Schroders has booked a gain of £153m from its investment in Schroders Personal Wealth, its joint venture with Lloyds, its latest accounts have shown.
Schroders Personal Wealth is an advice business that was formed as a joint venture with Lloyds Banking Group, and in which Schroders has a 49.9 per cent stake.
To create the business, Schroders swapped a 19.9 per cent holding in its wealth management business Schroders Wealth Holdings Limited to the new venture, along with many of the clients of that business.
Its results show the gain in the equity value of the investment was £153.6m.
Schroders Personal Wealth had net inflows during the year of £12.6bn.
Overall the company had assets under management of £500.2bn. This included net new business of £43bn, including £32bn one-off gains from a mandate won to manage assets for Scottish Widows clients, and £12.6bn from the advice business.
If those two items are stripped out, and only the businesses that existed in 2018 as well as 2019 are considered, the company had outflows of £1.3bn, which it described as “very small.” The outflows in 2018 were £9.5bn.
Advisers withdrew £1.5bn from the Schroders funds business in 2019, a performance the company described as “relatively resilient” due to the tough market conditions.
The information is contained in the annual results statement of the company, which were released to the stock exchange this morning (March 5).
The mutual funds business had total assets of £102.4bn, up from £91bn in the previous year, due to positive market movements.
During the year the company sold its stake in fund house RWC and bought a stake in alternative assets firm Blue Orchard.
The company’s operating profit for 2019 was £701m.
david.thorpe@ft.com
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