View more on these topics

Schroders profits down 69 per cent for 2008 due to heavy writedowns

Schroders has reported a 69 per cent drop in pre-tax profits for 2008, down to £123.1m from £392.5m for the year ending December 31.

Exceptional charges of £167.4m hit the firm from unrealised writedowns and realised losses on group investment capital.

Redundancy costs and the knock on effect from acquisitions in asset management and private banking operations also hampered performance.

Investor withdrawals also dented profit before tax (and exceptional items) in these operations which fell to £289.5m from £307.8m over the same period.

Funds under management for the group also fell to £110.2m from £139.1 the previous year.

Schroders saw heavy outflows of £6.2bn from retail investors in its asset management operations in 2008. This was particularly strong in the second half as global investors retreated more widely from equity funds.

Final dividend will remain at 21p, taking the total dividend for 2008 to 31p up 1p on the previous year.

The firm said it expects the very challenging environment to persist throughout 2009. It says: “The impact on revenues of lower levels of assets under management will be partially offset by lower compensation and other costs. However, whilst we are actively managing our cost base, we will not take actions which could damage our franchise or limit growth opportunities when markets recover.”


Abroad range for income

It has long been the foundation of the typical investor’s portfolio but UK equity income funds are starting to get stiff competition from their overseas counterparts.

Scheme pays explained

By Fiona Hanrahan, senior product insight and technical support analyst We’ve received lots of queries on scheme pays and when it can be used. This article explains how it works and the conditions which apply. What is ‘scheme pays’? If an individual exceeds the annual allowance (AA) and an AA tax charge is due, they […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm