Andrew Formica, Henderson's chief executive said that "Henderson remained alert to acquisition opportunities but that they will be choosy." Last year Henderson snapped up its ailing rival New Star Asset Management.

The focus is likely to be on expanding outside the UK, Mr Formica added as he outlined a 20 per cent fall in underlying profits in the year to December.

Mr Formica said the first half of 2009 was markedly different from the second, when revenues picked up. Operating margins fell one percentage point to 27.6 per cent but Mr Formica said this masked improvement in profitability from the middle of the year.

Assets under management rose 17 per cent to £58.1bn despite net outflows of £4.6bn. Inflows into higher-margin funds rose to £700m by the end of the year offsetting £4.2bn in withdrawals by Pearl, the insurer.