Asset manager Henderson posts income boost despite market turmoil

* Full-year net inflows 8.5 bln stg vs 7.1 bln stg in 2014

* Strong demand from U.S (Other OTC: UBGXF - news) . investors for European stocks

* CEO says British EU exit would have minimal impact on company

* Shares (Berlin: DI6.BE - news) down 6.4 pct in fresh broad-market slide (Adds detail from CEO call, outlook, share price reaction, analyst comment)

By Simon Jessop

LONDON, Feb 11 (Reuters) - British asset manager Henderson Group posted forecast-beating net income on Thursday after retail investors flocked to its funds even as markets remained beset by concerns over global growth.

Henderson said that efforts to diversify from its historical focus on European stocks were on track and the performance of its funds was strong, though the market outlook remains challenging.

A fresh market slump on Thursday overshadowed the results, however, and by 0941 GMT its shares were down 6.4 percent, broadly in line with rivals, as indexes across the globe added to already heavy losses since the start of the year.

Organic net asset inflows hit a record 8.5 billion pounds ($12.29 billion) in the year to Dec (Shanghai: 600875.SS - news) . 31, it said in a statement, up from 7.1 billion pounds a year earlier and lifting total assets by 13 percent to 92 billion pounds.

"Strong investment performance led to another year of record-breaking inflows of client money ... This represents net new money growth of 11 percent, well ahead of the industry growth rate of 2 percent," Chief Executive Andrew Formica said.

Demand for its funds helped to lift underlying pretax profit by 17 percent to 220 million pounds, in line with the consensus forecast in a company supplied poll of analysts and allowing a final dividend of 7.2 pence per share that took the total dividend to 10.3 pence.

Shore Capital analyst Paul McGinnis said the results were slightly better than its forecasts. Net (LSE: 0LN0.L - news) income rose 16 percent to 618.9 million pounds, against Shore's forecast of 606.6 million pounds and a consensus estimate of 607.8 million.

Performance fees from Henderson's funds were 98.7 million pounds, significantly higher than consensus expectations for a little more than 83 million pounds and also beating Shore Capital (Other OTC: CGHC - news) 's forecast of 89.4 million pounds, helping to underpin McGinnis's "buy" recommendation and 247 pence target for the share price.

CEO Formica told reporters that there had been continued strong demand for Henderson's European equity funds from U.S. mutual fund investors, while demand from Asian clients had been steady.

Among its top-selling retail funds were the Henderson Gartmore Continental European and Henderson Gartmore UK Absolute Return funds.

On Britain's impending vote on retaining European Union membership, Formica said that a vote to leave would have only a "modest" impact on Henderson because many of its funds are domiciled in Luxembourg.

The challenge for asset managers, should Britain leave the 28-member bloc, would be the potential loss of a voice in any negotiations on future regulation, he added. ($1 = 0.6880 pounds) (Editing by Rachel Armstrong and David Goodman)