Schroders’ first-half profits rise despite modest asset growth

Higher than expected first-half pre-tax profits for Schroders were tempered by modest inflows of investor cash according to figures published today by the London-based asset and wealth manager.

The FTSE 100 group’s pre-tax profits in the six months to June were up 8% to £371.1 million (€418 million) compared with £342.8 million in the first half of 2017.

Meanwhile, assets under management and administration rose to £449.4 billion in the six months to June, up from £447 billion on December 31, 2017.

Retail investors pulled £200 million from funds but this was balanced by £200 million of inflows from institutional investors.

Schroders’ chief executive Peter Harrison said in a statement that the firm had benefited from its increasingly diversified business model.

“Against a challenging backdrop we have delivered robust revenue growth through our strategy of focusing on new markets and by continuing to evolve our products and solutions,” he said.

“We remain confident that we can generate growth through the cycle and that we are well placed to continue to create value for our clients and shareholders over the long term.”

In a client note flagging a ‘buy’ rating Jefferies analyst Phil Dobbin said that Schroders “had a good operating performance, less good net flows and better investment performance than we forecast”.

©2018 funds europe

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