Schroders has recorded net flows of £7 billion (€8.9 billion) in the nine months to September, £6.6 billion of which was generated by its asset management arm.
The group reports that overall net flows were £1.5 billion higher than in the same period last year. Its total assets under management increased by 7% to £276.2 billion.
The asset management arm of the company boosted overall assets under management, increasing its assets under management by £18.9 billion compared to last year.
Meanwhile, the wealth management arm has £30.5 billion of assets under management, an increase of £0.6 billion.
With £108.4 billion, Schroders’ greatest portion of assets under management is held in the UK. Another £68.3 billion are held in the Asia Pacific region, and £50.2 billion in continental Europe.
The profit before tax has increased by 16% to £404.4 million. These better-than-expected results should be welcome by markets.
The share price of Schroders and those of other listed asset managers in Europe, including Aberdeen, took large dips earlier this year.
Share prices were trashed over the summer, despite recent mega deals that could substantially transform the businesses for the better.
Michael Dobson, chief executive, says the results are strong, despite an adverse impact on profits of £27 billion because of a strong sterling.
We have won net new business of £7 billion in the first nine months of the year and have continued to generate net inflows across all channels in October, despite market volatility,” Dobson says.
“Inflows in intermediary have been strong in continental Europe and Asia Pacific, particularly in income products across a number of different asset classes.”
©2014 funds europe
