Profits at Schroders have fallen, annual results for 2018 show, as much of the detail over the wealth manager’s plans for an advice joint venture with Lloyds remain under wraps.
Profit before tax dipped 15 per cent to £650m, as assets under management fell 6 per cent to £421bn.
In October, Schroders announced it would be teaming up with Lloyds to start a new financial planning proposition. However, details were scant in the results released today.
Chief executive Peter Harrison notes that “there was strong demand from wealth management clients” as it revealed the Lloyds plans, and Schroders “continued to invest for growth and saw good progress in a number of strategically important areas” such as wealth management.
The results read: “In October, we were delighted to announce that Lloyds Banking Group had chosen to entrust us with managing around £80bn of its clients’ assets, one of the largest mandates ever awarded. At the same time, we announced that we would be entering into a strategic partnership, which will combine Schroders’ investment and wealth management expertise and technology capabilities with Lloyds’ significant client base, multi-channel distribution and digital capabilities.
“Wealth management continues to be a key area of strategic focus for us and this partnership will allow us to create a market-leading wealth management proposition under the brand of Schroders Personal Wealth.”
Wealth Management clients introduced net new business of £1.7bn in 2018, a slight drop from £2bn in 2017, driven by strong flows within Benchmark Capital – the advice, technology and fund group whose platform will be powering the financial advice joint venture with Lloyds and in which Schroders has a majority stake.