Schroders’ assets under management reached a record high despite net inflows dipping over the year.
AUM jumped 15 per cent to £574.4bn after strong demand in its private assets and solutions divisions pushed net inflows to £42.5bn.
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Profit before tax and exceptional items increased marginally to £702.3m beating a consensus of £649.2m. Schroders declared an unchanged dividend of 114p pence per share, matching last year’s final payout of 79 pence per share.
Shares dipped nearly two per cent in early trading.
“The strength of our investment performance showcases the benefits of active investment management and our ability to deliver good outcomes for our clients,” chief executive Peter Harrison said.
“The Group is increasingly balanced towards the higher growth areas of Private Assets & Alternatives, Solutions and Wealth Management. We believe the macro-economic environment will accelerate demand for these areas going forward,” the company said.
Despite the resilient performance amid the pandemic Schroders warned coronavirus “continues to pose macro-economic uncertainty and will provide an environment which is favourable for active investment decision-making.”
The asset manager revealed it paid £34.7m for family office Sandaire and its £2.4bn of client assets last September. The firm announced three consecutive years of losses ahead of the sale to Schroders but the asset manager announced it offered an “exceptional opportunity”.