Schroders has reported diminished investment activity in the adviser market but has seen profits rise 15 per cent in the first half of 2011, from £188.2m to £215.7m.
Net inflows from intermediaries in the first half of the year were £0.4bn, compared to £5.1bn in the first half of 2010. Intermediary assets under management at the end of June were £75.4bn, compared to £74.1bn at the end of December.
“Retail investors were reluctant to commit funds in the face of macro economic uncertainties and no clear direction in markets,” the group says in a statement.
“Despite this, we achieved £5.1 billion of net inflows and assets under management reached a new high of £204.8 billion. Profit before tax in the first half of the year was also at its highest level, up 15 per cent at £215.7 million.”
Institutional investments demonstrated positive inflows “in all regions with a particularly strong performance in the UK and continental Europe”, while the assets under management in institutional were up 6 per cent to reach £112.7 billion.
Total assets under management are up 4 per cent for the first half of 2011 while new business contributed £5.1 billion.
Looking forward, the group says it is well positioned for a recovery but that intermediary demand and opportunities in private banking are likely to remain muted for as long as macro economic concerns continue to cause uncertainty in the markets.