Asset manager Schroders saw its pre-tax profits drop to £266m during the first nine months of the year, as assets under management increased by £8.2bn to £203bn during the third quarter.
Pre-tax profits were down compared with the £317.3m reported during the same period in 2011. The firm saw pre-tax profits during the third quarter slipped to £88.6m, compared with £101.6m in the third quarter of 2011.
Profits were hit by a drop off in performance fees in its asset management division, down from £14.3m in the third quarter of 2011 to £1.9m in the three months to 30 September 2012, and a loss in its group segment.
The asset manager reported net inflows of £5.3bn in the first nine months of the year, higher than the £5.1bn reported during the same period of 2011.
A spokesperson says: “We expect a slowdown in institutional flows in the short term but demand in intermediary has picked up.
“It is not clear whether this more positive tone in intermediary will be sustained given the uncertain economic background, but long term we are well positioned with a broad product range, competitive investment performance and strong distribution.”
The intermediary business saw net inflows of £1.8bn for the nine months to 30 September 2012.