Schroders Group sees £1.2bn in net intermediary outflows

Schroders group chief executive Peter Harrison

Schroders saw £1.2bn in net outflows from its advised business in the first half of the year despite an overall increase in assets under management.

In its half year results, published today, the asset manager says flows into its institutional and wealth management channels offset the outflows in its adviser arm with inflows of £1.4bn and £600m respectively.

Of its wealth management inflows, £400m came through Best Practice parent Benchmark Capital, which Schroders acquired in November.

Asset under management in the adviser channel stood at £124.7bn, an increase from £120bn in January.

Schroders’ asset management arm reported £200m in inflows, but this was down from £1.1bn for the same period a year ago.

Despite the outflows, total AUM and AUA at the firm stood at £418.2bn at at 30 June, up from £343.8bn for the same period last year.

Pre-tax profits are up 21 per cent from £282.3m to £342.8m.

Separately, Schroders also says it plans to increase its focus on its private assets arm. As part of this strategy, it is working to complete its £7bn deal with Swiss private equity business Adveq.

Schroders group chief executive Peter Harrison says: “Assets under management and administration have reached a new high. Underlying progress in all regions was encouraging and we are building out our capabilities in private assets.

“We are confident in our ability to continue identifying, and investing in, areas of future growth.

“Markets have remained buoyant in the first half of the year, but we remain cognisant that these trends can be volatile and that market returns are difficult to predict.”