Schroders profits surge as assets hit record £868bn
Schroders said its profit nearly doubled in the first half of the year as assets under management hit a record high of £868bn.
The FTSE 100 money manager, which is in the process of being acquired by US funds group Nuveen, said assets under management (AUM) jumped 12 per cent to £867.8bn, up from £776.6bn the prior year.
The group credited the rise to improving client sentiment, coupled with “positive foreign exchange movements and investment performance”.
Profit before tax climbed to £396.8m from £196.9m, driven by its financial performance and lower portfolio simplification costs.
Richard Oldfield, group chief executive said: “Although markets will remain unpredictable, our focus will be on continued execution of our strategic priorities, delivering improved, sustainable growth, and we are excited about the future potential of the combined business.”
Oldfield said the group had delivered over 98 per cent of the company’s planned £150m in annualised cost savings and reduced the group’ adjusted cost to income ratio below 70 per cent.
Gross inflows inched up to £69.3bn from £68.2bn.
The board declared an interim dividend of 7p per share, up from 6.5p the previous year.
Shares fell 1 per cent in early trading to 588p per share. The stock is up 44 per cent this year to date, after news of its sale to US firm Nuveen sent shares rocketing in February.
Public market woes
Further AUM growth at Schroders was offset by both net disposals and outflows, primarily from its public markets division.
Group net disposals reached £6.8bn as the group continued to exit from selected geographies, including Brazil and Indonesia, and client services.
Total net outflows hit £4.2bn.
The public markets business suffered outflows of £11.7bn, compared to just £0.5bn the previous year. The business has faced significant pressure from market competitors who are offering low-cost passive alternatives while appetite for public channels was damaged by heightened market volatility during the end of the first quarter.
its wealth management segment recorded inflows of £2.5bn, broadly in line with the previous year.
Cazenove Capital contributed £2bn, compared to £1.4bn last year, reflecting growing interest in its core wealth management business.
Nuveen acquisition
Schroders’ £9.9bn acquisition by Nuveen is expected to be completed in the final quarter of 2026, subject to regulatory approval.
The group also “accelerated” its transformation programme, delivering over 98 per cent of its planned £150m annualised cost savings.