM. The positive momentum seen in the second quarter across all retail ranges has continued into the third quarter.

Despite institutional net outflows for the first half, outflows in the second quarter slowed and we are encouraged by a strong positive unfunded pipeline, including credit and secured credit mandates, reflecting our strong fixed income performance over many years. At the end of July, funded mandates matched the outflows we saw in the second quarter.

I am encouraged by investors returning to European equities, one of our core areas of strength, after being out of favour last year. Despite the US Federal Reserve's intention to slow quantitative easing, we have experienced less of the anticipated Great Rotation from bonds to equities. Instead, we experienced more of an "Inner Rotation" as certain clients have started to shift from traditional, and currently low yielding, index managed government and corporate bond funds to more diversified, higher return seeking alternatives. We have seen this with improved flows in to our Total Return Bond and Multi-Asset Credit funds.

I am equally encouraged by the positive net flows into our Absolute Return funds in the first half. We have seen more interest in equity long/short strategies as sentiment and investment performance improved, as well as strong interest in our credit long short fund - Credit Alpha. We also launched a new fund to capitalise on opportunities in the small cap end of the UK market, with the AlphaGen Volantis Catalyst fund launched in April with over US$50m on first closing.

Regarding our Property business, we announced in June the global real estate alliance with TIAA-CREF, a Fortune 100 company and leading financial services provider headquartered in New York, forming a new £13.0bn global real estate joint venture, TIAA Henderson Global Real Estate, of which the Group will retain a 40% stake. The steps to completion are on track and clients have responded positively to the joint venture. As highlighted earlier in the year, we experienced outflows of approximately £300m due to the winding up of a 10‑year old fund, and in the second quarter we saw a client, who worked with us during the financial crisis, realise profits in excess of 50% on their initial investment. These resulted in just under £400m of outflows overall in the first half. These largely one-off reductions in assets should therefore mean that the second half should resume a positive trajectory in terms of new business growth, and we retain a pipeline of approximately £1.0bn of uninvested client commitments.

The Private Equity business remains focused on maximising the value of our existing portfolio companies. Infrastructure is progressing its strategic and business initiatives at John Laing, and our Asian and Fund of Funds businesses continue to perform well.

Our growth initiatives supporting our core strategy have continued to progress during the first half, growing Henderson into a more global business with strengthened investment and distribution capabilities. Adding to the bolt-on acquisitions made last year, we acquired approximately 33% of 90 West Asset Management in April, an Australian-based manager specialising in global natural resources, as part of our strategic growth plans for Australia. Following the hire of the US credit specialist team in the first quarter, we launched our US High Yield Opportunities mutual fund and expect to launch a Global High Yield SICAV fund in the second half of this year.

The Phoenix Group has been a major client since the sale of Pearl in 2005 and operated under a minimum compensation arrangement (MCA) that expires in April 2015. Recognising the strength of the relationship between both organisations, new contractual terms have been agreed which remove the MCA and replaces it with a standard Investment Management Agreement (IMA). The new terms, which apply from 1 January 2013, have been reflected in the first half revenues and the closing run rate management fees on page 8. The new IMA extends the management agreement by a minimum of nine months to the end of 2015, with a rolling two year notice period from 1 January 2014.

Overall, I am optimistic about the business's outlook. We have laid the foundation for growth over the past few years by streamlining and simplifying the business. This has enabled us to focus on our core capabilities in Global and European Equities, Absolute Return, Multi-Asset and Global Fixed Income whilst continuing to deliver strong investment returns and client service. I am pleased with the momentum in the business, the record profits year to date, our strong cash generation and sound balance sheet, all of which allow us to face the future with renewed confidence.

Andrew Formica

Chief Executive

7 August 2013

Financial Review

Financial performance

The Group achieved an underlying profit before tax of £101.1m, an increase compared to 1H12 mainly as a result of increased performance fees being earned. Variable compensation increased compared to 1H12 reflecting the impact of the staff's share of the increased performance fees and an improvement in the performance of the business. The Group maintained its cost control on discretionary spend with non-staff operating costs falling compared to 1H12. The increase in revenues, particularly performance fees, and effective cost control are reflected in an improved operating margin of 38.8% and increased diluted underlying EPS compared to 1H12.

Total income and fee margins

Total income increased to £268.0m, driven principally by an increase in performance fees earned compared to 1H12, particularly in the Offshore Absolute Return and European SICAV fund ranges. Management fees increased to £185.9m helped by the impact of positive markets offsetting the impact of net outflows in FY12. Transaction fees reduced slightly to £20.3m. Finance income reduced to £4.3m as income from a seed investment disposal in 1H12 did not repeat. The increase in performance fees has resulted in an increase in both the net and total fee margins compared to 1H12. The management fee margin reduced slightly to 54 bps mainly due to the mix of flows during FY12 and 1H13.

Total operating expenses

Total operating expenses increased to £161.5m, mainly due to an increase in variable compensation reflecting the staff's share of the increase in performance fees earned and an improvement in the performance of the business. Fixed staff costs decreased to £50.7m reflecting the restructuring exercise commenced at the end of 2012. The level of variable compensation has increased the Group's compensation ratio to 43.6%. Other operating expenses decreased compared to 1H12 as a result of continued cost control and the settlement of certain exposures previously recognised by the Group.

Pension schemes

As part of its arrangement with Pension Insurance Corporation, the trustee of the Gartmore Pension Scheme (GPS) has now commenced winding up GPS. This will remove any residual risk to the Group. The surplus after the buyout is estimated to be £6.8m after tax. In addition, the accounting rules for pensions changed in 2013 and the Group has adopted the changes for 1H13 and therefore restated prior period comparatives.

Tax

The tax charge on underlying profit was £13.1m, resulting in an effective tax rate of 13.0%. The effective tax rate on underlying profit is less than the pro rata UK corporation tax rate of 23.25%, primarily as a result of the difference in tax rates on earnings generated overseas.

Investment performance

Investment performance of the Group's funds has remained strong over one and three years. At an asset class level, 81% and 73% of equity funds and 66% and 81% of fixed income funds were either achieving or beating their benchmark or peers over one and three years respectively. Property performance is updated annually once IPD benchmark data is available and as at 31 December 2012 34% and 61% of funds over one year and three years respectively achieved or beat their benchmark.

AUM and fund flows

Total AUM at 30 June 2013 were £67.9bn, an increase of £2.3bn from 31 December 2012 as shown on page 8. During 1H13, the Group experienced net inflows of £0.6bn in retail but this was offset by £2.0bn of institutional outflows, a large proportion of which was a result of a legacy Gartmore client withdrawing their funds due to historical performance issues. Market and FX movements during the period resulted in an increase of £3.7bn.

Liquidity and capital resources

The Group's business continued to generate positive operating cash flows during the period with net cash flows from operating

activities totalling £58.5m resulting in net unrestricted cash of £16.7m as at 30 June 2013 (£17.9m at 31 December 2012). The regulatory capital surplus of the Group under the Parent Financial Holding Company Test amounted to £1,033m at 30 June 2013 (31 December 2012: £954m).

Dividends

The Board has declared an interim dividend of 2.15 pence per share (1H12: 2.10 pence per share). The interim dividend will be paid on 20 September 2013 to shareholders on the register at 30 August 2013.

Related party transactions

No related party transactions that materially affect the financial position or performance of the Group have taken place during the period, and there have been no changes in the related party transactions described in the last Annual Report and Accounts that could have a material effect on the financial position or performance of the Group in the six months ended 30 June 2013.

Forward-looking statements

This announcement contains forward-looking statements with respect to the financial condition, results and business of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. The Group's actual future results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

Summary of movements in AUM

1. Private Equity funds' AUM is based on 31 March 2013 valuations.

2. Other includes US Mutuals, Investment Trusts and Liquidity funds.

3. Approximately £1.0bn of assets have been reclassified from Equity to Fixed Income as at 1 January 2013 to conform with the Group's ongoing presentation.

4. Of the £12.7bn of Property AUM at 30 June 2013, £1.1bn relates to the Henderson UK Property Unit Trust which will remain with the Group following completion of the transactions with TIAA-CREF announced on 24 June 2013 with the remaining £11.6bn being subject to those transactions.

Risk Management

The key risks within the Group fall into a number of distinct categories and the means adopted to mitigate them are both varied and relevant to the particular risk concerned. Information regarding the key risks and their mitigation is set out in the Group's 2012 Annual Report and Accounts on pages 30 and 31 and the related governance framework is set out on pages 34 to 41. These risks and the Group's response to them have not changed significantly from those described in the Group's 2012 Annual Report and Accounts.

On 24 June 2013, the Group announced that it had entered into an agreement to contribute its European and Asian property business to a new joint venture with TIAA-CREF. In addition, the Group will sell its North American property business to TIAA-CREF. These transactions are expected to be completed in early 2014. An appropriate governance structure has been established with the risks assessed and resources assigned. The existing risk appetite thresholds have not been exceeded, nor are they likely to be.

Directors' Report

The directors of Henderson Group plc (the Directors) present their report for the six months ended 30 June 2013. The Board approved the financial results for the six months ended 30 June 2013 on 7 August 2013.

Directors

The Directors who served during the six months ended 30 June 2013 and up to the date of this report, unless otherwise stated, are shown below:

Rupert Pennant-Rea (Chairman) (resigned 1 May 2013)

Richard Gillingwater (Chairman) (appointed as a Non-Executive Director and Chairman Designate on 6 February 2013 and as Chairman on 1 May 2013)

Andrew Formica (Chief Executive)

Shirley Garrood (Chief Financial Officer) (resigned 26 June 2013)

Roger Thompson (Chief Financial Officer) (appointed 26 June 2013)

Sarah Arkle

Kevin Dolan

Duncan Ferguson

Tim How

Robert Jeens.

Duncan Ferguson will retire on 9 December 2013 after nine years as a Non-Executive Director and a search for his replacement is underway. All other Directors are expected to stand for reappointment at the 2014 Annual General Meeting.

Business review and results

The Group's results for the six months ended 30 June 2013 are shown in the Interim Condensed Consolidated Income Statement on page 13. A review of the six months ended 30 June 2013 and future business developments are covered in the Business and Financial Reviews on pages 6 to 8.

Rounding

In accordance with the Australian Securities and Investments Commission Class Order 98/0100, amounts in the Interim Report and Accounts have been rounded to the nearest £0.1m sterling, unless stated otherwise.

Directors' declaration

In the opinion of the Directors:

·; the Interim Condensed Consolidated Financial Statements set out on pages 13 to 28:

- give a true and fair view (as set out in section 305 of the Australian Corporations Act 2001) of the Group's consolidated financial position as at 30 June 2013 and of its performance for the six months ended on that date; and

- have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed; and

·; there are reasonable grounds to believe that the Group will be able to pay its debts as and when they fall due.

Signed in accordance with a resolution of the Board:

Andrew Formica Roger Thompson

Chief Executive Chief Financial Officer

7 August 2013 7 August 2013

Statement of Directors' Responsibilities

The Directors confirm that to the best of their knowledge, in relation to the Interim Condensed Consolidated Financial Statements, that:

·; the Interim Condensed Consolidated Financial Statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union;

·; the Interim Report and Accounts include a fair review of the information required by Disclosure and Transparency Rule 4.2.7R, being an indication of important events that have occurred during the first six months of the current financial year, and their impact on the Interim Condensed Consolidated Financial Statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·; the Interim Report and Accounts include a fair review of the information required by Disclosure and Transparency Rule 4.2.8R, being disclosure of related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or the performance of the Group during that period and of any changes in the related party transactions described in the last annual report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year.

Signed in accordance with a resolution of the Board:

Andrew Formica Roger Thompson

Chief Executive Chief Financial Officer

7 August 2013 7 August 2013

Independent Review Report

to the members of Henderson Group plc

Introduction

We have been engaged by Henderson Group plc (the Company) to review the Interim Condensed Consolidated Financial Statements in the Interim Report and Accounts for the six months ended 30 June 2013 which comprise the Interim Condensed Consolidated Income Statement, Interim Condensed Consolidated Statement of Comprehensive Income, Interim Condensed Consolidated Statement of Financial Position, Interim Condensed Consolidated Statement of Changes in Equity, Interim Condensed Consolidated Statement of Cash Flows and the notes to the Interim Condensed Consolidated Financial Statements being notes 1 to 15. We have read the other information contained in the Interim Report and Accounts and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Interim Condensed Consolidated Financial Statements.

This report is made solely to the Company in accordance with guidance contained in the International Standard on Review Engagements 2410 (UK and Ireland) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The Interim Report and Accounts are the responsibility of, and have been approved by, the Directors. The Directors are responsible for preparing the Interim Report and Accounts in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The Interim Condensed Consolidated Financial Statements included in the Interim Report and Accounts have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the Interim Condensed Consolidated Financial Statements in the Interim Report and Accounts based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

On the basis of our review, nothing has come to our attention that causes us to believe that the Interim Condensed Consolidated Financial Statements in the Interim Report and Accounts for the six months ended 30 June 2013 are not prepared, in all material respects, in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Ernst & Young LLP

London

7 August 2013

Interim Condensed Consolidated Income Statement

For the six months ended 30 June 2013

Interim Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2013

Interim Condensed Consolidated Statement of Financial Position

As at 30 June 2013

Approved by the Board on 7 August 2013.

Interim Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2013

Interim Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2013

Notes to the Interim Condensed Consolidated Financial Statements

1 Corporate information

Henderson Group plc (the Company) is a public limited company incorporated in Jersey and tax resident in the United Kingdom. The Company's ordinary shares are traded on the LSE and CHESS Depositary Interests are traded on the ASX.

The Interim Condensed Consolidated Financial Statements of the Group for the six months ended 30 June 2013 were authorised for issue by the Board on 7 August 2013.

The results for the six months ended 30 June 2013 and the six months ended 30 June 2012 are unaudited but have been reviewed by the auditors, Ernst & Young LLP. The condensed comparative figures for the full year ended 31 December 2012 have been taken from the Henderson Group plc Annual Report and Accounts subject to the restatements as set out in notes 2 and 14. The auditors have reported on the 2012 financial statements in the Annual Report and Accounts and their report was unqualified. Henderson Group plc's 2012 Annual Report and Accounts have been filed with the Jersey Financial Services Commission Companies Registry. The Interim Condensed Consolidated Financial Statements do not constitute statutory accounts.

2 Basis of preparation and significant accounting policies

Basis of preparation

The Interim Condensed Consolidated Financial Statements for the six months ended 30 June 2013 have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union.

The Interim Condensed Consolidated Financial Statements do not include all the information and disclosures required in the annual financial statements, and therefore should be read in conjunction with Henderson Group plc's 2012 Annual Report and Accounts, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

The Directors are satisfied that the Group has and will maintain sufficient financial resources to enable it to continue operating in the foreseeable future and, therefore, they continue to adopt the going concern basis in preparing the Interim Report and Accounts.

Significant accounting policies

The accounting policies adopted in the preparation of the Interim Condensed Consolidated Financial Statements are consistent with those followed in the preparation of Henderson Group plc's 2012 Annual Report and Accounts with the following exceptions caused by the adoption of the following standards on 1 January 2013:

·; IFRS 13 'Fair Value Measurement' (IFRS 13); and

·; IAS 19 'Employee Benefits' amended (IAS 19a).

IFRS 13 has been applied prospectively and has only resulted in amendments to disclosures.

IAS 19a has been applied retrospectively in accordance with IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' and has led to the restatement of prior period amounts. The significant impact of adopting IAS 19a on the Group's financial statements is the replacement of interest costs on scheme liabilities and the expected return on scheme assets with a net interest cost that is calculated by applying a discount rate to the net defined benefit asset or liability. The impact of the restatement is set out in note 14.

3 Segmental information

Group fee income and non-current assets

Henderson is a global asset manager, operating throughout Europe, North America and Asia. The Group manages a broad range of actively managed investment products for institutional and retail investors, across multiple asset classes, including equities, fixed income, property and private equity. Management operates across product lines, distribution channels and geographic regions. All investment product types are sold in most, if not all, of these regions, and are managed in various locations.

Information is reported to the chief operating decision maker, the Board, on an aggregated basis. Strategic and financial management decisions are determined centrally by the Board and, on this basis, the Group is a single segment investment management business.

Entity-wide disclosures

Revenues by product

Geographic information

Revenues from clients

The geographical revenue information is split according to the country in which the revenue is generated, not necessarily where the client is based.

The Group does not have a single client which accounts for more than 10% of revenues.

Non-current assets

Non-current assets for this purpose consist of intangible assets, investments accounted for using the equity method and property and equipment.

4 Seasonality of operations

The Group's revenue streams are not generally seasonal in nature, with management fees and elements of finance income accruing evenly during the year. Transaction fees accrue mainly throughout the year. However, an element of these fees occur on an ad hoc basis. Performance fees are recognised when the prescribed performance hurdles have been achieved and it is probable that the fee will crystallise as a result. The hurdles coincide with the underlying fund year ends. The year ends of offshore Absolute Return funds and SICAVs are biased to the first half of the year. In addition, given the uncertain nature of performance fees, these can fluctuate from period to period.

5 Tax

Tax recognised in the Interim Condensed Consolidated Income Statement

Tax recognised in the Interim Condensed Consolidated Statement of Comprehensive Income

Reconciliation of profit before tax to tax charge/(credit)

The tax charge/(credit) for the period is reconciled to the profit before tax in the Interim Condensed Consolidated Income Statement as follows:

6 Dividends

An interim dividend of £24.0m (2.15 pence per share) was declared by the Board on 7 August 2013. This will be payable on 20 September 2013 to shareholders on the register at 30 August 2013.

The difference between the proposed final dividends as reported in the 2012 Annual Report and Accounts (£56.3m) and the dividends paid out during the period (£55.1m), represents the dividends waived by employee benefit trusts on shares held in the trust on behalf of Group employees partly offset by the dividends payable on the new shares issued between 31 December 2012 and the dividend record date. The amount waived in respect of the interim dividend declared for 2013 will be established by the trustees of the employee benefit trusts on 30 August 2013, being the dividend record date.

7 Earnings per share

Weighted average number of shares

The weighted average number of shares for the purpose of calculating earnings per share is as follows: