Schroders hit by outflows as market fears stall intermediary business

Added 28th July 2016

Schroders registered headline pre-tax profits of £282.3m ($371.3m, €335m) for the first half of the year, despite a collapse in inflows to £700m compared to £8.8bn a year earlier.

Schroders hit by outflows as market fears stall intermediary business

The asset manager blamed volatile markets as weighing upon investor sentiment in the intermediary channel, particularly in the UK and Asia, with outflows in its retail business of £3.3bn and assets at £106.4bn at the end of June.

However, this was offset by £4.4bn of inflows from institutional clients, with particular demand for its multi-asset and fixed income strategies.

Assets in this stream totalled £203.6bn at the end of June.

New business declines

The total of net new business in asset management was £1.1bn for the half, down from £8.4bn a year earlier.

Group assets under management still came in at £343.8bn, and improvement over the £309.9bn in June 2015.

Understandably, pre-tax profits for the asset management fell from £265m to £249m, though its wealth management business climbed to £28.4m.

Peter Harrison, group chief executive, said: “There was heightened market volatility throughout the period, particularly towards the end of June, following the result of the referendum on the UK’s membership of the European Union.

“We expect the current market environment to persist and this may have an impact on investor demand.

“Our diversified business model continues to perform well and we are well placed to create value for our clients and our shareholders over the long term.”

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Gary Shepherd

Editor

Portfolio Adviser

Gary joined Last Word Media in 2009, becoming editor of Portfolio Adviser a year later. Previously, he worked at Incisive Media with roles across its Professional Adviser, Investment Week, Bloomberg Money and Mortgage Solutions titles. Gary has been shortlisted for various awards, winning Headline Money Investment Writer of the Year in 2010.

Features

US equities: If you can’t beat them, join them

US equities: If you can’t beat them, join them...

European investors have been dismissing US equities as too expensive for a couple of years. But as the S&P 500 continues to outperform other equity markets, appetite for the asset class is again on the...

Directories

Ashburton International
Ashburton International

Ashburton Investments is a new generation investment...

Tweets

Events

Future Advisory Forum Hong Kong 2016
Future Advisory Forum Hong Kong 2016

Tuesday 4th October 2016

Hong Kong

Future Advisory Forum Singapore 2016
Future Advisory Forum Singapore 2016

Thursday 6th October 2016

Singapore

Offshore Bond Workshop Manchester 2016
Offshore Bond Workshop Manchester 2016

12th October 2016
The Midland, Manchester

Future Advisory Forum Cape Town 2016
Future Advisory Forum Cape Town 2016

Tuesday 18th October
The Vineyard, Cape Town

Investment Strategy

Sponsored Content

OTHER STORIES FROM LAST WORD...