Schroders reports small rise in pre-tax profits

Asset manager Schroders has reported a small rise in pre-tax profits for 2011, as it reported net outflows in its intermediary business.

Pre-tax profit increased to £407.3m from the £406.9m reported in 2010, while assets under management dropped from £196.7 billion to £187.3 billion over the same period.

The asset manager reported that net inflows were “much reduced”, dropping from £27.1 billion in 2010 to £3.2 billion. Net outflows of £3.8 billion were reported in the intermediary channel, compared with inflows of £7.9 billion in 2010.

Profits were helped by a small rise in its asset management business where profit increased to £389.4m from £381m. However, the firm noted a big jump in profit from its private banking arm, more than doubling from £10.1m to £23.8m. (article continues below)

Schroders reported that retail investor demand had been affected by “growing concerns over the macroeconomic environment and equity market volatilty”.

The FTSE 100-listed asset manager reported management fees of more than £1.2 billion and performance fees of £37.8m.