Schroders profits fall as market awaits advice arm news

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.

Recommended

Can clients get refunds from overpaying pensions?

A look at some of the circumstances in which a refund of excess contributions lump sum can and cannot be claimed Logan and Noah work in partnership as self-employed painters and decorators. In recent years they have taken an equal share from their profits of around £30,000 per annum. With plans to retire in the […]

/c/t/t/USA_America_480.jpg
1

Why the global growth story is not over yet

Dramatic price elasticity is defining a new era of heightened volatility. As spectacular as the fall in markets was late last year, so was the rebound in January. This whipsawing of markets can be very uncomfortable for investors, but for dynamic multi-asset managers it presents allocation opportunities, particularly as gloomy macroeconomic conditions weigh on sentiment. […]

House-and-Calculator-Mortgage-Property-700.jpg
5

Aviva criticised for ‘extraordinary’ commercial Sipp restrictions

Aviva’s decision not to allow commercial property to be included in drawdown or when clients want to access tax free cash through their Sipp has come under fire. Money Marketing has seen correspondence between an adviser writing on behalf of their client and an administrator from Aviva’s commercial property investment team. The correspondence concerns Lowland […]

Jelf flexible benefits

In Focus: How to choose a flexible benefits provider — seven top tips

Jelf Employee Benefits looks at some of the key considerations employers should think about when reviewing and choosing a flexible benefits provider. Choosing the right benefits for your employees is one thing but delivering a successful employee benefits strategy is about understanding the complete picture and delivering it in a personalised way so that it resonates with each and every individual in your business. 

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. So this explains why they are willing to risk their good name by getting into bed with the toxic brand that is Lloyds.

    One might wonder how this will affect IFA loyalty. After all savvy advisers look to differentiate their proposition, so why offer what the local high street bank has on the shelf? Same applied to SWF.

Leave a comment

Close

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

Email: customerservices@moneymarketing.com