Assets under management (AUM) at Schroders jumped £9bn in the first three months of the year, up to £672bn in total – a record high for the group.
In a previous trading update the asset manager said the rise in AUM showcased “the benefits of active investment management and our ability to deliver a good outcome for clients”.
Its asset management division was responsible for more than £8bn of that increase, with its recently launched wealth division bringing in £0.8bn in the three months.
Despite the economic turmoil caused by Covid-19 and its subsequent restrictions, the value of UK asset manager’s AUM grew in 2020, and is projected to grow more in 2021.
Consultancy EY projected UK asset manager AUM grew by 3.6 per cent in 2020, and is forecast to rise a further 7.1 per cent in 2021 to £1.64trn, subject to a successful vaccine rollout, relaxation of lockdown restrictions and economic rebound.
Gill Lofts, UK head of wealth & asset management at EY, said: “Despite the pandemic-related economic shock, the value of UK asset manager AUM increased last year as the UK shared in the H2 global markets bounce-back, and further growth is forecast for 2021, boosted by agreement of the Brexit deal.
“Asset managers have ridden this period of economic downturn relatively well, and while the outlook is brighter than it is for many other sectors, the path ahead still has many challenges to navigate, and much remains uncertain.”
Schroders’ profit before tax and exceptional items increased marginally to £702.3m for its 2020 financial year, beating a consensus of £649.2m.
Schroders’ share price was relatively flat this morning, up 0.11 per cent just before 9am.