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Schroders changes way it reports assets under management

Reporting assets under managementAssets that Schroders controls for clients have risen to nearly £400 billion (€379 billion), driven mainly by acquisitions and currency movements.

The company, which described 2016 as a “good year” in its annual results, saw assets under management (AUM) and assets under administration increase by 27% to £397.1 billion.

‘Assets under administration’ is a new key performance indicator for the firm that was needed because of the acquisition of Benchmark Capital, a technology-led adviser support business based in the UK with £11.1 billion of assets on its books.

Sterling weakness also led to a £42 billion increase in assets.

Profit before tax increased 6% to £644.7 million across Schroders’ wealth management and asset management businesses.

Inflows were £1.1 billion.

Investment performance remained strong, the company said, with 74% of assets outperforming their benchmark or peer group over three years, increasing to 85% over five years.

Peter Harrison, group chief executive, said: “We have made good progress against our strategic objectives and see a number of future growth opportunities. Our diversified business model, a strong financial position and willingness to invest behind the business means we are well placed to take advantage of these opportunities, despite the challenges faced by the industry.”

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