In 2016 Schroders reported net redemptions from its intermediary channel of £2.9bn as macro uncertainty and volatile markets impacted demand.
The figures from its full year results showed the intermediary channel recorded £43.4bn of gross inflows but £46.3bn of gross outflows, which the firm noted came “predominantly from equity products”.
However, the firm’s institutional channel offset the redemptions with net inflows of £4.3bn in the 12 months to bring total net inflows across the business to £1.1bn in 2016.
Schroders noted the weakness of sterling increased overall assets under management and administration (AUMA) by approximately £42bn, to reach £397.1bn, while it also pointed out acquisitions increased assets under management by £6.7bn.
The asset management division saw assets increase from £281.9bn to £346.4bn. Meanwhile the intermediary sales channel assets under management increased by almost £20bn to £120.1bn in the year, while the wealth management business saw assets increase to £39.6bn in spite of net outflows of £300m in the period.
It noted wealth management net flows in early 2016 “were impacted by clients’ preference for private assets after limited market returns in previous years and also for property in the UK”.
Peter Harrison, group chief executive, commented: “We delivered good results in 2016, with profit before tax and exceptional items increasing 6 per cent to £644.7m. Strong investment performance, positive net inflows and strategic acquisitions led to assets under management and administration increasing 27 per cent to £397.1bn.
“We have made good progress against our strategic objectives and see a number of future growth opportunities. Our diversified business model, a strong financial position and willingness to invest behind the business means we are well placed to take advantage of these opportunities, despite the challenges faced by the industry.”
Meanwhile Schroders also announced Philip Mallinckrodt, group head of private assets and wealth management, relinquished his executive responsibilities on March 1 after more than 20 years with the firm.
He does however continue on the board of Schroders as a non-executive director and has also joined the nominations committee.
Michael Dobson, chairman of Schroders, said "Philip has made a major contribution to Schroders' success, particularly in the last eight years as an executive director of Schroders. I am delighted that he will serve as a non-executive director and I look forward to continuing to work with him in this new capacity."
