Schroders books solid earnings growth, names new CEO

The asset manager said profit before tax and exceptional items rose 8% to £609.7m, from £565.2m, while profit before tax jumped 14% to £589m.

Schroders had a total of £315bn assets under management on 31 December, up from £300bn a year earlier. Its net inflows dropped during the year, however, to £13bn from £24.8bn.

Earnings per share were up 12% to 171.1p, from 152.7p. Schroders' board recommended a final dividend of 58p, taking the year's total dividend to 87p, a 12% increase.

Michael Dobson, who is stepping down as CEO after 15 years in office, said, "2015 was another good year for Schroders with profit before tax and exceptional items reaching record levels."

"Competitive investment performance and strong distribution led to £13.0bn of net new business and assets under management at the end of the year were £313.5bn," he added.

Looking ahead, the company saw a combination of an interest rate rise in the US, deteriorating economic indicators in China, a weak oil price and fears of slowing economic growth or even recession in North America and Europe had led to sharp falls in equities and some fixed income markets.

Schroders' board said it believed markets would remain volatile in the face of these uncertainties, with an inevitable impact on retail investor demand in the short term.

The board confirmed it had seen continuing good inflows in Institutional to date in 2016, partially offset by outflows in Intermediary. Dobson said Schroders was well placed for a more challenging environment, with a highly diversified business and a strong financial position.

"We see many interesting long-term growth opportunities and we will again be taking advantage of a period of dislocation to invest behind them."

In tandem with the publication of its results, Schroders' confirmed that Dobson would step down from the CEO's office and be succeeded by Peter Harrison on 4 April. Harrison joined Schroders in 2013 as head of equities, becoming a board member and head of investment in 2014. He had initially joined the firm as a graduate in 1988, and rejoined Schroders in 2013.

Andrew Beeson, who had been chairman for the last four years and a member of the board since 2004, would retire on 4 April. In turn, Dobson had been appointed non-executive chairman, succeeding him.

Additionally, Massimo Tosato, executive vice chairman and global head of distribution, would retire as a director and leave the company on 31 December.

Ashley Almanza, who joined the board in 2011 as a non-executive director and was currently chairman of the audit and risk committee, would also be departing due to his commitments as chief executive of G4S. He would be leaving after the firm's annual general meeting on 28 April.