Schroders sees assets climb 27%

Schroders sees assets climb 27%

Schroders has seen a surge in assets under management, as net flows proved resilient after the EU referendum. 

Assets under management increased by more than a quarter for the nine months ending 30 September, reaching £375bn from the £295bn posted during the same period last year.

Despite this, the group saw its pre-tax profits remain relatively flat throughout 2016, hitting £436m, which is down slightly from last year’s figure of £439m.

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Peter Harrison, group chief executive, said: “We continued to deliver solid results in the first nine months of the year.”  

The asset management business suffered net outflows of £2.2bn in its intermediary division, but its institutional arm enjoyed inflows amounting to £5.4bn.

This brought total net inflows for the nine months to £3.2bn.

Despite the intermediary section of the business reporting outflows for the nine months, it posted inflows of £1.1bn between July and September.

This is a marked turnaround after its intermediary arm saw outflows of £1.5bn in the previous quarter.

Mr Harrison said the diversified business model generated £2.7bn of net new business, adding: “We have made progress against our strategic objectives, particularly in North America.”

Peter Lenardos, analyst at RBC Capital Markets, said: “Schroders continues to deliver despite the backdrop of an uncertain market.

“Flows have proven resilient post the UK referendum, investment performance has been strong – aided by the weak sterling – and the results are a beat to both our expectations and consensus.”