Schroders has defied an industry trend of investors pulling funds away from active managers by reporting net inflows for 2017 of £9.6 billion (€10.8 billion).
The full-year accounts for the London-based listed fund house, published today, showed that, compared with 2016, its total assets under management rose 13% to £447 billion while pre-tax profits rose a forecast-beating 23% to £760 million.
The growth fuelled a full-year dividend increase, compared with 2016, of 22% to 113 pence per share, ahead of analyst expectations.
Schroders’ inflows compare with massive outflows for 2017 posted by other active managers such as the recently-merged Standard Life Aberdeen group, which lost £31 billion last year – as investors continue to pile money into increasingly popular passively-managed index-tracking funds.
Schroders chief executive Peter Harrison said: “There are headwinds facing the industry but we continue to believe that there remain opportunities for growth.
“Our diversified business model, ongoing focus on costs, strong financial position and willingness to invest mean that we continue to be well placed.”
The results for 2017 are a vindication of some of the changes and acquisitions implemented since Harrison took over as chief executive in March 2016.
One of Harrison’s aims has been to expand the product range in the areas of alternative and private assets.
This led last year to Schroders acquiring the Swiss private equity company Adveq Holding, adding to Schroders’ capabilities in insurance securities, infrastructure debt and asset-backed securities in the US.
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