Negative investment performance at money managers Schroders and Man Group detracted from assets under management for the first half of the year, but Schroders continued to record overall net inflows.
Schroders' assets under management grew to a high of £525.8 billion ($648 billion), up 5.1% over the six months and up 18.3% over the year ended June 30.
Net inflows were £38.1 billion for the half-year period, vs. £1.2 billion in net outflows for the six months ended June 30, 2019. Figures for the six months ended Dec. 31 were not available.
Net inflows were attributed to the firm's wealth management and solutions businesses, a financial update said.
Negative investment performance reduced assets by £12.8 billion, compared with an addition of £35.1 billion for the same period in 2019.
Assets in Schroders' asset management business increased 6.1% for the six months and 16.9% for the year, to £460.1 billion as of June 30.
Asset management net inflows were £36.8 billion, compared with £2.1 billion in net outflows for the six months ended June 30, 2019. Poor investment performance for the asset management business reduced assets by £10.2 billion. For the six months ended June 30, 2019, asset management investment performance added £31.3 billion. Asset management net operating revenue was £802 million for the six months ended June 30, down 2.9% vs. figures for the same period in 2019. Profit before tax was £260.3 million, down 11% vs. the same period last year.
Man Group's funds under management fell 8% over the six months ended June 30 and fell 5.3% vs. figures as of June 30, 2019, to $108.3 billion.
The firm's half-year financial update said net outflows totaled $1.2 billion, compared with $1.1 billion in net outflows for the same period in 2019.
Investment performance reduced a under management by $5.4 billion for the six months ended June 30 vs. a $6.8 billion gain for the same period in 2019.
Net revenue was $397 million for the six months, down 24.2% from the six months ended June 30, 2019, while profit before tax was $94 million, down from $157 million for the first half of 2019.
A bright spot for Man Group was its AHL TargetRisk strategy, which pulled in net inflows of $3.4 billion. The update said Man Group expects the balanced long-only strategy to continue to be attractive in the second half of the year.