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Money Management

Institutional growth powers 5.4% growth in Schroders AUM


Schroders' AUM grew 5.4% for the six months and 18.4% for the year ended June 30, to 406.9 billion ($527.7 billion), bolstered by growth in the firm's institutional business.

Net inflows for the firm totaled 800 million for the first half of 2017, compared with 700 million for the six months ended June 30, 2016.

Assets were also bolstered over the first half of 2017 by investment returns of 17.6% across the firm, vs. 29.6% for the six months ended June 30.

Schroders' institutional assets under management grew 5.4% in the first six months of 2017 and were up 17.2% for the year. Institutional net inflows totaled 1.4 billion for the first half of 2017 vs. 4.4 billion in the first half of 2016.

The institutional business achieved investment returns of 10.9% for the six months ended June 30, compared with 19.1% for the first half of 2016. Figures for the six months ended Dec. 31 were not available.

The half-year update shows strong demand for the firm's multiasset strategies, and also from U.K. and North American clients.

Schroders said in April it had agreed to acquire Switzerland-based private equity business Adveq. This latest update said the acquisition was consistent with Schroders' strategy "of accelerating our growth in private assets and further diversifying our product offering and we expect the deal to complete in the near future."

In a statement accompanying the update, Peter Harrison, group CEO, said: "Underlying progress in all regions was encouraging and we are building out our capabilities in private assets. We are confident in our ability to continue identifying, and investing in, areas of future growth."

He added that while markets have remained buoyant in the first six months of the year, "we remain cognizant that these trends can be volatile and that market returns are difficult to predict."