Schroders’ pre-tax profits dropped 13 per cent to £88.6m in the third quarter, down from £101.6m in Q3 last year.
The asset manager’s interim accounts, published today, shows profits were hit by a drop-off in performance fees in its asset management division, down from £14.3m in Q3 2011 to £1.9m in Q3 this year.
The asset manager reported net inflows of £5.3bn in the first nine months of the year, higher than the £5.1bn reported during the same period of 2011.
Assets under management reached £202.8bn in the third quarter, up from £194.6bn in Q2.
The intermediary business saw net inflows of £800m in Q3, bringing the total intermediary inflows to £68.3bn for the nine months to the end of September.
A spokesman says: “We expect a slowdown in institutional flows in the short term but demand in intermediary has picked up.
“It is not clear whether this more positive tone in intermediary will be sustained given the uncertain economic background, but long term we are well positioned with a broad product range, competitive investment performance and strong distribution.”