Schroders reports AUM flat in first half of year

Assets under management at Schroders were flat for the six months ended June 30, at £435.7 billion ($573.1 billion), but institutional business grew over the period. Assets grew 7.1% for the year, a financial update from the firm showed.

Net inflows totaled £1.2 billion for the half-year period, vs. £8.8 billion for the six months ended Dec. 31, and £800 million for the half-year ended June 30, 2017.

The firm's net income was £1.09 billion for the first six months of 2018, up 11.9% from figures for the first half of 2017. Comparative figures for the six months ended Dec. 31 were not available.

Profit before tax was £371.1 million for the half year, up 8.3% vs. the first half of 2017.

Institutional assets under management grew 0.5% in the six months through June 30, to £257.2 billion, and grew 7.8% for the year.

Net inflows for institutional business were £200 million for the half-year period, vs. £2.8 billion for the half-year ended Dec. 31. For the first half of 2017, institutional net inflows were £1.4 billion.

Institutional business saw strong demand from clients in North America and Latin America, but outflows in continental Europe and Australia. Multiasset and private and alternative strategies recorded net inflows, while equity strategies recorded redemptions. Figures were not available.

Schroders said in the update that institutional net inflows were offset by redemptions in its intermediary business. Wealth management added £1.2 billion in net new business.

"Against a challenging backdrop we have delivered robust revenue growth through our strategy of focusing on new markets and by continuing to evolve our products and solutions," said Peter Harrison, group CEO, in a statement accompanying the update. "Our diversified business model has again proven its worth. Wealth management has seen strong client demand and we have continued to expand our capabilities within private assets and alternatives, offsetting industry headwinds in other areas. We remain confident that we can generate growth through the cycle and that we are well placed to continue to create value for our clients and shareholders over the long term."

Assets under management and administration grew 0.5% over the six months to £449.4 billion as at June 30. For the year, those assets grew 7.5%.