Asset management declines lead slide at Schroders

Asset management company Schroders posted its half-year results to 30 June on Thursday, with profit before tax dropping to £282.3m from £290.3m.

Of that, profit before tax in asset management dropped to £249.1m from £265m, but in wealth management it grew to £28.4m from £26m, and in the group segment it hit £4.8m after a loss of £0.7m in the first half of last year.

The FTSE 100 firm’s profit before tax and exceptional items was £293.7m, down from £305.7m.

During the period, Schroders had net inflows of £0.7bn, a serious slide from £8.8bn in the same period last year, although assets under management grew to £343.8bn from £309.9bn.

The board declared an interim dividend of 29p per share, in line with last year’s 29p per share interim dividend.

“We have delivered good results in the first half of 2016,” said group chief executive Peter Harrison.

“Assets under management reached a record level of £343.8bn.”

Harrison said there was heightened market volatility throughout the period, particularly towards the end of June, following the result of the referendum on the UK's membership of the European Union.

“We expect the current market environment to persist and this may have an impact on investor demand.

“Our diversified business model continues to perform well and we are well placed to create value for our clients and our shareholders over the long term,” Harrison explained.