Schroders assets slide as ‘industry headwinds’ shake markets
Schroders said it continues to grapple with “industry headwinds” today as it notched a slide in assets under management but a boost in profits for the first six months of the year.
The London-listed investor said it had seen a bump in operating profit of £341.4m in the six month to June after a sharp fall to £316m in the second half of last year.
The firm made £406.9m at the six month mark in 2022.
Assets under management at Schroders across the group slid to £726.1bn however as the market continues to be shaken by the volatility that has hammered money managed for the past year. Schroders’ assets have fallen from £773.4bn this time last year.
Chief Peter Harrison said today it had been a “resilient” set of numbers against a backdrop of volatility.
“Our resilient strategy, diversified capabilities and global footprint give us continued confidence in the long-term outlook for the business,” he added.
Schroders has been shifting onto a growth footing and said it had managed to rake in overall net new business of £5.7bn, excluding joint ventures and associate firms.
Harrison’s three “strategic growth areas” of wealth management, private assets and solutions generated combined net new business of £11.8bn in the six month period.
The asset management business suffered a slowdown in the first six months. Operating profits slumped sharply to £265.5m, down from £329m in the same period last year.
Bosses said they were now hoping a “strategic rebalancing of the business” would allow the firm to access “higher growth areas of the market which offer greater stability and resilience”.
The firm held its interim dividend of 6.5 pence per share.