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Money Management

Schroders AUM slips 5.7% for 2018

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.