FUNDS firm Schroders beat forecasts with £2.6bn of net new money in the third quarter, but profits fell and it struck a cautious tone about the coming year.
The firm attracted £1.9bn net inflows to its institutional funds and £800m to its retail-focused Intermediary unit, though clients in its private banking arm pulled out a net £100m.
While the firm smashed through forecasts of £1.1bn total inflows, it cast doubt on whether the trend will continue.
“It is not clear whether this more positive tone in Intermediary will be sustained given the uncertain economic background, but long term we are well positioned with a broad product range, competitive investment performance and strong distribution,” said Schroders in a trading statement yesterday.
Funds under management rose to £202bn, up from £194.6bn three months earlier. This was helped by £5.6bn of investment returns.
Overall quarterly profit fell 12.8 per cent to £88.6m, the bulk of which came from Schroders’ asset management arm. The private bank made £4m, down 40 per cent, as revenues dipped 16 per cent to £24.6m.