Schroders has seen its total assets under management fall £5.2bn in the nine months to September 30 2015 from £300bn to £294.8bn, although it recorded a 6.7 per cent increase year-on-year from £276.2bn at the end of September 2014.
In its interim management statement for the nine months to September 30 the firm recorded net inflows of £8.1bn into its asset management arm, of which £4.6bn flowed into its intermediary business. A further £3.5bn was recorded in net institutional inflows bringing the total assets under management in the division to £263.9bn.
However, negative investment returns of £13.1bn in the nine months meant total assets in the asset management division declined by £5bn in the period.
The bulk of the decline seems to have happened in the third quarter as the asset management division saw total assets slip from £277.9bn at June 30 2015 to £263.9bn three months later, driven by negative investment returns of £13.7bn. Although, on a year-on-year basis total assets in the division increased by £18.2bn.
Meanwhile Schroders’ wealth management business recorded net revenue of £157m for the first nine months of the year, down from £162m in the same period in 2014. But pre-tax profit in the division increased to £48m, compared with £33.6m the previous year, while net inflows of £200m pushed assets under management to £30.9bn.
Chief executive Michael Dobson noted: “In the first nine months of the year profit before tax increased to £438.9m and we generated £8.3bn of net new business. These results reflect the resilience of our diversified business at a time of heightened market volatility.”
