30th Jul 2015 07:12
LONDON (Alliance News) - Schroders PLC Thursday said it is preparing for high levels of volatility in the financial markets in the near term, as the asset manager reported increases in pretax profit and funds under management in the first half.
The FTSE 100 company said it made a GBP290.3 million pretax profit in the six months to the end of June, compared with GBP233.9 million in the corresponding period the prior year. It increased its interim dividend by 21% to 29.0 pence per share.
Chief Executive Michael Dobson said that Schroders generated GBP8.8 billion in net inflows despite heightened volatility seen in financial markets towards the end of the half as a result of ongoing worries about Greece and China, taking assets under management up by 14% to GBP309.9 billion in the six months.
"Net inflows were particularly strong in fixed income and, regionally, in Asia Pacific and Continental Europe," Dobson said in a statement.
Schroders issued a note of caution about its outlook for the short term, reiterating concerns about uncertainty in the Eurozone and in China, as well as a potential interest rate increase in the US. The asset manager said market volatility is likely to remain high, which could affect demand from retail investors for its products.
By Samuel Agini; [email protected]; @samuelagini
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