Schroders reported a 23.1% increase in assets under management to £386 billion ($474.8 billion) for the year ended Dec. 31, and a 2.9% increase over the three months to that date, driven by investment performance and acquisitions.
Total net inflows for the year were £1.1 billion, compared with £13 billion of net inflows for the year ended Dec. 31, 2015. However, the firm reported £2 billion of net outflows over the final quarter of 2016, compared with net inflows of £2 billion for the three months ended Sept. 30.
Investment returns added £9.6 billion to assets under management for the quarter and £64.7 billion for the year.
Institutional assets under management were £226.3 billion as of Dec. 31, up 2% for the quarter and up 25% for the year, said a financial update Thursday.
Schroders' institutional business recorded £4.3 billion of net inflows for the year ended Dec. 31, compared with £8.8 billion of net inflows for 2015. For the quarter, institutional net outflows totaled £1.1 billion, compared with £1 billion of net inflows for the three months ended Sept. 30.
Investment returns for Schroders' institutional business added £5.5 billion for the fourth quarter and £40 billion for the year.
Peter Harrison, group CEO, said in a statement accompanying the update: “Strong investment performance, positive net inflows and strategic acquisitions led to assets under management and administration increasing.” Schroders acquired C. Hoare and Co. Wealth Management and Brookfield Investment Management’s securitized products team, while also adding £11.1 billion in administration assets through its purchase of Benchmark Capital in 2016. The firm also set up a joint venture with Hartford Funds last year. As part of the deal, Hartford adopted 10 of Schroders’ existing U.S. mutual funds.
The update added that Schroders is seeing opportunity in long-term asset allocation among its institutional clients.