Assets under management at Schroders fell for 5.7% in the 12 months ended Dec. 31 to £421.4 billion ($556.3 billion) on declining markets, a financial update from the firm Thursday showed.
Net outflows totaled £9.5 billion for the 12 months, vs. net inflows of £9.6 billion for the 12 months ended Dec. 31, 2017.
The London-based firm's net income was £2.12 billion for the year ended Dec. 31, up 2.4% from in £2.07 billion in 2017.
Profit before tax was £649.9 million, down 15% vs. 2017 when it reached £760.2 million.
Assets under management in its asset management business increased 7.2% to £389.8 billion from £363.5 billion on macro and political issues impact. Schroders saw net outflows from clients of £11.2 billion compared to £7.6 billion in 2017.
Institutional assets under management stood at £242.3 billion down 5.2% from £255.8 billion over the previous year.
Net outflows for institutional business were £6.6 billion for the year and were driven by continued redemptions from Australian pension funds and a client redemption in Japan.
But Schroders said in the update that institutional net outflows were offset by demand for equity mandates from North American clients and for multiasset solutions from U.K.-based clients.
"We have been pleased with the underlying strength of the business and the resilience of our diversified business model," Schroders CEO Peter Harrison said in a news release accompanying the update.
