28th Jul 2016 07:31
LONDON (Alliance News) - Fund manager Schroders PLC on Thursday said its pretax profit dipped in the first half of 2016 as net inflows sunk, though the weakness of sterling increased assets under management for the group substantially.
Schroders said it made a GBP282.3 million pretax profit in the half-year to the end of June, down from GBP290.3 million the year before.
Net inflows in the six months shrank to GBP700.0 million from the GBP8.8 billion Schroders had reported for the first half of 2015.
Assets under management, however, grew to GBP343.8 billion at the end of June from GBP309.9 billion at the same point in 2015, boosted by sterling weakness, which increased the value of those assets by around GBP28.5 billion. Investment performance also contributed, Schroders said, with 70% of its funds outperforming their benchmarks.
The group will pay an interim dividend of 29.0 pence, flat year-on-year.
"There was heightened market volatility throughout the period, particularly towards the end of June, following the result of the referendum on the UK's membership of the European Union. We expect the current market environment to persist and this may have an impact on investor demand. Our diversified business model continues to perform well and we are well placed to create value for our clients and our shareholders over the long term," said Chief Executive Peter Harrison.
Shares in Schroders were down 1.4% to 2,605.00p Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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