Schroders assets surge after acquisitions

Schroders assets surge after acquisitions

Schroders' assets under management (AUM) grew by 13 per cent to £447bn in 2017 because of a series of acquisitions and benign market conditions.

Net inflows were £9.6bn, compared with £1.1bn for 2016. Schroders said these inflows contributed £24m of revenue, and will contribute £63m a year in future results.

Schroders said net income was £2.07bn and profit was £760m, an increase of 23 per cent.

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Peter Harrison, chief executive of Schroders, said diversification would continue to be key for the company’s future prospects.

He said: "Focusing on the longer term, we have continued to see good progress in a number of key strategic areas, with the expansion of our investment capabilities in private assets, an improvement in wealth management and strong underlying momentum in North America.

"There are headwinds facing the industry but we continue to believe that there remain opportunities for growth. Our diversified business model, ongoing focus on costs, strong financial position and willingness to invest mean that we continue to be well placed."

Among the acquisitions cited by the company as having made a positive contribution during the year was Adveq, a private equity and alternative assets business.

Schroders said contribution from this area of the business helped to offset outflows from its equity funds.

The company also bought the discretionary client assets of C Hoare & Co and said it benefited from a full year’s contribution from advice business Benchmark Capital, which it bought in December 2016.

The wealth management business contributed £2bn of new money, with £900m of this coming through Benchmark Capital.

Mr Harrison said: "We have seen good underlying growth in key strategic areas and have continued to invest in the future growth of the business.

"In Asia Pacific we have continued to generate positive net new business from clients in Japan and we are expanding our distribution reach in mainland China.

"There has also been good underlying momentum in North America, with strong demand from Institutional clients and an encouraging first year in our relationship with Hartford."