Schroders PLC reported assets under management of £324.9 billion ($467.6 billion) as of March 31, up 3.6% from three months ago and up 1.7% from a year earlier.
Schroders' institutional business saw assets under management increase 4.9% over the quarter to £189.9 billion, and increased the same amount compared with figures as of March 31, 2015.
Net inflows for the institutional business were £4.5 billion, compared with £5.3 billion of net inflows for the three months ended Dec. 31 and £2 billion of net inflows for the three months ended March 31, 2015.
Within institutional assets under management, 40% was accounted for by equities strategies, compared with 41% as of Dec. 31 and 45% as of March 31, 2015; fixed-income strategies accounted for 23% of assets, up from 22% and 19%, respectively; multiasset strategies, flat at 31% over the quarter and up from 30% a year earlier; and emerging markets debt, commodities and real estate assets combined were flat at 6% across all dates.
CEO Peter Harrison said in a conference call that overall AUM was driven by three factors: negative market movements of £2.8 billion; positive foreign-exchange impact of £11.5 billion, and overall net new inflows of £2.7 billion.
The financial update was Mr. Harrison's first as CEO since he took over from Michael Dobson on April 4. Mr. Dobson was appointed chairman.
In a statement Thursday, Hermes Investment Management's stewardship division, Hermes EOS, said it opposed Mr. Dobson's appointment. The firm said it intensified its engagement with the company on board composition following Mr. Dobson's appointment.
Hermes said it was supportive of Mr. Harrison's appointment as CEO, and the timing of the succession process. It also supports the board's intentions to recruit further non-executive directors, leading to “a majority independent board.”
However, regarding Mr. Dobson, the statement said: “While we recognize the significant contribution that (Mr. Dobson) has made in his tenure as CEO, we are not able to support the decision to appoint him as chair. Although we recognize some of the key client, regulator and strategic partner relationships he holds, we do not believe that these justify a breach of a fundamental principle of U.S. corporate governance and best practice that a CEO should not become chair of the company.”
The statement added that Hermes has recommended to clients to vote against the re-election of both the senior independent director who led the chairman succession process, and of Mr. Dobson, at Schroders' annual general meeting Thursday.