Schroders has reported a 14 per cent increase in its total assets under management to £300bn in 2014, driven by net inflows of £24.3bn in its asset management arm.
Approximately £6.7bn of this came from intermediary business, as the company noted “income products continued to be an important theme behind investor demand”. Assets under management in the intermediary business reached £97.8bn in the year, bringing the total in the asset management arm to £268.9bn. It added the intermediary business had particularly seen high levels of demand in continental Europe and Asia Pacific.
The annual results statement noted inflows in the asset management business were driven primarily by £16.9bn of net inflows into its multi-asset range, while £4.7bn went into fixed income and £4.5bn into equities. It noted, however that net outflows from commodities stemmed from the “challenging environment in this asset class”.
The wealth management arm saw net revenue increase 42 per cent in the year to £213.5m as it benefited from “a full year of contribution from Cazenove Capital”, up from £150m the previous year. In addition the division recorded net inflows of £500m in the period bringing its total assets to £31.1bn
Meanwhile the firm’s overall net profit increased from £352.7m in 2013 to £413.2m, while net revenues rose £123.6m to £1.53bn in 2014. As a result the board has recommended a final dividend of 54p per share bringing the total dividend for the year to 78p per share an increase of 34 per cent.
Michael Dobson, chief executive of Schroders, added: “2014 was a record year for Schroders. We believe our focus on building a diversified business across a broad range of investment strategies will continue to deliver value for clients and shareholders over the long term.”
