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Schroders reports low adviser activity as profits rise

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.

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