Schroder first half profits fall as markets take their toll
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Schroders has revealed its first half pre-tax profits fell by £38.3m, year-on-year, to £177.4m, as assets under managment slipped and volatile markets took their toll.
Assets under management dropped to £194.6bn at the end of June, higher than at the end of December but lower than the £204.8bn reported a year earlier.
The asset management & private banking group reported most gains earlier in the year had been given back in the second quarter over increased eurozone concerns.
The group warned therer were “no clear trends in investor senitiment beyond a natural reluctance amongst institutional, retail and high net worth clients to commit to long term investment strategies in the face of so much macro economic uncertainty”.
However, the group reported net new business of £2.7bn in the first half.
Net revenue from its asset management arm fell to £491m from £534.6m, including performance fees whichdropped to £10.1m from £13.8m.
Assets under management in its intermediary business increased to £65.3bn from £62.9bn at the end of 2011, with £1bn of net inflows.
The board also declared an unchanged interim dividend of 13 pence per share.
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