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Money Management

Schroders reports 12.9% gain in AUM for 2017

Schroders' assets under management grew 12.9% in 2017 to 435.7 billion ($587.8 billion), bolstered by institutional net inflows and an acquisition.

The firm's AUM was up 3.8% over the three months ended Dec. 31, showed Schroders' annual financial update Thursday.

Schorders' assets under management and administration grew 13% to 447 billion over the year.

Net income increased 16.7% to 2.1 billion in 2017, while profit before tax grew 24% to 880.3 million compared with figures for 2016.

Currency impacts, with weakness in the pound sterling in the first half of 2017, added 27 million to profit before tax and exceptional items. However, the currency strengthened in the second half of the year, reducing assets under management by about 12 billion.

Net inflows in 2017 totaled 9.6 billion, up from 1.1 billion in 2016.

Schroders' institutional assets under management grew 13% to a record high of 255.8 billion for the year, and grew 3.4% in the fourth quarter.

Institutional net inflows were 4.2 billion in 2017, compared with 4.3 billion in 2016. Net flows for the quarter were not available.

The firm said in the results that institutional client demand was driven by multiasset, private assets and alternatives strategies. U.K. and North American clients drove net inflows, it said.

In 2017, Schroders bolstered its private assets and alternatives capabilities with the acquisition of Swiss private equity firm Adveq. The acquisition and organic growth increased total private assets and alternatives assets under management by 36.5% to 33.3 billion.

"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," said Peter Harrison, group CEO, in the update.