Schroders’ asset management business reported strong demand by European investors through intermediary channels in the first half (H1).
In a week when Schroders and another UK asset manager, Jupiter, reported their H1 earnings, Schroders said its intermediary channel had also created strong demand for equities.
However, net inflows at Jupiter outstripped those at the much larger Schroders as the latter’s net figure for intermediaries was hit by net outflows from sub-advised mandates, including a significant multi-asset mandate in North America.
Schroders saw an overall £200 million of new business in its asset management division in the first half, with positive institutional flows of £1.4 billion restrained by a £1.2 billion net outflow from intermediaries.
Broker Cantor Fitzgerald described the outflows as “disappointing” but noted investment performance remained strong.
Jupiter, meanwhile, saw net flows of £3.6 billion, nearly four times more than its whole-year figures last year, and said 81% of assets under management (AUM) performed above median net of fees.
AUM within Schroders asset management business were £363.3 billion and AUM at Jupiter was £46.9 billion.
Schroders’ total assets under management and administration, including for its wealth management business, rose to £418.2 billion, a new high for the company.
Keith Baird, of Cantor Fitzgerald Europe, said: “Given Schroders’ globally diversified business, we assume that inflows will recover in H2 based on strong stock markets, subject to the impending [Federal Reserve] action on interest rates.”
Deutsche Bank also reported interim results today, which revealed that Deutsche Asset Management saw positive net inflows of €6 billion in the quarter, bringing its net new assets in H1 to €11 billion.
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