Schroders profits surge 14% despite lower inflows

Schroders-Building-700x450.jpgSchroders has seen profit before tax rise 14 per cent to £589m during 2015, despite inflows almost halving compared to 2014.

Shares in the asset manager have jumped 4 per cent today to a two-month high of £28.36.

In its annual results published today, the asset manager saw profits grow from £517.1m one year ago, but inflows were down from £24.8bn in 2014 to £13bn in 2015.

The firm said the outflows mostly came from private clients and charities because of “weaker market conditions”. Assets under management increased from £300bn to £313.5bn in 2014.

In a separate announcement Schroders also announced a series of management changes at the firm including the departure of chief executive Michael Dobson after 14 years.

Dobson will be replaced by head of investment Peter Harrison from next month.

Commenting on the business results, Dobson says: “2015 was another good year for Schroders with profit before tax and exceptional items reaching a record £609.7m. Competitive investment performance and strong distribution led to £13bn of net new business and assets under management at the end of the year were £313.5bn.

Reflecting these strong results, the board is recommending a final dividend of 58 pence per share, bringing  the dividend for the year to 87 pence per share, an increase of 12 per cent.

“Schroders is 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,” adds Dobson.