EquitiesApr 28 2016

Schroders retail flows hit by market volatility

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Schroders retail flows hit by market volatility

Schroders recorded net inflows of £2.7bn across its business in the three months to March 31 2016, significantly lower than the £5.1bn recorded in the first quarter of 2015, as intermediary outflows hampered institutional gains.

Its interim management statement showed while institutional inflows reached £4.5bn, this was counteracted by outflows of £1.8bn in the intermediary business, as the group said “volatile markets impacted retail client demand”.

In spite of this overall assets under management increased to £324.9bn from £313.5bn at the end of December 2015, helped by investment returns of £8.3bn, of which £3bn was generated by the intermediary business.

Meanwhile the firm’s wealth management business saw assets increase slightly to £32.9bn from £31.6bn at the end of December, as net flows “were flat in the first quarter”, with the division recording net operating revenue of £51.9m and profit before tax of £13.7m.

Peter Harrison, group chief executive, commented: “In volatile markets, our diversified business model delivered solid results with profit before tax in the first quarter of £137.9m. Our clients invested £2.7bn of net new business as assets under management increased to a record level of £324.9bn.”