Schroders weathers volatile 2011

City A.M. Reporter
Blue chip investment manager Schroders (SDR.L) said an injection of institutional money kept its net inflows for 2011 positive against a backdrop of wobbly markets that sent many retail clients headed for the exits.

In full year earnings for 2011, Schroders said total net inflows were £3.2bn with a £6.8bn net gain in institutional money outpacing a net outflow of £3.8bn of retail client money.

The private bank also posted a net gain of new money during the year, with rich clients adding £200m to the books.

The total net new business numbers are considerably lower than the £27bn added the previous year, however.

Tough market conditions put downward pressure on assets and the firm ended the year with £187.3bn under management, down from £196.7bn a year earlier.

The group's pre-tax profit of £407.3m beat industry expectations of just under £400m, largely on account of strong revenues in its asset management division.

The group also announced Chief Investment Officer Alan Brown will step down from his post and from the board, remaining at the firm as a senior adviser.