Schroders secured £4bn of net inflows into its "branded funds" business from intermediaries in the first half of 2017, but saw overall sales fall due to outflows from its sub-advised business.
The firm said there were net outflows of £1.2bn from its intermediary business owing to £5.2bn in sub-advised mandate redemptions.
The £4bn of net inflows into its funds business was dominated by demand for equity strategies, which Schroders said demonstrated improving investor sentiment.
The overall intermediary business continues to struggle, however, with the six month outflows coming after £2.9bn of net redemptions in 2016.
As in 2016, the firm's institutional business helped alleviate pressure on the intermediary arm. In the first half of 2017, institutional net inflows reached £1.4bn, leaving the company with combined net inflows of £200m for the period.
Assets under management (AUM) saw strong growth despite the struggles in sub-advised mandates. Intermediary AUM rose 3.8 per cent over the six months to £125bn. Overall AUM in the asset management business rose to £363bn from £346bn.
The firm's wealth management business also saw net inflows of £600m - the majority of which came from a single mandate. AUM rose 10 per cent to £43.6bn.
Schroders also secured a rise in profits, particularly when compared with what was a difficult opening six months of 2016. Asset management profit before tax rose to £301m in the first half of 2017 compared with £249m in the same period last year.