UPDATE 1-Henderson's profit down, Formica named as new CEO
(adds detail, CEO comments)
LONDON, August 28 (Reuters) - Fund firm Henderson Group HGI.L, which posted a 16 percent fall in profit on Thursday as assets fell, said Chief Executive Roger Yates is to stand down and said it plans to cut its tax rate by relocating to Ireland.
The firm said Yates, who has focused the firm on higher-margin products such as hedge funds, property and mutual funds in recent years, will stand down in November to take a year-long career break.
He will be replaced by Andrew Formica, the head of equities. "I've been doing the job nine years. I actually don't think anyone should do more than 10 years running a business," said Yates on a call to journalists.
At 0715 GMT Henderson shares were 2.1 percent lower at 118.75 pence.
"We are ... surprised to see the CEO who we regard highly stepping down later this year. We suspect there may be some disappointment in the market," said Altium Securities analyst Catherine Heath in a note.
The firm also confirmed it plans to change its corporate structure to form an Irish-based holding company, which would lead to a tax rate of around 20 percent from 2009.
First-half pretax profit before non-recurring items fell to 50.8 million pounds ($93.38 million) from 60.5 million pounds in the same period of 2007, partly due to an interest charge after it took on debt to pay a special dividend last year.
Assets under management fell to 52.6 billion pounds from 59.2 billion pounds at the end of December.
The group saw 4.8 billion pounds in assets withdrawn by major client Pearl while market falls and exchange rate movements knocked 3.1 billion pounds off assets under management, although it did see 1.3 billion pounds in net fund inflows. (Editing by Richard Hubbard)
