Schroders's interim profits fall as net outflows hit £1.2bn
Asset manager Schroders reported a drop in first-half profits on Thursday on high total client net outflows.
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Pre-tax profits fell 14.28% to £340.4m in the six months ended 30 June; however, this figure was a touch ahead of the £336.3m expected by analysts.
Schroders saw clients withdrew £1.2bn net during the half, a marked turnaround when compared against the positive net inflows of £1.2bn recorded during the same period a year earlier.
The FTSE 100-listed firm claimed a "risk-off" environment across financial markets was particularly evident in its intermediary unit, which recorded net outflows of £2.4bn, while the group's institutional channel proved to be somewhat more resilient, winning net new business of £300m. Schroders also said its wealth management division had continued to perform strongly, with net new business of £900m.
On the plus side, Schroders turned in an all-time record assets under management of £444.4bn and said its pipeline of new inflows was strong.
Schroders kept its interim dividend of 35p per share unchanged.
Chief executive Peter Harrison said: "In a challenging market, we continue to broaden and enhance our range of investment capabilities to help meet our clients' needs.
"We remain on track with our plans, giving us confidence that our diversified business model and global presence position us well to generate positive outcomes for both our clients and shareholders over the long term."
As of 0835 BST, Schroders shares had ticked ahead 0.13% to 2,977p.