Schroders suffers £3.3bn intermediary outflows

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Schroders has suffered £3.3bn outflows from intermediaries spooked by market volatility as it announces total assets under management of £343.8 billion for H1 2016, compared to £309.9 billion a year earlier.

Sterling weakness has helped boost assets under management by £28.5bn.

The asset manager says volatile markets were impacting investor sentiment, particularly in the UK and Asia, in the intermediary space, where assets under management total £106.4bn, compared to £102.4bn a year earlier.

Institutional demand stemmed intermediary outflows and total netflows for the asset manager over the first half were £700m.

Profit before tax for the period was £282.3 million compared to £290.3 million for the same period last year.

Peter Harrison, group chief executive, says: “There was heightened market volatility throughout the period, particularly towards the end of June, following the result of the referendum on the UK’s membership of the European Union. We expect the current market environment to persist and this may have an impact on investor demand.”

The asset manager says it is “well placed” to manage risks associated with Brexit – including regulatory and legal changes on its business model. But it adds it will be lobbying relevant stakeholders to “safeguard the competitiveness of the UK asset management industry”.

The asset manager says 70 per cent of assets have outperformed their benchmark or peer group over a three year period.