31st Jul 2014 08:03
LONDON (Alliance News) - Schroders PLC Thursday reported a rise in its assets under management over the course of the first-half, as net inflows and investment returns continued into the second-quarter.
In a statement, Schroders reported GBP271.5 billion of assets under management at the end of June, a 1.3% increase during second-quarter and a 3.3% increase across all of the first half. The FTSE 100 asset manager reported net inflows into institutional, intermediary, asset management, and wealth management over the first-half, though institutional saw a GBP300.0 million net outflow in the second-quarter alone.
First-half pretax profit increased to GBP233.9 million from GBP221.7 million, aided by increases in its asset management and wealth management divisions. Revenue increased to GBP954.4 million from GBP815.6 million, while operating expenses were up to GBP504.6 million from GBP432.7 million. Schroders increased its interim dividend to 24.0 pence from 16.0p.
''We have seen good inflows in July, and we have a significant pipeline of business we have won in Institutional which has not yet been funded. Our focus on delivering long-term value for shareholders is reflected in the 50% increase in the interim dividend," Chief Executive Michael Dobson said in a statement.
However, Schroders said that the short-term outlook for retail investor demand is uncertain given no clear trend in markets, even though it reported "good levels" of intermediary flows in July. The asset manager said that it has more visibility regarding institutional flows, with a "significant pipeline of new business won" but not yet funded.
"We continue to see a wide range of growth opportunities across our business in the longer term," Schroders said.
Schroders shares were Thursday quoted down 1.5% at 2,462.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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