Schroders profits soared last year to £406.9m from £137.5m in 2009.
Net inflows almost doubled from £15bn to £27.1bn.
Funds under management at the end of 2010 stood at an all-time high of £196.7bn, compared to £148.4bn in 2009.
Much of the returns came from Schroders’ asset management arm, with profits up from £174.7m in 2009 to £381m in 2010. Asset management revenue rose from £679.2m to £996.2m.
Profits halved at the private banking arm from £20.1m to £10.1m while the group segment returned a £15.8m profit compared with a loss of £57.3m in 2009.
Earnings per share rose to 111.8p from 34.3p. Full-year dividends have risen from 31p to 37p per share.
Schroders says it expects the economic recovery to continue but warns that markets will continue to be volatile in the face of rising inflationary pressures, rising interest rates and heightened political risk in developing markets.
Chelsea Financial Services managing director Darius McDermott says: “Schroders has a strong range of products so these results are not a major surprise.”